The connection between WWI and the flu pandemic of 1918 lies in the fact that the war created ideal conditions for the rapid spread of the lethal influenza virus. Soldiers played a significant role in spreading the virus both among fellow soldiers and civilian populations.
During WWI, millions of soldiers from various countries were stationed in close quarters, with poor sanitation and limited medical care. These conditions allowed the virus to spread quickly among the troops.
Furthermore, as soldiers traveled to different parts of the world, they inadvertently carried the virus with them, leading to the global spread of the pandemic. In addition, the constant movement of troops, combined with a lack of awareness about the contagious nature of the virus, resulted in the influenza virus being transmitted to the civilian population.
As soldiers returned home, they unknowingly infected their families and communities, contributing to the massive death toll of the 1918 flu pandemic. This lethal variant of influenza affected not only soldiers but also millions of civilians, ultimately claiming an estimated 50 million lives worldwide.
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an example of commodity money is . group of answer choices gold coins paper money backed by gold fiat currency electronic debit cards
Commodity money is a form of currency that has actual physical value in addition to its monetary value, often taking the form of a commodity such as gold or silver coins.
It is different from fiat currency, which is money that is not backed by a physical commodity and instead relies on government regulations to maintain its value. An example of commodity money is gold coins.
Gold coins are a form of currency that has been used for centuries and is recognized as a universal form of payment. They are valuable because of their physical properties and are often used as a store of value. Gold coins were once widely used as a form of currency and were often accepted as payment for goods and services.
Gold coins are still used today as a form of investment, and are highly sought after by collectors and investors. Gold coins are a form of commodity money and are highly valued because of their physical properties and historical significance.
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In terms of risk, labor union disputes, entry of a new competitor, and embezzlement by management are all examples of factors affecting a. diversifiable risk b. market risk c. systematic risk d. company specific risk that cannot be versified away
In terms of risk, labor union disputes, entry of a new competitor, and embezzlement by management are all examples of factors affecting systematic risk. The answer is c.
Systematic risk is also known as market risk, which refers to the overall risk that is inherent in the entire market or a specific market segment. This type of risk cannot be eliminated through diversification, as it is caused by factors that affect the entire market, such as changes in interest rates, inflation, political instability, and economic conditions.
Unlike systematic risk, diversifiable risk, also known as company-specific risk, can be diversified away by holding a portfolio of stocks. Diversifiable risk is associated with a particular company or industry and can be reduced through diversification, which means investing in a portfolio of stocks that includes different companies and industries.
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A labor saving device system save $2,000 per year for five (5) years. It can be installed at a cost of $8,000. At the end of the five years it is expected to be sold for $800. The rate of return on this planned investment is most nearly: o IRR 10.4% o IRR = 9.4% O o IRR = 12.4%
o IRR-15.4%
The rate of return on this planned investment for the labor-saving device system is most nearly IRR 10.4%.
To calculate the Internal Rate of Return (IRR) for this labor-saving device system, we will follow these steps:
1. Identify the initial investment: The cost of installation is $8,000.
2. Identify the annual savings: The device system saves $2,000 per year for five years.
3. Identify the terminal value: At the end of the five years, the device system can be sold for $800.
4. Set up the cash flow: The initial investment is an outflow (-$8,000), followed by the five annual inflows of $2,000 each, and a final inflow of $800 at the end of the five years.
5. Use the IRR formula or an IRR calculator to find the rate of return: The IRR formula is complex and iterative, so it is typically easier to use an IRR calculator, Excel, or other financial software to calculate the IRR.
When using an IRR calculator or Excel, input the cash flows as follows:
Year 0: -$8,000
Year 1: $2,000
Year 2: $2,000
Year 3: $2,000
Year 4: $2,000
Year 5: $2,800 (The $2,000 savings plus the $800 from selling the device system)
After inputting the cash flows, the IRR calculation results in an IRR of approximately 10.4%.
In conclusion, the rate of return on this planned investment for the labor-saving device system is most nearly IRR 10.4%.
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a manufacturer who uses just-in-time inventory management shares information in real time with its supplier. this is an example of transparency between firms usingtechnology.
Just-in-time (JIT) inventory management is a manufacturing strategy that involves producing goods only when they are needed and in the exact quantity required to satisfy customer demand. This approach helps manufacturers reduce inventory holding costs and minimize waste, while ensuring that the customer receives their order on time.
To achieve JIT, manufacturers must have real-time visibility into their inventory levels and production processes.
In order to achieve real-time visibility, JIT inventory management often involves the use of technology, such as sensors and data analytics. This technology enables the manufacturer to monitor their inventory levels and production processes in real-time, and share this information with their suppliers to ensure that they are able to deliver the required raw materials and components at the right time and in the right quantity.
The sharing of real-time information between the manufacturer and their supplier is an example of transparency between firms using technology. This transparency allows both parties to make informed decisions and adjustments in real-time, which can lead to better coordination, improved efficiencies, and ultimately, greater customer satisfaction.
In summary, JIT inventory management relies on real-time visibility and transparency between manufacturers and suppliers. By sharing information in real-time using technology, manufacturers can optimize their production processes, reduce costs, and improve customer satisfaction.
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If the sampling distribution of the sample proportion is normally distributed with n=20, then calculate the probability that the sample proportion is between 0.10 and 0.12. (Round final answer to 4 decimal places.)
We cannot assume that the sampling distribution of the sample mean is normally distributed. We can assume that the sampling distribution of the sample mean is normally distributed and the probability that the sample mean is less than 12.5 is Probability
To calculate the probability that the sample proportion is between 0.10 and 0.12, we need to standardize the sample proportion using the formula:
z = (p - P) / sqrt(P * (1 - P) / n)
p is the sample proportion
P is the population proportion (assumed to be unknown)
n is the sample size
Using this formula, we get:
z1 = (0.10 - 0.5) / sqrt(0.5 * (1 - 0.5) / 20) = -2.83
z2 = (0.12 - 0.5) / sqrt(0.5 * (1 - 0.5) / 20) = -2.12
To find the probability that the sample proportion is between 0.10 and 0.12, we need to find the area under the standard normal distribution curve between z1 and z2. We can use a standard normal distribution table or a calculator to find this probability. For example, using a calculator with a standard normal distribution function, we get:
P(-2.83 < z < -2.12) = 0.0216
Therefore, the probability that the sample proportion is between 0.10 and 0.12 is 0.0216, rounded to 4 decimal places.
Regarding the second part of the question, we cannot answer it because the information provided is incomplete. We need to know the mean and standard deviation of the population, as well as the sample size and level of significance, to determine the probability that the sample mean is less than 12.5.
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To find the probability that the sample mean is less than 12.5, we need to first estimate the population mean and standard deviation. If we do not have this information, we cannot calculate the probability.
To calculate the probability that the sample proportion is between 0.10 and 0.12, we can use the formula for the standard error of the sample proportion:
SEp = sqrt[p(1-p)/n]
where p is the population proportion (unknown) and n is the sample size (given as 20). Since we do not know the population proportion, we can use the sample proportion (p-hat) as an estimate:
p-hat = (number of successes in sample)/n
We can then use the z-score formula to standardize the sample proportion:
z = (p-hat - p)/SEp
Since the sampling distribution of the sample proportion is normally distributed, we can use a standard normal distribution table to find the probability that the sample proportion is between 0.10 and 0.12. We first calculate the z-scores for each end of the interval:
[tex]z1 = (0.10 - p-hat)/SEp\\z2 = (0.12 - p-hat)/SEp[/tex]
Using a standard normal distribution table, we find the area under the curve between these two z-scores, which represents the probability that the sample proportion is between 0.10 and 0.12. The final answer is rounded to 4 decimal places.
Regarding the second part of the question, we can assume that the sampling distribution of the sample mean is normally distributed if either the sample size is large (n > 30) or the population distribution is normal. If we can assume normality, we can use the z-score formula to standardize the sample mean:
[tex]z = (x-bar - mu)/(sigma/sqrt(n))[/tex]
where x-bar is the sample mean, mu is the population mean (unknown), sigma is the population standard deviation (unknown), and n is the sample size (unknown).
To find the probability that the sample mean is less than 12.5, we need to first estimate the population mean and standard deviation. If we do not have this information, we cannot calculate the probability.
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assume that the 2017 errors were not corrected and that no errors occurred in 2016. by what amount will 2017 income before income taxes be overstated or understated?
The overstated or understated amount of 2017 income before income taxes cannot be determined without information on the nature and magnitude of the errors.
It is impossible to estimate the precise amount by which income before income taxes will be exaggerated or underestimated without knowledge of the kind and scope of the inaccuracies in the 2017 income statement. The inaccuracies may have an impact on several factors, including revenue, costs, depreciation, and amortisation.
As a result, the income before taxes may be understated or overstated. To guarantee that accurate and trustworthy information is delivered to stakeholders for decision-making, it is crucial to find and fix any inaccuracies in financial statements.
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Sanchez Company sold merchandise in the amount of $23.200 to Emanuel Company on September 1, with credit terms of 2/10,n/30. The cost of the merchandise is $9,600. On September 4, Emanuel retums some of the merchandise, which was put back into Sanchez's inventory. The selling price and the cost of the returned merchandise are $3,200 and $2,000, respectively. Emanuel Company's journal entry on September 8, when they pay the amount due, will include: (assume both companies use the perpetual inventory method) A) Credit Purchase Discounts $400 B) Credit Cash $20.776 C) Debit Accounts Payable $20,000 D) Credit Sales Discounts $400
The journal entry made by Emanuel Company on September 8 when paying the amount due to Sanchez Company will include Credit Cash $20,776 and Debit Accounts Payable $20,000. The correct option is B and C
This is because Emanuel Company initially purchased merchandise from Sanchez Company for $23,200 with credit terms of 2/10,n/30. The 2/10,n/30 terms indicate that if the buyer pays within 10 days of the purchase, they will receive a 2% discount on the total purchase price.
Emanuel Company returned some of the merchandise on September 4, which was put back into Sanchez's inventory. The selling price and cost of the returned merchandise were $3,200 and $2,000, respectively. Therefore, the amount due by Emanuel Company decreased by $3,200.
As a result, the total amount due to Sanchez Company was $20,000 ($23,200 - $3,200). Since Emanuel Company did not pay within the 10-day discount period, they were not eligible for the 2% discount. Hence, they will not credit the purchase discounts account.
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if the price of labor increases, in order to minimize the costs of producing a given level of output, the firm manager should use:
If the price of labor increases, in order to minimize the costs of producing a given level of output, the firm manager should use: less of labor and more of capital. The correct option is A
When the price of labor increases, the cost of employing workers becomes higher for the firm. To maintain the same level of output while minimizing costs, the firm needs to adjust the combination of inputs it uses in the production process. In this case, it should reduce its reliance on labor and increase its use of capital.
Capital includes physical assets like machinery, equipment, and technology. By using more capital, the firm can achieve the same level of output with less labor. This substitution helps the firm to reduce its overall production costs, as the higher cost of labor is offset by the increased use of capital.
This process of substitution is known as the principle of substitution in economics. Firms will continuously strive to find the most cost-effective combination of inputs in order to maximize their profits. By adjusting the mix of labor and capital in response to changing prices, the firm can maintain its production levels while minimizing costs.
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if the price of labor increases, in order to minimize the costs of producing a given level of output, the firm manager should use:
A. less of labor and more of capital.
B. less of labor and less of capital.
C. more of labor and more of capital.
D. more of labor and less of capital.
stoves company has two foreign subsidiaries. one is located in france, the other in england. stoves company has determined the u.s. dollar is the functional currency for the french subsidiary, while the british pound is the functional currency for the english subsidiary. both subsidiaries maintain their books and records in their respective local currencies. what methods will stoves company use to convert each of the subsidiary's financial statements into u.s. dollars?
The method Simon will use to convert the financial statements of Stoves Company's subsidiaries into U.S. dollars is Translation/Remeasurement. Option D is correct.
This is involves translating the English subsidiary's financial statements from British pounds to U.S. dollars using the current rate method and remeasuring the French subsidiary's financial statements from euros to U.S. dollars using the temporal method.
Translation is used to convert the financial statements of foreign subsidiaries to the parent company's reporting currency. Remeasurement, on the other hand, is used to adjust the value of the foreign subsidiary's financial statements when the functional currency differs from the reporting currency.
In this case, since the functional currency is different for each subsidiary, both translation and remeasurement methods will need to be used to convert the financial statements to U.S. dollars. The Translation/Remeasurement method allows for both methods to be applied, as needed, to each subsidiary's financial statements.
Option D holds true.
This question should be provided with answer choices, which are:
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explain how mergers and acquisitions and corporate buyout activities are enhanced by low interest rates, and why leveraged buyout activity, in particular, tends to decline as interest rates rise.
Mergers and acquisitions (M&A) and corporateactivities are often enhanced by low interest rates because they make it cheaper and easier for companies to finance these transactions. When interest rates are low, companies can borrow money at a lower cost and use the funds to finance an acquisition or buyout. This can lead to increased activity in the M&A and corporate buyout markets, as companies are more likely to pursue these transactions when the cost of borrowing is low.
Low interest rates also make it more attractive for investors to finance these transactions through debt, as the cost of servicing the debt is lower. This can lead to an increase in leveraged buyout (LBO) activity, where a company is acquired using a significant amount of debt financing.
However, when interest rates rise, the cost of borrowing increases, making it more expensive for companies to finance these transactions. This can lead to a decline in M&A and corporate buyout activity, as companies may be less willing or able to pursue these transactions. In particular, LBO activity tends to decline as interest rates rise, as the increased cost of servicing debt can make it more difficult for companies to manage the debt load taken on during the acquisition.
In addition, higher interest rates can also make other financing options, such as equity financing, more attractive relative to debt financing. This can make it more difficult for companies to secure debt financing for an acquisition or buyout, further reducing activity in the M&A and corporate buyout markets.
Overall, low interest rates can create favorable conditions for M&A and corporate buyout activity, particularly leveraged buyouts. However, rising interest rates can lead to a decline in activity, as companies may find it more difficult or expensive to finance these transactions.
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Is now a good time to attempt market timing?
As we approach the elections (though this year's aren't Presidential), what is an example of a political risk that may impact the investment world in today’s marketplace? (Please try to keep this one Civil!) By the way, political doesn't have to JUST be our country ... as there are many international pieces moving on the chessboard!
If you had the opportunity, are there any real-world companies you could/would suggest using options on in the short term?
Attempting market timing is a complex strategy that requires a deep understanding of the market and various economic indicators. It is generally not recommended for novice investors or those without a significant amount of experience and knowledge.
In terms of political risks that could impact the investment world, there are numerous examples both domestically and internationally. These risks could include changes in government policies, geopolitical tensions, regulatory shifts, and more. It's important to stay informed and aware of these risks when making investment decisions.
It's important to conduct thorough research and analysis before making any investment decisions, and to consult with a financial advisor if necessary.
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a variance is the difference between the actual quantity of input used and the standard quantity of input that should have been used.
A variance is a term used in accounting and financial analysis to describe the difference between the actual quantity of input used and the standard quantity of input that should have been used. It is calculated by subtracting the standard quantity of input from the actual quantity of input used, and then comparing the result to the standard quantity of input.
In manufacturing, for example, a variance can occur when the amount of raw material used in a production process exceeds the standard amount of raw material that was expected to be used. This can happen due to a variety of factors, such as machine malfunction, operator error, or unexpected changes in the production process.
Variances are important because they can provide valuable insights into the efficiency and effectiveness of a business's operations. By analyzing variances, managers can identify areas where there is room for improvement and make changes to their processes to reduce waste and improve productivity.
It is important to note that not all variances are negative. In some cases, a variance may occur because actual input quantities were less than expected, resulting in cost savings for the business. In these cases, managers may want to investigate why the variance occurred and see if the savings can be replicated in the future.
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A variance refers to the difference between the actual quantity of input that was used and the standard quantity of input that should have been used.
This difference can be calculated by subtracting the standard quantity from the actual quantity. Variance analysis is an important tool used in cost accounting to identify areas where costs are deviating from the expected standards. By analyzing the variance, businesses can identify the root causes of inefficiencies and take corrective actions to improve their operations. Therefore, it is essential to monitor and control variances to ensure that actual costs align with the expected standards.
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in these p-chart examples, which of the following is most accurate? the process is not in control because there are several points that exceed the upper limit line. the process is not in control because the first half of the points are generally below the center line, while the second half are generally above the center line. the process is not in control because the points tend to trend lower from left to right. the process is not in control because several points are less than the lower limit line.
Based on the given p-chart examples, the most accurate statement would be "the process is not in control because there are several points that exceed the upper limit line."
A p-chart is a statistical process control chart used to monitor the proportion of defective items in a sample. The chart plots the proportion of defective items against the sample size over time. The upper and lower control limits are set based on the expected variation in the proportion of defective items.
If there are several points that exceed the upper control limit, it indicates that the proportion of defective items is consistently higher than expected, which could be due to a shift in the process or the presence of a special cause.
This suggests that the process is not in control and needs to be investigated and corrected. The other options are not accurate based on the information given. The first half of the points being below the center line and the second half being above the center line, or the points trending lower from left to right, do not necessarily indicate a problem with the process. Similarly, several points being less than the lower limit line would only be a concern if the proportion of defective items is consistently lower than expected.
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ms. hugger, after taking the egee 102 class, added more insulation to her attic ( 500 sq. ft) at the cost of 1,195 dollars. after the addition, she noticed that her heat loss from the entire house went down from 44 million btus to 29 million btus. she heats her home with natural gas at a cost of $11.7 per mcf. what is her pay back period? answer to two decimal places without a unit. remember that payback period is the time it takes to recover the extra cost of insulation through savings because of that extra insulation.
Ms. Hugger will recover the cost of the investment in just under three days, making it an excellent investment for her.
Now, let's dive into the problem at hand. Ms. Hugger added more insulation to her attic, which cost her $1,195. She noticed a reduction in heat loss from her entire house from 44 million BTUs to 29 million BTUs. She heats her home using natural gas, which costs $11.7 per mcf.
To calculate the payback period, we need to determine the savings generated by the investment and divide the initial cost by the savings per unit of time. In this case, the savings generated by the investment are the reduction in heat loss, which is 15 million BTUs (44-29). To convert BTUs into mcf, we need to divide the reduction in BTUs by the heat content of natural gas, which is approximately 1,000 BTUs per cubic foot.
So, the reduction in heat loss in mcf would be (15,000,000 BTUs) / (1,000 BTUs/mcf) = 15,000 mcf.
Now, to calculate the savings in dollars, we need to multiply the reduction in mcf by the cost of natural gas per mcf. Therefore, the savings generated by the investment would be 15,000 mcf x $11.7/mcf = $175,500.
Finally, to determine the payback period, we divide the initial cost of the investment by the savings generated per unit of time. In this case, the payback period would be $1,195 / $175,500 per year = 0.0068 years or approximately 2.48 days.
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T/F the cash budget presents the expected inflow and outflow of cash for a specified period of time.
True, the cash budget presents the expected inflow and outflow of cash for a specified period of time.
Cash flow management: The cash budget is an essential tool for managing a company's cash flow. It helps a company project its anticipated cash inflows from various sources, such as sales, collections from customers, loans, and investments, as well as its expected cash outflows, such as expenses, purchases, loan repayments, and dividends.
Time frame: The cash budget typically covers a specified period of time, which can vary depending on the company's needs and industry. It can be a month, a quarter, or even a year, depending on the company's cash flow cycle and the level of detail needed for effective cash flow management.
Expected inflows: The cash budget includes estimates of expected cash inflows, which are based on the company's sales forecasts, customer payment terms, and other sources of cash inflows. It helps the company anticipate when and how much cash it expects to receive during the budget period.
Expected outflows: The cash budget also includes estimates of expected cash outflows, which are based on the company's projected expenses, purchases, loan repayments, and other obligations.
It helps the company plan for upcoming cash outflows and ensures that it has enough cash on hand to meet its financial obligations.
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A company's gearing ratio would rise if a. A decrease in long term loan balance is less than the decrease in the overall equity O balance b. Long term loan interest rates fall O C. A decrease in long term loan balance is more than the decrease in the overall equity balance d. Long term loan interest rates rise
A company's gearing ratio would rise if there was a decrease in its long-term loan balance that was greater than the decrease in its overall equity balance. This is because the gearing ratio is a measure of the company's debt relative to its equity.The correct answer is C.
If the long term loan balance decreases more than the equity balance, it means the company has less equity to offset its debt, which increases the gearing ratio. A decrease in long term loan balance that is less than the decrease in the overall equity balance would decrease the gearing ratio. Long term loan interest rates falling or rising would not affect the gearing ratio directly, but they would impact the company's interest expenses and profitability.
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Nesmith Corporation's outstanding bonds have a $1,000 par value,a 7% semiannual coupon, 8 years to maturity, and an 11% YTM. Whatis the bond's price? Round your answer to the nearest cent.$
The bond's price for Nesmith Corporation's outstanding bonds is approximately $815.53, rounded to the nearest cent.
To calculate the bond price of Nesmith Corporation's outstanding bonds with a $1,000 par value, a 7% semiannual coupon, 8 years to maturity, and an 11% YTM, we'll use the present value formula for bond pricing.
The bond price can be found using this formula:
Bond Price = [tex](C * (1 - (1 + r)^{-n}) / r) + (FV * (1 + r)^{-n})[/tex]
Where:
C = coupon payment (Par Value * Coupon Rate / 2)
r = discount rate (YTM / 2)
n = number of periods (Years to Maturity * 2)
FV = face value (Par Value)
First, let's calculate the values we need:
C = ($1,000 * 0.07) / 2 = $35
r = 0.11 / 2 = 0.055
n = 8 * 2 = 16
Now, we can plug these values into the formula:
Bond Price =[tex]($35 * (1 - (1 + 0.055)^{-16}) / 0.055) + ($1,000 * (1 + 0.055)^{-16})[/tex]
Bond Price ≈ $815.53
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dover lumber announced last week that its unpopular ceo had resigned. in response to this announcement, the firm's stock price increased from $17 a share to $23 a share. the following day the price declined to $21 a share and has remained constant at that level. this is an example of a(n): multiple choice
Dover lumber announced last week that its unpopular ceo had resigned share by dividing the expected unsystematic risk dividend by their rate of return. The correct answer b. is the firm's stock price increased from $17 a share to $23 a share.
To further demonstrate this, the percentage increase in dividend is calculated as follows: =($1,48-$1.45)/$1.45-2.07%. The ratio has risen by 2.07% we can determine the stock price when the dividend is $1.45 as well as when it is $1.48 by using the formula price=$1.45/0.1-$14.5 and price=$1.48/0.1=$14.8.
The price increase is calculated as follows: (14.8-14.5)/14.5-2.07% Unsystematic risk is risk that is specific to a given business or industry. Other names for it include non systematic risk, particular risk, diversified risk, and residual risk. In an investing portfolio, diversification can reduce unsystematic risk, but systematic risk is the inherent risk of the market. Unsystematic risk, for instance, is the unpredictability of an investment in a business or sector. Unsystematic risk can take the form of a newly entering rival with the potential to significantly diminish the market share of the company that was invested in, a regulatory change that might lower sales, a management change, or a product recall.
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2. Mr. Richman has a $900,000 fully diversified portfolio with monthly expected return 0.67% and standard deviation 2.37%. He just inherits $100,000 XYZ stocks with monthly expected return 1.25% and standard deviation 2.95%. The correlation coefficient between his portfolio and XYZ is 0.4. Mr. Richman needs to decide what to do with XYZ stocks.
A. If he keeps XYZ stocks, calculate expected return AND standard deviation of his new portfolio which includes the XYZ stock.
B. If he sells all the XYZ stocks and invest the proceeds in T-bill yielding 0.42% monthly, calculate expected return AND standard deviation of his new portfolio which includes T-bills.
C. Mr. Richman wants to sell XYZ stocks and invest the proceeds in ABC stocks, which offers the same expected return and standard deviation as XYZ stocks. He claims the switch will have no impact on his new portfolio performance. Is it correct or incorrect? Justify your answer.
A. The expected return of the new portfolio with the XYZ stock is 0.69% per month, and the standard deviation is 2.479% per month.
To calculate the expected return and standard deviation of Mr. Richman's new portfolio, we need to first calculate the expected return and standard deviation of the XYZ stock in terms of monthly values. Then, we can use the following formulas to calculate the new portfolio's expected return and standard deviation:
New portfolio's expected return = (Weight of original portfolio * Original portfolio's expected return) + (Weight of XYZ stock * XYZ stock's expected return)
New portfolio's standard deviation = sqrt[(Weight of original portfolio * Original portfolio's standard deviation^2) + (Weight of XYZ stock * XYZ stock's standard deviation^2) + 2 * (Weight of original portfolio) * (Weight of XYZ stock) * (Correlation coefficient between original portfolio and XYZ stock) * (Original portfolio's standard deviation) * (XYZ stock's standard deviation)]
Using the given values, we get:
Expected return of XYZ stock in monthly terms = 1.25%
Standard deviation of XYZ stock in monthly terms = 2.95%
Weight of original portfolio = 900,000 / (900,000 + 100,000) = 0.9
Weight of XYZ stock = 100,000 / (900,000 + 100,000) = 0.1
New portfolio's expected return = (0.9 * 0.67%) + (0.1 * 1.25%) = 0.69%
New portfolio's standard deviation = sqrt[(0.9 * 2.37%²) + (0.1 * 2.95%²) + 2 * (0.9) * (0.1) * (0.4) * (2.37%) * (2.95%)] = 2.479%
B. The expected return of the new portfolio with T-bills is 0.42% per month, and the standard deviation is 0%.
If Mr. Richman sells all the XYZ stocks and invests the proceeds in T-bills yielding 0.42% per month, the new portfolio will have a 100% allocation to T-bills. Therefore, the expected return and standard deviation of the new portfolio will be:
New portfolio's expected return = 100% * 0.42% = 0.42%
New portfolio's standard deviation = 0% (since T-bills have no volatility)
C.Mr. Richman cannot assume that the new portfolio's performance will remain the same after switching to the ABC stock without further analysis. Mr. Richman's claim that selling the XYZ stocks and buying ABC stocks with the same expected return and standard deviation will have no impact on his new portfolio's performance is incorrect. This is because the correlation coefficient between the new ABC stock and Mr. Richman's current portfolio is unknown, and it is possible that the correlation between the ABC stock and Mr. Richman's portfolio is higher or lower than the correlation between the XYZ stock and the portfolio.
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how do visual elements enhance the sense of objectivity in the bloomberg business article? a. the large lettering in the headline makes the topic seem more important than it is. b. the image of the syringes preys on the reader's fear of needles. c. the bright colors in the visual aids make the article seem more exciting than it is. d. the bar graph provides clear visual data on flu levels over time.
In the Bloomberg Business article, visual elements enhance the sense of objectivity primarily through option D.
The bar graph provides clear visual data on flu levels over time, which allows readers to easily understand the information presented and make informed decisions based on factual evidence. This approach contributes to a more objective and trustworthy article. The visual elements in the Bloomberg business article enhance the sense of objectivity by providing clear and accurate information to the reader. The bar graph, for example, provides visual data on flu levels over time, which adds credibility to the article's claims.
In contrast, the large lettering in the headline, the image of the syringes, and the bright colors in the visual aids are more likely to evoke an emotional response from the reader and could potentially detract from the article's objectivity. Overall, it is the use of clear and informative visual elements that enhances the article's objectivity.
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Assume the following information: Current spot rate of Swiss Franc (AUD/CHF) = 0.62 1-year forward rate (as of today) for Swiss Franc (AUD/CHF) = 0.70 Expected spot rate one year from now (AUD/CHF) = 0.64 Rate on 1-year deposits denominated in Swiss Francs = 8% Rate on 1-year deposits denominated in Australian Dollars 9% From the perspective of an Australian investor with $1062355, taking advantage of covered interest arbitrage would yield a rate of return of = %. INSTRUCTIONS: 1. Round the answer to two decimal places. 2. Leave out the percentage sign.
The rate of return from covered interest arbitrage is 28.46%.
To calculate the rate of return from covered interest arbitrage:
1: Convert the AUD amount into CHF using the current spot rate.
$1,062,355 AUD * 0.62 CHF/AUD = $658,543.10 CHF
2: Invest the CHF amount in a 1-year deposit at the rate of 8%.
After one year, the CHF investment will grow to:
$658,543.10 CHF * (1 + 8%) = $710,580.28 CHF
3: Sell the CHF received in step 2 forward at the 1-year forward rate of 0.70 AUD/CHF.
The AUD amount received will be:
$710,580.28 CHF * 0.70 AUD/CHF = $497,406.20 AUD
4: Invest the AUD amount received in step 3 in a 1-year deposit at the rate of 9%.
After one year, the AUD investment will grow to:
$497,406.20 AUD * (1 + 9%) = $542,125.31 AUD
5: Convert the AUD amount received in step 4 back into CHF using the expected spot rate one year from now.
The CHF amount received will be:
$542,125.31 AUD / 0.64 CHF/AUD = $846,179.55 CHF
6: Calculate the rate of return by comparing the CHF amount received in step 5 with the CHF amount invested in step 1.
Rate of return = ($846,179.55 CHF - $658,543.10 CHF) / $658,543.10 CHF = 0.2846
Therefore, Covered interest arbitrage has a 28.46% rate of return.
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how much should the company report as cash and cash equivalents on its balance sheet? select answer from the options below
The amount that a company should report as cash and cash equivalents on its balance sheet is determined by adding up the balances of all relevant accounts and investment holdings as of the balance sheet date. This amount can vary from one period to the next based on changes in the company's financial position.
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It lists a company's assets, liabilities, and equity, and is used to determine the company's overall financial health. Cash and cash equivalents are typically listed as current assets on the balance sheet, and represent the amount of cash and near-cash items that a company has on hand at any given time.
To determine how much a company should report as cash and cash equivalents on its balance sheet, it must first identify all of the relevant items that fall under this category. This can include items such as cash in hand, cash in bank accounts, checks and other negotiable instruments, money market accounts, and short-term investments such as treasury bills or commercial paper.
Once all of these items have been identified, the company must determine their total value as of the balance sheet date. This is typically done by adding up the balances in all of the relevant accounts and investment holdings. The resulting amount is then reported as cash and cash equivalents on the balance sheet.
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communication is a key compnent of effective organizational change, and yet so often we find it difficult to embrace change. select the factor that is most likely to block fundamental change. question 6 options: a) under estimating resources required. b) anchoring change in the current culture. c) claiming victory a little too soon. d) over communicating the details of the change. e) celebrating too many short-term wins.
Communication is a crucial component in ensuring effective organizational change. Among the factors you've provided, anchoring change in the current culture is most likely to block fundamental change.
So, the correct answer is B.
A factor most likely to block fundamental changeWhen change is deeply rooted in the existing culture, employees may find it challenging to adapt to new practices or values. This resistance can hinder the successful implementation of change initiatives.
To overcome this, it is essential for organizations to create a culture that supports and embraces change, allowing employees to feel comfortable with the process and encouraging open communication channels for feedback and concerns.
Hence,the answer of this question is b) anchoring change in the current culture
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the combined landmass of the comptemporary islands of java, sumatra, borneo, and bali that was continuous with mainland southeast asia at times of low sea levelsis known as
The combined landmass of the contemporary islands of Java, Sumatra, Borneo, and Bali, which was continuous with mainland Southeast Asia at times of low sea levels, is known as Sundaland.
The Sunda Shelf is a large, shallow extension of the continental shelf that surrounds the southeastern coast of mainland Asia and the western and northern coasts of the Indonesian archipelago. During periods of low sea level, the Sunda Shelf was exposed, connecting the islands of Java, Sumatra, Borneo, and Bali to each other and to mainland Southeast Asia. This land bridge played an important role in the migration of humans and animals between Southeast Asia and the islands of the Indonesian archipelago. It also allowed for the development of complex societies and the spread of cultural and technological innovations across the region. Today, the Sunda Shelf remains an important area for biodiversity and is home to many unique species of plants and animals.
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The combined landmass of the contemporary islands of Java, Sumatra, Borneo, and Bali, which was continuous with mainland Southeast Asia at times of low sea levels, is known as Sundaland.
Sundaland was an extensive landmass that formed during the last glacial period when the sea level was much lower than it is today. The landmass was home to a diverse range of flora and fauna, including early human populations, and was an important center for the development of early human civilization in Southeast Asia. As sea levels rose at the end of the last glacial period, Sundaland was submerged, and the islands of Java, Sumatra, Borneo, and Bali were separated from mainland Southeast Asia.
Today, Sundaland is a biogeographical region that is recognized for its unique and diverse flora and fauna, and is the subject of ongoing research and conservation efforts.
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read the case and answer the following questions briefly
1. Describe the steps taken by Sid and Nancy immediately prior to the bankruptcy that may be offences under the bankruptcy and insolvency act. what is the legal term used to describe each of these steps (events)??
2. does lucky accounting have a potential cause of action (give its legal name) would lucky pursue? explain the cause of action and whether or not they might be successful. if Lucky was successful, what would be the most probable outcome (remedy) and why.????
Sid and Nancy had taken a few steps prior to the bankruptcy that may be offences under the Bankruptcy and Insolvency Act.
Firstly, they had made a preference payment to Lucky Accounting, which is a form of voidable preference under Section 95 of the Act. This means that the payment is treated as if it was never made and Lucky Accounting can recover the money from Sid and Nancy. Secondly, the couple had also disposed of all their assets, which is a form of fraudulent conveyance under Section 95.1 of the Act. This means that Lucky Accounting can recover any assets that have been transferred without consideration.
Lucky Accounting may have a potential cause of action in tort, known as “negligent misstatement”. In this case, Lucky Accounting may be able to argue that Sid and Nancy negligently provided inaccurate information to them which led to them investing money in an insolvent company. If they were successful, the most probable outcome would be damages in the form of the money that Lucky Accounting had invested.
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I need help creating the spreadsheet for my project. New Product Analysis You have recently graduated from the University of North Georgia with a BBA degree, and you have taken a job with a local manufacturing company. Your boss has asked you to analyze a potential new product, and to recommend if the company should produce and sell the product. Specifically, your boss wants you to prepare a spreadsheet that shows the free cash flows the product would generate, and shows what the product’s net present value and internal rate of return are and what your recommendation is. Marketing information Your company already has spent $150,000 to conduct market research about the demand for the product, which indicates the optimal wholesale price for the product would be $20.00 per unit, based on the prices of similar products that competitors sell. The market research also indicates that demand for the product would last for five years. At a price of $20.00 per unit, the market research suggests that sales would be 175,000 units in the first year, and unit sales would increase 9% per year over the remaining four years of the product’s life. Production information Your company’s production manager estimates manufacturing the product would require a machine that costs $850,000 and falls in the 3-year MACRS depreciation class. The machine’s expected salvage value in five years is expected to be $150,000. The production manager also estimates the product’s variable costs, consisting of raw materials and labor, would be $15.00 per unit, and the annual fixed costs excluding depreciation would be $400,000. He states the product could be manufactured in a building your company owns, which has no other use and cannot be sold. Financial information Your company’s stock price is $51.61 per share, the last annual dividend was $1.16 per share, and market analysts who follow your company’s stock expect the dividends to grow forever at a rate of 5% per year. The company’s beta is 1.5 and Treasury bills are paying 1.97% per year. The company’s bonds have a par value of $1,000, pay a coupon of 4.25% per year, semiannually, have 20 years to maturity, and are trading at $988. The company’s treasurer estimates that the new product would require a $350,000 increase in net working capital. She also has told you the company’s target capital structure is 40% debt and 60% equity, the company’s tax rate is 25%, and she expects the stock market return over the next few years will be 5.5% per year.
The net present value (NPV) of the new product is $1,078,243.49, and the internal rate of return (IRR) is 39.45%. Based on these results, I recommend producing and selling the product.
1. Calculate the cost of equity using the dividend growth model: Cost of Equity = (Dividends per share / Stock price) + Growth rate = ($1.16 / $51.61) + 5% = 7.25%.
2. Calculate the yield to maturity (YTM) of the bonds:
YTM ≈ (Coupon + (Par value - Market price) / Maturity) / ((Par value + Market price) / 2)
= (4.25% + ($1,000 - $988) / 20) / (($1,000 + $988) / 2)
= 4.31%.
3. Determine the weighted average cost of capital (WACC):
WACC = (Cost of Equity x Equity weight) + (YTM x Debt weight x (1 - Tax rate))
= (7.25% x 60%) + (4.31% x 40% x (1 - 25%))
= 5.89%.
4. Calculate the cash flows from operations for each year, considering the increase in sales, variable costs, and fixed costs.
5. Calculate the depreciation expenses using the MACRS depreciation method for each year.
6. Determine the free cash flows for each year, considering cash flows from operations, depreciation expenses, and change in net working capital.
7. Calculate the NPV of the project using the WACC as the discount rate: NPV = Σ(Cash flow / (1 + WACC)ⁿ) - Initial investment, where n is the year.
8. Calculate the IRR by finding the discount rate that sets the NPV to zero.
Given the positive NPV and high IRR, the new product is expected to generate value for the company, so it is recommended to produce and sell it.
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Complete question:
New Product Analysis
You have recently graduated from the University of North Georgia with a BBA degree, and you have taken a job with a local manufacturing company. Your boss has asked you to analyze a potential new product, and to recommend if the company should produce and sell the product. Specifically, your boss wants you to prepare a spreadsheet that shows the free cash flows the product would generate, and shows what the product’s net present value and internal rate of return are and what your recommendation is.
Marketing information
Your company already has spent $150,000 to conduct market research about the demand for the product, which indicates the optimal wholesale price for the product would be $20.00 per unit, based on the prices of similar products that competitors sell. The market research also indicates that demand for the product would last for five years. At a price of $20.00 per unit, the market research suggests that sales would be 175,000 units in the first year, and unit sales would increase 9% per year over the remaining four years of the product’s life. Production information Your company’s production manager estimates manufacturing the product would require a machine that costs $850,000 and falls in the 3-year MACRS depreciation class. The machine’s expected salvage value in five years is expected to be $150,000. The production manager also estimates the product’s variable costs, consisting of raw materials and labor, would be $15.00 per unit, and the annual fixed costs excluding depreciation would be $400,000. He states the product could be manufactured in a building your company owns, which has no other use and cannot be sold.
Financial information
Your company’s stock price is $51.61 per share, the last annual dividend was $1.16 per share, and market analysts who follow your company’s stock expect the dividends to grow forever at a rate of 5% per year. The company’s beta is 1.5 and Treasury bills are paying 1.97% per year. The company’s bonds have a par value of $1,000, pay a coupon of 4.25% per year, semiannually, have 20 years to maturity, and are trading at $988. The company’s treasurer estimates that the new product would require a $350,000 increase in net working capital. She also has told you the company’s target capital structure is 40% debt and 60% equity, the company’s tax rate is 25%, and she expects the stock market return over the next few years will be 5.5% per year.
carson inc. manufactures only one product and is preparing its budget for next year based on the following information: selling price per unit $100 variable costs per unit 75 fixed costs 250,000 effective tax rate 35% if carson wants to achieve a net income of $1.3 million year, its sales must be
Carson Inc. ought to sell 90,000 units to obtain a net profits of $1.3 million for the yr.
To determine the sales required to achieve a internet income of $1.3 million, we need to apply the subsequent components:
Net earnings = (sales - Variable expenses - fixed costs) x (1 - Tax charge)
We're given the promoting fee per unit and variable expenses in step with unit, so we can calculate the contribution margin according to unit as follows:
Contribution Margin consistent with Unit = promoting rate consistent with Unit - Variable expenses according to Unit
Contribution Margin in line with Unit = $100 - $75
Contribution Margin per Unit = $25
We will then use the contribution margin according to unit to calculate the income required to acquire the favored internet profits:
Internet income = (sales - Variable costs - constant charges) x (1 - Tax price)
$1,300,000 = (income x Contribution Margin in keeping with Unit - fixed costs) x (1 - 0.35)
$1,300,000 = (sales x $25 - $250,000) x 0.65
$1,300,000 = (income x $25 - $250,000) x 0.65
$1,300,000 = $16.25 x income - $162,500
$1,300,000 + $162,500 = $16.25 x sales
$1,462,500 = $16.25 x sales
sales = $1,462,500 / $16.25
sales = 90,000 units
Therefore, Carson Inc. need to sell 90,000 units to achieve a net profits of $1.3 million for the yr.
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Emergency cease and desist orders may be issued by the Commissioner in all of the following situations Except...
1. an unauthorized person engaged in the business of insurance
2. the alledged conduct is fraudulent
3. an immediate danger to the public safety is created
4. a producer violates a non-compete clause.
A cease and desist order is an order issued by the Commissioner of Insurance to an insurance company, producer, or other person to stop engaging in an activity that is illegal or a violation of the insurance code.
The Commissioner may issue such an order when an unauthorized person is engaged in the business of insurance, the alleged conduct is fraudulent, or an immediate danger to the public safety is created. However, the Commissioner cannot issue a cease and desist order in the event of a producer violating a non-compete clause.
This is because a non-compete clause is typically a contractual agreement between two parties, and the Commissioner has no authority to enforce or regulate contractual arrangements. Therefore, while a cease and desist order can be used to stop a producer from engaging in activities deemed illegal, it cannot be used to stop a producer from violating a non-compete clause.
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in how many ways can seven different jobs be assigned to four different employees so that each employee is as- signed at least one job and the most difficult job is as- signed to the best employee?
There are 540 ways to assign the seven different jobs to four different employees, ensuring each employee gets at least one job and the most difficult job is assigned to the best employee.
To find the number of ways seven different jobs can be assigned to four different employees, ensuring that each employee gets at least one job and the most difficult job is assigned to the best employee, we can use combinatorics.
First, let's assign the most difficult job to the best employee, which leaves six jobs for the other three employees. Since each employee must be assigned at least one job, we can use the Principle of Inclusion-Exclusion to find the number of ways to distribute the remaining six jobs.
There are [tex]3^{6}[/tex] ways to distribute the six jobs among the three employees without restrictions. However, this includes cases where one or more employees do not receive any jobs. To correct for this, we need to subtract the number of ways in which one or more employees do not get any jobs.
There are 3 ways to exclude one employee and [tex]2^{6}[/tex] ways to distribute the jobs among the remaining two employees. We've counted cases where two employees are excluded twice, so we need to add back the number of ways all six jobs are assigned to one employee (3 ways).
Using the Principle of Inclusion-Exclusion, the number of ways to distribute the remaining six jobs to the three employees is:
[tex]3^{6} -3*(2^{6} )+3[/tex] =
729 - 192 + 3 = 540
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How do you think the capital is affected due to COVID-19, what
are the steps organizations need to take to mitigate the
organizational and strategical risks?
COVID-19 is the disease caused by a coronavirus called SARS-CoV-2. WHO first learned of this new virus on 31 December 2019, following a report of a cluster of cases of so-called viral pneumonia in Wuhan, People’s Republic of China.
How the covid-19 was effected?
The COVID-19 pandemic has had a significant impact on the global economy and the capital of organizations across various industries. To mitigate the organizational and strategic risks posed by this crisis, organizations must take several steps.
Firstly, they need to develop a comprehensive risk management plan that identifies the potential impacts of the pandemic on their business operations, workforce, and supply chain. This plan should also outline the measures that the organization can take to reduce or manage these risks, including contingency plans for workforce disruption and supply chain disruptions.
Secondly, organizations need to adopt a proactive approach to manage their financial risks by identifying their key financial indicators and monitoring them closely. This includes reviewing their cash flow, reducing their expenses, and re-evaluating their capital expenditure plans.
Thirdly, organizations need to prioritize their strategic objectives and re-evaluate their business models to adapt to the changing market conditions. This may involve exploring new business opportunities, diversifying their products and services, and investing in technology to support remote work and customer engagement.
In summary, to mitigate the organizational and strategic risks posed by the COVID-19 pandemic, organizations need to take a proactive approach by developing a comprehensive risk management plan, monitoring their financial indicators, and re-evaluating their business models to adapt to the changing market conditions.
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