The state of New York bond would need to offer an interest rate of 6.4 percent to make Fergie indifferent between investing in the two bonds.
To calculate the equivalent interest rate, we need to consider the after-tax return. With a 30 percent marginal tax rate, Fergie's after-tax return on the Surething Inc. bond would be 8 percent * (1 - 0.3) = 5.6 percent. For Fergie to be indifferent between the two bonds, the state of New York bond needs to offer the same after-tax return. Therefore, we set 5.6 percent equal to (1 - tax rate) * interest rate for the state of New York bond, and solving for the interest rate gives us approximately 6.4 percent.
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The next dividend payment by Hoffman, Inc., will be $2.50 per share. The dividends are anticipated to maintain a growth rate of 5.75 percent forever. Assume the stock currently sells for $48.60 per share.
a.
What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.What is the expected capital gains yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a.Dividend yield%b.Capital gains yield%
a)The dividend yield is approximately 5.14%.
b)The expected capital gains yield is approximately 20.34%.
a. The dividend yield can be calculated by dividing the annual dividend per share by the current stock price and multiplying by 100 to express it as a percentage. In this case:
Dividend Yield = (Dividend per share / Stock price) * 100
Given that the dividend per share is $2.50 and the stock price is $48.60:
Dividend Yield = ($2.50 / $48.60) * 100 ≈ 5.14%
Therefore, The dividend yield is approximately 5.14%.
b. The expected capital gains yield can be calculated as the difference between the expected future stock price and the current stock price, divided by the current stock price, and then multiplied by 100 to express it as a percentage. The expected future stock price can be estimated using the constant growth rate model for dividends.
Expected Capital Gains Yield = [(Expected Future Stock Price - Current Stock Price) / Current Stock Price] * 100
The constant growth rate model can be used to estimate the expected future stock price:
Expected Future Stock Price = Dividend per share / (Required Rate of Return - Dividend Growth Rate)
Given that the dividend per share is $2.50 and the dividend growth rate is 5.75%, we need the required rate of return to calculate the expected future stock price. Since the required rate of return is not provided, let's assume it to be 10% for illustration purposes.
Expected Future Stock Price = $2.50 / (0.10 - 0.0575) ≈ $58.48
Now we can calculate the capital gains yield:
Expected Capital Gains Yield = [($58.48 - $48.60) / $48.60] * 100 ≈ 20.34%
Therefore, the expected capital gains yield is approximately 20.34%.
The dividend yield for Hoffman, Inc. is approximately 5.14%, while the expected capital gains yield is approximately 20.34%.
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With the government set maximum rent of $1,600, consumer surplus is
It is difficult to estimate the consumer surplus with a fixed maximum rent without knowing the equilibrium price of rent.
Consumer surplus is the difference between the amount that consumers are willing to pay for a product and the actual price that they pay. With the government set maximum rent of $1,600, consumer surplus will depend on the equilibrium price of rent and how much consumers are willing to pay for rent.
If the equilibrium price of rent is higher than the government set maximum rent of $1,600, consumers will experience a consumer surplus as they will be able to pay less than the equilibrium price. On the other hand, if the equilibrium price of rent is lower than the government set maximum rent of $1,600, the consumer surplus will be zero as consumers will have to pay the same or more than the equilibrium price.
Therefore, the consumer surplus with the government set maximum rent of $1,600 will depend on the equilibrium price of rent, which will vary depending on market factors such as supply and demand. In conclusion, it is difficult to estimate the consumer surplus with a fixed maximum rent without knowing the equilibrium price of rent.
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Read Case 25: Procter & Gamble and use the following discussion prompts to complete the case analysis.
Create a thread to start:
Assess leadership at Procter and Gamble. What were the major organizational changes leadership made at P&G, and what challenges does the current leadership face now? What intangible resources does P&G have that can be used to enact strategies? What competitive strategy do these resources best support now? Please post your discussion and comment on two of your peers. You will be able to see other posts only when you have posted yours
Case analysis of Procter & Gamble (P&G)The paper aims to discuss the Procter & Gamble (P&G) case analysis by focusing on the organizational changes, leadership, intangible resources, and competitive strategies. Procter & Gamble (P&G) is an American multinational consumer goods corporation founded in 1837 with headquarters in Cincinnati, Ohio, USA. It manufactures various products like health care, beauty, and grooming products.
The organization has gone through significant organizational changes in terms of leadership, organizational culture, and growth. It is essential to evaluate the leadership, organizational changes, and the challenges of current leadership at P&G. Leadership at Procter and Gamble P&G is known for its outstanding leadership that has led to its success.
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Someone says the following: "Lifestyle may be the most important
determinant of health status, but changing lifestyles may not be
the least costly way to improve population health status." Explain
The statement is highlighting the importance of lifestyle in determining one's health status, which can include factors such as diet, physical activity, smoking, and alcohol consumption. While lifestyle choices have a significant impact on an individual's health, changing these behaviors may not always be the most cost-effective way to improve population health status.
For instance, implementing public health programs that focus on preventive measures such as vaccination, health screenings, and disease management initiatives may be more effective and efficient in improving overall population health than trying to change individual lifestyles. These programs can help detect and treat illnesses early on, reducing the need for costly treatments or hospitalizations later down the line.
Additionally, changing behavior can be a challenging and complex process that requires significant resources, both time and money. Therefore, policymakers and healthcare providers must consider multiple strategies and approaches to improving health outcomes, rather than just focusing on lifestyle changes alone. It's important to note that lifestyle modifications are still crucial for maintaining good health, but they may not always offer the most cost-effective solution for broader population health improvements.
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Describe the main areas of legislation relating to logistics and transport organisations
The main areas of legislation relating to logistics and transport organizations include transportation safety, environmental regulations, labor and employment laws, international trade and customs regulations, and contract and commercial laws.
Logistics and transport organizations operate within a legal framework that encompasses various areas of legislation. These laws are designed to ensure safety, protect the environment, promote fair labor practices, facilitate international trade, and govern contractual relationships. Transportation safety regulations focus on vehicle and driver safety, while environmental regulations address the impact of transportation activities on the environment. Labor and employment laws protect the rights of employees, and international trade and customs regulations govern import/export processes. Contract and commercial laws establish the legal framework for agreements and transactions within the industry. Compliance with these legislations is essential for organizations to operate legally and avoid penalties and liabilities.
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A company looking to improve its management of receivables would do which of the following? OA give risky customers extra time to pay. B. allow customers to determine when payments are due. OC. have customers provide references from banks or suppliers. OD. only check the financial health of customers when they make their first purchase.
The correct option for improving receivables management would be:
OC. Have customers provide references from banks or suppliers.
Having customers provide references from banks or suppliers can help the company assess the creditworthiness and financial stability of the customers before extending credit terms. This can reduce the risk of default or late payments and improve overall receivables management.
The other options mentioned (OA, B, OD) would not be effective strategies for improving receivables management:
A. Giving risky customers extra time to pay would increase the likelihood of late payments or default, and it would not be an effective approach to managing receivables.
B. Allowing customers to determine when payments are due would result in a lack of control over the timing of payments, potentially leading to delays or inconsistencies in cash flow.
D. Only checking the financial health of customers when they make their first purchase would neglect the ongoing assessment of creditworthiness, which is important for managing receivables effectively.
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You are considering investing in a stock. You believe that the economy over the next year will be either in recession, will achieve average growth or will be a booming economy. The following table shows the probability of each state of the economy and the return on the stock given the state of the economy. What is the expected return on the stock?
Economy probability return
Recession 20% -6,5%
Average growth 45% 5.3%
Booming 35% 10.8%
a. 6.69% b. 4.87% c. 2.06% d. 4.41%
The expected return on the stock is approximately 4.87% based on the given probabilities and returns for each state of the economy (option b).
To calculate the expected return on the stock, we multiply the return for each state of the economy by its respective probability, and then sum them up.
- Return during recession: -6.5% * 20% = -1.3%
- Return during average growth: 5.3% * 45% = 2.385%
- Return during booming economy: 10.8% * 35% = 3.78%
Expected Return = -1.3% + 2.385% + 3.78% = 4.865%
Therefore, the expected return on the stock is approximately 4.87%. The correct answer is option b. 4.87%.
This represents the average return that can be expected based on the probabilities and returns associated with each state of the economy.
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Consider a closed economy with a gross domestic product (Y) of 800, consumption expenditure (C) of 500, government expenditure (G) of 100 and tax revenues (T) of 190. The figures are in billions of dollars. Suppose the investment expenditure function is I = 300-50r, where r is the real interest rate expressed as a percentage. (Total marks = 12) a) State the equation between Y and the three components of expenditure. b) Calculate private saving (Sp), public saving (Sg), and national saving (S). c) Calculate investment (I). d) Calculate the equilibrium real interest rate and quantity of loanable funds. e) If the government ran a budget deficit of $30 billion in the next period, explain how this would affect the market for loanable funds. FCON 218
The equilibrium real interest rate is obtained by equating the saving and investment function. S = IS p + Sg = I110 + 90 = 300 - 50r200 = 50r r = 4%The quantity of loanable funds available for investment is given by I = 200.
Calculation of private saving (S p), public saving (Sg), and national saving (S)Private savings can be calculated by the equation S p = Y - T - C. Sp = 800 - 190 - 500 = $110 billion Public savings can be calculated as Sg = T - G. Sg = 190 - 100 = $90 billion The national savings can be calculated as S = S p + Sg. S = 110 + 90 = $200 billion. c) Calculation of investment (I)The given investment expenditure function is I = 300-50r where r is the real interest rate expressed as a percentage. Substituting r = 5 in the above function, we get I = 300 - 50(5) = $50 billion Therefore, the value of investment is $50 billion. d) Calculation of the equilibrium real interest rate and quantity of loanable funds The total amount of funds available for investment (loanable funds) is equal to S = I.
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The government is considering constructing a new urban freeway for $500 million. This would save 30 000 commuters 10 000 hours a day (10 minutes each way) for 200 days a year. Suppose that the road can be built in one year, commuters value their travel time savings at $20 per hour and the road has a life of 30 years after year 1 and a residual value estimated at cost at $500 million in year 32. There are no other costs or benefits. i) Would the road provide a net social benefit with a discount rate of 7 per cent? Now suppose that the government charges a road toll of $2.50 each way and that traffic falls to 20,000 commuters twice a day. ii) What would be the financial outcomes using a 7 per cent discount rate? iii) What would be the net social benefit if the remaining commuters had an average value of travel time of $25 per hour?
i) The road would provide a net social benefit. ii) the financial outcomes using a 7 per cent discount rate is -$462,451.30. iii) The net social benefit is -$490,665,100.41.
i) To determine whether the road provides a net social benefit, we need to calculate the present value of the benefits and compare it to the present value of the costs.
The benefits include time savings for commuters, while the costs involve the construction and maintenance of the road.
The time savings for commuters can be calculated as follows:
Time savings per day = 30,000 commuters * 10 minutes * 2 (round trip) = 600,000 minutes
Time savings per year = 600,000 minutes * 200 days = 120,000,000 minutes
Time savings per year in hours = 120,000,000 minutes / 60 = 2,000,000 hours
The present value of the time savings can be calculated using the discount rate of 7%:
PV of time savings = 2,000,000 hours * $20 / (1 + 0.07)^1 = $28,169,014.08
The present value of the costs is simply the construction cost of $500 million.
Since the present value of the benefits ($28,169,014.08) exceeds the present value of the costs ($500 million), the road would provide a net social benefit.
ii) If the government charges a toll of $2.50 each way and the traffic falls to 20,000 commuters twice a day, we need to calculate the new time savings and toll revenues.
New time savings per year = 20,000 commuters * 10 minutes * 2 (round trip) * 200 days = 80,000,000 minutes = 1,333,333.33 hours
New toll revenues per year = 20,000 commuters * $2.50 * 2 (round trip) * 200 days = $20 million
The present value of the new time savings can be calculated as follows:
PV of new time savings = 1,333,333.33 hours * $20 / (1 + 0.07)^1 = $18,756,959.91
The present value of the new toll revenues can be calculated as follows:
PV of toll revenues = $20 million / (1 + 0.07)^1 = $18,691,588.79
The present value of the costs remains the same at $500 million.
The net financial outcome can be calculated by subtracting the present value of costs from the sum of the present values of time savings and toll revenues:
Net financial outcome = ($18,756,959.91 + $18,691,588.79) - $500 million = -$462,451.30
iii) If the remaining commuters have an average value of travel time of $25 per hour, we need to adjust the calculations for time savings.
New time savings per year = 10,000 commuters * 10 minutes * 2 (round trip) * 200 days = 40,000,000 minutes = 666,666.67 hours
PV of new time savings = 666,666.67 hours * $25 / (1 + 0.07)^1 = $9,334,899.59
The net social benefit can be calculated by subtracting the present value of costs from the sum of the present values of time savings:
Net social benefit = $9,334,899.59 - $500 million = -$490,665,100.41
With an average value of travel time of $25 per hour, the net social benefit becomes negative, indicating that the road would result in a net social cost.
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Read Mini-case at the end of Chapter 6: Walt Disney Company Corporate Strategy and answer the following questions.
1. What is economies of scope? How does it work at Disney to lower its overall costs?
2. What corporate diversification strategy is being pursued by Disney? What evidence do you have to support your position?
3. Given its diversification approach, what are some things that Disney can do to further deal with the trend toward cord-cutting and competition from other companies such as Netflix, Amazon, etc.?
1. Economies of scope at Disney are achieved through cross-promotion and shared resources, leading to cost savings.
2. Disney is pursuing a related diversification strategy, evident from its acquisitions of Pixar, Marvel, and Lucasfilm.
3. To deal with cord-cutting and competition, Disney can invest in streaming platforms, embrace digital transformation, and focus on original content.
1. Economies of scope refer to cost savings or efficiencies that result from the production of multiple products or services within the same company. At Disney, economies of scope are achieved through cross-promotion and shared resources. By leveraging its diverse portfolio of entertainment properties, Disney can lower its overall costs in the following ways:
Cross-promotion: Disney can promote its various brands, movies, and TV shows through its different platforms, such as theme parks, television networks, and merchandise. This cross-promotion increases the exposure and popularity of its offerings, leading to higher revenues and cost savings in marketing and advertising expenses.
2. Disney is pursuing a related diversification strategy, where it expands into businesses that are related or complement its core entertainment and media operations. Evidence supporting this strategy includes:
Acquisition of Pixar Animation Studios: This acquisition expanded Disney's capabilities in animated film production, complementing its existing animation division and strengthening its position in the family entertainment market.
Acquisition of Marvel Entertainment: By acquiring Marvel, Disney diversified into the superhero genre, leveraging the popularity of Marvel characters and expanding its audience base.
Acquisition of Lucasfilm: The acquisition of Lucasfilm provided Disney with the iconic Star Wars franchise, broadening its portfolio of intellectual properties and enhancing its presence in the science fiction genre.
3. Invest in Streaming Platforms: Disney has already launched its streaming service, Disney+, to directly compete with platforms like Netflix. It can continue to invest in and enhance its streaming offerings, providing exclusive content and leveraging its vast library of entertainment properties.
Embrace Digital Transformation: Disney can further embrace digital technologies and expand its digital distribution channels to reach a wider audience. This includes expanding its presence on social media platforms, investing in personalized and targeted marketing strategies, and leveraging data analytics to understand consumer preferences better.
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tratosphere Wireless is examining its cash conversion cycle. The company expects its cost of goods sold, which equals 80 percent of sales, to be 360,000 this year. Stratosphere normally turns over inventory 20 times per year; accounts receivable is turned over 15 times per year, and the a ayatle tumover is 40 . Assume there are 360 days in a year. a. Calculate the cash conversion cycle. Round your answer to the nearest whole number. days b. Calculate the average balances in accounts receivable, accounts payable, and inventory. Round your answers to the nearest dollar. Accounts receivable: $ Accounts payable: $ Inventory: $
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
a. First, let's calculate the average age of inventory. The inventory turnover ratio is given as 20 times per year. Since there are 360 days in a year, we can divide 360 by 20 to find the average number of days it takes for inventory to turn over. This is 18 days. b. Next, let's calculate the average collection period for accounts receivable. The accounts receivable turnover ratio is given as 15 times per year. Again, dividing 360 by 15 gives us an average collection period of 24 days. c. Finally, let's calculate the average payment period for accounts payable. The accounts payable turnover ratio is given as 40 times per year. Dividing 360 by 40 gives us an average payment period of 9 days.
Now, to calculate the cash conversion cycle, we add the average age of inventory (18 days) to the average collection period for accounts receivable (24 days), and then subtract the average payment period for accounts payable (9 days). Cash Conversion Cycle = Average age of inventory + Average collection period for accounts receivable - Average payment period for accounts payable Cash Conversion Cycle = 18 days + 24 days - 9 days Cash Conversion Cycle = 33 days
So, the cash conversion cycle for Stratosphere Wireless is 33 days.
To calculate the average balances in accounts receivable, accounts payable, and inventory, we can use the following formulas:
Average Accounts Receivable = (Cost of Goods Sold / Accounts Receivable Turnover) * 360 Average Accounts Payable = (Cost of Goods Sold / Accounts Payable Turnover) * 360 Average Inventory = (Cost of Goods Sold / Inventory Turnover) * 360
Plugging in the given values, we can calculate the average balances:
Average Accounts Receivable = (360,000 / 15) * 360 = $2,592,000
Average Accounts Payable = (360,000 / 40) * 360 = $324,000
Average Inventory = (360,000 / 20) * 360 = $648,000
Therefore, the average balances are:
Accounts Receivable: $2,592,000
Accounts Payable: $324,000
Inventory: $648,000
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Procter and Gamble shares are valued at $61.00 with perpetual year-end dividends of 3.1639%. What dividend payment would a holder of 750 shares receive in perpetuity assuming the share price and dividend rate remain unchanged?
Procter and Gamble's shares are valued at $61.00 with perpetual year-end dividends of 3.1639%. A holder of 750 shares would receive a dividend payment of $23.73 in perpetuity if the share price and dividend rate remain unchanged.
To calculate the dividend payment that a holder of 750 shares would receive in perpetuity, we need to multiply the number of shares by the dividend rate.
The dividend rate of 3.1639% can be converted to a decimal by dividing it by 100: 3.1639% / 100 = 0.031639.
Next, we multiply the number of shares (750) by the dividend rate: 750 * 0.031639 = 23.72925.
Therefore, a holder of 750 shares would receive a dividend payment of $23.73 (rounded to two decimal places) in perpetuity if the share price and dividend rate remain unchanged.
The calculation assumes that the perpetual dividends are paid annually, and the share price and dividend rate remain constant over time. It's important to note that in reality, share prices and dividend rates can fluctuate based on various factors such as market conditions, company performance, and economic factors.
In conclusion, assuming no changes in share price and dividend rate, a holder of 750 shares of Procter and Gamble would receive a perpetuity dividend payment of $23.73 annually.
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which type of rocks are produced from deposition of particles
The type of rocks that are produced from the deposition of particles are called sedimentary rocks.
Sedimentary rocks are formed through the accumulation and compaction of sediments, which are particles derived from the weathering and erosion of pre-existing rocks. These sediments can include fragments of rocks, minerals, organic matter, and other debris that settle and accumulate in layers over time. With the pressure of overlying layers and the process of cementation, these sediments become compacted and solidified to form sedimentary rocks. Examples of sedimentary rocks include sandstone, limestone, shale, and conglomerate.
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Lakers Industries purchased a machine from Clippers Corporation on October 1, 2021. In payment for the $146,000 purchase, Lakers issued a one-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 18%. Monthly installment payments are closest to: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Multiple Choice
$26,280.
$13,385.
$12,167.
$14,497
We can utilise the Present Value of an Ordinary Annuity (PVA) component from the provided tables to determine the monthly installment payments. We must determine the monthly payments given the $146,000 purchase price, the 18% interest rate, and the one-year term of the installment note.
The present value of equal monthly payments over a certain period is determined using the PVA factor. The PVA factor in this situation can be used to determine the equal monthly payments necessary to pay back the $146,000 loan over the course of a year. The presented tables show the PVA factor to be roughly 0.86208 for a one-year term at an interest rate of 18%. The monthly installment payment is calculated using a PVA factor divided by the loan amount: Monthly installment payment: $169,495 ($146,000 x 0.86208). Therefore, $13,385 is the option that comes closest to the monthly installment payment.
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How the COVID-19 crisis could change the country Australia - health care systems, government debt, and stakeholder capitalism
research and make a assignment on given questions acc. to given headline
The COVID-19 crisis has had a major impact on Australia, affecting several aspects of the country including health care systems, government debt, and stakeholder capitalism. This crisis has highlighted the importance of having an efficient and well-funded health care system.
Health care systems:
The COVID-19 crisis has exposed the weaknesses of the Australian health care system, particularly in terms of the availability of medical supplies, equipment, and personnel. The sudden surge in patients requiring treatment has overwhelmed hospitals and healthcare facilities, highlighting the need for a more efficient and well-funded system. The government has responded to this crisis by investing in additional resources, including the procurement of essential medical supplies and the hiring of more healthcare workers.
Government debt:
The economic downturn caused by the COVID-19 crisis has led to a significant increase in government debt, as they try to support businesses and individuals who have been impacted by the pandemic. This increase in debt has raised concerns about the long-term sustainability of the country's finances, and how it will impact future generations. However, the government has argued that the current situation requires extraordinary measures to support the economy and ensure that people do not fall into poverty.
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Cash Receipts Budget and Accounts Receivable Aging Schedule
Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales:
Quarter 1 $4,790,000
Quarter 2 5,680,000
Quarter 3 5,290,000
Quarter 4 7,880,000
In Shalimar's experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,560,000 and for the fourth quarter of the current year are $7,130,000.
Required:
Question Content Area
1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year.
Quarter Cash Sales Credit Sales
3, current year $fill in the blank 4f9e7bfe3fc9059_1
$fill in the blank 4f9e7bfe3fc9059_2
4, current year fill in the blank 4f9e7bfe3fc9059_3
fill in the blank 4f9e7bfe3fc9059_4
1, next year fill in the blank 4f9e7bfe3fc9059_5
fill in the blank 4f9e7bfe3fc9059_6
2, next year fill in the blank 4f9e7bfe3fc9059_7
fill in the blank 4f9e7bfe3fc9059_8
3, next year fill in the blank 4f9e7bfe3fc9059_9
fill in the blank 4f9e7bfe3fc9059_10
4, next year fill in the blank 4f9e7bfe3fc9059_11
fill in the blank 4f9e7bfe3fc9059_12
Question Content Area
2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. If an amount is zero, enter "0".
Shalimar Company
Cash Receipts Budget
For the Coming Year
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Cash sales $fill in the blank d7b1efff9000008_1
$fill in the blank d7b1efff9000008_2
$fill in the blank d7b1efff9000008_3
$fill in the blank d7b1efff9000008_4
Received on account from:
Quarter 3, current year fill in the blank d7b1efff9000008_5
Quarter 4, current year fill in the blank d7b1efff9000008_6
fill in the blank d7b1efff9000008_7
Quarter 1, next year fill in the blank d7b1efff9000008_8
fill in the blank d7b1efff9000008_9
fill in the blank d7b1efff9000008_10
Quarter 2, next year fill in the blank d7b1efff9000008_11
fill in the blank d7b1efff9000008_12
fill in the blank d7b1efff9000008_13
Quarter 3, next year fill in the blank d7b1efff9000008_14
fill in the blank d7b1efff9000008_15
Quarter 4, next year fill in the blank d7b1efff9000008_16
fill in the blank d7b1efff9000008_17
fill in the blank d7b1efff9000008_18
fill in the blank d7b1efff9000008_19
Total cash receipts $fill in the blank d7b1efff9000008_20
$fill in the blank d7b1efff9000008_21
$fill in the blank d7b1efff9000008_22
$fill in the blank d7b1efff9000008_23
Question Content Area
3. What if the recession led Shalimar's top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
Shalimar Company
Cash Receipts Budget
For the Coming Year
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Cash sales $fill in the blank 3e938706704efb5_1
$fill in the blank 3e938706704efb5_2
$fill in the blank 3e938706704efb5_3
$fill in the blank 3e938706704efb5_4
Received on account from:
Quarter 4, current year fill in the blank 3e938706704efb5_5
Quarter 1, next year fill in the blank 3e938706704efb5_6
fill in the blank 3e938706704efb5_7
Quarter 2, next year fill in the blank 3e938706704efb5_8
fill in the blank 3e938706704efb5_9
Quarter 3, next year fill in the blank 3e938706704efb5_10
fill in the blank 3e938706704efb5_11
Quarter 4, next year fill in the blank 3e938706704efb5_12
Total cash receipts $fill in the blank 3e938706704efb5_13
$fill in the blank 3e938706704efb5_14
The Cash sales and credit sales for each quarter:
Quarter 3, current year: Cash sales = $556,000, Credit sales = $5,004,000
Quarter 4, current year: Cash sales = $713,000, Credit sales = $6,417,000
Quarter 1, next year: Cash sales = $479,000, Credit sales = $4,311,000
Cash Receipts Budget for Shalimar Company:
Quarter 1:
Cash sales = $479,000
Received on account from Quarter 4, current year = $713,000
Total cash receipts = $1,192,000
Quarter 2:
Cash sales = $568,000
Received on account from Quarter 1, next year = $4,311,000
Total cash receipts = $4,879,000
Quarter 3:
Cash sales = $529,000
Received on account from Quarter 2, next year = $5,112,000
Total cash receipts = $5,641,000
Quarter 4:
Cash sales = $788,000
Received on account from Quarter 3, next year = $4,761,000
Total cash receipts = $5,549,000
Revised Cash Receipts Budget considering 10% of credit sales never collected:
Quarter 1:
Cash sales = $479,000
Received on account from Quarter 4, current year = $641,700
Total cash receipts = $1,120,700
Quarter 2:
Cash sales = $568,000
Received on account from Quarter 1, next year = $3,879,900
Total cash receipts = $4,447,900
Quarter 3:
Cash sales = $529,000
Received on account from Quarter 2, next year = $4,600,400
Total cash receipts = $5,129,400
Quarter 4:
Cash sales = $788,000
Received on account from Quarter 3, next year = $4,285,100
Total cash receipts = $5,073,100
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Suppose France needs 5 units of labor to produce 1 unit of cheese (C), and 3 units of labor to produce 2 units of wine (W). Spain needs 6 units of labor to produce 1 unit of cheese, and 4 units of labor to produce 5 units of wine. Assume the marginal productivities of labor are constant in each country. Assume both countries have populations of 45 million.
France has a Cobb-Douglas utility function of U(C,W)=C.4W.6,making its MUc=.4(W/C).6 and MUw=.6(C/W).4.
Spain has a Cobb-Douglas utility function of U(C,W)=C.6W.4,making its MUc=.6(W/C).4 and MUw=.4(C/W).6.
Throughout the problem, treat Cheese as the good on the X-axis. To make your notation easier, your numbers should be in millions of units when necessary. That is, if the answer to a question is "5 million units," then write down just "5." Finally, to facilitate grading, ANSWER IN ORDER AND CIRCLE YOUR ANSWERS.
France has a comparative advantage in producing Cheese, while Spain has a comparative advantage in producing Wine.
Comparative advantage is when a country can produce a particular good or service at a lower opportunity cost than another country. In this case, France has a comparative advantage in producing Cheese, as it requires fewer units of labor to produce one unit of Cheese than Spain does. In contrast, Spain has a comparative advantage in producing Wine, as it requires fewer units of labor to produce one unit of Wine than France does.
Both countries have populations of 45 million, and the marginal productivities of labor are constant in each country. Additionally, France has a Cobb-Douglas utility function of U(C, W) = C.4W.6,
while Spain has a Cobb-Douglas utility function of U(C, W) = C.6W.4.
The marginal utility of Cheese (MUc) and the marginal utility of Wine (MUw) can be calculated from these utility functions. Finally, treating Cheese as the good on the X-axis, France has a comparative advantage in producing Cheese, while Spain has a comparative advantage in producing Wine.
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take an important confounder into account, you may: O Underestimate the effect of the exposure on the outcome Overestimate the effect of the exposure on the outcome Underestimate the risk of the outcome in the population Overestimate the risk of the outcome in the population O None of the above Question 32 1 pts You are an epidemiologist studying the impact of obesity (exposure) on risk of heart attack (outcome). Your work shows you that obesity raises blood pressure because the heart has to work harder to pump blood in larger bodies. Your work also shows you that the strain of high blood pressure on the heart increases the risk of heart attack in obese people. This information tells you that high blood pressure is a confounder in the relationship between obesity and heart attack. This information tells you that high blood pressure is an effect modifier of the relationship between obesity and heart attack. This information tells you that high blood pressure is a mediator in the relationship between obesity and heart attack. This information tells you that high blood pressure is causes obesity
If you take an important confounder into account , you may either underestimate or overestimate the effect of the exposure on the outcome. Hence, the correct option is: Underestimate the effect of the exposure on the outcome or overestimate the effect of the exposure on the outcome.
In the given scenario, the information tells us that high blood pressure is a confounder in the relationship between obesity and heart attack. Confounding occurs when an extraneous variable is associated with both the exposure and outcome. In this case, high blood pressure is a confounding variable because it is associated with both obesity and heart attack.
The confounding variable can either underestimate or overestimate the effect of the exposure on the outcome. Therefore, taking high blood pressure as a confounder into account, we must carefully analyze the data to correctly determine the impact of obesity on heart attacks.
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Explain, with the aid of a graph, the impact of an increase in SA’s ability to receive
ultra-large vessels on the supply of transport.
(Note: Five marks for the graph and five marks for the explanation of the impact)
The graph would illustrate the relationship between SA's ability to receive ultra-large vessels and the supply of transport.
On the x-axis, we would have the increasing ability of SA to receive ultra-large vessels, ranging from low to high. On the y-axis, we would represent the supply of transport, measured in terms of quantity or capacity.
Initially, with a low ability to receive ultra-large vessels, the supply of transport would be limited. As the ability to receive such vessels increases, the supply of transport would also increase. This is because ultra-large vessels have higher carrying capacities, allowing for the transportation of larger volumes of goods and cargo.
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Blue, Inc., receives its support from the following sources.
Governmental unit A for services rendered $18,000
General public for services rendered 25,000
Gross investment income 8,000
Contributions from individual disqualified persons 19,000
Which of the following statements is correct?
Blue is not a private foundation because it satisfies both the external support test and the internal support test.
Blue is a private foundation because it satisfies both the external support test and the internal support test.
.Blue is a private foundation because it satisfies the external support test and fails the internal support test.
The correct option is C. Blue, Inc. is a private foundation as it satisfies the external support test and fails the internal support test.
Blue, Inc. is an organization that receives support from several sources. From the information given, it's clear that the organization receives support from Governmental unit A, the general public, gross investment income, and individual disqualified persons. In terms of the foundation status of Blue, Inc., it's considered a private foundation due to the sources of support it receives. Blue, Inc. is considered a private foundation as it fails the internal support test and satisfies the external support test. Internal support is received from a select group of donors that includes managers, officers, and directors of the foundation. The external support test involves calculating the percentage of support received from donors that are not part of the select group of donors mentioned above. Therefore, the failure of the internal support test indicates that the support received from the select group of donors is too high, and as a result, the organization's sources of support are too limited.
Calculation steps: For the external support test calculation, the sum of government support, public support, and contributions from other donors not disqualified persons is divided by the sum of total support. In this case, External support test = ($18,000 + $25,000)/ ($18,000 + $25,000 + $8,000 + $19,000).
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What is meant by the "buyer decision process"? Explain the
process, relate it to an individual’s purchase of a new digital
camera?
The buyer decision process is a cognitive process that buyers go through before making a purchase.
The buyer decision process is a cognitive process that a buyer goes through before making a purchase. It consists of five stages, which include problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.
The first stage of the buyer decision process is problem recognition. The buyer realizes that they have a problem or need that requires a solution, such as needing a new digital camera. In the information search stage, the buyer gathers information about various digital camera options by reading reviews, asking friends for recommendations, and searching online.
In the evaluation of alternatives stage, the buyer compares various digital camera options based on their needs and preferences. They evaluate features such as image quality, battery life, and price. In the purchase decision stage, the buyer decides which digital camera to purchase based on the evaluation of alternatives. In the post-purchase evaluation stage, the buyer evaluates their satisfaction with their purchase. If they are satisfied, they may become a repeat customer in the future.
In conclusion, the buyer decision process is a cognitive process that buyers go through before making a purchase. An individual’s purchase of a new digital camera involves problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.
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Service is one of three categories of supply chain performance measurement. Which of the following metrics belong to the service category? A. Stockouts - Order fulfillment or service rate B. Variance from Target Inventory Level C. Unit distribution and transportation costs D. Responsiveness - Speed to change
Therefore, the metrics A (Stockouts - Order fulfillment or service rate) and D (Responsiveness - Speed to change) belong to the service category of supply chain performance measurement.
The metrics that belong to the service category of supply chain performance measurement are:
A. Stockouts - Order fulfillment or service rate: This metric measures the ability of the supply chain to fulfill customer orders without stockouts. It reflects the level of service provided to customers.
D. Responsiveness - Speed to change: This metric measures how quickly the supply chain can respond to changes in customer demands or market conditions. It focuses on the agility and flexibility of the supply chain to adapt and meet customer needs promptly.
B. Variance from Target Inventory Level and C. Unit distribution and transportation costs belong to other categories such as cost and efficiency measurement in the supply chain.
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while taking the application, the applicant mentions a new car
loan. the payment is $525 a month but does not show on the credit
report. the borrower also mentions that he was court ordered last
week
A loan refers to a financial transaction where one party, typically a lender or a financial institution, provides a specific amount of money or assets to another party, known as the borrower. The borrower agrees to repay the loan over a predetermined period, usually with interest or other specified fees.
If the applicant mentions a new car loan with a payment of $525 per month that does not appear on their credit report, it could indicate a couple of possibilities:
1. Timing: It's possible that the car loan is relatively new, and the information hasn't yet been reported to the credit bureaus. Creditors typically report loan information periodically, so if the loan is recent, it may not show up on the credit report immediately.
2. Reporting discrepancy: Occasionally, there may be discrepancies or errors in the reporting process, resulting in the loan not appearing on the credit report. It could be a mistake made by the lender or a delay in reporting the loan details.
Regarding the court order mentioned by the borrower, it's unclear what the court order is for based on the information provided. Court orders can vary in nature, ranging from child support or alimony obligations to legal judgments. Without more specific details, it's difficult to provide further insights.
In any case, when assessing a loan application, lenders typically consider various factors, including the applicant's income, credit history, debt-to-income ratio, and overall financial stability. While a missing car loan on the credit report might not be immediately evident, lenders may request additional documentation to verify the borrower's claims and assess their financial situation more accurately.
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Explain in your own words Differentiate between Ethical Issues in the Global Business Environment and Business Challenge in a Global Environment. Explain Government’s Regulatory Influences on Business! Provide several examples of Interaction of Business, Government, and the Public!
Ethical issues in the global business environment pertain to moral dilemmas and controversies that arise in the context of conducting business globally. On the other hand, business challenges in a global environment refer to the obstacles and difficulties faced by organizations when operating across borders. The government's regulatory influences on business involve the rules, laws, and policies implemented by governments to regulate business activities. The interaction of business, government, and the public occurs through various means, such as public policy formulation, regulatory compliance, public-private partnerships, and lobbying efforts.
Ethical issues in the global business environment revolve around questions of moral responsibility, fairness, and sustainability in international business practices. These issues can include labor rights violations, environmental pollution, bribery and corruption, supply chain ethics, and cultural sensitivity. Business challenges in a global environment, on the other hand, are the hurdles that organizations face when operating across different countries, such as cultural differences, legal and regulatory compliance, language barriers, market competition, and political instability.
The government's regulatory influences on business are manifested through laws and regulations that govern various aspects of business operations, such as labor laws, trade policies, taxation, intellectual property rights, environmental regulations, and consumer protection measures. Governments aim to create a fair and conducive business environment, ensure public welfare, and promote economic development through these regulations.
The interaction between business, government, and the public is multifaceted. For example, governments formulate public policies that impact business operations and social welfare. Businesses are required to comply with government regulations and policies, while also engaging in lobbying efforts to influence policy decisions. Public-private partnerships may be formed to address social or environmental issues collaboratively. The public, as consumers and stakeholders, influences businesses through purchasing decisions, public opinion, and activism, while governments are accountable to the public in shaping regulations and policies that reflect societal interests.
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Pet Food Company bonds pay an annual coupon rate of 7.02 percent. Coupon payments are paid semiannually. Bonds have 11 years to maturity and par value of $1,000. Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 11.60 percent.
Round the answer to two decimal places.
Your Answer:
Given data:-
Bond annual coupon rate = 7.02% Semi-annual coupon rate = 7.02%/2 = 3.51% Bond years to maturity = 11 years Par value of the bond = $1000 Market interest rate = 11.60%.
We can use the formula of the present value of a bond to compute the value of the Pet Food Company bonds.
PV = C[1 - (1 + r/2)^-n] / (r/2) + FV / (1 + r/2)^n Where, PV is the present value C is the semi-annual coupon payment . FV is the face value or par value of the bond n is the number of coupon payments r is the semi-annual interest rate. The semi-annual coupon payment (C) can be calculated as follows:-
C = (Annual coupon rate × Par value) / number of coupon payments per year= (7.02% × $1000) / 2= $35.10 Hence, the semi-annual coupon payment is $35.10. The total number of coupon payments (n) is 11 years × 2 = 22. The semi-annual interest rate (r) is 11.60% / 2 = 5.80%. Now, let’s substitute these values into the formula and compute the present value of the bond. PV = C[1 - (1 + r/2)^-n] / (r/2) + FV / (1 + r/2)^n PV = 35.1[1 - (1 + 5.80%/2)^-22] / (5.80%/2) + $1000 / (1 + 5.80%/2)^22PV = $674.87 ( approx).
Therefore, the value of the Pet Food Company bond is $674.87 if the market interest rate on this type of bond is 11.60%.Hence, the answer is $674.87.
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Xenex Inc., a supplier of hospital room disinfection systems, has a cost of capital of 12 percent. To fairly evaluate projects and adjust for risk, it adds or subtracts 2 percentage points to the discount rate. Currently, two mutually exclusive projects are under consideration. Both have a cost of $200,000 and will last four years. Neither project is projected to generate positive cash flows and thus both are evaluated on the basis of costs. However, Project A is judged to be a riskier-than-average project but Project B is determined to a lower than average risk investment.
In which project should Xenex invest its capital?
Xenex Inc. should invest its capital in Project B since it is the better investment option.
Given that Xenex Inc. has a cost of capital of 12% and adjusts for risk by adding or subtracting 2 percentage points to the discount rate, it means the discount rate for a higher-risk project is 14%, and for a lower risk investment, it's 10%.
Projects A and B are both mutually exclusive, and neither is projected to generate positive cash flows. Both projects have a cost of $200,000 and will last for four years. Both projects are evaluated based on their costs.
The riskier project (Project A) should have a higher discount rate of 14%, and the less risky project (Project B) should have a lower discount rate of 10%. The net present value (NPV) of each project is then determined by discounting the projected cash outflows at the applicable discount rate.
Project A's NPV at a 14% discount rate = -$128,913.91
Project B's NPV at a 10% discount rate = -$116,944.44
Since both projects are evaluated on the basis of costs, the project with the lower NPV is the better investment option, which is Project B.
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Which of the following is a typical financing activity?
a) purchasing another company’s shares
b) paying dividends
c) purchasing property, plant or equipment
d) paying interest expense
Out of the given options, paying interest expense is a typical financing activity.Financing activities are transactions or activities a company undertakes to secure funding for its operations and investment activities.
Companies can raise money by issuing stocks, bonds, or other securities, as well as borrowing money from banks or other lenders.A company's balance sheet must be organized and its financial statements prepared correctly to account for any funds obtained or paid during these financing activities. Any financial statements or reports that a company prepares must include details of all financing activities undertaken by the company.
According to the given options, purchasing another company’s shares and paying dividends are examples of investing activities. Purchasing property, plant or equipment, on the other hand, is an example of an operating activity. Therefore, paying interest expense is a typical financing activity.
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What does a point underneath the production possibility frontier indicate? o unattainable with current resources o inefficient in that not all resources are being used o the equilibrium output combination o technically efficient
The point underneath the production possibility frontier indicates that the output combination is inefficient in that not all resources are being used. Hence, it is known as option d) technically inefficient.
The production possibility frontier (PPF) is a graphical representation of all the possible combinations of two goods that can be produced using all of the resources available in the economy. The PPF shows the maximum amount of one good that can be produced for each possible amount of the other good produced. The points on or inside the PPF are all technically feasible but only those on the PPF are efficient and optimal. The points outside the PPF are unattainable with current resources.
At points on the PPF, all resources are being fully and efficiently used whereas at points inside the PPF, resources are not being fully utilized. The point underneath the production possibility frontier indicates that the output combination is inefficient in that not all resources are being used; this implies that the economy can produce more of one good without sacrificing the production of another good.
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A 4-year, 4.7 percent Euroyen bond sells at par. A comparable risk 4-year, 5.2 percent yen/dollar dual currency bond pays $1008.26 at maturity. It sells for ¥113,000. What is the implied USD/JPY exchange rate at maturity? (XXX.XX) Hint: The dual-currency bond pays 5.2 percent interest on a notional value of ¥100,000, whereas the par value of the bond is not necessarily equivalent to ¥100,000
The 4-year, 4.7% Euro yen bond sells at par. Also, a comparable risk 4-year, 5.2% yen/dollar dual-currency bond pays $1008.26 at maturity and sells for ¥113,000, the implied USD/JPY exchange rate at maturity will be ¥110.70/$1.
As, the total amount paid by dual-currency bond at maturity :¥100,000*1.052 = $1,052.
The value of $1 in Yen, using the exchange rate implied in the dual-currency bond.
The value of $1 in yen at the start of the bond:¥113,000 / $1,052 = ¥107.33.
Therefore, at the start of the bond, the exchange rate is ¥107.33/$1. As the bond matures, it will be paid at the exchange rate at the time of maturity.
We know that the dual-currency bond pays $1,052, which is equivalent to:¥1,052 / ¥100,000 = 0.01052The Euro yen bond is paying 4.7% annually.
The dollar side of the dual-currency bond is paying $1,052 at the end of four years.
Therefore, we can equate the values of the two bonds as follows:
Par value of Euro yen Bond * (1 + 4.7%)^4 = ¥100,000 * 0.01052 * X where X is the implied exchange rate at maturity.
Plugging in the numbers:¥100,000 * (1 + 0.047)^4 = ¥100,000 * 0.01052 * XX = ¥110.70/$1The implied exchange rate at maturity is ¥110.70/$1.
Hence, the answer is 110.70.
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Which three facets of job satisfaction are most closely related to overall job satisfaction, according to our text and classroom discussion? the work itself, coworkers, supervisors autonomy, feedback, supervisors coworkers, pay and benefits, development opportunities pay, work, and benefits promotion opportunities, pay, benefits Question 2 7.5 pts The scientific method requires that theories be used as a basis for WAGS intuitions verification hypotheses causation creative thinking Question 3 7.5 pts We learned in class that the O ∗
Net is an online source of OB information an online source of job information that is useful but not for job descriptions an online source of job information created by a wiki format with multiple sources adding information an online source of job information that can be helpful for developing job descriptions an online network to do background checks on applicants
According to the information provided, the three facets of job satisfaction that are most closely related to overall job satisfaction are:
The work itself
Coworkers
Supervisors
The work itself: Job satisfaction is influenced by the nature of the work, including the tasks, responsibilities, and challenges involved. When individuals find their work meaningful, engaging, and aligned with their interests and values, it positively impacts their overall job satisfaction.
Coworkers: The relationships and interactions with coworkers play a significant role in job satisfaction. Supportive and positive relationships with colleagues can contribute to a sense of camaraderie, teamwork, and a pleasant work environment, which can enhance overall job satisfaction.
Supervisors: The quality of the relationship with supervisors and the leadership style of supervisors also impact job satisfaction. A supportive and effective supervisor who provides guidance, feedback, and opportunities for growth and development can contribute to higher levels of job satisfaction among employees.
It's important to note that while other factors such as autonomy, feedback, pay and benefits, development opportunities, promotion opportunities, etc., can also influence job satisfaction, the three facets mentioned above are specifically highlighted as being closely related to overall job satisfaction based on the information provided.
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