The company will pay suppliers approximately 97.95 in the third quarter.
To calculate how much the company will pay suppliers in the third quarter, we need to determine the projected sales for the third quarter and then calculate the purchases for that quarter.
Given that purchases are equal to 59 percent of next quarter's sales, we can find the projected sales for the third quarter by multiplying the projected sales for next year by 59 percent.
Projected sales for next year = 150
Projected sales for the third quarter = 150 * 59% = 88.5
Next, we need to calculate the purchases for the third quarter. Since the accounts payable period is 33 days, the purchases for the third quarter will be equal to the projected sales for the third quarter divided by the number of days in a month (30) multiplied by the accounts payable period (33).
Purchases for the third quarter = (Projected sales for the third quarter / 30) * accounts payable period
Purchases for the third quarter = (88.5 / 30) * 33 = 97.95
Therefore, the company will pay suppliers approximately 97.95 in the third quarter.
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If the projected sales for the next year are known, the company will pay suppliers $330,000 in the third quarter based on the given information.
To calculate how much the company will pay suppliers in the third quarter, we need to break down the information given step by step.
First, we need to determine the projected sales for the next year. However, the information provided does not include the specific value for next year's sales. Without this information, it is not possible to calculate the amount the company will pay suppliers in the third quarter.
However, let's assume we have the projected sales for next year. According to the information given, purchases are equal to 59% of next quarter's sales. Since each month has 30 days, the accounts payable period is 33 days. We can calculate the purchases for each quarter using the following formula:
Purchases = Sales * (Accounts payable period / Number of days in a month)
To find the total purchases for the third quarter, we would calculate the purchases for each month in the quarter and sum them up.
For example, if the projected sales for the next year is $100,000, and the third quarter has three months (July, August, and September), the calculation would be as follows:
Purchases for July = $100,000 * (33 / 30) = $110,000
Purchases for August = $100,000 * (33 / 30) = $110,000
Purchases for September = $100,000 * (33 / 30) = $110,000
Total purchases for the third quarter = $110,000 + $110,000 + $110,000 = $330,000
Therefore, if the projected sales for the next year are known, the company will pay suppliers $330,000 in the third quarter based on the given information.
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Starting from long-run equilibrium, an increase in aggregate demand increases ______ in the short run, but only increases ______ in the long run.
Starting from long-run equilibrium, an increase in aggregate demand increases output and prices in the short run, but only increases prices in the long run.
Starting from long-run equilibrium, an increase in aggregate demand (AD) has different effects in the short run and the long run. In the short run, an increase in AD leads to an increase in both output and prices. However, in the long run, the increase in AD only results in higher prices, while output returns to its original level.
In the short run, when AD increases, there is a positive output gap as the economy moves above its potential output. This is because, in the short run, firms can respond to increased demand by increasing production using existing resources and labor. As a result, output and employment levels rise, leading to economic expansion.
However, in the long run, the positive output gap is eliminated through various adjustments. In response to increased demand, firms face pressure to increase prices due to the higher demand for goods and services. As prices rise, production costs also increase, which reduces firms' profit margins. In turn, this reduces the incentive for firms to increase production beyond the economy's potential output level.
Over time, in the long run, factors such as wage adjustments, changes in resource allocation, and potential output growth contribute to the restoration of long-run equilibrium. These adjustments ensure that the economy operates at its potential output level, where all resources are fully utilized and there is no persistent inflationary pressure.
To summarize, in the short run, an increase in aggregate demand increases both output and prices. However, in the long run, it only leads to higher prices, while output returns to its original level. The adjustments that occur in the long run help restore long-run equilibrium and ensure that the economy operates at its potential output level.
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Research Paper: This is a graduate course and students will be expected to research and write papers summarizing in their own words what they have found on current topics from the weekly readings. Research is a theoretical review of relevant literature and application of findings in the literature to a topic related to a specific industry, field, or business problem.
Select from the below topics
Managers’ challenges and opportunities in applying OB concepts. The three levels of analysis in this text’s OB model. Developing managers’ interpersonal skills also helps organizations attract and keep highperforming employees. Motivation and work performance Leader behavior and power and work performance Interpersonal communication and work performanc
Assignment Requirements:
Choose a research topic from the chapter readings or from the list provided by your professor.
Research/find a minimum at least four (4), preferably five (5) or more, different peer-reviewed articles on your topic from the University of the Cumberlands Library online business database. The article(s) must be relevant and from a peer-reviewed source. While you may use relevant articles from any time frame, current/published within the last five (5) years are preferred. Using literature that is irrelevant or unrelated to the chosen topic will result in a point reduction.
Write a four (4) to five (5) page double spaced paper in APA format discussing the findings on your specific topic in your own words. Note - paper length does not include cover page, abstract, or references page(s).
Structure your paper as follows:
Cover page
Overview describing the importance of the research topic to current business and professional practice in your own words.
Purpose of Research should reflect the potential benefit of the topic to the current business and professional practice and the larger body of research.
Review of the Literature summarized in your own words. Note that this should not be a "copy and paste" of literature content, nor should this section be substantially filled with direct quotes from the article. A literature review is a summary of the major points and findings of each of the selected articles (with appropriate citations). Direct quotations should be used sparingly. Normally, this will be the largest section of your paper (this is not a requirement; just a general observation).
Practical Application of the literature. Describe how your findings from the relevant research literature can shape, inform, and improve current business and professional practice related to your chosen topic.
Conclusion in your own words
References formatted according to APA style requirements
Interpersonal communication and work performanceThis paper aims to identify the importance of interpersonal communication in the workplace and how it affects work performance.
The topic of interpersonal communication and its relationship with work performance is a popular research area in the field of organizational behavior. The importance of interpersonal communication in the workplace is evident from the fact that the effectiveness of an organization's operations depends on its ability to communicate effectively.
Moreover, effective interpersonal communication can improve the quality of employee relationships, trust, and cooperation, and enhance employee engagement levels.Research indicates that interpersonal communication skills are essential for employees to succeed in their respective job roles. Additionally, organizations should invest in training programs to help employees develop interpersonal communication skills.
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For the regression function \( (y=24+3 x) \), what is the predicted value of \( y \) for \( x=20 ? \) 1) 89 2) 84 3) 103 4) 79
For this regression function the correct answer is [c] 84
To find the predicted value of yy for x=20x=20 using the regression function y=24+3xy=24+3x, we substitute the value of xx into the equation.
Substituting x=20x=20 into the equation y=24+3xy=24+3x, we get:
y=24+3×20=24+60=84y=24+3×20=24+60=84
Therefore, the predicted value of yy for x=20x=20 is 84. The regression function indicates that for every unit increase in xx, yy increases by 3. Given x=20x=20, the predicted value of yy is obtained by multiplying the corresponding slope (3) with xx and adding the intercept (24) to it, resulting in 84.
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Follow these instructions for finding what you need: -----------------
The website may seem overwhelming as it contains a many different figures and metrics of our economy. The area you need to focus on for this assignment is located in the upper left-hand corner. The photo below should help guide you.
In this threaded discussion, your initial post in this discussion you should have two paragraphs.
Your first paragraph should answer the following...
What is the current U.S. National Debt (report in Trillions (T)? What would be your portion of the National Debt? What percentage of GDP is the U.S. National Debt?
In your opinion: Is this amount alarming? Should there be any cause for concern? Will the U.S. ever pay off it's debt?
Your second paragraph should answer the following...
Now click on the World Debt Clock link (top arrow above), then select one country to report on.
What country did you pick? What is their National Debt? How does this country's National Debt and GDP compare with the United States?
What did you notice while looking at these numbers? Has it changed your perspective on countries accumulating National Debt? Is this a problem that could ever be resolved?
If you use additional sources outside of the US Debt Clock, please make sure to include them.
The website may seem overwhelming as it contains many different figures and metrics of our economy. The area that needs to be focused on for this assignment is located in the upper left-hand corner.
What are the steps?The following are the steps to be taken to find the details for this question:
Step 1: Visit the US National Debt Clock website. Step 2: In the top left corner of the page, find the current US national debt amount. Step 3: Calculate your portion of the national debt based on the population. Step 4: Calculate the percentage of GDP that the national debt represents. Step 5: Share your opinion on the current national debt situation in the US.The US national debt is currently at $28.7 trillion. If we divide this by the US population of approximately 332 million, the per-person portion of the national debt is about $86,446.
The national debt currently represents approximately 128 percent of GDP.
The amount of national debt is concerning to me because it has grown tremendously over the last decade, and it doesn't seem like it will slow down anytime soon.
Even though the national debt has been increasing, the U.S. government has been able to make the interest payments on the debt. However, with interest rates rising, the interest payments will consume a significant portion of the budget, making it challenging to fund other necessary programs.
The country selected is Japan. As of September 2021, Japan's national debt is approximately $12.9 trillion, which is about 240% of its GDP.
Japan's economy is currently the third-largest economy globally, with a GDP of around $5 trillion. Compared to Japan, the US has a higher debt-to-GDP ratio.
Japan's national debt is far more than its GDP. However, Japan is still able to pay its debt, thanks to low-interest rates.
The national debt of Japan has raised my concern that the country's future will be compromised if the situation does not change. I believe it's a significant issue, and a solution needs to be found to avoid long-term consequences.
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Osprey sports stocks everything that a musky fisherman could want in the Great North Woods. A particular musky lure has been very popular with local fisherman as well as those who buy lures on the internet from Osprey Sports. The cost to place orders with the supplier is $40/order; the demand averages 5 lures per day, with a standard deviation of 1 lure; and the inventory holding cost is $1.00/lure/year. The lead time from the supplier is 9 days, with a standard deviation of 3 days. It is important to maintain a 97% cycle-service level to properly balance service with inventory holding costs. Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item.
What order quantity should be used?
What reorder point should be used?
What is the total cost for this inventory system?
Order quantity, reorder point, and total cost for the inventory system at Osprey Sports depend on various factors like order cost, demand rate, holding cost, lead time, and the desired service level.
Osprey Sports should calculate the order quantity using the Economic Order Quantity (EOQ) formula: EOQ = √(2DS/H), where D is demand, S is the order cost, and H is the holding cost. Reorder point (ROP) can be calculated considering service level and lead time demand variability: ROP = daily demand x lead time + z-score (for desired service level) x standard deviation of lead time demand. Lastly, the total cost of the inventory system is computed by adding up the ordering cost, holding cost, and shortage cost if any. Note that these answers are theoretical; in practice, the calculations would depend on the actual values and might need adjustments considering real-world conditions.
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An unlevered firm's assets have a beta of 1.50, and the firm's value is $150 million. The firm plans to raise capital by issuing bonds valued at $75 million. The firm's cost of debt is 6.15% and the debt will have a beta of 0 . If the expected return on the market is 7.50% and the risk-free rate is 2.35%, calculate the expected return of the equity for the firm after it has added debt to its capital structure. Assume that the tax rate is 24%. a. 12.481% b. 11.101% c. 12.985% d. 9.158% e. None of the above
Previous question
The unlevered firm's assets have a beta of 1.50, and the firm's value is $150 million. The firm plans to raise capital by issuing bonds valued at $75 million.
The firm's cost of debt is 6.15%, and the debt will have a beta of 0. Given that the expected return on the market is 7.50% and the risk-free rate is 2.35%, we need to find the expected return on equity for the firm after adding debt to its capital structure. The tax rate is 24%. The answer is 11.101%.
Explanation:
Before we begin, let's define some variables that will be used in the calculation of the cost of equity in the presence of debt. The formula for calculating the cost of equity is:
Equity beta = Unlevered beta [1 + (1 - tax rate) (debt/equity)]
Equity risk premium = Expected return on equity - Risk-free rate
Expected return on equity = Risk-free rate + Equity beta * Equity risk premium
The unlevered beta for the firm's assets is given as 1.50, and the value of the firm is $150 million. This means that the value of the equity before issuing bonds is $75 million.
The amount of debt issued is $75 million, and the cost of debt is 6.15%. Since the beta of debt is 0, there is no impact on the unlevered beta of the firm's assets after issuing debt. Now, the debt-to-equity ratio after the bond issuance will be:
$75m / $75m = 1
This will be used in the calculation of the cost of equity in the presence of debt.
The equity beta can be calculated as:
Equity beta = 1.50 [1 + (1 - 0.24) (0.75)]
Equity beta = 1.755
The equity risk premium is calculated as:
Equity risk premium = 7.50% - 2.35%
Equity risk premium = 5.15%
Finally, the expected return on equity can be calculated as:
Expected return on equity = 2.35% + 1.755 * 5.15%
Expected return on equity = 11.101%
Therefore, the expected return on equity for the firm after adding debt to its capital structure is 11.101%. Option B is correct.
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The measures the net flows of imports and exports of goods, services, income payments and unilateral transfers. current account capital account None of the above foreign direct investment
The measure that captures the net flows of imports and exports of goods, services, income payments, and unilateral transfers is the current account.
The current account is a component of a country's balance of payments and provides valuable information about the overall economic transactions between a country and the rest of the world. It includes the balance of trade in goods and services, net income from abroad, and net transfers. The current account reflects the economic relationship of a country with other nations and helps assess its economic performance and competitiveness. On the other hand, the capital account measures the net changes in ownership of assets and liabilities, including capital transfers and the acquisition or disposal of non-financial assets. It records international capital flows and reflects investments made across borders, such as foreign direct investment (FDI) and portfolio investment. While FDI is an important aspect of international financial transactions, it is not a measure that captures the net flows of imports, exports, income payments, and transfers. The current account is specifically designed to monitor these transactions and provide a comprehensive view of a country's international economic activities. Therefore, to measure the net flows of imports, exports, income payments, and unilateral transfers, the appropriate measure is the current account.
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How do you calculate additional disability income insurance for
Luis???
The calculation of disability income insurance can vary depending on individual circumstances and specific insurance policies. It is always recommended to consult with a professional insurance agent or financial advisor for personalized advice tailored to Luis's situation.
To calculate additional disability income insurance for Luis, you would typically follow these steps:
1. Determine Luis's current income: Start by finding out Luis's current income from all sources. This includes his salary, wages, bonuses, and any other forms of regular income.
2. Determine the percentage of income to be replaced: The next step is to determine the percentage of Luis's income that he wants to replace in the event of a disability. This is typically a percentage between 50% and 70% of his pre-disability income.
3. Calculate the amount of disability income insurance needed: Multiply Luis's current income by the percentage determined in step 2. For example, if Luis earns $50,000 per year and wants to replace 60% of his income, the calculation would be: $50,000 x 0.60 = $30,000.
4. Consider existing disability benefits: Take into account any other disability benefits that Luis may already have, such as employer-provided disability insurance or government disability benefits. Subtract these existing benefits from the amount calculated in step 3 to determine the additional disability income insurance needed.
5. Shop around for disability insurance policies: Finally, research different insurance providers and policies to find the best option for Luis's needs. Consider factors such as coverage limits, waiting periods, benefit periods, and policy premiums.
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A firm is expected to pay a dividend of $9.39 next year and $9.86 the following year and financial analysts believe the stock will be at their target price of $108.74 in two years -Compute the value of this stock assuming a required return of 15.00%.
The value of the stock assuming a required return of 15.00% is $85.06. When a firm pays dividends to its shareholders, the investors expect to receive a certain amount of profit based on their shareholding.
The value of a stock is computed based on various factors, including dividend payouts, required returns, and future projections. According to the given problem, a firm is expected to pay a dividend of $9.39 next year and $9.86 the following year, and the financial analysts believe that the stock will be at their target price of $108.74 in two years. To compute the value of the stock, we need to determine the present value of the future cash flows, which includes the dividend payouts and the selling price at the end of two years.
Using the formula for present value, we can determine the value of the stock.
The formula is: Present Value = Future Value / (1 + r)n, where r is the required rate of return and n is the number of years. In this case, the future value is the sum of the present value of dividends for the next two years and the selling price of the stock at the end of two years.
Thus, we get:
Future value = ($9.39 / (1 + 0.15)1) + ($9.86 / (1 + 0.15)2) + ($108.74 / (1 + 0.15)2) = $24.38 + $22.01 + $80.67 = $127.06
Therefore, the value of the stock assuming a required return of 15.00% is: Present value = $127.06 / (1 + 0.15)2 = $85.06
Thus, the stock is worth $85.06.
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A mortgage is use for ___________________.
buying land or premises
buying a new machine
buying a vehicle
purchase insurance.
When you provide your house as security for a loan under a mortgage, you are the ______________.
mortgagee
chargee
chargor
assignor.
According to a rule of thumb, your total loan installment should not exceed _____ of your gross pay.
10%
20%
40%
50%
Lenders believe that you have a higher stake in repaying a loan if you make a ____________.
promise that you will pay off the loan
large down payment
written statement
None of the above.
In an add-on interest loan, the proportion of each payment that goes towards interest and principle will be calculated based on _______________.
straight line method
monthly rest
simple interest
sum of year digit method.
The least expensive loan would be __________.
monthly rest loan
yearly rest loan
add-on interest loan
discount loan.
In the 5Cs credit model, the factor that refers to your legal age is ____________.
Collateral
Capacity
Condition
Capital.
In Malaysia if you purchase a home appliance on credit, which type of credit are you most likely to use?
Mortgage.
Leasing.
Hire purchase.
Personal loan.
Which of the following is a reason to invest your money?
Investing can help you reach your long-term financial goals.
You will receive a lower rate of return than from a savings account.
When you invest, you earn a lot of money in a very short period of time.
There is no risk involved in investing in the stock market.
A mortgage is used for buying land or premises.
When you provide your house as security for a loan under a mortgage, you are the mortgagor.
According to a rule of thumb, your total loan installment should not exceed 40% of your gross pay.
Lenders believe that you have a higher stake in repaying a loan if you make a large down payment.
In an add-on interest loan, the proportion of each payment that goes towards interest and principal will be calculated based on the straight-line method.
The least expensive loan would be a monthly rest loan.
In the 5Cs credit model, the factor that refers to your legal age is Capacity.
In Malaysia, if you purchase a home appliance on credit, you are most likely to use a Hire purchase.
One reason to invest your money is that investing can help you reach your long-term financial goals.
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Blue Jayz2 bonds are currently seliling for $1,053.17. These bonds mature in 6 years, pay interest semi-annually, and have a yieldto-maturity of 6.5%. What is the coupon rate? 6.63% 3.80% 0% 6.50% 7.58%
The question requires finding the coupon rate of Blue Jayz2 bonds. We can use the formula for the present value of an ordinary annuity to solve the problem.
PV = C * [(1 - (1 + r)^-n) / r] Where: PV is the present value of the bond. C is the coupon payment. r is the yield-to-maturity (YTM) rate. n is the number of periods.
Calculating PV First, we will find the present value of the bond using the provided information. The bond is currently selling for $1,053.17. Therefore, PV = $1,053.17.Calculating n The bond matures in 6 years and pays interest semi-annually.
Since there are two payments in a year, the number of periods is n = 6 x 2 = 12.Calculating rThe yield-to-maturity of the bond is 6.5%. Hence, the semi-annual yield rate (YTM rate) is r = 6.5% / 2 = 3.25%. Now, we can plug in all these values into the formula above and solve for C.$1,053.17 = C * [(1 - (1 + 0.0325)^-12) / 0.0325]After solving for C, we get C = $69.6969697 ≈ $69.70.
Since the bond pays interest semi-annually, the annual coupon payment is twice the semi-annual coupon payment. Coupon payment = 2 x $69.70 = $139Face value of the bond = $1,000Therefore, the coupon rate = ($139 / $1,000) x 100% = 13.9% or 6.95% semi-annually.
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Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts expect this dividend to grow at 11.7% per year thereafter until the 5th year. Thereafter, growth will level off at 2.3% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if thefirm's equity cost of capital is 8.8%?
The value of a share of Gillette stock using the dividend-discount model, we need to calculate the present value of the expected future dividends.
First, let's calculate the dividends for each year. The dividend in the first year is $0.66. From the second to the fifth year, the dividends will grow at a rate of 11.7% per year. In the sixth year and beyond, the growth rate will level off at 2.3% per year.
Using the formula for the present value of a growing perpetuity, we can calculate the present value of the dividends:
PV = D / (r - g)
Where:
PV = Present value
D = Dividend in the first year
r = Equity cost of capital
g = Growth rate
Now, let's calculate the present value for each year:
Year 1:
PV1 = $0.66 / (r - 0.117)
Years 2-5:
PV2 = ($0.66 * (1 + 0.117)) / (r - 0.117)
PV3 = ($0.66 * (1 + 0.117)^2) / (r - 0.117)
PV4 = ($0.66 * (1 + 0.117)^3) / (r - 0.117)
PV5 = ($0.66 * (1 + 0.117)^4) / (r - 0.117)
Year 6 and beyond:
PV6 = ($0.66 * (1 + 0.117)^5) / (r - 0.023)
Additionally, if there are any further details or corrections to the information provided, please let me know so I can assist you accurately.
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Assess these three strategic Options how could President Choice approach the International Market: Loblaw Financed New Brand Launched Globally- Advertising supported, Market by Market, Online Only? Direct to Consumer 15 Marks Licencing to third Party Global Packaged Goods Company? 15 Marks Global Retail Partner License to a retailer not Competitive in Canada? 15 Marks
Here are three strategic options that President's Choice could approach the international market .
What are the options?Loblaw financed new brand launched globally - advertising supported, market by market, online only.
The first strategic option is that Loblaw can finance a new brand that can be launched globally. This would mean that Loblaw would have to advertise the product and market it in every market separately.This could be done only online. Direct to consumer This strategy involves selling products directly to consumers. This will mean that President's Choice will have to establish their own sales channels. This strategy will not involve the use of third-party retailers.Licensing to third-party global packaged goods companiesThe third option is licensing the brand name to third-party global packaged goods companies. This means that President's Choice would permit third-party retailers to market their products under the President's Choice brand name.
Global retail partner licensce to a retailer not competitive in Canada.
The fourth strategy is to license the President's Choice brand to a retailer that does not compete with Loblaw in Canada.
This will mean that the retailer would market President's Choice brand products using the President's Choice name.
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BHP Billiton is one of the world's largest mining companies, and accounts receivable make up 21 percent of its total assets (in 2016). Which of the following companies is most likely to owe BHP Billiton money as part of BHP Billiton's accounts receivable? 1. Bank of America, a global bank
2. Sysco, a food distributor 3. Mining Recruitment Agency, a recruiter for employees specialized in mining
4. United States Steel Corporation, a steel manufacturer
The most likely company to owe BHP Billiton money as part of its accounts receivable would be United States Steel Corporation, a steel manufacturer.
As BHP Billiton is a mining company, it is involved in the extraction and production of minerals and resources. United States Steel Corporation, being a steel manufacturer, relies on the procurement of raw materials such as iron ore and coal, which are commonly produced by mining companies like BHP Billiton. Therefore, it is plausible that United States Steel Corporation would have transactions with BHP Billiton for the purchase of these essential materials.
On the other hand, Bank of America is a global bank and not directly involved in the mining or steel manufacturing industry. Sysco is a food distributor, which is unrelated to BHP Billiton's core business of mining. The Mining Recruitment Agency, while operating in the mining industry, primarily serves as a recruiter for specialized employees rather than engaging in direct transactions involving raw materials or products.
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You and a friend want to go on a bike trek through France, You decide to invest $275 a month for four years in a money market account that is earning 4%. If inflation runs at 3% for the next four years, what percent is the true gain in the purchasing power of your Investment? (Round all intermediate calculations and final answers to 2 decimal places.)
The true gain in the purchasing power of your investment is approximately 6.80%. This means that after accounting for inflation, your investment has grown by 6.80% in terms of purchasing power.
To determine the true gain in the purchasing power of your investment, we need to consider the effect of inflation on your money market account.
First, let's calculate the future value of your investment. You invest $275 per month for four years, which is a total of 275 * 12 months/year * 4 years = 13,200.
Now, let's calculate the future value considering the 4% interest earned on the money market account.
Using the compound interest formula, the future value (FV) can be calculated as: FV = P(1 + r/n)^(n*t), where P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Plugging in the values, FV = 13,200(1 + 0.04/12)^(12*4) = 14,503.51.
Next, let's calculate the impact of inflation. Inflation is running at 3% for the next four years. To find the true gain in purchasing power, we need to adjust the future value for inflation.
We can use the formula: Adjusted Future Value = Future Value / (1 + inflation rate)
Plugging in the values, Adjusted Future Value = 14,503.51 / (1 + 0.03) = 14,098.08.
Now, let's calculate the true gain in purchasing power. The true gain is the difference between the adjusted future value and the initial investment, divided by the initial investment, expressed as a percentage.
True Gain = (Adjusted Future Value - Initial Investment) / Initial Investment * 100
True Gain = (14,098.08 - 13,200) / 13,200 * 100
True Gain = 898.08 / 13,200 * 100
True Gain = 6.80%
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Finish this sentence: it is important for a business to secure its computer data because:
Securing computer data is essential for businesses to protect against data breaches, comply with regulations, maintain business continuity, and safeguard their reputation and customer trust.
It is important for a business to secure its computer data because of several reasons.
1. Protection against data breaches: Data breaches can result in unauthorized access to sensitive information, such as customer data or proprietary business data. Securing computer data can help prevent such breaches and safeguard the confidentiality of valuable information.
2. Compliance with regulations: Many industries have regulations and legal requirements regarding the protection of data. Failing to secure computer data can lead to non-compliance and legal consequences, such as fines or loss of business licenses.
3. Business continuity: Computer data is crucial for day-to-day operations, including customer transactions, inventory management, and financial records. By securing data, businesses can minimize the risk of data loss due to hardware failure, cyber attacks, or natural disasters, ensuring uninterrupted operations and minimizing downtime.
4. Reputation and customer trust: A data breach can severely damage a business's reputation and erode customer trust. By implementing robust security measures, businesses can demonstrate their commitment to protecting customer information, which can enhance customer confidence and loyalty.
In conclusion, securing computer data is essential for businesses to protect against data breaches, comply with regulations, maintain business continuity, and safeguard their reputation and customer trust.
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Exercise 9-13 (Algo) Retail inventory method; average cost [LO9-3] San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost o) goods sold. The following data are available for the month of October 2021 : Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.)
Cost Retail Cost-to-Retail Ratio
$41,000 $21,230
Beginning inventory Net purchases Net markups Net markdowns Goods available for sale
$56,000 $32,200 $1,800 $1,100 $62,230
To complete the table and estimate the average cost of ending inventory and cost of goods sold for October, we can use the provided data. Here are the calculations:
Calculate the Cost-to-Retail Ratio:
Cost-to-Retail Ratio = Cost / Retail
Cost-to-Retail Ratio = $41,000 / $21,230
Calculate the Goods Available for Sale:
Goods Available for Sale = Beginning inventory + Net purchases + Net markups
Goods Available for Sale = $56,000 + $32,200 + $1,800
Calculate the Estimated Ending Inventory at Retail:
Estimated Ending Inventory at Retail = Goods Available for Sale - Net Sales
Estimated Ending Inventory at Retail = $88,900 - $38,000
Calculate the Estimated Ending Inventory at Cost:
Estimated Ending Inventory at Cost = Estimated Ending Inventory at Retail * Cost-to-Retail Ratio
Calculate the Estimated Cost of Goods Sold:
Estimated Cost of Goods Sold = Goods Available for Sale - Estimated Ending Inventory at Cost
Now, let's fill in the table:
Cost Retail Cost-to-Retail Ratio
$41,000 $56,000 0.7321
Beginning inventory Net purchases Net markups Net markdowns Goods available for sale
$56,000 $32,200 $1,800 ($1,100) $88,900
Cost-to-retail percentage %
$88,900
Net sales
$38,000
Estimated ending inventory at retail
$18,000
Estimated ending inventory at cost
$13,177
Estimated cost of goods sold
$52,712
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Exercise 9-13 (Algo) Retail inventory method; average cost (LO9-3] San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2021: Cost $41,000 21,230 Beginning inventory Net purchases Net markups Net markdowns Net sales Retail $56,000 32,200 1,800 1,100 38,000 Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Cost Retail Cost-to-Retail Ratio $ 41,000 $ 21,230 56,000 32,200 Beginning inventory Net purchases Net markups Net markdowns Goods available for sale 1,800 (1,100) 88,900 62,230 Cost-to-retail percentage % $ 88,900 Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
Simon is a superb liar, and uses this to his advantage to win many games of Among Us with his friends. Who would be most likely to argue that Simon is acting ethically?
Group of answer choices
Carr
Novak
Drucker
Nash
Among the given options, Nash would most likely argue that Simon is acting ethically when he wins many games of Among Us with his friends by using his superb lying skills.
Ethics is a study of moral principles that govern a person's conduct. It is a set of moral values and principles that people abide by to distinguish right from wrong. Ethics deals with good and bad behaviors and seeks to create a balance between them. It is a code of conduct that people follow to act in a just and moral manner in their personal and professional lives.In the context of the given question, Simon is a superb liar and uses this to his advantage to win many games of Among Us with his friends. However, whether his actions are ethical or not is a question that can be answered differently by different individuals. Among the given options, Nash would most likely argue that Simon is acting ethically when he wins many games of Among Us with his friends by using his superb lying skills.John Nash was an American mathematician who made significant contributions to game theory, a field that analyzes decision-making strategies in situations of conflict and cooperation.
Nash believed that people should make decisions based on the best interests of themselves and the group as a whole. He proposed that cooperation is the most effective strategy in situations where people need to work together to achieve a common goal.In the context of the given question, Nash would argue that Simon's lying is an acceptable strategy if it helps him achieve his goal of winning the game. Nash would say that as long as Simon's actions do not harm others, he is acting ethically. Nash would view Simon's lying as a strategy to achieve a common goal, which is winning the game. Thus, according to Nash's philosophy, Simon's actions are ethical because they help him achieve his goal without harming others.In conclusion, among the given options, Nash would most likely argue that Simon is acting ethically when he wins many games of Among Us with his friends by using his superb lying skills.
Nash believed that cooperation is the most effective strategy in situations where people need to work together to achieve a common goal. He would view Simon's lying as a strategy to achieve a common goal, which is winning the game. Thus, according to Nash's philosophy, Simon's actions are ethical because they help him achieve his goal without harming others.
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Problem 4-5 The management of Coker Corp. is doing a quick forecast of 20X9 using the modified percentage of sales method in preparation for a more detailed planning exercise later in the month. The estimate is to assume a 9% growth in sales. All other line items are to be assumed to grow at the same rate except for fixed assets which is projected to increase by $99,000 due to an expansion program already underway. Approximate financial statements for the current year, 20X8, and a planning worksheet are shown below. The firm pays 8% interest on all of its debt. Assume the tax rate is a flat 25%. There are no plans for dividends or the sale of additional stock next year. Make a forecast of Coker's complete income statement and balance sheet. Enter your answers in thousands. For example, an answer of $12 thousands should be entered as 12, not 12,000. (Hints: The easiest way to grow a number by 9% is to multiply it by 1.09 rather than taking 9% and adding. Do not grow subtotals. For example, to grow revenue and COGS by 9%, round each to the nearest thousand and subtract for gross margin. Don't grow interest, debt, or equity; use the debt/interest iteration technique.) Round your answers to the nearest whole thousand. Enter all amounts as a positive numbers. Coker Corp. Current and Projected Income Statements ($000) 20X8 20X9 Revenue $700 $ fill in the blank 1 COGS 273 fill in the blank 2 Gross Margin $427 $ fill in the blank 3 Expenses 186 fill in the blank 4 EBIT 241 fill in the blank 5 Interest (8%) 30 fill in the blank 6 EBT $211 $ fill in the blank 7 Inc Tax (25%) 53 fill in the blank 8 Net Income $158 $ fill in the blank 9 Coker Corp. Current and Projected Balance Sheets ($000) ASSETS LIABILITIES & EQUITY 20X8 20X9 20X8 20X9 C/A $157 $ fill in the blank 10 C/L $ 90 $ fill in the blank 11 F/A 507 fill in the blank 12 Debt 375 fill in the blank 13 Total $664 $ fill in the blank 14 Equity 199 fill in the blank 15 Total $664 $ fill in the blank 16
Balance Sheet: 20X9 - LIABILITIES & EQUITY C/L = $111,000 Debt = $474,000 Total L&E = $941,000
The income statement and balance sheet of Coker Corp. for the year 20X9 are as follows:
Income Statement: 20X9
Revenue = $763,000
COGS = $297,000
Gross Margin = $466,000
Expenses = $202,000
EBIT = $264,000
Interest = $30,000
EBT = $234,000
Income Tax = $58,500
Net Income = $175,500
Balance Sheet: 20X9
ASSETS C/A = $192,780
F/A = $606,570
Total = $799,350
LIABILITIES & EQUITYC/L = $110,970
Debt = $419,520
Total L&E = $799,350
Revenue in 20X9 is calculated as 9% growth in sales from 20X8.
Therefore, Revenue in 20X9 = $700,000 × 1.09
= $763,000
COGS in 20X9 = $763,000 × 0.42 ≈ $320,460
Gross Margin in 20X9 = $763,000 − $320,460
= $442,540
Expenses in 20X9 = $202,000
EBIT in 20X9 = $442,540 − $202,000
= $240,540
Interest in 20X9 is given as $30,000.
So, EBT in 20X9 = $240,540 − $30,000
= $210,540
Income Tax in 20X9 = $210,540 × 0.25
= $52,635
Net Income in 20X9 = $210,540 − $52,635
= $157,905
C/A in 20X9 = C/A in 20X8 + increase in C/A
= $157,000 + ($763,000 − $700,000) × 0.28
= $192,780
F/A in 20X9 is given as $606,570.
C/L in 20X9 = C/L in 20X8 + increase in C/L
= $90,000 + ($763,000 − $700,000) × 0.3
= $110,970
Debt in 20X9 = Debt in 20X8 + increase in Debt
= $375,000 + $99,000
= $474,000
Equity in 20X9 = Equity in 20X8 + Net Income − Dividend
= $199,000 + $157,905 − $0
= $356,905
Therefore, Total L&E in 20X9 = C/L in 20X9 + Debt in 20X9 + Equity in 20X9
= $110,970 + $474,000 + $356,905
= $941,875
Total in 20X9 = C/A in 20X9 + Total L&E in 20X9
= $192,780 + $941,875
= $1,134,655
Rounded to the nearest thousand, the above values are as follows:
Income Statement: 20X9
Revenue = $763,000
COGS = $320,000
Gross Margin = $443,000
Expenses = $202,000
EBIT = $241,000
Interest = $30,000
EBT = $211,000
Income Tax = $52,000
Net Income = $158,000
Balance Sheet: 20X9
ASSETS C/A = $193,000
F/A = $607,000
Total = $800,000
LIABILITIES & EQUITY C/L = $111,000
Debt = $474,000
Total L&E = $941,000
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Rart: Definitions: Define the following terms completely, in your own words (3 points each), 1. Competitive profit-maximizing rule 2. Natural Monopoly 3. Public Goods (define and give an example) 4. E
The competitive profit-maximizing rule is followed by firms in competitive markets to maximize profits by setting output where marginal cost equals marginal revenue.Public goods are non-excludable and non-rivalrous goods or services available to all individuals.
Competitive profit-maximizing rule: This rule is used by firms operating in a competitive market to determine the optimal level of output that maximizes their profits. According to this rule, a firm should continue to produce and sell its product until the marginal cost of production equals the marginal revenue of the product.
Natural Monopoly: A natural monopoly is a type of monopoly that arises due to the existence of significant economies of scale in production. In a natural monopoly, the cost of production decreases as the quantity produced increases, making it more efficient for a single firm to produce the entire output of the market. This results in a situation where it is not economically feasible for multiple firms to enter the market and compete, leading to a single dominant firm.
Public Goods: Public goods are goods or services that are non-excludable and non-rivalrous in consumption. This means that once they are provided, everyone can consume them without reducing their availability to others. An example of a public good is a lighthouse. Once it is built, it can be used by all ships in the area, and its use by one ship does not reduce its availability to others.
Elasticity of Demand: Elasticity of demand is a measure of how responsive the quantity demanded of a good or service is to changes in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. If the elasticity of demand is greater than one, demand is considered elastic, meaning that a small change in price will result in a large change in quantity demanded. If the elasticity of demand is less than one, demand is considered inelastic, meaning that a change in price will have a relatively small effect on the quantity demanded.
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An income statement that shows only one subtotal for total expenses is a: Group of answer choices Simplified income statement. Balanced income statement. Single-step income statement. Combined income statement. Multiple-step income statement.
The income statement that shows only one subtotal for total expenses is called a single-step income statement. In this type of income statement, all revenues are listed separately from expenses, and there is only one subtotal for total expenses.
The single-step income statement is typically simpler and easier to understand compared to other types of income statements.
To create a single-step income statement, you would list all the revenues from the business operations at the top of the statement. Then, you would list all the expenses incurred by the business, such as cost of goods sold, operating expenses, and taxes. Finally, you would subtract the total expenses from the total revenues to calculate the net income or net loss.
This type of income statement is commonly used by small businesses or organizations that have relatively simple financial operations. It provides a clear and concise view of the company's financial performance, focusing on the overall result rather than breaking it down into multiple steps or categories.
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Which of the following would represent the most appropriate definition for implied volatility? (a) It is the volatility of the underlying asset’s returns implied from the price of a traded option and an option pricing model (b) It is the volatility of the underlying asset’s returns implied from a statistical model such as GARCH (c) It is the volatility of an option price implied from a statistical model such as GARCH (d) It is the volatility of an option price implied from the underlying asset volatility
(a) It is the volatility of the underlying asset's returns implied from the price of a traded option and an option pricing model.
Implied volatility refers to the estimated volatility of the underlying asset's returns, which is derived from the price of a traded option and an option pricing model.
Option prices are influenced by various factors, including the underlying asset's price, time to expiration, interest rates, and the implied volatility. By using an option pricing model, such as the Black-Scholes model, market participants can reverse-engineer the implied volatility from the option price.
Implied volatility reflects the market's expectations and perception of the future movement in the underlying asset's price.
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Consumers who strongly feel that the distribution channel should be made as short as possible assume that fewer intermediaries means: Group of answer choices more convenience for the consumer. lower prices for consumers. higher costs for manufacturers. more product selection. higher prices for consumers.
Consumers who strongly feel that the distribution channel should be made as short as possible assume that fewer intermediaries mean lower prices for consumers. This is because the distribution chain is simplified, which results in lower prices for goods and services.
distribution channel refers to the set of intermediaries involved in the transfer of goods or services from the manufacturer to the end-user or consumer. A distribution channel begins with the manufacturer who produces the goods or services and ends with the end-user who consumes the product.
The most popular distribution channel has a long chain of intermediaries, with many individuals involved in the process of transferring goods or services from the manufacturer to the end-user. The distribution channel has a distributor, wholesalers, retailers, and other intermediaries who transport the goods or services from the manufacturer to the end-user.
Consumers who believe that distribution channels should be short assume that by reducing the number of intermediaries involved in the process, prices will decrease. This is because intermediaries are responsible for taking a portion of the price of the goods or services during each stage of the distribution process, resulting in higher prices for the end-user.
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ASSIGNMENT FIVE
Give an example of a company buying process. Explain the steps in
their right order.
channel.
The company buying process involves several steps that should be followed in the correct order. It begins with identifying the need, specifying the requirements, and then identifying potential suppliers. The next steps include sending out an RFP or RFQ, evaluating proposals, selecting a supplier, negotiating contracts, and issuing a purchase order. Once the order is fulfilled and delivered, the company inspects the received goods or services, processes the payment, and evaluates the supplier's performance.
The company buying process, also known as the procurement process, typically consists of the following steps in their right order:
1. Need Identification: The company identifies a need or requirement for a particular product or service.
2. Requisition: A formal request is made to the purchasing department or procurement team to fulfill the identified need.
3. Vendor Selection: The company evaluates potential vendors or suppliers based on factors such as price, quality, reliability, and past performance.
4. Request for Proposal (RFP): The company sends out a detailed document to shortlisted vendors, outlining its requirements and asking for their proposals.
5. Proposal Evaluation: The company reviews the received proposals and assesses them based on predefined criteria.
6. Negotiation: Negotiations take place with the chosen vendor to agree on the terms, pricing, and any additional requirements.
7. Purchase Order (PO) Creation: Once negotiations are finalized, a purchase order is created, specifying the details of the purchase, including quantity, price, and delivery terms.
8. Order Fulfillment: The vendor processes the purchase order, prepares the products or services, and delivers them to the company.
9. Receipt and Inspection: The company receives the order and inspects it to ensure it meets the specified requirements.
10. Invoice Processing and Payment: The company processes the vendor's invoice, verifies it against the purchase order and receipt, and makes the payment within the agreed terms.
11. Vendor Performance Evaluation: The company evaluates the vendor's performance based on factors such as product quality, timeliness, and customer service.
These steps ensure a systematic and organized approach to the company's buying process, leading to efficient procurement and successful business operations.
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Suppose a fridge costs R3 021,00 including VAT (value-added tax), where the rate of VAT is 14%. If the rate of VAT were 15%, then the cost of the fridge, including VAT, would be Select one: a. R3058,10 b. R3 051,21 c. R3047,50 d. R2987,77
The rate of VAT were 15%, the cost of the fridge, including VAT, would be R3,047.50.The correct answer is c. R3,047.50.
to calculate the cost of the fridge, including VAT, when the rate of VAT is 15%, we can follow these steps:
1. Determine the cost of the fridge excluding VAT:
- Given that the cost of the fridge including VAT is R3,021.00 and the VAT rate is 14%, we can calculate the cost excluding VAT by dividing the total cost by (1 + VAT rate):
R3,021.00 / (1 + 0.14) = R2,650.00
2. Calculate the VAT amount:
- The VAT amount can be found by subtracting the cost excluding VAT from the total cost:
R3,021.00 - R2,650.00 = R371.00
3. Calculate the cost of the fridge including VAT at a 15% rate:
- To find the cost including VAT at a 15% rate, we add the VAT amount to the cost excluding VAT:
R2,650.00 + (R2,650.00 * 0.15) = R2,650.00 + R397.50 = R3,047.50
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11.2 Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays interest annually.
a. Determine the current value of the bond if present market conditions justify a 14 percent required rate of return.
b. Now, suppose Twin Oaks’s four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required rate of return. However, the actual rate would be slightly less than 7 percent because a semiannual coupon bond is slightly less risky than an annual coupon bond.)
c. Assume that Twin Oaks’s bond had a semiannual coupon but 20 years remaining to maturity. What would be the current value under these conditions? (Again, assume a 7 percent semiannual required rate of return, although the actual rate would probably be greater than 7 percent because of increased price risk.)
a. The current value of the bond is $721.22 if present market conditions justify a 14 percent required rate of return.
b. The current value of the bond is $747.26 with 7 percent semiannual required rate of return
c. The current value of the bond is $1,129.62 if Twin Oaks’s bond had a semiannual coupon but 20 years remaining to maturity.
a. If the present market conditions justify a 14% required rate of return, the current value of the bond would be calculated using the following formula:
PMT = (7/100) x $1,000 = $70 (annual coupon payment)
N = 4 (number of years to maturity)
I/Y = 14/1 = 14% (required rate of return)
FV = $1,000 (par value of the bond)
To find the current value (PV) of the bond, input the above values into the present value of an ordinary annuity formula:
PMT [ 1 - (1 / (1 + i)n) ] / i + FV / (1 + i)n= PV$70 [ 1 - (1 / (1 + 0.14)4) ] / 0.14 + $1,000 / (1 + 0.14)4= $721.22.
Therefore, the current value of the bond is $721.22.
b. If Twin Oaks's four-year bond had semiannual coupon payments, the current value of the bond would be calculated using the following formula:
Annual coupon payment = $70 / 2 = $35
Semi-annual required rate of return = 7% / 2 = 3.5%
Number of periods = 4 x 2 = 8
PMT = $35N = 8I/Y = 3.5FV = $1,000
To find the current value (PV) of the bond, input the above values into the present value of an ordinary annuity formula:
PMT [ 1 - (1 / (1 + i)n) ] / i + FV / (1 + i)n= PV$35 [ 1 - (1 / (1 + 0.035)8) ] / 0.035 + $1,000 / (1 + 0.035)8= $747.26
Therefore, the current value of the bond is $747.26 if Twin Oaks’s four-year bond had semiannual coupon payments.
c. If Twin Oaks's bond had a semiannual coupon but 20 years remaining to maturity, the current value of the bond would be calculated using the following formula:
PMT = $35N = 20 x 2 = 40I/Y = 7% / 2 = 3.5%
FV = $1,000
To find the current value (PV) of the bond, input the above values into the present value of an ordinary annuity formula:
PMT [ 1 - (1 / (1 + i)n) ] / i + FV / (1 + i)n= PV$35 [ 1 - (1 / (1 + 0.035)40) ] / 0.035 + $1,000 / (1 + 0.035)40= $1,129.62
Therefore, the current value of the bond is $1,129.62 if Twin Oaks’s bond had a semiannual coupon but 20 years remaining to maturity.
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You are evaluating two different silicon wafer milling machines. The Techron | costs $265,000, has a three-year life, and has pretax operating costs of $74,000 per year. The Techron Il costs $445,000, has a five-year life, and has pretax operating costs of $47,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $35,000. If your tax rate is 22 percent and your discount rate is 10 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Techron I
Techron II
Which do you prefer?
O Techron II
O Techron l
As the EAC of Techron I is $458,068.38 and that of Techron II is $572,289.36. Hence, we prefer Techron I.
Evaluation of Techron I and Techron II silicon wafer milling machines:
Let us first calculate the depreciation:
Depreciation of Techron I
= ($265,000 - $35,000) / 3
= $76,667
Depreciation of Techron II
= ($445,000 - $35,000) / 5
= $82,000.
As we know, the EAC formula can be computed as follows:
EAC = Annual cost * Annuity factor
Annuity factor for Techron I can be computed as follows:
i = 10%,
n = 3 years,
annuity factor = 2.48685
Annual cost of Techron I = Depreciation + Operating cost + Taxes
Depreciation = $76,667
Operating cost = $74,000
Taxes = 0.22 * ($76,667 + $74,000)
= $33,397
Annual cost of Techron I = $76,667 + $74,000 + $33,397
= $184,064
EAC of Techron I = $184,064 * 2.48685
= $458,068.38
Annuity factor for Techron II can be computed as follows:
i = 10%,
n = 5 years,
annuity factor = 3.79079
Annual cost of Techron II = Depreciation + Operating cost + Taxes
Depreciation = $82,000
Operating cost = $47,000
Taxes = 0.22 * ($82,000 + $47,000)
= $21,780
Annual cost of Techron II = $82,000 + $47,000 + $21,780 = $150,780
EAC of Techron II = $150,780 * 3.79079
= $572,289.36
To prefer between Techron I and Techron II, we can look at their EAC values:
We should choose the machine that has the lower EAC value.
From our calculation, we can see that the EAC of Techron I is $458,068.38 and that of Techron II is $572,289.36. Hence, we prefer Techron I.
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Ben earns $4,000 this year and zero income next year. Ben also has an investment opportunity in which he can invest $2,000 and receive $3,000 next year. Suppose Ben consumes $1,000 this year, invests in the project and consumes $4,150 next year. a) What is the market rate of interest? b) Suppose the interest rate increases. What will happen to Ben's consumption next year? Is Ben better off or worse off than before the interest rate rise? Explain with a carefully labeled inter-temporal consumption diagram.
Market rate of interest = ($3,000 - $2,000) / $2,000 = $1,000 / $2,000 = 0.5
Ben will be worse off than before the interest rate rise because his consumption next year will be lower.
a) To calculate the market rate of interest, we can use the formula:
Market rate of interest = (Future value - Present value) / Present value
In this case, the future value is $3,000 and the present value is $2,000.
Plugging these values into the formula, we get:
Market rate of interest = ($3,000 - $2,000) / $2,000 = $1,000 / $2,000 = 0.5
So, the market rate of interest is 0.5 or 50%.
b) If the interest rate increases, it means that the market rate of interest will be higher than 50%. This will affect Ben's consumption next year.
To understand the effect, let's look at the inter-temporal consumption diagram. On the horizontal axis, we have the present year and the future year, and on the vertical axis, we have the consumption level.
Before the interest rate rise, Ben's consumption next year was $4,150. With the interest rate rise, Ben's consumption next year will decrease. This is because the higher interest rate reduces the future value of his investment.
Ben will be worse off than before the interest rate rise because his consumption next year will be lower.
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The change in the milk's price is how many times as large as the original price? (Recall that the old price was $2.79 and the new price is $3.54.) * times as large Preview 0.78 Submit Question 3. Points possible: 1 Unlimited attempts. Score on last attempt: 0. Score in gradebook: 0 Message instructor about this question Post this question to forum 100 When we report this value as a percentage, recall that we change the unit ruler to be times as large. Score on last attempt: Score in gradebook: 0 out of 2 0 out of 2 75 Recall that the old price was $2.79 and the new price is $3.54. a. The change in the milk's price is what percent of the old price? 0.78 0.78. % Preview b. Therefore, we say that the milk's price changed by License times as large, which makes the measurement value 100 *%. Preview
The change in the milk's price is approximately 0.268 times as large as the original price, or 26.8% of the original price.
The change in the milk's price can be calculated by subtracting the original price from the new price. In this case, the change is $3.54 - $2.79 = $0.75. To determine how many times as large the change is compared to the original price, we divide the change by the original price: $0.75 / $2.79 ≈ 0.268.
To express this value as a percentage, we multiply it by 100: 0.268 * 100 = 26.8%. Therefore, the change in the milk's price is 26.8% of the original price.
As for the statement "The change in the milk's price is how many times as large as the original price?", the answer is not directly provided in the given information. However, we can say that the change is approximately 0.268 times as large as the original price based on the calculations above.
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XYZ Corp. currently has $45 million in excess cash that it plans on returning to its shareholders through a share repurchase. XYZ's current share price is $15.8 and it currently has 21.5 million shares outstanding. In addition, the market value of the company's debt is $10 million. Assuming perfect markets, what will XYZ's share price be after it uses the excess cash to repurchase shares? Round your answer to two decimals (don't include the $-symbol in your answer).
XYZ Corp.'s share price after using the excess cash to repurchase shares will be $18.60.
To calculate the new share price after the share repurchase, we need to consider the change in the number of shares outstanding and the change in the market value of the company.
1. Calculate the market value of the company before the share repurchase:
Market Value = Share Price * Shares Outstanding = $15.8 * 21.5 million = $339.70 million
2. Deduct the excess cash of $45 million from the market value:
New Market Value = Market Value - Excess Cash = $339.70 million - $45 million = $294.70 million
3. Calculate the new number of shares outstanding after the repurchase:
New Shares Outstanding = Shares Outstanding - (Excess Cash / Share Price) = 21.5 million - (45 million / $15.8) = 18.73 million
4. Calculate the new share price:
New Share Price = New Market Value / New Shares Outstanding = $294.70 million / 18.73 million ≈ $18.60
Therefore, after using the excess cash to repurchase shares, XYZ Corp.'s share price is expected to be approximately $18.60.
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