Variance of market excess return = 1.8503 .
In a regression of the single-index model, we can use the formula for R-square to find the variance of the market excess return.
The formula for R-square is:
R-square = (beta^2 * variance of market excess return) / (beta^2 * variance of market excess return + residual variance)
Given that R-square = 68%, beta = 0.7, and residual variance = 0.08, we can plug in these values and solve for the variance of market excess return:
0.68 = (0.7^2 * variance of market excess return) / (0.7^2 * variance of market excess return + 0.08)
0.68 * (0.7^2 * variance of market excess return + 0.08) = 0.7^2 * variance of market excess return
0.68 * 0.7^2 * variance of market excess return + 0.68 * 0.08 = 0.7^2 * variance of market excess return
0.68 * 0.08 = 0.7^2 * variance of market excess return - 0.68 * 0.7^2 * variance of market excess return
0.0544 = 0.0294 * variance of market excess return
Variance of market excess return = 0.0544 / 0.0294
Variance of market excess return = 1.8503
Therefore, the variance of the market excess return is 1.8503 (rounded to 4 decimal places).
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2. Define, contrast, and explain in detail, the advantages of open and targeted recruitment.
3. Explain and identify in detail, at least four (4) strategies that organizations are or should be used to ensure that they attract women and under-represented racial and ethnic groups.
2. Open recruitment is the process of advertising a job opening to the general public and inviting anyone who is interested to apply. This method is typically used when there is a large number of job openings or when the employer is seeking a diverse pool of applicants. The advantage of open recruitment is that it can attract a large number of applicants from a wide range of backgrounds and experiences, increasing the chances of finding the best candidate for the job.
Targeted recruitment, on the other hand, involves identifying and reaching out to specific groups of people who have the desired qualifications and experience for the job. This method is typically used when the employer is seeking a specific skill set or demographic. The advantage of targeted recruitment is that it can yield a more qualified pool of applicants and can be more efficient and cost-effective than open recruitment.
3. Organizations can use a variety of strategies to attract women and under-represented racial and ethnic groups, including:
Creating an inclusive workplace culture: Organizations can foster a culture of diversity and inclusion by providing diversity training, promoting inclusive language and behaviors, and creating employee resource groups for under-represented groups.Partnering with organizations that support diversity: Organizations can partner with professional associations and community organizations that support women and under-represented groups to reach out to potential job candidates.Providing flexible work options: Organizations can offer flexible work schedules, telecommuting options, and other work-life balance initiatives to attract and retain diverse employees.Implementing diversity recruitment goals: Organizations can set specific goals for recruiting and hiring women and under-represented groups and hold managers accountable for meeting these goals.Know more about recruitment here:
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Q2. X Ltd. manufactures plastic products and sells them for SAR 350 per unit. The firm's variable cost per unit is SAR 90, while its total fixed costs are SAR 110,000. The company expects to sell 1,800 units in the coming year. Calculate the following:
a. Degree of operating leverage
b. Margin of safety in units
c. Margin of safety in SAR value
d. Margin of safety in percentage
X Ltd. manufactures plastic products and sells them for SAR 350 per unit. The firm's variable cost per unit is SAR 90, while its total fixed costs are SAR 110,000. The company expects to sell 1,800 units in the coming year.
a. Degree of operating leverage: Operating leverage is calculated by dividing the total fixed costs (SAR 110,000) by the total contribution margin (SAR 1,080,000). The degree of operating leverage = 110,000 / 1,080,000 = 10.19
b. Margin of safety in units: Margin of safety in units is calculated by subtracting the expected number of units to be sold (1,800) from the break-even number of units (2,250). The margin of safety in units = 2,250 - 1,800 = 450 units.
c. Margin of safety in SAR value: Margin of safety in SAR value is calculated by multiplying the margin of safety in units (450 units) by the selling price per unit (SAR 350). The margin of safety in SAR value = 450 x 350 = SAR 157,500.
d. Margin of safety in percentage: Margin of safety in percentage is calculated by dividing the margin of safety in SAR value (SAR 157,500) by the expected sales in SAR value (SAR 630,000). The margin of safety in percentage = 157,500 / 630,000 = 24.88%.
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How do you manage resistance to change in an organization?
Managing resistance to change in an organization can be a difficult task, but there are several strategies that can be employed to address this issue like Communication,Participation,Support,Flexibility.
1. Communication: It is important to communicate the reasons for the change and the benefits it will bring to the organization and its employees. This can help alleviate fears and concerns that employees may have about the change.
2. Participation: Involve employees in the decision-making process and allow them to provide input on the change. This can help to create a sense of ownership and buy-in among employees.
3. Support: Provide employees with the necessary resources and support to adapt to the change. This may include training, counseling, or mentoring.
4. Flexibility: Be open to making adjustments to the change plan based on employee feedback and concerns. This can help to address any unforeseen issues and create a smoother transition.
By using these strategies, organizations can effectively manage resistance to change and create a more positive and successful transition.
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A firm has current liabilities of $30.6 million. Cash is $13.52 million and accounts receivable is $7.46 million. The firm's current ratio = 0.89 times. What is the value of inventory listed on the firm's balance sheet?
The value of inventory listed on the firm's balance sheet is $6.254 million.
The value of inventory listed on the firm's balance sheet can be calculated using the formula for the current ratio. The current ratio is the ratio of current assets to current liabilities, and is calculated as follows: Current ratio = Current assets / Current liabilities. In this case, the firm's current ratio is 0.89 times, and its current liabilities are $30.6 million. We can rearrange the formula to solve for current assets: Current assets = Current ratio × Current liabilities Current assets = 0.89 × $30.6 million = $27.234 million. The firm's current assets include cash, accounts receivable, and inventory. We are given the values of cash ($13.52 million) and accounts receivable ($7.46 million), so we can calculate the value of inventory by subtracting these values from the total current assets: Inventory = Current assets - Cash - Accounts receivable Inventory = $27.234 million - $13.52 million - $7.46 million = $6.254 million.
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Give examples of three marketing roles assigned to personnel in an organisation. Briefly explain what marketing tasks and responsibilities are attached to each role.
Marketing plays a crucial role in the success of an organisation, and there are several marketing roles assigned to personnel in an organisation. Here are three examples of marketing roles and their associated tasks and responsibilities:
1. Marketing Manager: The Marketing Manager is responsible for developing and executing the organisation's overall marketing strategy. This includes conducting market research, identifying target markets, setting pricing strategies, developing marketing plans, and overseeing the implementation of marketing campaigns. The Marketing Manager also oversees the work of other marketing personnel and is responsible for ensuring that the organisation's marketing goals are met.
2. Marketing Communications Specialist: The Marketing Communications Specialist is responsible for creating and disseminating marketing materials, such as advertisements, press releases, and social media posts. This role involves working closely with the Marketing Manager to develop the organisation's messaging and branding, and ensuring that all marketing communications are consistent and effective.
3. Market Research Analyst: The Market Research Analyst is responsible for collecting and analysing data on customer preferences, buying habits, and market trends. This information is used to inform the organisation's marketing strategy and help identify new opportunities for growth. The Market Research Analyst is also responsible for monitoring the performance of marketing campaigns and making recommendations for improvements.
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Futures contracts are ideal for hedging exchange rate risk in
covered interest arbitrage because they are customizable.
True
False
Futures contracts are ideal for hedging exchange rate risk in covered interest arbitrage because they are customizable. The given statement is False.
Futures contracts are not ideal for hedging exchange rate risk in covered interest arbitrage because they are not customizable. Futures contracts are standardized contracts that are traded on an exchange and have specific delivery dates, quantities, and prices. These standardized features make them less flexible than other financial instruments, such as forward contracts, which are customizable and can be tailored to the specific needs of the parties involved. Therefore, forward contracts are a better option for hedging exchange rate risk in covered interest arbitrage.
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Assume all rates are annualized with semi-annual compounding. Please be explicit about how
you derive your results and round to four decimals after the comma.
The 0.5-year zero rate is 7% and the 1-year zero rate is 9%.
What is the dollar duration of:
i. $1 par of a 0.5-year zero?
ii. $1 par of a 1-year zero?
iii. 100 par of a 1-year 10%-coupon bond?
The dollar durations are -0.2449, -0.4799, and -50.4395 for $1 par of a 0.5-year zero, $1 par of a 1-year zero and 100 par of a 1-year 10%-coupon bond, respectively.
The dollar duration of a bond is a measure of how much the value of the bond will change for a given change in interest rates. It is calculated by taking the derivative of the bond's price with respect to the interest rate and multiplying by the bond's face value.
i. For a $1 par of a 0.5-year zero, the dollar duration is calculated as follows:
Dollar duration = (dP/dy) * F
= (-0.5 * 1) / (1 + 0.07/2)^2 * 1
= -0.2449
ii. For a $1 par of a 1-year zero, the dollar duration is calculated as follows:
Dollar duration = (dP/dy) * F
= (-1 * 1) / (1 + 0.09/2)^2 * 1
= -0.4799
iii. For 100 par of a 1-year 10%-coupon bond, the dollar duration is calculated as follows:
Dollar duration = (dP/dy) * F
= [(-1 * 100) / (1 + 0.09/2)^2] + [(-0.5 * 10) / (1 + 0.09/2)] * 100
= -47.99 + -2.4495
= -50.4395
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What is a good approach to "Sell me this pen!"?What is a good conversation flow? Why?Write the structure and the questions
An effective approach to "Sell me this pen!" would involve understanding the customer's needs and motivations. Start by asking the customer questions to determine their needs and why they might be interested in the pen.
Some potential questions could include:
- What do you typically use pens for?
- What features are you looking for in a pen?
- What budget do you have in mind for a pen?
once you understand the customer's needs and motivations, you can tailor your conversation and sales pitch to fit their needs. Explain the features and benefits of the pen, and why it's a great choice for them. Make sure to emphasize the benefits that address their needs and give clear examples if possible.
Once you've presented the pen and given the customer all the information they need to make an informed decision, end with a simple call to action, such as asking them to purchase the pen or inviting them to try it out.
By asking the right questions and tailoring your conversation to the customer's needs, you can create an effective conversation flow that is sure to result in a successful sale.
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This week, our focus is on capability development and organizational structure as they apply to strategy implementation. For this critical thinking assignment, read Chapter 6, "Organizational Structure and Management Systems: The Fundamentals of Strategy Implementation" and evaluate a KSA company and their processes of strategy execution.
How does the strategy developed in the strategic planning processes translate into action for this company? Consider the role of capital expenditure budgets, operating plans, and performance management systems.
What role do resources, processes, motivation, play in strategy execution in this company and what stands in the way?
How does this company’s structure and management system promote the effective implementation of the company’s strategy?
What specific organizational capability should the company develop to support implementation?
The strategy developed in the strategic planning process translates into action for this company by focusing on capital expenditure budgets, operating plans, and performance management systems. These elements work together to guide the company in achieving its goals.
Resources, processes, and motivation are all essential components of strategy execution. Resources provide the necessary inputs to complete tasks while processes are the steps that need to be followed. Motivation serves as the driving force behind getting things done. Potential obstacles to strategy execution could include lack of resources, insufficient planning, and/or inadequate motivation.
The company's structure and management system should promote effective implementation of the strategy by providing a clear framework for how the strategy should be executed. This includes providing direction for how the resources should be used, what processes should be followed, and how performance should be monitored and evaluated.
Specific organizational capabilities that should be developed include ensuring the resources are used effectively, implementing the processes, and providing proper motivation and feedback to employees.
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During a workforce planning session, hr identifies that within 5 years, 25% of the workforce will be nearing retirement age. The organization wants to ensure that there is steady recruitment of a new generation. Which activity during the benefits needs assessment is most relevant to the recruitment strategy?
Explanation:
Meaning of natural resources
Explain why a text-oriented religion could be more appealing than an ritual-oriented religion.
A text-oriented religion is one that emphasizes the importance of sacred texts and religious writings as the primary source of religious authority and guidance. One reason why a text-oriented religion could be more appealing is that it allows for a more personal and individualized religious experience.
With a text-oriented religion, individuals can read and interpret religious texts on their own, and develop their own understanding of religious teachings. This can provide a sense of personal connection and empowerment, as individuals are able to shape their own religious beliefs and practices.
Another reason why a text-oriented religion may be more appealing is that it can be more accessible and convenient for believers. Religious texts can be easily read and studied at any time and in any place, without the need for special rituals or ceremonies.
This can make it easier for individuals to incorporate religious practices into their daily lives, and to maintain their religious beliefs even when they are unable to participate in religious rituals or ceremonies.
Overall, a text-oriented religion can be more appealing because it offers a more personal, individualized, and accessible religious experience for believers.
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which of these is not illegal to hold against someone applying for a job within your company? a. for revealing his plan to pray for half the daily lunch break b. no fork lift certification, but applying to operate a fork lift c. being qualified in every way except having deafness in one ear d. when she tells you that she just learned she is pregnant
Part 2: Problem Solving A financial services provider that provides computer software systems approaches you. The company started off as a small private company and has grown strongly over the past fifteen years and listed on the Australian Stock Exchange. The company has businesses in many offshore locations, all of which are well-developed capital markets. In some parts of the world, the company has near-monopoly markets. As part of its strategy, the company uses acquisitions rather than growth to continue to expand the business. While the business is software based, it relies on continued activity in the financial markets. The company has had the same management over the past fifteen years and the senior management team are shareholders in the company. The company is rated BBB and its bonds are trading at 3.3 per cent above the comparable government bond rate (5%). These rates are for a 1-year period. Page 1 of 5 The condensed financial accounts are as follows: $M Total current assets 66.3 Total fixed assets 1,005.4 Total assets 1,071.7 Total current liabilities 197.3 Total noncurrent liabilities 243.7 Total liabilities 441.0 Shareholders' equity 546.7 Retained earnings 84.0 Total Equity 630.7 Total liabilities and equity 1,071.7 Earnings before interest and tax are $151,608,000 on sales of $742,613,000. The firm is requesting a loan of $150 million to assist further acquisitions. Ratio industry averages: 1. Current ratio = 3 2. 3. Inventory turnover ratio = 6 Net profit to sales ratio = 0.15 Debt to Equity ratio = 0.4 4. 3. Using Altman Z score, what is the indication of credit risk?
According to the Altman Z score model, a score above 2.99 indicates that the company is in the "safe" zone and has a low risk of bankruptcy. Therefore, the indication of credit risk for this company is low.
The Altman Z score is a credit risk measure that was developed by Edward Altman in the 1960s. It is used to predict the likelihood of a company going bankrupt. The Z score is calculated using a combination of five different financial ratios, which are weighted according to their importance in predicting bankruptcy. The five ratios are:
1. Working capital to total assets
2. Retained earnings to total assets
3. Earnings before interest and taxes to total assets
4. Market value of equity to book value of total liabilities
5. Sales to total assets
The Altman Z score formula is as follows:
Z = 1.2A + 1.4B + 3.3C + 0.6D + 0.999E
Where:
A = Working capital / Total assets
B = Retained earnings / Total assets
C = Earnings before interest and taxes / Total assets
D = Market value of equity / Book value of total liabilities
E = Sales / Total assets
Using the financial information provided, we can calculate the Altman Z score for the company:
A = 66.3 / 1,071.7 = 0.0618
B = 84.0 / 1,071.7 = 0.0784
C = 151.608 / 1,071.7 = 0.1415
D = 630.7 / 441.0 = 1.4302
E = 742.613 / 1,071.7 = 0.6927
Z = 1.2(0.0618) + 1.4(0.0784) + 3.3(0.1415) + 0.6(1.4302) + 0.999(0.6927) = 3.3881
The Altman Z score for the company is 3.3881. According to the Altman Z score model, a score above 2.99 indicates that the company is in the "safe" zone and has a low risk of bankruptcy. Therefore, the indication of credit risk for this company is low.
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The following transactions were completed by the company.
The company completed consulting work for a client and immediately collected $6,600 cash earned.
The company completed commission work for a client and sent a bill for $5,100 to be received within 30 days.
The company paid an assistant $1,950 cash as wages for the period.
The company collected $2,550 cash as a partial payment for the amount owed by the client in transaction b. The company paid $920 cash for this period's cleaning services.
Assets = Liabilities + Equity
Cash + Accounts Receivable = Accounts Payable + Common Stock − Dividends + Revenue − Expenses
a. + = + − + − b. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0
c. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0
d. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0
e. + = + − + − Bal. 0 + 0 = 0 + 0 − 0 + 0 − 0
The business got $6,600 in cash for finished consulting work, submitted a bill for $5,100 in commission work, paid $1,950 in compensation, received a partial payment of $2,550, and paid $920 for cleaning services.
According to the recorded transactions, the business was paid $6,600 in cash for rendering consultancy services to a client. The company's cash position was enhanced by the payment for the consultancy job. In addition, the business sent a client a charge for $5,100 for commission services, which will raise accounts receivable until payment is made. The company's cash balance was reduced by $1,950 because of a payment made to an assistant. Also, the business received a $2,550 partial payment from the client for the unpaid balance, raising its cash on hand. Last but not least, the business spent $920 in cash for cleaning services, reducing its cash on hand.
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1) New Company reported Operating cash flow to Current Liabilities ratios of 2.82 in 2018 and 3.04 in 2017. Which of the following statements are incorrect?
Group of answer choices
a. New Company had $2.82 in current liabilities for every $ of cash flow from operations in 2018.
b. New Company's ability to meet its current liabilities deteriorated in 2018.
c. New Company is less liquid in 2018.
2) During 2020, J Company reported an Operating Funds Ratio of 1.6, and P Company reported an Operating Funds Ratio of 1.097. What does this ratio communicate? Indicate all answers that are correct.
Group of answer choices
a. P Company is generating more operating cash flows.
b. J Compnay is doing a better job of converting its earnings into cash flows.
c. P Company is doing a better job of converting its earnings into cash flows.
d. J Company is generating more operating cash flow.
3) In its most recent 10-K, Ambassador Inc. reported the following (in millions):
Total liabilities
$8,172.0
Total stockholders' equity
$4,815.6
The percentage of Ambassador's total assets financed by owner sources is closest to:
Group of answer choices
a. 62.9%.
b. 41.1%.
c. 37.1%.
1) New company reported operating cash flow to current liabilities ratios of 2.82 in 2018 and 3.04 in 2017, hence incorrect statement is new company had $2.82 in current liabilities for every $ of cash flow from operations in 2018 (Option a). 2) An operating funds ratio of 1.097 communicates that J company is doing a better job of converting its earnings into cash flows (Option b). 3) The percentage of Ambassador's total assets financed by owner sources is closest to 41.1% (Option b).
1) The incorrect statement is a. New Company had $2.82 in current liabilities for every $ of cash flow from operations in 2018. This statement is incorrect because the operating cash flow to current liabilities ratio actually means that new company had $2.82 in operating cash flow for every $1 of current liabilities in 2018.
2) The correct answer is b. J Company is doing a better job of converting its earnings into cash flows and d. J Company is generating more operating cash flow. The operating funds ratio measures a company's ability to generate cash flow from operations relative to its liabilities. A higher ratio indicates that the company is generating more operating cash flow and is better able to meet its liabilities.
Therefore, J Company, with a higher operating funds ratio, is doing a better job of converting its earnings into cash flows and is generating more operating cash flow than P Company.
3) The correct answer is b. 41.1%. The percentage of Ambassador's total assets financed by owner sources can be calculated by dividing total stockholders' equity by total assets (total liabilities + total stockholders' equity). This gives us:
Total stockholders' equity / Total assets = $4,815.6 / ($8,172.0 + $4,815.6) = 0.411 or 41.1%
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A four-year default-free annual-pay coupon bond is priced at 100 percent of par. What is its coupon (in percent of par) if annual spot rates are as follows:
r1 = 1.83%, r2 = 2.24%, r3 = 2.38%, r4 = 2.47%
Carry intermediate calcs. to four decimals. Answer to two decimals.
The coupon rate (in percent of par) of the four-year default-free annual-pay coupon bond is 0.09191168, which when rounded to two decimal places is 0.09.
four-year default-free annual-pay coupon bond is priced at 100% of par. In order to calculate the coupon rate of the bond, we can use the following formula:
Coupon rate = (1 + r1) x (1 + r2) x (1 + r3) x (1 + r4) - 1
Where r1, r2, r3, and r4 are the annual spot rates.
Carrying out the calculation, we get:
Coupon rate = (1.0183) x (1.0224) x (1.0238) x (1.0247) - 1
= (1.09191168) - 1
= 0.09191168
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1.The company cost of capital is the appropriate discount rate for a firm's ______
A. Value
B. Average-risk projects
C. High-risk projects
D. Estimated-risk projects
2. The appropriate hurdle rate for capital budgeting decisions is ______ A Degree of operating leverage
B Real Options
C Relative rate
D The opportunity cost of capital
3. Each project should be evaluated at its own opportunity cost of capital. The true cost of capital depends on the use to which the capital is put. A True
B False
4. The company's cost of capital is the cost of debt of the firm. A True
B False
5. It is generally more accurate to estimate an "industry beta" for a portfolio of companies in the same industry than to estimate beta for a single company in that industry. A. True
B. False
1. The correct answer is B - Medium risk project.
A firm's cost of capital is a good discount rate for medium-risk projects because it reflects the overall risk of a firm's existing assets and operations.
2. The correct answer is D - It is the opportunity cost of capital.
A reasonable hurdle to capital budgeting decisions is the opportunity cost of capital. H. Returns obtained on investments with similar risk.
3. The correct answer is A - truth.
Since the true cost of capital depends on the use of capital, each project should be evaluated at its own cost of opportunity capital. Different projects have different levels of risk and therefore different opportunity costs of capital.
4. The correct answer is B - Incorrect.
A company's cost of capital includes not only the cost of borrowing, but also the cost of equity capital. Total cost of capital is the weighted average of cost of debt and cost of capital.
5. The correct answer is A - truth.
Estimating the "industry beta" for a portfolio of companies in the same industry is generally more accurate than estimating the beta for individual companies in that industry. This is because the industry-wide beta reflects the average risk of the industry. to the specific risks of individual companies.
The cost of capital is an important metric for companies because it helps them determine whether or not a particular investment is worth pursuing. If the expected rate of return on an investment is less than the company's cost of capital, the investment is unlikely to be profitable and should be avoided.
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Instructions: Answer the following questions. Provide all your computations.Company ARL provides the following information on December 31, Year 1.Equipment Cost $100,000Purchases date January 1, Year 1Residual Value $0Useful Life 5 yearsFair Value at end of first year $84,000.At December 31, Year 3 the market value of the asset is $30,000.Requires: Using Revaluation Model of IAS 16 Proportional Method and Elimination Method to determine:1. Determine the new depreciation expense. (Year 2 and Year 3)
The new depreciation expense for Year 2 and Year 3 is $21,000 each. The expense for Year 2 and Year 3 is $16,000 each.
The revaluation model of IAS 16 allows for an asset to be revalued at fair value at the end of each reporting period. This means that the carrying amount of the asset is adjusted to reflect its current fair value.
Using the Proportional Method:
1. Calculate the new carrying amount of the asset at the end of Year 1.
Carrying amount at end of Year 1 = Fair value at end of Year 1 - Accumulated depreciation
= $84,000 - ($100,000 / 5) * 1
= $84,000 - $20,000
= $64,000
2. Calculate the new depreciation expense for Year 2 and Year 3.
New depreciation expense = (New carrying amount - Residual value) / Remaining useful life
= ($64,000 - $0) / 4
= $16,000
Therefore, the new depreciation expense for Year 2 and Year 3 is $16,000 each.
Using the Elimination Method:
1. Calculate the new carrying amount of the asset at the end of Year 1.
Carrying amount at end of Year 1 = Fair value at end of Year 1
= $84,000
2. Calculate the new depreciation expense for Year 2 and Year 3.
New depreciation expense = (New carrying amount - Residual value) / Remaining useful life
= ($84,000 - $0) / 4
= $21,000
Therefore, the new depreciation expense for Year 2 and Year 3 is $21,000 each.
In conclusion, using the Proportional Method, the new depreciation expense for Year 2 and Year 3 is $16,000 each. Using the Elimination Method, the new depreciation expense for Year 2 and Year 3 is $21,000 each.
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5TH GRADE
What are your career goals?
(PLEASE HELP ME I NEED EXAMPLES)
question 1
If you deposit $2,000 in a bank account that pays 4% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.
Explanation:
The formula to calculate the future value of a present sum of money with compound interest is:
FV = PV x (1 + r)n
Where: FV = Future Value PV = Present Value r = Interest Rate per Period n = Number of Periods
In this case, the present value (PV) is $2,000, the interest rate (r) is 4% or 0.04 per year, and the number of periods (n) is 5 years. Therefore, we can calculate the future value (FV) as follows:
FV = $2,000 x (1 + 0.04)5 FV = $2,000 x 1.21665 FV = $2,433.30
Therefore, after 5 years, the amount in the account will be $2,433.30 (rounded to the nearest cent).
Assignment Question(s): (Marks 10) Q1. Examine with suitable examples, how"organization strategy provides a valuable contribution in achieving organization vision?" Give an example of a Saudi company and assess two examples of organizational strategies and operating plans. (2 Marks) Answer: Q2. X Ltd. manufactures plastic products and sells them for SAR 350 per unit. The firm's variable cost per unit is SAR 90, while its total fixed costs are SAR 110,000. The company expects to sell 1,800 units in the coming year. Calculate the following: (2 Marks) a) Degree of operating leverage b) Margin of safety in units c) Margin of safety in SAR value d) Margin of safety in percentage Answer: Q3. What is regression analysis and how does it help in estimating a cost function? Interpret your results with a numerical example. (2 Marks) Answer:
Organization strategy plays a crucial role in achieving an organization's vision by providing a roadmap for achieving the desired goals.
Q1. A well-defined strategy helps in aligning the company's resources and efforts in the right direction to achieve the vision. For example, a Saudi company, Saudi Aramco, has a vision to be the world's leading integrated energy and chemicals company. To achieve this vision, the company has adopted two organizational strategies - expanding its downstream business and investing in renewable energy. These strategies provide a valuable contribution in achieving the company's vision by diversifying its business and reducing its dependence on oil.
Q2. a) Degree of operating leverage = Contribution margin / Operating income = (350-90)/[(350*1800)-(90*1800)-110000] = 260/520000 = 0.0005
b) Margin of safety in units = Expected sales - Break-even sales = 1800 - (110000/260) = 1800 - 423.08 = 1376.92 units
c) Margin of safety in SAR value = Margin of safety in units * Selling price = 1376.92 * 350 = SAR 481922
d) Margin of safety in percentage = (Margin of safety in units / Expected sales) * 100 = (1376.92/1800) * 100 = 76.49%
Q3. Regression analysis is a statistical technique used to estimate the relationship between two or more variables. In cost accounting, regression analysis is used to estimate a cost function by analyzing the relationship between cost and activity level. The cost function can be used to predict the cost at different levels of activity. For example, if we have data on the cost of production and the number of units produced for a particular product, we can use regression analysis to estimate the fixed cost and variable cost per unit. The estimated cost function can be used to predict the cost at different levels of production.
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Please help me with this question According to Health care marketing 5th edition. You make $6000.00 per month. After taxes, you bring home $4500. Based on the reading chapter 'The environment on marketing strategy chapter 3, and 'buyer behavior' chapter 4. Give three examples of Disposable income and three of discretionary income. Tell me your rationale behind your category choices.
According to Health care marketing 5th edition, disposable income is the amount of money that is left after paying taxes and necessary expenses. Discretionary income, on the other hand, is the amount of money that is left after paying for taxes, necessary expenses, and savings.
Three examples of disposable income are:
1. Rent or mortgage payments: These are necessary expenses that must be paid in order to have a place to live.
2. Utility bills: These are necessary expenses that must be paid in order to have access to electricity, water, and other utilities.
3. Groceries: These are necessary expenses that must be paid in order to have food to eat.
Three examples of discretionary income are:
1. Entertainment: This includes expenses such as going to the movies, concerts, or other forms of entertainment.
2. Travel: This includes expenses such as vacations or weekend trips.
3. Shopping: This includes expenses such as buying clothes, accessories, or other items that are not necessary for survival.
The rationale behind these category choices is that disposable income is used for necessary expenses, while discretionary income is used for non-essential expenses. Therefore, expenses such as rent, utilities, and groceries fall under the category of disposable income, while expenses such as entertainment, travel, and shopping fall under the category of discretionary income.
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A standard commodity basket costs $300 in the U.S. and £100 in the U.K., and the current spot exchange rate S($/£)=$2/£. According to theories based on purchasing power parity (PPP), is the pound expected to appreciate or depreciate against the US dollar?
According to the purchasing power parity (PPP) theory, the pound is expected to appreciate against the US dollar.
This is because the standard commodity basket costs less in the U.K. than it does in the U.S. In order for the PPP theory to hold, the exchange rate must adjust so that the same basket of goods costs the same amount in both countries.
Since the standard commodity basket costs $300 in the U.S. and £100 in the U.K., and the current spot exchange rate S($/£)=$2/£, this means that the same basket of goods costs $200 in the U.K. ($2/£ x £100). In order for the PPP theory to hold, the exchange rate must adjust so that the same basket of goods costs $300 in both countries. This means that the pound must appreciate against the US dollar so that the exchange rate becomes S($/£)=$3/£.
In conclusion, according to the purchasing power parity (PPP) theory, the pound is expected to appreciate against the US dollar in order for the same basket of goods to cost the same amount in both countries.
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Free Sync Software Inc would pay a dividend of $3.75 per share in one year, and expects this dividend to grow at a rate of 4% forever. If its common shares are currently trading at $50, what is the cost of Free Sync Software's retained earnings.
The cost of Free Sync Software's retained earnings is 11.5%
The cost of Free Sync Software's retained earnings can be calculated using the formula for the cost of equity, which is:
Cost of Equity = (Dividend per Share / Current Stock Price) + Expected Growth Rate
In this case, the dividend per share is $3.75, the current stock price is $50, and the expected growth rate is 4%. Plugging these values into the formula, we get:
Cost of Equity = ($3.75 / $50) + 0.04
Cost of Equity = 0.075 + 0.04
Cost of Equity = 0.115 or 11.5%
Therefore, the cost of Free Sync Software's retained earnings is 11.5%. This is the required rate of return that the company's shareholders expect for the portion of earnings that are retained and reinvested in the company.
It is important for the company to earn at least this rate of return on its retained earnings in order to create value for its shareholders.
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Exercise 64: If $19,000 is borrowed at 12% interest to be paid
back over ten years, what is the balance of the loan just after
the six year's payment is made?
A. $10,213.
B. $10,604.
C. $10,806.
D. $11,316.
The total payments made from the future value gives us the balance is -$1,183,113
To find the balance of the loan after six years, we need to use the formula for the future value of an annuity:
[tex]FV = P * \frac{[(1 + r)^n - 1] }{r}[/tex]
Where FV is the future value, P is the payment amount, r is the interest rate, and n is the number of periods.
In this case, P = $19,000, r = 0.12, and n = 6.
Plugging these values into the formula gives us:
[tex]FV = $19,000 * [(1 + 0.12)^6 - 1] / 0.12\\FV = $19,000 * \frac{(2.012 - 1)}{0.12} \\FV = $19,000 * \frac{1.012}{0.12} \\FV = $161,016.67[/tex]
To find the balance of the loan after six years, we need to subtract the total payments made from the future value:
Balance = FV - (P * n)
Balance = $161,016.67 - ($19,000 * 6)
Balance = $161,016.67 - $114,000
Balance = $47,016.67
Therefore, the balance of the loan just after the six year's payment is made is $47,016.67.
However, this answer is not one of the options provided. It is possible that there is a mistake in the question or in the answer choices. It is also possible that the question is asking for the balance of the loan after six years of monthly payments, rather than six years of annual payments. In that case, we would need to adjust the formula to account for the monthly payments:
[tex]FV = P * [(1 + \frac{r}{12} )^{n*12} - 1] / (\frac{r}{12} )[/tex]
Where FV is the future value, P is the payment amount, r is the interest rate, and n is the number of years.
Plugging in the values from the question gives us:[tex]FV = $19,000 * [(1 + 0.12/12)^{6*12} - 1] / (0.12/12)\\FV = $19,000 * [1.973 - 1] / 0.01\\FV = $19,000 * 0.973 / 0.01\\FV = $184,887[/tex]
Again, subtracting the total payments made from the future value gives us the balance:
Balance = FV - (P * n * 12)
Balance = $184,887 - ($19,000 * 6 * 12)
Balance = $184,887 - $1,368,000
Balance = -$1,183,113
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An example of a money market instrument is: a. A Treasury- bill.
b. A certificate of deposit. c. A corporate bond. d. A treasury-
bond.
An example of a money market instrument is: b. A certificate of deposit.
Money market instruments are short-term debt securities that are used by corporations, banks, and governments to raise funds. They typically have maturities of one year or less and are considered to be low-risk investments. Examples of money market instruments include:
- Treasury bills: Short-term debt securities issued by the U.S. government with maturities of one year or less.
- Certificates of deposit (CDs): Time deposits offered by banks that pay a fixed interest rate and have a specific maturity date.
- Commercial paper: Short-term, unsecured promissory notes issued by corporations to raise funds.
- Banker's acceptances: Short-term, negotiable debt instruments that are guaranteed by a bank.
Among the options provided in the question, a certificate of deposit (CD) is an example of a money market instrument. Treasury bills are also considered money market instruments, but treasury bonds are not, as they have maturities of more than one year. Corporate bonds are also not considered money market instruments, as they typically have maturities of more than one year and are considered to be higher-risk investments.
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Based on: Tadelis, S. (2013). Game theory : an introduction. Princeton University Press.
Consider the Bertrand game with c1(q1) = 100q1 and c2(q2) = 120q2, demand equal to p = 10000 − q, and where firms must choose prices in increments of twenty HUF. The whole demand goes to the firm which offers lower prices and if both firms have the same price, the market is shared equally.
a) How many Nash equilibria in pure strategies does the game have? Describe them.
b) What happens to the set of equilibria in pure strategies if a third firm enters the market with c3(q3) = 100q3?
a) The Bertrand game has only one Nash equilibrium in pure strategies. This occurs when both firms choose the same price, which is equal to the marginal cost of the higher-cost firm.
In this case, the equilibrium price is 120 HUF, and both firms share the market equally. Each firm produces q = (10000 - 120)/2 = 4940 units, and earns a profit of (120 - 100) * 4940 = 98800 HUF.
b) If a third firm enters the market with c3(q3) = 100q3, the Nash equilibrium in pure strategies changes. Now, the equilibrium price is equal to the marginal cost of the lowest-cost firm, which is 100 HUF.
The third firm captures the entire market, producing q3 = 10000 - 100 = 9900 units, and earning a profit of (100 - 100) * 9900 = 0 HUF.
The other two firms do not produce anything, and earn zero profits. Therefore, the entry of the third firm eliminates the profits of the other two firms, and leads to a more competitive market outcome.
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(a) Explain to him two (2) reasons people take passive approach in making nondecision decision to help him to understand his concern. Provide relevant examples to support your explanations. (30 marks)Refer to Unit 3, pages 19 to 21 to understand the reasons - state two (2) reasons. - explain each reason and relate the explanation to the situation the reader is facing. Provide examples to further explain the situation. - Provide ways how he can overcome the two (2) reasons and relate them to his situation.(b) Describe ways he can overcome the two reasons. (20 marks)
One of the reasons why people take a passive approach in making non-decision decisions is because they are overwhelmed by the choices available. When faced with too many options, people often struggle to make a decision and instead choose to do nothing. For example, when given a long list of restaurants to choose from, people may hesitate, become overwhelmed and eventually give up on making a decision altogether.
Another reason why people take a passive approach is because of fear of making the wrong decision. People may be afraid of making the wrong decision and choose to do nothing instead. For instance, when presented with different investment options, people may be scared of choosing the wrong one and consequently, end up not investing at all.
To overcome these two reasons, the reader can use a few strategies. Firstly, he should try to limit his choices by focusing on what is most important to him before making a decision. This will help to narrow down his options and make it easier to make a decision.
Secondly, he should be aware of his fear of making the wrong decision and try to be more open minded when it comes to making decisions. He should also remember that even if a decision turns out to be wrong, it can still be rectified.
Lastly, he should consult with people he trusts and seek advice from them before making a decision. This will help him to make more informed decisions and reduce his fear of making the wrong decision.
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hurry please i need the answer im on a quiz
The transcontinental railroad change life for people in the United States because it became much easier to travel from the east to the west.
What is transcontinental railroad?
Contiguous railroad trackage that spans a continental land mass and has terminals at various oceans or continental borders is known as a transcontinental railroad or transcontinental railway. Such networks can be over lines that are owned or controlled by a single railroad, a network of railroad companies, or both along a continuous path.
Although there are railroads all over Europe, they are typically not regarded as transcontinental, with the potential exception of the legendary Orient Express.
Transcontinental railroads made it possible to explore and settle previously unreachable uninhabited interior areas of continents.
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Mansour, a manager, led his team by telling members what to do, rather than allowing members to develop consentus and make their own decisions. a)This obstacle to teamwork is known as Failure to delegate authority b) Unwillingness to cooperatec) Lack of managerial supportd) Pulling rank 2 Several major car manufacturers have announced plans to increase production of SUVs and trucks, and to discontinue several models of cars
The obstacle to teamwork that is described in the scenario with Mansour is d) Pulling rank. This is when a manager or leader uses their position of authority to make decisions and control the team, rather than allowing team members to collaborate and come to a consensus. This can create a lack of trust and cooperation within the team, and can hinder the team's overall performance and success.
As for the second part of the question about car manufacturers, it is unclear what the specific question is. However, it seems to be discussing a shift in the car industry towards producing more SUVs and trucks, and discontinuing certain car models. This could be due to changes in consumer demand, economic factors, or other reasons. Without more information, it is difficult to provide a specific answer.
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