Total Quality Management (TQM) is a management approach that emphasizes continuous improvement, customer satisfaction, and the involvement of all employees in achieving organizational excellence. It is based on the idea that quality should be infused into every aspect of a business.
Here are the key principles of Total Quality Management:
1. Customer Focus: The primary focus of TQM is meeting customer needs and exceeding their expectations. Organizations must understand customer requirements, gather feedback, and continuously improve their products or services to enhance customer satisfaction.
2. Continuous Improvement: TQM promotes a culture of continuous improvement in all areas of the organization. This involves seeking opportunities for innovation, reducing waste, and making incremental improvements to processes, products, and services on an ongoing basis.
3. Employee Involvement: TQM recognizes that employees are the backbone of an organization and encourages their active involvement. Employees at all levels should be empowered to contribute their ideas, skills, and expertise to improve quality. This principle emphasizes teamwork, collaboration, and effective communication within the organization.
4. Process-Oriented Approach: TQM emphasizes the importance of understanding and managing processes. Organizations need to identify and map out key processes, analyze them, and make necessary improvements to enhance efficiency, reduce errors, and deliver high-quality outputs.
5. Data-Driven Decision Making: TQM relies on data and facts to drive decision-making. It involves collecting, analyzing, and interpreting data related to quality metrics, customer feedback, process performance, and other relevant information. Data-driven decision making helps identify areas for improvement and supports evidence-based decision making.
6. Supplier Relationships: TQM recognizes the importance of strong relationships with suppliers. Organizations should work closely with their suppliers to ensure the quality of inputs, establish mutually beneficial partnerships, and collaborate on continuous improvement efforts.
7. Leadership Commitment: TQM requires strong leadership commitment and involvement. Leaders must provide a clear vision for quality, set measurable goals, provide necessary resources, and actively participate in promoting a culture of quality throughout the organization.
8. Strategic Approach: TQM aligns quality objectives with the overall strategic goals of the organization. It integrates quality management into strategic planning and decision-making processes to ensure that quality becomes a strategic advantage and supports long-term success.
By applying these principles, organizations can create a culture of quality, continuously improve their processes, and deliver high-quality products or services that meet or exceed customer expectations.
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Countries in which workers rapidly lose their jobs must have
high equilibrium unemployment rates.’ Is this statement correct?
Explain your answer."
The statement suggesting that countries with rapid job losses must have high equilibrium unemployment rates is not necessarily correct. The equilibrium unemployment rate represents the level of unemployment that exists when the labor market is in balance, considering factors such as labor supply and demand.
The equilibrium unemployment rate is influenced by several factors, including labor market dynamics, government policies, wage flexibility, and labor force characteristics.
Rapid job losses can occur during economic downturns or periods of industry restructuring, leading to temporary spikes in unemployment. However, these job losses do not automatically translate into a permanently high equilibrium unemployment rate.
Countries with flexible labor markets, effective retraining programs, and supportive economic policies can mitigate the impact of job losses and facilitate a faster transition to new employment opportunities.
Therefore, while rapid job losses may contribute to short-term increases in unemployment, they do not necessarily determine the equilibrium unemployment rate in the long run.
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Assume the following cost and revenue data for General Hospital: Fixed costs = $15 million Variable cost per inpatient day = $250 What revenue per inpatient day is required to obtain a profit of $1 million at a volume of 25,000 patient days? Show your step by step answer..
General Hospital would need to generate $890 in revenue per inpatient day to achieve a profit of $1 million at a volume of 25,000 patient days.
To calculate the required revenue per inpatient day, we need to consider the fixed costs, variable costs, and the desired profit.
Given:
Fixed costs = $15 million
Variable cost per inpatient day = $250
Desired profit = $1 million
Volume = 25,000 patient days
First, we calculate the total costs:
Total costs = Fixed costs + (Variable cost per inpatient day * Volume)
Total costs = $15 million + ($250 * 25,000)
Total costs = $15 million + $6.25 million
Total costs = $21.25 million
To obtain the desired profit, we add it to the total costs:
Total revenue = Total costs + Desired profit
Total revenue = $21.25 million + $1 million
Total revenue = $22.25 million
Finally, we divide the total revenue by the volume (patient days) to find the required revenue per inpatient day:
Required revenue per inpatient day = Total revenue / Volume
Required revenue per inpatient day = $22.25 million / 25,000
Required revenue per inpatient day = $890
Therefore, General Hospital would need to generate $890 in revenue per inpatient day to achieve a profit of $1 million at a volume of 25,000 patient days.
In conclusion, by considering the fixed costs, variable costs, desired profit, and volume, we can calculate the required revenue per inpatient day. This information is crucial for General Hospital to establish appropriate pricing strategies and financial planning to achieve its profit targets.
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The maximum gain of a long call position is:
A) $1,000
B) unlimited.
C) zero.
D) equal to the premium paid.
The maximum gain of a long call position is:unlimited.
What is the maximum gain of a long call positionA long call position gives the holder the right, but not the obligation, to buy the underlying asset at a specified price (the strike price) within a certain time period (until the expiration date). By holding a long call position, the investor benefits from an increase in the price of the underlying asset.
Since the potential gain from a long call position is based on the increase in the price of the underlying asset, which can theoretically be limitless, the maximum gain is considered unlimited.
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Deadhead Flower Shop begins 2022 with 10 glass pipes that cost $100 each. During the year the company purchases 16 more pipes for $95 each. The company sells 14 pipes for $300 each. What is the value of Deadhead's ending inventory if the company uses LIFO?
To calculate the value of Deadhead Flower Shop's ending inventory using the LIFO (Last-In, First-Out) method, we need to determine the cost of the remaining inventory based on the most recent purchases.
Given:
Beginning inventory: 10 glass pipes at $100 each
Purchases: 16 glass pipes at $95 each
Sales: 14 glass pipes at $300 each
Using the LIFO method, the cost of the most recent purchases is assigned to the goods sold first. Therefore, we will consider the 16 pipes purchased for $95 each as the ones sold.
Calculation:
Cost of goods sold = Number of pipes sold * Cost per pipe
Cost of goods sold = 14 pipes * $95 = $1,330
To find the value of the ending inventory, we subtract the cost of goods sold from the total cost of the remaining inventory.
The total cost of remaining inventory = (Beginning inventory + Purchases) - Cost of goods sold
Total cost of remaining inventory = (10 pipes * $100) + (16 pipes * $95) - $1,330
Total cost of remaining inventory = $1,000 + $1,520 - $1,330
The total cost of remaining inventory = $2,190
Therefore, the value of Deadhead Flower Shop's ending inventory using the LIFO method is $2,190.
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A country's economy is close to full employment. The government then decides to launch a tax cut program. Simultaneously, the central bank launches a bond sale program of the same magnitude. What can we say about the country's aggregate product (Y), price level (P) and interest rate (i) in the short run?
In the short run, when the government launches a tax cut program and the central bank launches a bond sale program simultaneously in an economy that is close to full employment.
Aggregate Product (Y): The tax cut program can stimulate aggregate demand by leaving households with more disposable income, which can lead to increased consumption and investment. This can result in an increase in aggregate product (Y) as businesses expand production to meet the higher demand.
Price Level (P): The impact on the price level is uncertain and depends on various factors such as the size of the tax cut, the effectiveness of the bond sale program in managing liquidity, and other demand and supply conditions in the economy. If the increase in aggregate demand exceeds the capacity of the economy to produce goods and services, it may lead to upward pressure on prices and result in inflationary pressures.
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In the short run, the tax cut program and the bond sale program of the same magnitude are likely to have different effects on the country's aggregate product (Y), price level (P), and interest rate (i).
The tax cut program could increase consumer spending, leading to an increase in Y and P due to higher demand for goods and services. On the other hand, the bond sale program could lead to a decrease in Y and an increase in i due to a decrease in the money supply and an increase in demand for bonds. Therefore, the effects of the tax cut program and the bond sale program could potentially offset each other, resulting in no significant changes to Y and P, but an increase in i. However, the exact outcome depends on various other factors such as the size of the tax cut, the demand for bonds, and the overall economic conditions of the country.
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Seminar 2 - Bonds - Questions 1. Tesco is issuing a 3 year bond with an annual coupon of 10% and face value of £1000. Interest rates for similar bonds are currently 9%. What is the Present Value of this bond? 2. Describe the three main types of corporate bonds. 3. Briar Corp is issuing a 10-year bond with a coupon rate of 7 per cent and face value of €1000. The interest rate for similar bonds is currently 9 per cent. Assuming annual payments, what is the present value of the bond? 4. Kevin Rogers is interested in buying a five-year bond with face value of €1000 that pays a coupon of 10 per cent on a semi-annual basis. The current market rate for similar bonds is 8.8 per cent. What should be the current price of this bond? 5. Which one of the following statements about zero coupon bonds is NOT true? a. Zero coupon bonds have no coupon payments but promise a single payment at maturity. b. Zero coupon bonds must sell for less than similar bonds that make periodic coupon payments. c. Zero coupon bonds make coupon payments but no principal payment at maturity. d. All of the above statements are true. 6. The British government has issued 10-year zero coupon bonds with a face value of £ 1000. Assume that coupon payments are normally semi-annual. What will be the current market price of these bonds if the opportunity cost for similar investments in the market is 6.75 per cent?
To calculate the Present Value (PV) of the bond, we need to discount the future cash flows (coupon payments and face value) at the market interest rate. In this case, the bond has a 3-year maturity, an annual coupon rate of 10%, and a face value of £1000. The market interest rate for similar bonds is 9%.
To calculate the Present Value, we can use the formula:
PV = (C/ (1+r)^1) + (C/ (1+r)^2) + ... + (C/ (1+r)^n) + (F/ (1+r)^n),
where PV is the Present Value, C is the coupon payment, r is the interest rate, and F is the face value.
In this case, the coupon payment (C) is £100 (10% of £1000), the interest rate (r) is 9%, and the number of periods (n) is 3 years.
Using the formula, we can calculate the Present Value as follows:
PV = (100/ (1+0.09)^1) + (100/ (1+0.09)^2) + (100/ (1+0.09)^3) + (1000/ (1+0.09)^3)
PV ≈ £258.68
Therefore, the Present Value of the bond is approximately £258.68.
The three main types of corporate bonds are as follows:
a. Fixed Rate Bonds: These bonds have a fixed coupon rate that remains constant throughout the life of the bond. The issuer pays periodic coupon payments to bondholders at the fixed rate, and at maturity, the face value of the bond is returned to the bondholder.
b. Floating Rate Bonds: These bonds have a variable coupon rate that changes over time based on a reference interest rate, such as LIBOR (London Interbank Offered Rate) plus a predetermined spread. The coupon payments adjust periodically according to changes in the reference rate.
c. Convertible Bonds: These bonds give bondholders the option to convert their bonds into a predetermined number of shares of the issuer's common stock. The conversion can occur at any time before the bond's maturity or based on specific conditions. Convertible bonds provide potential upside if the issuer's stock price increases.
To calculate the Present Value of the bond issued by Briar Corp, we can use the same formula as mentioned in question 1. The bond has a 10-year maturity, a coupon rate of 7%, and a face value of €1000. The interest rate for similar bonds is currently 9%.
Using the formula and values provided:
PV = (70/ (1+0.09)^1) + (70/ (1+0.09)^2) + ... + (70/ (1+0.09)^10) + (1000/ (1+0.09)^10)
PV ≈ €746.85
Therefore, the Present Value of the bond issued by Briar Corp is approximately €746.85.
To calculate the current price of the bond, we need to discount the future cash flows (coupon payments and face value) at the market interest rate. The bond has a 5-year maturity, a face value of €1000, and pays a coupon of 10% on a semi-annual basis. The current market rate for similar bonds is 8.8%.
Since the coupon payments are semi-annual, the coupon rate needs to be adjusted. The semi-annual coupon rate is 5% (10% divided by 2).
Using the formula and values provided:
PV = (50/ (1+0.088)^1) + (50/ (1+0.088)^2) + ... + (50/ (1+0.088)^10) + (1000/ (1+0.088)^10)
PV ≈ €1051.29
Therefore, the current price of the bond should be approximately €1051.29.
The correct statement about zero coupon bonds that is NOT true is:
c. Zero coupon bonds make coupon payments but no principal payment at maturity.
Zero coupon bonds do not make coupon payments. Instead, they are issued at a discount to their face value and promise a single payment at maturity, which includes the principal amount plus the accumulated interest. Zero coupon bonds are known for their absence of periodic coupon payments.
To calculate the current market price of the 10-year zero coupon bonds issued by the British government, we can use the Present Value formula. The face value is £1000, and the coupon payments are normally semi-annual (twice a year). The opportunity cost for similar investments in the market is 6.75%.
Using the formula and values provided:
PV = (0/ (1+0.0675)^1) + (0/ (1+0.0675)^2) + ... + (0/ (1+0.0675)^20) + (1000/ (1+0.0675)^20)
PV ≈ £503.91
Therefore, the current market price of these bonds would be approximately £503.91.
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You deposited $5000 in a bank that pays a 6% nominal interest rate compounded monthly . If you add another $10000 in the account 1 year from now and another $15000 to the account 2 years from now . how much will be in the account three years from now ?
the amount in the account three years from now would be $32,090.38.
Given, Deposit at present = $5000Nominal Interest rate = 6%Compounding is monthly. Adding $10,000 1 year from now. Adding $15,000 2 years from now We have to find the amount in the account after three years using the compound interest formula. Here, we can write, Compound Interest Formula Where, A = Final amount P = Principal (deposit amount) r = nominal annual interest rate, compounded n times per year t = number of years The deposit amount at present is $5000, we can calculate the final amount for it as follows, A = P(1 + r/n)nt = 5000(1 + 0.06/12)12×3 = $5981.11Adding $10,000 1 year from now, the amount will become, A = P(1 + r/n)nt + P = 10000A = 5981.11(1 + 0.06/12)12×1 + 10000 = $17214.36Adding $15,000 2 years from now, the amount will become, A = P(1 + r/n)nt + P(1 + r/n)nt + P = 15000A = 5981.11(1 + 0.06/12)12×2 + 10000(1 + 0.06/12)12×1 + 15000 = $32090.38Therefore, the amount in the account three years from now would be $32,090.38.
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qualified student loans may be discharged without the borrower incurring cancelled debt income T/F
Qualified student loans may be discharged without the borrower incurring cancelled debt income True. If the discharge is due to the borrower's death or permanent and total disability.
Additionally, if the borrower qualifies for certain loan forgiveness programs, such as Public Service Loan Forgiveness or Teacher Loan Forgiveness, any cancelled debt would not be considered taxable income. However, if the borrower's loan is discharged due to other reasons, such as bankruptcy or insolvency, any cancelled debt may be considered taxable income. It is important for borrowers to understand the specific circumstances under which their loan may be discharged and whether or not they will be subject to cancelled debt income.
True, qualified student loans may be discharged without the borrower incurring cancelled debt income. To clarify, this means that under certain circumstances, borrowers can have their student loans discharged without facing any tax implications for the cancelled debt. This can occur, for example, if the borrower qualifies for loan forgiveness through the Public Service Loan Forgiveness Program or Teacher Loan Forgiveness Program, or if the borrower becomes permanently disabled.
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You have the assignment to advise the CEO of Caddaric Ltd, a private company that specializes in industrial surveillance services, on a planned payout for the firm's investors. The firm has no debt and has accumulated cash beyond the required reinvestment needs, so the CEO feels it makes sense to return some of its cash to the shareholders.
The following table sets out the information about the firm's balance sheet.
BE311-5-SP/3
Total assets Cash
Fixed assets Equity
Value Cost of capital
£20m 10% £5m -- £15m --
£20m 10%
The number of shares outstanding in Caddaric Ltd is 20m, so the price per share is £1.
The risk-free rate is 3%, and the average return on the market index is 7%. The firm expects to grow at a rate of 4% each year.
Your report to the CEO should address the following points:
a) Payout to shareholders could take several forms. Explain the differences and similarities between cash dividend payments and stock repurchases.
b) The discounted dividend model suggests a relationship between the price per share, the
dividend yield, and the dividend growth. What dividend payment per share should the investors expect if this model is correct next year?
c) The firm doesn't currently have debt on its balance sheet. Your report should address the relative advantages and disadvantages of corporate borrowing as an alternative way of creating a payout, as corporate debt implies a payout to the firm's debtholders in the form of interest payments. In particular, you should address this question in light of the trade-off theory of borrowing and the pecking order theory of financing.
d) Suppose the CEO aims for a payout of £1.2m next year. What is the expected price on ex-dividend day next year if the firm pays £1.2m as cash dividends? In contrast, what is the expected number of shares after a £1.2m share repurchase operation next year?
a) Cash dividend payments and stock repurchases are both ways for a company to distribute funds to its shareholders. The main difference is the form in which the payout is made:
Cash dividend payments: In this case, the company distributes cash directly to its shareholders in proportion to their ownership (number of shares held). Shareholders receive the dividend payment in cash, which they can use as they see fit. Cash dividends are usually paid on a per-share basis, such as £0.05 per share.Stock repurchases: Instead of distributing cash, the company buys back its own shares from the shareholders. This reduces the number of shares outstanding in the market. Shareholders who sell their shares in the repurchase receive the repurchase price per share in cash. This method effectively returns value to shareholders by increasing the ownership percentage of those who do not sell their shares.Both methods can provide benefits to shareholders. Cash dividends provide immediate liquidity and cash flow to investors, allowing them to realize a direct return on their investment. Stock repurchases, on the other hand, can increase the value of the remaining shares by reducing the supply in the market, potentially leading to an increase in share price.
b) The discounted dividend model relates the price per share, dividend yield, and dividend growth rate. The formula for the price per share using this model is:
Price per share = Dividend per share / (Cost of capital - Dividend growth rate)Given that the firm expects a 4% dividend growth rate and the cost of capital is 10%, we can use these values to estimate the dividend payment per share:
Dividend per share = Price per share * (Cost of capital - Dividend growth rate)Dividend per share = £1 * (10% - 4%)Dividend per share = £1 * 6% = £0.06Therefore, if the discounted dividend model holds, investors should expect a dividend payment of £0.06 per share next year.
c) Corporate borrowing as an alternative payout method has advantages and disadvantages. The advantages include:
Tax benefits: Interest payments on corporate debt are tax-deductible, reducing the company's tax liability.Control retention: Unlike stock repurchases, debt allows the company to retain control and avoid diluting ownership.Flexibility: Borrowing allows the company to adjust the timing and amount of payouts more easily compared to cash dividends or stock repurchases.The disadvantages of corporate borrowing include:
Interest expense: Debt requires regular interest payments, reducing the available cash flow for other purposes.Financial risk: Taking on debt increases the company's leverage and financial risk, making it more vulnerable to economic downturns or cash flow issues.Creditworthiness: The company's ability to borrow depends on its creditworthiness, and excessive debt may negatively impact its credit rating.The trade-off theory of borrowing suggests that there is an optimal capital structure where the tax benefits of debt and the costs of financial distress are balanced. The pecking order theory of financing suggests that companies prefer internal financing (retained earnings) first, followed by debt, and equity issuance as a last resort.
d) To calculate the expected price on ex-dividend day next year if the firm pays £1.2m as cash dividends, we need to consider the number of shares outstanding and the dividend payment per share.
Expected price = (Equity - Dividend payment) / Number of sharesExpected price = (£15m - £1.2m) / 20mExpected price = £13.8m / 20mExpected price = £0.69 per shareAbout PaymentPayment is the voluntary surrender of money or an equivalent or something of value by one party to another in exchange for goods or services provided by them or to fulfill a legal obligation.
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why does standard deviation of a deiversified portfolio not change when you add a stock
The standard deviation of a diversified portfolio does not change when you add a stock under the assumption of perfect positive correlation between the stocks in the portfolio.
In other words, when the stocks move in perfect synchronization with each other. When stocks are perfectly positively correlated, their price movements tend to move together, resulting in reduced risk diversification benefits. Adding another stock to the portfolio does not significantly affect the overall portfolio risk because the new stock's price movements are highly correlated with the existing stocks. As a result, the impact of the new stock on the portfolio's overall risk is minimal.
It's important to note that in real-world scenarios, perfect positive correlation is rarely observed. In practice, stocks have varying degrees of correlation, which means the standard deviation of a diversified portfolio may change when adding a stock depending on its correlation with the existing stocks. Proper diversification aims to include stocks with low or negative correlations to reduce the portfolio's overall risk.
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Because the marginal tax rate rises as income rises , ___
Because the marginal tax rate rises as income rises, it creates a progressive tax system.
In a progressive tax system, the tax rate increases as income rises. The marginal tax rate refers to the tax rate applied to the last dollar earned, representing the additional tax liability on the next unit of income. As income increases, individuals move into higher tax brackets where the marginal tax rate is higher. This system is designed to achieve greater income redistribution and fairness by placing a larger tax burden on those with higher incomes.
The progressive tax system, characterized by an increasing marginal tax rate as income rises, is commonly used by governments to promote income equality and fund public services. It ensures that individuals with higher incomes contribute a larger proportion of their earnings towards taxes. This approach reflects the principle of ability to pay, as those with higher incomes are deemed to have a greater capacity to contribute to public revenue. Understanding the progressive nature of the tax system is important for individuals and policymakers to comprehend the implications of their income levels on their tax obligations.
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Hi could you help me understand how to do the following question , my brain hurts
The current stock price of XYZ plc is £50. European put options on XYZ have an exercise price of £50, the risk free interest rate 10% per annum, the stock volatility is 30% per annum, maturity is three months. XYZ is expected to distribute a dividend of £1.50 in two months.
Calculate the price of the option using the Black-Scholes formula. Show enough calculations to show you understand how to apply the Black-Scholes formula. (Total 10 marks)
the price of the option using the Black-Scholes formula is £2.44, given the above data.
We are required to calculate the price of the option using the Black-Scholes formula, given the following data: Current stock price (S) = £50Strike price (K) = £50Risk-free interest rate (r) = 10% per annum Volatility (σ) = 30% per annum Maturity (t) = 3 months Dividend (D) = £1.50 (to be distributed in 2 months)Using the Black-Scholes formula, we can calculate the price of a European put option as follows: P = Ke^(-rt) N(-d2) - S N(-d1)where, d1 = [ln(S/K) + (r + σ²/2)t] / σ√td2 = d1 - σ√tWe first need to calculate the values of d1 and d2. Given: S = £50K = £50r = 10% per annumσ = 30% per annumt = 3/12 years (as maturity is three months)The dividend of £1.50 is to be distributed in two months, which means that it has no effect on the option price as it falls within the maturity period.
Therefore, D = 0.Substituting these values in the formula, we get:d1 = [ln(50/50) + (0.1 + 0.3²/2)(3/12)] / 0.3√(3/12)= 0.1551d2 = 0.1551 - 0.3√(3/12)= -0.1449Using a calculator, we can find that N(-d1) = 0.5596 and N(-d2) = 0.5581Therefore,P = 50e^(-0.1×3/12)×0.5581 - 50×0.5596= £2.44 (to 2 decimal places)Thus, the price of the option using the Black-Scholes formula is £2.44, given the above data.
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A trader buys a call option for $3 on a stock with a price of $100 and sells a call option for $1 on the same stock with a strike of $120. Both options have the same maturity and notional amount. Sketch the pay-out diagram for this position.
a) What is the option strategy called?
b) What is the maximum loss/gain on the position?
c) What happens if the final stock price is above $120 at maturity?
a) The option strategy is called a Call Spread. b) The maximum loss on the position is the difference between the initial cost of the options, which is $3 - $1 = $2.
The maximum gain is the difference between the strike prices minus the initial cost, which is $120 - $100 - $2 = $18.
c) If the final stock price is above $120 at maturity, both options will be exercised. The trader will exercise the bought call option with a strike price of $100 and sell the stock at the market price, which will be above $120. They will also be assigned to the sold call option with a strike price of $120 and be required to sell the stock at $120. In this case, the trader's profit will be the difference between the final strike price and $100, as well as the $2 initial cost of the options.
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on january 1, 2019, hackman corporation issued $1 million face value 12onds dated january 1, 2019, for $1,023,000.
On January 1, 2019, Hackman Corporation issued $1 million face value bonds that were dated January 1, 2019, for a total of $1,023,000.
This means that the corporation sold the bonds for more than their face value, which indicates that there was strong demand for the bonds in the market. The face value of the bonds refers to the amount of money that the corporation is obligated to pay back to the bondholders at maturity. Overall, this transaction shows that the corporation was able to secure financing by issuing bonds and that investors were willing to pay a premium for the opportunity to invest in the company. The bond premium is usually amortized over the life of the bonds, which means it is gradually reduced over time through periodic adjustments to interest expense.
Additional information, such as the interest rate, coupon rate, maturity date, and interest payment frequency, would be necessary to provide a comprehensive analysis of the bond issuance.
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1. Define the problem faced by Fujifilm and other similar legacy technological companies. Are these problems unique only to technological companies or might other businesses face similar management scenarios? 2. Outline the steps taken by Fujfilm to respond to its "problem". In your analysis, was this an effective and sustainable long term response to the challenges faced by such legacy technological companies like Fujifilm? 3. Discuss the concept of "mindset change" in terms of the Fujfilm case study. 4. How is this case study of Fujifilm regarding its business research similar to the case study of Kodak which we explored last week in class? Compare and contrast how both companies used business research in their operations/strategy/planning.
The problem faced by Fujifilm and other similar legacy technological companies are:
Legacy tech companies risk obsolescence due to rapid technological advancements and market changes. Older companies struggle with emerging trends and innovations.
What is the the problem faced by FujifilmTech companies face unique management challenges, but other industries also encounter similar issues. Businesses face challenges in adapting to changing preferences, markets, and technology.
All industries require adaptation and innovation, not just tech companies. Fujifilm acknowledged decline in traditional business due to digital photography.
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Mark identified a comparable firm for a new division you are heading up. The comparable has an expected return on its equity of 8.4% and its debt has a yield
of 3.1%. The market value of the comparable’s equity and debt are $30B and $4B, respectively. What is the appropriate discount rate to use for projects in
Mark's divisions?
The appropriate discount rate (WACC) to use for projects in Mark's division is approximately 7.76%.
To determine the appropriate discount rate for projects in Mark's division, we calculate the weighted average cost of capital (WACC) based on the information provided. The WACC represents the average rate of return required by both equity and debt holders.
Using the formula for WACC, which considers the market values of equity and debt, as well as the expected return on equity and the yield on debt, we can calculate the discount rate:
First, we calculate the total market value (V) by summing the market value of equity (E) and debt (D). In this case:
E = $30B (market value of equity)
D = $4B (market value of debt)
V = E + D
V = $30B + $4B
V = $34B
Assuming a corporate tax rate of 0%, we can calculate the WACC using the formula:
WACC = (Proportion of Equity) * Cost of Equity + (Proportion of Debt) * Cost of Debt * (1 - Tax Rate)
WACC = ($30B / $34B) * 8.4% + ($4B / $34B) * 3.1% * (1 - 0%)
WACC ≈ 0.8824 * 0.084 + 0.1176 * 0.031
WACC ≈ 0.074 + 0.0036
WACC ≈ 0.0776 or 7.76%
Therefore, the appropriate discount rate (WACC) to use for projects in Mark's division is approximately 7.76%.
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Calculate the yield to maturity for the bond in the table. Round
to 3 decimal places.
Coupon Rate
Maturity Date
Last Trade Price
Last Trade Date
4.50%
4/25/2035
$90.25
5/12/2022
The yield to maturity (YTM) for the bond is approximately 0.3462, or 34.62% rounded to 3 decimal places.
To calculate the yield to maturity (YTM) for the bond, we need the following information: Coupon Rate, Maturity Date, Last Trade Price, and Last Trade Date. Given the data:
Coupon Rate: 4.50%
Maturity Date: 4/25/2035
Last Trade Price: $90.25
Last Trade Date: 5/12/2022
To calculate the YTM, we will use a financial calculator or spreadsheet software. Here is the formula to calculate YTM:
YTM = (C + (F - P) / n) / ((F + P) / 2)
Where:
C = Coupon payment per period
F = Face value of the bond
P = Purchase price of the bond
n = Number of periods until maturity
In this case, the bond has a coupon rate of 4.50%, a face value (F) of $100, a purchase price (P) of $90.25, and it matures in 13 years (n = 13). We can calculate the YTM using these values:
YTM = (4.50 + (100 - 90.25) / 13) / ((100 + 90.25) / 2)
Simplifying the calculation:
YTM = 0.3462
Therefore, the yield to maturity (YTM) for the bond is approximately 0.3462, or 34.62% rounded to 3 decimal places.
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Based on the Solow Model, production function Y = F(KL). answer the following questions. (i) Covid-19 pandemic has caused total death about 30% of total population in Malaysia. Explain what would happen to the economic growth and the steady level.
(ii) The Covid-19 has decreased fertility rate more 50% in Malaysia. Explain what would happen to the future labour force? (iv) Explain how does the firm choose level of capital and labour in production. (v) How does the market clearing occurs?
(i) It lead to decreased economic growth and potentially lower the steady-state level of output. (ii) it result in a shrinking future labor force. (iii) Firms choose the level of capital and labor based on profitability, maximizing output or profit by considering the marginal productivity of each factor. (iv) Market clearing occurs through adjustments in the labor and capital markets,
(i) The Covid-19 pandemic causing a total death of about 30% of the population in Malaysia would have a significant impact on economic growth. With a significant decrease in the population, there would be a decrease in the labor force and a decline in production.
This would lead to a decrease in economic growth and potentially lower the steady-state level of output.
(ii) The decrease in the fertility rate by more than 50% due to the Covid-19 pandemic would result in a shrinking future labor force. With fewer people being born, there would be a reduced number of individuals entering the workforce in the future.
This could potentially lead to labor shortages and a decrease in economic growth if the labor force is not sufficiently replenished through other means, such as immigration or increased labor force participation.
(iii) In the Solow Model, the firm chooses the level of capital and labor in production based on their profitability. The firm seeks to maximize its output or profit by considering the marginal productivity of both capital and labor.
It will continue to hire additional units of capital and labor until the marginal productivity of each factor equals their respective factor prices, ensuring that the cost of additional inputs is balanced with the additional output or profit generated.
(iv) Market clearing in the Solow Model occurs through adjustments in the labor market and the capital market. In the labor market, the wage rate adjusts to equate the demand for labor (based on the marginal productivity of labor) with the supply of labor (based on the population and labor force participation rate).
In the capital market, the interest rate adjusts to equate the demand for capital (based on the marginal productivity of capital) with the supply of capital (based on savings and investment decisions). Market clearing ensures that there is no excess supply or demand for labor or capital, leading to a balanced economy.
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Which development method involves assigning employees to
committees to help them understand the issues and processes in the
organisation?
Group of answer choices
Coaching.
Job rotation.
Committee assi
The development method that involves assigning employees to committees to help them understand the issues and processes in the organization is called Committee Assignment.
Committee assignment is a development method where employees are selected and assigned to various committees within the organization. These committees can focus on different areas such as strategic planning, process improvement, employee engagement, or any other relevant topic. The purpose of committee assignment is to provide employees with an opportunity to gain a deeper understanding of the organization, its operations, and the issues it faces.
By participating in committees, employees can learn about the decision-making processes, contribute their ideas and perspectives, and collaborate with colleagues from different departments or levels of the organization. This method helps employees develop a broader view of the organization, enhance their problem-solving and decision-making skills, and improve their overall knowledge and expertise.
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PW=20X+8XY
where X and Y are statistically independent discrete random variables with the following PDFS:
PDF of X
Value Probability
$44 0.6
$60 0.4
To find the expected value of PW, we need to calculate the weighted sum of PW for each possible combination of X and Y using their respective probability density functions (PDFs).
The PDF of X provides the values and corresponding probabilities for X, while the PDF of Y is not provided in the given information. Without the PDF of Y, we cannot calculate the expected value of PW accurately.
However, if we assume that Y is also a discrete random variable with its own PDF, we can proceed with the calculations. To find the expected value of PW, we need to consider all possible combinations of X and Y and their corresponding probabilities. For each combination, we multiply the value of PW (20X + 8XY) by the joint probability of X and Y, and then sum up these weighted values.
Given the PDF of X, we have two possible values for X: $44 and $60, with probabilities 0.6 and 0.4, respectively. If we have the PDF of Y, we can calculate the expected value of PW using the formula: E(PW) = Σ[(20X + 8XY) * P(X, Y)], where P(X, Y) represents the joint probability of X and Y.
Without the PDF of Y, we cannot provide a specific answer regarding the expected value of PW.
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Which of the following statements about international trade restrictions is true?
a. They typically benefit foreign producers at the expense of domestic consumers.
b. They ensure that countries will specialize in those products which they can produce most efficiently.
c. In the majority of cases they harm consumers.
d. They ensure that only efficient producers survive.
e. They ensure that higher-quality goods are provided at lower prices.
The correct statement about international trade restrictions is that in the majority of cases they harm consumers.
Trade restrictions, such as tariffs and quotas, increase the cost of imported goods and limit competition, which results in higher prices for consumers. Additionally, trade restrictions can lead to retaliation from other countries, which can further harm the economy and restrict trade opportunities. These restrictions can lead to higher prices for imported goods, which can negatively impact consumers' purchasing power and restrict their access to a wider range of products. Additionally, trade restrictions can limit competition, reducing incentives for efficiency and innovation, and potentially resulting in higher prices and lower quality goods. While trade restrictions may provide some benefits to specific industries or producers, they generally come at the expense of consumers who have fewer options and may face higher costs.
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ABT is expanding rapidly and currently needs to retain all of its earnings: hence, it does not pay dividends. However, investors expect ABT to begin paying dividends starting with $1 per share 1 year from today and will grow rapidly at 30% for three years, after year 4 growth should be a constant 6,5% per year. If the required rate of return on ABT = 14%, what is the value of its stock today?
When the growth rate of dividends is higher than the investor's needed rate of return, but as time goes on, it begins to decline and stabilize at a lower rate of return, this is known as supernormal growth.
Year Dividend 1 $1 $2 (1+Growth rate) = $1.3 3 (1+Growth rate) = $1.69 4 (1+Growth rate) = $2.197 Terminal value = [Dividend for year 4*(1+Growth rate)]Growth rate / (Required return)
=[2.197*(1+0.065)]/(0.14-0.065)
=2.339805/0.075
=$31.1974
So, the current stock value equals the present value of future dividends and the final value.
=1/(1.14)+1.3/(1.14)^2+1.69/(1.14)^3+2.197/(1.14)^4+31.1974/(1.14)^4
=(1*0.877192982)+(1.3*0.769467528)+(1.69*0.674971516)+(2.197*0.592080277)+(31.1974*0.592080277)
that is equivalent to
=22.79 (about)
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which of the following most accurately describes what is included in cost management information?
The correct answer is option-3. Cost management information involves the combination of financial information and relevant non-financial information.
Cost management is a set of activities undertaken by an organization to achieve cost-effectiveness in its operations while still delivering quality products and services. Cost management information refers to the reports, data, and other documents used by management to monitor and manage the company's costs.
According to the most accurate description of what is included in cost management information, it is a combination of financial and relevant non-financial information. Financial information includes data about a company's income, expenses, assets, liabilities, and cash flow.
Non-financial information, on the other hand, is information that is not directly related to finances but has an impact on the organization's cost management, such as customer satisfaction, employee morale, and operational efficiency. The combination of financial and non-financial information is used to make decisions on cost management strategies and practices.
Cost management information enables managers to track their progress, identify areas for improvement, and make informed decisions to optimize costs.
Therefore, the correct answer is option-3.
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The complete question is-
Which of the following most accurately describes what is included in cost management information?
1.Only the most up-to-date, accurate financial information available about a firm.
2.All the non-financial information about a firm researched and analyzed for a minimum of 2 years.3. A combination of financial information and relevant non-financial information.
4.A detailed report outlining how management currently handles all of a company's costs, and the changes it intends to make in the future.
What is the Present Value (PV) of a 5-year ordinary annuity with
annual payments of $200, evaluated at a 12 percent interest
rate?
To calculate the present value (PV) of a 5-year ordinary annuity with annual payments of $200 evaluated at a 12 percent interest rate, you can use the following formula:
PV = Payment x [1 - (1 + r)^-n] / r
where:
Payment = $200 (the annual payment)
r = 12% (the interest rate in decimal form)
n = 5 (the number of years)
Plugging these values into the formula, we get:
PV = $200 x [1 - (1 + 0.12)^-5] / 0.12
PV = $200 x [1 - 0.56743] / 0.12
PV = $200 x 3.1048
PV = $620.96
Therefore, the present value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 12 percent interest rate, is $620.96.
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During Thanksgiving holidays of November 2013, Target's POS system was infected with the BlackPOS malware. It was not until mid- December that the mega-store named Target became aware of the breach in their security. The hackers were able to get into Target's systems by compromising a company web server and uploading the Black POS software to Target's POS systems Required: In your opinion, how the chances of such attacks can be reduced?
To reduce the chances of cyber attacks like the one that affected Target's POS system, companies should implement robust security measures, such as regularly updating software and hardware, conducting regular security audits, and providing employee training on cybersecurity best practices.
Cybersecurity threats are constantly evolving, and companies must take proactive measures to protect their systems from attacks. One of the most effective ways to reduce the risk of cyber attacks is to keep software and hardware up to date with the latest security patches. Software vulnerabilities are often exploited by hackers to gain access to systems, and by keeping software up to date, companies can reduce the risk of these vulnerabilities being exploited. Regular security audits can also help companies identify any weaknesses in their systems and take steps to address them before they can be exploited by hackers. Additionally, providing employee training on cybersecurity best practices can help reduce the risk of human error, which is a common cause of cyber attacks. By implementing these measures, companies can reduce the chances of cyber attacks like the one that affected Target's POS system.
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Please refer to the paper entitled "The Determinants of Demand for Money: Empirical Evidence from Some Selected Developing Countries", by Parveen et al. (2020). Based on your understanding of the article, answer the following questions.
State two (2) objectives of the study.
Describe two (2) statistical method/s that was/were used in the empirical analysis?
Explain two (2) results between the relationship between the dependent and independent variables.
The two objectives of the study are:
The first objective is to evaluate the demand for money in the chosen countries and compare the results to those from developed countries.
The second objective is to investigate the main determinants of the demand for money in these countries.
The researchers employed econometric techniques to examine the empirical relationship between the variables and to achieve their research objectives.
Statistical methods used in the empirical analysis are:
Unit root test: This test is used to examine whether the data is stationary or non-stationary. If the data is non-stationary, it can have a significant impact on the accuracy of the model. Therefore, in this study, it was important to test whether the data was stationary or non-stationary before building the model.
Panel data analysis: This is a statistical method for examining data from various sources over time. In this study, panel data analysis was used to examine the relationship between the variables across various countries in order to obtain a better understanding of the relationship between the variables.
The results indicate that the interest rate has a negative and significant effect on the demand for money in the selected developing countries.
Furthermore, the results revealed that income has a positive and significant effect on the demand for money. The study's results are consistent with earlier empirical studies, which have shown that the variables studied have a significant effect on the demand for money in both developed and developing countries.
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a firm’s strategy is defined as the actions managers take to attain the goals of the firm. T/F
True. A firm’s strategy is defined as the actions managers take to attain the goals of the firm. A strategy is the art of planning and directing overall operations and movements of a business enterprise. Strategies help businesses to compete with each other in the market to achieve their goals.
A long answer to this question can be:Yes, a firm’s strategy is defined as the actions managers take to attain the goals of the firm. It is the master plan or blueprint which outlines the path or course of action a business enterprise intends to follow to reach its goals and objectives. It includes the choice of products or services to be offered, market to be targeted, the means of production to be used, policies to be implemented, and methods to be employed to finance and manage the business. The strategy involves the long-term planning process and outlines how the resources of the firm will be allocated to achieve the objectives of the business.
It is an essential element of business planning as it guides the decision-making process of the company in a direction that is consistent with the goals and objectives of the organization.A business can have multiple strategies, which can change over time to adapt to the market and other external factors affecting the business. Strategies can be classified as competitive, functional, or operational. Competitive strategy outlines how the business will compete with its rivals, functional strategy outlines how each function or department of the business will operate, and operational strategy outlines how day-to-day activities will be performed to achieve the goals of the business.
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There are two firms A and B. Firms compete in a Cournot Duopoly in Karhide. They set quantities qA and qB. Inverse demand is P(qA + qB) = 18 − qA − qB and costs are C(q) = 3 ∗ q for both firms. Firm B is a domestic firm (in Karhide,) and firm A is a foreign firm (from Orgoreyn.) The government of Karhide engages in a strategic trade intervention by giving firm B a per unit subsidy of s. (That is, when firm B produces and sells qB units, firm B receives a payment of s ∗ qB from the government.) You must show your work at each step, unless the questions is followed by "No work required."
(1) We begin by examining the model with an unspecified s ≥ 0.
(a) Use first order conditions to find each firm’s best response function.
(3) (25 points) Assume that s = 3.
(a) Find firm B’s profit function under the subsidy. (No work required.)
(b) Find firm B’s best response function.(You may do this directly or by setting s to zero in your expressions from (1b).
(c) Why don’t I need to ask you to solve for A’s best response?
(d) Solve for the equilibrium outputs (qA*, qB* ).
(e) Solve for the equilibrium price.
(f) Solve for firm B profits.
The specific numerical values for the equilibrium outputs, equilibrium price, and firm B's profits would depend on the calculations based on the given equations and values.
(a) To find each firm's best response function, we need to maximize their profits. The profit function for both firms A and B can be written as follows:
ProfitA = P(qA + qB)qA - C(qA)
ProfitB = P(qA + qB)qB - C(qB) + s * qB
To find the best response function for firm A, we differentiate ProfitA with respect to qA and set it equal to zero:
∂ProfitA/∂qA = P(qA + qB) + P'(qA + qB)qA - C'(qA) = 0
Simplifying and rearranging, we get:
P(qA + qB) + P'(qA + qB)qA = C'(qA)
Similarly, for firm B, we differentiate ProfitB with respect to qB and set it equal to zero:
∂ProfitB/∂qB = P(qA + qB) + P'(qA + qB)qB - C'(qB) + s = 0
Simplifying and rearranging, we get:
P(qA + qB) + P'(qA + qB)qB = C'(qB) - s
(b) If we assume that s = 3, then firm B's profit function under the subsidy becomes:
ProfitB = P(qA + qB)qB - C(qB) + 3qB
(c) We don't need to solve for firm A's best response because it is a Cournot duopoly, and the firms' actions are interdependent. Firm A's best response can be determined based on firm B's best response.
(d) To find the equilibrium outputs (qA*, qB*), we equate the best response functions for firm A and firm B:
P(qA* + qB*) + P'(qA* + qB*)qA* = C'(qA*)
P(qA* + qB*) + P'(qA* + qB*)qB* = C'(qB*) - s
(e) To solve for the equilibrium price, we substitute the equilibrium outputs (qA*, qB*) into the inverse demand function:
P* = (18 - qA* - qB*) / (qA* + qB*)
(f) Firm B's profits can be calculated using the equilibrium outputs and the profit function:
ProfitB* = P* * qB* - C(qB*) + 3qB*
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Suppose that X University's tuition is $7,000. The cost of textbooks is $1,000, and the cost of food & housing is $19,000. If you did not go to the X University, you would have worked as a accountant, making $50,000 per year. What is your opportunity cost of attending X University?
The opportunity cost of attending X University is $77,000. The opportunity cost of attending X University can be calculated by adding the explicit costs (tuition, textbooks, food & housing) and the implicit cost (forgone income from working as an accountant).
Step 1: Calculate the explicit costs:
Tuition: $7,000
Textbooks: $1,000
Food & housing: $19,000
Total explicit costs: $7,000 + $1,000 + $19,000 = $27,000
Step 2: Identify the implicit cost:
Forgone income: $50,000
Step 3: Calculate the opportunity cost:
Opportunity cost = Explicit costs + Implicit cost
Opportunity cost = $27,000 + $50,000 = $77,000
The opportunity cost of attending X University is $77,000.
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what is unique about staffing practices at the online shoe company zappos?
Zappos' unique staffing practices prioritize cultural fit over qualifications, emphasizing alignment with core values and offering a comprehensive training program called "The Offer."
Determine the Zappos?Zappos is known for its distinctive approach to staffing, which focuses on cultural fit rather than solely on qualifications and experience. The company believes that hiring individuals who align with its core values and culture leads to a more engaged and productive workforce.
To ensure cultural compatibility, Zappos implements a rigorous hiring process that includes multiple interviews and a unique training program called "The Offer." During "The Offer," new hires are immersed in the company's culture for several weeks, with the option to leave the company at any time, receiving a bonus if they choose to do so.
This process aims to identify individuals who genuinely embrace the company's values and are committed to long-term engagement. By prioritizing cultural fit, Zappos fosters a work environment where employees are more likely to thrive and contribute to the company's success.
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