McDonald's can be referred to as a lean operation because it has successfully implemented lean principles that allow it to provide high-quality products to customers at a low cost while maintaining high efficiency and minimizing waste. The company uses forecasting, capacity planning, and inventory management to deal with uncertainty in demand
McDonald's can be considered a lean operation because the fast-food giant has successfully implemented lean principles that allow it to provide high-quality products to customers at a low cost while maintaining high efficiency and minimizing waste. In a lean operation, the focus is on eliminating waste, streamlining processes, and increasing efficiency.
McDonald's has implemented various lean techniques such as 5S, JIT, and Kaizen to ensure that their operations are as efficient as possible. The company has also successfully applied the seven types of waste management to eliminate non-value-adding activities in its processes. The seven types of waste are transport, inventory, motion, waiting, overproduction, overprocessing, and defects.
To deal with the uncertainty in demand and supply through its buffering strategy, McDonald's uses a combination of forecasting, capacity planning, and inventory management. Forecasting involves predicting future demand by analyzing sales data, customer trends, and other relevant factors. Capacity planning ensures that the company has enough resources and staff to meet demand.
Finally, inventory management involves maintaining optimal inventory levels to avoid stockouts while minimizing waste and storage costs. McDonald's uses a Just-in-Time (JIT) inventory system, which involves ordering and receiving inventory only when needed to reduce inventory costs.
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Gabriella invested $15.000 into an account 15 years ago and now has $48,000 in the account. Her money was compounded semi-annually. What is the annual interest rate Gabriella earned in this investment?
In the given problem, Gabriella earned an annual interest rate of 8.496% in this investment.
Gabriella invested $15,000 into an account 15 years ago and now has $48,000 in the account. Her money was compounded semi-annually. We need to determine the annual interest rate Gabriella earned in this investment. So, Let us denote the annual interest rate as “r”. Here, the money was compounded semi-annually.
We know that the formula for compound interest is given by:
P = A (1 + (r/n))^(nt)
Where, P = the principal amount, A = the final amount after “t” years, r = the annual interest rate, n = the number of times the interest is compounded per year, t = the number of years Firstly, we will calculate “n”.
Since the investment was compounded semi-annually, we have 2 compounding periods in one year. Therefore, n = 2Next, we will calculate the value of “t”. Since the investment was made 15 years ago, the value of “t” is 15 years.
Let us substitute the given values into the formula and solve it:
A = P (1 + (r/n))^(nt)48,000
= 15,000 (1 + (r/2))^(2 × 15)
Simplify the equation by dividing both sides by
15,000:48,000/15,000 = (1 + (r/2))^(2 × 15)
Use a calculator to simplify the left-hand side of the equation:
3.2 = (1 + (r/2))^30
Take the 30th root of both sides of the equation:
(1 + (r/2)) = 1.04248
Subtracting 1 from both sides:
r/2 = 0.04248
Multiplying by 2 on both sides:
r = 2 × 0.04248r = 0.08496
Therefore, Gabriella earned an annual interest rate of 8.496% in this investment.
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Time left 1:24:12 Freddy runs a business selling clocks. He buys 614 clocks for $44 each (including GST) and sells for $77 each (inc GST). He is registered for GST credits. How much should he remit to the ATO once all the clocks are sold? Answer:
Given that: Freddy buys 614 clocks for $44 each (including GST) and sells them for $77 each (including GST).The price Freddy pays for a clock= $44 (including GST)Price Freddy sells a clock= $77 (including GST)Freddy's profit = $77-$44= $33 (including GST)Freddy is registered for GST credits.
Thus, the GST component of the sale= $77-$70 (excluding GST) = $7Freddy is able to claim back a GST credit on the purchase price of the clocks, which is $44÷11= $4. Therefore, the GST that Freddy must remit to the ATO is $7-$4= $3 per clock.In order to determine the total amount of GST he should remit to the ATO, we must multiply this number by the total number of clocks sold by Freddy.Time left 1:24:12= 1 hour 24 minutes 12 seconds= 5040+ 240+ 12 seconds= 5280 seconds.Given, Freddy buys 614 clocks for $44 each and sells for $77 each.
Also, he will sell all the clocks in 5280 seconds. To calculate the number of clocks sold per second we need to divide the total number of clocks by the total number of seconds available for sale.614÷5280=0.116 (approx)Therefore, the number of clocks sold per second= 0.116.Since Freddy makes $33 (including GST) profit on each clock, he makes $33×0.116= $3.828 in profit per second.Since GST of $3 must be remitted to the ATO for each clock sold, Freddy must remit $3×0.116= $0.348 (approx) to the ATO per second.The total amount Freddy should remit to the ATO after selling all the clocks = $0.348×5280= $1835.04 (approx).
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Miving to another question will save this response Question 30 Marketing Mix consists of the 4 P's. One of those P's is Product. A company must carry out a customer-oven new product development process for finding and growing new products. List the eight major steps, of the new product development process, in sequence
In sequence, the eight major steps in the customer-driven new product development process are as follows: idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, market testing, and commercialization.
The new product development process is a systematic approach used by companies to bring new products to the market successfully. The process involves several steps that are carried out in a sequential manner to ensure effective product development and market entry.
Idea Generation: This is the initial stage where ideas for new products are generated. It can come from various sources such as customers, employees, competitors, or market research.Idea Screening: In this step, the generated ideas are evaluated to determine their feasibility and alignment with the company's goals and resources. Ideas that show potential are selected for further development.Concept Development and Testing: The selected ideas are further developed into concepts that outline the product's features, benefits, and target market. These concepts are tested with a sample of potential consumers to gather feedback and refine the ideas.Marketing Strategy Development: Once the product concepts are validated, a marketing strategy is developed. This includes identifying the target market, positioning the product, and determining the marketing mix.Business Analysis: A detailed analysis of the product's potential profitability and financial viability is conducted in this step. Factors such as production costs, pricing, and sales forecasts are assessed.Product Development: The actual development of the product takes place in this stage. The product is designed, prototyped, and tested for functionality and quality.Market Testing: Before full-scale launch, the product is tested in a controlled market environment to evaluate its performance, acceptance, and consumer response.Commercialization: If the product passes the market testing phase, it is ready for commercialization. This involves full-scale production, marketing, and distribution of the product to the target market.By following these eight steps in sequence, companies can systematically develop and introduce new products that meet customer needs and generate business growth.
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Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead. True False
The statement is true. Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead.
Furthermore, variable costing is a costing method that considers variable manufacturing costs as product costs, and fixed manufacturing costs as a period cost that is only deducted from the income statement and doesn't affect the inventory accounts.
Variable costing is a cost accounting system that attributes only the variable manufacturing costs to the products produced during a period. It is a cost accounting system that only considers variable production expenses, not fixed manufacturing costs, when calculating the expense of manufacturing a product. This implies that under variable costing, the cost of producing a unit includes only the variable manufacturing expenses incurred in making that unit.
This makes it possible for the firm to know how much each unit is costing them to produce, which is useful in making pricing decisions. It also helps to provide a clearer picture of the profitability of each product line since the fixed costs are treated as period costs, rather than being allocated to the cost of goods sold.
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Which of the following statements is correct? O The long-run total cost curve is the total of all the short-run total cost curves. O The marginal cost curve intersects average variable cost (AVC) and average total cost (ATC) at the maximum of ATC and AVC. O The long-run average total cost curve must be the lower envelope of all of the firm's short-run average total cost curves. O In the short run where capital is fixed, to minimize the cost, the necessary condition is the technical rate of substitution equals to input price ratio.
The statement that is correct is that in the short run where capital is fixed, to minimize the cost, the necessary condition is the technical rate of substitution equals to input price ratio.
When capital is fixed, the firm can adjust the level of output by varying only one input, usually labor. The cost structure in the short run depends on whether the variable input is subject to diminishing returns.The technical rate of substitution is defined as the negative of the slope of the isoquant, or the marginal rate of technical substitution.The necessary condition for minimizing the cost is that the input price ratio is equal to the technical rate of substitution. As a result, the point of intersection between an isoquant and an isocost line represents the optimal combination of inputs that minimizes costs.In the short run, all inputs are not adjustable, so a firm's cost curve consists of the marginal cost curve and the average variable cost curve, as well as the average fixed cost curve.The long-run total cost curve (LTC) is the sum of all the short-run total cost curves.
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a) What are the impacts of unemployment based on your observations to the economy of Oman? Justify your answer by providing situations with economic related data you observed in Oman supported with the theories that you learned.
b) High level of unemployment and inflation is refered to as "twin evils" if not controlled. What are the vast consequence of the "twin evils" to the society? Discuss in detail how "twin evils" could result to financial break down.
Unemployment can have significant impacts on the economy of Oman, as it causes lower production and less consumption, resulting in a reduced standard of living. The situation can be demonstrated using data from Oman's unemployment rate.
According to the Central Bank of Oman, Oman's unemployment rate was 16.8 percent in 2020. It suggests that Oman is going through a difficult period, as the unemployment rate is one of the most critical indicators of economic health.Inflation, on the other hand, is an economic term used to describe the rise in goods and services prices over time. High inflation and unemployment rates can lead to various economic issues, including lower productivity and higher costs of production. Furthermore, high unemployment rates in Oman could result in a rise in social issues such as poverty, crime, and social unrest. Oman's government must promote employment opportunities, mainly among its young and expanding population, to address the issue.The "twin evils" of high unemployment and inflation can result in significant financial breakdowns. When there is a financial breakdown in a country, the economy suffers a severe impact, which can have negative impacts on both businesses and consumers. High unemployment rates can result in lower productivity and decreased consumption, which can have a substantial impact on businesses. When businesses are affected, consumers are also affected because they are the ones who will experience the consequences. Furthermore, inflation can have a significant impact on the economy, as it leads to a decrease in the purchasing power of the currency. When the currency's purchasing power is low, prices rise, which can lead to increased costs for businesses, lower profits, and reduced investment.
In summary, high unemployment and inflation rates are referred to as the "twin evils," which can cause significant issues in the economy. Oman's government must work to promote employment opportunities, mainly among its young and expanding population, to address the issue. Furthermore, inflation can have a significant impact on the economy, as it leads to a decrease in the purchasing power of the currency. Oman's government must find a way to address these issues to prevent a financial breakdown in the country.
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f. what was the operating profit (or loss) for june? (negative amounts should be indicated by a minus sign.)
The operating profit for June is $83,700.
Operating profit, also known as operating income or operating earnings, is a measure of a company's profitability that reflects its core operations before interest and taxes. It represents the amount of profit generated from the regular business activities of a company, excluding any non-operating income or expenses. Operating profit is derived by subtracting the operating expenses, including costs of goods sold, selling and administrative expenses, and depreciation, from the gross profit. It indicates the financial performance and efficiency of a company's day-to-day operations. Operating profit is a crucial metric for assessing the profitability and operational effectiveness of a business, providing insights into its ability to generate sustainable earnings.
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The followings are partial reformulated statement of financial position for an industrial firm that you are required to value
Reformulated SEP. Year 20X1 and 20x2
20X2 20x1
NOA 900 850
NFO 300 350
Common Equity 600 500
Value the equity at the end of year 20X2 under a forecast that
(i) Returns on net operating assets in the future will be the same as 19%
(ii) Sales are expected to grow at 4% per year in the future.
(iii) Asset tumovers in the future will be the same.
(iv) The required rate of return for operations in 9 (5 POINTS)
O 2,400
O 2,300
O 2,500
O 2,000
Therefore, the value of the at the end of year 20X2 is $1,900 million. None of the given options match the calculated value, so none of the options provided is correct. To value the equity at the end of year 20X2, we need to calculate the future net operating income (NOI) and divide it by the required rate of return to determine the value of the equity.
Given:
Return on net operating assets (RNOA) = 19%
Sales growth rate = 4%
Asset turnover remains the same
Required rate of return = 9%
First, we calculate the future net operating income (NOI) by multiplying the projected sales with the RNOA:
Projected NOI = NOA * RNOA = $900 million * 19% = $171 million
Next, we calculate the future net operating assets (NOA) using the sales growth rate and asset turnover:
Projected NOA = NOA * (1 + sales growth rate) = $900 million * (1 + 4%) = $936 million
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Journal entry worksheet GIPI's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. Record the transaction Note: Enter debits before credits. Date General Journal DebitCredit Jan 31 ncome Tax Expense Income Tax Payable Record entry Clear entry View general journal < Requirement General Ledger >
Date | General Journal | Debit | Credit
Jan 31 | Income Tax Expense | | TBD
Jan 31 | Income Tax Payable | TBD |
To record the transaction for income tax expense and income tax payable, the specific amounts need to be provided in order to complete the journal entry. The debit amount for "Income Tax Expense" will depend on the taxable income or the applicable tax basis for the company, while the credit amount for "Income Tax Payable" will be the same as the debit amount.
Please provide the specific amount for the debit entry in "Income Tax Expense" so that I can assist you in completing the journal entry accurately.
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This economic agent is responsible for the redeployment of excess funds from savings back into the economy as loans and investments. O a Government O b. Rest of the World O O d. Households O e. Firms
The economic agent responsible for the redeployment of excess funds from savings back into the economy as loans and investments are the financial intermediaries such as banks, credit unions, and other institutions.
The correct option would be option F.
financial intermediaries. The financial intermediaries redirect savings into productive investment opportunities through lending, issuing bonds, and other financial activities.What are financial intermediaries?A financial intermediary is an entity that connects borrowers and lenders or savers in the financial market. It provides a mechanism that allows for the transfer of financial resources between parties, and the financial intermediary itself earns a profit by charging a fee or interest rate on the loans and other financial transactions it facilitates. They are institutions like banks, credit unions, and other financial organizations whose primary role is to mobilize savings and allocate them to productive investment opportunities through lending, issuing bonds, and other financial activities.
They are responsible for the redeployment of excess funds from savings back into the economy as loans and investments. The long answer is as follows:The term financial intermediary refers to an entity that operates as an intermediary between borrowers and lenders in the financial market. Financial intermediaries mobilize savings and channel them into productive investment opportunities through lending, issuing bonds, and other financial activities. The role of financial intermediaries in the economy is critical since they redirect savings into productive investment opportunities, thereby enhancing economic growth and development. Financial intermediaries take advantage of economies of scale by pooling resources from numerous savers, thereby increasing their capacity to lend money at lower interest rates. Furthermore, they reduce risk by diversifying their loan portfolio, which reduces the probability of default on any given loan. In conclusion, financial intermediaries are critical in the economy since they are responsible for mobilizing savings and channeling them into productive investment opportunities, thereby enhancing economic growth and development.
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Prepare an FMEA with between five and ten failure modes that is directly relevant to something in your professional life right now. If you currently have no profession, you can even conduct an FMEA on whether or not you will get your MBA! This is an extremely important quality tool for all senior managers, entrepreneurs...any leader, really.
formulate your response and post it. You may take a screen shot or build a simple table right in your response in the forum. You may also attach an excel spreadsheet.
An FMEA was conducted on the company's website update project, identifying ten failure modes and their respective severities, occurrence rates, and detection scores.
The company is currently working on updating its website to improve user experience and increase sales. An FMEA was conducted to identify potential failure modes that could occur during the project.
Ten failure modes were identified, including slow page loading times, broken links, incorrect product information, and security breaches. Each failure mode was evaluated for its severity, occurrence rate, and detection score to prioritize mitigating actions.
For example, the failure mode of slow page loading times had a high severity score because it could lead to frustration and loss of sales, a medium occurrence rate because it could happen frequently due to various factors impacting internet speed, and a high detection score because it would be easily noticeable by users.
Mitigating actions were developed to reduce the severity, occurrence rate, and increase detection scores for each failure mode, including conducting regular website speed tests, implementing security protocols, and updating product information regularly.
By conducting an FMEA, the company hopes to ensure a successful website update project that meets the needs of its customers and achieves its business goals.
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The Rigel Corporation has a plant located in Monterrey, Mexico to manufacture and ship products to Tacoma, WA. Transit time from Monterrey to Tacoma averages 8 days. Daily demand at the Tacoma facility is 3 units of the product from Monterrey The plant ships in full containers, each container has a maximum capacity of 27 components. Truck shipping from Monterrey is $9500 per container. Holding cost for the units while in-transit or as raw materials inventory is $2/unit/ day. Provide the total logistics costs for the current system assuming full containers. Days between Shipments Truck COST PER DAY Pipeline Stock COST PER DAY Inventory in Tacoma COST PER DAY Total COST PER DAY
The total logistics costs for the current system, assuming full containers, is approximately $1,071.56.
To calculate the total logistics costs for the current system, we need to consider the truck shipping cost and the holding cost for inventory.
Given information:
- Transit time from Monterrey to Tacoma: 8 days
- Daily demand at Tacoma facility: 3 units
- Maximum capacity of a container: 27 components
- Truck shipping cost per container: $9,500
- Holding cost for units/raw materials inventory: $2/unit/day
To calculate the total logistics costs, we need to determine the number of containers shipped, the number of days between shipments, and the inventory in Tacoma.
Number of containers shipped:
Since each container has a maximum capacity of 27 components and the daily demand at Tacoma is 3 units, we can calculate the number of containers required per shipment as:
Number of containers = Daily demand / Maximum capacity per container = 3 / 27 = 0.1111 (approximately)
Number of days between shipments:
Given that the transit time from Monterrey to Tacoma is 8 days, the number of days between shipments will be the transit time plus the number of days required to empty the container at Tacoma. Assuming the container is emptied on the first day of arrival, the number of days between shipments will be 8 + 1 = 9 days.
Truck shipping cost per day:
To calculate the truck shipping cost per day, we divide the truck shipping cost per container by the number of days between shipments:
Truck shipping cost per day = Truck shipping cost per container / Number of days between shipments = $9,500 / 9 = $1,055.56 (approximately)
Pipeline stock cost per day:
The pipeline stock refers to the inventory in transit. Since the transit time from Monterrey to Tacoma is 8 days, the pipeline stock cost per day will be the transit time multiplied by the holding cost per unit per day:
Pipeline stock cost per day = Transit time x Holding cost per unit per day = 8 x $2 = $16
Inventory in Tacoma:
To calculate the inventory in Tacoma, we multiply the daily demand by the number of days between shipments:
Inventory in Tacoma = Daily demand x Number of days between shipments = 3 x 9 = 27 units
Total logistics costs:
The total logistics costs can be calculated by adding the truck shipping cost per day and the pipeline stock cost per day:
Total logistics costs = Truck shipping cost per day + Pipeline stock cost per day = $1,055.56 + $16 = $1,071.56
Therefore, the total logistics costs for the current system, assuming full containers, is approximately $1,071.56.
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based on the coase theorem, private solutions to externalities will be impossible if
Based on the Coase theorem, private solutions to externalities will be impossible if transaction costs are too high.
The Coase theorem states that private parties can solve the problem of externalities (i.e., the cost or benefit that affects a third party due to economic activities) through bargaining, without requiring government intervention. The theorem assumes that the affected parties can bargain at no cost and that property rights are clearly defined. However, in the real world, transaction costs, which refer to the time, effort, and resources spent in making an exchange, may make bargaining difficult or even impossible.
If the transaction costs are high, then private solutions to externalities are unlikely to emerge.Transaction costs can arise due to various reasons such as lack of information, high search costs, legal and bureaucratic hurdles, communication problems, and enforcement issues. In addition, power asymmetries between the parties may also affect bargaining outcomes.
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PM.64 The US government has contracted with Raytheon to build its new Peacekeeper 2 ballistic missile. The project has been laid out with durations (in weeks), predecessors, and costs included: Activity Normal Time (weeks) Crashed Time (weeks) Normal Cost Crashed Cost Predecessor(s) A 7 5 $3,600 $4,100 - B 9 7 $6,200 $7,050 A C 4 3 $2,250 $3,300 B Which activity is the least desirable crashing candidate? O A OB OC In order to reduce the project's overall duration by one week, at the lowest cost possible, which activity should you crash? O A O B O C How much would it cost to crash the project by one week? Number How much would it cost to crash the project by three weeks? Number How much would it cost to crash the project by five weeks? Number
Activity c is the least desirable crashing candidate.to crash the project by one week at the lowest cost possible, we should crash activity c.
to determine the least desirable crashing candidate and the activity to crash in order to reduce the project's duration by one week, we need to calculate the total crash cost for each activity.
crash cost per week = (crashed cost - normal cost) / (normal time - crashed time)
let's calculate the crash costs for each activity:
activity a: crash cost per week = ($4,100 - $3,600) / (5 - 7) = $500 / (-2) = -$250 (negative value)
activity b: crash cost per week = ($7,050 - $6,200) / (7 - 9) = $850 / (-2) = -$425 (negative value)
activity c: crash cost per week = ($3,300 - $2,250) / (3 - 4) = $1,050 / (-1) = -$1,050 (negative value)
since all the crash costs are negative, indicating a cost savings, we choose the activity with the lowest negative crash cost. in this case, it is activity c with a crash cost of -$1,050. to determine the cost of crashing the project by one, three, and five weeks, we need to multiply the crash cost per week by the desired reduction in duration.
crash cost for one week = $1,050 × 1 = $1,050
crash cost for three weeks = $1,050 × 3 = $3,150
crash cost for five weeks = $1,050 × 5 = $5,250
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which of the following statements is true about display rules?
The true statement about display rules is that they are cultural norms that dictate what emotions are appropriate to display in a particular culture. Display rules vary from one culture to another, which means that what is considered acceptable in one culture may be considered inappropriate in another culture.
According to sociologists, display rules are taught to individuals at a very young age, usually by their parents or other family members. They are also reinforced by socialization agents such as media, peers, and schools, and over time they become internalized and are reflected in people's emotional expressions.
For example, in some cultures, it is considered inappropriate to display negative emotions such as anger or sadness in public. In contrast, other cultures encourage the expression of emotions, including negative emotions, as a way of promoting emotional well-being.
In conclusion, display rules are cultural norms that guide what emotions are acceptable to express in a particular culture. They are reinforced through socialization and are internalized over time. Violating display rules can lead to negative social consequences, and therefore individuals are expected to conform to them within their cultural or social context.
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Explain how interest rate movements influence prices of debt securities.
The prices of debt securities are affected by interest rate movements. The price of debt securities is inversely proportional to the interest rates.
When the interest rates go up, the prices of debt securities go down, and when the interest rates go down, the prices of debt securities go up. The price of a bond is the present value of its expected cash flows. any changes in interest rates will have a significant impact on the price of debt securities.
Suppose a bond is issued with a 6% coupon rate when the current market rate is also 6%. the bond will be sold at its par value of $1000. If the interest rates rise to 7%, the bond's market value will fall to below $1000.
The bond's coupon payment will not change, so an investor would need to pay less than $1000 for the bond to receive an adequate rate of return on their investment.Similarly, if the interest rates decline, the bond's market value will increase. For example, if the interest rate falls to 5%, the bond's value will increase to more than $1000.
If the investor holds onto the bond until maturity, they will receive the bond's face value, which is $1000 in this case.Interest rate movements and debt securities are interconnected because they influence each other. It's essential to keep track of these changes because they can significantly impact an investor's financial plan.
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You must estimate the intrinsic value of Noe Technologies' stock. The end-of-year free cash flow (FCF1) is expected to be $24.50 million, and it is expected to grow at a constant rate of 5.5% a year thereafter. The company's WACC is 10.0%, it has $125.0 million of long-term debt plus preferred stock outstanding, and there are 15.0 million shares of common stock outstanding. Assume the firm has zero non-operating assets. What is the firm's estimated intrinsic value per share of common stock? Watch your rounding.
Therefore, the estimated intrinsic value per share of common stock for Noe Technologies is approximately $39.72.
To estimate the intrinsic value per share of common stock for Noe Technologies, we can use the discounted cash flow (DCF) valuation method. Here's how to calculate it:
Calculate the present value of the expected future free cash flows:
FCF1 = $24.50 million (given)
Growth rate (g) = 5.5%
WACC = 10.0%
FCF2 = FCF1 * (1 + g) = $24.50 million * (1 + 0.055) = $25.82 million
FCF3 = FCF2 * (1 + g) = $25.82 million * (1 + 0.055) = $27.26 million
Continuing this pattern, we can calculate the expected free cash flows for each future year.
Calculate the terminal value (TV) of the company at the end of Year 3:
FCF3 * (1 + g) / (WACC - g) = $27.26 million * (1 + 0.055) / (0.10 - 0.055) = $650.50 million
Calculate the present value of the terminal value:
TV / (1 + WACC)^3 = $650.50 million / (1 + 0.10)^3 = $531.09 million
Calculate the total present value of the expected free cash flows:
PV = FCF1 / (1 + WACC) + FCF2 / (1 + WACC)^2 + FCF3 / (1 + WACC)^3 + PV of TV
= $24.50 million / (1 + 0.10) + $25.82 million / (1 + 0.10)^2 + $27.26 million / (1 + 0.10)^3 + $531.09 million
= $20.45 million + $21.16 million + $22.07 million + $531.09 million
= $595.77 million
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A stock is expected to pay an annual dividend of $10 per share next year. Every year after that the dividend is expected to increase at a rate of 2% per year. The stock's price is 560. What is the implied cost of capital ANSWER Type your answer here....
The cost of capital is the return that a company must earn on its investments in order to attract enough funds to meet its financial obligations. The cost of capital is an important metric for investors because it helps them determine whether an investment in a company is likely to be profitable.
The cost of capital can be estimated using the following formula
Cost of capital = Risk-free rate + Beta * (Market risk premium + Rate of return required)
where Risk-free rate is the return on a risk-free investment (such as a U.S. Treasury bond), Beta is the measure of a company's systematic risk, Market risk premium is the additional return required to compensate investors for taking on the additional risk associated with investing in the stock market, and Rate of return required is the expected return on the company's investment.
In this case, the risk-free rate is the expected return on a U.S. Treasury bond, which is currently around 2.5%. The beta of the stock is the measure of its systematic risk, which can be estimated using historical stock prices. The market risk premium is the additional return required to compensate investors for taking on the additional risk associated with investing in the stock market.
Assuming a beta of 1.5, the cost of capital can be estimated as follows:
Cost of capital = 2.5% + 1.5 * (Market risk premium + Rate of return required)
Cost of capital = 2.5% + 1.5 * (market risk premium + 10%)
Cost of capital = 2.5% + 1.5 * 6.5%
Cost of capital = 4.75%
The stock's price is 560.
If the expected divide and next year is10, the expected dividend yield is:
Expected dividend yield = 10/560
Expected dividend yield = 0.175
The price of the stock can be calculated using the following formula:
Price of stock = Dividend yield * (1 + Dividend growth rate) / (1 - Cost of capital)
Plugging in the given values, we get:
Price of stock = 0.175 * (1 + 2% / (1 - 4.75%)) / (1 - 4.75%)
Price of stock = 0.175 * (1.02) / (1 - 4.75%)
Price of stock = 607.18
Therefore, the implied cost of capital based on the given information is approximate 607.18, or 10.2
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In the short run, economic growth is primarily determined
by:
a)potential GDP
b)spending
c)unit labor cost
d)productivity
In the short run, economic growth is primarily determined by (option B) spending.
In the short run, economic growth is driven by changes in aggregate demand, which is primarily influenced by spending. When spending increases, businesses experience higher demand for goods and services, leading to increased production and economic growth.
Increased spending can come from various sources, such as government expenditure, consumer spending, and investment. Government expenditure refers to government spending on public goods and services, infrastructure, and other programs.
Consumer spending refers to the purchases made by individuals on goods and services, including necessities and discretionary items. Investment refers to spending by businesses on capital goods like machinery, equipment, and factories.
To illustrate the impact of spending on economic growth, we can consider the concept of the multiplier effect. When there is an increase in spending, it leads to increased income for businesses, which, in turn, can result in increased employment and wages.
As workers earn higher wages, they have more disposable income to spend, further boosting aggregate demand. This cycle continues, creating a multiplier effect on the initial increase in spending, and ultimately contributing to economic growth.
In the short run, economic growth is primarily determined by spending. Increased spending stimulates aggregate demand, leading to increased production, employment, and income. This cycle of increased spending and production creates a multiplier effect that contributes to economic growth.
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During the 2020 campaign, Joe Biden proposed raising income taxes on those earning more than $400,000 per year and raising corporate taxes from about 21 percent to 28 percent.
Consider the aggregate demand-aggregate supply diagram below, which represents the macroeconomy. Suppose the market is initially at an equilibrium at point A. What effect will a tax increase have on this graph?
a.The aggregate demand curve will shift to the right.
b. The aggregate demand curve will shift to the left.
c. The short-run aggregate supply curve will shift to the left.
d.The long-run aggregate supply curve will shift to the left.
The correct answer is:
b. The aggregate demand curve will shift to the left.
A tax increase on high-income earners and corporations would reduce their disposable income and profits, leading to a decrease in consumption and investment spending. As a result, aggregate demand, which represents the total spending in the economy, would shift to the left. This shift reflects a decrease in overall demand for goods and services in the economy.
In the given scenario, the equilibrium point A represents the initial balance between aggregate demand and aggregate supply. With the tax increase reducing aggregate demand, there will be a contraction in economic activity. This contraction can lead to a decrease in output, employment, and inflationary pressures. It is important to note that the impact on the short-run or long-run aggregate supply curves is not explicitly mentioned in the question, and therefore, those options are not applicable.
In summary, a tax increase on high-income earners and corporations would cause the aggregate demand curve to shift to the left, indicating a decrease in overall demand for goods and services in the economy. This can have implications for economic activity, output, and employment in the short run.
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Which of the following is an example of physical capital that might be used by a business to install and service car tires?
A. hydraulic lifts for cars
B. the employees who install the tires
C. tire installation services
D. new tires
The following is an example of physical capital that might be used by a business to install and service car tires: A. hydraulic lifts for cars.A hydraulic lift for cars is a piece of physical capital used in the installation and maintenance of tires.
Hydraulic lifts for cars, in particular, are designed to raise cars off the ground so that workers may more easily access the underside of a vehicle, including its wheels and tires. This equipment assists in the removal and replacement of car tires, making the procedure faster and more efficient. As a result, option A is the correct answer.
In order to be considered as The hydraulic lifts for cars is a piece of physical capital used in the installation and maintenance of tires. Hydraulic lifts for cars are designed to raise cars off the ground so that workers may more easily access the underside of a vehicle, including its wheels and tires. This equipment assists in the removal and replacement of car tires, making the procedure faster and more efficient.A hydraulic lift is a significant investment for a tire installation and maintenance business. Hydraulic lifts are essential equipment in this type of business because they save time and labor costs while also providing safety for workers. Workers would have to manually remove and install tires, and this can take time, and in a busy business, time is money.Hydraulic lifts for cars are a significant piece of physical capital that businesses invest in to increase their overall profitability. By having this equipment, tire installation and maintenance businesses can take on more work, be more efficient, and better serve their customers. As a result, it is clear that A, hydraulic lifts for cars, is the correct answer to the question.
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Lopez Company reports net sales of $200,000 and cost of goods sold of $50,000. Using the numbers provided, B. Lopez Company's gross profit is:
Multiple Choice
$250,000.
$200,000.
$50,000.
$150,000.
The gross profit for Lopez company, given the net sales and the cost of goods sold would be found to be D. $ 150, 000.
How to find the gross profit ?To calculate the gross profit, we subtract the cost of goods sold from the net sales.
Gross Profit = Net Sales - Cost of Goods Sold
Given :
Net Sales = $ 200, 000
Cost of Goods Sold = $ 50, 000
Gross Profit = $200 ,000 - $ 50, 000
Subtracting the cost of goods sold from the net sales:
Gross Profit = $150,000
Therefore, B. Lopez Company's gross profit is $150,000.
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1.Identify and formulate the research problem Answer: The problem was regarding settling warranty claim disputes with its dealers. Actually, company wanted from dealers to follow the appeal process but they denied.
The research problem can be formulated as the issue of settling warranty claim disputes between a company and its dealers.
The company has established an appeal process for resolving disputes, but the dealers are refusing to follow this process. This problem is significant because it could lead to a breakdown in the relationship between the company and its dealers, which could ultimately impact sales and profitability.
In order to address this problem, the company could conduct research to better understand why the dealers are refusing to follow the appeal process. This could involve conducting surveys or focus groups with dealers to gather their feedback and opinions on the process. Additionally, the company could review its warranty policies and procedures to ensure that they are clear and easy to understand.
Ultimately, the goal of this research would be to find a way to improve the appeal process so that it is more effective in resolving disputes between the company and its dealers. This could involve making changes to the process itself, providing additional training or resources to dealers, or finding other ways to incentivize dealers to follow the process. By addressing this problem, the company could improve its relationship with its dealers and ensure that warranty claims are resolved in a fair and timely manner.
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Let f. d. p., which characterizes the proportion of profits of a certain company in a year.
Find
a.- k
b.- The probability that at least 50% of the company will have profits during the first year.
c
a. The value of K is 1.
b. 0,6065 is the probability that at least 50% of the company will have profits during the first year.
Given, f. d. p. which characterizes the proportion of profits of a certain company in a year. Let X be a random variable with a distribution function given by F(x) = 1 - e^(-kx).
a) To find k:
When X = 0, F(x) = 0.
Thus, 1 - e^(-k * 0) = 0.
On solving, e^(0) = 1.
So, k = 1.
Therefore, k = 1.
b) To find the probability that at least 50% of the company will have profits during the first year, we need to calculate P(X > 0.5).
P(X > 0.5) = 1 - P(X ≤ 0.5).
P(X ≤ 0.5) = F(0.5) = 1 - e^(-k * 0.5).
On substituting k = 1, we get:
P(X > 0.5) = 1 - P(X ≤ 0.5) = 1 - (1 - e^(-0.5)) = e^(-0.5) = 0.6065.
Therefore, the probability that at least 50% of the company will have profits during the first year is 0.6065.
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From Craig e. Johnson (2018) Meeting Ethical Challenges of Leadership book.
Kant’s Categorical Imperative: Do what’s right no matter what.
This perspective impact leaders and are connected to organizational culture. Using Kant’s Categorical Imperative: Do What’s right no matter what, describe a work situation where the leader in a high school setting clearly exhibited an ethical principle.
How did the leader’s actions align with the culture or subculture?
What were the pros and cons of relying on the demonstrated ethical principle?
Kant's Categorical Imperative: Do What's Right No Matter What is an ethical principle that has a significant impact on leaders and is connected to organizational culture.
Here is an example of a work situation where the leader in a high school setting clearly exhibited an ethical principle, using Kant's Categorical Imperative: Do What's Right No Matter What.
Suppose a high school principal, known for his excellent leadership skills, was faced with a dilemma in which he had to decide whether to expel a student who had cheated on the final exam. The principal had two options: he could either overlook the student's actions and allow him to stay in school, or he could expel the student for violating the school's honor code.
In this scenario, the leader chose to expel the student who had cheated on the exam, demonstrating a commitment to doing what is right no matter what. The principal's decision was in line with the school's culture, which values academic integrity and encourages students to work hard to achieve their goals.
The pros of relying on the demonstrated ethical principle include preserving the school's culture and values, setting a good example for students and staff, and promoting academic integrity. The cons of relying on the demonstrated ethical principle include the potential for backlash from the student and his or her family, as well as the loss of the student's potential as a contributor to the school community.
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Under federal law (18 USC Section 1033), a license applicant must obtain a letter of written consent from the commissioner's office of the following
A. Unlawful possession of narcotics
B. dishonestly and breach of trust
C. insurance and finance
D. errors and ommissions
C. insurance and finance
Under federal law (18 USC Section 1033), a license applicant in the insurance and finance industry must obtain a letter of written consent from the commissioner's office.
This requirement is in place to ensure that individuals who have been involved in certain unlawful activities, such as dishonesty and breach of trust, are not granted licenses in the insurance and finance sectors. The purpose is to maintain the integrity and trustworthiness of professionals operating in these industries. Unlawful possession of narcotics and errors and omissions are not specifically mentioned in this context.
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To reduce the electricity charges as well as obtaining a better carbon foot-print record, many industries are now using solar panels to collect solar energy and convert it to electricity. Many industries are utilizing the empty area close to their factories or even the roof top of their building to harvest the solar energy and convert and distribute it for internal use. List needs and rank them in order of importance. Quantify these needs.
Solar panels are one of the efficient ways to reduce electricity charges and obtain a better carbon footprint record. Industries can use the empty area close to their factories or even the rooftop of their buildings to collect solar energy and convert it into electricity.
There are several needs that must be considered before implementing a solar panel. These needs are ranked based on their importance and quantified as follows:1. Site analysis: Site analysis is the first and most crucial need that must be considered before installing a solar panel. A site analysis will identify whether the proposed site is suitable for solar panels or not. The suitability of the site depends on various factors such as orientation, shading, roof slope, and structural capacity. A site analysis will provide a clear picture of the feasibility of solar panels.2. Energy needs: The energy needs of the industry must be determined to size the solar panel. The sizing of the solar panel depends on the energy demand of the industry. The energy demand of the industry must be quantified in terms of kilowatt-hours per day.3. System design: The system design is the third need that must be considered. The system design must be such that it meets the energy needs of the industry. The system design includes the selection of solar panels, inverters, batteries, and other components. The system design must be such that it maximizes the energy output and minimizes the losses.4. Financial analysis: The financial analysis is the last need that must be considered. The financial analysis will determine the payback period of the solar panel. The payback period is the time taken for the solar panel to pay for itself. The financial analysis includes the cost of the solar panel, the installation cost, and the maintenance cost.
Industries must consider several needs before implementing solar panels. The site analysis is the most crucial need that must be considered, followed by energy needs, system design, and financial analysis. The quantification of these needs will ensure that the solar panel is optimized for maximum energy output and minimum losses. The quantification of these needs will also ensure that the solar panel is financially viable and has a reasonable payback period. Therefore, industries must carefully consider these needs before implementing a solar panel.
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Consider the Executive Summary as the Abstract for your portfolio. It may be the focal point during your employment review. Discuss how to prepare the Executive Summary. What are the important items to include in your summary? Are there any items you should not include in the summary?
When preparing an Executive Summary for your portfolio, it is crucial to include important items that showcase your accomplishments, skills, and overall impact. These may include a brief introduction, a summary of your key achievements, notable projects or initiatives you've led, and your core competencies. However, it is advisable to avoid including excessive details, irrelevant information, or personal opinions in the summary.
1. It is important to highlight measurable results and provide evidence of your contributions. However, it is advisable to avoid including excessive details, irrelevant information, or personal opinions in the summary.
2. An Executive Summary serves as a concise overview of your portfolio, highlighting key aspects that are relevant to your employment review. It should begin with a brief introduction that captures the reader's attention and sets the tone for the rest of the summary. This introduction could include your professional background, experience, and any unique qualifications you possess.
3. Next, focus on summarizing your key achievements. Highlight notable accomplishments that demonstrate your value and impact within your field or industry. Include measurable results whenever possible, such as revenue growth percentages, cost savings achieved, or improvements in efficiency or productivity. This will provide concrete evidence of your contributions and help quantify your success.
4. Additionally, consider mentioning any significant projects or initiatives you have led or contributed to. This could include successful product launches, major client acquisitions, process improvements, or cross-functional collaborations. Emphasize the scope and complexity of these projects, as well as the outcomes achieved.
5. Lastly, include a section on your core competencies. This should highlight the skills, knowledge, and abilities that set you apart and make you an asset to your organization. Focus on both technical and soft skills relevant to your field, such as leadership, problem-solving, communication, and adaptability.
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On August 1, 2020, Tempest Company bought a property insurance for 450,000 pesos. The insurance policy is good for 3 years. Question 36 1 Point How much is the balance of prepaid insurance as of December 31, 2021? Question 37 How much is the balance of prepaid expense as of December 31, 2021? Question 38 How much is the balance of prepaid insurance as of December 31,2022?
The balance of prepaid insurance as of December 31, 2021, is PHP 300,000.Tempest Company bought a property insurance for PHP 450,000 on August 1, 2020.
The insurance policy is valid for three years. As of December 31, 2020, one year had passed since the insurance had been purchased. Prepaid insurance would then be equal to the total insurance cost divided by the number of years covered by the insurance policy; thus, prepaid insurance would be PHP 150,000 (i.e., PHP 450,000/3 = PHP 150,000). As of December 31, 2021, two years had passed since the insurance had been purchased,.
therefore, the balance of prepaid insurance would be PHP 300,000 (i.e., PHP 450,000/3 x 2 = PHP 300,000).Answer: The balance of prepaid insurance as of December 31, 2021, is PHP 300,000.Question 37: How much is the balance of prepaid expense as of December 31, 2021?Answer:The balance of prepaid expenses as of December 31, 2021, is PHP 0. LONG ANSWERPrepaid expenses are funds that are paid in advance for goods or services that will be received in the future. Prepaid expenses are classified as assets because they represent future economic benefits that a company will get. Insurance is usually prepaid as the premium is usually paid in advance. In this case, Tempest Company paid for three years of insurance coverage, which means that each year's portion of the insurance premium would be treated as an asset. The balance of prepaid expense as of December 31, 2020, is PHP 150,000 (i.e., PHP 450,000/3 = PHP 150,000). Since one year has passed, the balance of prepaid expense as of December 31, 2021, would be PHP 0 (i.e., PHP 150,000 - PHP 150,000 = PHP 0). The balance of prepaid expense as of December 31, 2021, is PHP 0.Question 38: How much is the balance of prepaid insurance as of December 31, 2022? The balance of prepaid insurance as of December 31, 2022, is PHP 0. As of December 31, 2022, the insurance coverage for Tempest Company will have expired. The balance of prepaid insurance as of December 31, 2022, would be zero because all the insurance coverage purchased would have been used up (i.e., PHP 450,000/3 x 3 = PHP 450,000). The portion of the insurance premium that has not been used will be recognized as an expense or will not be recorded in the books of accounts because it is no longer applicable. The balance of prepaid insurance as of December 31, 2022, is PHP 0.
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Brief introduction to Apple company and sector it operates in, including a summary of the past 3 years’ revenue, operating profits and general overview of the business’s operational activities and brief with SWOT analysis, and PESTEL Analysis
An outline of one strategic business issue that Apple recently, faced; contextualised within the organisational setting, including an overview of relevant strategic decisions that led to their current position (discussed through relevant literature, tools and techniques)
Critical analysis of why the issue has strategic implications and its impact on its stakeholders
Apple is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. Apple is in the technology sector and operates in the manufacture of smartphones, laptops, tablets, personal computers, and smartwatches.
Apple is the largest information technology company in the world by revenue and profit. Apple's financial performance in the past three years (2018-2020) has been impressive with revenue of $265.6 billion in 2018, $260.2 billion in 2019, and $274.5 billion in 2020. Apple has consistently maintained a high level of operating profits of $70.9 billion in 2018, $63.9 billion in 2019, and $63.9 billion in 2020.
SWOT Analysis
Strengths:
-Strong brand image
-Innovative products and designs
-Strong distribution channels
-Effective supply chain management
Weaknesses:
-Reliance on few products
-High cost structure
Opportunities:
-Growing demand for wearable technology
-Increasing demand in developing countries
-Expanding into new markets
Threats:
-Intense competition
-Rapid technological changes
PESTEL Analysis
Political factors:
-Different tax rates in different countries
-EU's regulatory framework
Economic factors:
-Global economic uncertainty
-Slowdown in the Chinese economy
-Currency fluctuations
Social factors:
-Changing lifestyles and preferences
-Demographic shifts
Technological factors:
-Rapid technological advances
-Increasing focus on automation
Environmental factors:
-Increasing focus on sustainable business practices
Legal factors:
-Intellectual property laws
-Labor laws
Strategic Business Issue
One of the strategic business issues faced by Apple is the decline in iPhone sales. Apple's iPhone sales have been declining in recent years, which has led to a decline in revenue. This issue can be attributed to various factors, such as increasing competition, a slowdown in the Chinese economy, and a lack of innovation. Apple's strategic decision to increase the prices of iPhones has also contributed to the decline in sales.
Impact of the Issue on Stakeholders
The decline in iPhone sales has a significant impact on Apple's stakeholders, such as shareholders, customers, suppliers, and employees. Shareholders have seen a decline in their returns on investment, and customers are now considering other brands due to high prices and lack of innovation.
Suppliers are also affected as they have to deal with the decrease in demand, while employees face uncertainty due to the decline in revenue.
The issue has strategic implications as it affects Apple's market share, revenue, and profitability. The decline in iPhone sales also threatens Apple's brand image, which is built on innovation and premium products.
The issue highlights the importance of innovation and diversification, which are essential in the technology industry.
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