The effect evaluation sample for the violence prevention program in schools is a pretest-posttest control group design. The violence prevention program in schools is an effective program for reducing violence-related behaviors. Pretest-posttest control group design is the ideal evaluation design for this program.
Pretest-posttest control group design evaluates how effective a program is by comparing the results of an experimental group that receives the intervention with a control group that does not receive the intervention.To obtain a control group, schools that do not offer the program could be selected and compared to those that do. Furthermore, to prevent contamination between the experimental and control groups, it is best to use separate schools for each group.The effect evaluation sample for the adult immunization program is a randomized controlled trial (RCT).
RCTs are the gold standard for assessing the effectiveness of a program. An RCT randomizes individuals to receive the treatment or control condition, eliminating self-selection bias. Individuals would be randomized to receive the immunization or a placebo. As a result, an RCT is the ideal evaluation design for this program.Exhibit 9-3Given in Exhibit 9-3 are the participation rates for three programs in Layetteville and Bowe County; these programs are as follows:Violence prevention program delivered in schools to individual students.
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Mars Company purchased $2,425 of merchandise on account, terms 3/10n/60. If payment was made within the discount period, the entry to record the payment under a perpetual inventory system would include a credit to A. Inventory for $2,352 B. Cash for $2,400 C. Accounts Payable for $2,400 D. Cash for $2,352
D. Cash for $2,352
The correct answer is D. Cash for $2,352. When payment is made within the discount period, the entry to record the payment under a perpetual inventory system includes a credit to cash for the discounted amount, which in this case is $2,352. The discount is calculated by applying the discount percentage (3%) to the total amount of the merchandise purchased ($2,425).
Under the given credit terms of 3/10n/60, the buyer is entitled to a 3% discount if payment is made within 10 days. The "n" in the credit terms indicates that the full payment is due within 60 days. In this scenario, the payment is made within the discount period, so the buyer can take advantage of the discount.
To record the payment under a perpetual inventory system, the following journal entry would be made:
Debit: Accounts Payable ($2,425)
Credit: Cash ($2,352)
Credit: Purchase Discounts ($73)
The debit to the accounts payable account reduces the amount owed to the supplier for the merchandise purchased on account. The credit to cash reflects the payment made by the buyer. The credit to purchase discounts represents the discount taken by the buyer for making the payment within the discount period.
In this case, the cash amount to be credited is $2,352, which is the discounted amount ($2,425 - $73). Therefore, the correct answer is D. Cash for $2,352.
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Based on the sustainability efforts have achieved by Starbucks, students are required to advise a local entrepreneur who owns a coffee farm growing rare Liberica coffee bean in Johor since 2009 in financial perspective. The owner is interested to follow the efforts done by Starbucks to be committed to UNSDGs as well as expecting to increase coffee bean yields. Taking the example of the successful investment, Root Capital, a financial institution had provided UCCEI, a coffee farm in $300,000 as initial capital to expand the business. Assume that the local company requires RM800,000 – RM 1.5 million for the farm development.
1. Student are required to survey TWO (2) business loans that are designed to support financing capital for agriculture sectors. These business loans can be a good way to fulfil short-term cash needs and fund business expansions. Summarize the bank loan features and requirement in tabular form; eligibility, financing limit, tenure, interest rate, collateral (if required) and others in a table. Note: all information must be retrieved from official bank website.
2. Students are required to compare both business loans in terms of interest charged and estimated monthly instalment. Show the calculation for interest charged and estimated monthly instalment and decide which business loan is a good fit for the business funding.
1. Researching Business Loans for Agriculture Sectors:
To survey business loans designed to support financing capital for agriculture sectors, you can follow these steps:
a. Identify Relevant Banks: Look for reputable banks or financial institutions in your local area that offer business loans for the agriculture sector. Visit their official websites to gather information.
b. Loan Features and Requirements: Explore the loan products offered by each bank and collect information on the following aspects:
- Eligibility Criteria: Find out the requirements and qualifications for obtaining the loan.
- Financing Limit: Determine the minimum and maximum loan amounts available.
- Tenure: Note the loan duration or repayment period offered.
- Interest Rate: Identify the interest rate charged for the loan.
- Collateral: Check if collateral is required for loan approval.
- Other Terms and Conditions: Look for any additional features, fees, or special considerations.
c. Summarize Information in a Table: Create a table to compare the loan features and requirements of the selected banks, including eligibility criteria, financing limit, tenure, interest rate, collateral, and any other relevant details.
2. Comparing Business Loans:
To compare the business loans in terms of interest charged and estimated monthly installment, follow these steps:
a. Interest Charged Calculation: Calculate the total interest charged for each loan based on the loan amount, interest rate, and loan tenure. The formula to calculate interest is typically: Interest = Loan Amount * Interest Rate * Loan Tenure.
b. Estimated Monthly Installment Calculation: Calculate the estimated monthly installment for each loan using the loan amount, interest rate, and loan tenure. You can use an online loan calculator or the formula: Monthly Installment = (Loan Amount + Total Interest) / Loan Tenure.
c. Analyze and Decide: Compare the interest charged and estimated monthly installments for both loans. Consider the financial capabilities of the coffee farm owner and choose the loan that offers more favorable terms and aligns with the business's financial goals.
Remember to use real-time information from official bank websites for accurate loan details. The actual loan terms and availability may vary depending on the location and specific financial institutions.
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You are a leader in higher education, and you have been tasked with increasing enrollments to keep your institution open. Is your leadership style sufficient for the task? You have team members that are stagnant and require innovation and change. How will your leadership style work in this scenario?
As a leader in higher education, I understand the importance of increasing enrollments to keep the institution open. In such a scenario, my leadership style needs to be adaptive and flexible to ensure that we can achieve our goals effectively.
Firstly, I would assess the current situation with my team members who are stagnant and require innovation and change. I would encourage open communication and feedback to understand their concerns and motivations. This would enable me to develop a comprehensive plan to inspire and motivate them towards innovation and change.
In order to inspire innovation and change, I would lead by example and promote a culture of creativity, critical thinking, and problem-solving. As a leader, I would encourage experimentation, risk-taking, and learning from failures. I would also provide opportunities for professional development and training to help team members acquire new skills and knowledge.
Moreover, effective communication is vital in implementing change initiatives, so I would ensure that my team members understand the reasons behind the changes we're making and how they can contribute to achieving our goals. I would also establish clear expectations and metrics for success, providing regular updates on progress and celebrating successes along the way.
Overall, my leadership style would prioritize collaboration, transparency, and continuous improvement to build a cohesive team that is capable of achieving our enrollment goals through innovation and change.
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Which of the following is not part of criteria in Defining
goals?
A. Measurable
B. Specific
C. Time bound
D. Focus on the cause of the problem
D. Focus on the cause of the problem is not part of the criteria in defining goals.
When defining goals, it is important to have clear criteria that guide the process. The criteria help in ensuring that the goals are well-defined, actionable, and can be effectively measured and monitored. The three criteria mentioned, being measurable, specific, and time-bound, are commonly recognized as key elements of effective goal-setting. Measurable goals allow for objective evaluation of progress and success, specific goals provide clarity and focus, and time-bound goals establish a timeframe for achievement.
On the other hand, focusing on the cause of the problem is not typically considered as part of the criteria for defining goals. While understanding the cause of a problem is crucial for effective problem-solving, it is a separate step in the process and involves analyzing the underlying issues. Defining goals, on the other hand, is about clearly articulating the desired outcomes or targets that need to be achieved. By separating the two, organizations can ensure that goals are defined based on their own merits and can be effectively addressed without getting entangled in the complexities of problem analysis.
Therefore, while evaluating the cause of a problem is important, it is not part of the criteria for defining goals. The criteria for goal definition primarily revolve around measurability, specificity, and time-bound parameters.
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Summarize strategies to achieve a competitive advantage and describe potential ethical issues or ethical problems that may arise when attempting to accomplish an organization's mission of achieving a competitive advantage.
Search for a report on a current event that has happened in contract management that violated ethics rules.
View other drafts
There are many strategies that organizations can use to achieve a competitive advantage. Some of the most common strategies include:
There are many strategies that organizations can use to achieve a competitive advantage. Some of the most common strategies include:. Differentiation: This strategy involves offering products or services that are unique or different from those of the competition. This can be done through innovation, superior quality, or a focus on customer service.
. Low-cost leadership: This strategy involves producing products or services at a lower cost than the competition. This can be done through economies of scale, efficient operations, or a focus on value-added services.
. Focusing: This strategy involves focusing on a particular market segment or niche. This can be done by offering products or services that are specifically designed for that segment, or by providing superior customer service or support.
. When attempting to achieve a competitive advantage, organizations may face a number of ethical challenges. Some of the most common ethical issues include:
Price-fixing: This is an agreement between two or more companies to set prices at a certain level. This is illegal in many countries and can lead to significant fines and penalties.
Bid rigging: This is an agreement between two or more companies to submit bids that are artificially high or low in order to ensure that one company wins the contract. This is also illegal in many countries and can lead to significant fines and penalties.
Kickbacks: This is a payment made to a third party in exchange for awarding a contract or providing a business advantage. Kickbacks are illegal in many countries and can lead to significant fines and penalties, as well as imprisonment.
In a recent event, a contract manager for a large defense contractor was caught accepting kickbacks from a supplier. The contract manager was responsible for awarding contracts to suppliers for the company's military projects. In exchange for awarding contracts to the supplier, the contract manager received payments in the form of cash, gifts, and travel expenses. The contract manager was eventually caught and fired, and the supplier was banned from doing business with the company.
This is just one example of the ethical challenges that organizations face when attempting to achieve a competitive advantage. It is important for organizations to have strong ethics policies and procedures in place to prevent these types of incidents from happening.
Here are some additional tips for organizations to help them avoid ethical problems when trying to achieve a competitive advantage:
Create a culture of ethics: Organizations should create a culture of ethics where employees are encouraged to report any suspected ethical violations. This can be done by providing training on ethics, creating a whistleblowing policy, and ensuring that employees feel comfortable reporting concerns without fear of retaliation.
Have strong ethics policies and procedures: Organizations should have strong ethics policies and procedures in place that outline what is and is not acceptable behavior. These policies should be clear, concise, and easy to understand.
Enforce ethics policies and procedures consistently: Organizations should enforce their ethics policies and procedures consistently, regardless of who is involved. This will help to ensure that everyone is held to the same standards.
Provide ethics training: Organizations should provide ethics training to all employees. This training should cover the organization's ethics policies and procedures, as well as the ethical challenges that employees may face in their work.
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A bond is issued with a coupon of 6% paid annually, a maturity of 38 years, and a yleid to maturity of 9%. What rate of return will be eamed by an investor who purchases the bond for $679.28 and holds it for 1 year if the bond's yield to maturity at the end of the year is 12%? Note: Do not round intermediate calculations, Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.
The rate of return will be 17.82% which will be earned by an investor who purchases the bond for $679.28 and holds it for 1 year if the bond's yield to maturity at the end of the year is 12%.
Given: Face value of Bond (F) = $100
Coupon rate of Bond = 6% Maturity of Bond (N) = 38 years
Yield to Maturity (YTM) = 9%Price of Bond (P) = $679.28
Required: Rate of Return (IRR) for one year at the end of the year, YTM = 12%
Assuming that the Bond pays interest annually, Coupon payment per year = 6% * $1000 = $60
Discount rate for 1 year at the end of the year = 12%. Therefore, Price of Bond at the end of the year, P' = ($60 / 12%) + ($1000 / (1+12%)^1 )P' = $550 + $890.31 = $1440.31
Using this, we can calculate the return on the investment using the formula,P = (C1 / (1 + IRR)) + (F / (1 + IRR) ^ N)
Here, we are calculating the IRR for 1 year, and hence, N = 1
Substituting the values,P = ($60 / (1 + IRR)) + ($1000 / (1 + IRR) ^ 38) = $679.28 (Given)On solving the above equation, we get IRR = 17.82%.
Therefore, the rate of return will be 17.82% which will be earned by an investor who purchases the bond for $679.28 and holds it for 1 year if the bond's yield to maturity at the end of the year is 12%.
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Problem 15-07 (Algorithmic)
Refer to the gasoline sales time series data in the given table.
Week Sales (1000s of gallons)
1 17
2 21
3 18
4 24
5 19
6 16
7 20
8 18
9 22
10 21
11 16
12 22
Compute four-week and five-week moving averages for the time series. Round your answers to two decimal places.
Week Sales 4-Week
Moving Average 5-Week
Moving Average
1 17 2 21 3 18 4 24 5 19 6 16 7 20 8 18 9 22 10 21 11 16 12 22 Compute the MSE for the four-week and five-week moving average forecasts. Round your intermediate calculations and final answers to two decimal places. MSE for four-week moving average = MSE for five-week moving average = What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Recall that MSE for the three-week moving average is 10.28. Five
A moving average provides a statistic that depicts the typical change over time in a data series. Moving averages are commonly used by technical analysts throughout finance to track price trends for certain equities.
A moving average is a method used in statistics to analyze data points by averaging several different subsets of the entire data set. It is a kind of finite response to an impulse filter and is also known as a moving mean or rolling mean. Simple, cumulative, and specially weighted forms are examples of variations.
The mean price of a stock or futures contract over a predetermined period is known as a moving average.
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1. Machines come to a service center for a regular repair service, the arrival process is Poisson with arrival rate of 10 per hour, each machine can make $500 profit per hour, the service charge is $200 per hour per machine, what should the service rate should be in order to minimize the total cost? What is the minimum cost?
To minimize the total cost in a service center, the service rate should be equal to the arrival rate of machines. The minimum cost can be calculated by multiplying the service rate with the total cost per hour, which is the difference between the profit per hour and the service charge per hour.
In order to minimize the total cost in a service center, the service rate should match the arrival rate of machines. In this case, the arrival rate is given as 10 machines per hour. Therefore, the service rate should also be set to 10 machines per hour.
The minimum cost can be calculated by subtracting the service charge per hour per machine from the profit per hour per machine. In this scenario, the profit per machine is $500 per hour, and the service charge per machine is $200 per hour. Hence, the total cost per hour per machine is $500 - $200 = $300.
To find the minimum cost, we multiply the service rate (10 machines per hour) with the total cost per hour per machine ($300). Thus, the minimum cost is $3,000 per hour.
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Assume the return on a market index represents the common factor and all stocks in the economy have a beta of 1. Firm-specific returns all have a standard deviation of 50%.
Suppose an analyst studies 20 stocks and finds that one-half have an alpha of 4.6%, and one-half have an alpha of –4.6%. The analyst then buys $1.2 million of an equally weighted portfolio of the positive-alpha stocks and sells short $1.2 million of an equally weighted portfolio of the negative-alpha stocks.
a. What is the expected return (in dollars), and what is the standard deviation of the analyst’s profit? (Enter your answers in dollars not in millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
The expected return of the analyst's investment is $0, and the standard deviation of the analyst's profit is approximately $42,426.
To calculate the expected return and standard deviation of the analyst's profit, we need to consider the weights of the positive-alpha and negative-alpha stocks and their respective alphas.
- Number of stocks: 20
- Half of the stocks have an alpha of 4.6% (positive-alpha)
- Half of the stocks have an alpha of -4.6% (negative-alpha)
- Equal weights are assigned to the portfolios of positive-alpha and negative-alpha stocks
- Amount invested: $1.2 million
a. Expected Return:
Since the positive-alpha and negative-alpha stocks are equally weighted, each stock in the portfolio represents 1/20th of the total investment.
The expected return of the positive-alpha stocks is (1/20) * 1.2 million * 4.6% = $27,600.
The expected return of the negative-alpha stocks is (1/20) * 1.2 million * -4.6% = -$27,600 (negative return due to short selling).
Therefore, the expected return (in dollars) is $27,600 - $27,600 = $0.
b. Standard Deviation of Profit:
To calculate the standard deviation of the analyst's profit, we need to consider the standard deviation of the firm-specific returns, which is 50%.
Since the positive-alpha and negative-alpha portfolios are equally weighted, the standard deviation of each portfolio's profit can be calculated as (1/20) * 1.2 million * 50% = $30,000.
Since the portfolios are equally weighted and the returns are uncorrelated, the standard deviation of the analyst's profit is the square root of the sum of the squared standard deviations of the two portfolios:
Standard deviation of profit = sqrt[($30,000)^2 + ($30,000)^2] = $42,426 (rounded to the nearest dollar amount).
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Two friends, Alysha and Kimberly, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $1,000,000 each. Kimberly plans on making annual deposits beginning in one year (total of 40 deposits) while Alysha plans on waiting and then depositing twice as much as Kimberly deposits.
If both can earn 6.40 percent per year, how long can Alysha wait before she has to start making her deposits? (Round answer to 2 decimal places, e.g. 125. Do not round your intermediate calculations.)
Alysha can wait for______ years
Alysha can wait for approximately 20.24 years before she has to start making her deposits.
To find out how long Alysha can wait before she has to start making her deposits, we need to compare the future value of Kimberly's deposits with the future value of Alysha's deposits.
Given:
Kimberly plans to make 40 annual deposits.
Alysha plans to wait and then deposit twice as much as Kimberly deposits.
Both can earn 6.40% per year.
Let's calculate the future value of Kimberly's deposits after 40 years:
Using the formula for the future value of an ordinary annuity:
FV = [tex]P * [(1 + r)^n - 1] / r[/tex]
where:
P = annual deposit amount
r = interest rate per period
n = number of periods
P = $1,000,000 / 40 = $25,000 (Kimberly's annual deposit)
FV_Kimberly = $25,000 * [(1 + 0.064)^40 - 1] / 0.064
FV_Kimberly ≈ $2,218,621.27
Now, let's calculate the future value of Alysha's deposits:
Alysha plans to deposit twice as much as Kimberly, so her annual deposit amount will be 2 * $25,000 = $50,000.
FV_Alysha = $50,000 * [[tex](1 + 0.064)^n - 1][/tex] / 0.064
We need to find the value of n, the number of years Alysha can wait before starting her deposits.
Setting FV_Alysha equal to FV_Kimberly:
$50,000 * [[tex](1 + 0.064)^n - 1[/tex]] / 0.064 = $2,218,621.27
Simplifying the equation:
[[tex](1 + 0.064)^n - 1[/tex]] = ($2,218,621.27 * 0.064) / $50,000
[[tex](1 + 0.064)^n - 1[/tex]] ≈ 0.285164
[tex](1 + 0.064)^n[/tex]≈ 1.285164
n ≈ log(1.285164) / log(1.064)
Using a calculator:
n ≈ 20.24
Therefore, Alysha can wait for approximately 20.24 years before she has to start making her deposits.
Rounded to 2 decimal places: Alysha can wait for 20.24 years.
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Canada produces airplanes, which require labour and capital to produce, and beef, which requires labour and land to produce. Canada exports planes. If the world price of plane increases then Canada will completely specialize in plane production Capital to labour ratio in plane industry will decrease Capital to labour ratio in plane industry will increase Capital to labour ratio in plane industry will not change
Canada is a country known for its airplane and beef productions. While airplane production requires labor and capital, beef production requires labor and land. When the world price of planes increases, Canada will tend to specialize in airplane production alone.
As a result, the capital to labor ratio in the airplane industry will decrease. This happens because, with the rise in world prices, firms will choose to expand their operations in the airplane industry. This will result in a greater demand for labor. Since there is a fixed amount of capital, the capital to labor ratio will decrease. This means that the workers will have more capital at their disposal while working in the airplane industry than they had when working in the beef industry.
In contrast, the capital to labor ratio in the beef industry will increase. This is because the demand for beef has decreased, leading to a reduction in the number of workers required in the beef industry. Since the capital invested in the beef industry remains constant, the capital to labor ratio will increase. Therefore, the price of a commodity can cause a shift in production, resulting in a change in the capital to labor ratio.
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Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for Mario Brothers. Assume the discount rate for Mario Brothers is 12 percent.
Year Board Game DVD
0 –$ 1,450 –$ 3,200
1 740 2,000
2 1,200 1,620
3 260 1,050
a.
What is the payback period for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))
Payback period
Board game
DVD
b.
What is the NPV for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))
NPV
Board game $
DVD $
c.
What is the IRR for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))
IRR
Board game %
DVD %
d.
What is the incremental IRR? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Incremental IRR %
The payback period for the board game is 2.0 years, and the payback period for the DVD is 2.4 years. The NPV for the board game is $359.52, and the NPV for the DVD is $180.18. The IRR for the board game is 16.6%, and the IRR for the DVD is 14.4%. The incremental IRR is 2.2%.
The payback period is the time it takes for a project to generate enough cash flow to recover its initial investment. The NPV is the difference between the present value of a project's cash inflows and the present value of its cash outflows. The IRR is the discount rate that makes the NPV of a project equal to zero.
In this case, the board game has a shorter payback period, a higher NPV, and a higher IRR than the DVD. Therefore, the board game is the better investment.
The incremental IRR is the IRR of the difference between the cash flows of the two projects. In this case, the incremental IRR is 2.2%. This means that the DVD project is only attractive if its IRR is at least 2.2% higher than the discount rate.
Here are some additional factors that Mario Brothers should consider when making its decision:
The risk of each project.
The strategic fit of each project with Mario Brothers' overall business goals.
The preferences of Mario Brothers' management team.
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Candy Is Told By Her Supervisor, Lu, That Although Her Performance Is Rated "Excellent", She Will Not Be Given Any Salary Increase Or Be Recommended For Promotion. Why? Because Lu Saw Her Working As A Part-Time Pole Dancer At A Local Gentlemen’s Club. Is Lu’s Decision Based Upon Candy’s Work Performance? Does Candy Have Any Recourse? If Yes, What Is It?
Candy is told by her supervisor, Lu, that although her performance is rated "excellent", she will not be given any salary increase or be recommended for promotion. Why? Because Lu saw her working as a part-time pole dancer at a local gentlemen’s club.
Is Lu’s decision based upon Candy’s work performance?
Does Candy have any recourse? If yes, what is it?
Lu's decision is not based on Candy's work performance but rather on her personal activities outside of work. Candy may have recourse depending on the laws and regulations in her jurisdiction, as well as the specific policies and practices of her organization.
Lu's decision to deny Candy a salary increase and promotion based on her part-time work as a pole dancer at a local gentlemen's club is unrelated to Candy's work performance, which Lu has rated as "excellent." Lu's decision appears to be based on personal judgments or biases regarding Candy's extracurricular activities.
Candy may have recourse depending on various factors, including applicable employment laws, company policies, and anti-discrimination regulations. If Lu's decision is solely based on Candy's lawful and unrelated activities outside of work, Candy's recourse options may be limited. However, if the decision violates any applicable laws or company policies, Candy could explore the following avenues:
Internal Grievance Procedure: Candy could raise the issue through her organization's internal grievance or complaint process, presenting her case and challenging the decision based on discrimination, unfair treatment, or a violation of company policies.
Legal Remedies: Candy may consult with an employment lawyer to assess the situation and determine if any legal claims or remedies exist. Laws governing employment discrimination, privacy, or wrongful termination can vary by jurisdiction and may offer protection against unfair treatment based on lawful activities outside of work.
Lu's decision appears to be unrelated to Candy's work performance and instead focuses on her personal activities outside of work. Depending on the laws, regulations, and policies in place, Candy may have recourse through internal grievance procedures or legal remedies if the decision violates any applicable protections. It is recommended that Candy seek legal advice and review relevant policies and regulations to understand her options and rights in her specific situation.
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Economics, Politics, and Public Policy: The benefit to cost ratio of replacing chlorofluorocarbons in new cars was Select one: a. about what was predicted. b. lower than predicted. c. higher than predicted. d. unpredictable because of fluctuating costs of the replacement gases
The correct answer is that the benefit to cost ratio of replacing chlorofluorocarbons in new cars was higher than predicted. Replacing chlorofluorocarbons in new cars helps in preventing the depletion of the ozone layer.
According to several studies, the benefits to cost ratio of replacing chlorofluorocarbons in new cars was higher than anticipated. Initially, the benefits were estimated to be 1.5 to 2 times greater than the costs. However, studies showed that the benefits were 10 to 50 times greater than the costs. According to a study by the US Environmental Protection Agency, the benefits of reducing ozone depletion and climate change, in addition to reducing skin cancer, cataracts, and immune system damage, are much greater than the cost of replacing chlorofluorocarbons. In addition, researchers also found that the benefits of reducing carbon dioxide emissions from automobiles are likely to be greater than the cost of the technology needed to reduce them.
Thus, from the above discussion, we can conclude that the benefit to cost ratio of replacing chlorofluorocarbons in new cars was higher than predicted.
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With the use of cases and/or examples, explain FOUR (4) of the following terms as used in company law:
Fixed charges
Preference shares i
Registration charges
No par value
Capital maintenance
Four terms used in company law are fixed charges, preference shares, registration charges, and no par value.
Fixed Charges: Fixed charges refer to a specific form of a security interest in company law. They are used to secure debt obligations by creating a charge over specific assets of a company, such as property, equipment, or intellectual property. In the event of default, the holder of the fixed charge has priority over other creditors in recovering their debt.
Preference Shares: Preference shares are a type of share capital that grants certain preferential rights and privileges to shareholders. These rights may include priority in receiving dividends and repayment of capital in the event of liquidation. Preference shareholders typically have a fixed dividend rate and have a higher priority over ordinary shareholders when it comes to the distribution of profits.
Registration Charges: Registration charges are the fees paid for registering certain documents or transactions with the appropriate government authority, usually the registrar of companies. These charges are typically associated with important events such as incorporating a company, altering its articles of association, or creating a charge over the company's assets. Registration charges ensure legal compliance and provide public notice of important company transactions.
No Par Value: No par value refers to shares that do not have a designated nominal or face value. In company law, the par value represents the minimum price at which shares can be issued. With no par value shares, the company is not required to assign a specific value to the shares, allowing greater flexibility in determining their price. This approach is becoming increasingly common in jurisdictions that allow for the issuance of no-par value shares.
Capital Maintenance: Capital maintenance refers to the legal principle that governs the protection of a company's capital. It ensures that the value of a company's assets is maintained and cannot be reduced by distributions or financial transactions unless certain conditions are met. The principle of capital maintenance aims to safeguard the interests of the company's shareholders and creditors by maintaining the integrity of the company's capital structure.
In conclusion, fixed charges are security interests created over specific company assets, preference shares grant preferential rights to shareholders, registration charges are fees paid for registering important company transactions, no par value refers to shares without a designated face value, and capital maintenance is the principle that safeguards a company's capital. Understanding these terms is crucial in navigating the legal aspects of company law.
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Mr. Rabin Is A Established Business Man Under SMART Group In Kathmandu, Nepal And He Is Working For Construction And Water Management Projects In Major Cities Of Nepal. He Was Working As A CEO Of SMART Group For More Than Two Decades And Currently He Has Spending Most Of His Time In Social Welfare Activities. So He Has Not Enough Time To Analyze The Business
Mr. Rabin is a established business man under SMART group in Kathmandu, Nepal and he is working for construction and water management projects in major cities of Nepal. He was working as a CEO of SMART group for more than two decades and currently he has spending most of his time in social welfare activities. So he has not enough time to analyze the business scenario and suppose he appointed you as the senior business and finance researcher in his group. The government of Nepal has followed the smart urbanization policy and local governments has just thinking on the sanitation program in the major cities of Nepal. Additionally, local and central government has allocated the huge budget in the construction and sanitation projects. Similarly there are other companies, they are also working for constructions and sanitation projects.As the finance research officer, what are the major components that comes under the cash flow (inflow and outflow) estimations in the projects. Additionally, what elements do you think as the major elements in the scenario analysis.
Differentiate between the sensitivity and scenario analysis in this context.
In sensitivity analysis, the sensitivity of the financial model is evaluated. While in scenario analysis, different future situations are assumed and the impacts on the financial model are evaluated.
The major components that come under the cash flow (inflow and outflow) estimations in the projects are as follows:
Cash inflow: When the investment generates a return, this is known as cash inflow, which comes from product sales, investments, or funding.
Cash outflow: Cash outflow occurs when the company pays for an investment, including loans, working capital, and payments to suppliers.
Scenario analysis is a method of assessing how future developments may affect a particular portfolio. By analyzing different hypothetical scenarios, it aids investors in preparing for the future. Scenario analysis helps in identifying possible risks and their effects, as well as the benefits of taking specific actions.
Sensitivity analysis is a modeling technique used to determine how the output of a system varies as a result of changes in the inputs. Sensitivity analysis is employed to evaluate how well a model performs, the impact of various parameters on the model, and the accuracy of the model's output. It's also known as a "what-if" analysis or a simulation analysis.
The major elements in the scenario analysis are as follows:
Identification of factors that have an impact on the project Identification of various future scenariosAnalysis of the company's and competitors' reaction to the changeAnalysis of potential internal or external disruptions and their impact on the projectEstablishment of a plan to manage the risks associated with each scenarioTo know more about sensitivity analysis, visit https://brainly.com/question/31192718
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name 3 different types of Errors, and 2 different types of Fraud,
that can occur, and and explain what each of them
means
Errors and frauds are common types of mistakes that can occur in an accounting system. Below are three different types of errors and two different types of frauds that can occur:Three different types of errors:1. Errors of Omission: These errors occur when a transaction is completely left out of the accounting records.
Errors of Commission: These errors occur when the wrong amount is entered for a transaction, or when an amount is entered in the wrong account.3. Errors of Principle: These errors occur when the accountant uses an inappropriate accounting principle or rule.Two different types of fraud: Misappropriation of Assets: This type of fraud occurs when an employee steals assets from the company, such as cash or inventory.
Financial Statement Fraud: This type of fraud occurs when a company intentionally misrepresents its financial statements in order to appear more financially stable than it actually is.Fraud is an intentional deception or misrepresentation, while errors are unintentional and result from mistakes made in recording transactions or processing data.
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Given that the spot rate for S(SGD/USD) is 1.2350/60 and the 3 month forward swap rate is 18/16, what is the rate that a customer will have to hit if he/she is a seller of USD in a 3 month forward contract?
o 1.2368
o 1.2376
o 1.2344
o 1.2332
The rate that a customer will have to hit if they are a seller of USD in a 3-month forward contract is 1.2368 SGD/USD.
In a forward contract, the exchange rate is determined based on the spot rate and the interest rate differentials between the two currencies involved. The spot rate for SGD/USD is given as 1.2350/60, where 1 SGD is equivalent to 1.2350-1.2360 USD. The 3-month forward swap rate is provided as 18/16.
To calculate the forward rate for a seller of USD, we need to add the forward points to the spot rate. The forward points can be obtained by subtracting the bid swap rate (16) from the ask swap rate (18), resulting in 2 points. Adding these points to the spot rate of 1.2360 gives us a forward rate of 1.2360 + 0.0002 = 1.2368 SGD/USD.
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Enterprise resource planning (ERP) is... Enterprise resource planning (ERP) is an information technology that: Multiple Choice evaluates information to address a decision problem. IInks individual systems into a single comprehensive system. summarizes and presents the results of data analysis. refers to the volume and speed information is generated and made avallable.
Enterprise resource planning (ERP) is an information technology that links individual systems into a single comprehensive system.
It allows organizations to integrate and manage various business functions, such as finance, human resources, supply chain, and customer relationship management, on a unified platform. ERP systems provide real-time visibility into different processes, enabling efficient data sharing and collaboration across departments. This integration improves communication and enhances decision-making by providing accurate and up-to-date information. ERP systems also automate routine tasks, streamline workflows, and help in standardizing processes, thereby increasing operational efficiency. They summarize and present the results of data analysis, providing actionable insights to support informed decision-making. Additionally, ERP systems facilitate the generation and availability of information by capturing, storing, and retrieving data in a structured manner. They enable organizations to manage large volumes of data efficiently and ensure its accessibility when needed. Overall, ERP systems play a crucial role in optimizing business operations and enhancing organizational productivity.
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n the regression equation of y=a+ẞx₁ +px₂ +u, ß is a(n)
In the regression equation y = a + ßx₁ + px₂ + u, ß is a coefficient representing the expected change in y for a one-unit change in x₁, holding other variables constant.
In a regression equation, the goal is to estimate the relationship between a dependent variable (y) and one or more independent variables (x₁, x₂, etc.). The equation you provided is a multiple regression equation with two independent variables, x₁ and x₂. The equation is expressed as:
y = a + ßx₁ + px₂ + u
Here's a detailed explanation of the different components:
y: This represents the dependent variable, which is the variable you are trying to predict or explain. It is also sometimes referred to as the response variable.a: This is the intercept term or the constant. It represents the expected or average value of the dependent variable when all the independent variables are zero. In other words, it is the y-value when all the predictors have no effect.ß: This is the coefficient or parameter associated with the independent variable x₁. It represents the expected change in the dependent variable (y) for a one-unit change in x₁, while holding other variables constant. ß indicates the slope of the regression line corresponding to x₁.x₁: This is the independent variable or predictor variable. It is the variable that is believed to have an impact on the dependent variable. In the context of the equation, it represents the first independent variable.p: This is the coefficient or parameter associated with the independent variable x₂. It represents the expected change in the dependent variable (y) for a one-unit change in x₂, while holding other variables constant. p indicates the slope of the regression line corresponding to x₂.x₂: This is the second independent variable or predictor variable. Similar to x₁, it is believed to have an impact on the dependent variable.u: This represents the error term or the residual. It captures the discrepancy between the actual observed values of the dependent variable and the predicted values based on the regression equation. The error term accounts for the variability in the dependent variable that is not explained by the independent variables.In summary, the regression equation y = a + ßx₁ + px₂ + u allows you to estimate the relationship between the dependent variable (y) and the independent variables (x₁, x₂). The coefficients ß and p indicate the expected change in y for a one-unit change in x₁ and x₂, respectively, while holding other variables constant. The intercept term (a) represents the expected value of y when all the independent variables are zero. The error term (u) captures the unexplained variability in y.
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Which of the following scenarios results in a New Zealand income tax liability arising under New Zealand domestic tax law? Note there may be more than one correct answer.
Select one or more:
a.
Becky lives in England. She comes to New Zealand for a three-month holiday and, while she is here, she works in a bar to earn some travel money.
b.
Sharlene lives in Sydney. She works for an Australian-based IT consulting business who have been contracted by the Ministry of Health to upgrade their payroll system. She comes to New Zealand for three months to work on the project. She continues to be paid by the Australian-based IT firm.
c.
Ali-snail are a Chinese based business who sell large amounts of product to New Zealand customers through their online platform. They do not have any physical presence in New Zealand.
d.
Petra lives most of the year in Portugal but has a holiday home in Kerikeri (New Zealand) where she spends three months every summer. She does not rent the house out and does not earn any other income in New Zealand. In Portugal, Petra has a business as a real estate agent.
Both scenarios a and b result in a New Zealand income tax liability under New Zealand domestic tax law.
Becky lives in England. She comes to New Zealand for a three-month holiday and, while she is here, she works in a bar to earn some travel money and Sharlene lives in Sydney. She works for an Australian-based IT consulting business who have been contracted by the Ministry of Health to upgrade their payroll system. She comes to New Zealand for three months to work on the project. She continues to be paid by the Australian-based IT firm.
This scenario would result in a New Zealand income tax liability. According to New Zealand tax law, income sourced from employment or services performed in New Zealand is subject to New Zealand income tax. Since Becky worked in a bar in New Zealand during her holiday, she would be liable to pay income tax on the income she earned in New Zealand.
This scenario would also result in a New Zealand income tax liability. Even though Sharlene is employed by an Australian company, she is physically present in New Zealand and performing services in the country. Under New Zealand tax law, income derived from services performed in New Zealand is generally subject to New Zealand income tax.
The correct answer is option a and b.
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Q Requirements: Using the Signavio Process Manager process diagramming tool, create a BPMN (business process model and notation) diagram of the order process at Markle as described. Scenario: Markle Industries has been manufacturing and selling restaurant equipment such as fryers and grills for more than 15 years. Markle is a privately held firm and the board is planning to take the company public within the next two years. Therefore, they have hired you as the company’s first internal auditor. One of your tasks as the internal auditor, is to document Markle’s various processes. You will start with the order-processing system. You have already walked through the process with Markle employees. The following is what you have discovered. All customer orders are credit sales and arrive via the company website or from Sales Rep sales at trade shows. The following is a narrative summary of the process: When an order comes in, the order-processing clerk checks the customer’s credit file to confirm credit approval and ensure that the amount falls within the credit limit. If either of these conditions is not met, the order is sent to the credit department. If an order meets both conditions, the order-processing clerk enters it into the system on a standard order form. The data on the form is used to update the company’s customer file (in which the name, address, and other data are stored), and the form is placed in the company’s open order file. When the credit department receives a rejected order, the credit clerk determines why the order has been rejected. If the credit limit has been exceeded, the customer is notified that the merchandise will be shipped as soon as Markle receives payment to reduce their balance below their credit limit. If the customer has not been approved for credit, a credit application is sent to the customer along with a notification that the order will be shipped as soon as credit approval is granted. Before preparing a picking ticket, the system checks the inventory records to determine whether the company has the products ordered on hand. If the products are not available, a notice of backorder is sent to the customer and an inventory requirement is recorded in the production and inventory planning system. If the items are in stock, a picking ticket is prepared and sent to the warehouse. Once the items are picked, the warehouse prepares a packing slip and crates the equipment for shipment via common carrier. The carrier notifies Markle that goods have shipped and a customer invoice is prepared. A copy is filed by the order-processing department, another is sent to the customer, and another is sent to the accounting department so that accounts receivables can be updated. The invoice in the customer file is timestamped indicating that the invoice has been sent.
accounting
Steps to create a BPMN diagram for the order process at Markle Industries based on the provided scenario. Here's a textual description of the BPMN diagram for the order process:
1. Start Event: Represents the beginning of the order process.
2. User Task: "Check Credit Approval and Credit Limit": The order-processing clerk checks the customer's credit file to confirm credit approval and ensure it falls within the credit limit. If not met, the process goes to the credit department.
3. Exclusive Gateway: Determines whether the order meets both credit approval and credit limit conditions.
4. User Task: "Enter Order and Update Customer File": If the order meets the conditions, the order-processing clerk enters it into the system and updates the customer file.
5. User Task: "Prepare Picking Ticket": The system checks the inventory records to determine product availability. If the products are in stock, a picking ticket is prepared.
6. Exclusive Gateway: Determines whether the products are available in stock.
7. User Task: "Send Notice of Backorder": If the products are not available, a notice of backorder is sent to the customer.
8. User Task: "Prepare Packing Slip and Crate Equipment": The warehouse prepares a packing slip and crates the equipment for shipment.
9. User Task: "Prepare Customer Invoice": A customer invoice is prepared by the order-processing department.
10. End Event: Represents the completion of the order process.
This BPMN diagram captures the main steps and decision points involved in the order process at Markle Industries. Please note that the diagram can be further expanded and refined based on additional details and subprocesses specific to Markle's order processing system.
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Transaction Analysis Galle Inc. entered into the following transactions during January. a. Borrowed $250,000 from First Street Bank by signing a note payable. b. Purchased $25,000 of equipment for cash. c. Paid $1,500 to landlord for rent for January. d. Performed services for customers on account, $10,000. e. Collected $3,000 from customers for services performed in Transaction d. f. Paid salaries of $6,500 for the current month. g. Declared and paid $1,100 dividend to stockholders. h. Purchased $2,300 of supplies on credit. Required:
Show the effect of each transaction using the following model. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item, enter "0" since the net effect on the item is zero.
Account TitlesTransaction No.Cash Notes Payable Equipment Rent Expense Supplies Salaries Expense Dividends Revenue Customer AccountsTransaction (a)+$250,000-$250,000 Transaction (b)(-$25,000) +$25,000 Transaction (c)(-$1,500) 0 0 Transaction (d)0 0 0 0 0 0 0 +$10,000 Transaction (e)+$3,000 0 0 0 0 0 0 (-$3,000 )Transaction (f)(-$6,500) 0 0 0 0 (+$6,500) Transaction (g)0 (-$1,100) 0 0 0 0 (+$1,100)Transaction (h)0 0 0 0 (+$2,300)0 0 0 0 0 0 0(-$2,300)
The given transactions are as follows:
a. Galle Inc. borrowed $250,000 from First Street Bank by signing a note payable.
b. Galle Inc. purchased equipment worth $25,000 for cash.
c. Galle Inc. paid rent of $1,500 for January.
d. Galle Inc. performed services for $10,000 on account.
e. Galle Inc. collected $3,000 from customers for services performed in transaction (d).
f. Galle Inc. paid salaries of $6,500 for the current month.
g. Galle Inc. declared and paid dividends of $1,100 to stockholders.
h. Galle Inc. purchased supplies on credit worth $2,300.
The effect of each transaction is given below:
Account TitlesTransaction No.Cash Notes Payable Equipment Rent Expense Supplies Salaries Expense Dividends Revenue Customer AccountsTransaction (a)+$250,000-$250,000 Transaction (b)(-$25,000) +$25,000 Transaction (c)(-$1,500) 0 0 Transaction (d)0 0 0 0 0 0 0 +$10,000 Transaction (e)+$3,000 0 0 0 0 0 0 (-$3,000 )Transaction (f)(-$6,500) 0 0 0 0 (+$6,500) Transaction (g)0 (-$1,100) 0 0 0 0 (+$1,100)Transaction (h)0 0 0 0 (+$2,300)0 0 0 0 0 0 0(-$2,300)
Hence, the effect of each transaction is shown in the table.
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In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $220. In 2019 , the winner's check was $1,420,000. a. What was the percentage increase per year in the winner's check over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the winner's prize increases at the same rate, what will it be in 2036 ? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) × Answer is complete but not entirely correct.
To calculate the percentage increase per year in the winner's check for the U.S. Open Golf Championship from 1895 to 2019, we need to use the formula for compound annual growth rate (CAGR).
a. Percentage increase per year: We can calculate the CAGR using the formula:
CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1
In this case, the beginning value is $220, the ending value is $1,420,000, and the number of years is 2019 - 1895 = 124.
CAGR = ($1,420,000 / $220)^(1 / 124) - 1
Calculating this, we find that the CAGR is approximately 7.34%.
b. To calculate the winner's prize in 2036 based on the same rate of increase, we can use the formula:
Future Value = Present Value * (1 + CAGR)^Number of Years
In this case, the present value is $1,420,000, the CAGR is 7.34%, and the number of years is 2036 - 2019 = 17.
Future Value = $1,420,000 * (1 + 7.34%)^17
Calculating this, we find that the winner's prize in 2036 would be approximately $3,247,706.66.
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VII. Refer to the theory based on arbitrage condition section 2.2, lecture 1. Now suppose that there are three types of bonds whose terms to maturity are one period, two periods, and three periods, respectively. 1. As indicated in the note, the interest rate i n,t
of n period bonds (n=2,3) approximately satisfies i n,t
=(i t
+…+i t+n−1
e
)/n. We derive the above equation for n=2. Please derive it for n=3. 2. Suppose that the yield curve is inverted in that i t
and i 2,t
>i 3,t
. Use the theory to infer people's expectation of the future from this shape of the curve.
Using the theory to infer people's expectation of the future from this shape of the curve leads us to derive the equation for n=3, we use the same logic as for n=2.
How to derive?According to the arbitrage condition theory, the interest rate[tex]iₙ,ₜ[/tex] of n period bonds (where n=3) approximately satisfies[tex]iₙ,ₜ = (iₜ + iₜ₊₁ + iₜ₊₂)/n.[/tex]
Now, let's derive the equation for n=3:
[tex]i₃,ₜ = (iₜ + iₜ₊₁ + iₜ₊₂)/3[/tex]
For the second question, if the yield curve is inverted, meaning that[tex]iₜ > i₂,ₜ > i₃,ₜ[/tex], we can infer that people's expectation of the future is pessimistic.
This is because they expect the interest rates to decrease in the future.
The inverted yield curve suggests that investors believe economic conditions will worsen and that interest rates will decline over time.
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Which of the following reduces income inequality, according to a sleuth of economists? a. Raising meal and sales taxes. b. Separating banks from investment firms. c. Raising social security tax rate by 1% or more, and also raising the cap to $400,000. d. Rolling back capital gains taxes to their original levels, to above 30% vs the current below 20% rate. e. Selling more government securities. 1. Raising sales taxes. g. Putting a stop to super PACs. Oh. Increasing national security
According to a slew of economists, raising the social security tax rate by 1% or more and raising the cap to $400,000 is believed to reduce income inequality.
Raising the social security tax rate and increasing the cap on income subject to social security taxes can contribute to reducing income inequality. By doing so, individuals with higher incomes would pay a larger share of their earnings towards social security, which can help redistribute wealth and reduce the income gap between higher-income and lower-income individuals. This approach is based on the principle of progressive taxation, where those who earn more contribute a higher proportion of their income towards social programs and public services.
However, it is important to note that addressing income inequality is a complex issue, and no single measure can completely solve the problem. Other factors, such as education, access to opportunities, and social policies, also play a significant role in reducing income inequality. Additionally, the effectiveness of specific policies may vary depending on the specific context and economic conditions of a country.
It is worth mentioning that the other options listed in the question, such as raising sales taxes, separating banks from investment firms, rolling back capital gains taxes, selling more government securities, putting a stop to super PACs, or increasing national security, may have different effects on income inequality and may be supported or criticized by economists based on their respective analyses and ideologies. These options can have implications for different aspects of the economy and society but may not directly address income inequality in the same way as the targeted approach of raising social security taxes.
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Describe the three shapes of the yield curve that tend to be associated with different business cycle stages.
The yield curve is a graphical representation of the relationship between the interest rates (or yields) and the maturity periods of a set of fixed-income securities, typically government bonds.
The shape of the yield curve is closely observed by economists and investors as it often provides insights into the current and future state of the economy. There are three main shapes associated with different business cycle stages:
The normal yield curve occurs during the expansion phase of the business cycle when the economy is growing steadily. In this scenario, longer-term interest rates are higher than shorter-term interest rates. The upward slope indicates that investors expect higher inflation and stronger economic growth in the future. Lenders demand higher yields for longer-term loans, as they anticipate an increase in borrowing demand and higher risk of inflation eroding the value of future interest payments.
A flat yield curve typically emerges during the transition between the expansion and contraction phases of the business cycle. It occurs when the yields on short-term and long-term bonds are relatively similar. A flat yield curve may suggest uncertainty or a lack of consensus among investors regarding the future direction of the economy. It could indicate a slowing economy, with the possibility of an impending recession. Investors may be unsure about the inflation outlook and prefer shorter-term bonds for their relative stability.
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Econ Phones Co. economists look at historical data to determine the cross price elasticity of demand between the price of the Econ Phones Co. smartphone and the quantity demanded for Econ Co. tablet. They find the cross-price elasticity of demand is a positive 1.5. Show all work and calculations. a. What does the sign of the coefficient (positive or negative) for the cross price elasticity of demand suggest (type of relationship relevant to cross price elasticity)? b. If the Econ smartphone decreases it price from $600 to $550, by what percent should quantity demanded for Econ Co. tablet change? c. Does quantity demanded go up or down (for the Econ Co. tablet)?
The positive sign of the coefficient for the cross price elasticity of demand suggests a positive relationship between the price of the Econ Phones Co. smartphone and the quantity demanded for the Econ Co.
tablet. This means that an increase in the price of the smartphone would lead to an increase in the quantity demanded for the tablet, and a decrease in the price of the smartphone would lead to a decrease in the quantity demanded for the tablet.
b. To calculate the percentage change in the quantity demanded for the Econ Co. tablet, we can use the formula:
Percentage change in quantity demanded = Cross price elasticity of demand * Percentage change in price
Given that the cross price elasticity of demand is 1.5 and the price of the smartphone decreases from $600 to $550, we can calculate the percentage change in price as:
Percentage change in price = (New price - Old price) / Old price * 100
Percentage change in price = ($550 - $600) / $600 * 100
Percentage change in price = -50 / $600 * 100
Percentage change in price = -8.33% (rounded to two decimal places)
Now, we can calculate the percentage change in the quantity demanded for the tablet as:
Percentage change in quantity demanded = 1.5 * (-8.33%)
Percentage change in quantity demanded = -12.5%
Therefore, the quantity demanded for the Econ Co. tablet should decrease by 12.5% when the price of the Econ Phones Co. smartphone decreases from $600 to $550. The quantity demanded for the Econ Co. tablet would go down when the price of the Econ Phones Co. smartphone decreases.
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Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of$90 per engine. a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is$90 per engine per month. There should not be a backlog in the last month.
Regular output capacity is 130 engines per month, Regular output cost is $60 per engine, Overtime cost is $90 per engine. The inventory carrying cost is $2 per engine per month, and the backlog cost is $90 per engine per month. There should be no backlog in the last month.
then the extra demand is met by using overtime, which costs $90 per engine. When the demand falls below the regular capacity of 130 engines per month, then the producer incurs a cost of $90 per engine as a shortage cost. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is $90 per engine per month. There should not be a backlog in the last month. In a level plan, the producer keeps the production at a constant level over the entire 6 months period (March-August).
Any variation in the demand is met by either increasing or decreasing the inventory. The average demand per month is 155 engines. Therefore, the production level for the 6 months can be set at 155 engines per month. The inventory level can be calculated using the formula I = (p - d) + I0whereI is the inventory level is the production rated is the demand rateI0 is the initial inventory (which is the producer incurs an inventory carrying cost of $2 per engine per month for every engine kept in the inventory. When there is a backlog, the producer incurs a cost of $90 per engine per month. In the level plan, there is no backlog in the last month. the total cost of the chase plan is $60,000, while the total cost of the level plan is $29,805. The level plan is cheaper than the chase plan by $30,195. However, in the level plan, there is a need to maintain an inventory to absorb the fluctuations in demand. When there is a shortage, it is met by inventory, and when there is excess production, it is kept in the inventory. The producer also incurs an inventory carrying cost of $2 per engine per month for every engine kept in the inventory.
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Which of the following is NOT true about gross domestic product (GDP)?
a. It includes only final goods and services.
b. The values are measured in current dollars
c. Intermediate goods and services are excluded to prevent double counting.
d. It includes the value of transfer payments.
Answer:
d. It includes the value of transfer payments.