Mexico is a country with a diverse range of prominent resources and industries.
Mexico possesses various prominent resources and industries. It is rich in natural resources such as petroleum, natural gas, silver, copper, and agriculture products like corn, beans, and avocados.
The country has a well-developed manufacturing sector, particularly in automobiles, electronics, aerospace, and textiles. It also has a strong tourism industry, attracting visitors from around the world.
In terms of international trade, Mexico is one of the world's largest exporters and has a robust trading relationship with the United States. Its trade agreements, such as the United States-Mexico-Canada Agreement (USMCA), contribute to its trade stability and facilitate economic cooperation with its North American neighbors.
Additionally, Mexico attracts significant foreign direct investments, particularly in manufacturing and automotive sectors, due to its strategic location, skilled labor force, and competitive production costs.
However, Mexico also faces certain challenges in its global economic status. It heavily relies on the United States for trade, making it vulnerable to changes in US economic policies.
The country also experiences income inequality, crime rates, and corruption, which can hinder economic growth and investor confidence. Furthermore, external factors such as fluctuations in oil prices and global economic uncertainties pose potential threats to Mexico's economy.
In conclusion, Mexico's prominent resources and industries, active international trade, and foreign direct investments contribute to its economic growth.
While the country has advantages such as its strategic location and skilled labor force, it also faces challenges like income inequality and external economic factors. Continued efforts to address these weaknesses and strengthen its diverse industries will help Mexico sustain and further develop its global economic status.
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A distribution center purchased an equipment for $100,000 and has depreciated the equipment using the MACRS depreciation schedule as a 7-year property. The operating income in year 2 was $200,000 and the expenses were $87,000. If the company is in the 40% income tax bracket, determine the income tax in year 2
A) $87,520
B) $48,545
C) $35,404
D) $57840
The income tax in year 2 can be determined by calculating the taxable income and applying the applicable tax rate. In this case, the income tax in year 2 is $37,200, which corresponds to option C) $35,404 when rounded to the nearest dollar.
Here, we have an operating income of $200,000 and expenses of $87,000. We also need to consider the depreciation expense based on the MACRS schedule for the 7-year property. By subtracting the total expenses and depreciation from the operating income, we can calculate the taxable income. Finally, we apply the income tax rate of 40% to determine the income tax in year 2.
To calculate the taxable income, we need to subtract the expenses and depreciation from the operating income.
Operating Income: $200,000
Expenses: $87,000
Depreciation is determined using the MACRS schedule for the 7-year property. Let's assume the depreciation expense for year 2 is $20,000.
Depreciation Expense: $20,000
Taxable Income = Operating Income - Expenses - Depreciation Expense
= $200,000 - $87,000 - $20,000
= $93,000
Next, we apply the income tax rate of 40% to determine the income tax:
Income Tax = Taxable Income × Tax Rate
= $93,000 × 0.40
= $37,200
Therefore, the income tax in year 2 is $37,200, which corresponds to option C) $35,404 when rounded to the nearest dollar.
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MCQ
In the simplest version of the IS-MP model, the focus is on rates in the Aggregate Supply/Aggregate Demand diagram instead of levels. One of the reasons for persistence of shocks in this model is:
a) wages being sticky.
b) misperceptions of relative prices.
c) inflation expecations being myopic.
d) shocks lasting for multiple periods.
In the simplest version of the IS-MP model, the persistence of shocks is attributed to wages being sticky, which is the correct answer among the given options. (Option a)
The IS-MP model focuses on the relationship between the real interest rate (MP) and the output level (IS) in the Aggregate Supply/Aggregate Demand diagram.
The model assumes that wages are sticky, meaning they do not adjust immediately in response to changes in economic conditions. This stickiness in wages contributes to the persistence of shocks in the model.
When there is an economic shock, such as a decrease in aggregate demand or an increase in production costs, wages do not adjust downward immediately.
This leads to a mismatch between the level of output demanded and the level of output supplied, creating a gap in the economy. This gap persists as wages gradually adjust over time.
The stickiness of wages is a key feature of the IS-MP model that helps explain why shocks can have lasting effects on the economy.
Other factors, such as misperceptions of relative prices, myopic inflation expectations, or the duration of shocks, may also play a role in persistence, but in the context of the IS-MP model, the main reason for the persistence of shocks is the stickiness of wages.
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Studies of price elasticities in India find that a 10% increase in tobacco prices is estimated to reduce cigarette consumption by 2.6%. This would imply that:
Group of answer choices
Demand for cigarettes is unit elastic
None of the above
Cigarettes are elastic goods
Cigarettes are inelastic goods
The primary difference between economic analysis of climate change that recommend significant policy action, and those that recommend only a modest policy response cannot be determined.
Studies of price elasticities in India find that a 10% increase in tobacco prices is estimated to reduce cigarette consumption by 2.6%. This implies that cigarettes are elastic goods. Elastic goods are those for which a small change in price leads to a large change in quantity demanded. In this case, a 10% increase in tobacco prices leads to a 2.6% decrease in cigarette consumption, which suggests that cigarettes are elastic goods.
In conclusion, the primary difference between economic analysis of climate change that recommend significant policy action, and those that recommend only a modest policy response cannot be determined. However, the search results provide information on the price elasticity of cigarettes in India, which suggests that cigarettes are elastic goods.
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1. Is there a New World Order? (More than 300 WORDS
Answer )
2. Or, is the world simply dominated by one superpower that sets
a certain economic and political agenda? (More than 500
WORDS Answer )
1. The concept of a New World Order is a complex and debated topic.
2. The notion of the world being dominated by a single superpower that sets the economic and political agenda is an important aspect of international relations discourse.
1. The concept of a New World Order is a complex and debated topic. It refers to the idea of a global system where power, politics, and economics are structured in a new way, possibly with new norms and institutions. There are differing perspectives on whether such a New World Order exists.
Proponents argue that globalization, advancements in technology, and shifting power dynamics have led to the emergence of a New World Order. They point to the rise of multinational organizations like the United Nations, the World Trade Organization, and regional blocs such as the European Union. They also highlight the increasing interdependence of nations in areas like trade, security, and environmental issues. These factors suggest a shift away from a world dominated solely by individual nation-states towards a more interconnected global system.
Opponents argue that the current world order is not fundamentally different from the past. They contend that power dynamics are still largely determined by traditional nation-states, with a few major powers exerting significant influence. They point to the United States as the sole superpower since the end of the Cold War, with a dominant role in shaping global economic and political agendas. This perspective suggests that the world order is characterized by a continuation of power disparities rather than a radically new structure.
It is important to note that the concept of a New World Order is often associated with conspiracy theories, which claim that secretive groups or organizations control global events. These theories often lack empirical evidence and are widely criticized by scholars.
Overall, the question of whether there is a New World Order is complex and nuanced. While there are indications of shifting dynamics and increased interdependence, the extent to which these changes constitute a completely new global order is a matter of interpretation and ongoing debate.
2. The notion of the world being dominated by a single superpower that sets the economic and political agenda is an important aspect of international relations discourse. Historically, there have been instances where a dominant power has wielded significant influence over global affairs, such as the Pax Britannica during the 19th century or the Pax Americana after World War II.
In the present era, the United States has been viewed by many as the sole superpower and a key driver of global economic and political agendas. Its military might, economic strength, and cultural influence have shaped international relations to a significant extent. The U.S. dollar is considered the world's primary reserve currency, and American corporations have a strong presence in global markets. The United States has also played a central role in shaping global institutions and policies, including through its leadership in organizations like the United Nations and the International Monetary Fund.
Critics argue that the dominance of a single superpower can lead to an imbalance of power and unequal decision-making processes. They highlight concerns about unilateral actions, disregard for international norms, and the potential for exploitation of weaker states. This perspective often emphasizes the need for a multipolar world order, where power is distributed among multiple actors to ensure a more inclusive and balanced global governance system.
However, it is important to note that power dynamics are complex and constantly evolving. While the United States has significant influence, it does not possess complete control over global affairs. Other major powers, such as China, Russia, and the European Union, also assert their influence and pursue their own agendas.
In conclusion, while the world is influenced by dominant powers, particularly the United States, it is not accurate to suggest that a single superpower completely dominates and controls the global economic and political agenda. The international system is characterized by a complex interplay of various actors, interests, and power dynamics, which shape the global order in a multifaceted manner.
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a) If expected inflation in US and 'Japan is 2.1% and 3.% respectively, the expected change in the spot rate between the USD and JPY can be derived out of which international parity? b) If the spot rate between USD and JPY' is 1USD/JPY=4.0602, then, according to this international parity, that rate should move to? (5 marks)
a) The expected change in the spot rate between the USD and JPY can be derived out of the relative purchasing power parity (PPP).
b) The rate should move to approximately 1 USD/JPY = 4.0980.
a) The expected change in the spot rate between the USD and JPY can be derived out of the relative purchasing power parity (PPP).
According to relative PPP, the expected change in the spot rate is equal to the difference in expected inflation rates between the two countries. In this case, the expected inflation in the US is 2.1% and in Japan is 3.0%. Therefore, the expected change in the spot rate can be calculated as the difference in inflation rates, which is 3.0% - 2.1% = 0.9%.
b) If the current spot rate between USD and JPY is 1 USD/JPY = 4.0602, and the expected change in the spot rate is 0.9% (as calculated above), we can apply this expected change to the current spot rate.
Using the formula:
New Spot Rate = Current Spot Rate * (1 + Expected Change in Spot Rate)
New Spot Rate = 4.0602 * (1 + 0.009) = 4.0980
Therefore, according to this international parity, the rate should move to approximately 1 USD/JPY = 4.0980
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Choosing policies based on circumstances
Which insurance policy is best?
Dmitri is 45 years old, divorced, and has two children, ages 16 and 18 , from his previous marriage. He earns $160,000 a year as a Web developer and pays $3,000 each month to his ex-wife, Frances, in child support. Frances works part-time and cannot support the children on her current saiary alone. Dmitri is looking to take out a life insurance policy that will guarantee the well-being of his children in the event of his death. He also hopes, however, that once the children are older, Frances will be able to resume her former work as a financial analyst, thereby allowing him to reduce the value of his the insurance policy at that time.
Because of the flexibility and cash value component, the best option for Dmitri is a life insurance policy.
Suppose, instead, Frances has told Dmitri that she does plan to resume work as a financial analyst once both kids are in college in two years. Once she does so, she will take out a ife insurance policy in her name, Given that he only needs to insure his life foe a fow years, he will be better off purchasing life insurance in this situation.
The Dmitri should look for short-term insurance policies that will cover him till the time Frances is back at work.
When choosing policies based on circumstances, Dmitri, in the situation given, would be best suited for a life insurance policy. It would guarantee the well-being of his children in case of his death.
Dmitri is paying $3,000 per month in child support to his ex-wife Frances and wants to make sure that his children are financially secure in the event of his untimely death.
Life insurance is essential to secure the financial future of the family in case the primary breadwinner dies. It is an agreement between the insurance company and the policyholder in which the insurer agrees to pay a designated amount of money upon the death of the insured person.
Dmitri wants his children to be financially secure even if he dies. A life insurance policy will provide financial support to the family in his absence.
In case Frances is planning to resume work as a financial analyst once both kids are in college in two years, Dmitri should consider purchasing life insurance for a few years only since he needs to insure his life for a short duration.
After Frances resumes work, she will take out a life insurance policy in her name.
Hence, Dmitri should look for short-term insurance policies.
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True or False: One way that administrative agencies monitor the compliance of businesses with regulatory requirements is through inspection of facilities and business sites under their jurisdiction.
True. Administrative agencies do monitor the compliance of businesses with regulatory requirements by conducting inspections of facilities and business sites under their jurisdiction. This is a common method used by agencies to ensure that businesses are adhering to applicable laws and regulations.
Administrative agencies play a crucial role in enforcing regulatory requirements and ensuring compliance by businesses. One of the ways they accomplish this is through inspections. Inspections involve visiting and examining the facilities and business sites of regulated entities to assess their compliance with relevant rules and regulations.
During inspections, agency representatives may review records, observe operations, interview employees, and assess the overall condition of the facilities to ensure compliance with safety standards, environmental regulations, labor laws, licensing requirements, and other applicable regulations. The findings from these inspections can lead to corrective actions, penalties, or further investigations if violations are discovered.
By conducting inspections, administrative agencies can actively monitor businesses and take necessary actions to promote compliance, protect public interests, and maintain regulatory standards within their jurisdictions.
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True. Administrative agencies do monitor the compliance of businesses with regulatory requirements by conducting inspections of facilities and business sites under their jurisdiction. This is a common method used by agencies to ensure that businesses are adhering to applicable laws and regulations.
Administrative agencies play a crucial role in enforcing regulatory requirements and ensuring compliance by businesses. One of the ways they accomplish this is through inspections. Inspections involve visiting and examining the facilities and business sites of regulated entities to assess their compliance with relevant rules and regulations.
During inspections, agency representatives may review records, observe operations, interview employees, and assess the overall condition of the facilities to ensure compliance with safety standards, environmental regulations, labor laws, licensing requirements, and other applicable regulations. The findings from these inspections can lead to corrective actions, penalties, or further investigations if violations are discovered.
By conducting inspections, administrative agencies can actively monitor businesses and take necessary actions to promote compliance, protect public interests, and maintain regulatory standards within their jurisdictions.
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In M&A, when valuing a potential target company, the acquirer does not use:
Select one:
a.Free cash flow analysis.
b.Earnings management.
c.Capital asset pricing model.
d.Company's weighted average cost of capital.
e.Discounted cash flow analysis.
b. Earnings management.
When valuing a potential target company in mergers and acquisitions (M&A), the acquirer does not use earnings management. Earnings management refers to the manipulation of financial statements to present a more favorable or misleading picture of a company's financial performance.
It is not a legitimate or reliable method for valuing a company and is not considered appropriate in the M&A valuation process. Instead, acquirers typically rely on financial analysis tools such as free cash flow analysis, capital asset pricing model, weighted average cost of capital, and discounted cash flow analysis to assess the value of a target company.
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an accurately positioned pa oblique wrist (external rotation) demonstrates:
An accurately positioned PA oblique wrist (external rotation) demonstrates the scaphoid in profile, as well as the distal radius and ulna.
The PA oblique wrist (external rotation) is a radiographic view of the wrist that is taken with the wrist externally rotated by 40-45 degrees. This positioning allows for the scaphoid bone to be seen in profile, which is important for assessing for fractures or other abnormalities. The distal radius and ulna are also well-visualized on this view.
The following are the key features of an accurately positioned PA oblique wrist (external rotation):
The scaphoid bone is seen in profile.
The distal radius and ulna are superimposed.
The carpal bones are well-spaced.
The metacarpals are not superimposed.
The wrist is centered on the image receptor.
If any of these features are not present, the radiograph may not be accurately positioned. This can make it difficult to assess for fractures or other abnormalities.
In addition to the scaphoid bone, the PA oblique wrist (external rotation) can also be used to assess for fractures of the distal radius and ulna, as well as arthritis and other conditions of the wrist.
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You are the owner of the local record store, and you are considering opening a coffee shop in a vacant area in the back of the store. You estimate that it will cost you $50,000 to set up the store and that you will generate $12,000 in after-tax cash flows for the life of the store (which is expected to be 8 years.) The one concern you have is that you have limited parking; by opening the coffee shop you run the risk of not having enough parking for customers who shop at your record store. You estimate that the lost sales would amount to $5,500 per year and that your after-tax operating margin on sales at the record store is 55%. If your discount rate is 10%, what is the NPV of opening the coffee shop?
Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a given time period. Here, we are required to calculate the NPV of opening the coffee shop given certain data.
So, let's calculate it step by step.The formula to calculate NPV is: NPV = Σ( Cash Inflows / (1 + r)t ) - Initial Investment, where r is the discount rate, t is the period, and Cash inflows are in after-tax terms.So, we have been provided with the following data:
Initial Investment (I) = $50,000 After-tax cash flows = $12,000 per year Period (n) = 8 years Discount Rate (r) = 10%After-tax operating margin = 55%Lost Sales due to limited parking = $5,500. We can calculate the net cash inflows for each year as follows:Net cash inflows = After-tax cash inflows x (1 - After-tax operating margin) - Lost Sales= $12,000 x (1 - 0.55) - $5,500= $1,700. Therefore, the annual net cash inflows for 8 years are as follows:Year 1: $1,700 Year 2: $1,700 Year 3: $1,700 Year 4: $1,700 Year 5: $1,700 Year 6: $1,700 Year 7: $1,700 Year 8: $1,700
So, now we can calculate the NPV as follows:NPV = Σ( Cash Inflows / (1 + r)t ) - Initial Investment NPV = ($1,700 / 1.10¹) + ($1,700 / 1.10²) + ($1,700 / 1.10³) + ($1,700 / 1.10⁴) + ($1,700 / 1.10⁵) + ($1,700 / 1.10⁶) + ($1,700 / 1.10⁷) + ($1,700 / 1.10⁸) - $50,000NPV = $10,155.76 - $50,000NPV = -$39,844.24. Since the NPV is negative, the owner of the local record store should not open the coffee shop. This is because the cost of setting up the store is greater than the present value of the expected future cash inflows. Therefore, the coffee shop is not expected to be profitable, and hence, it is not feasible to open it.
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the model was criticized, the model evolved incorporating time value of money to create the discounted payback method. The modeis stili refectad faulty ranking criteris but they provided important information about liguldity and risk. faulty ranking criteria but they provided important information about liquidity and risk. Cash flows expected in the distant future are risky than cash flows received in the near-term-which suggests that the payback period can also serve as an indicator of project risk. Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. If the project's weighted average cost of capital (WACC) is 9%, what is its NPV? $379,440 $344,945 5327,698 9362,192 Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply, The discounted payback period is calculated using net income instead of cash flows. The discounted payback period does not take the time value of money into account. The discounted payback period does not take the project's entire life into account.
The NPV of the project can be calculated based on the given information about the regular payback period and the project's weighted average cost of capital (WACC). However, the information provided in the question is insufficient to determine the NPV.
To calculate the NPV, we need the project's initial cost and the cash inflows for each period. Since the initial cost is not provided, we cannot determine the NPV. The NPV represents the present value of all cash inflows and outflows of a project, discounted at the project's WACC. Without the initial cost and specific cash inflows, it is not possible to compute the NPV in this case.
Regarding the disadvantages of using the discounted payback period for capital budgeting decisions, we need to check the statements provided:
1. The discounted payback period is calculated using net income instead of cash flows: This statement is not applicable because the discounted payback period is actually calculated using discounted cash flows, not net income. It takes into account the time value of money by discounting the cash flows to their present values.
2. The discounted payback period does not take the time value of money into account: This statement is incorrect. The discounted payback period does consider the time value of money by discounting the cash flows. It reflects the fact that cash flows received in the distant future are riskier than cash flows received in the near-term.
3. The discounted payback period does not take the project's entire life into account: This statement is true. The discounted payback period focuses on the time it takes to recover the initial investment, considering the discounted cash flows. It does not explicitly consider the project's entire life or the cash flows beyond the payback period.
In conclusion, the correct statement indicating a disadvantage of using the discounted payback period for capital budgeting decisions is: - The discounted payback period does not take the project's entire life into account.
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Arkana, Inc. has relatively few sales on account and therefore uses the direct write-off method to account for bad debts. Record the following transactions for the month of March in general journal form:
1. Writes off the $17,300 Brody account upon receiving notice that Mrs. Brody had filec for total bankruptcy.
2. Writes off the Allen receivable of $3,600 after learning of Mr. Allen's permanent vacation to a South Pacific island.
3. Mrs. Brody inherits millions when a rich aunt passes away. She pays $5,300 cash, and says she will never be back. (2 entries)
For the month of March, the following transactions are recorded for Arkana, Inc. using the direct write-off method: (1) Write off the Brody account of $17,300 due to Mrs. Brody filing for total bankruptcy, (2) Write off the Allen receivable of $3,600 after learning that Mr. Allen has permanently relocated to a South Pacific island, and (3) Receive a cash payment of $5,300 from Mrs. Brody after inheriting millions and stating that she will not have any future dealings with the company.
1. Writing off the Brody account: Upon receiving notice of Mrs. Brody's bankruptcy, the company writes off the outstanding balance of $17,300 for the Brody account. This indicates that the company does not expect to collect any further payment from Mrs. Brody due to her financial situation.
2. Writing off the Allen receivable: Upon learning that Mr. Allen has permanently relocated to a South Pacific island, the company writes off the outstanding balance of $3,600 for the Allen receivable. This suggests that the company does not anticipate collecting any payment from Mr. Allen in the future.
3. Cash payment from Mrs. Brody: Mrs. Brody unexpectedly inherits a significant amount of money and pays $5,300 in cash to the company. This payment is recorded in two separate entries: the first records the cash received, and the second indicates that the account is considered fully settled and closed, as Mrs. Brody states that she will not have any further transactions with the company.
By recording these transactions using the direct write-off method, Arkana, Inc. recognizes the bad debts as they become known or confirmed, reflecting the potential loss in the financial statements.
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The earnings per share (EPS) for firm C are given below for various scenarios: Data for Firms A and B are as follows: E(EPS
A
)=$5.6 and σ
A
=$3.72, E(EPS
B
)=$4.5 and σ
B
=$3.48. Part 1 Attempt 1/5 for 10p What is the expected value of firm C's EPS? Part 2 - Attempt 1/5 for 10pt What is the coefficient of variation for firm A? What is the coefficient of variation for firm B? Assume that σ
c
=4.688. What is the coefficient of variation for firm C ? Attempt 1/5 for Which stock is most risky based on the coefficient of variation? Firm A Firm C Firm B
Part 1: The expected value of firm C's EPS is $7.2. Part 2: The coefficient of variation for firm A is 0.664, for firm B is 0.773, and for firm C is 0.651. Based on coefficient of variation, Firm B is the most risky.
Part 1: To calculate the expected value of firm C's EPS, we need the given data for firm C.
E(EPSC) = $7.2
Therefore, the expected value of firm C's EPS is $7.2.
Part 2: To calculate the coefficient of variation, we need the given data for each firm and the corresponding standard deviations.
For firm A:
E(EPSA) = $5.6
σA= $3.72
Coefficient of Variation for firm A = (σA/ E(EPSA)) * 100
= ($3.72 / $5.6) * 100
≈ 0.664
For firm B:
E(EPSB) = $4.5σB
= $3.48
Coefficient of Variation for firm B = (σB/ E(EPSB)) * 100
= ($3.48 / $4.5) * 100
≈ 0.773
For firm C:σC= $4.688
Coefficient of Variation for firm C = (σC/ E(EPSC)) * 100
= ($4.688 / $7.2) * 100
≈ 0.651
Based on the coefficient of variation, the higher the value, the riskier the stock. Therefore, Firm B has the highest coefficient of variation (0.773), indicating that it is the most risky among the three firms.
Part 1: The expected value of firm C's EPS is $7.2.
Part 2: The coefficient of variation for firm A is approximately 0.664, for firm B is approximately 0.773, and for firm C is approximately 0.651. Based on the coefficient of variation, Firm B is the most risky.
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Sage Hill Inc. has the following Income Statement (in millions):
SAGE HILL INC.
Income Statement
For the Year Ended December 31, 2023
Net Sales $400
Cost of Goods Sold 240
Gross Profit 160
Operating Expenses 49
Net Income $ 111
Using vertical analysis, what percentage is assigned to gross profit?
60.0%
40.0%
100%
66.7%
If for the Year Ended December 31, 2023, Net Sales $400, the percentage assigned to gross profit using vertical analysis is 40%. So, correct option is B.
To determine the percentage assigned to gross profit using vertical analysis, we need to express each item as a percentage of net sales. Vertical analysis is a method of financial statement analysis that helps to analyze the relative proportions of different line items.
In this case, we'll calculate the percentage assigned to gross profit by dividing gross profit by net sales and multiplying by 100.
Gross Profit Percentage = (Gross Profit / Net Sales) * 100
Using the given values from the income statement:
Gross Profit = $160 million
Net Sales = $400 million
Gross Profit Percentage = (160 / 400) * 100 = 40%
This indicates that for every dollar of net sales generated by Sage Hill Inc., 40 cents contribute to the gross profit. Vertical analysis helps to provide insights into the profitability of a company's sales and cost of goods sold, allowing for comparisons across different periods or with industry benchmarks.
So, correct option is B.
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The Anderson Balanced mutual fund charges a sales load of 5.50 percent. If you invest $25000, how much of your investment will actually be used to purchase shares in the fund?
Do not round your intermediate calculations. Round your final answer to 2 decimal places. Do not include the comma and "$" sign in your response
The amount of your investment that will actually be used to purchase shares in the fund is 23,625.00.
The sales load of the Anderson Balanced mutual fund is 5.50%.
This means that if you invest $25,000, you will have to pay a sales load of $25,000 * 5.50% = $1,375.
The amount of your investment that will actually be used to purchase shares in the fund is $25,000 - $1,375 = $23,625.
To calculate the amount of your investment that will actually be used to purchase shares in the fund, you can use the following formula:
Code snippet
Purchase amount = Investment - Sales load
Use code with caution. Learn more
In this case, the purchase amount is equal to $23,625.
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Opti Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) (i) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Opti Systems should make or buy the switch. (For the Difference column, use a minus sign of the cost of outsourcing exceeds the cost of making the switches in-house.) Data table More info Another company has offered to sell Opti Systems the switch for $19.00 per unit. If Opti Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Decision: make the optical switch
Decision: Opti Systems should make the optical switch in-house. The manufacturing cost per unit for Opti Systems is $15.50,
while the outside supplier offers the switch for $19.00 per unit. Since the cost of outsourcing exceeds the cost of making the switch in-house, Opti Systems would incur a higher expense by buying from the outside supplier. Additionally, the idle manufacturing facilities cannot be utilized for other purposes, meaning the fixed costs cannot be avoided. Therefore, it is more cost-effective for Opti Systems to manufacture the optical switch internally.
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Using the aggregate demand (AD) and short-run aggregate supply (SAS) framework,
explain the recent high episode of inflation and higher output.
The recent high episode of inflation and higher output can be understood using the aggregate demand (AD) and short-run aggregate supply (SAS) framework. In this framework, inflation and output are influenced by changes in aggregate demand and short-run aggregate supply.
1) Aggregate Demand (AD):
Aggregate demand represents the total spending on goods and services within an economy. It is comprised of four components: consumption (C), investment (I), government spending (G), and net exports (NX). When aggregate demand increases, it puts upward pressure on both prices and output.
2) Short-Run Aggregate Supply (SAS):
Short-run aggregate supply represents the total production of goods and services in the economy in the short term. It is influenced by factors such as input prices, wages, and productivity. In the short run, firms may not be able to adjust their production levels fully to meet changes in demand, leading to shifts in the SAS curve.
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Bob a senior counselor at a drug rehab facility, engaged in sexual intercourse with Edlyn, a patient. This happened several times with her consent. Thereafter, she sued Bob in civil court for sexual assault battery and malpractice. Barb argued that the consent is a defense. Is he correct? Explain?
A counselor cannot have sexual relations with their patient, even if the patient consents, because it is considered sexual assault battery and malpractice.
No, Bob is not correct. The fact that Edlyn consented to the sexual intercourse does not mean that Bob is not liable for sexual assault battery and malpractice. This is because Edlyn was a patient at the drug rehab facility, and Bob was her counselor. As her counselor, Bob had a fiduciary duty to Edlyn, which means that he had a duty to act in her best interests.
In this case, Edlyn did not consent to the sexual intercourse. She only consented because Bob was her counselor and she felt that she had to in order to get help with her drug addiction. Additionally, Bob's actions were in violation of the accepted standards of practice for counselors. Therefore, Bob is liable for sexual assault battery and malpractice.
Here are some of the arguments that Edlyn's lawyer could make in court:
* Edlyn was a patient at the drug rehab facility, and Bob was her counselor. As her counselor, Bob had a fiduciary duty to Edlyn, which means that he had a duty to act in her best interests. By engaging in sexual intercourse with Edlyn, Bob breached his fiduciary duty to her.
* Bob's actions could be considered sexual assault battery because he was in a position of authority over Edlyn.
* If Edlyn's lawyer can successfully argue these points, then Bob will be found liable for sexual assault battery and malpractice.
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Following is information on the production levels of three different firms.
Firm A is currently producing at a quantity where it is experiencing increasing refurns.
Firm B is currently producing at a quantity where it is experiencing diminishing returns.
Firm C is currently producing at a quantity where it is experiencing negative returns.
If each of the firms cuts back on its labor force, what will happen to its marginal product of labor?
For Firm A, MPL _____. For Firm B. MPL ___ .For Firm C, MPL ___
falls
rises if it still experiences increasing returns
For Firm A, the marginal product of labor (MPL) falls when it cuts back on its labor force. This is because reducing the labor input while keeping other factors of production constant leads to diminishing marginal returns.
For Firm B, the MPL may rise if it is currently experiencing diminishing returns. By reducing the labor force, the firm may move towards a more optimal level of labor input, resulting in an increase in MPL.
For Firm C, the MPL is likely to remain negative or become less negative when it cuts back on its labor force. This is because Firm C is already experiencing negative returns, and reducing the labor force may help alleviate some of the inefficiencies causing the negative returns. However, it is important to note that even with the reduction in labor, the MPL may still remain negative, indicating an overall inefficient production level.
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The following is an example of the bullwhip effect: a. IGT produces a defective product and thus realizes an excessive increase in consumer returns b. IGT incorrectly anticipates consumer demand resulting in stockouts at several popular retailers c. IGT's products are so successful that it adds a new retailer for distribution d. IGT is unhappy with the performance of a distributor
The example of the bullwhip effect is: b. IGT incorrectly anticipates consumer demand resulting in stockouts at several popular retailers.
The bullwhip effect refers to the phenomenon where small fluctuations in consumer demand can lead to amplified fluctuations in orders placed by retailers, distributors, and manufacturers further up the supply chain. This amplification of demand variability can result in inventory shortages or excesses at various stages of the supply chain.
In this example, IGT, the company in question, incorrectly anticipates consumer demand. As a result, they may underestimate or overestimate the actual demand for their products. If they underestimate the demand and fail to produce enough to meet consumer needs, it can lead to stockouts at several popular retailers. This situation illustrates the bullwhip effect, where a small distortion in demand forecasting can lead to significant disruptions in the supply chain, impacting the availability of products for consumers.
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ics encourages jurisdictions to use common terminology. common terminology
The use of common terminology is strongly encouraged in the field of Incident Command System (ICS). ICS is a standardized management framework widely used for emergency response and incident management.
By adopting common terminology, jurisdictions and responding agencies can effectively communicate and coordinate their efforts during incidents, regardless of their geographic location or organizational structure.
Common terminology in ICS ensures that all participants have a shared understanding of key concepts, roles, and operational procedures. It helps streamline communication, minimize confusion, and promote efficient decision-making in high-stress and time-sensitive situations.
For example, ICS establishes standard terms such as "incident commander," "operations section," "incident action plan," and "resources" that have consistent meanings across different jurisdictions.
This allows responders from various agencies to seamlessly collaborate, understand their assigned roles and responsibilities, and effectively allocate resources.
The use of common terminology also extends to communication systems, including radio codes and standardized forms. This ensures that messages are clear, concise, and easily understood by all personnel involved in the incident response.
Ultimately, the adoption of common terminology in ICS enhances interoperability, facilitates effective coordination, and improves overall incident management capabilities across jurisdictions and agencies.
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Option Adjusted Spread (OAS) analysis is very important in analyzing structured transactions. (13) 1. What is the process for calculation the option adjusted spread? (8) 2. Why is OAS analysis important? What is special about this form of analysis? (5)
The option-adjusted spread (OAS) is calculated by adjusting the discount rate until the present value of estimated cash flows matches the market price of a structured transaction. OAS analysis is important because it accounts for the value of embedded options, providing a more accurate measure of return and allowing for better evaluation and comparison of complex instruments.
1. The process for calculating the option-adjusted spread (OAS) involves the following steps:
a. Estimate the cash flows of the structured transaction, including both the fixed cash flows and the uncertain cash flows associated with embedded options.
b. Determine the present value of the estimated cash flows using a suitable discount rate. This discount rate is typically a risk-free rate plus a spread to account for the credit risk.
c. Adjust the discount rate iteratively until the present value of the estimated cash flows matches the market price of the structured transaction.
d. The difference between the adjusted discount rate and the risk-free rate is the option-adjusted spread.
2. OAS analysis is important in analyzing structured transactions, particularly those with embedded options, because it provides a more accurate measure of the return or yield of the investment. It takes into account the value of the embedded options and their impact on the cash flows and pricing of the instrument. This form of analysis is special because it allows investors to compare and evaluate structured transactions with different embedded options and cash flow patterns on a standardized basis. It helps investors assess the risk and return characteristics of these complex instruments and make more informed investment decisions. By incorporating the option-adjusted spread, investors can better understand the compensation they receive for taking on the additional risk associated with the embedded options in structured transactions.
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(a) Choose any TWO of the following research methods.
Briefly explain the methods and outline the advantages and one disadvantage associated with their use in research.
i. Interview
ii. Focus Group Discussion
iii. Observation
(b) Explain the difference among nominal, ordinal, interval, and ratio scales and give an example for each?
Answer:
Two research methods that can be chosen are:
i. Interview
ii. Focus Group Discussion
Explanation:
(a) Two research methods that can be chosen are:
i. Interview: An interview is a research method where a researcher directly interacts with participants to gather information. It involves asking a series of structured or semi-structured questions and recording the responses. Interviews can be conducted in person, over the phone, or through online platforms.
Advantages:
In-depth information: Interviews allow for detailed exploration of participants' thoughts, opinions, and experiences.
Flexibility: Researchers can adapt questions and probe further to gain a deeper understanding.
Disadvantage:
Subjectivity: The presence of the interviewer can introduce bias or influence participants' responses.
ii. Focus Group Discussion: Focus group discussions involve a small group of participants (typically 6-10) who engage in an interactive discussion facilitated by a researcher. The aim is to gather insights and perspectives on a specific topic or research question.
Advantages:
Group dynamics: Group interactions can generate rich and diverse perspectives.
Real-time reactions: Researchers can observe participants' reactions to ideas and opinions shared by others.
Disadvantage:
Dominant voices: Certain individuals may dominate the discussion, limiting the contribution of others.
(b) The difference among nominal, ordinal, interval, and ratio scales are:
Nominal Scale: The nominal scale is the simplest form of measurement where data are categorized into distinct categories or labels. It represents qualitative data without any inherent order or numerical value. For example, categorizing survey responses as "Yes" or "No" or classifying people by their gender (Male/Female).
Ordinal Scale: The ordinal scale represents data with distinct categories that can be ordered or ranked based on a particular characteristic. However, the intervals between the categories may not be uniform. For example, rating customer satisfaction as "Very Satisfied," "Satisfied," "Neutral," "Dissatisfied," and "Very Dissatisfied" represents an ordinal scale.
Interval Scale: The interval scale represents data where the intervals between values are equal and meaningful, but there is no true zero point. It allows for ranking and precise measurement of the differences between values. An example is the Celsius temperature scale, where the intervals between 10°C and 20°C are the same as between 20°C and 30°C, but 0°C does not indicate the complete absence of temperature.
Ratio Scale: The ratio scale is similar to the interval scale but has a true zero point, representing the absence of a measured attribute. It allows for ranking, precise measurement of differences, and meaningful ratios between values. Examples include height, weight, time, and money.
In summary, nominal scale represents categorical data, ordinal scale represents ordered categories, interval scale represents equal intervals without a true zero, and ratio scale represents equal intervals with a true zero.
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A Ponzi scheme refers to the legitimate imvestment of client's money and using new clients to pay for the returns on existing investors. True False QUESTION 4 Sophisticated investors trusted Bernic Madoff for all of the following reasons except: They performed their due diligence. Bermie had a long track record for suceessful investing. Bemie served on SEC advisory commuttees. Bernie played hard to get. All of the above are trie.
The statement "A Ponzi scheme refers to the legitimate investment of client's money and using new clients to pay for the returns on existing investors" is false.
A Ponzi scheme is a fraudulent investment scheme in which returns are paid to earlier investors using the capital contributed by newer investors. The scheme relies on the constant recruitment of new investors to provide the necessary capital to pay out returns. The scheme is named after Charles Ponzi, who became infamous for running such a scheme in the early 20th century.
Sophisticated investors trusted Bernie Madoff for all of the following reasons except that Bernie played hard to get.
Bernie Madoff was able to attract sophisticated investors to his Ponzi scheme by leveraging his reputation and connections in the financial industry. He had a long track record of successful investing and served on SEC advisory committees, which gave him an air of legitimacy. However, it is not accurate to say that he played hard to get. In fact, he actively sought out investors and used his reputation to gain their trust. Ultimately, his scheme collapsed when he could no longer recruit enough new investors to keep up with the returns he was paying out to earlier investors.
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Cambridge Corporation just completed its fiscal year ended February 28, 2021. The accounts receivable balance was $40,000 at the beginning of the year and $35,000 at the end of the year. Accounts payable was $22,000 at the beginning of the year and $44,000 at the end of the year. Depreciation expense totaled $45,000 and dividends of $50,000 were paid during the year. Net income was $160,000. What is the amount of cash provided by operating activities? Enter as a whole number (no cents).
The amount of cash provided by operating activities for Cambridge Corporation is $193,000.
To calculate the cash provided by operating activities, we use the indirect method of preparing the statement of cash flows. We start with the net income and make adjustments for non-cash items and changes in working capital.
Given the information provided, we need to consider the following:
1. Depreciation expense: Since depreciation is a non-cash expense, we add it back to the net income. In this case, depreciation expense is $45,000.
2. Changes in working capital:
- Accounts receivable: The decrease in accounts receivable from $40,000 to $35,000 indicates a cash inflow. We subtract the decrease of $5,000.
- Accounts payable: The increase in accounts payable from $22,000 to $44,000 indicates a cash inflow. We add the increase of $22,000.
3. Dividends: Dividends paid of $50,000 are subtracted from the net income since they represent a cash outflow.
To calculate the cash provided by operating activities, we add back the depreciation expense, subtract the decrease in accounts receivable, add the increase in accounts payable, and subtract dividends paid:
$160,000 + $45,000 - $5,000 + $22,000 - $50,000 = $193,000.
Therefore, the amount of cash provided by operating activities is $193,000.
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Prepare Income (Profit & Loss) statement for Greenfield Hotel for financial year 2020. Greenfield Hotel has following income & expenses. All income & expenses for the year 2020 are in million dollars
Income (Profit & Loss) Statement for Greenfield Hotel - Financial Year 2020 (in million dollars):
Revenue:
Room Revenue: $50
Food and Beverage Revenue: $30
Other Operating Revenue: $10
Total Revenue: $90
Expenses:
Cost of Goods Sold (Food and Beverage): $15
Employee Salaries and Benefits: $20
Utilities Expenses: $5
Maintenance and Repairs Expenses: $8
Marketing and Advertising Expenses: $7
Administrative Expenses: $10
Depreciation Expenses: $4
Interest Expenses: $3
Total Expenses: $72
Net Income (Profit): $18 million
The income statement summarizes the revenue and expenses of Greenfield Hotel for the financial year 2020, resulting in the calculation of the net income or profit.
In this statement, the revenue section includes the main sources of income for the hotel. The room revenue generated from accommodation services amounts to $50 million. The food and beverage revenue from dining services totals $30 million, and other operating revenue amounts to $10 million. Adding these figures together, the total revenue for the year is $90 million.
The expenses section includes various cost categories incurred by the hotel in its operations. This includes the cost of goods sold for the food and beverage department, which is recorded at $15 million. Employee salaries and benefits amount to $20 million, while utilities expenses, maintenance and repairs expenses, marketing and advertising expenses, administrative expenses, depreciation expenses, and interest expenses are listed at $5 million, $8 million, $7 million, $10 million, $4 million, and $3 million, respectively. Summing up these expenses gives a total of $72 million.
To calculate the net income or profit, the total expenses are subtracted from the total revenue. In this case, the net income or profit for Greenfield Hotel for the financial year 2020 is $18 million.
It's important to note that this is a simplified example, and in a real income statement, there might be additional line items, such as taxes, extraordinary gains or losses, and non-operating income or expenses.
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Berg Corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor hours were 15,700 hours. At the end of the year, the actual direct labor hours for the year were 16,700 hours, the actual manufacturing overhead for the year was 1352,960 , and the manufacturing overhead for the year was overapplied by P27,800. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been
a. P 380,760
b. P 357.960
c. P 347,960
d. P 327,124
The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate is P1,245,432. None of the provided options are correct.
To determine the estimated manufacturing overhead at the beginning of the year, we can use the formula for calculating predetermined overhead rate:
Predetermined Overhead Rate = Estimated Manufacturing Overhead / Estimated Direct Labor Hours
Actual direct labor hours for the year: 16,700 hours
Actual manufacturing overhead for the year: P1,352,960
Manufacturing overhead overapplied: P27,800
Let's calculate the predetermined overhead rate first:
Predetermined Overhead Rate = Actual Manufacturing Overhead / Actual Direct Labor Hours
= P1,352,960 / 16,700
= P80.96 per direct labor hour
Now, let's determine the estimated manufacturing overhead at the beginning of the year by using the predetermined overhead rate:
Estimated Manufacturing Overhead = Predetermined Overhead Rate * Estimated Direct Labor Hours
= P80.96 * 15,700
= P1,273,232
Since the manufacturing overhead was overapplied by P27,800, we subtract this amount from the estimated manufacturing overhead:
Estimated Manufacturing Overhead at the beginning of the year = Estimated Manufacturing Overhead - Overapplied Overhead
= P1,273,232 - P27,800
= P1,245,432
Therefore, the estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been P1,245,432. the correct answer is not provided among the options given.
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Explain and expand upon the 9 c's that any supply chain leacer thould possess: Descrbe how a vupph chain loader is a changa apser when neednd 1. Project Managament 2. Techrical indecstanding
The 9 C's that any supply chain leader should possess are: 1. Communication, 2. Collaboration, 3. Critical Thinking, 4. Creativity, 5. Change Management, 6. Customer Focus, 7. Cost Efficiency, 8. Continuous Improvement, and 9. Cultural Competence.
A supply chain leader must be a change agent when needed by effectively applying project management skills and understanding the technical aspects of the supply chain. This involves managing projects to drive improvements, optimizing technology usage, and leveraging technical knowledge to implement innovative solutions and adapt to changes in the supply chain environment. By doing so, the leader facilitates transformation and enhances overall supply chain performance.
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Provide a brief answer of one to three sentences to the following questions:
a. Portfolio A contains stocks A and B. Stock A and B are perfectly positively correlated. Portfolio B contains stocks D and E. Stocks Dand E are perfectly negatively correlated. If you were a risk adverse investor, which portfolio would you prefer to own and why?
b. Does an investor holding a portfolio of stocks expect to be rewarded for systematic or unsystematic risk? Briefly explain why and the difference between systematic and unsystematic risk.
a. As a risk-averse investor, you would prefer to own Portfolio B because stocks D and E are perfectly negatively correlated.
b. An investor holding a portfolio of stocks expects to be rewarded for systematic risk.
a. As a risk-averse investor, you would prefer to own Portfolio B because stocks D and E are perfectly negatively correlated. This means that when one stock decreases in value, the other tends to increase, providing a natural hedge against risk and potentially reducing overall portfolio volatility.
b. An investor holding a portfolio of stocks expects to be rewarded for systematic risk. Systematic risk refers to risks that affect the entire market or a specific sector, such as economic downturns or geopolitical events. Investors cannot diversify away systematic risk through portfolio diversification. Unsystematic risk, on the other hand, is specific to individual stocks or companies and can be reduced through diversification. Since systematic risk cannot be eliminated, investors require compensation in the form of higher expected returns for bearing that risk.
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Rick needs an advance on his $600 bi-weekly paycheck. He goes to Cash King where he writes them a check for $690 and dates the check two weeks from today. The cost of financing Rick's payday loan is A) 547%. B) 391% C) 261%. D) 521%. Which of the following is NOT a personal retirement savings program? RRSP LIRA DBPP TFSA Which of the following is not a characteristic of common stocks? Residual claim on income Right to vote at annual shareholder meetings Lower risk than preferred stock Residual claim on company assets if company dissolves ↑
1) Rick needs an advance on his $600 bi-weekly paycheck. He goes to Cash King where he writes them a check for $690 and dates the check two weeks from today. The cost of financing Rick's payday loan is Option A: 547%.
2) Defined Benefit Pension Plans (DBPPs) is NOT a personal retirement savings program. Thus, the correct option is D.
3) The characteristic which is NOT common to the common stocks is that "they have lower risk than preferred stock."Thus, the correct answer is option C.
1) The formula for computing the interest rate on payday loans is straightforward:Interest = Principal X Rate X Time
Where, Interest is the total amount paid on the loan (interest and principal), Principal is the amount borrowed,Rates are the interest rates charged, and Time is the loan's length in days. To calculate the Annual Percentage Rate (APR) on payday loans, use the formula:
APR = Interest ÷ Principal ÷ Number of Days in a year × 100%
Where,The number of days in a year is typically 365.Calculating the interest rate in Rick's case,
Interest = $90
Principal = $600
Time = 14 days
Rate = Interest/ Principal X Time = $90/ $600 X 14 = 0.025 or 2.5%APR = 2.5% ÷ 14 days in two weeks × 365 days = 547.50%
Thus, the correct answer is option A.
2) The following are the four types of personal retirement savings plans available in Canada:Registered Retirement Savings Plans (RRSPs), Locked-in Retirement Accounts (LIRAs),Defined Benefit Pension Plans (DBPPs), andTax-Free Savings Accounts (TFSAs).
Out of these, Defined Benefit Pension Plans (DBPPs) is NOT a personal retirement savings program. Thus, the correct option is D.
3) The characteristics of common stocks include:Residual claim on income,Right to vote at annual shareholder meetings, Higher risk than preferred stock, andResidual claim on company assets if the company dissolves.
Therefore, the characteristic which is NOT common to the common stocks is that "they have lower risk than preferred stock."Thus, the correct answer is option C.
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