The expected yield is 20.10%, rounded to 2 decimal places. We can calculate the revised expected yield by taking into account both the probability of default and the expected default yield.
To calculate the promised yield to maturity, we can use the formula:
Promised Yield = Annual Coupon Payment / Bond Price + ((Face Value - Bond Price) / Years to Maturity) / 2
Substituting the given values, we get:
Promised Yield = 50 / 860 + ((1000 - 860) / 2) / 2
Promised Yield = 0.05814 + 0.07293
Promised Yield = 0.13107 or 13.44%
To calculate the expected yield, we need to take into account the probability of default. We can use the following formula:
Expected Yield = Promised Yield x (1 - Probability of Default) + Default Yield x Probability of Default
Substituting the given values, we get:
Expected Yield = 0.1344 x (1 - 0.08) + 0.44 x 0.08
Expected Yield = 0.123552 + 0.0352
Expected Yield = 0.158752 or 15.88%
However, this calculation assumes that the default yield is the only possible yield in case of default. But the question states that in case of default, the investor will receive only 44% of the promised payment. This means that the actual yield in case of default will be lower than 44%.
To account for this, we need to calculate the expected default yield as well. We can do this by using the formula:
Expected Default Yield = Default Yield x (Payment Received / Promised Payment)
Substituting the given values, we get:
Expected Default Yield = 0.44 x (1000 x 0.44 / 50)
Expected Default Yield = 0.968 or 96.8%
We can use the following formula:
Revised Expected Yield = Promised Yield x (1 - Probability of Default) + Expected Default Yield x Probability of Default
Substituting the given values, we get:
Revised Expected Yield = 0.1344 x (1 - 0.08) + 0.968 x 0.08
Revised Expected Yield = 0.123552 + 0.07744
Revised Expected Yield = 0.200992 or 20.10%
To know more about expected yield visit:
https://brainly.com/question/28579766
#SPJ11
The global information security community has universally agreed with the justification for the code of practices as identified in the ISO/IEC 17799. (True or False)
The statement given "The global information security community has universally agreed with the justification for the code of practices as identified in the ISO/IEC 17799." is false because the ISO/IEC 17799 has been revised and replaced by ISO/IEC 27001, and the global information security community has agreed with the justification for the updated code of practices.
While ISO/IEC 17799, now known as ISO/IEC 27002, is a widely recognized standard for information security management, the global information security community has not universally agreed on its justification. There are differing opinions and perspectives on the effectiveness and applicability of the standard. However, it is widely used as a framework for establishing and maintaining information security best practices within organizations.
You can learn more about ISO/IEC 27002 at
https://brainly.com/question/14742301
#SPJ11
when a positive change in demand occurs, the demand curve will shift . group of answer choices
a right b left c down
d up
A positive change in demand causes the demand curve to shift to the right. The correct answer is option a).
A positive change in demand refers to a situation where demand for a product or service increases due to factors such as a change in consumer preferences, an increase in income, or a decrease in the price of a complementary good. When a positive change in demand occurs, the demand curve will shift to the right. This means that at any given price level, the quantity demanded of the product or service will be higher than before the change in demand.
The shift in the demand curve represents a change in the entire demand schedule, as opposed to a change in quantity demanded caused by a change in price. In other words, the entire demand curve shifts outward, indicating an increase in demand at all price levels. This results in a new equilibrium point where both the price and quantity demanded are higher than before the change in demand.
The shift in the demand curve has important implications for producers, as they must adjust their production levels to meet the new level of demand. They may also need to adjust their pricing strategy in response to changes in demand, as higher demand may allow them to increase prices to maximize profits.
Know more about demand curve here:
https://brainly.com/question/30550686
#SPJ11
The Robinsons have saved $250,000 toward the purchase of their first home. They need $12,000 for legal costs and moving expenses. After thorough investigation, they made a $890,000 offer on a two-bedroom condominium subject to arranging financing. The current interest rate on a five-year term fixed-rate mortgage with a 25-year amortization is 3.2% compounded semiannually. 1.Calculate their monthly payments rounded to the higher $10. 2.Show the first three lines of the amortization schedule. 3.The mortgage contract entitles the borrower to increase the amount of the regular payment by up to 10% once each year. How much will the amortization period be shortened if, after 2 years they will increase the payments by 10%? 4.Calculate the interest saved due to this increase in the payment. 5. One year after their increase in the payment, interest rates drop to 2.15% compounded semi-annually. There is a penalty of 3 months’ interest on the outstanding balance for early repayment. Does it pay to refinance? 8. If the penalty is based on the interest rate differential (difference between the contractual interest rate on the loan and the current interest rate) , calculated as : Penalty = (outstanding loan balance) × IRD × (term remaining in payment periods) Does it pay to refinance
The Robinsons have saved $250,000 toward the purchase of their first home commercial mortgage We factor in finances for a sizable global media organisation in the far off year of 2019. Our business acquired 876 Cutting-Edge with a $500 million.
1. Amortising fixed-charge commercial mortgage the loan's face fee is $478,853,476.13 (869); the loan's unique mortgage amount is $500,000,000.00; the coupon fee is 5%;
2. the loan's original duration is 25 years; the monthly payment is $2,922,950.21 (1873); and the years until the balloon payment are 10; and 874.
3. The balloon payment amount is $369,622,377.91 and the balloon price is $3,876 in modern times. The mortgage's current face value is $478,853,476.
4. A business loan is a loan that is secured by property used for commercial purposes, such as an office building, a distribution centre, a warehouse, or a complex of condos.
5. Typically, a commercial mortgage's proceeds are used to buy, finance, A business loan is a loan that is secured by property used for commercial purposes, such as an office building, a distribution centre, a warehouse, or a complex of condos.
6. The money received from a commercial mortgage is typically utilised to buy, refinance, or renovate the commercial property. Find out more information about business loans here.
7. Paid-off Loan comprises both the principal and the interest payment. Loan payment per month is equal to r (P)/1- (1 + r-n r=rate per period, which is 5.25% per year or 5.25%/12 per month. 60 months will make up n payments.
8. P=$500,000 Loan Amount P=5.25%/12 ($500,000) /1 - (1+5.25%/12)-60 P=$9,493 Monthly Payment
9. The total payment is $569,580 ($9493 times 60).
Interest Payment = $569,580 Principal Payment = $500,000 - $569,580 = $69,580.
10. it pay to refinance If the penalty is based on the interest rate difference between the contractual interest rate on the loan and the current interest rate.
To know more about Commercial Mortgage visit:
https://brainly.com/question/29674547
#SPJ4
the range of possible prices, where sellers have incentive to sell and buyers have incentive to purchase, is ________
The range of possible prices, where sellers have an incentive to sell and buyers have an incentive to purchase, is equilibrium price.
This price is determined by the interaction of supply and demand in the market. At prices below the equilibrium price, demand exceeds supply, leading to a shortage and potential price increases. At prices above the equilibrium price, supply exceeds demand, leading to a surplus and potential price decreases.
The equilibrium price represents a balance between the quantity of goods or services that producers are willing to supply and the quantity that consumers are willing to purchase. It is the price point where both buyers and sellers are able to achieve their desired outcomes in the market.
Know more about equilibrium price here:
https://brainly.com/question/28527601
#SPJ11
the most important innovation of francis cabot lowell's waltham operation was to group of answer choices divide the tasks of spinning and weaving into separate operations. accumulate the capital of a wide-ranging group of associates. use new england's swift-flowing streams to power his mills. combine the steps of cotton production under one roof.
The most important innovation of Francis Cabot Lowell's Waltham operation was to combine the steps of cotton production under one roof.
By integrating spinning and weaving into separate operations, Lowell increased efficiency and productivity. Additionally, he accumulated capital from a diverse group of associates, allowing for substantial investment and expansion.
Another crucial innovation was harnessing the power of New England's swift-flowing streams to operate his mills, providing a consistent and renewable energy source. These innovations revolutionized the textile industry, paving the way for the factory system and shaping the future of industrialization in the United States.
Teherefore, the most important innovation of Francis Cabot Lowell's Waltham operation was to combine the steps of cotton production under one roof.
Learn more about Francis Cabot Lowell's: brainly.com/question/30417871
#SPJ11
You have $70,000. You put 21% of your money in a stock with an expected return of 13%, $34,000 in a stock with an expected return of 17%, and the rest in a stock with an expected return of 18%. What is the expected return of your portfolio?
The expected return of your portfolio is 16.46%.
To calculate the expected return of the portfolio, we need to multiply the percentage of each investment by its expected return and then sum up the results.
So, the expected return from the first investment (21% of $70,000) is:
0.21 x $70,000 x 0.13 = $1,491
The expected return from the second investment ($34,000) is:
$34,000 x 0.17 = $5,780
The expected return from the third investment (the rest of the money, which is $70,000 - $23,660 - $34,000 = $12,340) is:
$12,340 x 0.18 = $2,221.20
Adding up these expected returns gives us:
$1,491 + $5,780 + $2,221.20 = $9,492.20
Therefore, the expected return of the portfolio is $9,492.20.
Hi, I'd be happy to help you calculate the expected return of your portfolio. Here are the steps to calculate it:
1. Calculate the amount of money invested in the first stock: 21% of $70,000 is $14,700.
2. Calculate the amount of money invested in the third stock: $70,000 - $14,700 - $34,000 = $21,300.
3. Calculate the weighted returns for each stock:
- First stock: ($14,700/$70,000) * 13% = 0.21 * 13% = 2.73%
- Second stock: ($34,000/$70,000) * 17% = 0.486 * 17% = 8.26%
- Third stock: ($21,300/$70,000) * 18% = 0.304 * 18% = 5.47%
4. Calculate the expected return of your portfolio by adding the weighted returns:
2.73% + 8.26% + 5.47% = 16.46%
Learn more about return : https://brainly.com/question/1789817
#SPJ11
What is the term used to describe the connectivity between an organization and a third party?
The term used to describe the connectivity between an organization and a third party is "interconnectivity." Interconnectivity refers to the ability of two or more systems to connect and communicate with each other, allowing for the exchange of information and resources.
In the context of organizations and third parties, interconnectivity can refer to various forms of partnerships, collaborations, and integrations. For example, an organization may have an interconnectivity agreement with a vendor or supplier to ensure a smooth flow of goods and services. Alternatively, an organization may establish interconnectivity with a partner or affiliate to expand its reach or capabilities. Interconnectivity can be achieved through various means, including APIs, data integrations, and communication protocols. However, it is important for organizations to establish appropriate security measures and protocols to protect sensitive information and mitigate the risk of cyber threats when establishing interconnectivity with third parties.
Know more about interconnectivity here:
https://brainly.com/question/1223353
#SPJ11
In the current year, a hat shop sold hats for 10 dollars and they sold 2000 in a year. Last year the price for a hat was 12 dollars and they only sold 1500. The owner wants to know what does the price need to be if he needs to sell at least 1600 hats next year.
To determine what the price needs to be in order to sell at least 1600 hats next year, we can use the concept of elasticity of demand. Elasticity of demand is a measure of how much the quantity demanded changes in response to a change in price. If demand is elastic, then a small change in price will result in a large change in quantity demanded. If demand is inelastic, then a change in price will result in a small change in quantity demanded.
To calculate elasticity of demand, we can use the formula:
Elasticity of demand = % change in quantity demanded / % change in price
Let's use the data provided to calculate the elasticity of demand for the hat shop:
% change in quantity demanded = (2000 - 1500) / 1500 = 0.333 or 33.3%
% change in price = (12 - 10) / 12 = 0.167 or 16.7%
Elasticity of demand = 33.3% / 16.7% = 2
This means that demand for hats at the shop is elastic, and a decrease in price will result in a larger increase in quantity demanded.
Now we can use the following formula to determine the new price needed to sell at least 1600 hats:
New price = Old price x (New quantity demanded / Old quantity demanded) ^ (-1 / Elasticity of demand)
Plugging in the values we have:
New price = 10 x (1600 / 2000) ^ (-1 / 2) = 9.05 dollars
Therefore, the hat shop owner would need to sell hats at 9.05 dollars in order to sell at least 1600 hats next year, assuming demand remains elastic.
Unlike sole proprietorships and partnerships, corporations must file a tax return and pay any corporate _____ tax owed on profits
Unlike sole proprietorships and partnerships, corporations must file a tax return and pay any corporate income tax owed on profits. This is because corporations are considered separate legal entities from their owners, and therefore have their own tax obligations.
Tax obligations refer to the legal requirements that individuals and businesses have to pay taxes to their government. Taxes are typically used to fund government services, infrastructure, and public programs.
Individuals have a range of tax obligations, depending on their income, employment status, and other factors. In most countries, individuals are required to pay income tax on their earnings, as well as other taxes such as sales tax, property tax, and capital gains tax.
Businesses also have a range of tax obligations, including income tax on their profits, payroll taxes on their employees' wages, and various other taxes such as excise taxes, value-added tax, and corporate tax.
Visit here to learn more about corporate tax brainly.com/question/30092524
#SPJ11
24. Sue sold a piece of business equipment for $26,000 in 2019. The equipment was purchased on February 4, 2017 for $35.000 She claimed the following depreciation deductions Year Depreciation 2017 $7.000 2018 $7,000 Compute the amount of the IRC S 1245 gain, if any, on the sale of the equipment O a $5,000 b. $7,000 0 $9,000 d. $14,000 24
The amount of the IRC Section 1245 gain on the sale of the equipment is $5,000
To compute the amount of the IRC Section 1245 gain on the sale of the equipment, follow these steps:
1. Calculate the total depreciation deductions claimed:
2017 Depreciation = $7,000
2018 Depreciation = $7,000
Total Depreciation = $7,000 + $7,000 = $14,000
2. Determine the adjusted basis of the equipment:
Purchase Price = $35,000
Adjusted Basis = Purchase Price - Total Depreciation = $35,000 - $14,000 = $21,000
3. Calculate the gain on the sale of the equipment:
Sale Price = $26,000
Gain = Sale Price - Adjusted Basis = $26,000 - $21,000 = $5,000
Based on these calculations, the amount of the IRC Section 1245 gain on the sale of the equipment is $5,000 (option a).
To know more about IRC Section visit
https://brainly.com/question/31018136
#SPJ11
QUESTION 2 On October 1, 2021, Wailuku Services established a $525 petty cash fund. Wailuku Services uses the perpetual inventory method. At the end of October, the petty cash fund contained: $ 97.90 - Cash on hand - Petty cash receipts for Freight-in on product to be resold office supplies miscellaneous items $143.25 141.75 148.88 a) Prepare the journal entry to establish the petty cash fund on October 1, 2021. b) Prepare the journal entry on October 31, 2021, to replenish the petty cash fund. c) Assume on October 31, 2021, after replenishing the petty cash fund, Wailuku Services desires to increase the petty cash fund to $600. Prepare the necessary separate journal entry.
The journal entry to establish the petty cash fund on October 1, 2021, will be debit Petty cash fund and credit cash. The journal entry on October 31, 2021, to replenish the petty cash fund will be debit Freight, office supplies & miscellaneous expense, and credit petty cash fund.
a) The journal entry to establish the petty cash fund on October 1, 2021, is:
Debit: Petty Cash Fund $525.00
Credit: Cash $525.00
b) The journal entry on October 31, 2021, to replenish the petty cash fund is:
Debit: Freight-In Expense $143.25
Debit: Office Supplies Expense $141.75
Debit: Miscellaneous Items Expense $148.88
Credit: Petty Cash Fund $433.88
Note that the total of the debit entries should equal the number of cash receipts in the petty cash fund.
c) The necessary separate journal entry to increase the petty cash fund to $600 is:
Debit: Petty Cash Fund $75.10
Credit: Cash $75.10
Note that the amount of the increase ($75.10) is equal to the difference between the desired amount of the petty cash fund ($600) and the actual amount of cash on hand in the petty cash fund ($97.90).
Learn more bout Journal entries: https://brainly.com/question/28390337
#SPJ11
You are a hedge fund manager. Based on the current market analysis, you want to invest in 3 different stocks representing emerging industries for your clients. You assume that the annual return rate for stock A is 1/2 and invest $1,000,000 in stock A. You assume that the annual return rate for stock B is 1/3 and invest $3,000,000 in stock B. You assume that the annual return rate for stock C is 1/4 and invest $4,000,000 in stock C. What is the value of the total annual return ? 9 In an insurance market, who (buyers or sellers ) would respond to the market information in the way that causes them to make decisions leading to adverse selection? And explain how this occurs 10 Discuss, in the used car market, why high- quality cars are driven out of the market? 11 Discuss, in the job market, 3 important factors employers look at when hiring the most qualified candidates from college graduates
Answer:
The total annual return can be calculated by adding up the returns from each of the three stocks, weighted by the amount invested in each stock:
Total Annual Return = (1/2 * $1,000,000) + (1/3 * $3,000,000) + (1/4 * $4,000,000)
= $500,000 + $1,000,000 + $1,000,000
= $2,500,000
Therefore, the total annual return for the three stocks is $2,500,000.
In an insurance market, buyers are the ones who are more likely to respond to market information in a way that causes adverse selection. Adverse selection occurs when buyers with higher risk are more likely to purchase insurance than those with lower risk. This leads to an imbalance in the pool of insured individuals, with a higher proportion of high-risk individuals. This, in turn, results in higher premiums to compensate for the higher risk, which further discourages low-risk individuals from purchasing insurance. This cycle can lead to the collapse of the insurance market.
When hiring the most qualified candidates from college graduates, employers generally look at three important factors:
a) Educational background and achievements: Employers look for candidates who have completed their degree from a reputable institution and have demonstrated academic excellence, such as high grades, honors, or awards.
b) Relevant work experience: Employers prefer candidates who have relevant work experience, such as internships, co-op programs, or part-time jobs, in their field of interest. This demonstrates that the candidate has applied their skills in a practical setting and has a good understanding of the industry.
c) Soft skills and personal traits: Employers also value soft skills and personal traits, such as communication skills, teamwork, leadership, problem-solving, and adaptability. These skills are essential for success in any job and are often assessed through interviews, reference checks, and personality tests.
Explanation:
On December 1, Karl Zant opened a speech and hearing clinic. During December, his firm had the following transactions involving revenue and expenses. Paid $2,800 for advertising. Provided services for $2,500 in cash. Paid $740 for telephone service. Paid salaries of $2,300 to employees. Provided services for $2,700 on credit. Paid $390 for office cleaning service. Did the firm earn a net income or incur a net loss for the period? What was the amount?
In the given case, the total expenses exceeded the total revenue, resulting in a negative net income of -$1,030 for the period.
Services provided in cash = $2,500
Services provided on credit = for $2,700
Advertising expense = $2,800
Telephone service expense = $740
Salaries expense = $2,300
Office cleaning service expense = $390
Calculating the total revenue -
= $2,500 + $2,700
= $5,200
Calculating total expenses -
= $2,800 + $740 + $2,300 + $390
= $6,230
Calculating the Net income -
Net Income = Total Revenue - Total Expenses
= $5,200 - $6,230
= -$1,030
The speech and hearing clinic saw a net loss of $1,030 for the month of December, according to the estimates. This indicates that there was a loss for the period since the total costs were higher than the total revenues.
Read more about net income on:
https://brainly.com/question/28390284
#SPJ4
Beta Ltd. having share capital of 20,000 equity shares of 10 each decides to issue rights share at the ratio of 1 for every 8 shares held at par value. Assuming all the share holders accepted the rights issue and all money was duly received, pass journal entry in the books of the company.
The journal entry in the books of Beta Ltd. for the rights issue is:
Debit: Bank A/c - 25,000
Credit: Equity Share Capital A/c - 25,000.
In this scenario, Beta Ltd. is issuing rights shares at a ratio of 1 for every 8 shares held at par value. Assuming all shareholders accepted the rights issue and all money was duly received, we can pass the following journal entry in the books of the company:
Step 1: Calculate the number of rights shares to be issued
Number of rights shares = Total shares / Rights issue ratio = 20,000 / 8 = 2,500 rights shares
Step 2: Calculate the total amount received from the rights issue
Amount received = Number of rights shares * Par value per share = 2,500 * 10 = 25,000
Step 3: Pass the journal entry
Bank A/c (Debit)............25,000
To Equity Share Capital A/c (Credit).........25,000
The Bank A/c is debited because the company receives money from the shareholders for the rights issue. The Equity Share Capital A/c is credited as the company's share capital increases due to the issuance of the rights shares.
So, the journal entry in the books of Beta Ltd. for the rights issue is:
Debit: Bank A/c - 25,000
Credit: Equity Share Capital A/c - 25,000.
To know more about Journal entry
visit:
https://brainly.com/question/29659544
#SPJ11
Sadie is a freelance social media specialist. Companies can hire her to improve their social media presence. Why is it particularly important that Sadie, and other freelancers like her, have an emergency fund? * 2 points Freelancers charge a very low hourly rate, so Sadie probably doesn't get paid much Sadie doesn't have guaranteed work every day, so she needs money in case she goes a while between clients Sadie will need a large emergency fund in order to make her monthly insurance payments Sadie's job requires a lot of expensive specialty equipment that will always need replacing
It is particularly important that Sadie, and other freelancers like her, have an emergency fund as Sadie doesn't have guaranteed work every day, so she needs money in case she goes a while between clients. The right answer is b.
Being a freelancer can make you considerably more susceptible to significant monetary changes, such as an unexpected loss of income. According to experts, you should keep three to six months' worth of spending in an untouchable savings account. An emergency fund might assist you in overcoming everyday challenges like the unexpected loss of a customer or late payments.
The goal of an emergency fund is to have enough money set aside to cover all of your monthly needs for at least six months, including your rent or mortgage, car payments, food bills, debt repayments, and any other monthly expenses that may arise.
The correct answer is option b.
Know more about freelancers here
https://brainly.com/question/27934761
#SPJ1
You intend to procure low-value material over a period of time up to a specific amount. What type of purchasing document is best suited for this purpose?
a. blanket PO
b. release PO
c. service PO
d. standard PO
If you intend to procure low-value material over a period of time up to a specific amount, a blanket PO is the best-suited purchasing document for this purpose.
A blanket PO allows you to purchase a specific quantity of goods or services at a fixed price over a set period of time. This type of PO is ideal for purchasing low-value materials or services that are used on an ongoing basis, such as office supplies or maintenance services. With a blanket PO, you can save time and reduce administrative costs by consolidating multiple orders into a single document.
A release PO, on the other hand, is used for one-time purchases of goods or services that are not recurring in nature. A service PO is used to purchase services, such as consulting or repair services, and a standard PO is used for purchases that do not fit into the other categories. However, for low-value materials that are purchased over time, a blanket PO is the most appropriate choice as it allows for greater control and efficiency in the process.
Learn more about intend here:
https://brainly.com/question/27717012
#SPJ11
Year 1 Year 2 Year 3 Year 4 Unit sales 4,800 5,100 5,000 5,120 Sales price $22.33 $23.45 $23.85 $24.45 Variable cost per unit $9.45 $10.85 $11.95 $12.00 Fixed operating costs $32,500 $33,450 $34,950 $34,875 This project will require an investment of $15,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t = 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project's four-year life. McFann pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be under the new tax law. Determine what the project's net present value (NPV) would be under the new tax law. $55,045 O $49,541 O $63,302 O $44,036 Now determine what the project's NPV would be when using straight-line depreciation. Using the depreciation method will result in the highest NPV for the project. No other firm would take on this project McFann turns it down. How much should McFann reduce the NPV of this project if it discovered that this project would reduce one of its division's net after-tax cash flows by $600 for each year of the four-year project? O $1,582 O $1,861 O $1,117 O $1,396
The NPV of the project under the new tax law is $55,045. the NPV of the project using straight-line depreciation is:
NPV = $280,421 - $15,000 = $265,421
Using straight-line depreciation, the annual depreciation expense would be ($15,000 / 4) = $3,750. So, the annual taxable income for the project would be:
Year 1: ($102,533 - $3,750) = $98,783
Year 2: ($115,455 - $3,750) = $111,705
Year 3: ($119,250 - $3,750) = $115,500
Year 4: ($123,936 - $3,750) = $120,186
The tax on each year's taxable income would be:
Year 1: $24,695.75
Year 2: $27,926.25
Year 3: $28,875
Year 4: $29,546.50
So, the after-tax cash flows for each year would be:
Year 1: $73,087.25
Year 2: $83,528.75
Year 3: $86,375
Year 4: $90,639.50
The total present value of these cash flows, using a discount rate of 11%, is $280,421. Therefore, the NPV of the project using straight-line depreciation is:
NPV = $280,421 - $15,000 = $265,421
If the project reduces one of McFann's division's net after-tax cash flows by $600 per year, then the project's NPV should be reduced by the present value of these cash flows, discounted at the WACC of 11%. So, the reduction in NPV would be: the new NPV of the project would be:
New NPV = $265,421 - $1,117 = $264,304
Reduction in NPV = ($600 * 4) / (1 + 0.11)^1 + ($600 * 4) / (1 + 0.11)^2 + ($600 * 4) / (1 + 0.11)^3 + ($600 * 4) / (1 + 0.11)^4
Reduction in NPV = $1,117
Therefore, the new NPV of the project would be:
New NPV = $265,421 - $1,117 = $264,304
Learn more about NPV
https://brainly.com/question/29423457
#SPJ4
For each of the following transactions, select whether cash flows from operating activities will Increase, decrease, or remain the same: transactions
a.Purchased merchandise on credit. b.Paid an account payable in cash. c.Accrued payroll for the month but did not pay it. d.Borrowed money from the bank. The term of the note is 90 days. e.Reclassified a long-term note as a current liability.
f. Paid accrued Interest expense. g.Disclosed a contingent liability based on a pending lawsuit. h.Paid back the bank for money borrowed in (d). Ignore interest.
i.Collected cash from a customer for services that will be performed in the next accounting period (i.e., deferred revenues are recorded).
a. Cash flows from operating activities will remain the same. b. Cash flows from operating activities will decrease.
a. Purchased merchandise on credit: Cash flows from operating activities will remain the same, as this transaction does not involve any cash movement.
b. Paid an account payable in cash: Cash flows from operating activities will decrease, as cash is being used to pay an account payable.
c. Accrued payroll for the month but did not pay it: Cash flows from operating activities will remain the same, as this transaction only affects the accruals and not cash.
d. Borrowed money from the bank. The term of the note is 90 days: Cash flows from operating activities will remain the same, as borrowing money affects financing activities, not operating activities.
e. Reclassified a long-term note as a current liability: Cash flows from operating activities will remain the same, as this is a reclassification within liabilities and does not involve cash movement.
f. Paid accrued interest expense: Cash flows from operating activities will decrease, as cash is being used to pay the interest expense.
g. Disclosed a contingent liability based on a pending lawsuit: Cash flows from operating activities will remain the same, as disclosing a contingent liability does not involve cash movement.
h. Paid back the bank for money borrowed in (d): Cash flows from operating activities will remain the same, as this transaction affects financing activities, not operating activities.
i. Collected cash from a customer for services that will be performed in the next accounting period (i.e., deferred revenues are recorded): Cash flows from operating activities will increase, as cash is being received from the customer.
For more about Cash flow:
https://brainly.com/question/30736595
#SPJ11
When should time be devoted to customers to ensure good maintenance of relationships?
A Before, during, and after the sale
B During the order entry process only
C When there is a warranty issue
D When there is a product failure
Time should be devoted to customers before, during, and after the sale to ensure good maintenance of relationships. It is important to establish a strong relationship with customers before the sale by providing information about products and services, answering questions, and addressing concerns.
During the sale, it is crucial to keep communication lines open, provide updates on the order status, and ensure that the customer is satisfied with the purchase process. After the sale, it is equally important to maintain the relationship by following up with the customer to ensure that the product or service meets their expectations. This can include sending out surveys, asking for feedback, and offering assistance with any issues that may arise.
However, it is not enough to only focus on maintaining the relationship during the sale and post-sale process. When there is a warranty issue or a product failure, it is crucial to devote time to the customer to address the issue promptly and effectively. This will not only help to resolve the issue, but it will also demonstrate to the customer that their satisfaction is a top priority. In summary, devoting time to customers before, during, and after the sale is essential for maintaining strong relationships. However, it is equally important to address any warranty issues or product failures promptly and effectively to ensure continued customer satisfaction.
Learn more about customer satisfaction here-
https://brainly.com/question/30784324
#SPJ11
A firm has $200,000 in current assets, $400,000 in long-term assets, $80,000 in current liabilities, and $200,000 in long-term liabilities. What is its net working capital?
Net working capital is a key financial metric used to evaluate a company's liquidity and overall financial health. It represents the difference between a firm's current assets and current liabilities. In this case, the company has $200,000 in current assets and $80,000 in current liabilities.
To calculate the net working capital, you simply subtract the current liabilities from the current assets:
Net working capital = Current assets - Current liabilities
Net working capital = $200,000 - $80,000
Net working capital = $120,000
This means that the company has a net working capital of $120,000. A positive net working capital indicates that the company has enough short-term assets to cover its short-term liabilities, which is a good sign for financial stability. The company's long-term assets and long-term liabilities, while relevant to its overall financial situation, are not directly involved in the calculation of net working capital.
Learn more about current liabilities here:-
https://brainly.com/question/14287268
#SPJ11
if the price of tennis balls goes up from $7.99 to $14.99, what can be expected from suppliers of tennis balls as a result? there will be an increase in quantity supplied. there will be a decrease in quantity supplied. the quantity supplied will not change. there will be an increase in supply.
We can expect an increase in the quantity supplied of tennis balls, but we cannot determine whether there will be an increase in supply without considering other relevant factors.
If the price of tennis balls increases from $7.99 to $14.99, we can expect a change in the behavior of suppliers of tennis balls. To determine the impact on quantity supplied and supply, we need to understand the concepts more precisely:
Quantity supplied refers to the specific amount of a product that suppliers are willing and able to produce and offer for sale at a given price, holding other factors constant. It represents a movement along the supply curve.
Supply, on the other hand, refers to the entire relationship between the price of a product and the quantity supplied. It represents the entire supply curve and can shift due to various factors.
In this case, if the price of tennis balls increases, suppliers will likely respond in the following way:
There will be an increase in quantity supplied: As the price of tennis balls rises, suppliers will find it more profitable to produce and sell tennis balls. They can expect to earn higher revenues per unit, incentivizing them to increase their production and supply more tennis balls.
This movement along the supply curve would result in an increase in quantity supplied.
However, we cannot determine whether there will be an increase in supply based solely on the change in price. The concept of supply refers to the entire relationship between price and quantity supplied, taking into account various factors beyond just the price, such as production costs, input prices, technological advancements, and market conditions.
To determine if there will be an increase in supply, we need more information about these factors.
In summary, based on the given information, we can expect an increase in the quantity supplied of tennis balls, but we cannot determine whether there will be an increase in supply without considering other relevant factors.
Learn more about quantity supplied: brainly.com/question/26374465
#SPJ11
if there is a surplus in the market for loanable funds, then the interest rate question 37 options: rises, so national saving rises. rises, so national saving falls. falls, so national saving rises. falls, so national saving falls.
If there is a surplus in the market for loanable funds, the interest rate falls, so national saving rises.
This occurs because when there is a surplus of loanable funds, lenders have more money to lend out than borrowers are demanding. This excess supply of funds puts downward pressure on interest rates, as lenders compete to attract borrowers. As interest rates fall, the cost of borrowing decreases, making it more attractive for households and firms to invest and consume. This increase in investment and consumption leads to an increase in national saving.
National saving is the sum of private saving (the amount of income that households and firms save) and public saving (the difference between government revenue and spending). When interest rates fall, households and firms are more likely to save their money in banks and other financial institutions, which in turn increases the supply of loanable funds. Additionally, when interest rates fall, the government can borrow money more cheaply, which increases public saving.
Overall, a term surplus in the market for loanable funds leads to a decrease in interest rates, which stimulates investment and consumption, and increases national saving.
Learn more about investment here:
https://brainly.com/question/15105766
#SPJ11
estimate the short run growth rate and the long run grow rate for the firm using historical dividend information
To estimate the short-run and long-run growth rates for a firm using historical dividend information, we can use the dividend discount model (DDM). The DDM is a method of valuing a stock based on the present value of its future dividends. The formula for the DDM is:
P = D/(r-g)
where P is the current price of the stock, D is the current dividend per share, r is the required rate of return on the stock, and g is the growth rate of the dividends.
To estimate the short-run growth rate, we can look at the historical growth rate of the company's dividends over the past few years. For example, if the company's dividends have grown at an average rate of 5% over the past three years, we can use that as an estimate for the short-run growth rate.
To estimate the long-run growth rate, we can look at the company's historical performance over a longer time period, such as the past 10 years. We can also look at industry trends and the company's future growth prospects to come up with an estimate for the long-run growth rate.
Keep in mind that these estimates are not exact and may be subject to error. It is important to use multiple methods and sources of information to come up with a more accurate estimate of the short-run and long-run growth rates.
Overall, estimating growth rates using historical dividend information can provide a useful starting point for valuing a company's stock, but it is important to consider other factors as well, such as the company's financial performance, industry trends, and macroeconomic conditions.
To know more about dividend discount model refer here
https://brainly.com/question/31686730#
#SPJ11
Polishing Your Delivery and Following Up Rehearsing your presentation repeatedly and preparing thoroughly will reduce your stage fright. You should understand various delivery methods and techniques that can improve your delivery. Read the scenario, and answer the question.
You are manager attending a presentation about conflict resolution. You notice that the speaker seems at ease and comfortable in front of a large audience. After the presentation, you decide to talk to the speaker and ask her what she does to be so relaxed. Choose the best response the speaker could give in the scenario above. - I read from my notes and make sure the room is darkened. - I just go into a room and say what is on my mind. - I rehearse repeatedly and practice stress reduction techniques Which techniques will help you conquer stage fright? Check all that apply.
- Ignore any stumbles.
- Feel proud when you finish.
- Don't admit you are nervous.
- Avoid direct eye contact
- Convert your fear into energy.
The best response the speaker could give in the scenario above is: "I rehearse repeatedly and practice stress reduction techniques." Techniques that will help you conquer stage fright include:
- Ignore any stumbles.
- Feel proud when you finish.
- Convert your fear into energy.
A condition of concern or mental strain generated by a challenging circumstance is characterized as stress. Stress is a normal human response that motivates us to deal with problems and risks in our lives. To some extent, everyone is stressed.You have little or no influence on the outcome of a situation. Have obligations that are too much for you. There isn't enough work, activity, or change in your life. You may face prejudice, hatred, or abuse. Positive stress, also known as happy stress or eustress, is the kind of stress reaction we experience when we are excited. Positive stress may also refer to occasions when you respond positively to a challenge posed by a stressor.
To read more about Stressor click here
https://brainly.com/question/29510175
#SPJ11
The speaker's best response would be: "I rehearse repeatedly and practice stress reduction techniques." Rehearsing a presentation multiple times and preparing thoroughly can significantly reduce stage fright.
It's also important to understand various delivery methods and techniques that can improve your presentation skills.
To conquer stage fright, some helpful techniques include:
1. Ignoring any stumbles - Minor mistakes are natural and shouldn't disrupt your flow. Keep moving forward with confidence.
2. Feeling proud when you finish - Celebrate your accomplishments and focus on the positive aspects of your performance.
3. Converting your fear into energy - Use the adrenaline rush from nervousness to enhance your delivery and keep the audience engaged.
It is not advisable to avoid direct eye contact or not admit you are nervous, as these can negatively impact your connection with the audience and hinder your overall presentation.
To learn more about stress reduction techniques click here
brainly.com/question/28269361
#SPJ11
Differences between the inventory count and the perpetual records are adjusted by increasing or decreasing ______. cost of good sold.
The differences between the inventory count and the perpetual records are adjusted by increasing or decreasing the cost of goods sold.
This adjustment helps to align the physical inventory count with the perpetual records and ensures the accuracy of the cost of goods sold. This adjustment is necessary to ensure that the inventory and cost of goods sold accounts accurately reflect the amount of inventory on hand and the cost of goods that have been sold.
When the inventory count is higher than the perpetual records, the cost of goods sold is decreased to reflect the additional inventory on hand. Conversely, when the inventory count is lower than the perpetual records, the cost of goods sold is increased to account for the missing inventory.
To know more about inventory refer here:
https://brainly.com/question/28916857#
#SPJ11
how did ronald reagan hope to help the economy with his reaganomics plans? a. by increasing loans to existing businesses to allow them to decrease prices b. by cutting funding to federal programs and requiring americans to contribute more to maintain the programs c. by increasing taxes so that people would save more d. by cutting taxes so that people would use the extra money to buy more and save more
Ronald Reagan aimed to help the economy with his Reaganomics plan by implementing option D: cutting taxes so that people would use the extra money to buy more and save more.
Understanding ReaganomicsThis approach was intended to stimulate economic growth, increase investment, and ultimately create more jobs.
Reagan aimed to reduce government regulations and spending, which he believed would lead to a more efficient and productive economy.
He also hoped to decrease inflation by tightening the money supply, which would raise interest rates and make it more expensive to borrow money.
Overall, Reaganomics aimed to promote free-market capitalism and reduce government intervention in the economy, with the belief that this would lead to long-term growth and prosperity. However, the success of Reagan's economic policies is still a matter of debate among economists.
Learn more about Reaganomics at
https://brainly.com/question/9603179
#SPJ11
When Amazon decided to begin offering its own brand of products (Amazon Basics) in competition with some of the manufacturers that use Amazon as a distribution channel, this created the potential for___ a)channel disruption. b) channel conflict. c) illegal competition. d) cross-channel conflict. e) unethical competition.
When Amazon decided to begin offering its own brand of products (Amazon Basics) in competition with some of the manufacturers that use Amazon as a distribution channel, this created the potential for channel conflict. Hence, option B is correct.
The manufacturers who rely on Amazon as a distribution channel may see Amazon Basics as a direct competitor, leading to conflict over pricing, placement, and promotions within the channel. This conflict can cause disruptions in the supply chain, affecting the availability and delivery of products to customers.
However, as long as Amazon Basics follows ethical business practices and does not engage in illegal competition, it is within its rights to offer its own products alongside those of other manufacturers on the platform.
To learn more about Channel conflicts, click here:
https://brainly.com/question/31621149
#SPJ11
Answer: Vertical channel conflict
Explanation:
Good competitive intelligence about rivals' strategies, their financial performance, their competitive strengths and weaknesses, the actions and plans they have announced, and the thinking and leadership styles of their executives is valuable because o it enables a company to predict or anticipate what important actions rivals are likely to take next, to be ready with defensive countermoves, and to take rivals' probable actions into account in crafting its own best course of action. O it enables more accurate predictions about which rivals will try to move to a different strategic group, which rivals are most likely to be acquired or merge with another company, and which rivals are strong candidates to leave the industry. O it helps company managers determine which rivals have weak or flawed strategies and which rivals are candidates to exit the industry o it enables a company's managers to make more accurate predictions about future industry driving forces and key success factors and to optimize their selection of which strategic group to be in O good scouting reports on competitors help identify which strategic group the company needs to be in, which strategy elements of rivals should be avoided, and which strategy Slements of rivals are most successful and should be incorporated into the company's own strategy
It enables a company to predict or anticipate what important actions rivals are likely to take next, to be ready with defensive countermoves, and to take rivals' probable actions into account in crafting their own best course of action. Option A is the correct answer.
Competitive intelligence improves business performance by helping companies to isolate and analyze industry trends that affect their planning activities. Regarding customer expectations and the development of competing technologies information, Competitive intelligence allows their secure information.
The company can anticipate the moves rivals are which are likely to make next and with some confidence it crafts its own strategic moves which can be done by using Competitive intelligence. competitor analysis, SWOT analysis, and market analysis are the main components of competitive Intelligence.
To learn more about Competitive Intelligence:
https://brainly.com/question/30615397
#SPJ4
5. The internal labor market is made up of all employees in an industry.
The internal labor market refers to a specific system within a company or organization that consists of its current employees. This system often includes aspects such as hiring, promotions, and compensation. Although it may involve individuals from a particular industry.
it is primarily focused on the employees within a single organization, rather than the entire industry. The statement is not entirely accurate. The internal labor market refers to the pool of job openings within a particular organization or company, and the employees who are eligible and qualified to apply for those positions.
It does not refer to all employees in an industry, which would include employees from various organizations and companies. In an internal labor market, job openings are first advertised within the organization or company, and current employees are given the opportunity to apply for those positions before they are made available to external candidates.
Learn more about internal labor here:
https://brainly.com/question/31608136
#SPJ11
as sales volume increases, an operation's mixed-expense percentage decreases while the total dollar amount of the mixed expense increases.
The statement "As sales volume increases, an operation's mixed-expense percentage decreases while the total dollar amount of the mixed expense increases" is true because when sales volume increases, the mixed-expense percentage decreases due to the fixed component's diminishing proportion, while the total dollar amount of the mixed expense increases due to the rising variable component.
The reasons are as follows:
know more about mixed expenses here: https://brainly.com/question/17061986
#SPJ11
