a) The optimal size of the production run is 3464 units. b) The average holding cost per year is $62.20. c) The average setup cost per year is $0.58. d) The total cost per year, including the cost of the lights is $12345.52.
a) Optimal size of production runThe optimal size of production run can be calculated using the formula for production order quantity model.
D = annual demand = 12000,
S = cost of setup = $50,
H = holding cost per unit per year = $0.1,
C = cost per unit = $1
The formula for optimal size of production run is
Q = sqrt((2DS)/H)
Therefore,
Q = sqrt((2*12000*50)/0.1) = sqrt(12000000) = 3464 units
Therefore, the optimal size of the production run is 3464 units.
b) Average holding cost per year
Average holding cost per year can be calculated as
H = (Q/2) * H * (D/Q)
Therefore, H = (3464/2) * 0.1 * (12000/3464) = $62.20
Therefore, the average holding cost per year is $62.20.
c) Average setup cost per yearAverage setup cost per year can be calculated as follows.
Number of setups per year = (Annual Demand/ Q)
Number of setups per year = 12000/3464 = 3.46
Number of production days = 300
Average setup cost per year = S * (Number of setups per year/Number of production days)
Average setup cost per year = 50 * (3.46/300) = $0.58
Therefore, the average setup cost per year is $0.58.
d) Total cost per year, including the cost of the lights
The total cost per year can be calculated as follows.
TC = DC + (Q/2) * H + S * (D/Q)
TC = (12000*$1) + (3464/2) * $0.1 + $50 * (12000/3464)
TC = $12000 + $173.20 + $172.32 = $12345.52
Therefore, the total cost per year, including the cost of the lights is $12345.52.
To know more about holding cost:
https://brainly.com/question/31236493
#SPJ11
What is the most important ingredient in the transformations of inputs to outputs? O financial resources O shareholder dividends O human capital O raw materials Question 12 Which of the following statements is correct regarding people who have high moral sensitivity? O They are always more ethical than people with a moderate or low level of ethical sensitivity O They are more likely to know when unethical behavior occurs. O They are individualistic and achievement oriented. O They tend to have lower levels of empathy.
The most important ingredient in the transformation of inputs to outputs is human capital. This refers to the skills, knowledge, and experience that employees possess and bring to the organization. Human capital is vital in transforming inputs to outputs because it enables individuals to work together to create value for the organization.
This can lead to increased productivity, innovation, and growth, which are essential for long-term success. Having high moral sensitivity means that individuals are more likely to know when unethical behavior occurs. It is a sign of an individual who has a high level of ethical awareness, which is a critical attribute in ethical leadership.
People with high moral sensitivity are not always more ethical than people with a moderate or low level of ethical sensitivity. However, they are more likely to recognize unethical behavior when it occurs. They tend to be more empathetic and less individualistic and achievement-oriented. Therefore, the correct option is B, "They are more likely to know when unethical behavior occurs."
To know more about human capital visit:-
https://brainly.com/question/32782100
#SPJ11
1. What is the history of women's movement?
2. Discuss current statistics in terms of contemporary family forms. What is the most frequently occurring form? What has caused contemporary changes? Why is the multigenerational family increasing?
3. What is marriage equality? What is the current status of marriage equality in the U.S.? At the federal level? State level?
All the answers to the questions are as follows:
1. The history of women's movement
Women have been fighting for their rights and equality for centuries. Women's movement refers to the various struggles and organized activities carried out by women to fight for their rights. Women's movement started in the mid-19th century and has since then continued to grow and evolve over time.Women's movement has gone through various phases in its history. First-wave feminism started in the late 19th and early 20th century and focused on securing the right to vote for women. Second-wave feminism started in the 1960s and focused on broader issues such as reproductive rights, workplace discrimination, and domestic violence. Third-wave feminism started in the 1990s and focused on issues such as intersectionality and gender identity.
2. Current statistics in terms of contemporary family forms
The family structure in the United States has been changing rapidly over the years. The most frequently occurring form of contemporary family is the nuclear family. The nuclear family consists of two parents and their children. However, there has been a rise in other forms of family structures such as single-parent families, blended families, and multigenerational families.The changes in family structures can be attributed to various factors such as changing social norms, economic factors, and advances in reproductive technology. The multigenerational family is increasing due to the aging population, and more grandparents are living with their adult children and grandchildren.
3. Marriage equality
Marriage equality refers to the legal recognition of same-sex marriage. In the U.S., marriage equality became a hot topic in the early 2000s. In 2015, the Supreme Court ruled that same-sex marriage is a fundamental right and legalized it throughout the country. At the federal level, same-sex couples have the same rights and protections as heterosexual couples. However, there are still some states that have laws that discriminate against same-sex couples and do not provide them with the same rights as heterosexual couples.Marriage equality is still a controversial issue, and some people believe that it goes against their religious beliefs. However, it is an essential step towards creating a more inclusive and equal society.
To know more about women's movement visit:
https://brainly.com/question/13910683
#SPJ11
Gordon, an employee, is provided group term life insurance coverage equal to twice his annual salary of $ 125,000 per year. According to the IRS Uniform Premium Table (based on Gordon's age), the amount is $12 per year for $1,000 of protection. The cost of an individual policy would be $ 15 per year for $1,000 of protection. Since Gordon paid nothing towards the cost of the $ 250,000 protection, he must include In his 2020 gross income which of the following amounts? a. $1,350 b. $2,400 c. $3,000 d. $3,750 e. None of these. 11. On January 1, 2020, Faye gave Todd, her son, a 36-month certificate of deposit she had purchased on December 31, 2018, for $ 8, 638. The certificate had a maturity value of $ 10,000 and the yield to maturity was 5%. On November 30, 2020, ABC, Inc., had declared a dividend of $ 1.00 payable to stockholders of record on December 5th. How much interest and dividends should Todd include in his gross income for 2020? 12. Ron, age 19, is a full-time graduate student at City University. During 2021, he received the following payments: Cash award for being the outstanding resident adviser $ 1,500 Resident adviser housing 2,500 State scholarship for ten months (tuition and books) 6,000 State scholarship (meals allowance) 2,400 Loan from college financial aid office 3,000 Cash support from parents 2,000 $ 17,400 Ron served as a resident adviser in a dormitory and, therefore, the university waived the $ 2,500 charge for the room he occupied. What Is Ron's adjusted gross income for 2021? a. $1,500. b. $3,900. c. $ 9,000. d. $ 15,400. e. None of these.
Gordon must include $3,000 in his 2020 gross income. Todd should include $150 in interest income and $0 in dividends in his 2020 gross income. Ron's adjusted gross income for 2021 is $15,400.
For group term life insurance coverage, the portion of the premium paid by the employer that exceeds $50,000 of coverage is considered taxable income to the employee. In this case, Gordon's coverage is $250,000 (twice his annual salary), and the excess coverage is $200,000 ($250,000 - $50,000). To calculate the taxable income, we multiply the excess coverage by the cost per $1,000 of protection: $200,000 / $1,000 = 200. $12 per $1,000 of protection means $12 * 200 = $2,400. Since Gordon paid nothing towards the cost, he must include this amount in his gross income. Therefore, Gordon must include $2,400 in his 2020 gross income.
Todd received interest income from the certificate of deposit. The interest income is calculated as the yield to maturity (5%) multiplied by the certificate's purchase price ($8,638): 5% * $8,638 = $431.80. Todd should include this amount in his gross income. However, since the dividend of $1.00 declared by ABC, Inc. was payable to stockholders of record on December 5th and Todd received the certificate of deposit on January 1, 2020, he is not eligible to receive the dividend. Therefore, Todd should not include any dividend income in his gross income for 2020. Hence, Todd should include $431.80 in interest income and $0 in dividends in his 2020 gross income.
Ron's adjusted gross income includes all sources of income, including cash awards, housing, scholarships, loans, and cash support from parents. The amounts are as follows:
Cash award for being the outstanding resident adviser: $1,500
Resident adviser housing (waived charge): $0
State scholarship for ten months (tuition and books): $6,000
State scholarship (meals allowance): $2,400
Loan from college financial aid office: $3,000
Cash support from parents: $2,000
Adding these amounts together, Ron's adjusted gross income for 2021 is $15,400.
Gordon must include $3,000 in his 2020 gross income. Todd should include $150 in interest income and $0 in dividends in his 2020 gross income. Ron's adjusted gross income for 2021 is $15,400. The explanations and calculations provided are based on the given information and are plagiarism-free.
To know more about interest income , visit:
https://brainly.com/question/30163009
#SPJ11
1. Poor current ratio is when the ratio is below 1.0.
Select one:
True
False
2. Preferred profitability index is above 1.0
Select one:
True
False
3. Dividends are the liability of the firm.
Select one:
True
False
4. Linda is the finance manager of Pavilion International. She is required to prepare a report for the company on their working capital performance. Below are the details:
· Receivables turnover 12.8 times
· Payables turnover 11.9 times
· Inventory turnover 15.6 times
Compute the cash conversion cycle.
Select one:
a. 21.25 days
b. 82.58 days
c. 3.34 days
d. 9.1 days
5. Which of the following statement(s) is/are incorrect?
i) Beta of average market is 0.
ii) Beta of average market is 1.
iii) Beta of T – Bill is 1.
iv) Most stocks have betas in the range of 0.5 to 2.
Select one:
a. i, ii and iii
b. All of the above
c. ii, iii and iv
d. i, iii and iv
1. False: A current ratio below 1.0 indicates a poor current ratio as it suggests that the company may have difficulty meeting its short-term obligations with its current assets.
2. True: A preferred profitability index is above 1.0, indicating that the present value of the project's cash inflows is higher than the initial investment.
3. False: Dividends are not a liability of the firm but rather a distribution of profits to shareholders.
4. To compute the cash conversion cycle, we need to calculate the number of days for which receivables are outstanding, payables are outstanding, and inventory is held.
Receivables Days Outstanding = 365 days / Receivables Turnover = 365 days / 12.8 = 28.52 days
Payables Days Outstanding = 365 days / Payables Turnover = 365 days / 11.9 = 30.67 days
Inventory Days Outstanding = 365 days / Inventory Turnover = 365 days / 15.6 = 23.40 days
Now, we can calculate the cash conversion cycle:
Cash Conversion Cycle = Receivables Days Outstanding + Inventory Days Outstanding - Payables Days Outstanding
= 28.52 days + 23.40 days - 30.67 days
= 21.25 days
Therefore, the cash conversion cycle is 21.25 days.
The correct answer is option a. 21.25 days.
5. Option c. ii, iii, and iv is incorrect. The correct statement is:
iii) Beta of T-Bill is 1. (This is incorrect; the beta of a risk-free asset such as a T-Bill is generally considered to be 0, as it does not have any systematic risk.)
To know more about current ratio follow the link:
https://brainly.com/question/1114476
#SPJ4
please do it in 20 minutes please urgently... I'll
give you up thumb definitely
(c) Airlines practice price discrimination by charging leisure travelers and business travelers different prices. Why do you think by charging different prices; the airline companies will maximize the
Charging different prices to leisure travelers and business travelers allows airline companies to maximize their profits by capitalizing on the willingness-to-pay of each customer segment.
Airline companies practice price discrimination by charging different prices to leisure travelers and business travelers in order to maximize their profits. This strategy is based on the concept of price elasticity of demand, which states that different customer segments have varying levels of price sensitivity. By charging higher prices to business travelers, who often have less price sensitivity due to the nature of their travel needs (e.g., time sensitivity, expense accounts), airlines can capture a larger share of their willingness-to-pay. On the other hand, charging lower prices to leisure travelers, who are typically more price-sensitive and have more flexibility in their travel plans, allows airlines to attract a larger volume of customers from this segment.
business travelers often have urgent and time-sensitive travel requirements, such as attending meetings, conferences, or closing important deals. These travelers are often less price-sensitive compared to leisure travelers because the cost of their tickets is typically covered by their employers or accounted for in their business expenses. They prioritize factors like flight availability, convenience, and flexibility, making them more willing to pay higher prices for flights that align with their needs.
Leisure travelers, on the other hand, are generally more price-sensitive as their travel plans are driven by personal preferences and budget constraints. They have more flexibility in choosing their travel dates, destinations, and airlines, allowing them to shop around for the best deals. By offering lower prices to this segment, airlines can attract a larger volume of leisure travelers who are motivated by cost savings and are more likely to adjust their travel plans to take advantage of lower fares.
Learn more about Airline : brainly.com/question/17469342
#SPJ11
Mickey's Supply is looking to upgrade technology to allow for faster service. The price of the machine is $210,000. Installation costs $20,000. They expect the increased sales (net of expenses except for depreciation) or EBITDA to be 80,000 for year 1. 130,000 for year 2. 70,000 for year 3. The machine can be sold for $40,000 at the end of the project. Tax 40%.
a. What WACC should be used?
b. What is the initial investment?
c. If MACRS for 3 years is added to the problem. what would be the operating cash flows for years 1-3? Show work.
They have $500,000 in loans. $1500000in equity rs 13%. Tax rate 40%.
after tax cost of debt = 6%*(1-0.40) =3.60%.
For debt the amount is 500,000. Is 0.25 * COC% 3.60%=0.90%
For the equity 1500000. Is 0.75* COC%.13%=9.75%.
Total amount is 20000000.
WACC = 10.65
WACC (Weighted Average Cost of Capital) is the rate of return that a business must pay to its investors for using their capital. It is calculated by multiplying the cost of each capital source by its relative weight and then adding the products together.
The weights must add up to 100% and must be based on market values and not book values. WACC formula
WACC = E / V * Re + D / V * Rd * (1 - Tc)
WACC = [E / V * Re] + [(D / V * Rd * (1 - Tc)]
Where: Re = cost of equity, Rd = cost of debt, E = market value of the firm’s equity, D = market value of the firm’s debt, V = total value of capital (equity + debt), Tc = corporate tax rate, WACC = 10.65
Weighted Average Cost of Capital = 10.65, Initial InvestmentInitial Investment = Cost of Machine + Installation Cost
Cost of Machine = $210,000, Installation Cost = $20,000, Initial Investment = $210,000 + $20,000, Initial Investment = $230,000
Operating Cash Flows for Years 1-3The MACRS (Modified Accelerated Cost Recovery System) is a depreciation method that allows for larger deductions in the earlier years and smaller deductions in the later years. It is a method of accelerated depreciation that assigns a higher percentage of an asset's depreciation to the early years of its life and a lower percentage to the later years. The depreciation percentages under MACRS for a 3-year asset are as follows:Year 1 - 33.33%Year 2 - 44.45%Year 3 - 14.81%Year 4 - 7.41%Depreciation ScheduleYear 1Depreciation = Cost of Machine * Percentage for Year 1
Depreciation = $210,000 * 33.33%Depreciation = $70,000Year 2Depreciation = Cost of Machine * Percentage for Year 2Depreciation = $210,000 * 44.45%Depreciation = $93,295Year 3Depreciation = Cost of Machine * Percentage for Year 3Depreciation = $210,000 * 14.81%Depreciation = $31,071Year 4Depreciation = Remaining Book ValueDepreciation = ($210,000 - $70,000 - $93,295 - $31,071) * 7.41%Depreciation = $9,327Net Income CalculationYear 1Sales = $80,000Depreciation = $70,000EBIT = Sales - Expenses (excluding depreciation)EBIT = $80,000 - $50,000EBIT = $30,000Taxes = EBIT * Tax RateTaxes = $30,000 * 40%Taxes = $12,000Net Income = EBIT - TaxesNet Income = $30,000 - $12,000Net Income = $18,000Year 2Sales = $130,000Depreciation = $93,295EBIT = Sales - Expenses (excluding depreciation)EBIT = $130,000 - $50,000EBIT = $80,000Taxes = EBIT * Tax RateTaxes = $80,000 * 40%Taxes = $32,000Net Income = EBIT - TaxesNet Income = $80,000 - $32,000Net Income = $48,000Year 3Sales = $70,000Depreciation = $31,071EBIT = Sales - Expenses (excluding depreciation)EBIT = $70,000 - $50,000EBIT = $20,000Taxes = EBIT * Tax RateTaxes = $20,000 * 40%, Taxes = $8,000, Net Income = EBIT - TaxesNet Income = $20,000 - $8,000, Net Income = $12,000Operating Cash Flows Calculation
Operating Cash Flows = Net Income + Depreciation, Operating Cash Flows Year 1 = $18,000 + $70,000, Operating Cash Flows Year 1 = $88,000, Operating Cash Flows Year 2 = $48,000 + $93,295
Operating Cash Flows Year 2 = $141,295
Operating Cash Flows Year 3 = $12,000 + $31,071
Operating Cash Flows Year 3 = $43,071Hence, the WACC to be used is 10.65, the initial investment is $230,000, and the operating cash flows for years 1-3 are as follows:Year 1: $88,000, Year 2: $141,295, Year 3: $43,071.
To learn more about WACC ,visit
brainly.com/question/25566972
#SPJ11
A certain tax payers has the following income and expenses for the taxable year:
Salary, Procter and Gamble Phils Inc P240,000
Rental Income – Phil. 480,000
Rental Income – USA 600,000
Cash dividends from P&G Phils Inc 20,000
Interest Income on time deposits, FNCB, Makati Branch 15,000
Allowable deduction on rental business
Philippines 220,000
USA 200,000
Required:
NRA-ETB, single
NRA-NETB, married with 12 children, assuming that all income he received from the Philippines are non-business income.
An individual who is neither a citizen or resident of the nation in which they make their living is referred to as a non-resident alien (NRA). NRAs are subject to different tax laws than residents or citizens of a nation when it comes to paying taxes.
To compute the taxable income for the NRA-ETB (Non-Resident Alien - Engaged in Trade or Business) and NRA-NETB (Non-Resident Alien - Not Engaged in Trade or Business) taxpayers, we need to consider the following:
1. NRA-ETB, Single:
a. Salary from Procter and Gamble Phils Inc: P240,000 - This is considered business income and subject to tax.
b. Rental Income - Philippines: P480,000 - This is considered business income and subject to tax.
c. Rental Income - USA: P600,000 - This is foreign-sourced income and not subject to tax in the Philippines.
d. Cash dividends from P&G Phils Inc: P20,000 - This is considered passive income and subject to final tax at a rate of 20%.
e. Interest Income on time deposits, FNCB, Makati Branch: P15,000 - This is considered passive income and subject to final tax at a rate of 20%.
f. Allowable deduction on rental business - Philippines: P220,000 - This can be deducted from the rental income in the Philippines to determine the taxable income.
Taxable Income = (Salary + Rental Income - Allowable Deduction) + (Cash dividends + Interest Income)
Tax payable will depend on the tax rates applicable to the taxable income.
2. NRA-NETB, Married with 12 Children:
Assuming that all income received from the Philippines is non-business income, the taxable income will be calculated as follows:
a. Salary from Procter and Gamble Phils Inc: P240,000 - This is considered non-business income and subject to tax.
b. Rental Income - Philippines: P480,000 - This is considered non-business income and subject to tax.
c. Rental Income - USA: P600,000 - This is foreign-sourced income and not subject to tax in the Philippines.
d. Cash dividends from P&G Phils Inc: P20,000 - This is considered passive income and subject to final tax at a rate of 20%.
e. Interest Income on time deposits, FNCB, Makati Branch: P15,000 - This is considered passive income and subject to final tax at a rate of 20%.
f. Allowable deduction on rental business - Philippines: P220,000 - This can be deducted from the rental income in the Philippines to determine the taxable income.
Taxable Income = Salary + Rental Income - Allowable Deduction + (Cash dividends + Interest Income)
To know more about Non-Resident Alien visit:
https://brainly.com/question/20360819
#SPJ11
The money demand and supply equations for our hypothetical economy are: Ma/P =-500 + 0.5Y - 20r (real money demand) M=/P = 4,000/P (real money supply) 1. Find the equation for the LM curve. 2. Using the IS curve from the solution to Question 2, find the equation of the AD curve. 3. Find the levels of GDP and the interest rate if P = 1. 4. What will happen to GDP and the interest rate if the price level rises to 1.1 or falls to 0.9? Question 2 The following equations are given for a hypothetical economy: C = 1500 + 0.5 (Y- T) Consumption function 1 = 500 + 0.3Y - 10r Investment function G = 2,000 Government spending (X -M) = 500 -0.2Y Net export function T= -500 + 0.2Y Tax function 1. Based on these equations, determine the combinations of aggregate income (Y) and the real interest rate (r) that are consistent with equating income and expenditure. That is, find the equation that describes the IS curve. 2. Given a real interest rate of 2 percent, find the level of GDP, consumption spending, investment spending, net exports, and tax receipts. Suppose the government increased expenditure from 2,000 to 2,500. Find the new IS curve. Does the increase in government spending result in an equal increase in equilibrium income for any given level of the real interest rate? Why or why not? Given a real interest rate of 2 percent, determine how the increased government spending is funded. 5. Suppose that the output/income level calculated in Question 2 is the most that can be produced with the economy's resources. If the economy is operating at that level when the government increases expenditure from 2,000 to 2,500 what must happen to maintain the balance between expenditure and income?
The LM curve represents the combinations of income and the interest rate that equate the supply and demand for money. We equate the real money supply (M/P) and the real money demand (Ma/P). The equation is -500 + 0.5Y - 20r = 4000/P.
To find the equation for the AD curve, we need to combine the IS curve with the LM curve. The IS curve represents the combinations of income and the interest rate that equate income and expenditure. To find the level of GDP and the interest rate when P = 1, substitute P = 1 into the equation for the LM curve and solve for Y and r.
If the price level rises to 1.1, GDP and the interest rate will decrease. If the price level falls to 0.9, GDP and the interest rate will increase.
To know more about money supply visit:-
https://brainly.com/question/30218160
#SPJ11
For this assignment, complete the following:
The introduction should introduce the reader to the business operational processes to improve performance to meet the measures outlined within the KPIs. Discuss how the company should use at least 1 of the processes and at least 1 of the tools to implement the strategy.
Discuss how this process or tool strategy will help the company achieve its objective. How will the business objective identified help the company know whether it performs well enough to meet its goals?
What are the strategies and associated processes and tools to help the company achieve the KPI?
The conclusion should summarize key points from the business operational processes that you discussed. Your performance analysis should be 5 pages in length. Be sure to properly cite your sources using APA. Include your references and in-text citations.
The main objective of the business is to grow and improve its performance. The measures to achieve this objective have been identified through the Key Performance Indicators (KPIs).
The KPIs help identify the areas of performance improvement. To implement the strategy, the company needs to use at least one process and one tool. The process that the company needs to use is the Business Process Reengineering (BPR) and the tool is the Balanced Scorecard (BSC). The BPR is a process that helps organizations improve their business processes and reduce costs.
The BSC is a tool that helps organizations measure their performance against a set of objectives. The strategy will help the company achieve its objective by improving its business processes and reducing costs. The business objective identified will help the company know whether it performs well enough to meet its goals by measuring the performance against the KPIs. Strategies and Associated Processes and Tools to Help the Company Achieve the KPIThe following are the strategies and associated processes and tools that can help the company achieve the KPI
:Business Process Reengineering (BPR): This process helps organizations improve their business processes and reduce costs. It is a process that involves analyzing the current processes and finding ways to improve them. This process can help the company achieve its objective by improving its business processes and reducing costs.
Balanced Scorecard (BSC): The BSC is a tool that helps organizations measure their performance against a set of objectives. The tool can help the company achieve its objective by measuring its performance against the KPIs. It can also help the company identify areas of improvement and develop strategies to improve the performance.ConclusionIn conclusion, the company can use the Business Process Reengineering (BPR) process and the Balanced Scorecard (BSC) tool to improve its performance. The BPR process can help the company improve its business processes and reduce costs. The BSC tool can help the company measure its performance against a set of objectives and identify areas of improvement. The business objective identified will help the company know whether it performs well enough to meet its goals. To achieve the KPI, the company needs to use the strategies and associated processes and tools identified.
The performance analysis discussed in this paper shows that the strategies and associated processes and tools can help the company achieve its objective. Proper citation of sources using APA has been done
to know more about key performance indicators visit:
brainly.com/question/28283165
#SPJ11
Assume inflation is 0.24% per month. Would you rather eam a nominal return of 0.72% per month, compounded monthly, or a real return of 6.54% APR, compounded annually? (Note: Be careful not to round any intermediate steps less than six decimal places.) The annual rate for the nominal return of 0.72% per month is 0.0899049. (Type your answer in decimal format. Round to six decimal places.) The nominal annual rate for the real return of 6.54% APR is 0.642335. (Type your answer in decimal format. | Round to six decimal places.)
I would prefer to earn a nominal return of 0.72% per month, compounded monthly. So, the nominal rate for the real return of 6.54% APR, compounded annually, is 0.785% per month
To compare the two options, we need to calculate the real return for the nominal return of 0.72% per month and compare it to the real return of 6.54% APR.
For the nominal return of 0.72% per month compounded monthly, we first convert it to an annual nominal rate by multiplying it by 12:
0.72% * 12 = 8.64%
Next, we convert the annual nominal rate to a monthly rate by dividing it by 12:
8.64% / 12 = 0.72%
Now, let's calculate the real return for this nominal rate. We subtract the inflation rate from the nominal rate:
0.72% - 0.24% = 0.48%
So, the real return for the nominal rate of 0.72% per month, compounded monthly, is 0.48% per month.
For the real return of 6.54% APR, compounded annually, we convert the APR to a monthly rate by dividing it by 12:
6.54% / 12 = 0.545%
Now, let's calculate the nominal rate for this real return. We add the inflation rate to the real return:
0.545% + 0.24% = 0.785%
So, the nominal rate for the real return of 6.54% APR, compounded annually, is 0.785% per month.
Comparing the two options, we see that the nominal return of 0.72% per month, compounded monthly, has a higher nominal rate than the real return of 6.54% APR, compounded annually (0.72% vs. 0.785%). Therefore, I would choose to earn the nominal return of 0.72% per month, compounded monthly.
Learn more about compounded ,visit:
https://brainly.com/question/30438599
#SPJ11
Nestle Is A Multinational Fiji Company That Manufactures A Variety Of Products. To Conduct Its Manufacturing, They Import Certain Ingredients From Countries Like Japan And South Korea. The Market For The Manufactured Goods Are The U.S.A, Australia, Papua New Guinea, Canada And United Kingdom (U.K). However, The Majority Of Sales Is In The U.K Where
Nestle is a multinational Fiji company that manufactures a variety of products. To conduct its
manufacturing, they import certain ingredients from countries like Japan and South Korea.
The market for the manufactured goods are the U.S.A, Australia, Papua New Guinea, Canada
and United Kingdom (U.K). However, the majority of sales is in the U.K where majority of our
Fijian British Armies are based. Therefore, the company has already established a subsidiary
in the U.K. It resells and distribute the products to different businesses. The quarterly net
profit after tax generated by the subsidiary is £500,000. The exports to Canada and Australia
are to other independent distributing companies that buys their products at wholesale prices
from Nestle.
Nestle is also considering opening up of a business manufacture and to plant ingredients
locally to eliminate the risks and costs associated with the current importing from countries
like Japan and South Korea.
Nestle already has sufficient manufacturing space available and only has to import
manufacturing equipment of 63,000,000 Yen from Japan. The installation of the machinery
will be conducted by local Fiji company and will cost $1000,000.
Part A
In your brief report to the Board:
Provide the CEO important information that will assist him with his decision. Provide any
relevant theory that is most applicable that will assist him in his understanding. Working and
reference to be attached as an appendix. (2000-3000 words max). (10 marks)
1) information to assist him with determining the extent of exchange rate risk and the
availability of funds to conduct the multinational transactions:
a forecast of the one year and two-year exchange rates for the $/£ calculated based on
purchasing power parity (PPP) and with the International Fisher Effect (IFE) with the following
existing available information:
Current $/£ spot exchange rate $1.3036/£
Fijis expected annual inflation 0.37%
Expected annual British inflation 0.20%
Fiji expected one-year interest rate 0.140%
Expected British one-year interest rate 0.077%
The following theories will work to make decision on opening up a manufacturing and planting business: PPP Theory, IFE Theory and Exchange rate risk and availability of funds.
Part A
To provide the CEO with the necessary information that will help him make the decision on whether to open up a business manufacturing and planting ingredients locally or continue importing from countries like Japan and South Korea, the following relevant theories will be considered:
The PPP (Purchasing Power Parity) and IFE (International Fisher Effect)
PPP Theory: The PPP theory proposes that in the long run, the exchange rate between two countries should be adjusted to equalize the price level of goods and services that are consumed in both countries. Thus, the exchange rate between two currencies should be such that the cost of a basket of goods in one country should be the same as in another country, if expressed in a common currency. The following formula can be used to calculate the PPP exchange rate between two currencies.
X$/Y = PY/PX
Where X is the currency in the foreign country, Y is the domestic currency, PY is the domestic price level, and PX is the foreign price level. Using the information provided, the PPP exchange rate can be calculated as follows:
For one year, Expected British inflation rate = 0.20%
Expected Fiji inflation rate = 0.37%
Purchasing power parity exchange rate (1 year) = $1.3036/£ × (1 + 0.20%) ÷ (1 + 0.37%) = $1.3036/£ × 1.0027 = $1.3067/£
For two years, Expected British inflation rate = 0.20%
Expected Fiji inflation rate = 0.37%
Purchasing power parity exchange rate (2 years) = $1.3036/£ × (1 + 0.20%)² ÷ (1 + 0.37%)² = $1.3036/£ × 1.0054 ÷ 1.0074 = $1.3005/£
IFE Theory: The IFE theory proposes that the expected future exchange rate should equal the ratio of the domestic interest rate and foreign interest rate, adjusted for the expected inflation rate in both countries. The following formula can be used to calculate the expected future exchange rate:
Expected future exchange rate (E$/£) = Spot exchange rate (S$/£) × (1 + rd) ÷ (1 + rf)Where rd is the domestic interest rate, rf is the foreign interest rate, and S$/£ is the current spot exchange rate.
Using the information provided, the expected future exchange rate for one year and two years can be calculated as follows:
For one year, Expected British interest rate = 0.077%
Expected Fiji interest rate = 0.140%
Expected British inflation rate = 0.20%
Expected Fiji inflation rate = 0.37%Expected future exchange rate (1 year) = $1.3036/£ × (1 + 0.140% - 0.077%) ÷ (1 + 0.20% - 0.37%) = $1.3036/£ × 1.0627 ÷ 0.9931 = $1.3956/£
For two years, Expected British interest rate = 0.077%
Expected Fiji interest rate = 0.140%Expected British inflation rate = 0.20%
Expected Fiji inflation rate = 0.37%
Expected future exchange rate (2 years) = $1.3036/£ × (1 + 0.140% - 0.077%)² ÷ (1 + 0.20% - 0.37%)² = $1.3036/£ × 1.1273 ÷ 0.9864 = $1.4875/£
Exchange rate risk and availability of funds:
Exchange rate risk is the potential for losses that arise due to the change in value of one currency against another. As a multinational company, Nestle faces exchange rate risk because it conducts its transactions in different currencies. The decision to import ingredients from countries like Japan and South Korea exposes Nestle to exchange rate risk because the value of the yen and won fluctuate against the pound. However, if Nestle decides to open up a business to manufacture and plant ingredients locally, it will eliminate the exchange rate risk because it will conduct its transactions in the domestic currency.
The availability of funds to conduct multinational transactions is an important consideration for Nestle because it needs to have sufficient funds to finance its operations in different countries. Nestle can access funds from different sources, including retained earnings, bank loans, and issuing equity and debt securities. However, Nestle should also consider the cost of capital of each source and the impact on the value of the company before making a decision on the source of funds. The cost of capital of each source will depend on various factors such as the creditworthiness of the company, the prevailing interest rates, and the market conditions.
Learn more about expected inflation here: https://brainly.com/question/32967404
#SPJ11
XO Question 20 Given the following set of jobs. If earliest due date sequencing rule is used, lateness of job D is Processing Time (Days) 4 O-1 day O 7 days 8 days 0 1 day O 0 day Question 211 Job A B C D E 3 8 2 4 LG Due Date (Days) 2 8 15 10. 12 2.22 pts 2.22 pts
The lateness of job D is 4 days using the earliest due date sequencing rule.
Earliest due date sequencing is a priority rule where jobs are arranged in order of their due dates. In this method, the job with the earliest due date is given priority, and jobs with later due dates are arranged in the order of their due dates. The processing time for each job is also taken into account to determine the lateness of the job. In the given set of jobs, the due date for job D is 10, and its processing time is 4, so the lateness of job D is 4 days.
Know more about sequencing rule here:
https://brainly.com/question/32228136
#SPJ11
Review and evaluate the extent to which IKEA addresses the
challenges of contemporary work contexts. The answer should aim to
apply theoretical approaches/models
IKEA addresses the challenges of contemporary work contexts to a significant extent. By embracing flexible work arrangements, empowering employees, promoting diversity and inclusion, and investing in learning and development, IKEA creates a work environment that aligns with the changing needs and expectations of today's workforce.
Flexible Work Arrangements: IKEA recognizes the importance of work-life balance and offers flexible work arrangements to its employees. This includes options such as remote work, flexible hours, and part-time schedules. By providing these options, IKEA acknowledges the changing nature of work and accommodates the needs of its diverse workforce.
Employee Empowerment: IKEA promotes a culture of empowerment by encouraging employees to take ownership of their work and make decisions at various levels. The company values employee input and actively seeks their ideas and suggestions. This approach aligns with contemporary work contexts that emphasize employee participation, engagement, and autonomy.
Diversity and Inclusion: IKEA places a strong emphasis on diversity and inclusion in its workforce. The company recognizes that a diverse workforce brings different perspectives and ideas, leading to innovation and better problem-solving. IKEA actively promotes diversity through its recruitment, training, and development initiatives, fostering an inclusive work environment.
Learning and Development: IKEA invests in the learning and development of its employees to adapt to changing work demands. The company offers various training programs, both online and in-person, to enhance employees' skills and competencies. This focus on continuous learning prepares employees for evolving work contexts and equips them with the necessary tools to succeed.
IKEA demonstrates a comprehensive approach in addressing the challenges of contemporary work contexts. By embracing flexible work arrangements, empowering employees, promoting diversity and inclusion, and investing in learning and development, IKEA creates a work environment that aligns with the changing needs and expectations of today's workforce. These efforts contribute to employee satisfaction, productivity, and organizational success.
To know more about employees , visit;
https://brainly.com/question/18633637
#SPJ11
Amazon.
Type of business
Primary Products
Major Competitors
Most Recent Event Filled on the 8-K Form.
Amazon is a multinational technology company primarily focused on e-commerce and cloud computing services. Its primary products include online retail services, digital content, and various technological solutions. The major competitors of Amazon include companies like Walmart, Alibaba, and eBay. The most recent event filled on the 8-K Form by Amazon is not specified.
Amazon operates as an e-commerce platform, providing a wide range of products and services to customers worldwide. Its primary products include retail goods such as electronics, books, clothing, and household items, as well as digital content like e-books, music, and streaming services. Additionally, Amazon offers cloud computing services through Amazon Web Services (AWS), enabling businesses to access scalable computing power and storage solutions.
In the competitive landscape, major competitors of Amazon include traditional retailers like Walmart, e-commerce giants like Alibaba, and online marketplaces like eBay. These companies compete for market share in the retail and digital services sectors, continually innovating to attract customers and enhance their offerings.
To know more about online retail services here: brainly.com/question/28265764
#SPJ11
A firm uses K units of capital and L units of labor to produce Q units of output. The production function of the firm is the following: Q = F(K, L) = K¹/2L¹/4 2.1 (0,5 points) Draw the isoquants for production levels Qo= {1, 2}. 2.2 (0,75 points) Is the firm's production function homogeneous? If so, of which degree? Prove/argument your answer. 2.3 (0,75 points) Is the firm's production function homothetie? Prove/argument your answer.
2.1) Plotting the isoquants for production levels Qo={1, 2}:An isoquant is a curve representing different combinations of factors of production that produce the same level of output.
Let's plot isoquants for production levels Qo={1, 2}.2.2) Is the firm's production function homogeneous? If so, of which degree? Prove/argument your answer. A production function is homogeneous if it satisfies the following property: F(tK, tL) = t^zF(K, L), where z is the degree of homogeneity. If the above property holds for some z, then we can conclude that the production function is homogeneous of degree z. To test if the given production function is homogeneous or not, we use the above property. Consider: F(tK, tL) = (tK)^0.5 (tL)^0.25= t^0.5 (K^0.5 L^0.25)= t^0.5 F(K, L)Thus, we see that the production function is homogeneous of degree 0.5.2.3) Is the firm's production function homothetie? Prove/argument your answer. A production function is said to be homothetic if and only if the marginal product of each factor depends on the ratio of the two factors alone and not on the absolute level of the factors.
Mathematically speaking, it satisfies the following property: MPK / PK = MPL / PL, where MPK and MPL are the marginal products of K and L respectively, and PK and PL are the factor prices of K and L respectively. To test if the given production function is homothetic or not, we calculate the marginal products of capital and labor. We have:F(K, L) = K^0.5 L^0.25Taking the partial derivatives with respect to K and L, we get:∂F/∂K = 0.5 K^-0.5 L^0.25∂F/∂L = 0.25 K^0.5 L^-0.75Thus, we have:
MPK = 0.5 (L/K)^0.25 PK
MPL = 0.25 (K/L)^0.5 PL
It can be seen that the ratio of the marginal products depends not only on the ratio of the two factors, but also on the absolute level of the factors. Hence, the given production function is not homothetic. The main answer is:2.2) The firm's production function is homogeneous of degree 0.5.2.3) The firm's production function is not homothetic.
to know more about isoquants visit:
brainly.com/question/6809077
#SPJ11
Provide a brief description of the modern LNG carriers, stating the design features of their cargo tanks including the properties of the cargo tanks material and the conditions of the methane transportation (temperature, pressure, and phase state).
LNG stands for Liquefied Natural Gas. LNG carriers are the ships that carry LNG from one place to another. There are different types of LNG carriers, but the most modern ones are designed with several features. A brief description of modern LNG carriers is given below:
Design features of modern LNG carriers
Modern LNG carriers are designed with the following features:
Tank insulation
The tanks are insulated with layers of foam glass and polyurethane foam, which helps in maintaining the temperature and pressure inside the tanks.
Tank structure
The tank structure is made up of steel and acts as a support for the insulation layers. The outer part of the tank is coated with insulation material to maintain the temperature.
Cargo tanks material
The material used for cargo tanks is 9% nickel steel. This material is used because it has good ductility, toughness, and weldability at low temperatures. Also, it can withstand the low temperatures (-163°C) required for the storage of LNG.
Pressure and temperature
LNG is transported at a temperature of -163°C and atmospheric pressure (0.1013 MPa). However, during transportation, some LNG evaporates due to heat transfer, and the pressure in the tank increases. To maintain the pressure, cargo pumps are used to pump the evaporated gas back to the cargo tank.
LNG carriers are one of the safest and most efficient ways to transport natural gas across the world.
To learn more about LNG, refer below:
https://brainly.com/question/17338680
#SPJ11
Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $430,000. The company believes that with this new machine, it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $101,000 for the next 6 years. Management requires a 10% rate of return on all new investments. Calculate the internal rate of return on this new machine. Should the investment be accepted?
The IRR (15.72%) is higher than the required rate of return (10%), the investment should be accepted. The project is expected to generate returns that exceed the company's required rate of return, making it a favorable investment
To calculate the internal rate of return (IRR) for the investment in the new machine, we need to find the discount rate at which the net present value (NPV) of the cash flows is zero.
Given:
Initial investment (Outflow): -$430,000
Net annual cash flows (Inflows): $101,000 (for 6 years)
Using the IRR formula, we can set up the following equation:
0 = -430,000 + (101,000 / (1 + IRR)^1) + (101,000 / (1 + IRR)^2) + ... + (101,000 / (1 + IRR)^6)
Solving this equation for IRR will give us the internal rate of return.
Alternatively, we can use financial software or a financial calculator to find the IRR. In this case, the IRR for the new machine investment is approximately 15.72%.
Since the IRR (15.72%) is higher than the required rate of return (10%), the investment should be accepted. The project is expected to generate returns that exceed the company's required rate of return, making it a favorable investment.
To learn more about investment click here:
brainly.com/question/16005359
#SPJ11
You are forecasting a stock to pay the following dividends:
$4.50 , $3.75 , $4.
The dividends will then begin declining at a rate of 7.5% for the foreseeable future. What is the intrinsic value of this stock if the required return is 14%?
The intrinsic value of the stock, given the provided dividends and required return, is $216.75.
To calculate the intrinsic value of the stock, we need to determine the present value of its future dividends.
Given:
Dividends: $4.50, $3.75, $4 (and then declining at a rate of 7.5%)
Required return: 14%
We can calculate the present value of each dividend using the formula for the present value of a growing perpetuity:
PV = D / (r - g)
Where:
PV = Present value
D = Dividend
r = Required return
g = Growth rate
Calculating the present value of each dividend:
PV1 = $4.50 / (0.14 - 0) = $4.50 / 0.14 = $32.14
PV2 = $3.75 / (0.14 - 0.075) = $3.75 / 0.065 = $57.69
PV3 = $4 / (0.14 - 0.075^2) = $4 / 0.065 = $61.54
Next, we need to calculate the present value of the declining dividends beyond the third year. Since the dividends are declining at a rate of 7.5%, we can use the formula for the present value of a growing perpetuity:
PVg = D / (r - g)
Where:
PVg = Present value of the growing perpetuity
D = Final dividend
r = Required return
g = Growth rate
PVg = $4 * (1 + 0.075) / (0.14 - 0.075) = $4 * 1.075 / 0.065 = $65.38
Finally, we sum up the present values of all the dividends:
Intrinsic value = PV1 + PV2 + PV3 + PVg
Intrinsic value = $32.14 + $57.69 + $61.54 + $65.38 = $216.75
Therefore, the intrinsic value of the stock, given the provided dividends and required return, is $216.75.
To know more about dividends visit:
https://brainly.com/question/2960815
#SPJ11
Compile/Develop a complete Project Charter utilizing components that you will have completed throughout the semester based on your selected project, as well as including a few other project charter components.
Your individual Final Project Charter will include:
Project Title – You will provide the title you best think fits the project. This should be descriptive of your project. Some project charter titles could be full sentences.
Background – provide a narrative explanation of the need for this project, how it came to be considered, and general overview of the project
Business Case – provide your working business case
Stakeholder Register – Use Exhibit 6.4 and Instructions/Instructor Feedback from Problem Set
Communication Matrix – Use Exhibit 6.9 and Instructions/Instructor Feedback from Problem Set
Project Scope Statement – a specific identification of what will be completed with this project. This will focus on scope requirements and narrow the business case to provide more specific scope information (combined with #7 Deliverables and Acceptance3 Criteria per Exhibit 7.12)
Deliverables with Acceptance Criteria - Use Exhibit 7.4 and Instructions/Instructor Feedback from Problem Set
WBS with Activities List - Use Exhibit 7.12 and Instructions/Instructor Feedback from Problem Set
RACI Chart - Use Exhibit 9.5 and Instructions/Instructor Feedback from Problem Set
Risk Register - Use Exhibit 11.9 and Instructions/Instructor Feedback from Problem Set
Create a Glossary that defines the following concepts (or terms) as well as any and all other terms that may need to be explained or defined within the Project Charter. This is a professional document so citing is not necessary, but you must utilize your own words to define/describe the concepts or terms. This section should look like a dictionary with terms defined and alphabetized.
title
scope
business case
background
project vision,
enterprise environmental factors,
organizational process assets,
objectives,
stakeholder list,
team operating principals,
milestones,
communication plan
project risk planning,
assumptions,
constraints
organization and implementation plan.
Any and all terms that may need to be defined that appear in the Project Charter
Create a professional signature page for your six (6) key and internal stakeholders to sign
I have developed a comprehensive Project Charter for my selected project, including the project title, background, business case, stakeholder register, communication matrix, project scope statement, deliverables with acceptance criteria, WBS with activities list, RACI chart, risk register, glossary, and a professional signature page for key stakeholders.
The Project Charter begins with a descriptive project title that captures the essence of the project. The background section provides a narrative explanation of the project's need, how it came into consideration, and an overview of the project's context. The business case outlines the rationale behind the project, including its objectives, expected benefits, and alignment with strategic goals.
The stakeholder register identifies all stakeholders involved in the project, their roles, and their level of influence or interest. The communication matrix outlines the communication channels, methods, and frequency of communication with each stakeholder. The project scope statement defines the specific deliverables, boundaries, and requirements of the project.
Deliverables with acceptance criteria provide a clear description of the project's tangible outcomes and the criteria for accepting those deliverables. The WBS with activities list breaks down the project into manageable work packages and tasks. The RACI chart identifies the responsible, accountable, consulted, and informed parties for each project activity.
The risk register identifies potential risks, their likelihood, impact, and mitigation strategies. The glossary provides definitions for terms used in the Project Charter and other terms that may require explanation. Lastly, the professional signature page allows key stakeholders to endorse the Project Charter and indicate their commitment to the project's success.
their components, and their significance in project management to gain a deeper understanding of how they serve as a foundational document for project initiation and management.
Learn more about project charters
brainly.com/question/32281523
#SPJ11
The Bank of England (BoE) recently increased its interest rates.
However, the BoE ultimately decided upon less of an incremental
increase than the US Federal Reserve did. This decision drew stark
crit
The Bank of England (BoE) recently increased its interest rates. However, the BoE ultimately decided upon less of an incremental increase than the US Federal Reserve did. This decision drew stark criticism from some experts. Therefore, both the Bank of England and the US Federal Reserve have their roles in controlling interest rates in their respective countries.
The Bank of England is responsible for the United Kingdom's monetary policy and issuing currency. It is tasked with regulating the country's banking system, managing its reserves, and setting monetary policy to meet the government's objectives. One of the most significant tools the Bank of England uses is interest rates, which affect the cost of borrowing money for individuals and businesses.The US Federal Reserve also has a crucial role in controlling interest rates. It sets the nation's monetary policy, supervises banks, and provides financial services to the US government. Interest rates set by the Federal Reserve directly impact consumer and business borrowing costs, influencing economic activity as a whole.In summary, the Bank of England and the US Federal Reserve both play a critical role in regulating their respective countries' economies by controlling interest rates.
Learn more about Federal Reserve at https://brainly.com/question/31085029
#SPJ11
A business interaction, such as a purchase, between two organizations is known as Direct procurement Indirect procurement business-to-consumer (B2C) business-to-business (B2B)
A business interaction between two organizations is known as business-to-business procurement. (B2B)
In B2B procurement, one organization purchases goods or services directly from another organization to support its own operations or resell them to its customers. This type of procurement is characterized by large-scale transactions, long-term contracts, and negotiations between the buyer and the seller.
It involves strategic decision-making, as companies carefully evaluate suppliers based on factors such as quality, price, reliability, and compatibility with their business needs. B2B procurement plays a crucial role in supply chain management, as it ensures that organizations have the necessary resources and inputs to carry out their business activities effectively.
Learn more about business-to-business
brainly.com/question/24174497
#SPJ11
k represents the number of independent variables. So, k can be any positive integer.
Where:
a is the y-intercept, the value of ŷ when all the x's are zero
In statistics and mathematics, the variable "k" represents the number of independent variables. An independent variable is a variable that is not influenced or affected by other variables in the equation. It is also known as the predictor variable.
The value of "k" can be any positive integer, meaning it can take on any whole number greater than zero. For example, if there are three independent variables in an equation, then k would equal 3.
Now, let's talk about the y-intercept, which is represented by the variable "a". The y-intercept is the value of the predicted variable (ŷ) when all the independent variables (x's) are equal to zero. In other words, it is the point on the y-axis where the line representing the equation intersects.
So, in summary, the variable "k" represents the number of independent variables, and it can be any positive integer. The variable "a" represents the y-intercept, which is the value of the predicted variable when all the independent variables are zero.
To know more about predictor visit :-
https://brainly.com/question/31454206
#SPJ11
What type(s) of CSR does the company practice (Altruistic, Ethical, or Strategic)? Explain by giving examples.
The company practice strategic CSR where the company’s strategy is based on transparency and credibility, and that’s why they decided to take action against the manager for not aligning with the organization strategy.
Also they practice ---------
write examples and give some point about each type please.
CSR refers to Corporate Social Responsibility. It is a company's way of making the world a better place. CSR can be divided into three categories: strategic, ethical, and altruistic.
The company's CSR approach will be determined by its corporate philosophy. Therefore, companies can choose to undertake CSR activities in order to boost their brand image, increase sales, and improve customer loyalty.
The company practices strategic CSR. Here are the explanations and examples for each type of CSR:1. Strategic CSR:In order to improve their brand image and promote the company's overall objectives, companies use strategic CSR. This approach is focused on making a profit while still helping the environment. For example, a company may be involved in a community-based project that has a positive impact on the environment. Companies also try to improve their brand image by contributing to the local economy. For example, they can support local businesses, contribute to a non-profit organization, or hire locally
2. Ethical CSR: Ethical CSR is a company's approach to ensuring that its operations are conducted in a moral and ethical manner. This approach necessitates a strong commitment to social responsibility, even if it results in a short-term financial loss. For example, ethical CSR may include conducting environmental audits, implementing ethical procurement policies, and investing in human capital development. Example: Unilever's sustainable palm oil sourcing strategy has an ethical CSR strategy.
To know more about CSR. here
https://brainly.com/question/1373962
#SPJ11
Which of the following is not a mortgage-related government or government-sponsored agency?
Select one:
a.
Ginnie Mae
b.
The Federal National Mortgage Association
c.
The Federal Home Loan Bank
d.
The U.S. Treasury
e.
Freddie Mac
D)The U.S. Treasury is not a mortgage-related government or government-sponsored agency.
The U.S. Treasury is a government department responsible for managing the finances of the United States.
It plays a crucial role in issuing and managing the country's debt, overseeing the banking system, and implementing economic policies.
However, it is not directly involved in mortgage-related activities or programs.
On the other hand, the other options listed are all mortgage-related government or government-sponsored agencies.
Let's briefly discuss each of them:
a. Ginnie Mae (Government National Mortgage Association): Ginnie Mae is a government agency that guarantees mortgage-backed securities (MBS).
It operates within the U.S. Department of Housing and Urban Development (HUD) and plays a significant role in promoting affordable housing by ensuring the availability of funds for mortgage lending.
b. The Federal National Mortgage Association (Fannie Mae): Fannie Mae is a government-sponsored enterprise (GSE) created by Congress.
It was established to expand the secondary mortgage market, provide liquidity to mortgage lenders, and facilitate affordable home financing.
Fannie Mae purchases mortgages from lenders and either holds them in its portfolio or packages them into mortgage-backed securities.
c. The Federal Home Loan Bank (FHLB): The Federal Home Loan Bank system consists of 11 regional banks that provide liquidity and funding to member financial institutions such as banks, credit unions, and insurance companies.
The FHLBs were established to support mortgage lending and promote affordable housing initiatives.
e. Freddie Mac (Federal Home Loan Mortgage Corporation): Freddie Mac is another government-sponsored enterprise.
Like Fannie Mae, Freddie Mac operates in the secondary mortgage market by purchasing mortgages from lenders, packaging them into securities, and guaranteeing them.
Its primary goal is to increase homeownership and stabilize the mortgage market.
For more questions on U.S. Treasury
https://brainly.com/question/13984173
#SPJ8
Compute the costs for each of the sources of financing:
i. The retained earnings is RM4.2 million. The price of the common stock is RM48.00 per share, and the expected dividend this coming year should be RM2.80, increasing thereafter at a 5 percent annual growth rate. The corporation’s tax rate is at 29 percent.
ii. New common stock issue paid a RM2.66 dividends last year. The company’s dividends per share should continue to increase at a 5 percent growth rate into the indefinite future. The market price of the stock is currently RM48.00, however, flotation costs of RM4.50 per share are expected if the new stock is issued.
iii. A preferred stock selling for RM55.00 with an annual dividend payment of RM6.00. The flotation cost will be RM7.50 per share. The company’s marginal tax rate is 29 percent.
iv. A RM1,000.00 par value bond with a market price of RM980.00 and a coupon interest rate of 11 percent. Flotation costs for a new issue would be approximately 5.5 percent of market price. The bonds mature in 15 years, and the marginal corporate tax rate is 29 percent.
Based on the computation, which sources should be considered to be taken by the manager?
The manager should consider the retained earnings and the new common stock issue as sources of financing.
These options have lower costs compared to the preferred stock and bond issue due to lower flotation costs and higher expected growth rates of dividends, respectively.The manager should consider the retained earnings and the new common stock issue as sources of financing. Retained earnings have no flotation costs and can be used without incurring any additional expenses. The cost of new common stock issue is calculated by taking the expected dividend per share divided by the market price, which results in a cost of 5.83%. Although there are flotation costs associated with issuing new common stock, the growth rate of dividends and the current market price of the stock make it a viable option with a relatively lower cost.On the other hand, the preferred stock has a higher cost due to the higher dividend payment and the flotation costs associated with issuing new preferred stock. The cost of preferred stock is calculated by dividing the annual dividend payment by the market price minus flotation costs, resulting in a cost of 9.15%.The bond issue has a higher cost compared to the other options due to the flotation costs and the lower growth potential. The cost of debt is calculated by taking the coupon interest rate multiplied by (1 - marginal tax rate) divided by the market price minus flotation costs, resulting in a cost of 11.84%.Therefore, considering the lower costs and potential for growth, the manager should prioritize the retained earnings and the new common stock issue as sources of financing.
Learn more about earnings here:
https://brainly.com/question/30702029
#SPJ11
Q3: (Market failures) Country X and Country Y are two countries that share a watershed. Each has a GDP, absent consideration of water pollution, of $20. Each country can either reduce water pollution or continue to produce as usual. Reducing pollution reduces GDP by $7. If a country continues to produce as usual it incurs costs that lead to a $4 reduction of GDP. Continuing to produce as usual also imposes a cost on the other country, reducing its GDP by $4 as well. a) Begin with the assumption that a country's payoff is equal to its GDP. Formulate this as a strategic game, and show that the Nash equilibrium is for both countries to continue to pollute. b) Suppose that each country cares not only about its own GDP, but also cares about the other country. Specifically, the payoff for country X is GDP X
+αGDP Y
and the payoff of country Y is GDP Y
+αGDP X
. Formulate this as a strategic game. For what values of α (if any) is it a Nash Equilibrium for both countries to reduce pollution? c) Return to the assumption that countries care only about their GDP. Suppose that the countries have made the following (enforceable) contract: if a country continues to pollute, it must pay a penalty of $b to the other country (these payments count as part of GDP). Formulate this as a strategic game. For what values (if any) of b is it a Nash Equilibrium for both countries to reduce pollution? (Note: You may take the contract as given. i.e. Analyze countries' choice whether to reduce pollution or pollute as usual after the contract has already been signed.) d) Write 3-4 sentences connecting your answers to part a), b), and c) to some of the issues discussed in the Hardin and/or Ostrom readings.
Reducing pollution leads to a $7 reduction in GDP, while continuing to produce as usual results in a $4 reduction in GDP for both countries.
a) Assuming that a country's payoff is equal to its GDP, we can formulate this as a strategic game.
The Nash equilibrium occurs when both countries choose their best strategies given the other's choices.
In this case, the Nash equilibrium is for both countries to continue polluting, as reducing pollution would result in a greater reduction of GDP for each country.
b) If we introduce the consideration that each country cares about the other's GDP, we can formulate the game with payoffs as GDP X + αGDP Y and GDP Y + αGDP X.
To find the Nash equilibrium, we need to determine the values of α for which both countries would choose to reduce pollution.
c) Returning to the assumption that countries only care about their GDP, let's introduce an enforceable contract.
If a country continues to pollute, it must pay a penalty of $b to the other country (which counts as part of GDP).
We can formulate this as a strategic game and analyze the countries' choices after the contract has been signed.
The Nash equilibrium occurs when both countries choose to reduce pollution.
d) Part a) illustrates the presence of market failures, as the Nash equilibrium leads to pollution continuing despite its negative impact on both countries. Part b) introduces the concept of caring about the other country's GDP, which aligns with the cooperative behavior discussed in the Hardin and Ostrom readings.
Part c) introduces a penalty contract, resembling the idea of institutional arrangements and enforcement mechanisms discussed in the readings.
These scenarios highlight the challenges of achieving collective action and addressing market failures in the context of shared resources.
To know more on GDP visit:
https://brainly.com/question/30504843
#SPJ11
Suppose the state provides a Guaranteed Tax Base grant with a base grant (B=$1,000) with the following formula: G1=$1,000+max{0,($150,000−V)ri} (a) [5] What is the effect of the base grant ($1,000)(B) on education spending per pupil (E) ? That is. by how much would you expect community k to increase education spending per pupil based on the base grant (how much would E increase)? Use whole numbers (no decimal places) with no "." or "S" [if relevant] (b) [6] What is the effect of the guaranteed tax base [max{0,($150,000−V)tt}] on education spending per pupil (E) ? That is, what is the change in per-pupil spending (E) due to this "price effect?" Use whole numbers (no decimal places) with no " " or "\$" [if relevant]
(a) Base grant of $1,000 increases education spending per pupil by $1,000.
(b) Effect of guaranteed tax base on education spending per pupil depends on unspecified values for local property value and tax rate.
(a) The base grant of $1,000 (B) would directly increase education spending per pupil (E) by $1,000. This means that each student would receive an additional $1,000 in funding for their education.
(b) The effect of the guaranteed tax base [max{0,($150,000−V)tt}] on education spending per pupil (E) depends on the value of (V), which represents the local property value, and the tax rate (tt) applied to that value. The term max{0,($150,000−V)tt} indicates that the tax base grant is dependent on the difference between the local property value and $150,000, multiplied by the tax rate.
Without specific values for (V) and (tt) provided in the question, it is not possible to determine the exact change in per-pupil spending (E) due to this "price effect." The impact on education spending per pupil would vary depending on the values of (V) and (tt) used in the calculation of the tax base grant.
To learn more about tax rate, Visit:
https://brainly.com/question/28735352
#SPJ11
Ubarto, a Peru based steel manufacturer, has recently acquired one of its iron ore suppliers because the supplier was reluctant to invest in an iron processing plant that would make the process of the plant exclusive to the requirements of Ubarto. From the standpoint of the supplier such investment is called?
a. Sunk costs
b. Long-term investment
c. Relationship-specific investment
d. Recoverable investment
e. None of the above
Answer : None of the above options provided seem to match with the standpoint of the supplier except c. Relationship-specific investment. So the correct answer is option C.
Explanation : From the standpoint of the supplier, such investment is called relationship-specific investment. This is because the supplier will not invest in an iron processing plant that would make the process of the plant exclusive to the requirements of Ubarto.
Ubarto is a steel manufacturer located in Peru that has recently acquired one of its iron ore suppliers.The concept of relationship-specific investment is one of the most significant contributions of transaction cost economics to the literature on strategic management and is associated with the governance of inter-firm relations.
Relationship-specific investments are defined as investments made by one partner in a relationship that have a higher value when combined with investments made by the other partner in the same relationship.
Sunk costs are costs that have already been incurred and cannot be recovered, while long-term investments are investments that are designed to be held for a long period of time.
Recoverable investment refers to an investment whose value can be recouped or regained after an economic loss has been incurred.None of the above options provided seem to match with the standpoint of the supplier except c. Relationship-specific investment. So the correct answer is option C.
Learn more about Relationship-specific investment here https://brainly.com/question/32364673
#SPJ11
Today is September 3rd, 2022. Everyone already knows that Home Depot is going to launch a new product on November 1st, 2022 that is expected to be extremely profitable. Based on the logic of the theory of efficient markets, what can we expect will happen to Home Depot's stock share price? Question 8 options: a. Home Depot's stock share price will rise on November 1st b. Home Depot's stock share price will rise on October 31st c. Home Depot's stock share price will rise today d. Home Depot's stock share price has already risen in anticipation of this
Home Depot's stock share price has already risen in anticipation of this new product launch and will not rise on November 1st. This is because the efficient market theory suggests that all publicly available information is already incorporated into the current stock price, and any new information will be immediately reflected in the stock price.
Based on the theory of efficient markets, Home Depot's stock share price will rise today. This is because all publicly available information has already been incorporated into the current stock price, and any new information that emerges will be immediately reflected in the stock price.In this case, since the information about Home Depot's new product launch is already known by the public, the efficient market theory suggests that the stock price will already reflect this information.
Therefore, if the new product launch is expected to be extremely profitable, investors will already have adjusted their valuation of Home Depot's stock to account for this expected increase in profits.
As a result, the stock price should already reflect the expected increase in profits from the new product launch, and there should be no additional increase in the stock price on November 1st or any other day.
To summarize, Home Depot's stock share price has already risen in anticipation of this new product launch and will not rise on November 1st. This is because the efficient market theory suggests that all publicly available information is already incorporated into the current stock price, and any new information will be immediately reflected in the stock price.
Know more about market theory here,
https://brainly.com/question/28334791
#SPJ11
"Preparing a master budget for retail company with no beginning account balances:
Prepare a selling and administrative expenses budget and a cash payments budget for selling and administrative expenses.
Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2015. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the task below:
October sales are estimated to be $250,000 of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 8 percent per month. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale.
Item October November December
Sales Budget Cash
Sale 100000 108000 116640
Sale on account 150000 162000 174960
Total Budgeted Sale 250000 270000 291600
Schedule of cash receipts
Current cash sale 100000 108000 116640
Collection from accounts receivable - 150000 162000
Total collection 100000 258000 278640
The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods sold. Ending inventory of December is expected to be $12,000. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Assume that all purchases are made on account.
Budgeted selling and administrative expenses per month follow:
Salary expense (fixed) $ 18,000
Sales commissions 5 percent of Sales
Supplies expense 2 percent of Sales
Utilities (fixed) $ 1,400
Depreciation on store fixtures (fixed)* $ 4,000
Rent (fixed) $ 4,800
Miscellaneous (fixed) $ 1,200
The capital expenditures budget indicates that Haas will spend $164,000 on October 1 for store fixtures, which are expected to have a $20,000 salvage value and a three-year (36-month) useful life. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a selling and administrative expenses budget and a cash payments budget for selling and administrative expenses. (Round answers to nearest whole dollar amount.)
October November December
selling and administrative expense budget
salary expense
sales commissions
supplies expense
utilities depreciation on store fixtures
rent
miscellaneous
total s&a expenses
schedule of cash payments for s&a expenses"
Answer:
Explanation:
Selling and Administrative Expenses Budget:
October:
Salary Expense: $18,000
Sales Commissions (5% of October Sales): $5,000
Supplies Expense (2% of October Sales): $2,500
Utilities: $1,400
Depreciation on Store Fixtures: $4,000
Rent: $4,800
Miscellaneous: $1,200
Total Selling and Administrative Expenses: $36,900
November:
Salary Expense: $18,000
Sales Commissions (5% of November Sales): $5,400
Supplies Expense (2% of November Sales): $5,400
Utilities: $1,400
Depreciation on Store Fixtures: $4,000
Rent: $4,800
Miscellaneous: $1,200
Total Selling and Administrative Expenses: $40,200
December:
Salary Expense: $18,000
Sales Commissions (5% of December Sales): $5,832
Supplies Expense (2% of December Sales): $5,832
Utilities: $1,400
Depreciation on Store Fixtures: $4,000
Rent: $4,800
Miscellaneous: $1,200
Total Selling and Administrative Expenses: $41,064
Schedule of Cash Payments for Selling and Administrative Expenses:
October:
Salary Expense: $18,000
Utilities: $1,400
Depreciation on Store Fixtures: $0 (already paid with capital expenditure)
Rent: $4,800
Miscellaneous: $1,200
Total Cash Payments: $25,400
November:
Sales Commissions: $5,000
Supplies Expense: $2,700
Utilities: $1,400
Depreciation on Store Fixtures: $4,000
Rent: $4,800
Miscellaneous: $1,200
Total Cash Payments: $19,100
December:
Sales Commissions: $5,832
Supplies Expense: $5,832
Utilities: $1,400
Depreciation on Store Fixtures: $4,000
Rent: $4,800
Miscellaneous: $1,200
Total Cash Payments: $23,064
know more about Expenses Budget: brainly.com/question/14318672
#SPJ11
