Question 1
Discuss the use of volatility breakers/volatility interruptions in
market design and whether they are effective.

Answers

Answer 1

Volatility breakers, also known as volatility interruptions or circuit breakers, are mechanisms implemented in market design to mitigate extreme market volatility and promote stability.

They are designed to temporarily halt or limit trading activities when certain predetermined thresholds of market volatility are breached. The primary goal of volatility breakers is to provide a brief pause in trading, allowing market participants to digest information, reassess their positions, and prevent panic selling or excessive price swings.The effectiveness of volatility breakers in market design is a subject of debate. Proponents argue that they can help prevent market crashes and reduce the impact of extreme price movements. By temporarily halting trading, volatility breakers provide an opportunity for market participants to regain composure and for market mechanisms to operate more efficiently.However, critics point out that volatility breakers can create unintended consequences. Some argue that they may exacerbate panic or market turbulence when trading resumes after a halt, as investors rush to adjust their positions. Additionally, volatility breakers may impede price discovery and limit liquidity during periods of heightened volatility

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Related Questions

Elon Musk, founder and CEO of Tesla and SpaceX
The report should follow the following format:
· Title page (not included in the word count; should be on a separate page)
· Executive Summary (180 - 200 words – not included in the word count; should be on a separate page)
• Topic
• Main purpose
• Main arguments
• Conclusion
• Recommendations · Table of Contents (including page numbers; not included in the word count; should be on a separate page)
· Introduction (135 – 150 words) must include:
• Provides brief background information.
• The purpose of the report
• An overview of the issues that you will discuss (scope/outline of the report)
• State any limitations to the report, or assumptions made (if any)

Answers

As the creator and CEO of Tesla and SpaceX, Elon Musk is a well-known visionary entrepreneur and business mogul. This article tries to examine Elon Musk outstanding contributions to the domains of electric automobiles and space exploration.

A little background:

Co-founding Zip2 and X.com, which ultimately evolved into  marked Elon Musk's entry into the world of entrepreneurship. But what has really attracted praise and attention is his position as the CEO of both Tesla and SpaceX. Under Musk's direction, SpaceX achieved ground-breaking improvements in the aerospace business while Tesla transformed the automotive industry with its electric automobiles.

The report's objective is:

This report's goal is to evaluate Elon Musk contributions to the automotive and aerospace sectors by looking at his business tactics, his innovations, and the effects they have. The study will also go through the issues and squabbles surrounding Musk's business enterprises.

Report's Purpose and Structure:

An outline of Elon Musk's life and career will be given in this article. It will explore the crucial issues.

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National Interest' is a key concept in International Relations. All the nations are always engaged in the process of fulfilling or securing the goals of ...

Answers

National Interest' is a key concept in International Relations. All the nations are always engaged in the process of fulfilling or securing the goals of their respective national interests.

The goal of national interest

The concept of national interest refers to the goals, objectives, and priorities that a nation seeks to pursue to protect and promote its well-being, security, and prosperity in the international arena.

National interests can vary from country to country, depending on factors such as geography, history, culture, economy, and security considerations. They encompass a wide range of areas, including political, economic, social, and security aspects.

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SDM process:
Why is it difficult to evaluate alternatives and construct a
consequence table? How do you deal with uncertainty?

Answers

The difficulty of evaluating alternatives and constructing a consequence table in the SDM process is due to several reasons. The reasons that make it difficult to evaluate alternatives and construct a consequence table are the number of possible choices, the complexity of the data needed to inform the evaluation, the competing interests of various stakeholders, and the fact that decisions are made with incomplete information.

There are different methods to deal with uncertainty in the SDM process. One of the methods to deal with uncertainty is to apply an expert assessment. This technique uses experts to make informed assessments about uncertain information.

Another method to deal with uncertainty is through modeling. Decision models can be used to simulate the outcomes of different alternatives, providing insights into the probability of different consequences.

Another way to deal with uncertainty is by applying sensitivity analysis. This technique helps in identifying how robust the results are to the uncertainties in the input parameters of a decision-making model.

By exploring a range of values for uncertain input parameters, it is possible to identify those that have the most significant effect on the results of a decision.

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All of the following activities are appropriate upon completion of risk response planning EXCEPT: a. The project plan should be updated to reflect any changes to the project schedule, budget or resource assignments. b. A single person should be assigned as the owner of each risk. c. The risk register should be baselined after planning is completed, and should not be updated once the project is in flight. d. The risk register should be updated to reflect the risk response strategies.

Answers

All of the following activities are appropriate upon completion of risk response planning EXCEPT The risk register should be baselined after planning is completed, and should not be updated once the project is in flight. The correct option is c.

After the risk response planning is finished, it is crucial to keep actively managing risks throughout the project. The risk register, a central document that records and monitors identified risks, should be updated frequently to account for any modifications or advancements. This entails revising the risk response plans, reevaluating the likelihood and severity of risks, and recording any fresh risks that might emerge throughout the project.

Option C, which recommends that the risk register be baselined following the completion of planning and not updated once the project is underway, is not a successful strategy. The risk register should be a dynamic tool that is frequently reviewed and updated to ensure its accuracy and effectiveness in addressing project risks since risk management is an ongoing process. The correct option is c.

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A Kerberos client or user is known as which of the following?
-principal
-token
-supplicant

Answers

A Kerberos client or user is known as a principal.

The principal is an entity that can be authenticated and authorized to access network resources in a Kerberos authentication system. The principal is typically represented by a unique identifier, such as a username or service name, and is associated with a secret key that is used for authentication. The principal's identity is used during the authentication process to obtain a ticket, which is a cryptographic token that grants access to specific resources within the network. Throughout this process, the principal's identity and the integrity of the communication are protected by the Kerberos protocol. The principal does not need to transmit its credentials (such as a password) over the network, as the ticket serves as a form of proof instead. A Kerberos client or user is known as a principal. The principal represents an entity (user or service) that seeks access to network resources, and it interacts with the KDC to obtain and present tickets for authentication and authorization purposes.

So, the correct answer is "principal."

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Manama Company had cash sales of $80,000, credit sales of $70,000, sales returns and allowances of $2,000, and sales discounts of $4,000. Manama's net sales for this period equal: O $144,000 O $152,000 O $80,000 O $156,000

Answers

Net sales = Cash Sales + Credit Sales -Sales discount - Return Allowances $80000+ $70008) - (84000+ 52000) = $144000. Thus net sales is $144,000. The correct option is a.

Net sales are the sum of a company's gross sales less returns, allowances, as well as discounts. Net sales calculations are not always externally transparent. They are frequently factored in when reporting on the income statement with the top-line revenues.

The income statement is a financial report that is primarily used to analyse a company's revenues, revenue growth, and operating expenses. The revenue statement is divided into three sections to aid in direct cost analysis, indirect cost analysis, and capital cost analysis. Net sales can be found in the section of the revenue statement with direct costs.

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at alaska airlines, the number of mechanical delays allowed each shift is
o 3
o 5
o 1
o 4
o 2

Answers

At Alaska airlines, the number of mechanical delays allowed each shift is 3. Option A is the correct answer.

Alaska's airport customer service representative will provide the passenger advice if Alaska airlines is to blame for a delay of more than three hours. This is done to make sure that an Alaska customer service representative can quickly apologize and offer the Passenger a deal on a future journey. Option A is the correct answer.

For concerned travelers, mechanical problems may seem like a catch-all explanation for airline delays or like a mysterious, even unsettling, prospect. It is possible that we will be given another aircraft to fly on if the delay is expected to be too long. This process takes time since passengers, luggage, baggage, and catering must all be moved to the next aircraft. The reason you're likely waiting on board during a maintenance delay is either because it would take longer to switch aircraft or that there isn't another aircraft available.

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Question 1
0.2 pts
As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 was 574.4 (using a base year of 1914-100). The CPI for Airfare in 2264 was 616.6. Based on this data, what was the inflation rate of airfare from 2263 to 2264?
Enter your answer in decimal format, 4 decimal places.
For example, if the answer is 1.235%, enter as follows: 0.0124

Answers

To calculate the inflation rate of airfare from 2263 to 2264, we can use the formula:

Inflation rate = ((CPI in year 2 - CPI in year 1) / CPI in year 1) x 100

Using the data given, we have:

Inflation rate = ((616.6 - 574.4) / 574.4) x 100
Inflation rate = (42.2 / 574.4) x 100
Inflation rate = 0.0734 x 100
Inflation rate = 7.34%

Therefore, the inflation rate of airfare from 2263 to 2264 was 7.34%, which we can enter in decimal format as 0.0734.
To calculate the inflation rate of airfare from 2263 to 2264, you can use the following formula:

Inflation rate = (CPI in 2264 - CPI in 2263) / CPI in 2263

Step 1: Find the difference in CPI values between the two years.
Difference = 616.6 (CPI in 2264) - 574.4 (CPI in 2263) = 42.2

Step 2: Divide the difference by the CPI in 2263.
Inflation rate = 42.2 / 574.4 = 0.07345 (rounded to 5 decimal places)

Step 3: Convert the inflation rate to 4 decimal places in decimal format.
Inflation rate = 0.0735

So, the inflation rate of airfare from 2263 to 2264 is 0.0735 or 7.35% when expressed as a percentage.

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the taxing of which good or service would result in the least amount of deadweight loss?
a. Opiod Prescriptions (Highly addictive pain relieving medications)
b. car wash service
c. cavity filling service performed by a dentist
d. HIV medication

Answers

Option b is correct. Taxing the car wash service would result in the least amount of deadweight loss.

Deadweight loss is a measure of the inefficiency that arises when the allocation of resources is distorted due to taxation. The magnitude of deadweight loss depends on the elasticity of demand and supply for the taxed good or service.

a. Taxing opioid prescriptions: Opioid prescriptions are highly addictive pain relieving medications. These medications are often considered inelastic in demand because they are necessary for patients with severe pain. Taxing such medications could lead to a higher deadweight loss as consumers are less responsive to price changes, and the demand is relatively inelastic.

b. Taxing car wash service: Car wash services are generally considered as non-essential and discretionary expenses. The demand for car wash services tends to be relatively elastic, meaning consumers are more price-sensitive and responsive to changes in prices. Taxing car wash services would likely result in a lower deadweight loss compared to highly addictive medications.

c. Taxing cavity filling service performed by a dentist: Dental services, including cavity filling performed by a dentist, are typically considered essential healthcare services. The demand for healthcare services, especially for necessary treatments like cavity filling, tends to be inelastic as they are crucial for maintaining oral health. Taxing cavity filling services would likely result in a higher deadweight loss compared to car wash services.

d. Taxing HIV medication: HIV medications are essential medications for individuals with HIV/AIDS. Taxing such medications could lead to a higher deadweight loss as the demand for these medications is relatively inelastic due to their critical nature.

Taxing the car wash service would result in the least amount of deadweight loss compared to taxing opioid prescriptions, cavity filling services performed by a dentist, and HIV medications. Car wash services are often discretionary and have a relatively elastic demand, making them less likely to create significant distortions and inefficiencies in resource allocation compared to the other options.

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Suppose a zero coupon bond with a $100 face value due in 3 years from today is trading today for $84.
How much is the YTM (yield to maturity) of this Zero-coupon bond?
Enter your answer in the following format: 0.1234
Hint: Answer is between 0.0551 and 0.067

Answers

The yield to maturity (YTM) of this Zero-coupon bond is 2.27%.

To calculate the yield to maturity (YTM) of a zero-coupon bond, the formula used is:

Face Value = FPayment / (1 + r)^ n

Where: r = the yield to maturity, FPayment = the price of the bond, n = the number of years to maturity.

Suppose a zero-coupon bond with a $100 face value due in 3 years from today is trading today for $84.

We know, Face value of the bond = $100, Price of the bond = $84, Number of years to maturity = 3 years

Using the formula, we get;

$100 = $84 / (1 + r)³

Calculating further,

1 + r = (100 / 84)¹/³

1 + r = 1.08675

1 + r = 1.0227

r = 0.0227 or 2.27%

Hence, the yield to maturity (YTM) is 0.0227 or 2.27% in percentage form.

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Elasticity of demand is 2.6. We would say those customers are?
price sensitive, not price sensitive, or marginal

Answers

Customers with an elasticity of demand of 2.6 are price-sensitive, meaning that they are responsive to changes in price.

How to Interpret Elasticity of Demand?

With an elasticity of demand of 2.6, we would say that those customers are price-sensitive. An elasticity of demand greater than 1 indicates that a small change in price leads to a proportionately larger change in quantity demanded.

In this case, a 1% increase in price would result in a 2.6% decrease in quantity demanded. The higher the elasticity, the more responsive customers are to price changes, indicating a higher level of price sensitivity.

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Which of the following budgets depends directly on the production budget? selling and administrative expenses budget sales budget capital acquisitions budget labor budget

Answers

The labor budget is the budget that directly depends on the production budget.

The production budget outlines the expected level of production for a specific period. It determines the quantity of goods or services that a company plans to produce during that period. The production budget takes into account factors such as sales forecasts, inventory levels, and desired ending inventory.

The labor budget, on the other hand, determines the labor requirements necessary to meet the production targets set in the production budget. It involves estimating the number of employees needed, their working hours, wages, and other labor-related costs. The labor budget is closely linked to the production budget because the level of production directly affects the labor needs of the organization.

Other budgets mentioned in the options, such as the selling and administrative expenses budget, sales budget, and capital acquisitions budget, may indirectly be influenced by the production budget, but they do not directly depend on it.

The selling and administrative expenses budget relates to the costs associated with sales and administrative functions, including

AdvertisingMarketingSalaries of sales personnelAdministrative staff

While the production budget can impact sales volumes, it is not the direct determinant of selling and administrative expenses.

The sales budget focuses on estimating the expected sales revenue and unit sales volume. While it can be influenced by the production budget, it is not directly dependent on it.

The capital acquisitions budget is concerned with the company's planned investments in long-term assets such as machinery, equipment, or property. While the production budget can provide insights into the need for capital investments, the capital acquisitions budget is typically determined separately based on the organization's overall strategic objectives and financial planning.

In summary, of the options provided, the labor budget is the one that directly depends on the production budget. The production budget sets the production targets, and the labor budget determines the labor requirements necessary to achieve those targets.

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Make a presentation on "Customer satisfaction toward service
industry".
Word Limit- 1000-2000

Answers

Customer satisfaction is an essential component in evaluating a company's or organization's performance. It enables firms to know how well they are performing in terms of customer service. It is critical for firms to analyze customer satisfaction levels and make the necessary changes to enhance customer loyalty.

This presentation focuses on the concept of customer satisfaction in the service industry and the factors that influence customer satisfaction.

Introduction: Customer satisfaction has a significant impact on the success of an organization. Companies that achieve high customer satisfaction levels are likely to be successful and have a competitive advantage over their rivals. The service industry is highly dependent on customer satisfaction as it directly affects customer retention. This presentation will discuss how customer satisfaction levels can be improved in the service industry.

Main Body: Customer satisfaction is critical in the service industry because it influences customer loyalty and retention. If customers are not satisfied with a company's services, they are unlikely to return or recommend it to others. Customer satisfaction is influenced by several factors, including service quality, price, convenience, and reputation.

Service Quality: Service quality is a significant determinant of customer satisfaction. It involves the provision of high-quality services that meet or exceed customer expectations. Service quality is influenced by several factors, including reliability, responsiveness, assurance, empathy, and tangibles.

Price: Price is another critical factor that influences customer satisfaction. Customers are likely to be satisfied if they perceive that they have received value for their money. Organizations must ensure that their prices are reasonable and competitive.

Convenience: Convenience is an essential component of customer satisfaction. Customers are likely to be satisfied if a company's services are easy to access, use, and understand. Companies should ensure that their services are easily accessible, and customers can easily find what they are looking for.

Reputation: Reputation is an essential factor that influences customer satisfaction. Customers are likely to be satisfied if they perceive that a company has a good reputation. Organizations should ensure that they have a good reputation and that their services meet or exceed customer expectations.

Conclusion: Customer satisfaction is critical in the service industry, and it influences customer retention and loyalty. Service quality, price, convenience, and reputation are essential factors that influence customer satisfaction. Organizations should ensure that they provide high-quality services, reasonable prices, convenience, and have a good reputation to enhance customer satisfaction and retention.

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You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1,270,000 million. Over the past five years, the price of land in the area has increased 7 percent per year, with an annual standard deviation of 36 percent. A buyer has recently approached you and wants an option to buy the land in the next 12 months for $1,420,000 million. The risk-free rate of interest is 5 percent per year, compounded continuously.
How much should you charge for the option?

Answers

the Charges are≈ -$11,562.95. We may use the Black-Scholes option pricing model to calculate the cost of the option. The following equation determines the price of a European call option:

X * e(r * T) * N = S * e((r + (2 / 2)) * T) * N(d1) (d2)

Where:

Price of a call option, C

$1,270,000 is the current value of the underlying asset (the lot);

r is the risk-free interest rate, which is 5% annually (0.05)

The returns on the underlying asset have an annual standard deviation of 36%. (0.36)

(12 months / 12 months a year) T = Time until expiry (in years) = 1

$1,420,000 serves as the exercise price (the amount the buyer wishes to pay for the land), and N(d1) and N(d2) serve as the cumulative standard normal distribution functions.

Let's first determine d1 and d2:

The formula for d1 is

(ln(S / X) + (r + (2 / 2)) * T) / ( * sqrt(T)).

d2 = d1 * sqrt - (T)

Given the numbers provided, compute the following equation:

d1 = (ln($1,270,000/$1,420,000) + (0.05 + (0.362 / 2)) * 1) / (0.36 * sqrt(1))

d1 ≈ -0.09752

d2 = -0.09752 - 0.36 * sqrt(1), d2 = -0.45752.

Then, using a calculator or a normal distribution table, let's determine N(d1) and N(d2). If N(d1) = 0.4608 and N(d2) = 0.3245, then:

C = $1,270,000 * e^((0.05 + (0.36^2 / 2)) * 1) * 0.4608 - $1,420,000 * e^(0.05 * 1) * 0.3245

C ≈ $128,160 - $139,722.95 \s

C ≈ -$11,562.95

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when composing a career objective, what words should you omit?

Answers

When composing a career objective, it's important to be concise, clear, and focused. Omit vague or overused words, such as "hardworking," "team player," or "detail-oriented."

Instead, use specific terms that demonstrate your skills, achievements, and qualifications. Avoid clichés, jargon, and buzzwords like "synergy," "think outside the box," or "results-driven." Steer clear of ambiguous statements, as they can detract from the clarity of your objective.

To make a strong impression, use action verbs, quantify achievements, and align your objective with the employer's needs. Remember, a well-crafted career objective should be tailored to the position you are applying for, emphasizing your unique attributes and experiences that make you the best candidate for the job.

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Which of the following statements is true regarding the distinction between futures contracts and forward contracts?
A) Futures contracts are exchange-traded, whereas forward contracts are OTC traded.B) All else being equal, forward prices are higher than futures prices.C) Forward contracts are created from baskets of futures contracts.D) Futures contracts are always cash-settled at maturity, whereas forward contracts result in physical delivery

Answers

The true statement regarding the distinction between futures contracts and forward contracts is that A) Futures contracts are exchange-traded, whereas forward contracts are OTC traded.

Futures contracts are standardized agreements traded on organized exchanges, while forward contracts are privately negotiated and traded over-the-counter (OTC). This key difference impacts the level of liquidity, customization, and risk involved in each type of contract.The correct statement regarding the distinction between futures contracts and forward contracts is A) Futures contracts are exchange-traded, whereas forward contracts are OTC traded. Futures contracts are standardized agreements traded on organized exchanges, while forward contracts are privately negotiated and traded over-the-counter (OTC). This key difference impacts the level of liquidity, customization, and risk involved in each type of contract.

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TRUE/FALSE. The "discount rate" is characterized in that it is administered by the Federal Reserve System and is not necessarily subject to market forces.

Answers

The statement "The "discount rate" is characterized in that it is administered by the Federal Reserve System and is not necessarily subject to market forces." is true as as discount rates are interest rates at which federal reserve lends money.

The interest rate at which the Federal Reserve System lends money to commercial banks is referred to as the discount rate. It is not directly determined by market forces but rather is decided and managed by the Federal Reserve more specifically by the Federal Reserve Banks.

The discount rate may be determined by the Federal Reserve while taking monetary policy goals and the state of the economy into account. The discount rate serves as a standard for other interest rates in the financial system and  is one of the instruments the Federal Reserve employs to control the money supply and manage the economy.

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As the manager of a private 250-bed hospital, you want to take
advantage of the Common Assessment Framework to evaluate the
institution. Use only the criterion criteria and compile a table of
question

Answers

A hospital is a setting where we receive medical care and prescription drugs to enhance our health. Every hospital has a management, and managers are important since they aid in the upkeep and security of the employees.

There are the various responsibility are:

Make sure the crew is safe.

Managers oversee the hospital's surroundings.

The manager gives the employees guidance, so they can protect the patient.

Hospital managers maintain high hygiene.

The manager oversees the appropriate operation of the hospital's technological equipment. If these are improper works, something needs to be done to change them.

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Your question is incomplete, but most probably the full question was.

As the manager of a private 250-bed hospital, you want to take advantage of the Common Assessment Framework to evaluate the institution. Use only the criterion criteria and compile a table of questions / concerns per criterion (the answers to the questions will be a guide to quality improvement for your service) (200-250 words).

When it comes to the various models we discuss and ratios, how
can an investor use these models and ratios to help them make
better investment decisions? Should their time frame matter?

Answers

Investors can use models and ratios to make more informed investment decisions. These models and ratios provide quantitative analysis and insights into a company's financial performance, valuation, and market conditions.

Valuation: Ratios like price-to-earnings (P/E), price-to-sales (P/S), and price-to-book (P/B) can help investors assess the valuation of a company compared to its earnings, sales, or book value. Investors can use these ratios to identify potentially undervalued or overvalued stocks and make decisions accordingly. Ultimately, investors should consider a combination of models, proportions, and qualitative analysis to make well-rounded investment decisions. It's crucial to understand the limitations of these tools and consider other factors such as industry trends, management quality, competitive landscape, and macroeconomic conditions. Consulting with a financial advisor can provide personalized guidance based on an individual's investment goals and time frame.

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If a company increases production from 1000 to 2000 units and
total cost increase from 10000 to 15000 dirhams. How much is the
marginal cost?

Answers

The marginal cost of producing one additional unit of output is 5 dirhams.

Marginal cost refers to the increase in cost resulting from the production of one additional unit of output. In the scenario given in the question, the company increased its production from 1000 to 2000 units and the total cost increased from 10000 to 15000 dirhams.

To find the marginal cost, we need to divide the increase in total cost by the increase in the number of units produced:

Marginal cost = (Increase in total cost) ÷ (Increase in units produced)

Marginal cost = (15000 - 10000) ÷ (2000 - 1000)

Marginal cost = 5000 ÷ 1000

Marginal cost = 5 dirhams

Therefore, the marginal cost, based on the provided information, is 5 dirhams.

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Account Current Prior Net sales revenue $648,000 $595,000 $401,760 $425,000 Cost of goods sold Gross profit $246,240 $170,000 Selling/general expenses ...

Answers

Note that the current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year) is Option A - 10.54%.

Why is this so ?

First,   note that net income percentage is a  measure of a company's profitability.  

Start   with the computation of this we need to divide the net income by the net sales revenue and multiply by 100 % like this

Net income percentage = (68,280 / 648,000) x 100%

= 10.54%

Clearly, the current year's net income percentage is 10.54% (Option A)

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Full Question:

Although part of your question is missing, you might be referring to this full question:

See the attached.

If a bank has total reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are 16,000 is:
a. $8,000
b. $120,000.
c. $80,000
d. $140,000.
e. $200,000.

Answers

The answer is c. $80,000.Your answer: The maximum amount of checkable deposits the bank can have if excess reserves are $16,000, given a total reserve of $40,000 and a 20 percent reserve requirement, is (c) $80,000.

To calculate the maximum amount of checkable deposits a bank can have, we use the formula:

Maximum checkable deposits = (Total reserves + Excess reserves) / Reserve requirement

In this case, the total reserves are $40,000 and the excess reserves are $16,000. The reserve requirement is given as 20 percent, or 0.2.

So, using the formula:

Maximum checkable deposits = ($40,000 + $16,000) / 0.2
Maximum checkable deposits = $56,000 / 0.2
Maximum checkable deposits = $280,000

Therefore, the maximum amount of checkable deposits the bank can have is $80,000 (c).

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Explain in your own words, the rationale for using simple forecasting methods SF1 TO SF3 and the circumstances in which they might be applicable. (3 marks) b) Explain in your own words the assumptions made when using forecasting method SF1 (ii) SF2 (iii) SF3 (6 marks) c) Andongkum has a cost of equity capital of 10% and a weighted average cost of capital of 8%. Assume for simplicity that all assets are operating assets, all non-current liabilities are financial liabilities and that there are no current financial liabilities. Round all your quantitative answers to the nearest TWD million. Income statement for the year ended 31/12/2012 TWD million 31/12/2020 TWD million Sales revenue 39,553 37,669 Gross profit 11,470 11,301 expense 3,758 3,767 Net financial expense (before tax) 2,862 3,014 1,257 1,205 Tax on operating income Comprehensive earnings 4,165 3,917 Statement of financial position at 31/12/2020 31/12/2012 TWD million TWD million Non-current assets 75,338 70,064 Current operating assets 16,574 15,068 37,670 33,902 Current operating liabilities Non-current liabilities 37,668 42,188 Common shareholders' equity 35,410 33,327 (i) Use simple forecasting method SF3 to forecast 2022 operating income, comprehensive earnings, abnormal operating income and abnormal earnings. (5 marks) (ii) Using the 2021 growth rates of net operating assets and common shareholders; equity as the permanent growth rates, calculate the estimated intrinsic value of net operating assets and common shareholders' equity at the end of 2021 under SF3. (3 marks) (iii) Calculate the dividend payout ratio implied by the growth rate of common shareholders' equity that you used in (ii). (2 marks) (iv) The effective tax ratio in 2021 was 21%. Use the weight average cost of capital and cost of equity capital that you were given; the intrinsic value of shareholder equity that you calculated in (ii); for formula for the WACC; to calculate the implied market value of debt. (4 marks) (v) With reference to your answers to (iii) and (iv), comment on the extent to which our assumptions were appropriate. (2 marks)

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a) The rationale for using simple forecasting methods SF1 to SF3 is to provide quick and easy estimates of future values based on historical data.

These methods are often used when more sophisticated or complex forecasting techniques are not necessary or feasible due to limited data availability, time constraints, or simplicity requirements. They can be applicable in situations where there is a stable and predictable trend in the data, and historical patterns are expected to continue into the future. b) Assumptions made when using forecasting methods SF1, SF2, and SF3:SF1 assumes a constant growth rate, where future values are projected by applying a fixed percentage increase or decrease to the base value. It assumes that the historical trend will persist and there are no significant changes or external factors influencing the growth rate.SF2 assumes a linear trend, where future values are estimated by fitting a straight line to the historical data. It assumes that the trend observed in the historical data will continue in a linear fashion without any abrupt changes or fluctuations.

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A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $202 and the budgeted price per unit for the wireless and cellular model is $436. The master budget called for sales of 11,000 wireless models and 3,000 wireless and cellular models during the current year. Actual results showed sales of 8,500 wireless models, with a price of $250 per unit, and 4,600 wireless and cellular models, with a price of $600 per unit. The standard variable cost per unit is $90 for a wireless model and $210 for a wireless and cellular model. Required: a. Compute the activity variance for these data. b. Compute the mix and quantity variance for these data (Enter your answers rounded to the nearest whole dollar.)

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(a) The activity variance is $120,000 F for wireless models and $228,000 F for wireless and cellular models.

(b) The total mix and quantity variance for the wireless model is $1,006,875 F. The total mix and quantity variance for the wireless and cellular model is $395,625 UF.

(a) Activity variance shows the difference between the budgeted quantity and the actual quantity, multiplied by the budgeted price per unit of the product. Therefore, the activity variance formula is:

Activity Variance = (Budgeted Quantity - Actual Quantity) x Budgeted Price per Unit

The calculation of the activity variance is as follows:

Wireless model = ($202 - $250) x 2,500 = $120,000 F

Wireless and cellular model = ($436 - $600) x 1,400 = $228,000 F

Therefore, the activity variance is $120,000 F for wireless models and $228,000 F for wireless and cellular models.

(b) Mix and quantity variances can be calculated using the formulas below:

Mix Variance = (Actual Proportion - Budgeted Proportion) x Actual Quantity x Budgeted Price

Quantity Variance = (Actual Quantity - Budgeted Quantity) x Budgeted Price

Budgeted Proportion = Budgeted Sales Quantity of a particular model / Total Budgeted Sales Quantity

Actual Proportion = Actual Sales Quantity of a particular model / Total Actual Sales Quantity

Calculation of the mix and quantity variances is as follows:

Wireless Model = Mix Variance + Quantity Variance

Mix Variance = [($250/$450) - (11,000/(11,000 + 3,000))] x 8,500 x $450 = $140,625 UF

Quantity Variance = (8,500 - 11,000) x $450 = $1,147,500 F

Therefore, the total mix and quantity variance for the wireless model is $1,006,875 F.

Wireless and Cellular Model = Mix Variance + Quantity Variance

Mix Variance = [($600/$450) - (3,000/(11,000 + 3,000))] x 4,600 x $450 = $414,375 UF

Quantity Variance = (4,600 - 3,000) x $450 = $810,000 F

Therefore, the total mix and quantity variance for the wireless and cellular model is $395,625 UF.

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4. Consider the following hypothetical information about the occupational distribution of Country Y. Assume that 100 employed men and 100 employed women work in either Occupation A or Occupation B.
Employed Women Employed Men
Occupation A 70% 20%
Occupation B 30% 80%
Total 100% 100%
a. Calculate the index of occupational segregation by sex using the formula given in footnote 5, Chapter 5.
b. Explain exactly what the number you obtained in (a) means in light of the definition of the sex segregation index.

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a)The index of occupational segregation by sex is -50. b) A negative index indicates that women are highly segregated in a particular occupation.

a. Calculation of index of occupational segregation by sex:The formula for calculating the index of occupational segregation by sex is:

Index of occupational segregation by sex = {[Σ(oi - ei)] / [Σoi]} * 100 Where, oi = Number of men/women in the occupationi.

ei = Number of men/women in the labor force multiplied by the proportion of the occupation in the labor force.

Using the above formula, we can calculate the index of occupational segregation by sex for the given data.

The calculation is as follows:Index of occupational segregation by sex = {[20/50 - 80/50 + 50/50 - 50/50]/ [20/50 + 30/50]} * 100= {-1/2} * 100= -50

Therefore, the index of occupational segregation by sex is -50.

b. Explanation of the number obtained in (a):The index of occupational segregation by sex ranges from -100 to +100. The closer it is to -100, the higher the segregation of women in a particular occupation.

The closer it is to +100, the higher the segregation of men in a particular occupation. A value of zero indicates no occupational segregation by sex.

Therefore, a negative index indicates that women are highly segregated in a particular occupation. In this case, the value of the index of occupational segregation by sex is -50, indicating that women are highly segregated in the occupation with which they are associated.

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a 10 year bond has a par value of 1,000 and a maturity value of 1,500. the bond has semi-annual coupons of 50. the bond is purchased to yield 7.2onvertible semi-annually.

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The 10-year bond, with a par value of $1,000 and maturity value of 1,500 has a semi-annual coupon rate of 50 and is purchased to yield 7.2% convertible semi-annually.

To elaborate, the bond's **par value** is the initial principal amount, which is 1,000 in this case. The bond's maturity value is the amount paid back to the bondholder at the end of its term, here being 1,500.

The semi-annual coupons of 50 represent the interest payments made to the bondholder every six months. The bond's yield of 7.2% is the rate of return the bondholder expects to earn when purchasing the bond, and since it is convertible semi-annually, the yield is effectively 3.6% every six months.

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The current number of shares outstanding for BioGene is 23 million and its current PE ratio is 49. Assuming a yearly growth in earnings of 50 percent for the next four years and a decline in the PE ratio to 25, this implies a valuation of $962 million in 2022. Assume InterWebs earnings (after-tax profits) in 2022 are $6.3 million as stated in their business plan. Assigning a PE ratio of 50 of InterWeb in 2022, what will be their valuation?
What is Barbara’s percentage ownership in each firm assuming nothing else has changes in shares outstanding for either of them in the next 4 years when the options vest.
Using the estimation value in question 1 for 2022, compare the offers in four years when the stock option will be fully vested. Assuming Barbara remains employed until that time and she can sell her options in a cashless transaction on the same day, which stock option offers yield a larger gain?
Make sure to include the cost of the stock options and state all critical assumptions In addition to these compensation matters, what other factors would you suggest Barbara considering in making her decision?

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In 2022, InterWeb's valuation, assuming a PE ratio of 50, would be $315 million. Barbara's percentage ownership in each firm depends on her number of shares and the total shares outstanding,

Based on the given information, InterWeb's valuation in 2022, assuming a PE ratio of 50, would be calculated by multiplying its earnings of $6.3 million by the PE ratio of 50, resulting in a valuation of $315 million. However, the question does not provide the number of shares or options Barbara has for either company, making it impossible to calculate her percentage ownership or compare the offers for a larger gain accurately. To determine Barbara's percentage ownership, we would need the number of shares she holds and the total shares outstanding for each company. Without this information, we cannot calculate her ownership percentages. When evaluating the stock option offers, Barbara would need to consider the exercise price of the options and the number of options granted to determine the potential gains. However, these details are not provided in the question. In addition to compensation matters, Barbara should consider other factors such as the growth prospects and stability of the companies, the competence of their management teams, the industry landscape, and her personal financial goals. These factors can significantly impact the long-term value and potential gains from the stock options.

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.Applying the Cost of Goods Sold Model The following amounts were obtained from the accounting records of Steed Company: Required: Compute the missing amounts.

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To compute the missing amounts for Steed Company, we can apply the Cost of Goods Sold model. The cost of goods sold is a calculation used by companies to determine the cost of producing goods sold during a particular period.

It is calculated by subtracting the beginning inventory from the sum of purchases and adding any additional costs incurred during production. The resulting figure is the cost of goods available for sale, from which the ending inventory is subtracted to determine the Cost of Goods Sold.

In this case, we are given the beginning inventory, purchases, ending inventory, and Cost of Goods Sold. Using these figures, we can calculate the missing amounts of sales and gross profit. Gross profit is calculated by subtracting Cost of Goods Sold from sales. Once we have all the missing amounts, we can analyze the financial performance of the company and make informed decisions.

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Lwando owns a delicatessen, namely Foodies Paradise. Lwando has determined that he needs R5 000 cash per day for customer transactions. Lwando has a choice between going to the bank first thing on Monday morning to withdraw R25 000 - enough cash for the whole week - or going to the bank first thing every morning for R5 000 each time. Lwando puts the cost of going to the bank at R6 per trip. Assume that funds left in the bank earn precisely enough interest to keep their purchasing power unaffected by inflation. Lwando's delicatessen is open 5 days a week for 48 weeks each year. If Lwando goes to the bank every day when the inflation rate is 5%, then the daily trips to the bank would result in net and Lwando's annual shoe leather costs of inflation equal _______. Select one: а. loss of R652; R1 152 b. savings of R652; R1 152 c. loss of R500; R1 440 d. savings of R500; R1 440

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the daily trips to the bank would result in net and Lwando's annual shoe leather costs of inflation equal loss of R500 and R1 440 per year.

So, the answer is option C.

Lwando owns a delicatessen, namely Foodies Paradise. Lwando has determined that he needs R5 000 cash per day for customer transactions.

Lwando has a choice between going to the bank first thing on Monday morning to withdraw R25 000 - enough cash for the whole week - or going to the bank first thing every morning for R5 000 each time. Lwando puts the cost of going to the bank at R6 per trip.

Assume that funds left in the bank earn precisely enough interest to keep their purchasing power unaffected by inflation. Lwando's delicatessen is open 5 days a week for 48 weeks each year. If Lwando goes to the bank every day when the inflation rate is 5%, then the daily trips to the bank would result in net loss of R500; R1 440.

Hence, option (c) is correct.

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the primary role of this mode of transportation is to move large shipments of international freight between continents: a. pipeline b. water c. air d. highway e. rail

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Answer:

Explanation:

The correct answer is b. water.

The primary role of water transportation is to move large shipments of international freight between continents. Ships, including cargo vessels and container ships, are commonly used to transport goods across oceans and seas. Water transportation is particularly efficient and cost-effective for long-distance freight movement, as it can accommodate large volumes of cargo and is suitable for various types of goods, including bulk commodities and containers.

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