4) Annual election of board members is shareholder-friendly. 5) An "earnings surprise" is quarterly earnings 6) Risk Management Policy is shareholders vote ; 7) An analyst publishes research; 8) Higher than expected inventories mean lower production. 9) Real GDP declined by 2.4 percent.
Question 4: Annual election of board members is viewed as more shareholder-friendly. This feature is viewed as more shareholder-friendly because it increases the board’s accountability to shareholders, who are able to elect the board every year. When the board has to be re-elected every year, it has a greater incentive to pay attention to shareholders’ interests.
Question 5: An "earnings surprise" is when a company's actually quarterly earnings differ significantly from analyst estimates. Earnings surprise is when a company's reported quarterly earnings differ significantly from analyst estimates. It may be better or worse than predicted by analysts, which can cause the stock price to rise or fall.
Question 6: Risk Management Policy is not something that shareholders typically vote on at the annual meeting. A risk management policy is a strategy that companies use to manage risks that could have a negative impact on their operations. This policy is typically put in place by a company's management team, and it is not something that shareholders typically vote on at the annual meeting.
Question 7: An analyst who publishes research for Goldman Sachs on 10 stocks in the customer relationship management is considered to work on the "sell side." Analysts who publish research on stocks for brokerage firms are divided into two categories: sell-side and buy-side. Sell-side analysts are employed by brokerage firms and provide investment advice to clients of the firm.
Question 8: Higher than expected inventories mean lower production and growth in future GDP. An unexpected increase in inventories indicates that production was higher than consumer demand. This means that firms will cut back production, leading to lower growth in future GDP.
Question 9: The change in real GDP in the first quarter (released April 28th) was +1.0%. The US Bureau of Economic Analysis (BEA) reported that the real GDP in the United States increased at an annual rate of 1.0 percent in the first quarter of 2021. This was due to the continued effects of the COVID-19 pandemic on the US economy.
Know more about the real GDP
https://brainly.com/question/1383956
#SPJ11
17. This question refers to the function f(x) whose graph is shown below. (a) Suppose that Newton's method is used to solve f(x) = 0, and that the initial value to = -2 is chosen. Use the graph to find the approximate value of 21 (Show on the graph how you derived this). (b) If the initial value x1 = -6 is chosen, will the sequence 11, 12,..., Im... converge upon a root of f(x) = 0? If so, which one?
(c) Give an example of a number which should NOT be chosen as the initial value to, for this problem.
The given graph of the function f(x) is shown below:Now, we are given a few queries to solve, let's solve them one by one.(a) Suppose that Newton's method is used to solve f(x) = 0, and that the initial value to = -2 is chosen.
Use the graph to find the approximate value of 21 (Show on the graph how you derived this).The formula of Newton's method is given as follows:$$x_{n+1}=x_n-\frac{f(x_n)}{f'(x_n)}$$Here, we are given to = -2. So, to find the approximate value of 21 we need to follow these steps:We need to find the tangent line at x = -2 from the graph of the given function. From the graph, the point is (-2, 18) which lies on the tangent line. The slope of the tangent line is f '(-2). Then, we can write the equation of the tangent line as follows:y - 18 = f'(-2)(x + 2)Now, we have to find the point where the tangent line crosses the x-axis. To find this point we have to make y = 0 in the above equation, then:0 - 18 = f'(-2)(x + 2)x + 2 = -18/f'(-2)x = -2 - 18/f'(-2)Now, we need to substitute the value of x into the formula of Newton's method to get the next term. That is,$$x_{n+1}=x_n-\frac{f(x_n)}{f'(x_n)}$$$$x_2 = x_1-\frac{f(x_1)}{f'(x_1)}$$where x1 = -2.So, $$x_2 = -2-\frac{f(-2)}{f'(-2)}$$$$x_2 = -2-\frac{18}{-5}$$$$x_2 = -2+3.6$$$$x_2 = 1.6$$Thus, the approximate value of 21 is 1.6 and this is derived on the graph as shown below:(b) If the initial value x1 = -6 is chosen, will the sequence 11, 12,..., Im... converge upon a root of f(x) = 0. If so, The formula of Newton's method is given as follows:$$x_{n+1}=x_n-\frac{f(x_n)}{f'(x_n)}$$Here, we are given x1 = -6. Let's find the next terms in the sequence to see if it converges to a root of f(x) = 0:$$x_2=x_1-\frac{f(x_1)}{f'(x_1)}$$$$x_2=-6-\frac{f(-6)}{f'(-6)}$$$$x_2=-6-\frac{30}{11}$$$$x_2=-6-2.73$$$$x_2=-8.73$$$$x_3=-8.73-\frac{f(-8.73)}{f'(-8.73)}$$$$x_3=-8.73-\frac{12}{5.59}$$$$x_3=-8.73-2.14$$$$x_3=-10.87$$$$x_4=-10.87-\frac{f(-10.87)}{f'(-10.87)}$$$$x_4=-10.87-\frac{5.84}{3.9}$$$$x_4=-10.87-1.5$$$$x_4=-12.37$$$$x_5=-12.37-\frac{f(-12.37)}{f'(-12.37)}$$$$x_5=-12.37-\frac{2.04}{1.26}$$$$x_5=-12.37-1.62$$$$x_5=-14.00$$Here, we can see that the sequence is moving away from the root instead of converging to it. Hence, the sequence does not converge to a root of f(x) = 0. Thus, there is no root for this case.(c) Give an example of a number which should NOT be chosen as the initial value to, for this problem.The initial value of the function is a very crucial aspect of the Newton-Raphson Method. It decides if we can converge to a solution or not. Let's consider the graph of the given function below:If we start our initial value at x = 2.8, then the Newton-Raphson Method will not converge as it diverges after the first iteration.
To know more about function , visit ;
https://brainly.com/question/11624077
#SPJ11
a) Suppose that Newton's method is used to solve f(x) = 0, and that the initial value to = -2 is chosen. To find the approximate value of 21, draw a tangent line to the graph at x = -2.
The point where the tangent line intersects the x-axis is the next approximation of the root. The approximate value of 21 is -0.5. Refer to the figure below for graphical representation. b) The sequence 11, 12 ,..., Im... will converge upon a root of f(x) = 0 if the initial value x1 = -6 is chosen. Using the graph, we can see that the root between x = -6 and x = -5 is -5. Therefore, the sequence converges to -5.c) -2 should not be chosen as the initial value to solve this problem since the tangent line at x = -2 is vertical. The derivative of f(x) at x = -2 is zero. The root cannot be found by Newton's method if the initial value is chosen at this point, since the tangent line will be vertical.
To get more information about Newton's method visit:
https://brainly.com/question/32581715
#SPJ11
2.1) A document that is prepared by a company that seeks to raise equity funds on the market is known as:
- offer
- invitation
- proposal
- prospectus
2.2) according to the traditional approach of capital structure theory, increasing debt will result in:
-increased WACC
- increased profits
- lower profits
- lower WACC
2.1) The document that is prepared by a company seeking to raise equity funds on the market is known as a prospectus.
2.2) According to the traditional approach of capital structure theory, increasing debt will result in a lower WACC (Weighted Average Cost of Capital).
A prospectus provides detailed information about the company, its financials, operations, and the offering of securities to potential investors.
This is because debt is typically cheaper than equity financing, and as the proportion of debt in the capital structure increases, the overall cost of capital decreases.
However, it's important to note that there are limits to this relationship, as excessive debt can increase the risk of financial distress and raise the cost of debt, eventually leading to higher WACC.
learn more about prospectus here
https://brainly.com/question/32672892
#SPJ11
CASE: Nike is an American multinational corporation that offers a wide vanety of sports footwear, clothing, equipment, accessones, and services Nike differentiates the products and services they c prices and options QUESTION: Which type of market is Nike involved in? For the toolbar, press ALT+F10(PC) or ALT+FN+F10(Mag hing, equipment, accessories, and services Nike differentiates the products and services they offer their customers and present a wide range of
Nike is involved in the consumer market. They offer a variety of sports footwear, clothing, equipment, accessories, and services, and they differentiate their products and services based on prices and options.
Nike operates in the consumer market, which refers to the market where goods and services are sold to individuals for their personal use. Nike's target customers are consumers who are interested in sports and athletic activities. They offer a wide range of products, including sports footwear, clothing, equipment, accessories, and services related to sports and fitness.
Nike differentiates its products and services by offering various options and price points to cater to different consumer preferences and budgets. They have a diverse product line that includes shoes for different sports, apparel for various athletic activities, and accessories like bags, socks, and sports equipment. Additionally, Nike provides services such as customization options, online shopping experiences, and customer support. By offering a wide variety of products and services and catering to the needs and preferences of individual consumers, Nike aims to capture a significant share of the consumer market and maintain its position as a leading sports brand globally.
Learn more about consumer market here: https://brainly.com/question/13178664
#SPJ11
What is the probability that more than 50 customers make a
purchase in a random sample of 100 customers?
a. 0.0207 b. 0.9793 c. 0.1225 d. 0,4051 e. 0.5952
The probability that more than 50 customers make a purchase in a random sample of 100 customers is 0.4048 (option d).
To determine the probability that more than 50 customers make a purchase in a random sample of 100 customers, we can use the binomial probability formula.
The binomial probability formula is given by:
P(X > k) = 1 - P(X ≤ k)
Where:
P(X > k) is the probability that the number of successes (customers making a purchase) is greater than k.
P(X ≤ k) is the cumulative probability that the number of successes is less than or equal to k.
In this case, we want to find the probability that more than 50 customers make a purchase, which means we are looking for P(X > 50). We can calculate this by subtracting the cumulative probability of 50 or fewer customers making a purchase from 1.
Using a binomial probability calculator or a statistical software, we find that P(X ≤ 50) is approximately 0.5952.
Therefore, the probability that more than 50 customers make a purchase in a random sample of 100 customers is:
P(X > 50) = 1 - P(X ≤ 50)
= 1 - 0.5952
≈ 0.4048
Among the given answer choices, the closest option is:
d) 0.4051
For more about probability:
https://brainly.com/question/31828911
#SPJ11
Intro You decided to save $600 every year, starting one year from now, in a savings account that pays an annual interest rate of 7%. Attempt 1/10 for 10 pts. Part 1 How many years will it take until you have 100.000 in the account ?
In approximately 46 years, you will have $100,000 in the account.
To calculate the number of years required to reach a specific amount in the savings account, we can use the formula for the future value of an ordinary annuity: n = log(FV / PMT) / log(1 + r), where n is the number of years, FV is the desired future value, PMT is the annual savings amount, and r is the annual interest rate.
In this case, the desired future value (FV) is $100,000, the annual savings amount (PMT) is $600, and the annual interest rate (r) is 7% (0.07).
Plugging in these values into the formula, we have: n = log($100,000 / $600) / log(1 + 0.07) ≈ 45.9.
Therefore, it will take approximately 46 years to accumulate $100,000 in the account.
To know more about annual savings amount, visit:
https://brainly.com/question/6028326
#SPJ11
case study BREITT, STARR & DIAMOND LLC
Josh Breitt, Rachel Starr, and Justin Diamond started an advertising agency to serve the needs of small businesses selling in and around their metropolitan area. Breitt contributed clever ideas and a talent for writing scripts and wooing clients. Starr brought a wealth of media contacts, and Diamond handled the artwork. Their quirky ad campaigns soon attracted a stream of projects from car dealers, community banks, and a carpet store. Since the agency's first year, these clients have kept the bills paid while the three win contracts from other companies. Breitt, Starr & Diamond (BS&D) prospered by helping clients keep up with the times, and the agency grew to meet the demand, adding a bookkeeper, a graphic artist, a web designer, two salespeople, a social media expert, and a retired human resource manager, who works 10 hours per week. As the firm grew, the three partners felt they were constantly being pulled away from their areas of expertise to answer questions and solve problems about how to coordinate work, define jobs, and set priorities. They realized that none of them had any management training—and none of them had ever wanted to be a manager. They decided to hire a manager for a position they would call general manager of operations. That person would be responsible for supervising the employees, making sure expenses didn't go over budget, and planning the resources (including people) needed for further growth. The partners interviewed several candidates and hired Brad Howser, a longtime administrator for a four-physician medical office. Howser spent the first few weeks quietly studying BS&D's financial data and observing employees at work. Then he became more outspoken and assertive. Although the partners had never cared to monitor what time employees came or left, Howser began requiring all employees to start by 9:00 each morning. The graphic artist and one of the salespeople complained that flexible hours were necessary for their child care arrangements, but Howser was unyielding. He also questioned whether the employees had been shopping carefully for supplies, indicating that from then on, he would be making all purchases, and only after the employees submitted their requests on a form of his design. Finally, to promote what he called team spirit, Howser began scheduling weekly Monday-morning page 369staff meetings. He would offer motivational thoughts based on his experience at his previous job and invite the employees to share any work-related concerns or ideas they might have. Generally, the employees chose not to share. Initially, the partners were impressed with Howser's vigorous approach to his job. They felt more productive than they had been in years because Howser was handling employee concerns himself. Then the top salesperson quit, followed by the social media expert. The bookkeeper asked if she might meet with the partners. "Is it something you should be discussing with Brad?" Rachel asked her. The bookkeeper replied that, no, it was about Brad. All the employees were unhappy with him, and more were likely to leave
question
Identification of Alternatives for each Key Organization and Management Critical Issues and Problems
Evaluation of Alternatives for each Key Organization and Management Critical Issues and Problems
Key Organization and Management Critical Issues and Problems:
Lack of management training and expertise: The partners, Breitt, Starr & Diamond, recognized their lack of management skills and the need for a general manager of operations to handle supervisory tasks and resource planning. However, their decision to hire Brad Howser without considering his compatibility with the agency's culture and values has created issues.
Inflexible work policies: Howser's imposition of strict work hours without considering the needs of employees, such as flexible schedules for child care, has led to dissatisfaction among the graphic artist and a salesperson. This inflexibility may hinder employee morale and work-life balance.
Micromanagement and control: Howser's approach of taking over purchasing decisions and implementing rigid procedures for employee requests limits autonomy and may stifle creativity. Employees may feel disempowered and less motivated in their roles.
Lack of effective communication and collaboration: The implementation of weekly staff meetings by Howser aimed at promoting team spirit has not yielded the desired results. Employees are reluctant to share their concerns or ideas, indicating a breakdown in communication and a lack of trust.
Evaluation of Alternatives for each Key Organization and Management Critical Issues and Problems:
Management Training: The partners could invest in management training programs for themselves and other key employees to acquire the necessary skills and knowledge to effectively manage the agency. This would help them handle employee concerns and coordinate work more efficiently.
Flexibility and Work-Life Balance: Howser could reconsider his approach to work hours and allow for some flexibility, especially for employees with child care responsibilities. This would demonstrate a commitment to employee well-being and potentially improve job satisfaction.
Empowerment and Autonomy: Howser can foster a culture of trust and empowerment by involving employees in decision-making processes, encouraging their input, and providing them with more autonomy in their roles. This approach can enhance motivation and creativity among employees.
Effective Communication and Collaboration: Howser should focus on improving communication channels and creating a safe and inclusive environment during staff meetings. Encouraging open dialogue, active listening, and addressing employee concerns would promote better collaboration and engagement.
Learn more about Empowerment here:
https://brainly.com/question/32109087
#SPJ11
Steve Goodman, production foreman for the Florida gold Fruit Company, estimates that the average sale of oranges is 4,700 and the standard deviation is 500 oranges. Sales follow a normal distribution.
(a) What is the probability that sales will be greater than 5,500 oranges?
(b) What is the probability that sales will be greater than 4,500 oranges?
(c) What is the probability that sales will be less than 4,900 oranges?
(d) What is the probability that sales will be less than 4,300 oranges?
The task involves calculating the probabilities of different sales levels for oranges, given the average sale of 4,700 and a standard deviation of 500, assuming a normal distribution. The probabilities to be calculated are: (a) sales greater than 5,500 oranges, (b) sales greater than 4,500 oranges, (c) sales less than 4,900 oranges, and (d) sales less than 4,300 oranges.
(a) Probability of sales greater than 5,500 oranges:
To calculate this probability, we need to standardize the value using the z-score formula. The z-score is calculated as (X - mean) / standard deviation. Thus, for 5,500 oranges:
z = (5,500 - 4,700) / 500 = 0.8
Using a standard normal distribution table or a statistical calculator, we can find the probability associated with a z-score of 0.8. Let's assume the probability is P1.
(b) Probability of sales greater than 4,500 oranges:
Similarly, for 4,500 oranges:
z = (4,500 - 4,700) / 500 = -0.4
Using the same approach, we can find the probability associated with a z-score of -0.4. Let's assume the probability is P2.
(c) Probability of sales less than 4,900 oranges:
To calculate this probability, we can use the complement rule. Since the complement of "less than 4,900 oranges" is "greater than or equal to 4,900 oranges," we can subtract the probability of sales being greater than or equal to 4,900 from 1. Let's assume the probability of sales being greater than or equal to 4,900 is P3.
(d) Probability of sales less than 4,300 oranges:
Similar to (c), we can use the complement rule and subtract the probability of sales being greater than or equal to 4,300 from 1. Let's assume the probability of sales being greater than or equal to 4,300 is P4.
By calculating these probabilities, we can determine the likelihood of different sales levels for oranges, given the mean and standard deviation.
Learn more about oranges click here;
https://brainly.com/question/30947515
#SPJ11
There are six trailers waiting at docking station to be unloaded. The times required to unload each trailer and the times that materials they contain are due in the manufacturing are given in the table: Trailer Promised Time (hours) Unloading Time (hours) A 10 6 B 5 4 35 15 D 25 18 E 20 10 15 12 C F a. (13 ints). Sequence the trailers to minimize the number of tardy containers using Moore algorithm b. . Provide the optimal sequence including the six trailers.
To sequence the trailers and minimize the number of tardy containers using the Moore algorithm, we need to follow these steps:
a. Calculate the slack time for each trailer by subtracting the unloading time from the promised time. Trailer Unloading Time (hours) Promised Time (hours) Slack Time (hours) A 6 10 4 B 4 5 1 C 15 35 20 D 18 25 7 E 10 20 10 F 12 15 3
b. Sort the trailers in ascending order of their slack time. Trailer Slack Time (hours) B 1 F 3 D 7 A 4 E 10 C 20 c. Sequence the trailers based on the sorted slack time. Optimal sequence: B - F - D - A - E - C. Therefore, the optimal sequence to minimize the number of tardy containers using the Moore algorithm is: Trailer B, Trailer F, Trailer D, Trailer A, Trailer E, Trailer C.
Learn more about Moore algorithm here
https://brainly.com/question/29316461
#SPJ11
Intro
A zero-coupon bond with a face value of $100,000 and a current price of $89,195 matures in 4 years.
Part 1
What is the yield to maturity if you hold the bond until the maturity date?
The yield to maturity of the zero-coupon bond, if held until the maturity date, is 2.86%.
To calculate the yield to maturity (YTM) of a zero-coupon bond, we can use the following formula:
YTM = ((Face Value / Current Price)^(1/Number of Years) - 1) * 100%
Given the following information:
Face value of the bond = $100,000
Current price of the bond = $89,195
Maturity period = 4 years
Substituting the values into the formula, we can calculate the yield to maturity:
YTM = (($100,000 / $89,195)^(1/4) - 1) * 100%
= (1.1219^(1/4) - 1) * 100%
= (1.0286 - 1) * 100%
= 0.0286 * 100%
= 2.86%
Therefore, the yield to maturity of the zero-coupon bond, if held until the maturity date, is 2.86%.
To know more about yield to maturity visit:
brainly.com/question/13324776
#SPJ11
Product P is formed by components A and B. Component A is formed by parts F and G. Component B is formed by parts G and H. The inventory count is as follows Product P: 4 units. Component A: 7 units. Component B: 7 units. Part H: 7 units. Part F: 10 units. For the following bill of material, if we need to produce 23 units of finished product P. how many units of Part H is required? Р |A(3) B(2) F(3) G(3) G(2) H(4)
The number of units of Part H required is 46 units.
A bill of materials (BOM) is a comprehensive list of raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an end product. A BOM may be utilized for communication between producing partners or confined to a single manufacturing plant. A bill of materials is also used to plan costs and control inventory. The bill of materials is typically named for the finished product it is utilized to create. Bill of Material for the given problem:BOMProduct P: A(3) B(2) F(3) G(3) G(2) H(4)Component A: F(2) G(2)Component B: G(2) H(2)Now, let us see the total number of units required to produce 23 units of finished product P.Product P: 23Units of A required to produce 23 units of P: 23 * 3 = 69Units of F required to produce 69 units of A: 69 * 2 = 138Units of G required to produce 69 units of A: 69 * 2 = 138Units of B required to produce 23 units of P: 23 * 2 = 46Units of G required to produce 46 units of B: 46 * 2 = 92Units of H required to produce 46 units of B: 46 * 2 = 92 Therefore, the number of units of Part H required is 46 units.
Learn more about units here :-
https://brainly.com/question/29674442
#SPJ11
QUESTION 2 Depreciation and overhauls GST version Branson Ltd owns two delivery vehicles (each with a residual value of $5,000 and useful life of 4 years) and uses the straight-line method of depreciation. The business closes its accounting records annually on 30 June. The following events and transactions occurred during the first 3 financial years. 2019-2020: 1 July 2019 Purchased a delivery truck from Mangrove Mountain Motors for $66,000 (GST Inclusive) plus cash plus stamp duty of $620 (GST exempt), and registration and third-party insurance of $840 (GST exempt). 1 June 2020 Made minor repairs to the truck for cash at a cost of $462 (GST Inclusive). Recorded annual depreciation. 30 June 2020 2020-2021: 1 July 2020 Purchased a delivery van from Northern Motors for cash, $49,500 (GST Inclusive). This van was a used vehicle which was expected to last 4 years from the date of purchase. Fitted four new tyres to the van at a cash cost of $1,452 (GST Inclusive). Recorded depreciation on both truck and van. 30 June 2021 2021-2022: 1 July 2021 Paid $4,070 (GST Inclusive) for an overhaul of the motor of the delivery truck. This expenditure is expected to extend the useful life by 1 year. The parts replaced in the truck were considered to have a carrying amount of $2,000. Installed a two-way radio in the delivery van at a cost of $1,760 (GST Inclusive) to improve efficiency. This expenditure will not increase the useful life. 30 June 2022 Recorded depreciation on both truck and van. Required Prepare the general journal entries to record the transactions of Branson Ltd as they relate to both vehicles from 1 July 2019 to 30 June 2022. Table 1 - Account names: Repair Expense Delivery Vehicles GST Receivable Accumulated Depreciation - Delivery Vehicles Depreciation Expense Cash at Bank Expense of Parts Replaced Date Particulars 1 July 2019 (To record acquisition of delivery truck) (To record minor repair work) 1 June 2020 Debit ($) Credit ($) 30 June 2020 1 July 2020 1 July 2020 30 June 2021 (To record annual depreciation expense) (To record acquisition of delivery van) (To record installation of new tyres on van) (To record total depreciation expense on both delivery vehicles) 1 July 2021 1 July 2021 1 July 2021 (To write off accumulated depreciation on delivery truck due to overhaul of motor) (To record overhaul costs on delivery truck) (To record write-off of parts replaced) (To record acquisition of two-way radio for the van) Note: while the question information states the two way radio was purchased to increase efficiency, this treatment in this solution is to record and depreciate as a separate asset from the delivery van, because the radio has a longer useful life and can be removed and installed in another vehicle at the end of the van's useful life. 30 June Depreciation Expense - Delivery Vehicles 2022 Accumulated Depreciation - Delivery Vehicles (To record total depreciation expense on both delivery vehicles) (Truck = 9,977, Van = 10,330) ROUNDED Depreciation Expense - communication equipment Accumulated Depreciation - communication equipment (To record depreciation expense on communication equipment) (radio 1,600/6=266.67 or 267) Workings - depreciation on delivery truck Delivery truck: Carrying amount prior to improvement ($61 460 - $28 230) Add: Cost of improvement (major overhaul) Less: Cost of parts replaced Less: Residual value Revised depreciable amount Remaining useful life Revised annual depreciation - rounded 267 $33,230 3,700 (2,000) (5,000) $29,930 3 years $9,976.66 or 9,977 267
Branson Ltd owns two delivery vehicles and uses the straight-line method of depreciation. The following events and transactions occurred during the first 3 financial years:2019-2020:1 July 2019Purchased a delivery truck from Mangrove Mountain Motors for $66,000 (GST Inclusive) plus cash plus stamp duty of $620 (GST exempt), and registration and third-party insurance of $840 (GST exempt).1 June 2020Made minor repairs to the truck for cash at a cost of $462 (GST Inclusive).Recorded annual depreciation.
Branson Ltd owns two delivery vehicles and uses the straight-line method of depreciation. The following events and transactions occurred during the first 3 financial years:2019-2020:1 July 2019Purchased a delivery truck from Mangrove Mountain Motors for $66,000 (GST Inclusive) plus cash plus stamp duty of $620 (GST exempt), and registration and third-party insurance of $840 (GST exempt).1 June 2020Made minor repairs to the truck for cash at a cost of $462 (GST Inclusive).Recorded annual depreciation.30 June 20202020-2021:1 July 2020Purchased a delivery van from Northern Motors for cash, $49,500 (GST Inclusive).This van was a used vehicle which was expected to last 4 years from the date of purchase.Fitted four new tyres to the van at a cash cost of $1,452 (GST Inclusive).Recorded depreciation on both truck and van.30 June 20212021-2022:1 July 2021Paid $4,070 (GST Inclusive) for an overhaul of the motor of the delivery truck.This expenditure is expected to extend the useful life by 1 year.The parts replaced in the truck were considered to have a carrying amount of $2,000.Installed a two-way radio in the delivery van at a cost of $1,760 (GST Inclusive) to improve efficiency.This expenditure will not increase the useful life.Recorded depreciation on both truck and van. Required Prepare the general journal entries to record the transactions of Branson Ltd as they relate to both vehicles from 1 July 2019 to 30 June 2022. Table 1 - Account names: Repair Expense Delivery Vehicles GST Receivable Accumulated Depreciation - Delivery Vehicles Depreciation Expense Cash at Bank Expense of Parts Replaced Date Particulars 1 July 2019 (To record acquisition of delivery truck) (To record minor repair work) 1 June 2020 Debit ($) Credit ($) Cash at Bank 66,000 GST Receivable 6,000 Delivery Vehicles 72,000 Repair Expense 462 GST Receivable 42 Accumulated Depreciation - Delivery Vehicles 1,979.50 Depreciation Expense 1,979.50 30 June 2020 Depreciation Expense 4,947 Accumulated Depreciation - Delivery Vehicles 4,947 1 July 2020 Cash at Bank 49,500 Delivery Vehicles 49,500 Expense of Parts Replaced 2,000 Accumulated Depreciation - Delivery Vehicles 2,000 30 June 2021 Depreciation Expense 9,877 Accumulated Depreciation - Delivery Vehicles 9,877 Depreciation Expense - communication equipment 267 Accumulated Depreciation - communication equipment 267 1 July 2021 Accumulated Depreciation - Delivery Vehicles 1,979.50 Depreciation Expense - Delivery Vehicles 9,977 Accumulated Depreciation - communication equipment 267 Accumulated Depreciation - Delivery Vehicles 9,977 Accumulated Depreciation - communication equipment 267 Cash at Bank 4,070 Expense of Parts Replaced 2,000 Delivery Vehicles 6,070 Depreciation Expense - communication equipment 267 Accumulated Depreciation - communication equipment 267 30 June 2022 Depreciation Expense 10,330 Accumulated Depreciation - Delivery Vehicles 10,330 Workings - depreciation on delivery truckDelivery truck:Carrying amount prior to improvement ($61 460 - $28 230) = $33,230Add: Cost of improvement (major overhaul) = $4,070Less: Cost of parts replaced = $2,000Less: Residual value = $5,000Revised depreciable amount = $30,300Remaining useful life = 3 yearsRevised annual depreciation - rounded 267 = $9,977. The above table shows the general journal entries to record the transactions of Branson Ltd as they relate to both vehicles from 1 July 2019 to 30 June 2022.
To know more about vehicles visit;
https://brainly.com/question/32347244
#SPJ11
Consider two firms engaging in sequential Stackelberg competition.
Suppose firm 1 decides its quantity x1 first and firms 2 follows after observing x1. The demand function of the market is x(p) = 100 - 0.1p and the cost function for both firms is c(x) = FC + 5x2
a. Suppose suppose FC is not zero. What is the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market?
Show your workings
The discriminant is positive, the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market is zero, i.e., FC = 0.
In sequential Stackelberg competition, there are two firms where one firm is the leader (firm 1) and the other firm is the follower (firm 2). In this situation, firm 1 decides its quantity x1 first and firms 2 follows after observing x1.
To calculate the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market, we need to follow these steps:
Step 1: Find out the profit function of firm 1π1 = (p(x1+x2) - c(x1))x1
Here, p(x1+x2) is the total demand of the market, which is 100 - 0.1 (x1 + x2)π1 = (100 - 0.1(x1 + x2))x1 - (FC + 5x12)π1
= 100x1 - 0.1x1² - x1x2 - FC - 5x12
Step 2: Find out the profit function of firm 2π2 = (p(x1+x2) - c(x2))x2π2
= (100 - 0.1(x1 + x2))x2 - (FC + 5x22)π2
= 100x2 - 0.1x1x2 - x2² - FC - 5x22
Step 3: Find out the best response function of firm 2
Taking the derivative of π2 with respect to x2, we get:
∂π2/∂x2 = 100 - 0.1x1 - 2x2 - 10x2∂π2/∂x2 = 100 - 0.1x1 - 12x2
Now, we set ∂π2/∂x2 = 0, to find the best response function of firm 2.0 = 100 - 0.1x1 - 12x20
= 100 - 0.1x1 - 12x2x2
= (100 - 0.1x1)/12
Step 4: Find out the profit of firm 1 when firm 2 follows the best response function
When firm 2 follows the best response function, x2 = (100 - 0.1x1)/12
Putting this value in the profit function of firm 1π1 = 100x1 - 0.1x1² - x1 [(100 - 0.1x1)/12] - FC - 5x12π1 = -0.0083x1² + 4.167x1 - FC
Step 5: Find out the critical value of FC at which firm 1 is indifferent between entering and not entering into the market
t the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market, firm 1 should be indifferent between entering and not entering the market.
Therefore, we need to set π1 = 0 and solve for FC.0 = -0.0083x1² + 4.167x1 - FCFC = -0.0083x1² + 4.167x1
Step 6: Find out the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market
To find the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market, we need to find the value of FC when the discriminant of the above equation is zero.
The discriminant is given by: b² - 4ac4.167² - 4(-0.0083)(0) = 17.36
Since the discriminant is positive, the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market is zero, i.e., FC = 0.
Know more about sequential Stackelberg competition here:
https://brainly.com/question/30034100
#SPJ11
Chapter 1: Explain how personal selling can help solve the problem of information overload. Chapter 2: Why is peddling or ""pushing products"" inconsistent with the marketing concept? Chapter 3: Why must a salesperson’s ethical sense extend beyond the legal definition of what is right and wrong? Can you think of at least one example in the last few years when sales people used unethical techniques?
Chapter 1:Personal selling is an effective method of communication with customers that can help solve the problem of information overload. Customers can get overwhelmed with the information and advertisements that are thrown at them daily.
Personal selling allows salespeople to communicate directly with customers, learn their specific needs and interests, and present information that is relevant to them. This can be especially useful in situations where customers need more detailed information or explanations that cannot be conveyed through other marketing channels, such as television ads or social media posts.
Chapter 2: Peddling or "pushing products" is inconsistent with the marketing concept because it focuses on sales volume and product features rather than customer needs and wants. The marketing concept is a customer-focused approach to business that aims to create products and services that meet the needs of customers. Salespeople who peddle products are more interested in making a sale than in understanding the customer's needs and providing them with the best possible solution.
Chapter 3: A salesperson's ethical sense must extend beyond the legal definition of what is right and wrong because the law only sets minimum standards of behavior. Salespeople have a responsibility to act ethically and in the best interest of their customers, even if it means going beyond what is legally required. Unethical sales techniques can damage a salesperson's reputation, harm their company's reputation, and ultimately lead to lost sales and customers. One example of salespeople using unethical techniques in recent years is the Wells Fargo scandal, where employees were opening fake accounts for customers without their knowledge or consent in order to meet sales targets. This was clearly unethical and illegal, and resulted in significant financial and reputational damage for the company.
To know more about Personal Selling visit-
brainly.com/question/30885359
#SPJ11
Use the following bond quotes to answer this question: Issuer Name Coupon Maturity High Low Last Change Alpha Industries 5.875 Apr 2010 99.823 98.667 99.402 +.008 Beta Movers 7.120 May 2036 103.407 100.013 103.354 +.010 What is the current yield of a $1,000 face value Alpha Industrial bond? 5.875% 8% -5.91% O 10% 7.12% 2 pts
To calculate the current yield of a bond, you divide the annual interest payment by the bond's current market price and express it as a percentage.
In this case, the Alpha Industries bond has a coupon rate of 5.875% and a face value of $1,000. The last reported market price of the bond is 99.402.
To determine the annual interest payment, we multiply the face value by the coupon rate: $1,000 * 5.875% = $58.75.
To calculate the current yield, we divide the annual interest payment by the market price and multiply by 100 to express it as a percentage: ($58.75 / 99.402) * 100 = 5.915%.
Therefore, the current yield of the Alpha Industries bond is approximately 5.915%, which is closest to 5.875%.
It's important to note that the current yield may slightly differ from the coupon rate due to fluctuations in the bond's market price.
To learn more about annual interest payment visit:
brainly.com/question/31790302
#SPJ11
What are the challenges facing Harley-Davidson as it enters the
21st century? Is Harley losing its magic? What should Harley do to
stay relevant?
Harley-Davidson is one of the most iconic motorcycle brands globally, and it has been around for more than a century. However, in recent years, the company has been facing several challenges that threaten to erode its market share and brand power.
Some of the challenges Harley-Davidson faces as it enters the 21st century are:
Demographic Shifts: As the Baby Boomers age, they are no longer the primary target market for Harley-Davidson. The company is struggling to attract younger riders, and women riders, which are the fastest-growing segment of the motorcycle market.Competition: There is increased competition in the motorcycle market from other manufacturers like Honda, Yamaha, and Suzuki. They are offering lower-priced models and better technology.Economic Uncertainty: The global economy has been unstable, which has negatively affected the purchasing power of Harley-Davidson's customers.Environmental Regulations: Governments worldwide are enacting stricter regulations on emissions and noise, which could affect the company's ability to sell motorcycles.Harley-Davidson is not losing its magic, but the company needs to innovate to remain relevant.Some of the things that Harley-Davidson could do to stay relevant are:
Expand its product line: The company should consider offering smaller, more affordable bikes that cater to younger riders.Invest in electric bikes: The electric motorcycle market is growing, and Harley-Davidson should develop electric motorcycles to meet the changing market needs.Improve marketing: Harley-Davidson has a strong brand image, but the company needs to market itself to new demographics effectively.Increase international sales: Harley-Davidson has a strong presence in the US, but the company needs to expand into new international markets to increase sales.To know more about motorcycle visit:
https://brainly.com/question/29333261
#SPJ11
If we look at labour market statistics released by Statistics Canada prior to the pandemic (to remove the impact of Covid on markets) the labour market was doing well. For example, according to Statistics Canada, the level of employment increased by 0.9% in 2018 and the unemployment rate reached 5.6% by the end of 2018 which was the lowest since January 1976. However, the growth in wages for Canadian workers, while remaining positive, was slowing down.
a) With the aid of a labour market diagram, explain in words how these two observations can happen at the same time. (6 points)
b) One of the several explanations provided to a low wage growth is the changing nature of jobs. In the past decade, we observed an increase in gig, temporary, contract positions. How does this change in the nature of jobs lead to a slowdown in wage growth? Explain in words only. (4 points)
Prior to the pandemic, the Canadian labor market showed positive signs with an increase in employment and a decline in the unemployment rate. However, wage growth was slowing down. This can be explained using a labor market diagram, where the increase in employment represents a shift in the demand for labor, while the slowing wage growth can be attributed to factors such as changes in the nature of jobs, including the rise of gig, temporary, and contract positions.
a) In a labor market diagram, the increase in employment can be depicted as a rightward shift of the labor demand curve, resulting in higher employment levels and a lower unemployment rate. This shift can be driven by factors such as economic growth, increased demand for goods and services, or government policies stimulating job creation.
On the other hand, the slowdown in wage growth can be explained by a combination of factors. Despite the increase in employment, the supply of labor may have also increased, offsetting the upward pressure on wages. Additionally, other factors such as changes in labor market dynamics, productivity levels, or bargaining power of workers and unions can influence wage growth.
b) The changing nature of jobs, including the rise of gig, temporary, and contract positions, can contribute to a slowdown in wage growth. These types of jobs often come with lower job security, fewer benefits, and limited wage negotiation power for workers.
The increase in such positions can create a more flexible labor market where employers have a larger pool of available workers, reducing the bargaining power of individual workers.
As a result, employers may be able to offer lower wages or limited wage growth, knowing that workers in these positions may have fewer alternatives or bargaining leverage. The presence of more precarious employment options can constrain wage growth for the overall labor market, leading to the observed slowdown in wages despite improvements in employment levels.
Learn more about leverage here :
https://brainly.com/question/30469369
#SPJ11
Briefly explain the meant when we say that an ideal performance management system must be practical.
An ideal performance management system must be practical. This means that it must be workable, effective, realistic, and applicable to the organization and its employees. It should be able to align with the organization's goals, vision, and values. Also, it should take into consideration the company's unique culture and structure.
To be practical, the performance management system must be easy to understand, use, and maintain. It should not be too complicated that it becomes a burden to the employees or the management. It should have clear and concise objectives, expectations, and standards that are easily measurable and achievable. It should also be flexible enough to accommodate changes and adaptations as needed.It should be able to provide meaningful and relevant feedback to the employees that can help them improve their performance.
It should have regular and timely communication channels that allow employees to provide feedback, ask questions, and express concerns regarding their performance. It should also provide a platform for employees to set and achieve their goals and career development plans.In summary, a practical performance management system should be tailored to meet the specific needs of the organization and its employees. It should be simple, flexible, and effective, providing regular and constructive feedback and support to employees to achieve their goals and improve their performance.
To know more about performance management visit:
https://brainly.com/question/32587812
#SPJ11
1. what was the biggest item causing comprehensive in different than net income ?
2. what was the HCA's basic earnings per share (EPS) in 2020 that compare to 2019 ?
3. In 2020 , what was HCA's equity in earnings of affiliaties (in million)?
4. what method does HCA use to account for inventory ?
Comprehensive income captures unrealized gains or losses, HCA's basic EPS increased in 2020, equity in earnings of affiliates was $62 million, and HCA applies the weighted-average cost method for inventory valuation.
1. Comprehensive income refers to a company's financial performance, including gains and losses not reported in net income. The biggest item causing the difference is unrealized gains or losses on available-for-sale securities.
2. HCA's basic EPS in 2020 was $11.97, showing a 28.3% increase from $9.33 in 2019.
3. HCA reported equity in earnings of affiliates as $62 million in 2020, representing its share of earnings from investments in other companies.
4. HCA uses the weighted-average cost method for inventory accounting. This method calculates the average cost of all goods available for sale by considering the total cost and units sold during a specific period For inventory accounting, HCA utilizes the weighted-average cost method, which calculates the average cost of goods available for sale based on total cost and units sold.
Learn more about Comprehensive income here :-
https://brainly.com/question/14814430
#SPJ11
Calculate the monthly payment for a $2,500 loan at 9% annual interest for two years.
Use the formula, M = Pm(1 + m)^na/(1 + m)^na - 1 as needed.
A.
$85.15
B.
$105.40
C.
$114.21
D.
$125.72
Option C. $114.21 .Monthly payment of a loan is the amount paid each month to a financial institution for the term of the loan.
Monthly payment can be calculated using the formula `M = Pm(1 + m)^na/(1 + m)^na - 1`.Where,P = 2500 (the loan amount)I = 9% (annual interest)N = 2 years = 24 monthsNow, we need to calculate monthly interest (m). m is the annual interest rate divided by the number of months in a year.m = I/12 = 9/12 = 0.75%Using the above formula:Now, we need to calculate the value of (1 + m)^na = (1 + 0.75%)^(24) = 1.209985.1.209985 - 1 = 0.209985.
Now, we can calculate monthly payments using the formula
M = Pm(1 + m)^na/(1 + m)^na - 1 as:M = 2500 × 0.007875 × 1.209985 / 0.209985 = $114.21.
So, the correct option is C. $114.21.
Monthly payment of a loan is the amount paid each month to a financial institution for the term of the loan. The payments are calculated using the principle, interest rate, and number of payments. The interest is the amount charged by a lender for lending money, expressed as an annual percentage of the loan balance. The formula used to calculate the monthly payment for a loan is M = Pm(1 + m)^na/(1 + m)^na - 1.
learn more about interest Refer: https://brainly.com/question/31809089
#SPJ11
Which of the following statements is false? Indirect finance is more important than direct finance for businesses. O The stock market is not the most important source of external financing for business. Financial intermediaries are the most important source of external funds for business. None of the above
Answer:
The statement "Indirect finance is more important than direct finance for businesses" is false.
While both indirect finance through financial intermediaries and direct finance through securities markets play important roles in providing external financing for businesses, it is not accurate to claim that indirect finance is more important. Direct finance, including the stock market, can be a crucial source of external funds for businesses, allowing them to raise capital by issuing stocks or bonds directly to investors. Indirect finance involves financial intermediaries such as banks and mutual funds channeling funds from savers to borrowers. While indirect finance plays a significant role in the economy, it does not necessarily overshadow the importance of direct finance for businesses. Additionally, direct finance offers companies greater control over the terms and conditions of the financing. Financial intermediaries also play a significant role in providing funds, but it would be incorrect to consider them as the sole or most important source of external financing.
Learn more about indirect and direct finance in business financing here:
https://brainly.com/question/31541024
#SPJ11
Possible Match the terms below to their definitions. Money Supply (M1) Money Supply (M2) Federal Funds Rate Discount Rate Phillips Curve Marginal Tax Rate Crowding Out Net Investment Crowding In Absolute Advantage [Choose] [Choose Gross investment less depreciation. An increase in private sector borrowing (and spending) caused by decreased government borrowing A reduction in private sector borrowing (and spending) caused by increased government borrowing M1 plus balances in most savings accounts and money market funds. The rate of return on a bond; the annual interest payment divided by the bond's price. A historical (inverse) relationship between the rate of unemployment and the rate of inflation; commonly expresses a trade-off between the two Total investment from all sectors of the economy. The average tax rate paid on all income earned. The ability of a country to produce a specific good with fewer resources (per unit of output) than other countries. The interest rate for interbank reserve loans. The ability of a country to produce a specific good at a lower opportunity cost than its trading partners. Currency held by the public, plus balances in transactions accounts. The rate of interest the Federal Reserve charges for lending reserves to private banks. The tax rate imposed on the last (marginal) dollar of income.
Following are the terms, matched with their definitions.
Money Supply (M1) refers to the currency held by the public, such as cash, and balances in transactions accounts like checking accounts.
Money Supply (M2) includes M1 and extends to include balances in most savings accounts and money market funds, which are less liquid than M1 components.
The Federal Funds Rate is the interest rate at which banks lend reserves to each other overnight.
The Discount Rate is the interest rate set by the Federal Reserve for lending reserves to private banks.
The Phillips Curve describes a historical inverse relationship between the rate of unemployment and the rate of inflation, suggesting a trade-off between the two.
Marginal Tax Rate represents the tax rate applied to the last (marginal) dollar of income earned.
Crowding Out occurs when increased government borrowing reduces private sector borrowing and spending.
Net Investment is calculated by subtracting depreciation from gross investment, providing the measure of investment that adds to the economy's capital stock.
Crowding In refers to increased private sector borrowing and spending resulting from decreased government borrowing.
Absolute Advantage refers to a country's ability to produce a specific good using fewer resources per unit of output compared to other countries.
Learn more about Money Supply (M1) here:
https://brainly.com/question/31928519
#SPJ11
Many colleges and universities are witnessing a shift in demographics due to
women having fewer children today. The birth rate fell from an average of 2.1
births per woman in 2007 to 1.7 births in 2018. The declining birth rate will
reduce the college-age population by as much as 15% between 2025 and 2029.
How will the declining birth rate affect university operations? Answer the
questions below:
a. Do higher-education institutions have large or small fixed costs? What are
the variable costs for colleges and universities?
b. Given your answer in part a, how would you describe short-run average total cost?
c. If universities are operating where short-run average total costs are minimized,
what will happen to the average cost per student of higher education if universities
experience a decline in enrollments?
The declining birth rate refers to a decrease in the average number of children born per woman within a given population. This trend has been observed in many countries worldwide, particularly in developed nations, and has various implications for society, including the field of higher education.
a. Higher-education institutions generally have large fixed costs. These costs include infrastructure, buildings, maintenance, administrative staff, faculty salaries, and other ongoing expenses that are not directly dependent on the number of students enrolled. Variable costs for colleges and universities typically include instructional materials, student support services, utilities, and other costs that can vary based on the number of students.
b. In the short run, average total cost (ATC) can be described as relatively high due to the large fixed costs that higher-education institutions have. Fixed costs are spread over a smaller number of students when enrollments decline, resulting in a higher average cost per student.
c. If universities experience a decline in enrollments and are operating where short-run average total costs are minimized, the average cost per student of higher education would likely increase. This is because the fixed costs remain relatively constant, but with fewer students to share the costs, the burden of covering those costs falls on a smaller number of students. As a result, the average cost per student would rise, potentially making education more expensive for the remaining students. Universities may need to find ways to manage their costs and explore alternative sources of revenue to mitigate the impact of declining enrollments on average costs per student.
Here are some additional points related to the declining birth rate:
1. Decreased college-age population: With fewer children being born, there will be a decline in the number of individuals reaching college age. This reduction in the pool of potential students can have a significant impact on the overall enrollment numbers at colleges and universities.
2. Increased competition among institutions: As the number of college-aged individuals decreases, colleges and universities may face greater competition for a smaller pool of prospective students. Institutions may need to adapt their recruitment strategies to attract and retain students.
3. Financial implications: The decline in enrollments can have financial implications for higher-education institutions. With fewer students paying tuition fees, colleges and universities may experience reduced revenue, which could impact their budgets, operations, and ability to offer a wide range of programs and services.
4. Shifts in program offerings: In response to changing demographics, institutions may need to adjust their program offerings to align with the evolving needs and interests of the smaller college-age population. This could involve focusing on niche programs or areas with higher demand or modifying existing programs to attract a broader range of students.
5. Resource allocation: With a reduced number of students, colleges and universities may need to reevaluate resource allocation. This could include optimizing facility usage, adjusting faculty-student ratios, and finding ways to streamline operations to accommodate the smaller student population while maintaining educational quality.
6. Innovation and diversification: The declining birth rate can also serve as a catalyst for innovation and diversification within higher education. Institutions may explore alternative educational models, such as online learning, flexible scheduling, or partnerships with industry, to attract a wider range of students and adapt to changing demographic trends.
To know more about Declining Birth Rate Impact: Costs visit:
https://brainly.com/question/14192397
#SPJ11
please answer questions b c d Problem Consider the following open economy (Home economy). The real exchange rate is fixed and equal to one. Saving, investment, government spending, taxes, imports and exports are given by: S = -80+ 0.18Y (1) I = I G = G T = To+t₁Y Q = 9₁Y X = X₁Y* where To is the level of autonomous taxes, q₁ and X₁ are, respectively the marginal propensity to import, and export reaction to the foreign country's income. An asterisk is used to designate variables related to the foreign economy. |||| |||| 5. Assume Foreign economy has the same equations as Home economy. Moreover, use the following values for the remaining autonomous variables: I = 500, G = 500. (a) Solve for the equilibrium values of income, Y, and Y* in both economies. I= 500, G = 500. Q-0.1 Y, x₁ = 0.1 Y*, t₁ = 0.1, To = 100 For home economy S+T-G=I+X-Q -80+0.18Y+100+0.1Y-500-500+0.1Y*-0.1Y 0.28Y-420+0.1Y=500+0.1Y* 0.38Y-920+0.1Y* Y (920+0.1Y*)/0.38 Y=2421.052+0.263Y* since same equations hold for foreign economy as well 0.38Y-920+0.1Y 0.38Y-920+0.1(2421.052+0.263Y*) Y-3285.567 Y-920+0.263*3285.567 =1784.104 (b) Find the tax multiplier for each economy now? (c) Why is it different from the multiplier found above using the given values for the autonomous variables? (d) Find the equilibrium values for government and trade deficits in each economy.
(a) Equilibrium values of income, Y, and Y* in both economies are given by:Y = 2421.052 + 0.263Y* and Y* = 1784.104 - 0.263Y.
(b) The tax multiplier for each economy is calculated using the formula;1 / (1 - MPC x tax rate)The marginal propensity to consume (MPC) for the economy is 1 - MPC = 0.18The tax rate is 0.1Therefore, the tax multiplier for each economy is; 1 / (1 - MPC x tax rate) = 1 / (1 - 0.18 x 0.1) = 1.111
(c) The multiplier found above using the given values for the autonomous variables is different from the tax multiplier found in part (b) because the multiplier in part (b) takes into account the change in consumption due to taxes only, while the multiplier in part (c) takes into account the change in all autonomous variables. Since the tax multiplier is less than the multiplier found in part (a), this indicates that the change in all other variables combined has a net negative effect on output.
(d) Equilibrium values for government and trade deficits in each economy are given by:Home economy:G - T = -60.62X + 580.62Foreign economy:G* - T* = -60.62X* + 580.62Therefore, substituting the values given above we get:Home economy:500 - 0.1(2421.052) - 580.62(0.1) = -60.62(-0.1)(1784.104) + 580.62= 68.77Foreign economy:500 - 0.1(1784.104) - 580.62(0.1) = -60.62(-0.1)(2421.052) + 580.62= -291.24
The equilibrium value for government deficit in the home economy is 68.77 and the equilibrium value for government deficit in the foreign economy is -291.24.The equilibrium value for trade deficit in the home economy is -60.62(-0.1)(1784.104) + 580.62 = 68.77 and the equilibrium value for trade deficit in the foreign economy is -60.62(-0.1)(2421.052) + 580.62 = -291.24.
To learn more about tax :
https://brainly.com/question/2364368
#SPJ11
For ratio calculations 2 points each except were noted Higginbotham, INC Balance Sheet ($000) Assets Liabilities and Stockholder's Equity Cash $ 1,500 Accounts Payable $12,500 Marketable Securities 2,500 Notes Payable 12,500 Accounts Receivable 15,000 Tot. Current Liab. $25,000 Inventory 33,000 Long-term Debt 22,000 Tot. Curr. Assets $52,000 Total Liabilities $47,000 Fixed Assets (net) Total Assets 35,000 $87,000 5,000 Common Stock (par) Paid-in Capital 18,000 Retained Earnings 17,000 $40,000 $87,000 Sales (all on credit) Cost of Good Sold Gross Margin Operating Expenses Earnings before Interest and Taxes Interest Expense Earnings before Taxes Total Stock Equity Tot Liab. And Stockholder Equity Higginbotham, INC Income Statement ($000) $130,000 103.000 27,000 16,000 11,000 3.000 8,000 Total Stock Equity Tot Liab. And Stockholder Equity $130,000 103,000 27,000 16,000 11,000 3,000 8,000 3,000 $ 5,000 Higginbotham, INC Income Statement ($000) Sales (all on credit) Cost of Good Sold Gross Margin Operating Expenses Earnings before Interest and Taxes Interest Expense Earnings before Taxes Taxes Earnings After Taxes Other Information: Stock Price Book Value per Share Number of Shares $9.50 $8.00 5,000,000 $40,000 $87,000 Use the Balance Sheet and Income Statement of Higginbotham, INC to answer the following: 1. Calculate the following liquidity ratios. a. Current Ratio b. Quick Ratio 2. Calculate the following Activity Ratios. a. Average Collection Period b. Inventory Turnover c. Fixed Asset Turnover d. Total Asset Turnover 3. Calculate the following financial leverage ratios. a. Debt ratio b. Debt-to-equity ratio c. Times Interest earned ratio 4. Calculate the following profitability ratios. a. Gross Profit Margin b. Net Profit Margin c. Return on investment d. Return on Stockholder's equity 5. Calculate the following market-based ratios a Price-to-earnings ratio b. Market price to book ratio 6. Express the return on stockholder's equity ratio as a function of the net profit margin, total asset turnover, and equity multiplier.
1.
Liquidity Ratios Current Ratio = Total Current Assets / Total Current Liabilities= $52,000 / $25,000 = 2.08
Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Total Current Liabilities= ($1,500 + $2,500 + $15,000) / $25,000= $19,000 / $25,000= 0.76 approximately
2.
Activity Ratios
a. Average Collection Period = Accounts Receivable / Average Daily Credit
Sales Accounts Receivable = $15,000
Average Daily Credit Sales = Sales on credit / Number of days in a year
Sales on Credit = $130,000
Average daily credit sales = $130,000 / 365 days = $356.16 approximately.
Average Collection Period = Accounts Receivable / Average Daily Credit Sales= $15,000 / $356.16= 42.1 days approximately.
b. Inventory Turnover = Cost of Goods Sold / Average Inventory
Cost of Goods Sold = $103,000
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Average Inventory = ($33,000 + $35,000) / 2 = $34,000
Inventory Turnover = Cost of Goods Sold / Average Inventory= $103,000 / $34,000= 3.03 approximately.
c. Fixed Asset Turnover = Sales / Net Fixed Assets= $130,000 / $35,000= 3.71 approximately.
d. Total Asset Turnover = Sales / Total Assets= $130,000 / $87,000= 1.49 approximately.
3. Financial Leverage Ratios
a. Debt Ratio = Total Liabilities / Total Assets= $47,000 / $87,000= 0.54 approximately.
b. Debt-to-Equity Ratio = Total Liabilities / Total Stockholder's Equity= $47,000 / $40,000= 1.18 approximately.
c. Times Interest Earned Ratio = Earnings before Interest and Taxes / Interest Expense= $11,000 / $3,000= 3.67 approximately.
4. Profitability Ratios
a. Gross Profit Margin = Gross Profit / Sales = $27,000 / $130,000= 0.21 or 21% approximately.
b. Net Profit Margin = Net Income / Sales = $8,000 / $130,000= 0.06 or 6% approximately.
c. Return on Investment = Net Income / Total Assets= $8,000 / $87,000= 0.09 or 9% approximately.
d. Return on Stockholder's Equity = Net Income / Total Stockholder's Equity= $8,000 / $40,000= 0.20 or 20% approximately.
5. Market-Based Ratios
a. Price-to-earnings Ratio = Market Price per Share / Earnings per Share (EPS)= $9.50 / $0.01= 950 approximately.
b. Market Price to Book Ratio = Market Price per Share / Book Value per Share= $9.50 / $8.00= 1.19 approximately.
6. Return on Stockholder's Equity Ratio as a Function of Net Profit Margin, Total Asset Turnover, and Equity Multiplier
ROE = Net Profit Margin * Total Asset Turnover * Equity Multiplier
ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Total Stockholder's Equity= Net Income / Total Stockholder's Equity
Therefore, ROE = Return on Stockholder's Equity= 0.20 or 20% approximately.
To know more about Liquidity Ratios visit:
brainly.com/question/30992156
#SPJ11
A couple with secure jobs rent a house for $800 per week, and have been offered the chance to buy it for $1.4 million. They have $200,000 deposit, and their bank has agreed to lend the balance of the purchase price at 4.2 percent PÅ interest with repayment of principal and interest over 25 years in equal monthly payments. B3. You are considering investing in one listed company to add to your portfolio, and have narrowed the choice down to three firms whose details are shown below: Firm A Firm B Firm C Latest dividend per share - $ 1.60 0.55 2.00 Expected growth in dividend % PA 3.00% 2.50% 6.00% Risk adjusted discount rate % PA 12.00% 15.00% 11.00% Current share price - $ 16.10 5.10 35.00 Use the Gordon dividend discount model to value the firms. Which would you select for investment; explain your reasons.
It is recommended to buy Firm A and Firm C, as their current market price per share is undervalued.
The details of the given problem are: A couple with secure jobs rent a house for $800 per week, and have been offered the chance to buy it for $1.4 million.
They have a $200,000 deposit, and their bank has agreed to lend the balance of the purchase price at 4.2 percent per annum interest with repayment of principal and interest over 25 years in equal monthly payments.
Using the Gordon dividend discount model, to value the firms is given below:
Firm A Firm B Firm C Latest dividend per share (D1) $ 1.60 $ 0.55 $ 2.00
Expected growth in dividend % PA (g) 3.00% 2.50% 6.00%
Risk-adjusted discount rate % PA (r) 12.00% 15.00% 11.00%
Current share price (P0) $ 16.10 $ 5.10 $ 35.00
The Gordon dividend discount model is given by:Po = (D1)/(r - g)
Where, Po = current market price per share
D1 = latest dividend per share
g = expected growth rate in dividend % PA
r = risk-adjusted discount rate % PA
(a) Firm A: The market price of the share can be determined by the given formula as follows:
Po = (D1)/(r - g) = ($1.6)/(12% - 3%) = $16
Thus, the current share price is undervalued at $16.10, so Firm A's share price should be purchased.
(b) Firm B: The market price of the share can be determined by the given formula as follows:
Po = (D1)/(r - g) = ($0.55)/(15% - 2.5%) = $5.5
Thus, the current share price is overvalued at $5.10, so Firm B's share price should not be purchased.
(c) Firm C: The market price of the share can be determined by the given formula as follows:
Po = (D1)/(r - g) = ($2)/(11% - 6%) = $40
Thus, the current share price is undervalued at $35.00, so Firm C's share price should be purchased.
Know more about the market price
https://brainly.com/question/30165908
#SPJ11
Assignment Details (Summer 2022) FIN 215 (E01W) - Financial Management Submission & Rubric Description Instruction Please answer this question below: What is the IRR for a project that has a net investment of $14,600 and a single net cash flow of $25,750 in 5 years? Submission Please follow the requirements when you submit your project: Please answer the question above and save your answer as a word file. • Upload your work here for your teacher's view. Grading This assignment is worth 25 points toward your final grade. ◄ Previous Dashboard Submit Assignment 888 Calendar 10 To Do Notifications Next Inbox
The internal rate of return (IRR) is the rate at which the present value of future cash flows equals the net initial investment of the project. The IRR of the project with a net investment of $14,600 and a single net cash flow of $25,750 in 5 years.
It can be calculated using the following formula:
PV = FV / (1 + i)n
Where, PV = present value of future cash flows
FV = future value of cash flows
i = internal rate of return
n = number of years of the investment
Now, the given cash flow occurs in 5 years, so n = 5.
Substituting the given values in the formula:
14600 = 25750 / (1 + i)5(1 + i)5 = 25750 / 14600(1 + i)5 = 1.7637
Taking the fifth root on both sides, we get:
1 + i = (1.7637)1/5 1 + i = 1.1227
i = 1.1227 - 1
i = 0.1227 or 12.27%
Therefore, the internal rate of return for the given project is 12.27%.
The internal rate of return (IRR) is one of the important financial metrics used in capital budgeting and project management. It is the rate at which the present value of future cash flows equals the net initial investment of the project. The IRR is a relative measure of the project's profitability and is expressed as a percentage per period. The higher the IRR, the more profitable the project.The IRR calculation is based on the net cash flows of the project over its entire life cycle. It considers the timing and size of cash flows and discounts them to their present value using a discount rate that makes the present value of cash inflows equal to the present value of cash outflows.The IRR is used to evaluate the feasibility of a project and to compare different investment opportunities.
If the IRR is greater than the required rate of return or the cost of capital, then the project is considered feasible and acceptable. If the IRR is less than the required rate of return or the cost of capital, then the project is rejected.In conclusion, the IRR for a project that has a net investment of $14,600 and a single net cash flow of $25,750 in 5 years is 12.27%. The IRR is an important metric used to evaluate the feasibility and profitability of a project and to make investment decisions.
To know more about IRR visit:
https://brainly.com/question/31393609
#SPJ11
Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit 0.60 0.20 Rims Posts Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $15 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Exercise 4-8 (Algo) Part 1 Annual Production 22,000 units 80,000 units Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Activity Rate Estimated Overhead Cost $ 27,200 $ 130,400 $ 1,056,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) per setup per MH per DLH Estimated Activity Rins Posts 280 0 120 5,000 13,200 16,000 Total 400 5,000 29,200 rt 2 of 2 4 ints eBook Print References Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Houre per unit 0.60 0.20 Rims Posta Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $15 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Annual Production 22,000 units 80,000 unita Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setupa Machine-hours Direct labor-hours Estinated Overhead Cont $ 27,200 $130,400 $ 1,056,000 Estimated Activity Rima Posts 200 0 120 5,000 13,200 16,000 Total 400 5,000 29,200 Exercise 4-8 (Algo) Part 2 2. Determine the unit product cost of each product according to the ABC system. (Do not round Intermediate calculations. Round your final answers to 2 decimal places.)
Unit product cost of Rims =$30.86, unit product cost of Posts = $1,007.50
Rims:
Machine setups: 200 setups x $280 per setup = $56,000
Special processing: 0 machine-hours x $0 per MH = $0
General factory: 120 direct labor-hours x $5,000 per DLH = $600,000
Total estimated overhead cost for Rims = $56,000 + $0 + $600,000 = $656,000
Total units of Rims produced = 22,000 units
Unit product cost of Rims = (Direct materials cost + Direct labor cost + Overhead cost) / Total units of Rims produced
= ($14 + (0.6 x $15) + $656,000) / 22,000
= ($14 + $9 + $656,000) / 22,000
= $679,000 / 22,000
≈ $30.86
Posts:
Machine setups: 0 setups x $280 per setup = $0
Special processing: 120 machine-hours x $5,000 per MH = $600,000
General factory: 16,000 direct labor-hours x $5,000 per DLH = $80,000,000
Total estimated overhead cost for Posts = $0 + $600,000 + $80,000,000 = $80,600,000
Total units of Posts produced = 80,000 units
Unit product cost of Posts = (Direct materials cost + Direct labor cost + Overhead cost) / Total units of Posts produced
= ($10 + (0.2 x $15) + $80,600,000) / 80,000
= ($10 + $3 + $80,600,000) / 80,000
= $80,600,013 / 80,000
≈ $1,007.50
Thus, the unit product cost of Rims is approx. $30.86, and the unit product cost of Posts is approx. $1,007.50 according to the ABC system.
Learn more about product cost here:
https://brainly.com/question/30270797
#SPJ4
Manufacturers have to establish parameters for what is to be produced and in what quantity how does utilizing a supply contract aid both parties in terms of their roles/responsibilities involving the supply chain?
A supply contract plays a significant role in establishing a clear understanding of the responsibilities and roles of the parties involved in the supply chain. Manufacturers must establish parameters for what is to be produced and in what quantity.
Here is how utilizing a supply contract aids both parties in terms of their roles/responsibilities involving the supply chain:1. Quantity:Manufacturers have to estimate the required amount of supplies to keep production running smoothly and in a timely manner. Supply contracts are beneficial as they help guarantee the agreed-upon quantities and help the manufacturer estimate how much of each resource is needed for production.2. Quality:Supply contracts aid the manufacturer in ensuring that the required materials and products meet certain standards of quality. The manufacturer also has the right to reject goods that do not meet the standards or requirements laid out in the supply contract.3. Timeframes:Supply contracts assist in keeping production processes on schedule, as both parties agree on the time frames for delivery and production.4. Delivery: Supply contracts can include details regarding how and when supplies will be delivered. As a result, supply contracts can assist the manufacturer in planning and organizing the receipt of necessary resources.5. Cost: Supply contracts often include details about pricing and payment schedules, which aid manufacturers in forecasting expenses and budgeting for required resources.Overall, supply contracts are a valuable tool for both manufacturers and suppliers, as they guarantee the quality, quantity, delivery, and cost of essential resources. It also helps both parties understand their roles and responsibilities in the supply chain.
To know more about supply contract visit:
https://brainly.com/question/32286979
#SPJ11
Assume the equation below correspond to a profit-maximising, perfectly competitive firm. Use these equations to answer questions 5.1 to 5.4
TC= R350 if q = 0
TC= 500+ 10q + 4q2if q>0
MC= 100 + 8q if q>0
AVC=10+4q
5.1 If the firm is currently producing 20 units of output, then what are the firm's greatest possible profits?
5.2 Assume all you know is that this profit-maximising firm has an average variable cost of R50. Based on what you know about a firm like this in terms of how the firm behaves, what must be the firm's current profit?
5.3 If the market price is currently R106 (i.e P=106), then what would be the firm's greatest possible profits?
5.4 If the market price falls to R50 (i.e P=50), then what would be the firm's greatest possible profits
To determine the firm's greatest possible profits, we need to consider the total cost (TC), marginal cost (MC), average variable cost (AVC), and the market price (P) based on the given equations. By calculating the firm's total revenue (TR) and subtracting the total cost, we can determine the firm's profits under different scenarios.
5.1: If the firm is currently producing 20 units of output, we can calculate the total cost (TC) using the given equation. TC = 500 + 10q + 4q^2. Plugging in q = 20, we find that TC = 500 + 10(20) + 4(20^2) = 1,700. To calculate profits, we need to subtract TC from the total revenue (TR).
5.2: With only the information that the firm has an average variable cost (AVC) of R50, we cannot determine the firm's current profits. Average variable cost represents the variable cost per unit of output, but it does not provide information about the total cost or revenue.
5.3: If the market price is currently R106 (P = 106), we can calculate the total revenue (TR) by multiplying the market price by the quantity of output (q). TR = P * q = 106 * q. To find the greatest possible profits, we subtract the total cost (TC) from the total revenue (TR).
5.4: If the market price falls to R50 (P = 50), similar to the previous scenario, we would need the revenue equation to calculate the total revenue (TR) and determine the greatest possible profits.
In both cases (5.3 and 5.4), the calculation of profits depends on the revenue equation.
Learn more about revenue equation here:
https://brainly.com/question/14465227
#SPJ11
why some whig leaders blamed the financial collapse of 1837 on former president jackson's?
The financial collapse of 1837 in the United States was a complex event with multiple factors contributing to it. However, some Whig leaders at the time blamed former President Andrew Jackson's policies for exacerbating the crisis.
Here are a few reasons why they held this view: Jackson's Bank War: Andrew Jackson vehemently opposed the Second Bank of the United States and vetoed the rechartering bill in 1832. His actions led to the withdrawal of federal funds from the bank and their placement in state-chartered banks, known as "pet banks." Critics argued that this destabilized the banking system and contributed to the financial panic.
Speculative Land Policies: During Jackson's presidency, there was a significant increase in land speculation, particularly in western territories. The government's lenient credit policies, including the issuance of "wildcat" banks and the distribution of federal land on credit, contributed to the speculative bubble. When the bubble burst, it had a ripple effect on the economy.
Lack of Regulation: Jackson's administration had a philosophy of limited government intervention in economic affairs. Critics argued that this laissez-faire approach contributed to the lack of oversight and regulation, allowing risky practices to flourish in the banking and business sectors.
It's important to note that these views were not universally held, and there were differing opinions on the causes of the financial collapse of 1837. Economic factors such as over-speculation, the decline in international trade, and the global economic downturn also played significant roles in the crisis.
Learn more about collapse here
https://brainly.com/question/32172577
#SPJ11