Note that the standard deviation of the portfolio returns is approximately 8.60 %.
How is this so ?
Step 1: Calculate the average return (mean):
Mean = (-5% + 20% + 0% + 10% + 5%) / 5
= 30% / 5
= 6%
Step 2: Calculate the deviations of each return from the mean:
Deviation 1 = -5% - 6% = -11%
Deviation 2 = 20% - 6% = 14%
Deviation 3 = 0% - 6% = -6%
Deviation 4 = 10% - 6% = 4%
Deviation 5 = 5% - 6% = -1%
Step 3: Square each deviation:
Squared Deviation 1 = (-11%)² = 121%
Squared Deviation 2 = (14%)² = 196%
Squared Deviation 3 = (-6%)² = 36%
Squared Deviation 4 = (4%)² = 16%
Squared Deviation 5 = (-1%)² = 1%
Step 4: Calculate the average of the squared deviations ( variance):
Variance = ( Squared Deviation 1 + Squared Deviation 2 + Squared Deviation 3 + Squared Deviation 4 + Squared Deviation 5) / 5
= (121 % + 196%+ 36% + 16 % + 1%) / 5
= 370% / 5
= 74%
Step 5: Take the square root of the variance to get the standard deviation:
Standard Deviation = √Variance
= √74%
≈ 8.60%
Therefore, the standard deviation of the portfolio returns is approximately 8.60%.
Learn more about Standard Deviation :
https://brainly.com/question/475676
#SPJ4
1) Why should entrepreneurs and businesses embrace global markets? explain the advantages of going global
2) There are 5 external market forces known as PEST. Explain what is meant by Political and Regulatory, Economic, Social and Demographic and Technological and how each forces can impact business.
3) There are 3 basic strategies that businesses can effectively pursue which are Differentiation, Cost Leadership and Focus. Focus strategy can then be divided into 2, Cost Focus and Differentiation Focus. Explain all the strategies (the items in bold)
3) What are the advantages of using Angel Investor. Explain the advantages
4) What is Venture Capital. Explain the traits and characteristics of Venture Capital.
5) Explain The Stages In The Product Lifecycle. Explain each of the 5 stages.
6) What are the components of Guerrilla Marketing Strategies? Explain each component
Entrepreneurs and businesses should embrace global markets because it offers several advantages such as accessing larger customer bases, diversifying revenue streams, gaining a competitive edge through innovation and learning, and benefiting from economies of scale and cost efficiencies.
How to find out the role of entrepreneurs and businesses to embrace global markets?Embracing global markets provides entrepreneurs and businesses with numerous advantages.
Firstly, by expanding into international markets, they can tap into larger customer bases, reaching a wider audience and potentially increasing their sales and revenue.
This allows for business growth and the opportunity to diversify their customer portfolio, reducing dependence on a single market.
Secondly, operating in global markets exposes businesses to diverse cultures, consumer preferences, and market trends, fostering innovation and learning.
This exposure can lead to the development of new products, services, or business models that cater specifically to the needs and desires of international customers.
In turn, this innovation can provide a competitive edge and differentiation in the marketplace.
Thirdly, entering global markets enables businesses to benefit from economies of scale and cost efficiencies.
By producing and distributing products or services on a larger scale, they can reduce per-unit costs and enhance profitability.
Additionally, global expansion can provide access to resources, talent, and partnerships that may not be readily available in domestic markets.
Overall, embracing global markets offers entrepreneurs and businesses the potential for growth, innovation, diversification, competitive advantage, and operational efficiencies.
Learn more about Embracing global markets
brainly.com/question/28069836
#SPJ11
true or false?
In order to establish the value of an asset, it is important that an appraiser sets the price.
The risk-loving investor will actually lower his or her required rate of return as the risk increases.
By definition, the market has a beta of 1.00 because the risk is measured relative to the market itself.
Statement 1: False
An appraiser does not set the price of an asset; instead, their role is to determine the value of an asset based on various factors such as market conditions, comparable sales, and other relevant data. The actual price of the asset is determined through negotiations between the buyer and seller, or through market forces such as supply and demand.
The statement is false because an appraiser does not set the price of an asset.
Statement 2: False
A risk-loving investor typically seeks higher returns and is willing to accept greater risk. As the risk increases, the investor would typically require a higher rate of return to compensate for the additional risk. Therefore, the required rate of return would increase rather than decrease for a risk-loving investor.
The statement is false because a risk-loving investor would typically increase their required rate of return as the risk increases.
Statement 3: False
Beta is a measure of an asset's systematic risk relative to the market. A beta of 1.00 indicates that the asset's price is expected to move in line with the market. However, it does not mean that the market itself has a beta of 1.00. The market can have a beta greater than or less than 1.00 depending on its volatility compared to a benchmark index, usually represented by a beta of 1.00.
The statement is false because the market's beta is not necessarily 1.00.
To know more about asset, visit;
https://brainly.com/question/14826727
#SPJ11
Which inventory cost flow assumption does PVH use to value inventories in North America?
PVH uses the weighted average cost flow assumption to value its inventories in North America. This method takes into account the cost of all units in inventory and calculates an average cost per unit.
This average cost is then used to value the inventory on hand. This approach is commonly used by companies that have a large variety of products with varying costs, as it provides a more accurate representation of the true cost of inventory than other cost flow assumptions such as FIFO or LIFO.
Additionally, the weighted average method helps to smooth out the effects of cost fluctuations over time, resulting in a more stable cost of goods sold and gross margin.
To know more about average cost, refer to the link:
https://brainly.com/question/14415150#
#SPJ11
Explain in 2-3 paragraphs citing evidence
What are the well-understood determinants of South Korea’s
economic miracle between 1963 and 1997?
One of the well-understood determinants of South Korea's economic miracle between 1963 and 1997 was the implementation of effective industrial policies. The government played a crucial role in facilitating the country's rapid industrialization by focusing on key sectors, such as steel, chemicals, and electronics. They provided support in the form of financial incentives, protection from foreign competition, and investment in research and development. This enabled domestic industries to grow at an unprecedented rate, increasing exports and contributing significantly to the overall economic growth.
Another important determinant of South Korea's economic miracle was the focus on human capital development. The government prioritized investment in education, ensuring that the population had access to quality schooling, resulting in a highly skilled and educated workforce. This, in turn, allowed South Korea to develop advanced industries that demanded a high level of expertise, leading to increased productivity and innovation. Moreover, a strong work ethic within the population, influenced by the Confucian cultural values emphasizing diligence and discipline, further contributed to the nation's rapid economic progress.
In conclusion, the determinants of South Korea's economic miracle between 1963 and 1997 were a combination of effective industrial policies, human capital development, and a strong work ethic. These factors, supported by the government's strategic planning and investment, allowed the country to achieve rapid industrialization, resulting in impressive economic growth.
To know more about Investment visit-
brainly.com/question/16781185
#SPJ11
Discuss the various ways in which a society or government can slow down the growth of traffic on our roads and to encourage use of public transport instead.
There are several ways in which a society or government can slow down the growth of traffic on roads and encourage the use of public transport:
Improve and expand public transportation: Investing in the development and enhancement of public transportation systems, including buses, trains, trams, and subways, can provide convenient and efficient alternatives to private vehicles. This includes increasing the frequency and coverage of public transport routes.
Implement congestion pricing: By charging fees or tolls for driving in congested areas or during peak hours, governments can discourage private vehicle use and incentivize the use of public transport. This approach has been successfully implemented in cities like London and Singapore.
Enhance infrastructure for cyclists and pedestrians: Creating dedicated lanes and safe infrastructure for cyclists and pedestrians encourages active modes of transportation. This can reduce the number of vehicles on the road and promote healthier and more sustainable commuting options.
Provide incentives and subsidies: Offering incentives such as reduced fares, loyalty programs, or tax benefits for using public transport can make it more appealing to commuters. Subsidies can also help keep public transport fares affordable, making it a more cost-effective option.
Promote carpooling and ridesharing: Encouraging carpooling and ridesharing through incentives or dedicated lanes can reduce the number of vehicles on the road. Governments can collaborate with ride-hailing companies to implement policies that promote shared rides and reduce single-occupancy vehicle trips.
Develop park-and-ride facilities: Establishing park-and-ride facilities at strategic locations allows commuters to park their cars outside of congested areas and switch to public transport for the rest of their journey. This reduces traffic in city centers and encourages the use of public transportation.
Implement urban planning strategies: Designing cities with mixed land-use development, where residential areas, workplaces, and essential services are in close proximity, reduces the need for long commutes. By creating walkable neighborhoods and promoting transit-oriented development, reliance on private vehicles can be minimized.
By combining these strategies, societies and governments can effectively slow down the growth of traffic on roads and encourage the use of public transport. It requires a comprehensive and multi-faceted approach that addresses infrastructure, incentives, and behavioral change to create a sustainable and efficient transportation system.
To know more about transportation system click this link-
https://brainly.com/question/28223131
#SPJ11
On Friday, May 1, Dish Network Corp. (DISH) declared a cash dividend $0.35 per share to shareholders of record on Thursday, May 14, that is payable on Monday, June 8,2020. Bernadette purchased 500 shares of Dish Network stock on Tuesday, May 12, and Howard purchased 800 shares of this stock on the following day. Which one of the following statements s correct given this information? [Use SEC's rule effective in September 2017.] Save Answ O A. Bernadette will receive the dividend but Howard will not. O B.
B. Howard will not receive the dividend as he did not own the stock on the record date of May 14.
According to SEC's rule effective in September 2017, a shareholder must own the stock on the record date in order to receive the dividend payment. Bernadette, on the other hand, purchased the stock before the record date and will receive the dividend payment of $0.35 per share on June 8.
To know more about dividends, click here:
https://brainly.com/question/28392301
#SPJ11
a) Explain with your own words, what does it mean for a model selection procedure to be consistent or conservative, respectively.
b) Explain with your own words why to be consistent is a stronger property for a model selection procedure than to be conservative. What does "stronger" mean?
a) In the context of model selection procedures, consistency refers to the property of the procedure to correctly identify the true underlying model as the sample size approaches infinity.
In other words, a consistent model selection procedure consistently selects the true model when provided with a sufficiently large amount of data. On the other hand, a conservative model selection procedure tends to be cautious and avoids selecting models that may result in false positives or overfitting. It prioritizes avoiding incorrect model selection even if it means potentially missing out on the true model.
b) Being consistent is considered a stronger property for a model selection procedure than being conservative because consistency guarantees that as the sample size increases, the procedure will converge to the correct model. It provides a higher level of confidence in the selected model as the data becomes more abundant.
On the other hand, being conservative may lead to the rejection of true models or the inclusion of unnecessary variables, which can introduce biases and inefficiencies. "Stronger" in this context means that consistency is a more desirable and reliable property in model selection procedures, as it ensures convergence to the true model, while conservatism may be overly cautious and potentially miss important relationships in the data.
To know more about conservative model please visit:
https://brainly.com/question/30763281
#SPJ11
On January 1 of the current year, the Queen Corporation issued 11% bonds with a face value of $51,000. The bonds are sold for $49,470. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now Queen records straight-line amortization of the bond discount Determine the bond Interest expense for the year ended December 31. Select the correct answer 5.610 1.510
5.916
498
To determine the bond interest expense for the year ended December 31, we need to calculate the annual amortization of the bond discount.
The bond discount is the difference between the face value of the bonds and the amount they were sold for:
Bond discount = Face value - Sale price
= $51,000 - $49,470
= $1,530
Since the bonds pay interest semiannually, we need to calculate the semiannual amortization of the bond discount:
Semiannual bond discount amortization = Bond discount / Number of semiannual periods
= $1,530 / 10
= $153
The bond interest expense for the year ended December 31 will include the amortization of the bond discount for both the June 30 and December 31 interest payment dates. Therefore, the total bond interest expense for the year is:
Bond interest expense = Semiannual bond discount amortization x Number of interest payment dates in a year
= $153 x 2
= $306
Therefore, the correct answer is $306.
To know more about amortization, click here https://brainly.com/question/29643279
#SPJ11
Please explain, I will rate.
A bond just traded at a quoted price of 98.11. The bond has a face value of $1,000. Which of the following is TRUE?
a. The coupon rate on this bond must be greater than the yield to maturity.
b. No investor would ever buy this bond.
c. The price is $98.11.
d. This is a discount bond.
Where the above conditions are given, "this is a discount bond." (Option D)
What is a discount bond?A discount bond is one that is sold for less than its face value. Discount bonds are bonds that are currently selling on the secondary market for less than their face value. A bond is labeled a deep-discount bond if it is sold for a large discount to par value, often 20% or more.
Discount on Bonds Payable is a counter liability account that is debited to offset a credit on Bonds Payable and reflect the net book value, or carrying value, of an entity's outstanding bonds.
Learn more about bond:
https://brainly.com/question/29282058
#SPJ4
John is 28 years old and plans to retire at 67. He wants to have a fund at 67 that will let him spend $4,500 a month after retirement, and last for 45 years. Assume a continuous money flow. Answer the following. Round your answers (at the last step) to integers. (a) Suppose that after his retirement John puts the money in a fund paying interest at an annual rate of 4.2%, compounded continuously. Then John will need $ for his retirement (b) Suppose that John starts to invest a fixed amount each month from now until he retires, in a fund that pays interest at an annual rate of 6.2%, compounded continuously. Then he should invest $ each month
(a) To determine the amount John will need for his retirement, we can use the formula for continuous compounding:
A = P * [tex]e^(rt)[/tex]
Where:
A is the future value (amount needed for retirement)
P is the present value (monthly spending after retirement)
e is the base of the natural logarithm (approximately 2.71828)
r is the interest rate per period (annual rate divided by the number of compounding periods per year, in this case, continuously compounded)
t is the number of years
Given:
P = $4,500 (monthly spending after retirement)
r = 4.2% = 0.042 (annual interest rate)
t = 45 years
A = $4,500 * e^(0.042 * 45)
Using a calculator, we find that A ≈ $1,114,769.
Therefore, John will need approximately $1,114,769 for his retirement.
(b) To determine the fixed amount John should invest each month, we can use the formula for continuous compounding:
P = A /[tex](e^(rt))[/tex]
Where:
P is the monthly investment amount
A is the future value (amount needed for retirement)
e is the base of the natural logarithm (approximately 2.71828)
r is the interest rate per period (annual rate divided by the number of compounding periods per year, in this case, continuously compounded)
t is the number of years
Given:
A = $1,114,769 (amount needed for retirement)
r = 6.2% = 0.062 (annual interest rate)
t = 39 years (67 - 28)
P = $1,114,769 /[tex]e^(0.062 * 39)[/tex]
Using a calculator, we find that P ≈ $288.
Therefore, John should invest approximately $288 each month to accumulate the desired retirement fund.
Learn more about retirement fund.
https://brainly.com/question/1810559
#SPJ4
Options have non-linear payoffs. Discuss two alternatives to the variance-covariance methodology for estimating the Value at Risk (VaR) for an options portfolio. Illustrate the steps using an example and discuss the assumptions employed.
Since you have designed two alternative approaches, are they equivalent in terms of accuracy or is one approach better than the other? Discuss your reasoning.
Two alternative approaches to estimating the Value at Risk (VaR) for an options portfolio, other than the variance-covariance methodology, are the Historical Simulation approach and the Monte Carlo Simulation approach. These approaches take into account the non-linear payoffs of options and provide more accurate estimates of risk. However, the accuracy and superiority of one approach over the other depend on various factors and assumptions employed.
The Historical Simulation approach involves using historical data to simulate potential portfolio outcomes. It involves ordering historical returns, selecting the appropriate percentile to determine the VaR, and estimating the potential loss based on the historical data. This approach captures the non-linear payoffs of options and considers the historical behavior of the portfolio. On the other hand, the Monte Carlo Simulation approach involves generating numerous random scenarios for underlying asset prices and simulating the portfolio's performance under each scenario. This approach considers the stochastic nature of the underlying asset prices and provides a more comprehensive assessment of risk.
The superiority of one approach over the other depends on factors such as the availability and quality of historical data, the assumptions made in the simulation models, and the complexity of the options portfolio. The Historical Simulation approach may be more suitable when historical data is abundant and representative, while the Monte Carlo Simulation approach may be preferred when more flexibility and precision in modeling complex options are required. In conclusion, the accuracy and superiority of the alternative approaches depend on the specific context and assumptions employed. Both approaches provide more accurate estimates of risk compared to the variance-covariance methodology, but their relative performance varies based on the specific characteristics of the options portfolio and the data available for analysis.
Learn more about Historical Simulation here: https://brainly.com/question/32293564
#SPJ11
Transmitting documents across the Internet involves lower security risks than traditional electronic data interchange (EDI). T/F
False. Transmitting documents across the Internet does not involve lower security risks than traditional electronic data interchange (EDI).
Transmitting documents across the Internet actually carries higher security risks compared to traditional electronic data interchange (EDI). While the Internet provides a convenient and widespread communication medium, it also exposes data to various vulnerabilities and threats. The Internet is a public network that is susceptible to interception, hacking, and unauthorized access. Without proper security measures in place, sensitive information transmitted over the Internet can be compromised.
In conclusion, transmitting documents across the Internet carries higher security risks compared to traditional electronic data interchange (EDI). While the Internet offers convenience and accessibility, it requires robust security measures to safeguard sensitive information from unauthorized access and interception. EDI, with its dedicated networks and stringent security protocols, provides a more secure environment for exchanging sensitive documents.
Learn more about Transmitting here:
https://brainly.com/question/31077441
#SPJ11
Chess, Inc. has total equity of $35000, sales of $111000,
depreciation expense of $2100 in the prior year, total assets of
$58000, and a profit margin of 6%. Please calculate the ROE:
The Return on Equity, given the total assets, the sales and the equity, would be 19%.
How to find the return on equity ?The formula for the return on equity is :
ROE = Net Income / Total Equity
The net income is ;
Net Income = Sales x Profit Margin
Net Income = $ 111, 000 x 0. 06
Net Income = $ 6, 660
The return on equity is therefore;
ROE = Net Income / Total Equity
ROE = $ 6 ,660 / $ 35, 000
ROE = 0. 19
= 19%
Find out more on return on equity at https://brainly.com/question/11468206
#SPJ4
QUESTION 21 You borrow $19459 to buy a car. You will have to repay this loan by making equal monthly payments for 9 years. The bank quoted an APR of 6%. How much is your monthly payment (in $ dollars)? $_
To calculate your monthly payment for the car loan, we'll use the formula for calculating loan payments using the loan amount (P), the annual interest rate (r), and the number of monthly payments (n).
In this case, P = $19,459, r = 6% (0.06), and n = 9 years * 12 months/year = 108 payments.
First, we'll convert the annual interest rate to a monthly interest rate by dividing it by 12: (0.06/12) = 0.005.
Next, we'll use the formula for calculating monthly payments:
Monthly Payment = P * (r/12) * (1 + r/12)^n / [(1 + r/12)^n - 1]
Plugging in the values, we get:
Monthly Payment = 19,459 * 0.005 * (1.005)^108 / [(1.005)^108 - 1]
After performing the calculation, the monthly payment comes out to be approximately $244.30.
To know more about loan visit-
brainly.com/question/15228306
#SPJ11
Your firm intends to buy a CNC lathe for £100,000. In each of the first three years of operation the lathe will contribute £33,000 per year. In the fourth year the lathe will be sold for scrap for £20,000 and not used further. You have been asked to work out the present value of the purchase of the lathe if interest is 7%. Give the present value of the lathe to the nearest £10.
The present value of the purchase of the lathe is £102,335.32 to the nearest £10.
How do we calculate?We have the cash flows for the lathe as:
Year 1: £33,000
Year 2: £33,000
Year 3: £33,000
Year 4: £20,000
Present value
= CF1 / (1 + r)[tex]^1[/tex] + CF2 / (1 + r)² + CF3 / (1 + r)[tex]^3[/tex] + CF4 / (1 + r)[tex]^4[/tex]
Present value
= £33,000 / (1 + 0.07)[tex]^1[/tex] + £33,000 / (1 + 0.07)² + £33,000 / (1 + 0.07)[tex]^3[/tex] + £20,000 / (1 + 0.07)[tex]^4[/tex]
Present value
= £30,841.12 + £28,824.08 + £27,007.16 + £15,662.96
Present value = £102,335.32
Learn more about Present value at: https://brainly.com/question/20813161
#SPJ4
An analyst estimated that stock A will have an expected return
of 15.8% next year. He also estimated that the standard deviation
of this stock will be 21.9% next year. Assuming that the risk-free
rate
The required answer is the potential reward of a 15.8% return outweighs the risks associated with stock A.
Explanation:-
Assuming that the risk-free rate is 3%, the analyst's estimated expected return of 15.8% for stock A next year is the return that an investor should expect to receive after taking into account the inherent risk associated with investing in that stock. The standard deviation of 21.9% is a measure of the volatility or variability of the stock's returns, and indicates that there is a significant amount of risk associated with investing in stock A. Investors who are risk-averse may want to consider other investment options that offer lower volatility and a more predictable return. However, those who are comfortable taking on higher risk may find that the potential reward of a 15.8% return outweighs the risks associated with stock A.
To know about variability . To click the link.
https://brainly.com/question/15078630.
#SPJ11
Investments in smaller company stock compared to investments in larger company stock are generally:
A more volatile because they are less liquid, have less stock issued and have less diversified sources of income.
B more volatile because they are less liquid, have less stock issued and have more diversified sources of income.
C less volatile because they are less liquid, have less stock issued and have less diversified sources of income.
D less volatile because they are less liquid, have less stock issued and have more diversified sources of income.
Company stock are generally less volatile because they are less liquid, have less stock issued and have less diversified sources of income. The answer is OPTION C.
The volatility of small-cap stocks, which is higher than that of large-caps, is their biggest drawback. Small-cap stocks often beat big-cap stocks over time because they are able to develop more quickly than bigger firms, therefore they are better if you have a higher risk tolerance and longer time horizons.
Big-cap stocks can be a better option if you seek steady growth and dividend income. According to the law of diminishing returns, a company's growth rate must decrease as it expands. The attractiveness of small firms is their greater potential for expansion. The risk of investing is substantially larger since small firms fail far more frequently than large ones.
To learn more about Company, click here.
https://brainly.com/question/30532251
#SPJ4
A US firms signs a contract to purchase cheese from a French company for the price of 6 euros per kilo. When the two companies signed the contract the exchange rate was 1.3 US dollars per Euro however by the time the final payment is due the exchange rate fell to 1.1 US Dollars per euro. Is the US company worse or better off in this case?
Worse off
Better Off
The US company is worse off due to the unfavorable exchange rate, as they end up paying more US dollars for the cheese when converting to euros.
The decrease in the exchange rate from 1.3 to 1.1 US dollars per euro negatively affects their purchasing power.
In this case, the US company is worse off due to the change in exchange rates. When the contract was signed, the exchange rate was 1.3 US dollars per Euro.
At that time, the agreed-upon price for the cheese was 6 euros per kilo.
However, by the time the final payment is due, the exchange rate has fallen to 1.1 US dollars per Euro. This means that each euro is now worth less in US dollars.
As a result, when the US company converts their US dollars to euros to make the payment, they will receive fewer euros for the same amount of US dollars.
Consequently, the cost of purchasing the cheese has increased for the US company. They are now paying more US dollars to acquire the euros needed to fulfill the contract.
Therefore, the US company is worse off because they are effectively paying a higher price for the cheese than initially anticipated due to the unfavorable exchange rate.
Fluctuations in exchange rates can have a significant impact on international business transactions and can result in financial gains or losses for the parties involved.
In this particular case, the US company has incurred a loss due to the decrease in the value of the US dollar relative to the Euro.
To know more about exchange rate refer here:
https://brainly.com/question/32344536#
#SPJ11
The Sternin Company reported the following: $4,800 1.200 Accounts payable Inventory Cash Long-term debt Equipment 4,100 18,500 21,400 If the company purchased $1,300 of equipment on account, what is its debt to assets ratio after the transaction is recorded? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (eg, a final answer of 0.105678 would be entered as 10.6).
Before the transaction, the company's total assets were $44,900 ($1,200 + $18,500 + $21,400 + $4,800). Its total debt was $4,100 in accounts payable and $4,800 in long-term debt, for a total debt of $8,900.
Given the following information:
Equipment = $18,500
Inventory = $21,400
Cash = $4,800
After the purchase of $1,300 of equipment on account, the company's total assets increase to $46,200 ($1,200 + $18,500 + $22,700 + $4,800), and its total debt increases to $10,200 ($4,100 + $4,800 + $1,300).
Therefore, the debt to assets ratio after the transaction is recorded is:
$10,200 / $46,200 = 0.2214
Converting this to a percentage and rounding to one decimal place, the final answer is 22.1%.
To know more about percentage, click here:
https://brainly.com/question/28998211
#SPJ11
Company A's for 2018 had $45721.94M in Sales, $36443.35M Cost of Goods Sold. The Account Receivable was $5979,65M. Finally, the inventory and Accounts Payable were $2365.23M and $13739,69M respectively. The company increases sales by 29% however keeping the same inventory Applying the percentage of Sales Method, what would be the new CCC NOTE: Provide your answer with 2 decimals. If your computation is 35.3778, you must answer 35.38
The new Cash Conversion Cycle (CCC) for Company A, calculated using the percentage of Sales Method, would be approximately 35.38.
The Cash Conversion Cycle (CCC) is a measure of the time it takes for a company to convert its investments in inventory and accounts receivable into cash through sales. The formula for CCC is Days of Inventory Outstanding (DIO) plus Days Sales Outstanding (DSO) minus Days Payable Outstanding (DPO).
To calculate the new CCC using the percentage of Sales Method, we need to determine the changes in sales, inventory, accounts receivable, and accounts payable. Given that the sales increased by 29% while keeping the inventory the same, the new sales amount would be approximately $59,029.85M (29% increase of $45,721.94M). The inventory and accounts receivable values remain unchanged at $2,365.23M and $5,979.65M, respectively. The accounts payable also remains the same at $13,739.69M.
Using the formula for CCC, we calculate the new CCC as follows:
DIO = (Inventory / Cost of Goods Sold) * 365 days = ($2,365.23M / $36,443.35M) * 365 days ≈ 23.66 days
DSO = (Accounts Receivable / Sales) * 365 days = ($5,979.65M / $59,029.85M) * 365 days ≈ 37.05 days
DPO = (Accounts Payable / Cost of Goods Sold) * 365 days = ($13,739.69M / $36,443.35M) * 365 days ≈ 138.02 days
CCC = DIO + DSO - DPO = 23.66 days + 37.05 days - 138.02 days ≈ -77.31 days
The new CCC, rounded to two decimal places, is approximately 35.38. It represents the number of days it takes for Company A to convert its investments in inventory and accounts receivable into cash through sales, considering the increase in sales while keeping the inventory unchanged.
Learn more about Sales Method here: brainly.com/question/14531352
#SPJ11
Two firms produce and sell premium Alphonso mangoes. The two firms compete simultaneously in quantities. Both Firm 1 and Firm 2 produce with the same cost function: TC (Q1)=20+30Q1 and TC2(Q2=20+30Q2. Demand for the mangoes follows P=60-(1/2)Q, where Q = Q1+Q2.
Is Firm 1’s proposal to Firm 2 a Nash equilibrium if Firm 1 and Firm 2 only compete against each other in the market once? That is, will Firm 2 respond to Firm 1’s production of Q1=15 by producing Q2=15? If not, what quantity will Firm 2 choose? Explain.
No, Firm 1's proposal to Firm 2 is not a Nash equilibrium. Firm 2 will not respond by producing Q2 = 15.
To determine the Nash equilibrium, we need to find the best response of each firm given the other firm's quantity. Firm 2's profit function is given by π2 = (P - TC2) x Q2, where P = 60 - ([tex]\frac{1}{2}[/tex])Q and TC2 = 20 + 30Q2.
By maximizing its profit, Firm 2 will choose the quantity that maximizes its profit, i.e., Q2, such that [tex]\frac{d\pi 2}{dQ2}[/tex] = 0. Solving this equation, we find Q2 = 30.
Therefore, Firm 2 will choose Q2 = 30 instead of Q2 = 15 as proposed by Firm 1. This is because Firm 2 seeks to maximize its profit and, in this case, producing 30 mangoes is more profitable for Firm 2. Thus, the proposed production quantities are not a Nash equilibrium.
Learn more about profit function here:
https://brainly.com/question/16458378
#SPJ11
which one of the following is not one of the strategies for achieving a transient advantage?
Transient advantage is a competitive advantage that is short-lived and can be achieved by constantly adapting to changes in the market and industry. There are four strategies for achieving a transient advantage which include innovation, speed, ambiguity, and preemption.
These strategies enable businesses to stay ahead of the competition by continually improving products or services, responding quickly to changes, and taking bold actions to disrupt the market.
The one strategy that is not part of achieving a transient advantage is the traditional approach of maintaining the status quo. In today's rapidly changing business environment, maintaining the status quo is a recipe for disaster.
Businesses that are not willing to innovate, take risks, and adapt to changes are likely to fall behind and lose their competitive edge. It is important for businesses to constantly assess their operations and make necessary changes to stay ahead of the competition.
In conclusion, businesses need to embrace innovation, speed, ambiguity, and preemption as part of their strategy to achieve a transient advantage and remain competitive.
For more question on market
https://brainly.com/question/25492268
#SPJ11
Answer the following true/false questions. 2 points each. a) As the sample size increases, sample mean converges to its true value. b) Type 1 error is rejecting the null hypothesis when it is in fact true. c) Decide module in ARENA is unable to model n chance events at the same time. Therefore, one needs to use a sequence of decide modules to model n chance events
There is no need to use a sequence of decide modules to model multiple chance events; a single decide module can handle them.
a) true. as the sample size increases, the sample mean tends to approach the true population mean. this is known as the law of large numbers.
b) false. type 1 error is rejecting the null hypothesis when it is actually true. it represents a false positive, where the researcher concludes that there is a significant effect or relationship when, in reality, there is none.
c) false. the decide module in arena is capable of modeling multiple chance events simultaneously. it allows for the modeling of complex decision-making processes by incorporating probabilistic outcomes and branching paths based on specified probabilities.
Learn more about probabilities here:
https://brainly.com/question/29381779
#SPJ11
Manufacturing sector is one of the fastest growing business
sectors in the world. Identify any one industry in the
manufacturing sector and discuss its critical issues and
challenges.
One industry in the manufacturing sector that faces critical issues and challenges is the automotive industry.
One of the sectors with the fastest growth, the automotive industry, faces significant problems and obstacles. The switch to electric vehicles is one of the biggest obstacles. This shift necessitates significant investments in supply chain management, charging infrastructure, and battery technology. Technology disruption, including connected and autonomous vehicles, presents both opportunities and difficulties for research and development and satisfying consumer demands.
Production procedures become more complex as a result of strict environmental regulations and emission standards. It's essential to manage the global supply chain, particularly in light of geopolitical unpredictability. The industry is also impacted by consumers shifting preferences toward shared mobility and sustainability. Additionally, it is crucial to close the workforce skill gap in developing industries like data analytics and electric vehicle technology.
In order to overcome these obstacles and ensure the automotive industry's continued expansion and success, innovative thinking, teamwork, sustainable practices and strategic talent management are required.
Learn more about manufacturing sector at:
brainly.com/question/12937087
#SPJ4
Five years ago, you took out a $2,000,000, 30-year mortgage, monthly payments at 8% interest, with no prepayment penalty. Suppose today you can get 30-year mortgages at 6% with 2 points, and you plan to sell the property after five years. What would be the current opportunity cost of capital (OCC) or yield relevant for the refinancing decision?
8.00%
6.00%
9.00%
6.49%
The current opportunity cost of capital (OCC) or yield relevant for the refinancing decision is given as 6.49%
How to solve for the current opportunity costThe monthly payment is calculated using the PMT function in Excel. In this calculation, the mortgage amount is the present value (PV), the periodical interest rate is the 'Rate,' and the total number of payments for amortization is the NPER.
The balance outstanding after 5 years is calculated using the FV function. The number of payments completed serves as the NPER for this calculation.
After refinancing, the monthly payment is recalculated using the same method as mentioned above. In this case, the balance after 5 years becomes the new present value (PV).
The net loan received on refinancing is determined by subtracting the closing costs from the balance after 5 years.
If the loan is held only for 5 years after refinancing, the amount required to pay off the loan is calculated using the FV function.
The opportunity cost associated with the refinance is determined by calculating the internal rate of return (IRR) using the RATE function in Excel. The net amount after points is considered as the present value (PV), and the amount to pay off serves as the future value (FV) for this calculation. The result is then multiplied by 12 in order to annualize it.
Therefore, the opportunity cost associated with the refinance is calculated to be 6.4842%.
Check the attachment for the excel solution
Read more on mortgage here:https://brainly.com/question/1318711
#SPJ4
In March of 2019 PwC concluded their investigation finding a $7.4 billion accounting fraud at Steinhoff International.
1. Please Identification of pertinent key facts and major stakeholders involved in this case.
2. Please Identify the ethical dilemma and link it to relevant theories in this case.(e.g. Kholberg, Kant, Hanneman, Rest, etc.)
3. Please Identify the operational and/or accounting issues in this case
4. Please Identify the alternative options in this case
5. Please Present some recommendations for this case
In the Steinhoff International fraud case, key facts include the discovery of a $7.4 billion accounting fraud in March 2019 by PwC. Major stakeholders involved are the company, its shareholders, employees, and PwC.
The ethical dilemma involves fraudulent financial reporting, which can be linked to Kohlberg's stages of moral development, where the involved parties acted at lower stages prioritizing personal gains. Additionally, Kant's deontological ethics were breached as dishonest actions were taken.
Operational and accounting issues include inaccurate financial statements, manipulation of earnings, and a lack of proper internal controls.
Alternative options include strengthening internal controls, implementing a robust whistleblowing system, and conducting regular independent audits.
Recommendations for this case include improving corporate governance, enhancing transparency, and ensuring strict adherence to ethical principles for all stakeholders.
For more about fraud:
https://brainly.com/question/27603879
#SPJ11
the way these are to be answered, viz:
A- First paragraph, your direct answer to the question.
B- Second paragraph, your explanation to the answer, citing the part of the lesson taught.
C- Your opinion, conclusion, or your observation of the question.
Q-A Pigovian tax was imposed on a plastics manufacturing company because its activities brought destruction to the environment. When the damage to the environment was assessed, it was worth BD80,000.000. The government collected a Pigovian tax of BD75,000.000. The plastics manufacturing company refused to pay because it said the tax was too high. Was the company right in its refusal? If yes, why? If no, why not? Support your answer with reasons from the lesson.
A. The plastics manufacturing company is not justified in refusing to pay the Pigovian tax, as the tax is imposed to correct the negative externality created by their activities, which cause environmental damage.
B. Pigovian taxes are designed to correct market failures that arise from negative externalities, such as pollution or environmental damage. In this case, the plastics manufacturing company is causing environmental damage worth BD80,000.000, but the government is only collecting a tax of BD75,000.000. This means the tax is less than the actual damage caused by the company. According to the lesson, Pigovian taxes should be set equal to the marginal social cost of the negative externality, in this case, the environmental damage. Therefore, the tax is not too high, but rather slightly lower than the true cost of the environmental damage.
C. In conclusion, the company's refusal to pay the Pigovian tax is not justified. They are responsible for the environmental damage caused by their activities, and the tax serves as a way to internalize the costs they impose on society. Moreover, the tax amount collected is less than the actual damage caused, indicating that the company is not overtaxed. The company should pay the tax and work towards reducing its negative impact on the environment.
To know more about Company visit-
brainly.com/question/26775900
#SPJ11
All other things held equal, a decrease in investment spending (D) should a. Increase total output and, consequently, increase consumption b. Decrease total output and consequently, increase consumption c. Increase total output and consequently, decrease consumption d. Decrease total output and, consequently, decrease consumption
All other things held equal, a decrease in investment spending should decrease total output and, consequently, decrease consumption (Option D).
When investment spending decreases, it directly affects the aggregate demand in the economy. Investment spending is a component of aggregate demand and represents the demand for goods and services by businesses.
A decrease in investment spending reduces the overall demand for goods and services, causing a contractionary effect on the economy. As businesses reduce their investment, it leads to a decrease in production and output. With lower output, income and employment levels also decline, resulting in reduced consumer spending and consumption. Therefore, all other things being equal, a decrease in investment spending would lead to a decrease in total output and subsequently decrease consumption. This highlights the interdependence between investment, output, and consumption in the macroeconomy.
Know more about Investment Spending here:
https://brainly.com/question/29766778
#SPJ11
Distance-related research is one of the most important streams within International Business (IB) (Zaheer et al., 2012). Understanding the role of distance is extremely important for Multinational Enterprises (MNEs) when entering foreign markets. Despite the extent of globalisation, some people argue that the world is not flat and the role of distance is still relevant for MNEs.
Please analyse and critically evaluate "the world is not flat" thesis and the CAGE framework. Please provide examples of how different types of distances have affected Walmart’s entry strategies in China.
The world is not flat; distance still matters for multinational enterprises (MNEs) in international business. The CAGE framework helps understand different types of distances and their impact on MNEs' entry strategies. Walmart's entry into China provides examples of how various distances influenced their approach.
How does the role of distance affect MNEs' international strategies and the relevance of the "the world is not flat" thesis?Understanding the role of distance is crucial for MNEs when expanding into foreign markets. Despite globalization, the world is not flat, and various distances continue to shape business decisions. The CAGE framework, developed by Ghemawat, offers a useful lens to analyze these distances.
The CAGE framework highlights four dimensions of distance: cultural, administrative, geographic, and economic. Cultural distance includes differences in language, religion, norms, and values. Administrative distance refers to political, legal, and institutional differences. Geographic distance considers physical proximity, time zones, and transportation costs. Economic distance accounts for differences in income levels, cost of living, and market size.
In the case of Walmart's entry into China, various distance factors influenced their strategies. Cultural distance posed a challenge as Chinese consumers had different preferences, shopping habits, and cultural expectations compared to Walmart's home market in the United States. Walmart had to adapt its product offerings and store formats to cater to local preferences, such as emphasizing fresh produce and establishing smaller, neighborhood-focused stores.
Administrative distance also played a role. Walmart faced regulatory complexities, including restrictions on store locations, labor regulations, and local partnerships. Navigating these administrative hurdles required careful engagement with Chinese authorities and compliance with local laws.
Geographic distance affected Walmart's supply chain and logistics. China's vast size and regional disparities presented logistical challenges in terms of sourcing products, managing distribution networks, and coordinating operations across multiple locations.
Economic distance influenced Walmart's pricing and market positioning strategies. China's income levels and consumer purchasing power varied significantly across regions. Walmart had to balance affordability with profitability, offering competitive prices while adjusting product offerings to suit different income segments.
The "the world is not flat" thesis emphasizes that distance still matters for MNEs, despite the impact of globalization. The CAGE framework provides a comprehensive framework for analyzing different types of distances and their effects on international business strategies. By considering cultural, administrative, geographic, and economic distances, MNEs can better understand the complexities of foreign markets and tailor their entry strategies accordingly.
Learn more about CAGE
brainly.com/question/31076384
#SPJ11
What forms of preferential treatment can the holders of preference shares receive over and above the rights of holders of ordinary shares?
"Holders of preference shares may enjoy several forms of preferential treatment compared to holders of ordinary shares. Some of these advantages include:Dividend priority, Capital repayment priority, Voting rights, Convertibility
Dividend priority: Preference shareholders are typically entitled to receive fixed dividends before any dividends are distributed to ordinary shareholders. This ensures a consistent income stream for preference shareholders.
Capital repayment priority: In the event of liquidation or winding up of the company, preference shareholders have priority over ordinary shareholders in receiving their capital back. They are entitled to be repaid their investment before ordinary shareholders receive any distribution.
Voting rights: Preference shareholders often have limited or no voting rights. This can prevent them from influencing major decisions in the company, allowing management decisions to be made solely by ordinary shareholders.
Convertibility: Some preference shares may be convertible into ordinary shares after a specified period. This allows preference shareholders to potentially benefit from the increase in value and growth potential of ordinary shares.
Overall, preference shareholders enjoy preferential treatment primarily in terms of dividends, capital repayment, and voting rights, which can vary based on the specific terms outlined in the company's articles of association or shareholder agreement.
Know more about shareholders, refer here
https://brainly.com/question/28170754
#SPJ11
"
