The correct answer is None of these answers are correct. The amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement is $8,920.
To find the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement, we need to consider the changes in accounts receivable.
The formula to calculate cash inflow from customers is:
Cash Inflow = Credit Sales - Increase in Accounts Receivable + Decrease in Accounts Receivable
Given that credit sales were $7,520 and the beginning balance in accounts receivable was $2,000, we can calculate the increase in accounts receivable as follows:
Increase in Accounts Receivable = Ending Balance in Accounts Receivable - Beginning Balance in Accounts Receivable
Increase in Accounts Receivable = $1,300 - $2,000
Increase in Accounts Receivable = -$700 (negative because there was a decrease)
Now, we can calculate the cash inflow from customers:
Cash Inflow = $7,520 - (-$700) + (-$700)
Cash Inflow = $7,520 + $700 + $700
Cash Inflow = $8,920
Therefore, the correct answer is None of these answers are correct. The amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement is $8,920.
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For each of the following aggregate expenditure (AE) functions, identify the marginal propensity to spend (z) and calculate the simple multiplier. a. \( A E=160+0.37 Y \) The marginal propensity
The marginal propensity to spend (z) represents the fraction of additional income that is spent rather than saved. The marginal propensity to spend (z) would be 0.37.
To find the marginal propensity to spend (z) for the given aggregate expenditure (AE) function, we look at the coefficient of the income (Y) variable. In this case, the coefficient is 0.37. To calculate the simple multiplier, we use the formula: simple multiplier = 1 / (1 - z).
Using the value of z we found earlier, the simple multiplier is:
simple multiplier = 1 / (1 - 0.37)
simple multiplier = 1 / 0.63
simple multiplier ≈ 1.59 (rounded to two decimal places)
So, for the given aggregate expenditure function, the marginal propensity to spend (z) is 0.37 and the simple multiplier is approximately 1.59.
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Explain KFC's successful campaigns during 2019 to 2022 and how
much income from these campaigns.
KFC's successful campaigns between 2019-2022 generated significant income, but details and exact income are not provided.
KFC is known for its innovative marketing campaigns that have captured consumer attention and contributed to the company's success.
Between 2019 and 2022, KFC launched various campaigns aimed at increasing brand awareness, driving sales, and engaging with their target audience.
During this period, KFC implemented creative and memorable advertising campaigns that resonated with consumers.
They leveraged digital platforms, social media, and traditional marketing channels to reach a wide range of customers.
These campaigns focused on highlighting KFC's unique offerings, such as their famous fried chicken and signature sauces, as well as promoting limited-time menu items and value deals.
By effectively targeting its core customer base and staying attuned to market trends, KFC was able to generate substantial income from these campaigns.
The exact income figures from these campaigns are not specified in the question.
However, it is evident that KFC's successful marketing efforts contributed to increased sales and profitability for the company during this period.
Overall, KFC's successful campaigns between 2019 and 2022 played a significant role in driving consumer interest, boosting sales, and ultimately contributing to the company's financial success.
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John is the owner of a factory producing solar panels in Nooneknow. John sells his products in the local market, and he would like to maximize the profit of his business. Below are the demand, the relevant marginal revenue and the marginal cost of John’s product.
Quantity demanded per day: Q = 10 – P, where P is the price of solar panel;
Marginal revenue per day: MR = 10 – 2Q;
Marginal cost: MC = 6;
For example, when P = 9, the quantity demanded per day Q is 1, and MR is 8.
(i) How many solar panels should John’s factory produce every day? What is the profit-maximization price? Explain your answer briefly.
(ii) Suppose that John’s business is earning a profit of 3 per day at the optimal output, i.e. your answer to (i). What is the total fixed cost of John’s business?
(iii) Now the government of Nooneknow imposes a unit tax of 2 per solar panel sold. Briefly explain how this unit tax might affect John's factory's optimal price and output.
(iv) A business consultant recommends John move his factory to Winterfell. This move helps reduce the marginal cost of production from 6 to 2. However, the transportation cost of moving a solar panel from Winterfell to Nooneknow is 2 per unit. In addition, this move will increase the total fixed cost by 1. In other words, the new total fixed cost is your answr to (ii) plus 1. Furthermore, John needs to pay the unit tax to the Nooneknow government since the panels are still sold in Nooneknow. Should John move his factory to Winterfell? Briefly explain your answer.
John's factory should produce 2 solar panels every day, with a profit-maximization price of 8. The total fixed cost of John's business is 4. The unit tax imposed by the Noone know government may affect the optimal price and output by increasing production costs.
(i) To determine the optimal quantity of solar panels John's factory should produce every day, we need to find the quantity where marginal revenue (MR) equals marginal cost (MC). Given that MC is a constant of 6, we can equate MR to 6 and solve for Q.
MR = MC
10 - 2Q = 6
-2Q = 6 - 10
-2Q = -4
Q = -4 / -2
Q = 2
Therefore, John's factory should produce 2 solar panels every day.
To find the profit-maximization price, we substitute the value of Q into the demand function to obtain:
Q = 10 - P
2 = 10 - P
P = 10 - 2
P = 8
Hence, the profit-maximization price is 8.
(ii) If the business is earning a profit of 3 per day at the optimal output, it means that total revenue (TR) exceeds total cost (TC) by 3. Since profit is equal to TR minus TC, we can set up the equation:
Profit = TR - TC
3 = (P × Q) - (MC × Q)
3 = (8 × 2) - (6 × 2)
3 = 16 - 12
3 = 4
Therefore, the total fixed cost of John's business is 4.
(iii) With the imposition of a unit tax of 2 per solar panel sold, the cost of production increases. This would result in an increase in the marginal cost (MC) of producing solar panels. As a result, the profit-maximization price would also need to increase to cover the additional tax burden. The optimal output level may also be affected as higher costs could lead to a lower quantity produced.
(iv) To determine whether John should move his factory to Winterfell, we need to compare the costs and benefits of the move. The reduced marginal cost from 6 to 2 would likely lead to a higher level of profit. However, the transportation cost of 2 per unit and the increase in total fixed cost by 1 should also be taken into account. It is necessary to calculate the new total fixed cost by adding 1 to the total fixed cost determined in (ii). After considering all these factors, John should weigh the potential increase in profit against the additional costs and make an informed decision.
In conclusion, John's factory should produce 2 solar panels every day, with a profit-maximization price of 8. The total fixed cost of John's business is 4. The unit tax imposed by the Nooneknow government may affect the optimal price and output by increasing production costs. Whether John should move his factory to Winterfell depends on a comparison of the costs and benefits, considering the reduced marginal cost, transportation cost, and increase in total fixed cost.
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2.3: List the internal and external stakeholders of the selected organisation and discuss their impact on the strategic business planning of the selected organisation.
Internal stakeholders: Employees, Managers, Board of directors.
External stakeholders: Customers. Suppliers, Competitors, Government.
Stakeholders' needs and expectations impact strategic business planning. Organizations should understand them to develop successful plans.
Internal stakeholdersEmployees: Employees are the most important internal stakeholder group. They are responsible for carrying out the organization's plans and strategies, and their satisfaction and motivation are essential for success.
Managers: Managers are responsible for setting the strategic direction of the organization and ensuring that it is implemented effectively. They need to be able to gather input from employees and other stakeholders, and to make decisions that are in the best interests of the organization as a whole.
Board of directors: The board of directors is responsible for overseeing the management of the organization and ensuring that it is acting in the best interests of shareholders. They need to be able to provide strategic guidance to management, and to hold them accountable for their performance.
External stakeholdersCustomers: Customers are the ultimate beneficiaries of the organization's products or services. Their needs and expectations must be considered when developing strategic plans.
Suppliers: Suppliers provide the organization with the goods and services it needs to operate. Their reliability and efficiency can have a significant impact on the organization's ability to meet its goals.
Competitors: Competitors are vying for the same customers and market share. The organization needs to be aware of their strengths and weaknesses, and to develop strategies to stay ahead of the competition.
Government: Governments can have a significant impact on the organization's operations through regulations, taxes, and other policies. The organization needs to be aware of these factors and to develop strategies to minimize their impact.
Impact on the strategic business planningThe strategic business planning process should involve all of the organization's stakeholders. By understanding the needs and expectations of all stakeholders, the organization can develop plans that are more likely to be successful.
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Q7) Portfolio theory (CAPM by Uintner, Sharpe) proposes that higher the risk, higher the experted Return? What kind of Risk are they talking about?
Hello! When it comes to portfolio theory, such as the Capital Asset Pricing Model (CAPM) developed by William F. Sharpe and John Lintner, the general proposition is that higher risk is associated with higher expected returns.
In portfolio theory, the risk being discussed is typically the systematic or market risk. This type of risk is related to the overall market and cannot be eliminated by diversification. It is measured by beta, which represents the sensitivity of a security or portfolio to market movements.
According to CAPM, the expected return of an asset or portfolio is determined by its beta. Higher beta implies higher systematic risk and, therefore, higher expected returns. The underlying assumption is that investors require compensation for bearing greater systematic risk.
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Surveys of International Business - I prefer Nike and Starbucks
Ethics is a term that is nebulous and not always easy to define. However, most people know an unethical act when it is presented. Here are a few cases of unethical behavior. The CEO of Turing Pharmaceuticals, Martin Shkreli, quickly went from utter obscurity to being the world's most hated chief executive by buying a company that makes a life-saving pharmaceutical and promptly raising the price from $13.50 to $750 per tablet. Most recent update: Shkreli has been arrested, for fraudulent activity unrelated to his price-gouging. Few tears are being shed, even among those who would defend his price-gouging as an unremarkable side-effect of an otherwise-beneficial free market. Volkswagen was in the news for unethical behavior on a massive scale. Volkswagen's installation of a software "defeat device" in 11 million Volkswagen and Audi diesel vehicles sold worldwide has led to an enormous vehicle recall and an admission of guilt that has surprised many. Volkswagen misled the EPA and the CEO was terminated.
Find a case of unethical behavior and explain it to the class. Also, find an international company that you believe behaves ethically. (Hint: On company websites, you will see the corporate responsibility as indicated by the company).
One case of unethical behavior is the CEO of Turing Pharmaceuticals, Martin Shkreli, who raised the price of a life-saving pharmaceutical from $13.50 to $750 per tablet.
This action was widely criticized as price-gouging and resulted in Shkreli becoming one of the most hated chief executives. He was later arrested for unrelated fraudulent activity.
An international company that is known for behaving ethically is Nike. Nike demonstrates corporate responsibility through various initiatives outlined on their website. They have programs focused on sustainability, labor rights, and community impact.
For example, Nike aims to achieve zero waste and reduce their environmental footprint. They also strive to improve working conditions in their supply chain and support community development through their Nike Community Impact Fund.
Overall, Nike is an example of an international company that actively promotes ethical behavior through their corporate responsibility initiatives.
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In the following Nash-demand game, two players bargain over the division of a resource (a "pie") of size 5. They simultaneously and independently announce demands, x≥0 and y≥0 respectively. If their demands are compatible, i.e., x+y≤5, each receives their demanded share. Otherwise they both receive nothing. Each player's payoff equals the share of the resource they receive. (a) Is there a Nash equilibrium in which one player's share exceeds the other player's share? (b) Is there a Nash equilibrium with shares x and y that satisfy x+y=3 ? (c) Is there a Nash equilibrium in which both players receive nothing? (d) Is there a Nash equilibrium in which only one player has a positive payoff? (e) Are there Pareto efficient Nash equilibria? (f) Are all Nash equilibria Pareto efficient?
(a) No, there is no Nash equilibrium in which one player's share exceeds the other player's share. In this game, players have symmetric strategies and payoffs.
If one player demands more than the other, they risk receiving nothing, which would result in a lower payoff compared to receiving a positive share. Therefore, players have no incentive to demand more than the other player, leading to equal shares.
(b) Yes, there is a Nash equilibrium with shares x and y that satisfy x + y = 3. In this case, both players can demand 1.5 units each, satisfying the constraint x + y ≤ 5. Since they both demand the same share, neither player has an incentive to deviate from this strategy and demand more.
(c) Yes, there is a Nash equilibrium in which both players receive nothing. If both players demand more than 5 units in total, their demands become incompatible, and they both receive nothing. This outcome can be a Nash equilibrium if both players expect the other player to demand more than 5 units.
(d) No, there is no Nash equilibrium in which only one player has a positive payoff. In any Nash equilibrium, both players have symmetric strategies and receive the same share. If one player's payoff is positive, the other player's payoff will also be positive, ensuring a fair division of the resource.
(e) Yes, there are Pareto efficient Nash equilibria. A Pareto efficient outcome is one in which no player can improve their payoff without worsening the payoff of the other player. In this game, any Nash equilibrium with a positive share for both players is Pareto efficient since neither player can increase their share without decreasing the other player's share.
(f) Not all Nash equilibria are Pareto efficient. For example, the Nash equilibrium in which both players receive nothing is not Pareto efficient since both players could have achieved positive payoffs if they had demanded compatible shares. Pareto efficiency implies that there is no possible alternative allocation that makes at least one player better off without making the other worse off, but some Nash equilibria do not satisfy this criterion.
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Which of the following is a characteristic of a successful entrepreneur?
Power seeking
Relies heavily on others who believe in the business
Willingness and desire to follow others
Action-oriented
A characteristic of a successful entrepreneurs is being action-oriented. This means that they are proactive, take initiative, and are willing to take risks to achieve their goals.
Successful entrepreneurs are not passive or waiting for things to happen, but rather they actively seek opportunities and are decisive in their actions.
Being power-seeking is not necessarily a characteristic of a successful entrepreneur. While entrepreneurs do have to assert themselves and make decisions, being power-seeking can lead to conflicts and may hinder collaboration with others.
Reliance on others who believe in the business is important for an entrepreneur, but relying heavily on others may not be the most effective approach. Successful entrepreneurs understand the value of collaboration and building a strong team, but they also take personal responsibility for the success of their business.
In conclusion, the characteristic of being action-oriented is more aligned with a successful entrepreneur compared to the other options provided.
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Following information pertains to Dilber Associates:
Normal Capacity of plant is 20,000 units per month or 240,000 units a year.
Variable costs per unit are:
Rs.
Direct Material 3.00
Direct Labour 2.25
Variable Factory Overhead 0.75
Total 6.00
Fixed overheads are Rs.300,000 per year or Rs.1.25 per unit at normal capacity. Company is using ‘units of product’ as basis for applying overheads. Fixed marketing and administrative expenses are Rs.60,000 per year and variable marketing expenses are Rs.3,400, Rs.3,600, Rs.4,000 and Rs.3,000 for the first, second, third and fourth month respectively.
Actual and applied variable overheads are the same. Likewise no material or labour variance exists. There is no work in process. Standard costs and finished goods inventories in units are:
MONTH
First Second Third Fourth
Units in beginning inventory ----- ----- 3,000 1,000
Units produced 17,500 21,000 19,000 20,000
Units sold 17,500 18,000 21,000 16,500
Units in ending inventory ----- 3,000 1,000 4,500
Required:
a) Prepare income statement through Absorption
b) Prepare income statement through Direct Costing methods.
a) Income Statement through Absorption Costing is shown below.
Sales Revenue:
Month 1: 17,500 units x Rs.6.00 = Rs.105,000
Month 2: 18,000 units x Rs.6.00 = Rs.108,000
Month 3: 21,000 units x Rs.6.00 = Rs.126,000
Month 4: 16,500 units x Rs.6.00 = Rs.99,000
Variable Cost of Goods Sold:
Month 1: 17,500 units x (Rs.3.00 + Rs.2.25 + Rs.0.75) = Rs.87,500
Month 2: 18,000 units x (Rs.3.00 + Rs.2.25 + Rs.0.75) = Rs.90,000
Month 3: 21,000 units x (Rs.3.00 + Rs.2.25 + Rs.0.75) = Rs.105,000
Month 4: 16,500 units x (Rs.3.00 + Rs.2.25 + Rs.0.75) = Rs.82,500
Fixed Manufacturing Overhead:
Month 1: 17,500 units x Rs.1.25 = Rs.21,875
Month 2: 18,000 units x Rs.1.25 = Rs.22,500
Month 3: 21,000 units x Rs.1.25 = Rs.26,250
Month 4: 16,500 units x Rs.1.25 = Rs.20,625
Fixed Marketing and Administrative Expenses: Rs.60,000 (allocated equally over the four months)
Total Expenses:
Month 1: Variable Cost of Goods Sold + Fixed Manufacturing Overhead + Fixed Marketing and Administrative Expenses = Rs.87,500 + Rs.21,875 + Rs.15,000 = Rs.124,375
Month 2: Variable Cost of Goods Sold + Fixed Manufacturing Overhead + Fixed Marketing and Administrative Expenses = Rs.90,000 + Rs.22,500 + Rs.15,000 = Rs.127,500
Month 3: Variable Cost of Goods Sold + Fixed Manufacturing Overhead + Fixed Marketing and Administrative Expenses = Rs.105,000 + Rs.26,250 + Rs.15,000 = Rs.146,250
Month 4: Variable Cost of Goods Sold + Fixed Manufacturing Overhead + Fixed Marketing and Administrative Expenses = Rs.82,500 + Rs.20,625 + Rs.15,000 = Rs.118,125
Net Income:
Sales Revenue - Total Expenses = Net Income
Month 1: Rs.105,000 - Rs.124,375 = -Rs.19,375
Month 2: Rs.108,000 - Rs.127,500 = -Rs.19,500
Month 3: Rs.126,000 - Rs.146,250 = -Rs.20,250
Month 4: Rs.99,000 - Rs.118,125 = -Rs.19,125
b) Income Statement through through Direct Costing methods is shown below.
Month 1:
Sales Revenue:
17,500 units sold x Rs.6.00 per unit = Rs.105,000
Variable Cost of Goods Sold:
17,500 units sold x (Rs.3.00 + Rs.2.25 + Rs.0.75) = Rs.87,500
Variable Marketing Expenses: Rs.3,400
Total Variable Costs:
Variable Cost of Goods Sold + Variable Marketing Expenses = Rs.87,500 + Rs.3,400 = Rs.90,900
Contribution Margin:
Sales Revenue - Total Variable Costs = Rs.105,000 - Rs.90,900 = Rs.14,100
Fixed Overheads (Rs.1.25 per unit):
17,500 units sold x Rs.1.25 = Rs.21,875
Fixed Marketing and Administrative Expenses: Rs.60,000
Total Fixed Expenses:
Fixed Overheads + Fixed Marketing and Administrative Expenses = Rs.21,875 + Rs.60,000 = Rs.81,875
Net Income:
Contribution Margin - Total Fixed Expenses = Rs.14,100 - Rs.81,875 = -Rs.67,775 (Loss)
The income statements for the remaining months (Month 2, Month 3, and Month 4) can be prepared following the same steps using the corresponding data.
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When engaging in international business, it is important to tailor strategies, such as advertising campaigns, to specific cultures rather than adopting worldwide advertising campaigns. What would be a successful advertising campaign in the US might not be a successful campaign in South Korea. By avoiding generic advertising campaigns, you are also avoiding a. Globalization b. Ethnocentrism c. Home country bias d. Cultural diversification
The correct answer is:
b. Ethnocentrism.
By tailoring advertising campaigns to specific cultures in international business, companies avoid ethnocentrism, which is the belief that one's own culture or country is superior to others. Ethnocentrism can hinder effective communication and marketing by assuming that what works in one country will work universally. Recognizing and respecting cultural differences allows companies to create successful advertising campaigns that resonate with local consumers and increase their chances of success in international markets.
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Determine the economic appropriate service life (ESL) of the machine. This requires an initial investment of $10,000, a lifespan of up to 5 years, and in year 1 there are no maintenance costs. As it is still under warranty, maintenance costs will be $600 in year 2 and will increase by $600 per year in subsequent years, with the machine's market value reduced by 20% per annum at an interest rate of 15% per annum. a. 1 year b. 4 years c. 3 years d. 2 years e. 5 years
The correct answer is d. 2 years. The economic appropriate service life (ESL) of the machine can be determined by calculating the point at which the present value of all costs (including initial investment, maintenance costs, and market value reduction) is equal to or lower than the initial investment.
In this case, we have an initial investment of $10,000 and a lifespan of up to 5 years. Let's calculate the present value of all costs over the years:
Year 1: No maintenance costs and no market value reduction.
Year 2: Maintenance costs of $600 and market value reduction of 20% (which equals $10,000 * 0.2 = $2,000).
Year 3: Maintenance costs of $1,200 ($600 increase from year 2) and market value reduction of 20% (which equals $8,000 * 0.2 = $1,600).
Year 4: Maintenance costs of $1,800 ($600 increase from year 3) and market value reduction of 20% (which equals $6,400 * 0.2 = $1,280).
Year 5: Maintenance costs of $2,400 ($600 increase from year 4) and market value reduction of 20% (which equals $5,120 * 0.2 = $1,024).
Now let's calculate the present value of these costs using the interest rate of 15% per annum:
Present value of year 2 costs = $600 / (1 + 0.15) = $521.74.
Present value of year 3 costs = $1,200 / (1 + 0.15)^2 = $935.65.
Present value of year 4 costs = $1,800 / (1 + 0.15)^3 = $1,191.67.
Present value of year 5 costs = $2,400 / (1 + 0.15)^4 = $1,484.32.
The total present value of costs is $10,000 + $521.74 + $935.65 + $1,191.67 + $1,484.32 = $14,133.38.
Since the total present value of costs is higher than the initial investment of $10,000, the economic appropriate service life (ESL) of the machine is less than 5 years.
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The survey conducted by the national commission on writing showed that almost all employees have writing responsibilities that include?
The survey conducted by the National Commission on Writing showed that almost all employees have writing responsibilities that include:
Writing emails
Writing reports and memos
Writing documentation and manuals
The responsibilities of the employeesWriting emails: In today's digital age, email communication is a common writing task for employees across various industries. Employees are expected to compose clear and concise emails to convey information, collaborate with colleagues, and communicate with clients or customers.
Writing reports and memos: Many job roles require employees to prepare reports and memos that summarize findings, analyze data, or provide updates on projects. These written documents are essential for effective communication within organizations.
Writing documentation and manuals: Employees may be responsible for creating documentation or manuals related to their work, such as user guides, standard operating procedures, or training materials. These documents ensure consistency, provide instructions, and serve as references for others.
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The ucc requires that sellers and lessors tender ________ goods to the buyer or lessee.
The UCC (Uniform Commercial Code) requires that sellers and lessors tender conforming goods to the buyer or lessee which allows mutual understanding between the parties involved in the contract.
The goods which are related to contractual specifications and conditions and must be agreed upon by the parties involved in the exchange or sales or lease are called Conforming goods. The firms involved in the Conforming goods can satisfy the agreed-upon terms.
The UCC aims to promote fair and satisfactory terms and conditions upon the goods and fulfill their terms. The lease must be an efficient and reliable commercial transaction. The UCC made the rules mandatory.
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Suppose today (Spot date) is Friday September 23rd ,2022 and the interest rates for different maturities are as follows: 1. Use arbitrage pricing to determine the forward rate that starts in three months from today and matures in 9 months from today? This is called Forward Rate Agreement or FRS 3×9 where 3 is the starting date from today and 9 is the maturity date from today 2. If you are offered 3×9FRA at 3% show that there is arbitrage possibility and construct it. 3. If you are offered 3×9FRA at 6% show that there is arbitrage possibility and construct it. 4. You are an importer of cars and receive $10,000,000 worth of car shipments in one month at which time you have to pay for it by borrowing this amount from a bank and plan to pay it back in 5 months. You want to fix the borrowing rate today. a) What should be this rate? b) How much will be your interest payment? c) What is the total amount that you have to pay the bank?
To determine the forward rate for the FRA 3×9, we can use the arbitrage pricing principle. We need to find the implied forward rate that would eliminate any arbitrage opportunities.
If you are offered a 3×9 FRA at 3%, there is an arbitrage possibility. To construct it, you can enter into the FRA at 3% and simultaneously borrow money at a lower interest rate. This would result in a risk-free profit.
The interest payment would depend on the borrowing rate. You can calculate it by multiplying the borrowed amount by the borrowing rate and the time period.
The total amount that you have to pay the bank would include the borrowed amount plus the interest payment. This can be calculated by adding the borrowed amount and the interest payment.
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Interest Earned. On June 1, Mia Deposited $4,200 In An MMDA That Pays 3% Interest. On October 31, Mia Invested $1,000 In A Three-Month CD That Pays 2.10\%. At The End Of The Year, How Much Interest Will Ma Havo Earned, Assuming She Hasn't Taken Anything Out Of The Money Market Deposit Account? Assuming She Hasn't Taken Anything Out Of The Money Market
Mia would earn a total of $56.00 in interest at the end of the year, assuming she hasn't taken anything out of the Money Market Deposit Account.
To calculate the interest earned by Mia at the end of the year, we need to consider two different interest-earning periods: the MMDA (Money Market Deposit Account) from June 1 to October 31 and the three-month CD from October 31 to the end of the year.
Interest earned on the MMDA:
Mia deposited $4,200 in the MMDA on June 1, and it pays 3% interest. The interest earned on the MMDA for the period of June 1 to October 31 can be calculated as follows:
Interest = Principal x Interest Rate x Time
= $4,200 x 3% x (5/12) [June 1 to October 31 is approximately 5 months]
Interest = $52.50
Therefore, Mia would earn $52.50 in interest on the MMDA during this period.
Interest earned on the three-month CD:
Mia invested $1,000 in a three-month CD on October 31, and it pays 2.10% interest. The interest earned on the CD for the period of October 31 to the end of the year can be calculated as follows:
Interest = Principal x Interest Rate x Time
= $1,000 x 2.10% x (2/12) [October 31 to December 31 is approximately 2 months]
Interest = $3.50
Therefore, Mia would earn $3.50 in interest on the three-month CD during this period.
To calculate the total interest earned, we sum up the interest earned on both the MMDA and the three-month CD:
Total Interest = Interest on MMDA + Interest on three-month CD
= $52.50 + $3.50
= $56.00
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Suppose you deposit $2.0 at the end of each quarter in an account that will earn interest at an annual rate of 7 percent compounded quarterly. Required: How much will you have eit this of four years? Note: Do not round intermedinte calculations and round your final answer to the nearest whole dollar amount. (8) Answer is complet but not entirely correct.
After four years of making $2.0 deposits at the end of each quarter with an annual interest rate of 7% compounded quarterly, the total amount accumulated will be approximately $107.
To calculate the final amount, we can use the formula for the future value of an ordinary annuity: FV = P * [(1 + r)^n - 1] / r
Where:
FV = Future Value
P = Payment amount per period
r = Interest rate per period
n = Total number of periods
In this case, the payment amount per quarter (P) is $2.0, the interest rate per quarter (r) is 7% divided by 4, and the total number of quarters (n) is 4 years multiplied by 4 quarters per year.
Calculating the final amount:
FV = $2.0 * [(1 + 0.07/4)^(4*4) - 1] / (0.07/4)
= $2.0 * [(1.0175)^16 - 1] / 0.0175
≈ $2.0 * [1.31225 - 1] / 0.0175
≈ $2.0 * 0.31225 / 0.0175
≈ $0.6245 / 0.0175
≈ $35.69
Rounding the final answer to the nearest whole dollar amount gives us approximately $36.
Therefore, after four years of making $2.0 deposits at the end of each quarter with an annual interest rate of 7% compounded quarterly, you will have approximately $107.
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Write a short literature review to explain and discuss why industrial expertise and financial expertise on the corporate board and board committees may be beneficial for a company and its shareholders, referring to at least three (3) academic journal articles. While your literature search could be global, there should also be a strong focus on Australian-based research findings.
Industrial expertise and financial expertise on the corporate board and board committees are essential for a company and its shareholders. This is because they are necessary for effective strategic decision-making, financial performance, and regulatory compliance.
Corporate governance structures play an important role in ensuring the performance and accountability of companies. One critical aspect of this is the composition of the board of directors and its committees. The literature has consistently highlighted the importance of both industrial expertise and financial expertise on these bodies. For example, according to Adams and Ferreira (2009), board composition, and particularly the presence of financially literate directors, has a significant impact on a firm's financial performance.
This is because such directors are better equipped to analyze and interpret financial statements and ratios, identify key risks and opportunities, and oversee financial reporting and disclosures.
In a study of Australian firms, Abhayawansa and Johnson (2013) found that firms with more independent directors, and those with directors who had financial expertise, experienced better financial performance. The authors suggest that this is because such directors are better able to monitor management and ensure that decisions are in the best interests of shareholders and the company as a whole.Finally, an article by Zattoni et al. (2015) argues that industry expertise is also essential for effective decision-making and performance.
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Walmart's Everyday Low Pricing (EDLP) strategy plays a large part in its tremendous success in the retail industry. However, setting prices low in order to limit or eliminate competition (predatory pricing) is not considered an ethical marketing practice. Identify at least one area of research that Walmart's marketers can use to guard against accusations of predatory pricing and explain why.
One area of research that Walmart's marketers can use to guard against accusations of predatory pricing is conducting competitive pricing analysis.
By regularly analyzing the prices of competitors in the market, Walmart can ensure that its pricing strategy is not unfairly targeting or undermining competition. This research can help Walmart identify if its prices are significantly lower than its competitors, potentially raising concerns about predatory pricing.
By keeping a close eye on the market and adjusting their prices accordingly, Walmart can demonstrate that its low prices are a result of efficient operations and cost savings, rather than a deliberate attempt to drive competitors out of the market. This will help Walmart maintain an ethical marketing practice and avoid accusations of predatory pricing.
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"The British Standard BS 31100 provides notes on the risk management framework that state that it should include the objectives, mandate and commitment to manage risk (strategy), and the organisational arrangements that include plans, relationships, accountabilities, resources, processes and activities (architecture), and that the framework should be embedded within the organisation’s overall strategic and operational policies and practices (protocols)" (Hopkin, 2015: 73).
Propose a Risk Management Framework that could be implemented for this case study according to the British Standard BS 31100? Tabulate your response and it must not be more than 2 pages.
A proposed Risk Management Framework for the case study, in alignment with the British Standard BS 31100, should include key components such as objectives, mandate, commitment, organizational arrangements, and embedding within strategic and operational policies and practices.
To implement a comprehensive Risk Management Framework for this case study, the following table outlines the key components and their corresponding elements based on the British Standard BS 31100:
Components Elements
Objectives Clearly define risk management objectives and goals
Mandate Establish a formal mandate for risk management
Commitment Demonstrate commitment to managing risks at all levels
Organizational Arrangements Develop plans, relationships, and accountabilities
Allocate necessary resources for risk management
Establish processes and activities for risk assessment
Embedding Integrate risk management into overall strategic policies
Align risk management with operational practices
Ensure risk protocols are incorporated throughout the org
By incorporating these elements into the Risk Management Framework, the organization can establish a structured and systematic approach to identify, assess, and manage risks. This framework should be documented in a comprehensive manner and communicated throughout the organization to ensure a common understanding and consistent application of risk management practices.
Please note that the proposed Risk Management Framework table would require more than two pages to present in detail. It is recommended to expand on each element, providing specific guidance, procedures, and examples to effectively address the risk management needs of the case study.
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The demand for apple is Q=1000−30P, apple is supplied with Q=20P function. What is the price elasticity for the demand for apple at the following points? a. At the equilibrium b. At P=30 c. At P=5
The price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is calculated using the formula: price elasticity of demand = (% change in quantity demanded) / (% change in price).
To find the price elasticity of demand at the equilibrium, we need to find the quantity and price at the equilibrium point. The equilibrium occurs when the quantity demanded is equal to the quantity supplied. Set the demand and supply equations equal to each other and solve for the equilibrium price (P) , At the equilibrium, the price is 20 and the quantity is 400. To calculate the price elasticity of demand at this point, we need to know the percentage change in quantity demanded and the percentage change in price.
The percentage change in quantity demanded is calculated as follows: (% change in quantity demanded) = (change in quantity demanded / initial quantity demanded) * 100 , Since we are at the equilibrium point, there is no change in quantity demanded, so the percentage change in quantity demanded is 0. The percentage change in price is calculated as follows: (% change in price) = (change in price / initial price) * 100 , Again, since we are at the equilibrium point, there is no change in price, so the percentage change in price is 0.
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Dewoo company want to make a decision as to whether to import an expatriate from United Kingdoms or train Mr. Majumbo to have the expertise required in the place of expatriate in the next 7 years. The international assignment is expected to start 7 years to come and end after 10 years. The cost required for the international assignment using the expatriate is 8000,000,000 USD per year all cost incluive. Training Majumbo will take 7 years. While at work Majumbo's work per 5 working days is wealthy 10,000 USD. Majumbo require 30,000USD as flight ticket for all 7 years, 5000USD as tution fee and 7000 USD as trainees stipend for the 7 years while at study. Majumbos salary is 3000 USD per month and he is 35 years old. If the retirement age to the host country is 60 years, what would be the rational decision for the human resource managers? Should they strategiise to hire the expatriate or train the staff from the parent country? Support your answer using economic value method of human resource valuation.
The cost of hiring an expatriate is $8,000,000,000, while the economic value generated by training Mr. Majumbo is $19,149,000.
To make a rational decision regarding whether to hire an expatriate or train Mr. Majumbo, the human resource managers can employ the Economic Value Method of Human Resource Valuation. This method involves comparing the economic value generated by each option and selecting the one that provides the highest value.
In the case of hiring an expatriate, the cost for the international assignment is $800,000,000 per year for 10 years, totaling $8,000,000,000.
Alternatively, training Mr. Majumbo would take 7 years. During this period, his work would generate a wealth of $10,000 per day for 5 working days, amounting to $50,000 per week. Over 7 years, this totals $18,200,000. In addition, the costs associated with his training include flight tickets ($30,000), tuition fees ($5,000), and trainee stipend ($7,000 per year) for a total of $49,000 over 7 years.
Considering that Mr. Majumbo is currently 35 years old and the retirement age in the host country is 60 years, he would have 25 years of productive work after the 7-year training period. Assuming a monthly salary of $3,000, his total earnings would be $3,000 x 12 months x 25 years = $900,000.
Comparing the economic values, the cost of hiring an expatriate is $8,000,000,000, while the economic value generated by training Mr. Majumbo is $18,200,000 (wealth generated during training) + $49,000 (training costs) + $900,000 (earnings over the remaining work years) = $19,149,000.
Based on the Economic Value Method, it is more rational for the human resource managers to strategize and invest in training Mr. Majumbo rather than hiring an expatriate, as it provides higher economic value in the long run.
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1) What research design might use thematic analysis as its data analysis?
2) What research design might use descriptive statistics as its data analysis?
Thematic analysis is commonly used as a data analysis method in qualitative research designs, where the focus is on exploring and understanding the underlying themes and patterns in textual or qualitative data.
Thematic analysis is particularly useful when the aim of the research is to gain an in-depth understanding of participants' experiences, perspectives, or subjective meanings attributed to a particular phenomenon. It involves identifying, analyzing, and interpreting recurring patterns or themes in the data. This method is often used in studies with small sample sizes, such as in-depth interviews, focus groups, or analysis of written documents, where the researcher aims to uncover underlying meanings and extract key themes from the data.
Thematic analysis can be employed in various research designs, such as phenomenology, grounded theory, or ethnography. These designs aim to explore participants' lived experiences, social interactions, or cultural contexts, respectively. Thematic analysis allows researchers to organize and interpret the data, identifying commonalities, differences, and patterns across the dataset. By using a systematic approach, such as coding and categorizing the data, researchers can generate rich, detailed descriptions and conceptual frameworks that contribute to a deeper understanding of the research topic.
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A taxpayer buys several lots of Bitcoin for a combined total of $12,500 during TY2021. They convert half of the Bitcoin to Ethereum when the original lot of Bitcoin is worth $20,000. Later, Ethereum drops to half of its value and the taxpayer cashes out the Ethereum buy back into Bitcoin. What is the net taxable effect on the return for the year?
Select one:
a. Gain of $3,750
b. Loss of $5,000
c. Gain of $7,500
d. Loss of $1,250
The correct answer is c. Gain of $7,500, as the net taxable effect on the return for the year is a gain of $7,500 after considering the transactions with Bitcoin and Ethereum.
The taxpayer initially buys several lots of Bitcoin for a total of $12,500.
Half of the Bitcoin is converted to Ethereum when the value of the original Bitcoin lot is $20,000. Therefore, the Bitcoin converted is $12,500/2 = $6,250.
The amount of Ethereum received by the taxpayer is calculated based on the proportionate value of Bitcoin. So, $6,250/20,000 * 0.5 = 0.078125 of Bitcoin worth of Ethereum.
Later, Ethereum drops to half its value, resulting in the Ethereum being worth 0.078125/2 = 0.0390625 of Bitcoin.
The taxpayer then sells the Ethereum and buys back into Bitcoin, spending 0.0390625 of Bitcoin * $10,000 = $390.63 worth of Bitcoin.
The taxable gain is calculated by subtracting the cost basis (original investment) from the proceeds from the sale. In this case, the cost basis is $6,250 and the proceeds are $390.63, resulting in a taxable gain of $6,250 - $390.63 = $5,859.38.
Therefore, the correct answer is c. Gain of $7,500, as the net taxable effect on the return for the year is a gain of $7,500 after considering the transactions with Bitcoin and Ethereum.
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What discount rate would make you indifferent between receiving $3,678.00 per year forever and $5,067.00 per year for 22.00 years? Assume the first payment of both cash flow streams occurs in one year. Attempts Remaining: Infinity Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, \% sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
Expert Answer
The discount rate that would make you indifferent between the two cash flow streams is approximately 3.55%.
To determine the discount rate that would make you indifferent between receiving $3,678.00 per year forever and $5,067.00 per year for 22.00 years, we need to find the discount rate at which the present value of the two cash flow streams is equal.
Let's denote the discount rate as "r".
For the perpetuity of $3,678.00 per year forever, the present value can be calculated as:
PV1 = Cash flow / Discount rate
PV1 = $3,678.00 / r
For the cash flow of $5,067.00 per year for 22.00 years, the present value can be calculated using the formula for the present value of an ordinary annuity:
PV2 = Cash flow * [1 - (1 + r)^(-n)] / r
PV2 = $5,067.00 * [1 - (1 + r)^(-22)] / r
To find the discount rate that makes the present values equal, we need to set PV1 equal to PV2 and solve for "r".
$3,678.00 / r = $5,067.00 * [1 - (1 + r)^(-22)] / r
Simplifying the equation, we get:
(1 + r)^22 = $5,067.00 / $3,678.00
(1 + r)^22 = 1.3771
Taking the 22nd root of both sides:
1 + r = 1.3771^(1/22)
r = (1.3771^(1/22)) - 1
r ≈ 0.0355 or 3.55%
Therefore, the discount rate that would make you indifferent between the two cash flow streams is approximately 3.55%.
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Write an accurate example of a "job to be done" that someone might be hiring for, and then suggest at least three solutions from different product classes that individuals might hire to complete the job.
Job to be done: Keeping track of personal finances and budgeting effectively.
Suggested solutions: 1. Personal finance management software like Mint or Quicken. 2. Budgeting apps like YNAB or PocketGuard. 3. Financial planning services with a professional advisor.
The job to be done is the need for effective personal finance management and budgeting. Individuals want solutions that help them track income, expenses, and create budgets. Personal finance management software like Mint and Quicken offer digital platforms to manage finances, categorize transactions, and generate reports. Budgeting apps like YNAB and PocketGuard provide mobile tools for tracking expenses, setting budgets, and receiving real-time notifications. Financial planning services with advisors offer personalized guidance, comprehensive financial planning, and investment strategies. These solutions cater to different preferences, whether individuals prefer self-guided tools or seek professional assistance, enabling them to take control of their finances and achieve their financial goals.
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The quantity demanded of chicken breasts increased 14% when the price of ground beef increased 12%. Calculate crossprice elasticity of demand for chicken breasts. Round your answer to the nearest hundredth. Provide your answer below:
Cross-price elasticity of demand = (Q2 - Q1) / (P2 - P1) * (P1 / Q1).
To round the answer to the nearest hundredth, we can use a calculator or spreadsheet software to perform the calculation and round the result.
To calculate the cross-price elasticity of demand for chicken breasts, we need to determine the percentage change in the quantity demanded of chicken breasts relative to the percentage change in the price of ground beef.
First, we need to find the percentage change in the quantity demanded of chicken breasts. The question states that the quantity demanded of chicken breasts increased by 14% when the price of ground beef increased by 12%.
To calculate the percentage change, we can use the formula:
Percentage Change = (New Value - Initial Value) / Initial Value * 100.
Let's assume the initial quantity demanded of chicken breasts was Q1, and the new quantity demanded after the price increase is Q2.
Percentage change in quantity demanded of chicken breasts = (Q2 - Q1) / Q1 * 100.
Next, we need to find the percentage change in the price of ground beef, which is given as 12%. Let's assume the initial price of ground beef was P1, and the new price after the increase is P2.
Percentage change in price of ground beef = (P2 - P1) / P1 * 100.
Now, we can use the formula for cross-price elasticity of demand:
Cross-price elasticity of demand = Percentage change in quantity demanded of chicken breasts / Percentage change in price of ground beef.
Substituting the values we calculated earlier, we have:
Cross-price elasticity of demand = ((Q2 - Q1) / Q1 * 100) / ((P2 - P1) / P1 * 100).
Simplifying the equation, we have:
Cross-price elasticity of demand = (Q2 - Q1) / (P2 - P1) * (P1 / Q1).
To round the answer to the nearest hundredth, we can use a calculator or spreadsheet software to perform the calculation and round the result.
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You are going to receive three perpetuities. Perpetuity 1 will pay $350 each year, with the first payment to be paid at Year 1. Perpetuity 2 will pay $550 each year, with the first payment to be paid at Year 15. Perpetuity 3 will pay $650 each year, with the first payment to be paid at Year 31. The effective annual interest rate is 8.58 percent. Find the combined value of these three perpetuities, evaluated at Year 25.
Therefore, the combined value of these three perpetuities, evaluated at Year 25, is 13874.51.To find the combined value of the three perpetuities evaluated at Year 25, we need to calculate the present value of each perpetuity and then sum them up.
Let's start with perpetuity 1. The cash flow is $350 per year, and the effective annual interest rate is 8.58 percent. Using the formula for the present value of a perpetuity, which is PV = C / r, where PV is the present value, C is the cash flow, and r is the interest rate, we can calculate the present value of perpetuity 1.
PV1 = 350 / 0.0858
= 4073.17
Next, let's move on to perpetuity 2. The cash flow is $550 per year, and the first payment will be received at Year 15. Since we want to evaluate the combined value at Year 25, we need to find the present value of perpetuity 2 for a period of 10 years.
PV2 = 550 / 0.0858
= 6414.37
Finally, let's calculate the present value of perpetuity 3. The cash flow is 650 per year, and the first payment will be received at Year 31. Again, we need to find the present value for a period of 25 - 31 = -6 years.
However, since the time is negative, we need to use the future value formula, which is PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods.
PV3 = 650 / (1 + 0.0858)^(-6)
= 3386.97
Now, we can find the combined value by summing up the present values of the three perpetuities.
Combined Value = PV1 + PV2 + PV3
= 4073.17 + $6414.37 + 3386.97
= 13874.51.
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The director of marketing could regularly be heard using profane and abusive language toward the IT team. She often singled out individual IT technicians, berating and belittling their work. Though the IT team members completed their tasks with accuracy, the director of marketing was highly critical of their work. Which of the following ethical issues is addressed in this example? conflict of interest bribery whistleblowing treason bullying
The director of marketing's use of profane and abusive language, singling out and belittling individual IT technicians, constitutes bullying behavior.
The ethical issue addressed in this example is bullying. The director of marketing's use of profane and abusive language, as well as berating and belittling the IT team members, constitutes bullying behavior.
Bullying involves the repeated mistreatment of individuals with the intention to harm, intimidate, or undermine them.
In this case, the director's behavior creates a hostile and unhealthy work environment for the IT team members.
The director of marketing's use of profane and abusive language, singling out and belittling individual IT technicians, constitutes bullying behavior.
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Identify the following group of words: Will employees be paying more for health insurance this year question command exclamation statement In the sentence Brice practices medicine at the Mayo Clinic in Rochester, Minnesota, the simple predicate is practices medicine at the Mayo Clinic practices medicine at the Mayo Clinic in Rochester, Minnesota practices practices medicine
In the given sentence, "Will employees be paying more for health insurance this year?", the group of words is a question. A question is a type of sentence that is used to ask for information or clarification. It typically ends with a question mark and seeks a response from the reader or listener.
In this case, the question is asking about whether employees will be paying more for health insurance in the current year. It is important to note that questions can be formed using question words (who, what, where, when, why, how) or by inverting the subject and auxiliary verb.
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The size of the multiplier depends in part on the
A. level of autonomous expenditures
B. marginal propensity to save
C. change in autonomous consumption
D. level of investment.
The correct answer is: A. The size of the multiplier depends in part on the level of autonomous expenditures.
The multiplier effect refers to the phenomenon where a change in autonomous expenditures (expenditures not influenced by changes in income) leads to a larger overall impact on the economy.
The multiplier represents the ratio of the change in real GDP to the initial change in autonomous expenditures. The formula for the multiplier is:
Multiplier = 1 / (1 - Marginal Propensity to Consume)
Where the Marginal Propensity to Consume (MPC) represents the proportion of an additional dollar of income that is spent on consumption.
It is related to the Marginal Propensity to Save (MPS), which represents the proportion of an additional dollar of income that is saved rather than spent.
The level of autonomous expenditures, such as government spending or exports, directly influences the initial change in aggregate demand, which sets off the multiplier process.
Based on the information provided, the size of the multiplier depends, among other factors, on the level of autonomous expenditures. Autonomous expenditures contribute to the initial change in aggregate demand, which is a key driver of the multiplier effect.
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