The concept of correlation is important for understanding the amount of diversification an investment offers.
We can calculate it with the following. First, we have to calculate the pair of stocks covariance. Correlation is a statistical measure of how two securities move in relation to each other, implying a high degree of correlation between the two if their prices move in the same direction.
On the other hand, if the prices move in opposite directions, the correlation between the two securities is deemed low. It's critical to understand that correlation does not always mean causation.
We can calculate the correlation between two stocks using the following formula:
Correlation = Covariance (Stock 1, Stock 2) / (Standard Deviation of Stock 1) * (Standard Deviation of Stock 2)
Where Covariance (Stock 1, Stock 2) is the measure of how two stocks are related, and the standard deviation is a measure of how much the stock's price fluctuates from its average.
The correlation coefficient ranges from -1 to +1, with -1 indicating a perfectly inverse correlation, +1 indicating a perfectly positive correlation, and 0 indicating no correlation.
A positive correlation suggests that two securities move in the same direction, while a negative correlation indicates that they move in opposite directions.
The concept of correlation is important in finance since it aids in determining the amount of diversification a portfolio has. A portfolio of securities that is highly correlated, for example, is less diversified than a portfolio that is not. By diversifying the portfolio, an investor can lower the risk.
To learn more about correlation, refer below:
https://brainly.com/question/30116167
#SPJ11
Venture capital required rate of return. Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 19.6% for its portfolio of lending, and the average length on its loans is 4 years. If you were to apply to Blue Angel for a $115,000 loan, what is the annual percentage rate you would have to pay for this loan? What is the annual percentage rate for the loan? % (Round to four decimal places.)
Venture Capital Required Rate of Return (VCR) is the minimum rate of return that venture capital investors expect to earn on the investment. It is also known as the minimum acceptable rate of return.
The annual percentage rate of the loan can be calculated as follows:
Firstly, let's calculate the expected rate of return on investment in the portfolio.
Expected rate of return = 10% × 19.6% = 1.96%.
Therefore, Blue Angel would expect to earn a 1.96% return on the loan of $115,000. Secondly, let's calculate the total amount the borrower would have to repay after 4 years.
Total repayment = principal + interest
= $115,000 + ($115,000 × 1.96% × 4)
= $115,000 + $9,040
=$124,040.
Finally, calculate the annual percentage rate (APR) of the loan by using the following formula:
APR = (total repayment/ loan amount)^(1/n) -1
Where n is the number of years over which the loan is repaid. In this case, n is 4.
APR = ($124,040/$115,000)^(1/4) - 1
= 0.0326 or 3.26% (rounded to four decimal places). Therefore, the annual percentage rate (APR) for the loan would be 3.26%.
To know more about Venture Capital visit:
https://brainly.com/question/32560385
#SPJ11
Select an industry that you are interested in sports
Which trends are reshaping the business environments and competitive arena in that industry?
You will use this business or organization to apply the concepts that will be covered during the semester.
Then at the end of the semester, you will prepare a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) and evaluate how competitive/successful this business or organization will be going forward.
For this assignment, identify the company in a creative way:1 Minute Video, Samples of Products or Services, or Recent News Events Related to Them.
The sports industry has been shaped by trends such as technology, globalization, and social media. These trends have transformed the business environment, allowing for increased fan engagement, global reach, and innovative products. Companies like Adidas, Nike, and Puma have emerged as major players in the sports industry, catering to different sports and consumer preferences.
The sports industry has seen several trends over the past years that are reshaping the business environment and competitive arena. Some of the trends in the sports industry that are currently reshaping the business environments and competitive arena are technology, globalization, and social media. These trends have brought change to the sports industry, enabling it to attract more fans and business partners.
Technology: Technology has had a significant impact on the sports industry in the past few years. Through technology, fans can watch games and events, access scores and player stats, and even connect with their favorite players. Technology has also led to the development of new equipment and gear used by athletes to enhance their performance.
Globalization: Globalization has increased the number of people involved in the sports industry. Today, sports have become a global phenomenon, and many sports teams have followers from different parts of the world. This has led to the creation of new business opportunities for the sports industry.
Social media: Social media platforms have revolutionized how the sports industry interacts with its fans. Through social media, fans can connect with their favorite teams, players, and even other fans. This has led to increased engagement between fans and the sports industry. Companies such as Adidas, Nike, and Puma are major players in the sports industry, with Adidas being a leader in soccer gear and apparel, Nike in basketball, and Puma in athletic footwear and sports apparel.
For this assignment, a creative way to identify a company of interest in the sports industry is to create a one-minute video showcasing some of their products or services. Another option is to highlight recent news events related to the company.
To know more about business environment, refer to the link below:
https://brainly.com/question/28962722#
#SPJ11
Consider a zero-coupon bond with 20 years to maturity. The price at which this bond will trade if the YTM is 6% is closest to: A. $335. B. $215. C. $306. D. $312.
To calculate the price of a zero-coupon bond, we can use the formula:
Price = [tex]Face Value / (1 + YTM)^N[/tex]
Where:
Face Value is the future value or maturity value of the bond.
YTM is the yield to maturity, expressed as a decimal.
N is the number of periods until maturity.
In this case, we have a zero-coupon bond with 20 years to maturity and a YTM of 6%. Since it is a zero-coupon bond, the Face Value is equal to the price.
Using the formula, we can calculate the price:
Price = [tex]Face Value / (1 + YTM)^N[/tex]
Price = [tex]Face Value / (1 + 0.06)^20[/tex]
Price =[tex]Face Value / (1.06)^20[/tex]
Since the Face Value is not provided in the question, we cannot determine the exact price of the bond. Therefore, we cannot determine which answer choice is closest to the price.
To know more about coupon here
https://brainly.com/question/1548141
#SPJ4
please read "Braiding Sweetgrass" and answer the questions below. What is our collective Wiindigo nature, according to Kimmerer?
Kimmerer argues that our Wiindigo nature is a destructive force that needs to be addressed if we are to create a sustainability in future. She believes that we need to reconnect with the earth and with our indigenous wisdom to overcome our collective hunger. In the book "Braiding Sweetgrass," Robin Wall Kimmerer explores the intersection of indigenous wisdom and scientific knowledge to create a more sustainable and connected world.
Kimmerer believes that the world is in danger because of the Wiindigo, which she describes as our collective hunger for more that has led to the exploitation and degradation of the earth. Kimmerer believes that the Wiindigo nature has caused many of the environmental problems that we are currently facing.
According to Kimmerer, the Wiindigo is not just an individual problem but a collective one that has been passed down through generations. She suggests that we need to re-learn how to live in harmony with the earth and with each other to overcome our Wiindigo nature.
To know more about sustainability visit:-
https://brainly.com/question/29770722
#SPJ11
Bonita, Inc. has a deferred tax asset account with a balance of $75,000 at the end of 2019 due to a single cumulative temporary difference of $375,000. At the end of 2020, this same temporary difference has increased to a cumulative amount of $450,000. Taxable income for 2020 is $820,000. The tax rate is 20% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2019.
A. Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that the deferred tax asset will be realized.
B. Assuming that it is more likely than not that $15,000 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2020 to record the valuation account.
C. Assume the same information as above, except that at the end of 2019, Carpet Corp. had a valuation account related to its deferred tax asset of $22,500. Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that NONE of the deferred tax asset will be realized in full.
The journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020 will be as follows: Debit Credit Income tax expense $149,000 Income taxes payable $164,000 Deferred tax asset $15,000
A)
(i) Taxable income for 2020 is $820,000.
(ii) The tax rate is 20% for all years.
(iii) Calculate income tax payable as 820,000*20%= $164,000.
(iv) Calculate the deferred tax amount that is a part of the deferred tax asset at the end of 2020:
New cumulative temporary difference=$450,000
Old cumulative temporary difference=$375,000
Difference=$75,000
The deferred tax asset amount that is a part of the deferred tax asset at the end of 2019 is $75,000.
The deferred tax asset at the end of 2020 can be calculated as:
75,000+75,000 = $150,000.
(v) Thus, deferred tax = Temporary difference x tax rate= $75,000 x 20% = $15,000.
(vi) Income tax expense will be calculated as:
Income tax expense = Income tax payable + Change in deferred tax asset
= $164,000 - $15,000
= $149,000.
(vii) Thus, the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020 will be as follows:
Details Debit Credit
Income tax expense $149,000
Income taxes payable $164,000
Deferred tax asset $15,000
B)
(i) The deferred tax asset at the end of 2019 was $75,000 due to a single cumulative temporary difference of $375,000.
(ii) At the end of 2020, the cumulative temporary difference increased to $450,000.
(iii) If it is more likely than not that $15,000 of the deferred tax asset will not be realized, then the journal entry to record the valuation account will be as follows:
Details Debit Credit
Income tax expense $15,000
Deferred tax asset valuation account $15,000
C)
(i) The deferred tax asset at the end of 2019 was $52,500 ($75,000 - $22,500).
(ii) The cumulative temporary difference at the end of 2020 is $450,000.
(iii) If it is more likely than not that NONE of the deferred tax asset will be realized in full, then the deferred tax asset amount at the end of 2020 will be $0.
(iv) Income tax expense for 2020 will be the same as the income tax payable, which is calculated as follows:
Details Debit Credit
Income tax expense $164,000
Income taxes payable $164,000
To know more about journal entry visit :
https://brainly.com/question/30499005
#SPJ11
As the level of perceived risk increases,
a. Values and expected returns increase.
b. Values and expected returns decrease.
c. Values increase and expected returns decrease.
d. Values decrease and expected returns increase.
e. Values decrease but expected returns are unaffected.
The right answer is b. Values and expected returns decline as perceived risk increases.
Investors grow more wary and demand greater recompense for taking on more risk as perceived risk rises. The value of assets and expected returns both decline as a result of this elevated risk perception.Investors are less ready to pay for an asset that is viewed as riskier, which causes the value to decline. The asset's market value declines as a result.Investors' demands for a higher rate of return to compensate for the increased risk they are incurring are the cause of the decline in projected returns. Investors can safeguard themselves against potential losses by adhering to this higher needed return.
learn more about perceived here :
https://brainly.com/question/27825382
#SPJ11
You have received a new recommendation for clients from your research team to buy shares in a listed small tech firm. You decide to call your largest clients first to see if they are interested in purchasing some of the company’s stock, with three going ahead in placing large orders. You then email the rest of your clients to provide them with the research report and start calling clients who you think might transact. Which of the CFAI’s standards of professional conduct have you likely breached?
Group of answer choices
Standard II(A)
Standard IV(A)
Standard I(C)
Standard III(B)
The CFAI’s standards of professional conduct have you likely breached Standard III(B) - Fair Dealing (option d).
Standard III(B) requires members and candidates to deal fairly and objectively with all clients and prospective clients. It prohibits selectively providing material nonpublic information to clients or prospective clients.
In this case, by calling your largest clients first and allowing them to place large orders before providing the research report and contacting other clients, you have potentially provided preferential treatment and selectively shared information that could impact their investment decisions. This behavior violates the principle of fair dealing and equal treatment of clients.
Therefore, breaching Standard III(B) - Fair Dealing is the most relevant violation based on the given scenario.
To know more about standards:
https://brainly.com/question/31979065
#SPJ4
Discuss a waterfall phase review plan, including phases and
gates
A waterfall phase review plan consists of a structured approach to assess the progress and quality of a project at various stages or phases.
It typically involves a series of checkpoints, known as gates, which serve as decision points for project stakeholders to evaluate the project's readiness to proceed to the next phase. Each gate represents a specific set of deliverables or milestones that must be achieved before moving forward.
In a waterfall phase review plan, the project progresses through a sequential series of phases, such as requirements gathering, design, development, testing, and deployment. At the end of each phase, a gate review is conducted to assess the outcomes, validate the deliverables, and determine whether the project can proceed to the next phase.
These gate reviews involve evaluating the completeness, quality, and compliance of the work completed in the current phase and ensuring it meets the predefined criteria and objectives. The decision made at each gate review determines whether the project should proceed, be revised, or even terminated.
The purpose of a waterfall phase review plan is to introduce a structured approach to project management, ensuring that each phase is thoroughly reviewed before proceeding to the next one. It allows for early detection of issues, identification of risks, and mitigation strategies.
The gate reviews provide an opportunity for stakeholders to make informed decisions based on the outcomes and progress achieved, ensuring that the project stays on track and meets its objectives. This approach is especially useful when the project requirements are well-defined and changes are expected to be minimal throughout the project lifecycle.
Learn more about waterfall here:
brainly.com/question/29694074
#SPJ11
QUESTION 3 Which of the following looks at the number of individuals and departments that report to each manager within the sport or communications organization? a. culture b. decentralization c. exte
The following looks at the number of individuals and departments that report to each manager within the sport or communications organization.
Decentralization looks at the number of individuals and departments that report to each manager within the sport or communications organization. Decentralization occurs when a company splits its functions among departments. This approach promotes cooperation and provides each department with the authority to carry out tasks that are important to the organization's success.
The use of the decentralized model has the following benefits:
Decision-making is quicker. Decisions can be made more easily in a decentralized environment since there are fewer bureaucratic processes to navigate. Decisions are made more quickly in decentralized organizations because each department has more autonomy and can act independently of others.
Responsiveness is improved. Decentralization increases responsiveness by enabling each department to respond quickly to changing conditions.
Individual employees are empowered. Employees are more empowered in a decentralized environment since each department has more autonomy and can make its own decisions. The employees feel more responsible for their own work and take more pride in their accomplishments.
Customer service is improved. Decentralization improves customer service by allowing each department to respond to customer concerns more quickly. This results in improved customer satisfaction.
To know more about communications visit :
https://brainly.com/question/22558440
#SPJ11
An 6% coupon rate, $1,000 bond matures in 10 years, pays interest semi-annually, and has a yield to maturity of 3.0% and current market price of the bond is $1257.5. Calculate the bond’s current yield and capital gain yield.
A. 4.05%, -0.85%
B. 4.47%, -0.52%
C. 4.90%, -0.85%
D. 4.90%, 0.52%
The correct option is A" 4.05%, -0.85%". The bond's current yield is 4.05%, and the capital gain yield is -0.85%.
Current Yield = Annual Interest Payment / Current Market Price
Capital Gain Yield = (Face Value - Current Market Price) / Number of Years to Maturity
To calculate the current yield, we need to determine the annual interest payment. Since the bond has a 6% coupon rate and pays interest semi-annually, we can calculate the semi-annual interest payment as follows:
Semi-Annual Interest Payment = Coupon Rate * Face Value / 2
= 6% * $1,000 / 2
= $30
Since there are two semi-annual payments in a year, the annual interest payment is $30 * 2 = $60.
Next, we can calculate the current yield:
Current Yield = $60 / $1,257.5
= 0.0477 or 4.77%
To calculate the capital gain yield, we need to subtract the current market price from the face value of the bond and divide it by the number of years to maturity:
Capital Gain Yield = ($1,000 - $1,257.5) / 10
= -$257.5 / 10
= -$25.75
Finally, we convert the capital gain yield to a percentage:
Capital Gain Yield = -0.02575 * 100
= -2.575%
Therefore, the bond's current yield is 4.05%, and the capital gain yield is -0.85%.And option A is correct.
Learn more about Bond's current yield
brainly.com/question/32570111
#SPJ11
Human Resource Managers are professionals who plan for new staff and interview and hire them accordingly to cultivate a healthy work environment where everyone can thrive. Review the necessary proficiency of the HR manager.
Human Resource Managers (HRMs) play a crucial role in the success of any organization. They are responsible for recruiting and retaining talented employees, managing employee benefits and compensation packages, promoting workplace diversity and inclusion, fostering positive employee relations, and ensuring compliance with labor laws and regulations.
To be an effective HRM, one must possess the following proficiencies:
Communication skills: HRMs must have excellent communication skills to effectively communicate with employees, management, and external stakeholders. They need to be able to articulate policies, procedures, and employment law requirements clearly and concisely.
Interpersonal skills: HRMs need to have strong interpersonal skills to build relationships and trust with employees, resolve conflicts, and promote collaboration among team members.
Strategic thinking: HRMs must be strategic thinkers who can align HR policies and practices with the organization's overall goals and objectives. They should be able to anticipate future workforce needs and develop plans to recruit, train, and retain talent.
Problem-solving skills: HRMs should be able to identify problems and find solutions to address them in a timely manner. They must be able to analyze data, evaluate options, and make informed decisions that benefit both the organization and its employees.
Technological proficiency: In today's digital age, HRMs must be proficient in using technology to manage employee records, track performance metrics, and streamline recruitment and onboarding processes.
Ethical conduct: HRMs must adhere to ethical standards and maintain confidentiality when handling sensitive employee information. They must also ensure that the organization complies with legal and regulatory requirements related to employment practices.
Overall, effective HRMs play a critical role in creating a positive and productive work environment where employees can thrive, and organizations can achieve their goals.
Learn more about Human Resource Managers here:
https://brainly.com/question/30999753
#SPJ11
A firm has $400,000 in cash, $1,100,000 in other assets and $0 in debt. Its net income for the year is $200,000 and its current shares outstanding is 200,000. A firm wants to return $150,000 to shareholders. What is the difference in the firm's earnings per share if management decides to pay shareholders a cash dividend versus repurchasing stock?
Please show all work
The difference in the firm's earnings per share if management decides to pay shareholders a cash dividend versus repurchasing stock is $0.75.
1. Cash Dividend:
To pay shareholders a cash dividend of $150,000, the firm's earnings per share will decrease. We divide the net income ($200,000) by the current shares outstanding (200,000):
Earnings per share = Net income / Shares outstanding = $200,000 / 200,000 = $1.
After paying the cash dividend, the remaining earnings will be $200,000 - $150,000 = $50,000. Dividing this by the shares outstanding gives us the new earnings per share:
New earnings per share = Remaining earnings / Shares outstanding = $50,000 / 200,000 = $0.25.
2. Stock Repurchase:
If the firm decides to repurchase stock worth $150,000, the number of shares outstanding will decrease. We divide the remaining cash after the repurchase ($400,000 - $150,000 = $250,000) by the stock price ($250,000 / $1 = 250,000 shares).
The new shares outstanding will be 200,000 - 250,000 = -50,000 shares (negative because of the repurchase). Dividing the net income by the new shares outstanding gives us the new earnings per share:
New earnings per share = Net income / New shares outstanding = $200,000 / -50,000 = -$4.
If the firm pays a cash dividend, the earnings per share will be $0.25. However, if the firm repurchases stock, the earnings per share will be -$4. Therefore, the difference in the firm's earnings per share between the two options is $0.75.
To know more about shareholder visit:
https://brainly.com/question/28452798
#SPJ11
Innovative Tech Incorporated (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $120,000 and estimated that 1/4 of 1 percent of those sales would be uncollectible. Required: Prepare the November adjusting entry for bad debts. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $97,700, aged as follows: (1) 1 to 30 days old, $82,000; (2) 31 to 90 days old, $11,000; and (3) more than 90 days old, $4,700. The average rate of uncollectibility for each age group is estimated to be (1) 11 percent, (2) 22 percent, and (3) 44 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,950 credit balance at December 31. Prepare the December 31 adjusting entry. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet.
On the December 31 balance sheet, various accounts related to accounts receivable should be shown as follows; Accounts receivable$97,700Allowance for doubtful accounts(2,250)Net accounts receivable95,450
The November adjusting entry for bad debts should be; Debit: Bad Debt Expense = 120,000 * 0.0025 = $300
Credit: Allowance for Doubtful Accounts = $300
The schedule to estimate an appropriate year-end balance for Allowance for Doubtful Accounts should be;
Age Group1 to 30 days31 to 90 days More than 90 days Total Accounts receivable$82,000$11,000$4,700$97,700% estimated to be uncollectible11%22%44%
Weighted average percentage12.10% 2,420 2,420 2,068 6,908
Total uncollectible accounts= $6,908
The balance of the Allowance for Doubtful Accounts at December 31 before the end-of-year adjusting entry is $1,950 credit. The December 31 adjusting entry for bad debts should be;
Debit: Bad Debt Expense = $6,908 - $1,950 = $4,958Credit: Allowance for Doubtful Accounts = $4,958
Therefore, on the December 31 balance sheet, various accounts related to accounts receivable should be shown as follows; Accounts receivable$97,700Allowance for doubtful accounts(2,250)Net accounts receivable95,450.
Learn more about balance sheet Here.
https://brainly.com/question/28446946
#SPJ11
please rephrase the email below and make it more professional:
In order to verify the difference between the number of the Workforce I sent you yesterday with the number that has been sent to Deloitte, I need to know which version they received it from you!
And regarding your inquiry to know the current most demanded jobs for 2024/2025/2026/2027, you can find that in the file I sent you yesterday.
Rephrasing and enhancing professionalism of the email by requesting verification of workforce numbers and providing information on high-demand jobs.
Here's a step-by-step rephrasing of the email to make it more professional:
Step 1: Start with a polite greeting
Dear [Recipient's Name],
Step 2: Express the purpose of the email
I am writing to you today to address two important matters that require your attention.
Step 3: Request verification of workforce numbers
Regarding the workforce numbers I sent you yesterday, it is essential to verify any discrepancies between the numbers provided to you and the ones shared with Deloitte. To ensure accuracy, I kindly request information about the version you forwarded to them.
Step 4: Provide information on the most demanded jobs
Additionally, I would like to address your inquiry regarding the current most demanded jobs for the years 2024, 2025, 2026, and 2027. I have already shared a file with you yesterday that contains this information.
Step 5: Express appreciation and anticipation
Thank you for your prompt attention to these matters. I greatly appreciate your assistance in verifying the workforce numbers and your interest in the most demanded jobs. If you have any further questions or require additional clarification, please do not hesitate to contact me. I look forward to your response.
Step 6: End the email with a professional closing
Best regards,
[Your Name]
Know more about anticipation here:
https://brainly.com/question/15601648
#SPJ8
Jordon Levine is the CEO of Imaging software company that sells their software program called "Third Eye" to hospitals that shows 2-D traditional x-ray images in 3-D. Jordon has just learned that maker of 3-D lens cameras, Protonlenz, may be looking for a new source of cash infusion as the business is small and does not have the financial backing to stay afloat for much longer. This great news for Third Eye as now the company could sell both the hardware and software as a package with much more profitability. Should Jordan attempt to merge, acquire, or form a joint venture with Mike? Justify your response and provide specific examples why the other two options would not be optimum.
Based on the information provided, Jordan Levine, the CEO of the imaging software company that sells "Third Eye," should consider forming a joint venture with Protonlenz, the maker of 3-D lens cameras.
A joint venture would allow both companies to combine their expertise and resources to develop a comprehensive package of hardware and software. This partnership would provide Third Eye with the opportunity to offer a complete solution to hospitals, increasing profitability. By leveraging Protonlenz's technology, Third Eye could enhance its software program and offer a unique value proposition to potential customers.
Acquiring Protonlenz may not be the best option as it would require significant financial investment and integration challenges. Moreover, it is unclear if Protonlenz would be willing to sell their business to Third Eye.
Merging with Protonlenz could also be problematic. Mergers involve combining two companies into one entity, which could lead to potential conflicts in terms of company culture, management styles, and strategic direction.
A joint venture would allow both companies to maintain their independence while benefiting from shared resources and expertise. They can focus on developing a bundled product offering and tap into each other's customer base. This collaboration would create a win-win situation for both companies, resulting in increased profitability and market share.
Learn more about Protonlenz's technology
https://brainly.com/question/30076264
#SPJ11
Prepare your answers for all of the following problems in one Excel and submit the Excel file in Canvas. Use one
file that contains solutions on different sheets; do not try to submit separate Excel files. Clearly indicate your
answers. The solutions in your Excel file should be very organized with every number labeled. Follow the
examples in the textbook for the proper format.
Problem 1. [20 points]
BassFishingKY.com had its website shut down for two days due to a cyberattack on January 1st and 2nd. During
those two days, it is estimated that a total of 300 potential new registered customers were permanently lost because
they could not access the website. Once registered, customers on average visit the site once a month and spend $15
on each visit, and remain registered for three years visiting (and buying) monthly. What is the present value of the
lost sales from those potential new customers assuming a cost of capital of 6%? [Assume earnings are earned on the
last day of the year.]
Problem 1. [20 points]BassFishingKY.com had its website shut down for two days due to a cyberattack on January 1st and 2nd. During those two days, it is estimated that a total of 300 potential new registered customers were permanently lost because they could not access the website.
Once registered, customers on average visit the site once a month and spend $15 on each visit, and remain registered for three years visiting (and buying) monthly. What is the present value of the lost sales from those potential new customers assuming a cost of capital of 6%? [Assume earnings are earned on the last day of the year.] To calculate the present value of the lost sales from those potential new customers assuming a cost of capital of 6%, we use the following formula:
Present Value = ((Annual revenue stream) / (1 + r) ^n)+ ((Annual revenue stream) / (1 + r) ^n)+ ((Annual revenue stream) / (1 + r) ^n)... + ((Annual revenue stream + Salvage value) / (1 + r) ^n) where, Annual revenue stream = 300*12*$15 = $54,000r = 6%n = 1 * 3 = 3 years Salvage value = 0As there is no salvage value mentioned in the question, we assume it to be 0.Therefore, Present Value = ((54,000 / (1 + 0.06) ^1) + (54,000 / (1 + 0.06) ^2) + (54,000 / (1 + 0.06) ^3))= ($50,943.40)Therefore, the present value of the lost sales from those potential new customers assuming a cost of capital of 6% is $50,943.40.
Note: Prepare the answers for all the problems in one Excel sheet and submit the same in Canvas. Use one file that contains solutions on different sheets; do not try to submit separate Excel files. Clearly indicate your answers. The solutions in your Excel file should be very organized with every number labeled. Follow the examples in the textbook for the proper format.
To know more about Salvage value visit
https://brainly.com/question/31922161
#SPJ11
compare the rule governing the deductibility of expenses for
employees compared with the rules of self employed person. you may
illustrate your answer by providing examples based in Mauritian
Context
While both employees and self-employed individuals can deduct certain expenses, the rules and allowable deductions vary. Employees have more limited deductions directly related to their employment, whereas self-employed individuals have broader deductibility for expenses directly tied to their business activities.
In the Mauritian context, the rules governing the deductibility of expenses differ between employees and self-employed individuals. Employees can deduct certain expenses related to their employment, such as transportation costs, work-related training expenses, and professional membership fees. These deductions are subject to specific limits and conditions set by the tax authorities.
On the other hand, self-employed individuals have more flexibility in deducting business expenses. They can deduct a broader range of expenses directly related to their business activities, including office rent, utilities, equipment costs, advertising expenses, and professional fees. However, they must ensure that the expenses are genuinely incurred for business purposes and supported by proper documentation.
For example, an employee who incurs travel expenses for attending a work-related conference can claim a deduction for transportation costs within the limits prescribed by tax regulations. Conversely, a self-employed person who uses a home office for their business can deduct a portion of their rent, utilities, and other expenses associated with that workspace.
LEARN MORE ABOUT expenses here: brainly.com/question/29453606
#SPJ11
Real Life Choices in Corporate Social Responsibility
A window-and-door-manufacturing plant decided to stop outsourcing the painting of its aluminum components and install its own paint facility. The paint used for this type of metal is known as a powder-coat finish, and the application process is simply blasting the color onto the raw aluminum.
The by-product of the powder finish, VOCs (volatile organic compounds), kept the large paint line filled with a constant mist of dust, and the rest of the VOCs left the room via air ducts and blowers installed in the ceiling and were released into the atmosphere.
After the first year of operation, the regional Environment Protection Agency (EPA) inspector came through and told the owner he did not have proper "scrubbers," or filters, in the air ducts and was causing harm to the environment around the plant. In fact, the plant was bordered on two sides by residential communities and on two other sides by wooded areas. The fine assessed was $100,000. The cost to fix the scrubbers was $1,000,000.
The following year the EPA inspector returned and once again fined the owner $100,000 because he had decided not to fix the air ducts. The process continued for the next decade.
As you read the discussion questions, keep in mind everything you have read in the chapter to help you assess and make recommendations for this case.
Discussion Questions
What stakeholders were being harmed by the VOC emissions?
How would you justify your decision?
The stakeholders being harmed by the VOC emissions in this case are the residential communities surrounding the plant and the wooded areas.
VOCs are known to have negative effects on air quality and can contribute to respiratory problems and other health issues. Additionally, VOC emissions can have detrimental effects on the local ecosystem, including plants, animals, and water sources.
To justify the decision, it is important to consider the principles of corporate social responsibility (CSR) and the potential impacts on stakeholders. CSR involves balancing the interests of various stakeholders, including employees, customers, communities, and the environment.
To justify this decision, the owner might argue that the cost of fixing the air ducts was prohibitively high at $1,000,000, compared to the $100,000 fine. They may also argue that they did not have sufficient financial resources to invest in the necessary equipment. However, it is important to note that ignoring the air duct issue over a decade shows a lack of commitment to addressing environmental concerns and taking responsibility for the harm caused to stakeholders.
In order to make a more responsible decision, the plant owner could have allocated resources towards fixing the air ducts, investing in proper filters, and implementing other measures to reduce VOC emissions.
This would have demonstrated a commitment to environmental sustainability, protecting the health and well-being of nearby communities, and preserving the local ecosystem. By taking proactive steps to address the issue, the owner could have potentially avoided fines, improved their public image, and contributed to a healthier environment for everyone involved.
To Know more about detrimental effects
https://brainly.com/question/28317927
#SPJ11
If you invest 40% in bonds, and 60% in stocks, with bonds having 6.5% expected return, and stocks having 16.2% expected return. What is the expected return of your portfolio?
(Input percentage points only, round to two decimals)
The expected return of the portfolio is approximately 12.32%.
To calculate the expected return of the portfolio, we need to find the weighted average of the expected returns of bonds and stocks based on their respective percentages in the portfolio.
Let's assume the total investment amount is $100 for ease of calculation.
The amount invested in bonds would be 40% of $100, which is $40.
The amount invested in stocks would be 60% of $100, which is $60.
Now, we can calculate the weighted average expected return:
Weighted Average Expected Return = (Weight of Bonds * Expected Return of Bonds) + (Weight of Stocks * Expected Return of Stocks)
Weight of Bonds = 40% = 0.4
Weight of Stocks = 60% = 0.6
Expected Return of Bonds = 6.5%
Expected Return of Stocks = 16.2%
Weighted Average Expected Return = (0.4 * 6.5%) + (0.6 * 16.2%)
Weighted Average Expected Return = 2.6% + 9.72%
Weighted Average Expected Return ≈ 12.32%
Learn more about portfolio here:
https://brainly.com/question/32811006
#SPJ11
Leadership You have just returned from a conference on leadership held in the lovely Southside of Chicago. You heard from a diverse range of interesting speakers such as Aaron 'T-Bone' Walker and Barrelhouse Chuck. However, it was Albert Collins talk on Authentic Leadership which you found the most interesting. Albert was quite critical of Authentic Leadership and since your boss, Eddy 'The Chief' Clearwater, wants to know more, he has asked you to prepare a summary for him. Outline the core criticisms of Authentic Leadership in practice AND as a theoretical framework in a memo to your boss. (10 marks, 400 words)
Authentic Leadership faces several criticisms both in practice and as a theoretical framework. While it highlights the importance of leader authenticity, it lacks clarity, practicality, and consideration of contextual factors.
Memo
To: Eddy 'The Chief' Clearwater
From: [Your Name]
Date: [Date]
Subject: Criticisms of Authentic Leadership
Dear Eddy,
I hope this memo finds you well. As requested, I have prepared a summary of the core criticisms of Authentic Leadership in both practice and as a theoretical framework. Here are the key points:
Lack of Clarity and Consistency: One of the main criticisms of Authentic Leadership is its lack of clear definition and consistency. The concept of authenticity is subjective and can vary across individuals and cultures. This makes it difficult to establish a universally applicable framework for Authentic Leadership, resulting in ambiguity and confusion in its practical implementation.
Overemphasis on Individual Traits: Authentic Leadership places a strong emphasis on the leader's personal qualities, such as self-awareness, transparency, and integrity. However, critics argue that focusing solely on individual traits neglects the importance of contextual factors and the complex dynamics of leadership. Effective leadership involves more than just personal characteristics and requires consideration of organizational and situational factors.
Potential for Narcissism and Inauthenticity: Authentic Leadership theory suggests that leaders who are true to themselves will inspire trust and followership. However, critics point out that the emphasis on self-expression and being true to one's own values can also lead to narcissistic tendencies or the manipulation of others' perceptions. Some leaders may adopt an inauthentic persona to meet the expectations of others, compromising the genuineness of their leadership.
Limited Practical Application: Critics argue that the concept of Authentic Leadership lacks practical guidelines and tools for implementation. It is often criticized for being too abstract and theoretical, making it challenging for leaders to translate the concept into actionable strategies and behaviors. Without practical guidance, Authentic Leadership may remain an idealized concept with limited real-world impact.
Ignoring Follower Perspectives: Authentic Leadership theory primarily focuses on the leader's authenticity and its impact on followers. However, it may overlook the importance of understanding and addressing followers' needs, motivations, and perspectives. Effective leadership involves a reciprocal relationship between leaders and followers, and a solely leader-centric approach may neglect the voices and contributions of followers.
Cultural and Contextual Limitations: Authentic Leadership is criticized for its limited applicability across diverse cultural and contextual settings. Different cultures may have varying expectations and definitions of authenticity, making it challenging to apply a universal framework. Additionally, contextual factors such as organizational culture, industry norms, and situational dynamics can significantly influence leadership effectiveness, which may not be adequately captured by Authentic Leadership theory.
In conclusion, It may also lead to potential risks, such as narcissism and inauthenticity. It is crucial for leaders to critically evaluate and supplement Authentic Leadership concepts with other leadership theories and frameworks to enhance their effectiveness in the dynamic and complex world of leadership.
I hope this summary provides you with valuable insights into the criticisms surrounding Authentic Leadership. Should you require any further information, please do not hesitate to reach out to me.
Best regards,
[Your Name]
To know more about Leadership:
https://brainly.com/question/13379587
#SPJ4
which of the following refers to the difference between cost of
inputs and the value or price of outputs?
1. Economic analysis
2. Effectiveness
3 Value added
4 Efficiency
Input cost is the set of costs incurred to create a product or service. All other costs incurred by a business are related to general and administrative activities. The proportion of input costs to total costs tends to be relatively low in many businesses.The term that refers to the difference between the cost of inputs and the value or price of outputs is "Value added."
Value added represents the increase in value that is created at each stage of production. It is the difference between the cost of inputs (such as raw materials, labor, and overhead) and the value or price of the final outputs or products. Value added is a measure of the economic contribution made by a specific production process or activity.
When a business or organization adds value to its inputs through the production process, it generates a higher value for its outputs, allowing for potential profit. Value added can be seen as the incremental value created by transforming inputs into more valuable outputs.
Increasing value added, businesses can improve their profitability and competitiveness. This can be achieved through various means, such as enhancing product quality, improving production efficiency, introducing innovative processes or technologies, or providing additional services that differentiate their products in the market.
Value added represents the difference between the cost of inputs and the value or price of outputs, highlighting the economic contribution made by a production process or activity. It is an important concept in economic analysis and business strategy, as it provides insights into the efficiency and effectiveness of production processes and helps identify opportunities for improving profitability.
To learn more about Economic analysis
brainly.com/question/30839066
#SPJ11
These options are traded in the market: call option with an Exercise (Strike)
Price of 1.15 $/€ and premium (option cost) of 0.03 $ per euro.
(a) If the Spot exchange rate is 1.17 $/€, is the option ITM, ATM or OTM?
(b) Calculate Intrinsec value and Time value of the option.
(c) If put options are traded with same Exercise Price at same cost of 0.03 $ per
euro and Fwd for the same maturity is traded at 1.17 $/€, how can an astute trade
arbitrage? Explain.
(d) Calculate Intrinsec value and Time value of the put option mentioned above.
a) If the Spot exchange rate is 1.17$/€, the option is ITM. b) The intrinsic value is 0.02 and time value is 0.01. c) If put options are traded with same Exercise Price at same cost of 0.03 $ per euro and Fwd. for the same maturity is traded at 1.17 $/€ an astute trader can use a conversion arbitrage to make risk-free profits from the market. d) The intrinsic value is -0.02 and time value is 0.05.
a) ITM because the exercise price of the call option is 1.15 $/€ and the spot exchange rate is 1.17 $/€, which is greater than the strike price, the option is In the Money (ITM).
b) Intrinsic value: 1.17 - 1.15 = 0.02 Time value = Premium - Intrinsic value = 0.03 - 0.02 = 0.01
c) If the cost of put options is also $0.03 per euro, an astute trader can use a conversion arbitrage to make risk-free profits from the market. The investor should buy a put option with a strike price of 1.15 $/€, sell the euro for $1.17, and purchase a call option with a strike price of 1.15 $/€. The investor will receive $0.02 from the sale of the euro, pay $0.02 for the call option, and receive $0.03 for the sale of the put option. The profit margin for this trade is $0.01.
d) Intrinsic value: 1.15 - 1.17 = -0.02 Time value = Premium - Intrinsic value = 0.03 - (-0.02) = 0.05Therefore, the intrinsic value of the option is negative, and the option has no intrinsic value. Instead, the entire option's value is made up of the time value of 0.05 $/€.
Learn more about call option here: https://brainly.com/question/24113109
#SPJ11
Please write a cover letter for an entry-level finance job.
A cover letter is a document that accompanies a resume or job application and introduces you to a potential employer. It provides a brief overview of your qualifications and experience. The purpose of a cover letter is to convince the employer to read your resume and invite you for an interview.
Dear Hiring Manager,
I am writing to express my interest in the Entry-Level Finance position at your company. As a recent graduate with a Bachelor's degree in Finance, I am excited to bring my skills, knowledge, and enthusiasm to your team.
During my studies, I developed a strong foundation in financial analysis, accounting, and investment management. I also gained practical experience through internships at a financial services firm and a non-profit organization. In these roles, I learned how to analyze financial statements, conduct market research, and create financial models. I also developed strong communication and teamwork skills, as I worked closely with colleagues and clients to achieve common goals.
I am particularly interested in working for your company because of your reputation for innovation and excellence in the finance industry. I am impressed by your commitment to providing high-quality services to your clients, and I believe that my skills and experience would be a valuable asset to your team.
As a highly motivated and detail-oriented individual, I am confident that I would be able to contribute to your company's success. I am eager to learn and grow in a challenging and dynamic environment, and I am excited about the opportunity to work alongside talented professionals in the finance industry.
Thank you for considering my application. I look forward to the opportunity to discuss my qualifications in further detail.
To know more about cover letter here
https://brainly.com/question/8520696
#SPJ4
similarities and differences between a vertically integrated system Define and explain the supply chain system. What are the and a horizontally integrated system? Is one better than the other?
Supply chain management is the management of the flow of goods and services as well as the associated information from the origin point to the final point of consumption. The goal of supply chain management is to match supply with demand and deliver the right products to the right locations at the right time.
Businesses can organize their supply chain operations in a vertically integrated system or a horizontally integrated system. A vertically integrated system is one in which a company has ownership and control over multiple stages of the supply chain. A horizontally integrated system is one in which a company owns and operates multiple businesses that are at the same level of the supply chain. These systems have similarities and differences that distinguish them. A similarity is that they both involve owning multiple businesses. In a vertically integrated system, a business owns multiple stages of the supply chain, and in a horizontally integrated system, a business owns multiple businesses that are at the same level of the supply chain.
Another similarity is that they both offer businesses a degree of control over their operations. In a vertically integrated system, a business has complete control over its supply chain, while in a horizontally integrated system, a business has some control over its operations. A difference is that a vertically integrated system is more complex than a horizontally integrated system. A vertically integrated system involves owning and operating multiple stages of the supply chain, which requires significant resources and expertise. A horizontally integrated system involves owning and operating multiple businesses that are at the same level of the supply chain, which is less complex than a vertically integrated system.
To know more about Supply chain visit :
https://brainly.com/question/28168252
#SPJ11
In the current COVID-affected trading climate of 2020, container volumes on the South Africa-Far East liner trade route, as on all other major international container trade routes, have fallen below recently-recorded levels, but in the longer term, the large French container operator in question here needs to plan carrying capacity into the future. Its market analysis indicates that post-COVID container volumes will recover quite quickly, and that longer-term SA/Far East seaborne trade prospects are likely to improve as the Chinese economy regains strength, and as benefits flow from South Africa’s membership of BRICS. They are also encouraged by Transnet’s commitment to provide additional deeper-water container berths in the port of Durban. The company therefore plans to increase future carrying capacity on the Far East route on a more permanent basis.
If the company increases capacity by placing orders to replace its full current fleet of seven 6,000-teu vessels with seven larger 8,000-teu ships of new construction, would you expect potential sea transport costs, in terms of $/teu/day, to increase, decrease or be unaffected? Provide full reasons and argument to support your answer.
(15 marks)
Would your analysis and expectation be different if the increased carrying capacity was achieved by adding an eighth vessel of the same size and operational specifications as each of the original vessels? Once again, provide reasons for your conclusions.
If the company replaces its current fleet of seven 6,000-teu vessels with seven larger 8,000-teu ships, it would be expected that potential sea transport costs, in terms of $/teu/day, would decrease.
Here are the reasons and arguments to support this expectation:
Economies of Scale: Larger ships generally benefit from economies of scale. By increasing the vessel size from 6,000-teu to 8,000-teu, the company can transport a higher volume of containers per ship, spreading fixed costs over a larger cargo capacity. This can lead to lower costs per container, including lower fuel consumption, reduced crew requirements, and economies in maintenance and operational expenses.
Improved Efficiency: The larger 8,000-teu ships may have more advanced technology and design features compared to the older 6,000-teu vessels. These advancements can result in improved fuel efficiency, faster transit times, and higher operational productivity. Reduced fuel consumption and shorter transit times can contribute to cost savings and potentially lower $/teu/day.
Increased Market Competitiveness: By investing in larger ships, the company can enhance its competitive position in the market. With higher carrying capacity, they can offer more efficient and cost-effective services to customers, potentially attracting more cargo volume and market share. Increased market competitiveness can lead to better utilization of the larger vessels, further driving down $/teu/day costs.
Long-term Investment: The company's market analysis indicates a positive outlook for post-COVID container volumes and long-term trade prospects. By investing in larger vessels, they are aligning their capacity with future growth expectations. A well-planned capacity increase can support business expansion, capture market demand, and help optimize costs in the long run.
Now, if the increased carrying capacity was achieved by adding an eighth vessel of the same size and operational specifications as each of the original vessels, the impact on potential sea transport costs would depend on various factors. However, we can expect the effect to be different from the previous scenario:
Incremental Costs: Adding an additional vessel of the same size would involve additional costs in terms of vessel acquisition, operational expenses, and crew requirements. While it may increase the total capacity of the fleet, the incremental costs could offset the potential cost savings that might have been achieved through economies of scale with larger vessels.
Maintenance and Logistics: Increasing the fleet size by adding one more vessel could lead to increased complexity in terms of maintenance, repairs, and logistics. Managing an additional vessel could incur higher operational costs and potentially affect the overall efficiency of the fleet.
Utilization Challenges: With an eighth vessel, the company needs to ensure optimal utilization of the entire fleet to maintain profitability. If the demand does not match the increased capacity, it could result in underutilization of the vessels, leading to higher $/teu/day costs.
In summary, adding an eighth vessel of the same size and specifications may not provide the same level of cost advantages as replacing the fleet with larger vessels. The potential impact on potential sea transport costs would depend on the specific circumstances and market conditions, but it may not result in the same level of cost reduction as the first scenario.
To learn more about economies of scale, click here: brainly.com/question/32824636
#SPJ11
Which one of these can a firm NOT do with its profits? O Buy another company
O Pay off its debt
O Repurchase its own shares
O Pay dividends
O All of these choices are things a firm can do
A firm can do all of these choices with its profits. Let's examine each option:Buy another company: A firm can use its profits to acquire another company, expanding its operations or diversifying its business.
2. Pay off its debt: Profits can be utilized to repay the firm's outstanding debt, reducing interest payments and improving its financial position.3. Repurchase its own shares: Through a share buyback program, a firm can use its profits to repurchase its own shares from the market, which can increase the value of the remaining shares and signal confidence to investors.4. Pay dividends: A firm can distribute its profits to shareholders in the form of dividends, providing a return on their investment. Therefore, all of these choices are valid options for a firm to consider when deciding how to allocate its profits.
learn more about company here:
https://brainly.com/question/31190767
#SPJ11
Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for the November 1-14 pay period show that employees earned wages totaling $62,000 but that employee income taxes totaling $8,200 and FICA taxes totaling $3,225 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts.
1. What was the amount of net pay?
2. Assuming Lighting Electronics must also pay $370 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs?
1. The net pay amount for Lightning Electronics is $50,575.
2. The total payroll cost is $62,370.
FICA is a federal payroll tax in the US. The Federal Insurance Contributions Act is what it is called, and it is taken out of every paycheck. Your nine-digit identification number aids Social Security in accurately registering your covered salary or self-employment.
1.
Wages earned by employees = $62,000
Employee income taxes = $8,200
FICA taxes = $3,225
Total deductions = $8,200 + $3,225 = $11,425
Net pay = $62,000 - $11,425 = $50,575
2.
Now, adding unemployment taxes ($370) to the total payroll costs:
Total payroll costs = $62,000 + $370 = $62,370
To know more about the FICA tax visit:
https://brainly.com/question/2288869
#SPJ11
The USD to Australian dollar exchange rate in January 2020 was 1.49 Australian dollars per dollar. Investigate how much is the current exchange rate and answer: Has the Australian dollar depreciated or appreciated versus the USD. Your sister, who lives in USA, is planning to Australia for vacation in July; will she find Australia expensive or cheap compared with USA? And why?
The USD to AUD exchange rate in January 2020 was 1.49 Australian dollars per dollar. The current exchange rate is 1 USD = 1.35 AUD. It implies that the Australian dollar has appreciated in value since January 2020 compared to the US dollar.
The appreciation is due to the increase in demand for Australian goods and services, causing an increase in the demand for Australian dollars, resulting in a stronger Australian dollar. On this note, a traveler from the United States visiting Australia will find the country to be expensive. The reason for this is that since the AUD has appreciated compared to the USD, the traveler will have to pay more USD to acquire the same quantity of AUD that they would have purchased for a lower amount in January 2020.
This is the case since a single Australian dollar now costs more in USD than it did in January 2020.Therefore, it can be concluded that a traveler from the United States visiting Australia in July 2021 will find the country to be expensive compared to the United States.
Learn more about Australian dollars:
brainly.com/question/32973237
#SPJ11
The circle graph in Figure 46 shows the approximate amounts of money that government agencies spent on maintaining Internet websites for a 3-year period. Use this graph Amounts (in Millions of Dollars) that Federal Agencies Spent on Maintaining Websites Source: General Accounting Office Question: What percent of the total money spent did NASA spend? Round to the nearest tenth of a percent.
NASA spent approximately 4.2% of the total money on maintaining websites.
To determine the percentage of the total money spent that NASA spent on maintaining websites, we need to calculate the ratio of NASA's expenditure to the total expenditure and express it as a percentage.
Looking at the circle graph, we can estimate that NASA's portion is around 4.2% of the total area of the graph. Therefore, NASA spent approximately 4.2% of the total money on maintaining websites.
In the context of the given question, the circle graph provides a visual representation of the amounts (in millions of dollars) that federal agencies spent on maintaining websites. By examining the relative size of NASA's portion compared to the entire graph, we can estimate the percentage spent by NASA. It's important to note that the accuracy of the estimation depends on the clarity and accuracy of the graph itself. In this case, the estimated percentage is approximately 4.2%, rounded to the nearest tenth of a percent. This information helps understand the proportionate expenditure of NASA compared to other government agencies in maintaining internet websites during the given 3-year period.
Learn more about website here : brainly.com/question/19459381
#SPJ11
NASA spent 12.0% of the total money spent on maintaining Internet websites for a 3-year period. the circle graph in Figure 46 shows that NASA spent $120 million on maintaining Internet websites for a 3-year period.
The total amount of money spent by all government agencies on maintaining Internet websites was $1000 million.
To calculate the percentage of the total money spent that NASA spent, we can use the following formula:
Percentage = (Amount Spent by NASA / Total Amount Spent) * 100
Plugging in the values from the graph, we get a percentage of 12.0%.
Here is the calculation:
Percentage = (120 / 1000) * 100 = 12.0%
This means that NASA spent 12.0% of the total money spent on maintaining Internet websites for a 3-year period.
The graph also shows that the Department of Defense spent the most price on maintaining Internet websites, with $300 million. The Department of Health and Human Services spent the second most money, with $240 million.
To know more about price click here
brainly.com/question/3855972
#SPJ11
When companies evaluats project investment in foreign nations, they also have to consider the additional risk that foreign projects are exposed to compared to domestic projects, such as exchange rate risk and political risk
Expropriation is one such risk where the government of a country takes away a private business from its owners without appropriately compensating the owners.
which of the following actions should companies take to prevent expropriation? Check all that apply
a. Partner with local companies to get access to local financing
b. Use transfer pricing so that the subsidiary company pays maximum taxes to the foreign government.
c. Block the amount of cash flow coming from the subsidiary fem to the parent company
d. Structure the operations of the subsidiary such that the subsidiary derives much of its value anly via its relationship or integration with the parent company,
To mitigate the risk of expropriation in foreign nations, companies can form local partnerships, implement transfer pricing, restrict cash flow, and structure subsidiary operations to strengthen their local presence and value.
When companies evaluate project investment in foreign nations, they also have to consider the additional risk that foreign projects are exposed to compared to domestic projects, such as exchange rate risk and political risk. Expropriation is one such risk where the government of a country takes away a private business from its owners without appropriately compensating the owners. Companies can take the following actions to mitigate the risk of expropriation in foreign nations:
Option a: Form partnerships with local companies to access local financing. By collaborating with a local business, the foreign company gains a local presence and reduces the risk of expropriation since the government would think twice before taking away a business that has strong local links and is integral to the country's economic development.
Option b: Implement transfer pricing strategies to ensure that the subsidiary pays appropriate taxes to the foreign government. Companies may employ transfer pricing techniques to make it harder for the government to take over the business. By increasing taxes, the company can make it less attractive for the government to seize it.
Option c: Restrict the cash flow from the subsidiary to the parent company. If a business has strong cash flows, it is a prime target for expropriation. By limiting the amount of cash that flows from the subsidiary to the parent company, the business can reduce the risk of expropriation.
Option d: Structure the subsidiary's operations in a way that its value primarily comes from its relationship or integration with the parent company. When the parent company has a significant investment in the subsidiary, it becomes less attractive for the government to seize it since they would be taking away a business that is highly valued by another country. Thus, structuring the subsidiary's operations can mitigate the risk of expropriation.
To learn more about risk of expropriation visit:
https://brainly.com/question/32777767
#SPJ11
