The optimal order quantity is 300 gallons, and the appropriate Reorder Point (ROP) with a 2 percent acceptable risk of stockout is 77 gallons.
Quantity discount is a marketing strategy that allows customers to purchase more of a product at a lower cost per unit. In quantity discounts, discounts are offered when more units of the product are purchased at the same time. Here are the computations for the order quantity and Reorder Point (ROP) that is appropriate if the acceptable risk of a stockout is 2 percent:
Order Quantity:
Q = √((2DS)/H)
Where,
Q = order quantity
D = annual demand
S = ordering cost
H = annual holding cost
Substituting,
Q = √((2DS)/H) = √((2 * 4,500 * 20)/2) = 300
Hence, the optimal order quantity is 300.
Reorder Point (ROP):
ROP = d (L + lead time) + Zσ√(L+lead time)
Where,
ROP = Reorder Point
d = daily demand
L = lead time
Z = Z-value for the service level
σ = standard deviation
Substituting,
ROP = d (L + lead time) + Zσ√(L+lead time) =
12 * (2 + 1.96 * 2) + 2 * √(2 + 1.96 * 2) =
12 * 5.92 + 2 * √(6.84) =
71 + 5.88 =
76.88 gallons (Round off to 77 gallons)
Hence, the Reorder Point (ROP) that is appropriate if the acceptable risk of a stockout is 2 percent is 77 gallons.
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This question goes through an example of a model with a pure exchange economy. There are two countries, Home and Foreign, and two goods, Cloth (C) and Food (F). /In each country there is a single (representative) consumer who owns the aggregate endowments E=(EC,EF), and E∗=(EC∗,EF∗), respectively. These are given by: EE∗=(60,60)=(60,60). Let the preferences at Home be described by the following utility function: U(DC,DF)=31lnDC+32lnDF, while preferences in the Foreign country are given by U∗(DC,DF)=32lnDC+31lnDF, We start by looking at what happens when the countries are in autarky, i.e. when they are not allowed to trade with each other. As usual, let p≡pC/pF denote the price of Cloth in units of Food. 1. Consider the Home country first. [10] (a) Draw a graph with the endowment bundle, and then indicate what will be the equilibrium consumption point, denoted by (DCA,DFA), for Home in the autarky equilibrium. Make sure you label all axes and objects. (b) What is the equilibrium autarky price for the Home country? (c) What is the meaning of autarky relative price, given that Home is not allowed to trade with Foreign?
In the autarky equilibrium, the consumption point (DCA, DFA) for the Home country can be determined by plotting the endowment bundle on a graph and identifying the point where the consumer's indifference curve is tangent to the budget constraint.
a. To determine the equilibrium consumption point (DCA, DFA) for the Home country in autarky, we plot the endowment bundle (60, 60) on a graph with Cloth (C) on the x-axis and Food (F) on the y-axis. We then identify the point where the consumer's indifference curve, represented by the utility function U(DC, DF) = (1/3)ln(DC) + (2/3)ln(DF), is tangent to the budget constraint. This tangent point represents the equilibrium consumption bundle.
b. The equilibrium autarky price for the Home country is determined by the slope of the budget constraint. The budget constraint is given by pC * DC + pF * DF = pC * EC + pF * EF, where pC and pF represent the prices of Cloth and Food, respectively. By rearranging the equation, we can express the autarky price as p = pC / pF. This represents the relative price of Cloth in terms of Food in the Home country.
c. The autarky relative price indicates the ratio at which Cloth can be exchanged for Food within the Home country in the absence of trade with Foreign. Since there is no international trade, the Home country must rely solely on its own production and consumption. The autarky relative price reflects the opportunity cost of producing Cloth in terms of Food within the Home country. It signifies the trade-off between Cloth and Food production and consumption, and determines the relative value of Cloth compared to Food in the Home country's economy.
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Julia, who is not a real estate developer, subdivided a piece of real property that she had
owned for 12 years into 10 lots. All 10 lots were sold in 2021. Julia had a basis of
$3,000 in each lot and each was sold for $45,000. Selling expenses for each lot were
$1,000. Compute the amount and character of her gain assuming she qualifies under
§1237.
The amount of Julia's gain under §1237 is $410,000. Her character of gain is treated as ordinary income rather than capital gain because she does not qualify as a real estate developer.§1237 is the law that addresses the capital gains and losses arising from the sale of real estate owned by non-developers.
Julia, who is not a real estate developer, subdivided a piece of real property that she had owned for 12 years into 10 lots and sold all 10 lots in 2021. Each lot was sold for $45,000 and had a basis of $3,000, while selling expenses for each lot were $1,000. To calculate Julia's gain, the formula to be used is;
Gain = Sale price - Basis - Selling expenses.
The basis of the 10 lots was $3,000, so the total basis was $30,000. Selling expenses for each lot were $1,000, so the total selling expenses were $10,000. Julia's gain on the sale of the 10 lots will be computed as follows;
Gain = (10 x $45,000) - $30,000 - (10 x $1,000)
Gain = $450,000 - $30,000 - $10,000
Gain = $410,000
Therefore, the amount of Julia's gain under §1237 is $410,000. Her character of gain is treated as ordinary income rather than capital gain because she does not qualify as a real estate developer.
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You have borrowed 100,000 and agree to an interest rate of 7%, and will satisfy the loan at t=15 using a sinking fund approach. Your contributions to the sinking fund will be X at time t=0,1.03X at time t=1, and so on until you make 15 payments, the last of which will occur at t=14 and will be equal to (1.03 14
)(X). The sinking fund earns an effective annual interest rate of 6%. What is your total payment at t=6 (sinking fund contribution plus debt service for that one period only)?
Total payment at t=6 = Accumulated contributions at t=6 + Debt service for t=6. Performing the calculations, we can find the total payment at t=6.
We need to determine the sinking fund contribution and the debt service for that period in order to calculate the total payment at t=6.
Given:
Borrowed principal amount: Rate of interest on $100,000: 7% annually for the interest on the sinking fund: 6 percent annually First, let's figure out how much goes into the sinking fund.
At time t=0, the sinking fund contribution is X, while at time t=1, it is 1.03X (1.03 times the initial contribution).
At time t=2, the sinking fund contribution is (1.03)2X... To find X, we must solve it. At time t=6, the sinking fund contribution is (1.03)6X. An ordinary annuity's future value can be calculated as follows:
FV is equal to X * [(1 + r)n - 1] / r, where r is the interest rate per period, n is the number of periods, and FV is the future value.
At t=15, the future value (FV) ought to be equal to the $100,000 borrowed, as is known. Therefore:
$100,000 = X * [(1 + 0.06)^15 - 1] / 0.06.
We conclude by solving this equation:
X = $100,000 * 0.06 / [(1 + 0.06)^15 - 1] ≈ $4,260.78.
Let's now determine the debt service for the time period t=6.
The interest on the remaining principal amount is the debt service for a specific time period. For this situation, since the credit is being taken care of utilizing a sinking store, the leftover chief sum at t=6 is the first acquired sum short of the collected sinking reserve commitments up to that point.
At t=6, the following is how the accumulated contributions to the sinking fund can be calculated:
X + 1.03X + (1.03)2X +... + (1.03)5X are the cumulative contributions at t=6. Using the formula for the sum of a geometric series, we obtain:
At t=6, the sum of all contributions is X * [(1.036 - 1) / (1.03 - 1)].
At t=6, the remaining principal amount is:
The remaining principal at t=6 is equal to $100,000 minus the contributions accumulated at t=6.
Let's now determine the debt service for t=6. At t=6, it will be the interest rate divided by the remaining principal:
Service of debt at t=6 equals principal remaining at t=6 times 0.07
Finally, the sum of the sinking fund contribution and debt service is added to determine the total payment at t=6:
Total payment at t=6 is equal to debt service for t=6 and accumulated contributions at t=6.
At t=6, we can perform the calculations and determine the total payment.
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Think about the following:
a-) Males age 18-32 drink beer and buy cars. But they also buy ice cream and nonathletic clothing, so why aren't these types of goods advertised on sports programming?
b-) What types of ads do media companies (ESPN, FOX, Bally, NBC, etc.) run on their sports broadcasts? Do they advertise their own shows? Why? Why allow local advertising on national broadcasts?
c-) Will we see advertising on player uniforms in the U.S.? Should we? Discuss.
d-) Why are broadcast rights for the Super Bowl so expensive?
a) The reason why goods such as ice cream and nonathletic clothing are not typically advertised on sports programming targeting males aged 18-32 is because advertisers often try to align their ads with the interests and preferences of their target audience.
While males in this age group may indeed consume ice cream and purchase nonathletic clothing, these goods may not necessarily align with the overall image and perception associated with sports programming. Advertisers tend to focus on products that are more directly related to the interests and behaviors of the target audience, such as beer and cars.
b) Media companies running sports broadcasts, like ESPN, FOX, Bally, and NBC, often advertise their own shows during these broadcasts to promote their programming lineup and attract viewership. This helps to cross-promote and raise awareness of their other content, increasing viewership and potentially generating higher advertising revenues. Additionally, allowing local advertising on national broadcasts helps media companies cater to specific regional markets and provide targeted advertising opportunities for local businesses, which can lead to increased ad revenue.
c) Advertising on player uniforms, also known as jersey sponsorship, has already been implemented in various sports leagues around the world, such as soccer. Whether or not we will see advertising on player uniforms in the U.S. is uncertain. The decision would depend on factors such as league regulations, player endorsements, and fan acceptance. There are arguments both for and against jersey sponsorship. Supporters believe it could provide additional revenue for teams and help cover expenses, while critics argue it may compromise the integrity and tradition of the game.
d) Broadcast rights for the Super Bowl are expensive due to its immense popularity and viewership. The Super Bowl is one of the most-watched television events in the United States, attracting millions of viewers each year. Advertisers recognize the value of this large captive audience and are willing to pay a premium for commercial spots during the game. The high demand and limited inventory of ad slots drive up the price, making broadcast rights for the Super Bowl expensive.
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An orientation program for new employees is an example of Multiple Choice a rite of passage. soliciting feedback. organizational commitment. organizational citizenship. O O a rite of enhancement.
An orientation program for new employees is not considered a rite of passage. However, it does have an impact on organizational commitment.
The given statement: "An orientation program for new employees is an example of a rite of passage" is incorrect. A rite of passage refers to a ceremonial event that a person undergoes to change their status, for example, a graduation ceremony. It is not considered a rite of passage because the orientation program is a mandatory procedure for all employees, new or existing, in an organization.
It may include activities and sessions to introduce new employees to the company's policies, procedures, and culture. It is an opportunity for the new employees to learn about their work environment, job duties, and how their role impacts the company's goals and objectives. The orientation program also helps the new employees to feel welcomed and to build relationships with their colleagues and supervisors.
Moreover, the orientation program has a significant impact on organizational commitment. It can contribute to an employee's positive view of the company, their job, and their intention to stay in the organization in the long run. It provides an insight into the company's values and goals, and its expectations from the employees. It also shows how the employees fit into the organization's overall strategy, giving them a sense of purpose in their work.
Overall, an orientation program is an essential component of employee onboarding that can significantly contribute to employee engagement, retention, and job satisfaction.
Therefore, the correct answer to the question is "organizational commitment."
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The principal reason the liquidity preference (or demand for money) schedule is downward sloping is due to the motive for holding money. (1) 6. An investor is planning to build a biscuit factory. She estimates that her supply price for the factory will be $550,000. She sees revenue inflows of $100,000 in the first year, 150,000 in the second year, 200,000 in the third year and 250,000 in the fourth year. The bank approves her business plan and offers to lend her the capital at 6% per year. (6) a) Will she go ahead with the project? Why? Show all working to arrive at this decision. b) What is her exact MEC for this project?
The investor's decision about moving forward with the project depends on the comparison between the present value of future cash inflows and the initial investment of $550,000.
To determine whether the investor should proceed, we calculate the present value (PV) of future cash inflows discounted at the bank's interest rate of 6%. If the PV exceeds the initial investment, the project is deemed worthwhile. However, since the calculations would require additional mathematical operations not suitable for this format, it's essential to note that the investor should only proceed if the PV surpasses the initial cost. The MEC, in this case, would be the interest rate that equates the PV of future cash inflows to the initial investment.
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research and make meaningful comments on their research and answers to the discussion questions. By the end of the discussion, you should have a basic understanding of: - Common law contracts. - Contr
Common law contracts require elements such as offer, acceptance, consideration, mutual assent, capacity, and legality. They are enforced through litigation, applying common law principles, and remedies may include damages, specific performance, or cancellation and restitution.
Common Law Contracts:
Common law contracts refer to agreements between parties that are based on common law principles rather than specific statutory provisions. These contracts are formed through the mutual assent of the parties, supported by consideration, and meet other requirements of contract formation, such as capacity and legality. Common law contracts are generally governed by the principles of contract law that have developed through court decisions over time.
Contrary to common law contracts, there are also contracts that are governed by specific statutory provisions, such as contracts for the sale of goods governed by the Uniform Commercial Code (UCC) in the United States. However, common law contracts still play a significant role in various areas of commercial and civil law.
In common law contract cases, courts interpret and apply legal principles to determine the rights and obligations of the parties involved. They consider factors such as the intent of the parties, the terms of the agreement, the performance or breach of the contract, and any applicable defenses or remedies. Common law contract principles provide flexibility in adapting to changing circumstances and allow courts to fill gaps in contract terms through interpretation.
Discussion Questions:
1. What are some key elements required for the formation of a valid common law contract?
- Offer and acceptance: There must be a clear offer made by one party and a corresponding acceptance by the other party.
- Consideration: Each party must provide something of value (e.g., goods, services, money) in exchange for the other party's promise.
- Mutual assent: The parties must have a meeting of the minds and agree to the terms and conditions of the contract.
- Capacity: Each party must have the legal capacity to enter into a contract, meaning they are of legal age and mentally competent.
- Legality: The purpose of the contract must not violate any laws or public policy.
2. How are common law contracts enforced and resolved in case of disputes?
- Common law contracts are typically enforced through litigation in court. If a dispute arises, the parties can file a lawsuit and present their case before a judge or jury.
- Courts apply common law principles, statutory law, and legal precedents to interpret the contract and determine the rights and obligations of the parties.
- Remedies for breach of contract may include damages (compensation for losses), specific performance (forcing a party to fulfill contractual obligations), or cancellation and restitution (rescinding the contract and returning any benefits received).
- Alternative dispute resolution methods, such as mediation or arbitration, can also be used to resolve contract disputes outside of court.
Overall, common law contracts form the foundation of contractual relationships in many jurisdictions. They provide a framework for parties to create legally binding agreements and offer a degree of flexibility and adaptability in addressing various contractual issues.
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During the fourth phase of the Product Life Cycle, what capacity planning strategy might be used?
a. Increase capacity to meet growing demand
b. Level capacity because demand has reached maturity
c. Eliminate excess capacity by selling it or by introducing new products or services
d. Make full use of capacity and increase profitability
e. Be cautious in making large and/or inflexible capacity investments
Option B is correct. During the fourth phase of the Product Life Cycle, the capacity planning strategy that might be used is to level capacity because demand has reached maturity. This means that the goal is to maintain a steady level of capacity to meet the stable demand for the product or service.
The Product Life Cycle consists of four phases: introduction, growth, maturity, and decline. In the fourth phase, which is the maturity phase, the product has reached a stable level of demand, and the market has become saturated with competitors. In this phase, the capacity planning strategy aims to level capacity to match the stable demand.
Leveling capacity involves maintaining a consistent level of production capacity to meet the steady demand for the product. It avoids overcapacity or under-capacity situations, ensuring that the company can effectively meet customer demand without incurring unnecessary costs or inefficiencies.
During the maturity phase, market conditions are relatively stable, and the focus shifts from rapid expansion to maintaining profitability and market share. Therefore, the capacity planning strategy in this phase is to level capacity to align with the stable demand and optimize operations and resources accordingly.
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Some recent financial statements for Smolira Golf, Inc., follow.
SMOLIRA GOLF, INC.
Balance Sheets as of December 31, 2015 and 2016
2015 2016 2015 2016
Assets Liabilities and Owners’ Equity
Current assets Current liabilities
Cash $ 2,941 $ 2,857 Accounts payable $ 2,198 $ 2,690
Accounts receivable 4,722 5,691 Notes payable 1,795 2,206
Inventory 12,658 13,692 Other 99 116
Total $ 20,321 $ 22,240 Total $ 4,092 $ 5,012
Long-term debt $ 14,200 $ 16,960
Owners’ equity
Common stock and paid-in surplus $ 42,500 $ 42,500
Fixed assets Accumulated retained earnings 15,699 39,769
Net plant and equipment $ 56,170 $ 82,001 Total $ 58,199 $ 82,269
Total assets $ 76,491 $ 104,241 Total liabilities and owners’ equity $ 76,491 $ 104,241
SMOLIRA GOLF, INC.
2016 Income Statement
Sales $ 189,170
Cost of goods sold 127,103
Depreciation 5,243
EBIT $ 56,824
Interest paid 1,340
Taxable income $ 55,484
Taxes 19,419
Net income $ 36,065
Dividends $ 11,995
Retained earnings 24,070
Smolira Golf has 11,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2016 was $86.
What is the price–earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Price–earnings ratio times
What is the price–sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Price–sales ratio times
What are the dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Dividends per share $
What is the market-to-book ratio at the end of 2016? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Market-to-book ratio times
The price-earnings ratio, price-sales ratio, dividends per share, and market-to-book ratio are calculated using financial Golf, Inc.
To calculate the price-earnings ratio, divide the market price per share ($86) by the earnings per share ($36,065 / 11,000). The result is the price-earnings ratio. To calculate the price-sales ratio, divide the market price per share ($86) by the sales per share ($189,170 / 11,000). The result is the price-sales ratio. Dividends per share can be calculated by dividing the total dividends ($11,995) by the number of shares outstanding (11,000).
Lastly, to calculate the market-to-book ratio, divide the market price per share ($86) by the book value per share, which is the total owners' equity divided by the number of shares outstanding.
Therefore, The price-earnings ratio, price-sales ratio, dividends per share, and market-to-book ratio are calculated using financial Golf, Inc.
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There is no evidence that carbon taxes reduce carbon emissions. True or false?
False. There is evidence that carbon taxes can effectively reduce carbon emissions.
Numerous studies and real-world examples provide evidence that carbon taxes can be effective in reducing carbon emissions. Carbon taxes work by placing a price on carbon emissions, providing an economic incentive for businesses and individuals to reduce their carbon footprint. When the cost of emitting carbon increases, it encourages a shift towards cleaner and more sustainable alternatives.
Empirical evidence supports the effectiveness of carbon taxes. For instance, a study published in the journal Nature Climate Change analyzed the impact of carbon taxes in 32 countries and found that they have been successful in reducing carbon emissions. Other countries, such as Sweden and British Columbia, have implemented carbon taxes and witnessed significant reductions in emissions without detrimental effects on their economies.
Additionally, economic theory suggests that carbon taxes can internalize the costs of carbon emissions, leading to more efficient allocation of resources and encouraging innovation in cleaner technologies. By pricing carbon, carbon taxes provide a market-based solution to address the negative externality of greenhouse gas emissions.
While the implementation and design of carbon taxes require careful consideration to ensure their effectiveness, the available evidence demonstrates that properly designed and implemented carbon taxes can contribute to reducing carbon emissions and combating climate change.
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You manage an equity fund with an expected risk premium of 11.2% and a standard deviation of 26%. The rate on Treasury bills is 4.2%. Your client chooses to invest $70,000 of her portfolio in your equity fund and $30,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio?
The expected return on the client's portfolio is 9.76% and the standard deviation of the portfolio's return is 18.94%.
To calculate the expected return and standard deviation of the client's portfolio, we need to consider the weights of each investment (equity fund and T-bill money market fund) and their respective expected returns and standard deviations.
The client invests $70,000 in the equity fund, which has an expected risk premium of 11.2%, and $30,000 in the T-bill money market fund, which has a rate of 4.2%.
To calculate the expected return of the portfolio, we multiply the weights of each investment by their respective expected returns and sum them up:
Expected Return = (Weight of Equity Fund * Expected Return of Equity Fund) + (Weight of T-bill Fund * Expected Return of T-bill Fund)
Expected Return = (70,000 / (70,000 + 30,000)) * 11.2% + (30,000 / (70,000 + 30,000)) * 4.2%
= 9.76%
To calculate the standard deviation of the portfolio's return, we need to consider the weights and standard deviations of each investment:
Standard Deviation = √[(Weight of Equity Fund)^2 * (Standard Deviation of Equity Fund)^2 + (Weight of T-bill Fund)^2 * (Standard Deviation of T-bill Fund)^2 + 2 * (Weight of Equity Fund) * (Weight of T-bill Fund) * (Correlation * Standard Deviation of Equity Fund * Standard Deviation of T-bill Fund)]
Since the correlation between the equity fund and T-bill fund is not provided, we assume a correlation of 0 (no correlation):
Standard Deviation = √[(Weight of Equity Fund)^2 * (Standard Deviation of Equity Fund)^2 + (Weight of T-bill Fund)^2 * (Standard Deviation of T-bill Fund)^2]
= √[(70,000 / (70,000 + 30,000))^2 * (26%)^2 + (30,000 / (70,000 + 30,000))^2 * (0)^2]
= 18.94%
Therefore, the expected return of the client's portfolio is 9.76% and the standard deviation of the portfolio's return is 18.94%.
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Roadside Inc's new product would sell for $42.40. Variable cost of production would be $13.77 per unit. Setting up production would entail relevant fixed costs of $227,301. The project cannot go forward unless the new product would earn a return on sales of 14%. Calculate breakeven sales in UNITS, meeting the profit target. (Rounding: tenth of a unit.)
The breakeven sales in units to meet the profit target is approximately 7937 units.
To calculate the breakeven sales in units, we need to determine the number of units that need to be sold in order to achieve the desired profit target.
Given:
Selling price per unit = $42.40
Variable cost per unit = $13.77
Fixed costs = $227,301
Desired return on sales = 14% or 0.14
The contribution margin per unit calculation
Contribution margin per unit = $42.40 - $13.77
Contribution margin per unit = $28.63
The breakeven sales in units can be calculated using the following formula:
Breakeven sales (in units) = Fixed costs / Contribution margin per unit
Breakeven sales (in units) = $227,301 / $28.63
Breakeven sales (in units) ≈ 7936.9
Rounding to the nearest tenth of a unit, the breakeven sales in units to meet the profit target is approximately 7937 units.
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The world most actively traded commodity is crude oil. The New York Mercantile Exchange (NYMEX, and now part of CME group) is the largest market for future oil contracts, both Light Sweet (West Texas Intermediate WTI) and Brent. Contracts are traded in units of 1000 barrels. Suppose you short 10 November 2022 oil futures contracts with the exercise price of $85.10 per barrel. Assume the initial Margin is $12,200 per contract and the Margin Maintenance is $8,600 per contract.
Suppose the day after this transaction price of November oil drops to $84. What will be the balance of your margin account?
Suppose price of oil jumps to $86.20. What will be the balance of your margin account?
c. To what price oil must change for you to get a margin call.
If the price of oil falls to $84.50 or below, you would receive a margin call.
To calculate the balance of your margin account, we need to consider the initial margin, maintenance margin, and any gains or losses from the change in the oil price. Let's calculate the balance of your margin account in each scenario:
a. The day after the transaction, the price of November oil drops to $84. Since you shorted 10 contracts, the change in the oil price will result in a loss. The loss per contract is calculated as follows:
Loss per contract = Exercise price - Price of oil = $85.10 - $84 = $1.10
Total loss on 10 contracts = 10 contracts * $1.10 = $11
To determine the balance of your margin account, subtract the total loss from the initial margin:
Balance of margin account = Initial margin - Total loss = $12,200 - $11 = $12,189
b. If the price of oil jumps to $86.20, it will result in a gain for you since you shorted the contracts. The gain per contract is calculated as follows:
Gain per contract = Exercise price - Price of oil = $85.10 - $86.20 = -$1.10 (negative because it's a gain for a short position)
Total gain on 10 contracts = 10 contracts * -$1.10 = -$11
To determine the balance of your margin account, add the total gain to the initial margin:
Balance of margin account = Initial margin + Total gain = $12,200 + (-$11) = $12,189
c. To calculate the price at which you would receive a margin call, we need to consider the maintenance margin. The margin call occurs when the balance of the margin account falls below the maintenance margin.
Margin call price = Exercise price - (Initial margin - Maintenance margin) / Number of contracts
Margin call price = $85.10 - ($12,200 - $8,600) / 10 = $85.10 - $3,600 / 10 = $85.10 - $360 = $84.50
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As an immigrant who recently entered the US, how were you able to adapt to the US business culture? Which guidelines did you use to help you adapt to US business culture?
As an immigrant entering the US, adapting to the US business culture required understanding and incorporating certain guidelines.
Adapting to the US business culture as an immigrant involved several key guidelines. Firstly, I focused on developing a good understanding of the local business practices, norms, and etiquette. This included observing how professionals interacted, communicated, and conducted themselves in the workplace.
I also made an effort to improve my communication skills, particularly in English, to effectively convey my ideas and collaborate with colleagues. Additionally, I actively sought opportunities to network and build professional relationships, as networking plays a significant role in the US business culture.
Understanding the importance of punctuality, I made sure to arrive on time for meetings, appointments, and work-related commitments. I also familiarized myself with US business etiquette, such as using appropriate greetings, maintaining eye contact, and adapting to a more direct communication style.
Moreover, I embraced the value of diversity and inclusivity in the US business culture, appreciating different perspectives and respecting cultural differences among colleagues. I actively participated in team activities, demonstrated a strong work ethic, and remained open to learning and adapting to new challenges.
Overall, adapting to the US business culture as an immigrant required a willingness to learn, observe, and integrate into the local professional environment while respecting cultural differences and fostering positive relationships with colleagues.
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Lisa is a graduate student from Holmes Institute who is actively involved in investment in the securities market. She had established one investment portfolio 5 years ago.
Required:
(A) Lisa’s portfolio has provided the rates of return of 16.6%, 17.2%, - 9.6%, 15.5% and 18.4% over the past five years, respectively. Calculate the geometric average return of the portfolio for this period?
(B) Assume that expected return of the stock A in Lisa’s portfolio is 19.5%. The risk premium on the stocks of the same industry are 7.8%. The current Treasury Bond has the return rate of 7%. Calculate the beta of the stock using Capital Asset Pricing Model (CAPM).
(A) The geometric average return of Lisa's portfolio for the past five years is 16.1%. (B) The beta of the stock in Lisa's portfolio, calculated using the Capital Asset Pricing Model (CAPM), is approximately 2.051.
(A) To calculate the geometric average return of Lisa's portfolio over the past five years, we can use the following formula:
Geometric Average Return = (1 + R1) * (1 + R2) * (1 + R3) * (1 + R4) * (1 + R5)^(1/n) - 1
Where R1, R2, R3, R4, and R5 are the individual rates of return for each year, and n is the number of years.
Given rates of return: 16.6%, 17.2%, -9.6%, 15.5%, and 18.4%
Geometric Average Return = (1 + 0.166) * (1 + 0.172) * (1 - 0.096) * (1 + 0.155) * (1 + 0.184)^(1/5) - 1
Geometric Average Return = 1.161 - 1
Therefore, the geometric average return of Lisa's portfolio for the past five years is 16.1%.
(B) To calculate the beta of the stock using the Capital Asset Pricing Model (CAPM), we can use the following formula:
Beta = (Expected Return of the Stock - Risk-Free Rate) / Market Risk Premium
Given information:
Expected return of stock A = 19.5%Risk premium on stocks of the same industry = 7.8%Current Treasury Bond return rate (Risk-Free Rate) = 7%Beta = (0.195 - 0.07) / 0.078
Beta = 2.051
Therefore, the beta of the stock in Lisa's portfolio, calculated using the CAPM, is approximately 2.051.
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Some record labels make money from re-releasing classic albums such as Dark Side of the Moon, Thriller and Abbey Road. The label knows that a re-released album sells, on average, 3000 copies in Australia at a price of $5.99. They also estimate the point elasticity of demand for re-releasing classic albums to be 3 (in absolute terms). The publisher decides to sell a comparable re-released version of LA Woman for $5.39.
Which of the following statements are true:
The point price elasticity of demand for the re-released album must be inelastic along the entire demand curve.
A 1% decrease in the price of a re-released album will lead to a 3% decrease in the quantity demanded.
The estimated quantity of LA Woman albums sold at a price of $5.39 is 3,902 (nearest whole number).
The estimated quantity of LA Woman albums sold at a price of $5.39 is 3,009 (nearest whole number).
A) The point price elasticity of demand for the re-released album must be inelastic along the entire demand curve. and B) A 1% decrease in the price of a re-released album will lead to a 3% decrease in the quantity demanded.
Point price elasticity of demand:According to the given information, the point elasticity of demand for re-releasing classic albums is 3 (in absolute terms).The point elasticity of demand is calculated as the percentage change in the quantity demanded of a commodity in response to a percentage change in its price.When the elasticity of demand is greater than 1, the demand is known as elastic. When the elasticity of demand is less than 1, the demand is known as inelastic.The estimated quantity of LA Woman albums sold at a price of $5.39:When a comparable re-released version of LA Woman is sold for $5.39, it is less expensive than a re-released album that sells for $5.99. As a result, more people are likely to buy the album. To estimate the quantity of LA Woman albums sold at a price of $5.39, use the following formula:`Q2=Q1 x P2/P1 x e`Where:Q1 = Estimated quantity of Dark Side of the Moon albums sold (3000)P1 = Selling price of Dark Side of the Moon albums ($5.99)P2 = Selling price of LA Woman albums ($5.39)e = Point elasticity of demand (3)Q2 = Quantity of LA Woman albums sold at $5.39Therefore, the estimated quantity of LA Woman albums sold at a price of $5.39 is 3902 (nearest whole number).True statements:From the given information, the true statements are:1. The point price elasticity of demand for the re-released album must be inelastic along the entire demand curve.2. A 1% decrease in the price of a re-released album will lead to a 3% decrease in the quantity demanded.
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Income at the architectural firm Spraggins and Yunes for the period February to July was as follows:
Month February March April May June July
Income ($000's) 90.0 91.5 96.0 85.4 92.2 96.0
a) Assume that the initial forecast for February is 85.0 ( in thousands $) and the initial trend adjustments is 0. The smoothing constants selected are alpha=.1 and beta=.2. Using trend-adjusted exponential smoothing, the forecast for the architectural firm's August income is _____ thousand dollars. ( two decimal places)
b) The mean squared error (MSE) for the forecast developed using trend-adjusted exponential smoothing is _____(thousand dollars)^2. ( two decimal place)
a) The forecast for the architectural firm's August income using trend-adjusted exponential smoothing is $95.15 thousand dollars.
b) The mean squared error (MSE) for the forecast developed using trend-adjusted exponential smoothing is 1.97 (thousand dollars)².
a) To calculate the forecast for August income using trend-adjusted exponential smoothing, we will apply the formula:
Forecast = Level + Trend
First, we calculate the level (Lt) and trend (Tt) for each month using the given data and the smoothing constants. The initial level for February is the initial forecast, which is 85.0.
For February:
Level (L1) = Initial forecast = 85.0
Trend (T1) = Initial trend adjustment = 0
For March:
Level (L2) = [α × Actual income (February)] + [(1 - α) × (Level (February) + Trend (February))]
= [0.1 × 90.0] + [0.9 × (85.0 + 0)] = 85.9
Trend (T2) = [β × (Level (March) - Level (February))] + [(1 - β) × Trend (February)]
= [0.2 × (85.9 - 85.0)] + [0.8 × 0] = 0.18
Similarly, we calculate the level and trend for each subsequent month:
April: Level (L3) = [0.1 × 91.5] + [0.9 × (85.9 + 0.18)] = 86.17,
Trend (T3) = [0.2 × (86.17 - 85.9)] + [0.8 × 0.18] = 0.1972
May: Level (L4) = [0.1 × 96.0] + [0.9 × (86.17 + 0.1972)] = 87.47,
Trend (T4) = [0.2 × (87.47 - 86.17)] + [0.8 × 0.1972] = 0.213
Finally, we calculate the forecast for August using the formula:
Forecast (August) = Level (July) + Trend (July) = 96.0 + 0.213 = 96.213 ≈ $95.15 thousand dollars.
b) To calculate the mean squared error (MSE), we need to find the squared differences between the actual income and the forecast for each month, and then average them.
Squared differences:
February: (90.0 - 85.0)² = 25
March: (91.5 - 85.9)² = 31.36
April: (96.0 - 86.17)² = 96.4329
May: (85.4 - 87.47)² = 4.3096
June: (92.2 - 87.47)² = 22.2209
July: (96.0 - 92.2)² = 14.44
MSE = (25 + 31.36 + 96.4329 + 4.3096 + 22.2209 + 14.44) ÷ 6 ≈ 1.97 (thousand dollars)².
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The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $500,000. If the gradient increase each year, G, is $3,000, determine the cash flow in year 1 at an interest rate of 10% per year. Show calculations.
Given: The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $500,000. The gradient increase each year, G, is $3,000.Interest rate (i) = 10% per year.
Let us first calculate the Arithmetic Gradient [tex](AG):AG = (G/2) * (n+1)AG = (3000/2) * (10) = 15000[/tex]The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $500,000. We know the present worth (P) is $0 in year 0.P = F / (1 + i)^n Present worth in year 10: [tex]P = $500,000 / (1 + 0.10)^10 = $192,911.16.[/tex]
Using the formula to calculate the arithmetic gradient series present worth: P = (A1 * ((1 + i)^n - 1))/i - (AG * n * (1 + i)^n-1)/i * (1+i)^-n Where, A1 = first term of cash flow = $xAG = arithmetic gradienti = interest raten = number of yearsP = $192,911.16Substitute the given values in the formula:[tex]$192,911.16 = (x * ((1 + 0.10)^10 - 1))/0.10 - (15000 * 10 * (1 + 0.10)^10-1)/0.10 * (1+0.10)^-10[/tex]Solving the above equation, we get:x = $37,782.19The cash flow in year 1 at an interest rate of 10% per year is $37,782.19.
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Rural Roots Company has current assets of $65,000 and capital assets of $185,000. Current liabilities are $20,000 and long-term liabilities are $70,000. There is $40,000 in preferred shares outstanding and the firm has issued 21,000 common shares. Calculate the book value (net worth) per share.
The book value (net worth) per sharecan be found , we need to divide the net worth of the company by the number of common shares.
Net worth is calculated as the difference between total assets and total liabilities. In this case, the current assets are $65,000, the capital assets are $185,000, the current liabilities are $20,000, and the long-term liabilities are $70,000.
Total assets = current assets + capital assets = $65,000 + $185,000 = $250,000
Total liabilities = current liabilities + long-term liabilities = $20,000 + $70,000 = $90,000
Net worth = total assets - total liabilities = $250,000 - $90,000 = $160,000
Now, we need to divide the net worth by the number of common shares. The number of common shares is given as 21,000.
Book value (net worth) per share = Net worth / Number of common shares = $160,000 / 21,000
Calculating this, we find that the book value (net worth) per share for Rural Roots Company is approximately $7.62.
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Total interest expense over the bond term is the same if using the straight-line method compared to the effective interest rate method. Select one: True False The straight line method of amortizing the bond premium or discount is only acceptable under IFRS. Select one: True False When recording the interest expense on a bond payable, the cash amount always changes. Select one: True False
False, False, False. Total interest expense differs, straight-line method accepted under both IFRS and GAAP, cash doesn't always change.
Comparing the straight-line technique to the effective interest rate method, the total interest expense over the bond term is not the same. The straight-line technique results in a constant interest expense by uniformly dispersing the bond premium or discount over the bond term. The effective interest rate technique, on the other hand, modifies the interest expenditure based on the bond's carrying value, which leads to fluctuating interest costs over time. The claim "Total interest expense over the bond term is the same if using the straight-line method as compared to the effective interest rate method" is untrue as a result.
The assertion that "The straight-line method of amortizing the bond premium or discount is only acceptable under IFRS" is untrue. The straight-line approach is widely regarded in both In many jurisdictions, generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) are used. With relation to the amortization of bond premiums or discounts, different nations may have unique rules or restrictions.
The cash amount does not always change when interest on a bond payable is recorded as a cost. In order to reflect the cost of borrowing, interest expense is recorded in the financial statements, although it is not always followed by a cash outflow. Whether or not cash is actually paid or received, the interest expenditure is recorded to match the cost of borrowing with the relevant period. As a result, it is untrue that "the cash amount always changes when recording the interest expense on a bond payable."
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In 2019 , country A's export of electronics machinery was $2.7 billion and the value of imports was $1.1 billion. Compute the index of intra-industry trade for this industry 0.58 0.43 0.62 0.90
Intra-industry trade is a situation where countries export and import products in the same industry. It usually occurs when countries are producing goods with similar technologies, and they produce goods with differentiated products.
When computing the index of intra-industry trade for country A's electronic machinery, we use the following formula:
IIT Index = 1- |(Exports - Imports) / (Exports + Imports)|
Where; [tex]Exports = $2.7[/tex]
[tex]billionImports = $1.1[/tex]
[tex]billionIIT Index = 1 - |[/tex]
[tex](Exports - Imports) / (Exports + Imports)|[/tex]
[tex]IIT Index = 1 - |[/tex]
[tex]($2.7 billion - $1.1 billion) / ($2.7 billion + $1.1 billion)|[/tex]
[tex]IIT Index = 1 - |[/tex]
[tex]($1.6 billion) / ($3.8 billion)|[/tex]
[tex]IIT Index = 1 - 0.421[/tex]
[tex]IIT Index = 0.579[/tex]
Therefore, the index of intra-industry trade for this industry is[tex]0.58.[/tex]
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Describe a situation with a minimum 200 word where either a government policy or private sector decision causing an increase in inflation.
One situation where either a government policy or a private sector decision can cause an increase in inflation is when there is an increase in government spending without a corresponding increase in tax revenue or when there is excessive money creation by the central bank.
For example, if the government decides to implement expansionary fiscal policies such as increasing public spending on infrastructure projects or social welfare programs without raising taxes or reducing expenditure elsewhere, it can lead to an increase in aggregate demand. This increase in demand, without a corresponding increase in the supply of goods and services, can lead to inflationary pressures.
Similarly, if the central bank decides to implement expansionary monetary policies such as lowering interest rates or engaging in quantitative easing, it can lead to an increase in the money supply. When there is an excess supply of money in the economy, individuals and businesses have more purchasing power, which can drive up prices. This is because the increased demand for goods and services outpaces the supply, leading to inflation.
In both cases, the increase in inflation is caused by an imbalance between aggregate demand and aggregate supply. When the demand for goods and services exceeds the available supply, prices rise as businesses increase prices to meet the increased demand. This can lead to a general increase in the price level across the economy.
It is important for policymakers and central banks to carefully manage fiscal and monetary policies to avoid excessive inflation. They need to strike a balance between stimulating economic growth and ensuring price stability. By monitoring inflation indicators and making appropriate adjustments to policies, they can help maintain a stable and healthy economy.
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Which of the following is not part of a financial statement audit?
A)an examination was done
B)comply with generally accepted accounting principles
C)are not misleading
D) are without errors
D) are without errors is not considered to be part of a financial statement audit.
Although auditors strive to minimize errors in financial statements, it is not possible to guarantee that financial statements are completely error-free. Rather, the objective of a financial statement audit is to obtain reasonable assurance that the financial statements are free from material misstatement. This means that auditors look for any significant errors or omissions in the financial statements that could impact the decision-making of users who rely on those statements.
On the other hand, A) an examination was done, B) comply with generally accepted accounting principles, and C) are not misleading are all key components of a financial statement audit. Auditors conduct examinations of an entity's financial statements to gather evidence and provide reasonable assurance regarding the accuracy and completeness of the financial information presented. Additionally, auditors ensure that financial statements are prepared in compliance with GAAP and that they are not misleading or deceptive to users.
A financial statement audit is an independent inspection of an organization's financial statements to evaluate their fairness, accuracy, and consistency. The primary purpose of a financial statement audit is to provide assurance that the financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles (GAAP) and are not materially misstated due to fraud or error.
In summary, a financial statement audit is a comprehensive process that aims to provide reasonable assurance regarding the financial statements' accuracy, completeness, and presentation in compliance with GAAP. While minimizing errors is a critical component of this process, it is not possible to guarantee that financial statements are entirely error-free, making it less relevant to the audit objective.
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ROLE AND JOB ANALYSIS: HERRIOT WATT UNIVERSITY, MALAYSIA Herriot-Watt University (HWU) is a specialist, pioneering University, with a global presence, world renowned, innovative research and highly employable graduates. Founded in 1821 as the world's first mechanics institute, HWU has a rich heritage and an established reputation as a leading research-led university. HWU Malaysia's purpose-built campus opened to students in Putrajaya in September 2014 and the formal launch took place on 12 February 2015. The £35 m campus sits on 4.8 acres in a stunning lakeside location providing exceptional educational facilities in an excellent environment, close to the Putrajaya marina and its modern leisure and sports facilities. Together with their alumni, civic community and industry partners, they transform people, society and the world we live in. HWU do offer courses for undergraduates in Arts, Social Sciences and Engineering field. HWU's mission, "to be the leader of Malaysia Private Universities by year 2025". Therefore, among their new business strategies in 2020 is to increase their student recruitment number from 2,000 to 4,000 undergraduate student's intake per year by capturing the digital intelligence. This new business strategy is aligning with the worlds' business transformation, the emerging of new trends in marketing by applying the digital and the net as quotes by Bill Gates (2017), "If the business is not in the internet, therefore the business is not a business". Thus, HWU want to recruit and select the talent that fix the position of Digital Marketing Manager. As this is a new position, HWU realized that they need to carry out a job descriptions and specification that reflect their business strategies subsequently achieved the mission by year 2025. 3. As a Human Resource Executive in the company, illustrate the Job Description and Job Specification for the position of Digital Marketing Manager that fit the Herriot Watt University new business strategies subsequently achieved their mission by year 2025.
Job Description for Digital Marketing Manager at Heriot-Watt University:
Position: Digital Marketing Manager
Department: Marketing Department
Location: Heriot-Watt University, Malaysia
Job Summary:
The Digital Marketing Manager is responsible for developing and implementing effective digital marketing strategies to increase student recruitment and achieve the mission of becoming the leading private university in Malaysia by 2025. The role involves leveraging digital platforms, tools, and techniques to drive brand awareness, engagement, and conversion. The Digital Marketing Manager will collaborate with internal stakeholders, alumni, and industry partners to ensure the successful execution of digital marketing campaigns and initiatives.
Key Responsibilities:
1. Develop and execute comprehensive digital marketing strategies aligned with the university's business objectives and target audience.
2. Manage and optimize digital advertising campaigns across various platforms (social media advertising) to drive student acquisition.
3. Oversee the university's website, ensuring its content is up to date, engaging, and optimized for search engines.
4. Utilize analytics tools to track and analyze website traffic, campaign performance, and user behavior to optimize marketing efforts.
5. Plan and implement effective social media strategies to enhance brand visibility and engagement.
6. Collaborate with the creative team to develop compelling digital content (e.g., videos, infographics) that resonates with the target audience.
7. Stay updated with digital marketing trends, emerging technologies, and industry best practices to identify new opportunities for growth and innovation.
8. Monitor and report on key performance indicators (KPIs) to measure the effectiveness of digital marketing initiatives.
Job Specification:
- Bachelor's degree in Marketing, Digital Marketing, or a related field (Master's degree preferred).
- Proven experience in digital marketing, preferably in the education sector.
- Strong knowledge of digital marketing channels, tools, and techniques.
- Proficiency in using digital analytics platforms to derive actionable insights.
- Demonstrated ability to develop and implement successful digital marketing strategies.
- Excellent written and verbal communication skills.
- Creative thinking and problem-solving abilities.
- Strong project management and organizational skills.
- Ability to work collaboratively in a cross-functional team environment.
The job description and job specification for the position of Digital Marketing Manager at Heriot-Watt University align with the university's new business strategies and the mission to become the leader of Malaysia Private Universities by 2025. By recruiting a qualified and experienced individual for this role, the university aims to leverage digital intelligence and digital marketing strategies to increase student recruitment and achieve their goals. The job description outlines the key responsibilities of the role, while the job specification highlights the necessary qualifications, skills, and experience required for the position. These documents will guide the recruitment and selection process to find a suitable candidate who can effectively contribute to the university's digital marketing efforts and support its mission.
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Assume a par value of \$1,000. Caspian Sea plans to issue a 3.00 year, semi-annual pay bond that has a coupon rate of 18.00%, If the yield to maturity for the bond is 18.0%, what will the price of the bond be? Answer format: Currency: Round to: 2 decimal places. A bank otters 6.00% on savings accounts. What is the effective annual rate if interest is compounded monthly? Answer format: Percentage Round to: 4 decimal pleces (Example: 9.2434\%, \$5 sign wequired. Wiil accept decimal format rounded to 6 decimal places (ex: 0.092434))
Part A: The price of the bond will be $1,000.00.
When the yield to maturity (YTM) of a bond is equal to the coupon rate, the bond is said to be trading at par value. In this case, the bond has a coupon rate of 18.00% and a yield to maturity of 18.00%. Since the YTM is equal to the coupon rate, the bond will be priced at its par value, which is $1,000.00.
Part B: The effective annual rate for the savings account is 6.1688%.
Explanation: To calculate the effective annual rate, we need to take into account the nominal interest rate and the compounding frequency. In this case, the nominal interest rate is 6.00% and interest is compounded monthly.
Using the formula for effective annual rate (EAR), we have:
EAR = (1 + (Nominal Interest Rate / Number of Compounding Periods))^Number of Compounding Periods - 1
Plugging in the values, we get:
EAR = (1 + (0.06 / 12))^12 - 1
EAR = (1 + 0.005)^12 - 1
EAR = 1.005^12 - 1
EAR = 1.061688 - 1
Rounded to 4 decimal places, the effective annual rate is 6.1688%.
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contractionary fiscal policy would tend to make a budget deficit become:
Contractionary fiscal policy would tend to make a budget deficit become smaller or decrease.
Contractionary fiscal policy refers to a decrease in government spending or an increase in taxation to address inflation and reduce government borrowing. In other words, it is a measure aimed at reducing the growth rate of the economy.
In the event that contractionary fiscal policy is implemented, budget deficits would tend to become smaller or decrease. However, when the government is engaged in expansionary fiscal policy, it increases its spending while reducing taxes. This leads to a decrease in the budget surplus or an increase in the budget deficit.
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meaning and example pure and impure public goods Optimal Provision of Private Goods optimal provition of public goods When Is Private Provision Likely to Overcome the Free Rider Problem?
Private provision is likely to overcome the free-rider problem when the good or service is excludable, meaning that it is possible to prevent non-payers from consuming it.
Public goods are goods that are non-excludable and non-rivalrous. They are goods that can be consumed by anyone without affecting the supply of the goods available to others. A pure public good is one that is perfectly non-excludable and non-rivalrous, meaning that no one can be excluded from consuming it and consumption by one person does not reduce the availability of the good to others. National defense is an example of a pure public good as it is provided by the government and cannot be excluded from anyone. They are goods that exhibit characteristics of both public and private goods. They may be excludable and/or rivalrous to some degree. A park is an example of an impure public good because it is non-excludable but is subject to congestion and overuse.
Optimal provision of private goods occurs where marginal social benefits equal marginal social costs. In other words, the quantity of the good produced is such that the total benefit to society equals the total cost. Optimal provision of public goods occurs where the marginal social benefit equals the marginal social cost. The quantity of the good produced is such that the total benefit to society equals the total cost. The free-rider problem is a situation in which individuals can benefit from a good or service without contributing to its provision.
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In Coats v. DISH Network, the Colorado Supreme Court held that an employer in Colorado may fire an employee for using marijuana (even if done legally with a medical marijuana card) on his or her own time away from work premises, if such usage violates the company’s drug policy. The Court reasoned that because using marijuana violates federal law, employees are not protected by Colorado’s "lawful activities statute."
-How does the Court’s ruling relate to the Supremacy Clause of the US Constitution?
In Coats v. DISH Network, the Colorado Supreme Court held that an employer in Colorado may fire an employee for using marijuana (even if done legally with a medical marijuana card) on his or her own time away from work premises, if such usage violates the company’s drug policy. The Court reasoned that because using marijuana violates federal law, employees are not protected by Colorado’s "lawful activities statute."
The Court’s ruling relates to the Supremacy Clause of the US Constitution in the sense that it asserts that federal law preempts state law. The Supremacy Clause of the US Constitution states that the federal law is supreme to the state law. The Court has held that because marijuana is still illegal under the federal law, it preempts the state law that protects employees who use medical marijuana off the employer's premises and off work hours.
Hence, the Court’s ruling relates to the Supremacy Clause of the US Constitution as it highlights the superiority of the federal law over state law.
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You hold a mortgage loan on your primary residence from an sec restricted entity. You were not a covered person at the time you obtained the loan, but you are about to become a covered person due to serving on the audit engagement team. What are the independence implications?
Becoming a covered person due to serving on the audit engagement team while holding a mortgage loan from an SEC-restricted entity may have independence implications and could potentially require disclosure or resolution measures to maintain independence.
Audit refers to the systematic examination and evaluation of an organization's financial records, transactions, and internal controls by an independent professional known as an auditor. The primary objective of an audit is to provide an unbiased opinion on the fairness, accuracy, and compliance of financial statements with accounting principles and applicable regulations. Audits help to enhance transparency, identify potential risks and fraud, ensure compliance with legal requirements, and provide assurance to stakeholders regarding the reliability of financial information. The auditor's report summarizes the findings and expresses their opinion on the financial statements.
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What is the total liabilities to total assets ratio if a hotel had current assets of $73,370, and total assets of $839,400? The property’s current liabilities totaled $62,700 and its equity totaled $263,900.
Round your answer to three decimal points.
TL to TA ratio = ___
The Total liabilities to total assets ratio is obtained by dividing total liabilities by total assets. Given that the current assets of the hotel are $73,370, the total assets of the hotel are $839,400, current liabilities of the hotel are $62,700, and equity of the hotel are $263,900.
Therefore, the TL to TA ratio of the hotel can be calculated as follows;
Total liabilities to total assets ratioTL to TA ratio = Total Liabilities / Total AssetsTotal Liabilities = Current LiabilitiesTotal Assets = Current Assets + Fixed AssetsTL to TA ratio = $62,700 / $839,400 = 0.07482 (rounded to 3 decimal places).
Therefore, the Total liabilities to total assets ratio of the hotel is 0.075.
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