In order to provide an accurate answer, I need the specific portion of the statement in question. However, I can give you a general response. Identifying the specific fallacy committed can help to reveal the weakness in the statement and improve the quality of the discussion.
Explanation: Fallacy of ambiguity occurs when an argument, or apparent argument, which professes to be decisive of the matter at issue, while in reality it is not is open to more than one interpretation, explanation or meaning, if that meaning cannot be determined from its context.
The fallacy of equivocation and the fallacy of amphiboly in context means almost the same thing. Logical fallacy resulting from use of multiple meanings in a statement. The normative fallacy because in traditional grammar there were norms for using the language, but according to the structural linguistics these ideas were invalid of fallacies. Considering this, the one that was not a fallacy found by structural linguistics in traditional grammar was the morphology fallacy, considering morphology refers to the structure of words and both structural and traditional linguistics had a similar perspective; also, the main fallacies found by linguistics were the semantic, logical and normative fallacy.
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Suppose you are thinking about buying a 9 year. $1,000 par value bond with a 11% coupon. Interest on this bond is paid annually. If your required rate of return is 8% annually. how much should you pay for the bond? (Round your answer to two decimal point)
You should pay $1,117.96 for the 9-year, $1,000 par value bond with an 11% coupon paid annually and a required rate of return of 8% annually.
How do you calculate the price of a bond with a given coupon rate, maturity, and required rate of return?To calculate the price of a 9-year, $1,000 par value bond with an 11% coupon paid annually, and a required rate of return of 8% annually, follow these steps:
Step 1: Calculate the annual coupon payment.
Coupon payment = Par value ˣ Coupon rate
Coupon payment = $1,000 ˣ 0.11
Coupon payment = $110
Step 2: Calculate the present value of the coupon payments.
PV_Coupon = (Coupon payment / required rate of return) ˣ (1 - (1 + required rate of return)^(-years))
PV_Coupon = ($110 / 0.08) ˣ (1 - (1 + 0.08) ⁻⁹
PV_Coupon = $687.32 (rounded to two decimal points)
Step 3: Calculate the present value of the par value at maturity.
PV_Par = Par value / (1 + required rate of return)^years
PV_Par = $1,000 / (1 + 0.08)⁹
PV_Par = $430.64 (rounded to two decimal points)
Step 4: Calculate the bond price by adding the present values of the coupon payments and par value.
Bond price = PV_Coupon + PV_Par
Bond price = $687.32 + $430.64
Bond price = $1,117.96 (rounded to two decimal points)
So, you should pay $1,117.96 for the 9-year, $1,000 par value bond with an 11% coupon paid annually and a required rate of return of 8% annually.
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Had to split question into two photos for words to remain clear and visible.
Question 1 Your firm receives an average of 74895 remitances per month with an average face value of $10,4 to company headquarters. The average mail eley is 3 days. The typical remittance remains at head volable in 2 days. Assume that the opportunity investment rate is 5% and that it costs your firm $0. current cash collection system?
The cost of the current cash collection system is $533.27 per month.
How to calculate the cost? To calculate the cost, we will use the given information and apply the opportunity investment rate.
The firm receives 74,895 remittances per month, with an average face value of $10.4 each. The average mail delay is 3 days, and the remittance stays at headquarters for 2 days. The opportunity investment rate is 5%.
Step 1: Calculate the total face value of remittances per month
74,895 remittances * $10.4 = $778,908
Step 2: Calculate the average delay in days
3 days (mail delay) + 2 days (at headquarters) = 5 days
Step 3: Convert the delay to a fraction of a year
5 days / 365 days = 0.0137
Step 4: Calculate the opportunity cost
Opportunity cost = Total face value * Opportunity investment rate * Fraction of a year
$778,908 * 0.05 * 0.0137 = $533.27
So, the cost of the current cash collection system is $533.27 per month.
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brenner to. calculate direct manufacturing labor variances and has the following information: actual hours worked: 300 standard hours: 325 actual rate per hour: $23 standard rate per hour: $18 given the information above, which of the following is correct regarding the direct manufacturing labor variances? a. the price and efficiency variances are favorable b. the price and efficiency variances are unfavorable c. the price variance is favorable, while the efficiency variance is unfavorable d. the price variance is unfavorable, while the efficiency variance is favorable
Regarding the direct manufacturing labor variances, the statement "the price variance is favorable, while the efficiency variance is unfavorable" is correct. Option C is correct.
Based on the given information, we can calculate the direct manufacturing labor variances as follows:
Actual labor cost = Actual hours worked × Actual rate per hour
= 300 × $23
= $6,900
Standard labor cost = Standard hours × Standard rate per hour
= 325 × $18
= $5,850
Price variance = Actual labor cost - (Actual hours worked x Standard rate per hour)
= $6,900 - (300 × $18)
= $6,900 - $5,400
= $1,500 (favorable)
Efficiency variance = (Actual hours worked × Standard rate per hour) - Standard labor cost
= (300 x $18) - $5,850
= $5,400 - $5,850
= -$450 (unfavorable)
Therefore, the price variance is favorable ($1,500) while the efficiency variance is unfavorable (-$450). Therefore, option C is correct.
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The Didn'tKnowFinanceWasSoFun Company issued a $1,000 par value, 5% coupon, 12 year bond. The interest is paid semiannually and the market is currently requiring 7% on this risk level bond. What is the current value of the bond?
SHOW ALL WORK FOR FULL CREDIT USING EITHER THE MYLAB Calculator or the TI BAII PLUS Calculator.
The current value of the bond can be calculated using the present value formula:
PV = (C / (1 + r/n)^(nt)) + (FV / (1 + r/n)^(nt))
Where:
PV = Present value of the bond
C = Coupon payment (5% of $1,000 = $50)
r = Required rate of return (7%)
n = Number of compounding periods per year (2, since interest is paid semiannually)
t = Number of years until maturity (12)
Plugging in the values, we get:
PV = (50 / (1 + 0.07/2)^(212)) + (1000 / (1 + 0.07/2)^(212))
PV = $609.65
Therefore, the current value of the bond is $609.65.
To calculate this using a calculator such as the TI BAII Plus, we would enter:
N = 24 (2 compounding periods per year for 12 years)
I/Y = 3.5 (7% annual rate divided by 2 compounding periods per year)
PMT = 25 (5% coupon payment semiannually on $1,000 par value)
FV = 1000 (par value at maturity)
And then press the PV button to get the present value of $609.65.
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Problem 15-5 Calculating Flotation Costs (LO3] The Meadows Corporation needs to raise $53 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $55 per share and the company's underwriters charge a spread of 8 percent, how many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions, rounded to the nearest whole number, e.g., 1,234,567.) Number of shares offered ences__
Meadows Corporation needs to sell approximately 1,047,427 shares to raise $53 million for its expansion.
To calculate the number of shares needed to be sold, we will first determine the net proceeds per share and then divide the total amount needed by the net proceeds per share.
The terms used in the solution are:
- Offer price: The price at which new shares will be sold to the public
- Underwriters' spread: The percentage charged by the underwriters as their fees
- Net proceeds per share: The amount the company receives after deducting underwriting fees
1. Calculate the underwriting fees per share: Offer price x Underwriters' spread = $55 x 0.08 = $4.40
2. Calculate the net proceeds per share: Offer price - Underwriting fees per share = $55 - $4.40 = $50.60
3. Divide the total amount needed by the net proceeds per share: $53 million / $50.60 = 1,047,427.44 shares
Therefore, Meadows Corporation needs to sell approximately 1,047,427 shares to raise $53 million for its expansion.
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A 7% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and a current yield of 7.6370%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places
Bond’s price: $
YTM: %
Bond X is noncallable and has 20 years to maturity, a 10% annual coupon, and a $1,000 par value. Your required return on Bond X is 9%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 8.5%. How much should you be willing to pay for Bond X today? (Hint: You will need to know how much the bond will be worth at the end of 5 years.) Do not round intermediate calculations. Round your answer to the nearest cent.
$
A bond always trades at par when the yield to maturity and coupon rate are equal. Both the price bond coupon and the yield to maturity are set at 6% in this scenario. Therefore, the bond price must be $1,000.
The bond would have been priced above $1,000 as a premium bond if the yield to maturity had been lower than the coupon rate, and below $1,000 as a discount bond if the YTM had been higher than the coupon rate.
Par value of $1,000
Coupon of 8% equals $80 Maturity of 4 years Frequency of 2 (semi-annual)
yield as of today: 8.3505
With the aid of a ytm calculator, the bond's ytm can be computed as follows:
Bond price = 80/.083505 = $958
It is the discount rate at which the bond price and the present value of future cash flows are equal.
The answer is 9.28% ytm = 9.28%.
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Substantive procedures to examine the occurrence assertion for accounts payable include:
A) selecting a sample of vouchers and agreeing them to authorized purchase orders.
B) selecting a sample of vouchers and tracing them to the purchases journal.
C) comparing dates on vouchers to dates in the purchases journal.
D) recomputing the mathematical accuracy of a sample of vendor invoices.
Substantive procedures for examining the occurrence assertion for accounts payable involve procedures designed to ensure that all transactions recorded in the accounts payable system are valid and have taken place.
A) Selecting a sample of vouchers and agreeing them to authorized purchase orders is a substantive procedure which is used to ensure that all payments recorded in the accounts payable system are valid and have been authorized.
B) Selecting a sample of vouchers and tracing them to the purchases journal is a substantive procedure which is used to ensure that all payments recorded in the accounts payable system have been properly recorded in the accounting records
C) Comparing dates on vouchers to dates in the purchases journal is a substantive procedure which is used to ensure that all payments recorded in the accounts payable system have been properly dated in the accounting records.
D) Recomputing the mathematical accuracy of a sample of vendor invoices is a substantive procedure which is used to ensure that all payments recorded in the accounts payable system have been properly recorded and calculated in the accounting records.
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priestly corporation's revenues for the year ended december 31, 2020, were as follows: consolidated revenue per the income statement: $1,400,000 division 1 intersegment sales: $200,000 division 2 intersegment sales: $80,000 for purposes of the revenue test, what amount will be used as the benchmark for determining whether a segment is reportable?
For purposes of the revenue test, the benchmark for determining whether a segment is reportable for Priestly Corporation is $112,000.
To calculate the benchmark for determining whether a segment is reportable, we first need to find the total external revenue. We can do this by subtracting intersegment sales from the consolidated revenue per the income statement.
Total External Revenue = Consolidated Revenue - (Division 1 Intersegment Sales + Division 2 Intersegment Sales)
Total External Revenue = $1,400,000 - ($200,000 + $80,000)
Total External Revenue = $1,400,000 - $280,000
Total External Revenue = $1,120,000
Next, we need to calculate the 10% benchmark, as a segment is generally considered reportable if its revenue is 10% or more of the total external revenue.
Benchmark = Total External Revenue * 10%
Benchmark = $1,120,000 * 0.1
Benchmark = $112,000
For purposes of the revenue test, the benchmark for determining whether a segment is reportable for Priestly Corporation is $112,000.
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All of the following are factors which one should include in the decision to refinance EXCEPT.
A. The consideration of the tax gains from interest saved.
B. The opportunity cost of investing the new loan fees elsewhere and not refinancing.
C. Bringing future savings into present value.
D. All of the above should be included in the decision to refinance.
The correct answer is D. All of the above factors should be considered in the decision to re-finance.
When considering whether to refinance, it's important to think about the potential tax benefits of the interest savings, as well as the opportunity cost of investing the new loan fees elsewhere.
It's also crucial to bring future savings into present value so that you can compare the total cost of your current mortgage to the total cost of the new loan. By taking all of these factors into account, you can make an informed decision about whether refinancing is the right choice for you.
Remember, however, that the decision to refinance should be based on your individual circumstances and financial goals, so it's important to consult with a financial advisor before making any major financial decisions.
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7Cost of common stock equity-CAPM Netflix common stock has a beta, b, of 1.1. The risk-free rate is 5%, and the expected market return is 9%. a. Determine the risk premium on Netflix common stock. b. D etermine the required return that Netflix common stock should provide.c. Determine Netflix's cost of common stock equity using the CAPM.
a) The risk premium on Netflix common stock is 4%.
b) The required return that Netflix common stock should provide is 9.4%.
c) Netflix's cost of common stock equity using the CAPM is 9.4%.
a. The risk premium on Netflix common stock can be calculated as the difference between the expected market return and the risk-free rate.
Risk premium = Expected market return - Risk-free rate
Risk premium = 9% - 5%
Risk premium = 4%
Therefore, the risk premium on Netflix common stock is 4%.
b. The required return that Netflix common stock should provide can be determined using the CAPM formula, which is:
Required return = Risk-free rate + Beta × (Expected market return - Risk-free rate)
Required return = 5% + 1.1 × (9% - 5%)
Required return = 9.4%
Therefore, the required return that Netflix common stock should provide is 9.4%.
c. Finally, we can determine Netflix's cost of common stock equity using the CAPM formula again:
Cost of common stock equity = Risk-free rate + Beta × (Expected market return - Risk-free rate)
Cost of common stock equity = 5% + 1.1 × (9% - 5%)
Cost of common stock equity = 9.4%
Therefore, Netflix's cost of common stock equity using the CAPM is 9.4%.
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The auditor should consider all of the following when deciding whether substantive procedures will be performed at an interim date except:Whether business conditions will change after the interim date.The ability to examine the remaining period.The level of control risk.Scheduling conflicts in the audit firm that make interim testing more convenient
The correct answer to this question is "Scheduling conflicts in the audit firm that make interim testing more convenient." The auditor should always prioritize the quality and effectiveness of the audit procedures over convenience.
The auditor should consider all other factors when deciding whether substantive procedures will be performed at an interim date, including whether business conditions will change after the interim date, the ability to examine the remaining period, and the level of control risk. Scheduling conflicts in the audit firm should not influence the decision to perform substantive procedures at an interim date.
When deciding whether substantive procedures will be performed at an interim date, the auditor should consider all of the following except "scheduling conflicts in the audit firm that make interim testing more convenient."
1. Whether business conditions will change after the interim date - This is important as it can affect the accuracy and relevance of the information obtained during the interim testing.
2. The ability to examine the remaining period - The auditor should ensure that they can effectively examine the remaining period to provide a comprehensive evaluation of the financial statements.
3. The level of control risk - Understanding the level of control risk helps the auditor determine the extent of substantive procedures necessary to obtain reasonable assurance about the accuracy of the financial statements.
Scheduling conflicts in the audit firm should not be a primary consideration when deciding whether to perform substantive procedures at an interim date, as it is more important to focus on the factors that directly impact the quality and effectiveness of the audit.
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Suppose you bought 750 shares of stock at an initial price of $49 per share. The stock paid a dividend of $.52 per share during the following year, and the share price at the end of the year was $44.
What is the total rate of return on the investment? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
The total rate of return on the investment is -9.14%, indicating a negative return on your investment.
How to determine the total rate of returnTo calculate the total rate of return on your investment, we need to consider the initial price, dividend, and final share price.
Here's the breakdown:
1. Initial investment: 750 shares * $49 per share = $36,75
2. Dividend income: 750 shares * $0.52 per share = $390
3. Final value of shares: 750 shares * $44 per share = $33,000
4. Total earnings (dividends + change in share value): $390 + ($33,000 - $36,750) = -$3,360
5. Total rate of return:
(Total earnings / Initial investment) * 100 = (-$3,360 / $36,750) * 100 = -9.14%
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Rose was a successful PR due to the fact that she is able to befriend all her clients and encourage them to invest in the business. Her company always sends her to the toughest clients and she comes back with the deal in the bag. Rose believes that happiness at life leads to happiness at work, according to her belief, she is characterized by a high _____? *
A. Conscientiousness and Openness at work
B. Conscientiousness at work
C. Extraversion
D. Emotional stability and openness at work
Rose believes that happiness at life leads to happiness at work, according to her belief, she is characterized by a high extraversion. The correct option is c) Extraversion.
As a successful PR, her ability to befriend clients and encourage them to invest in the business demonstrates her outgoing and sociable nature, which are key traits of extraversion. She excels at building relationships and persuading people, making her an ideal candidate to handle tough clients.
Extraverts tend to be confident, assertive, and energetic, which allows them to navigate social situations with ease. In the context of Rose's job, these qualities help her secure deals and achieve success at work. Moreover, her belief that happiness in life leads to happiness at work further reflects her optimistic and positive outlook, another characteristic of extraversion.
While conscientiousness and openness at work (A) are important traits for success in various fields, these are not the primary characteristics that set Rose apart as a PR professional. Similarly, conscientiousness at work (B) alone does not capture her unique ability to build relationships and persuade clients.
Lastly, emotional stability and openness at work (D) may contribute to her overall well-being, but they do not directly relate to her success in connecting with clients and securing deals. Therefore, the most appropriate answer is Extraversion (C), which highlights her exceptional social skills and optimistic nature that ultimately drive her success in the PR industry. The correct option is c) Extraversion.
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a business model a. is only important for startups with a large amount of uncertainty. b. is intended to provide evidence on whether a concept is viable, not if it can be profitable. c. is made up of a revenue model, a cost structure, and key resource requirements. d. forces the entrepreneur to be more disciplined about financial projections.
A business model (c) is made up of a revenue model, a cost structure, and key resource requirements. It helps entrepreneurs create a sustainable plan to generate income, control expenses, and allocate resources efficiently. Additionally, a well-structured business model (d) forces the entrepreneur to be more disciplined about financial projections, ensuring the long-term viability and profitability of the business.
A business model is a critical component for any business, regardless of its size or stage of development. It is not only important for startups with a large amount of uncertainty but also for established businesses looking to grow and evolve. A business model is intended to provide evidence on whether a concept is viable and profitable. It is made up of a revenue model, a cost structure, and key resource requirements. Developing a business model forces the entrepreneur to be more disciplined about financial projections, which is essential for success. Therefore, having a solid business model is crucial for any business looking to thrive in today's competitive market.
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Assume a $1,000 face value bond has a coupon rate of 7.8 percent paid semiannually and has an eight-year life.
(a)
If investors are willing to accept a 10.2 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? (Round final answer to nearest dollar amount.)
Present value $Type your answer here
(b)
What is the value of the bond if investors wanted an 7.3-percent rate of return? (Round final answer to nearest dollar amount.)
(a) The present value of a $1,000 face value bond with a 7.8% coupon rate paid semiannually, an eight-year life, and a 10.2% required rate of return is $936.
(b) The value of the bond if investors wanted a 7.3% rate of return is $1,059.
a)
1. Calculate the semiannual coupon payment: 0.078 * $1,000 / 2 = $39
2. Determine the number of periods: 8 years * 2 = 16 periods
3. Find the semiannual required rate of return: 0.102 / 2 = 0.051
4. Calculate the present value of the coupon payments: $39 * (1 - (1 + 0.051)⁻¹⁶) / 0.051 = $485.30
5. Calculate the present value of the face value: $1,000 / (1 + 0.051)¹⁶ = $450.70
6. Add the present values: $485.30 + $450.70 = $936
b)
1. Calculate the semiannual required rate of return: 0.073 / 2 = 0.0365
2. Calculate the present value of the coupon payments: $39 * (1 - (1 + 0.0365)⁻¹⁶) / 0.0365 = $609.30
3. Calculate the present value of the face value: $1,000 / (1 + 0.0365)¹⁶ = $449.70
4. Add the present values: $609.30 + $449.70 = $1,059
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if the cost and revenue numbers in the table will continue forever (permanently), what is the best option for this firm?
The best option for the firm would be to shut down its operations, as its total revenue ($200) is less than its total variable costs ($250).
If the firm continues operating, it will incur losses equal to the difference between its total revenue and total variable costs, which is $50. Therefore, it would be better for the firm to shut down in the short run and avoid incurring any additional losses.
In the long run, the firm may need to consider other options such as restructuring its operations or exiting the market. It is important to note that this analysis assumes that the firm is unable to increase its prices or reduce its variable costs.
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In the assignment to class 10, you proposed a property tax incentive for a business located in Newark. Assume that the business occupied a historic building with a current market value of $1 million (with a further need of $1 million rehabilitation investment) and would also benefit from both a federal historic tax credit (HTC) and a state historic tax credit (unlike almost 30 other states, New Jersey currently does not have a state HTC).
Consult the Schwartz 2016 reading on state tax credits throughout the United States. Based on that, propose a state HTC for New Jersey and give the basis (arguments) for your proposal. Then describe and illustrate a package of incentives for the business that combines property tax incentives (your proposal for Class 10) and both the federal HTC and your proposed state HTC.
Based on the Schwartz 2016 reading, it is recommended to propose a state historic tax credit for New Jersey.
The Schwartz 2016 reading highlights the economic benefits of state historic tax credits, including increased job creation, increased property values, and increased tourism.
Therefore, proposing a state historic tax credit for New Jersey would likely have positive economic impacts on the state. In addition to the proposed property tax incentives from Class 10, the business occupying the historic building could also benefit from both the federal HTC and the proposed state HTC.
These tax credits would provide financial incentives for the rehabilitation of the historic building and would help offset some of the costs associated with the project.
The combination of these incentives could encourage the business to invest in the rehabilitation of the historic building, which would not only benefit the business but also the surrounding community.
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plutonic inc. had $400 million in taxable income for the current year. plutonic also had an increase in deferred tax liabilities of $50 million and recognized tax expense of $80 million. the company is subject to a tax rate of 25%. the change in deferred tax assets (ignoring any valuation allowance) was a/an:
$50 million was the change in the deferred tax liabilities and to determine the change in tax assets, more information is needed
Beginning and ending balances of deferred tax assets are needed to actually determine the change in deferred tax assets
But we can calculate change in deferred tax liabilities
We have to multiply taxable income of $400 by tax rate of 25%, which will give us tax liability of $100 million
We can subtract beginning balance from the ending balance to find the change in the deferred tax liabilities
Since it's given that there was an increase in deferred tax liabilities of $50 million, we make assumption that ending balance was greater than beginning balance by $50 million
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You are considering how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 69% of the money in GoldFinger (currently $27/share), 13% of the money in Moosehead (currently $98/share), and the remainder in Venture Associates (currently $8/share). If GoldFinger stock goes up to $44/share, Moosehead stock drops to $63/share, and Venture Associates stock rises to $15 per share.
a. What is the new value of the portfolio?
b. What return did the portfolio earn?
c. If you do not buy or sell shares after the price change, what are your new portfolio weights?
a. The new value of the portfolio would be:
GoldFinger: 0.69 x $44/share = $30.36/share
Moosehead: 0.13 x $63/share = $8.19/share
Venture Associates: 0.18 x $15/share = $2.70/share
Total value of the portfolio = ($30.36 x 0.69 + $8.19 x 0.13 + $2.70 x 0.18) x $200,000 = $20,322 + $2,448 + $972 = $23,742
b. The return of the portfolio can be calculated using the formula:
Return = (New value of the portfolio - Initial value of the portfolio) / Initial value of the portfolio
Return = ($23,742 - $200,000) / $200,000 = -0.881
Therefore, the portfolio has a negative return of 88.1%.
c. If there are no changes in the shares held, the new portfolio weights would be:
GoldFinger: ($30.36/share x 27,000 shares) / $23,742 = 0.346 or 34.6%
Moosehead: ($8.19/share x 2,060 shares) / $23,742 = 0.071 or 7.1%
Venture Associates: ($2.70/share x 11,940 shares) / $23,742 = 0.136 or 13.6%
The sum of the weights is 1, which represents the total portfolio. Therefore, the new portfolio weights for each stock would be GoldFinger (34.6%), Moosehead (7.1%), and Venture Associates (13.6%).
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: how can an es be used to report employee fraud to a manager or officer? think about the information that could be entered in an es.
An ES, or Ethics Hotline System, can be an effective tool for employees to report instances of fraud, misconduct, or unethical behavior to their managers or officers. When reporting employee fraud through an ES, it is important to include the following information:
1. Date and time of the incident: Provide specific details about when the incident occurred, such as the date, time, and location.
2. Description of the incident: Describe the incident in detail, including the nature of the fraud, who was involved, and how it occurred.
3. Evidence: Provide any evidence you have to support your claim, such as documents, emails, or witness statements.
4. Names of individuals involved: Provide the names of any individuals who were involved in the incident or who may have witnessed it.
5. Contact information: Provide your contact information so that the manager or officer can follow up with you if necessary.
By including this information in an ES report, employees can help their managers or officers investigate and address instances of fraud or unethical behavior within the company.
The ES system can also provide a safe and confidential way for employees to report incidents without fear of retaliation or retribution.
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Find the duration of a 7,2% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7.2%. What is the duration if the yield to maturity is 11.4%? (Do not round intermediate calculations. Round your answers to 4 decimal places.)YTM Duration 7.2%YTM 11.4% YTM
The duration of the bond is 2.6736 when the YTM is 7.2% and 2.3747 when the YTM is 11.4%.
Calculate the duration of a bond?The formula to calculate the duration of a bond is:
Duration = (1/YTM) * [1 - 1/(1+YTM)^n]/(1 - 1/(1+YTM))
Where:
YTM = yield to maturity
n = number of periods until maturity
Using this formula, we can find:
For 7.2% YTM:
Duration = (1/0.072) * [1 - 1/(1+0.072)^3]/(1 - 1/(1+0.072))
Duration = 2.6736
For 11.4% YTM:
Duration = (1/0.114) * [1 - 1/(1+0.114)^3]/(1 - 1/(1+0.114))
Duration = 2.3747
Therefore, the duration of the bond is 2.6736 when the YTM is 7.2% and 2.3747 when the YTM is 11.4%.
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jackson inc.'s most recent dividend was $2.25 per share. the annual growth rate in dividends is expected to be 6% and jackson's shareholders require a return of 11%. the stock price is closest to: a. $47.70. b. $45.00. c. $71.55. d. $67.50.
The inventory price of Jackson Inc. is closest to $45.00 the answer is option (b).
Primarily based on the Gordon growth model, the stock rate of Jackson Inc. may be calculated as the dividend consistent with proportion divided by using the distinction between the required return and the anticipated growth rate
We will use the Gordon boom model to calculate the inventory price of Jackson Inc.:
Inventory price = Dividend / (Required return - Dividend growth charge)
Substituting the given values:
Inventory rate = $2.25 / (0.11 - 0.06)
Stock rate = $2.25 / 0.05
Inventory rate = $45.00
The Jackson Inc. stock charge is most similar to $45.00.
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suppose that in a given month $38 million is deposited into the banking system while $43 million is withdrawn. also suppose that the fed has set the reserve requirement at 20 percent and that banks have no excess reserves at the beginning of the month. what is the maximum amount of new checkable-deposit money that can be created (or removed) by the banking system as a result of these deposits and withdrawals?
The result is negative, it means that the maximum amount of checkable-deposit money that can be removed by the banking system as a result of these deposits and withdrawals is $25 million.
To determine the maximum amount of new checkable-deposit money that can be created or removed, we must first find the net change in deposits, which is the difference between the total deposits and total withdrawals. In this case:
Net change in deposits = Total deposits - Total withdrawals
Net change in deposits = $38 million - $43 million
Net change in deposits = -$5 million
Now, we need to calculate the maximum change in checkable-deposit money using the money multiplier. The money multiplier is the inverse of the reserve requirement, so:
Money multiplier = 1 / Reserve requirement
Money multiplier = 1 / 20%
Money multiplier = 1 / 0.20
Money multiplier = 5
Next, we multiply the net change in deposits by the money multiplier to find the maximum change in checkable-deposit money:
Maximum change in checkable-deposit money = Net change in deposits * Money multiplier
Maximum change in checkable-deposit money = -$5 million * 5
Maximum change in checkable-deposit money = -$25 million
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al and bill operate the only two barber shops in a small town. they might try to form a cartel to charge a high price for hair cuts. the payoffs represent their daily from charging high and low prices. which cell represents a nash equilibrium? question 7 options: a. b. c. d. question 8 (1 point)
The cell with the payoff of (Al: $100, Bill: $100) represents a Nash equilibrium.
In this cell, both Al and Bill have the same payoff and neither has an incentive to deviate from the cartel agreement. If one of them tries to lower the price, customers will flock to their shop and the other will increase its price to capture the additional customers.
This will result in both shops losing profits. Therefore, they will both stick to the agreement and charge a high price.
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The current price of Janco stock is $5.55. Dividends are expected to grow at 5% indefinitely and the most recent dividend paid yesterday was $3.52. What is the required rate of return for Janco's stock? (Show your answers to four decimal places. O.XXXX) The current price of Janco stock is $5.55. Dividends are expected to grow at 5% indefinitely and the most recent dividend paid yesterday was $3.52. What is the capital gains yield on Janco's stock? (Show your answers to TWO decimal places. O.XX)
The required rate of return for Janco's stock is 71.61% (0.7161 to four decimal places), and the capital gains yield on Janco's stock is 66.61% (0.66 to two decimal places).
To find the required rate of return for Janco's stock, we will use the Gordon Growth Model (Dividend Discount Model), which is given by the formula:
Price = D1 / (r - g)
Where:
Price = Current stock price ($5.55)
D1 = Next year's expected dividend (most recent dividend * (1 + dividend growth rate))
r = Required rate of return
g = Dividend growth rate (5% or 0.05)
Step 1: Calculate next year's expected dividend (D1).
D1 = $3.52 * (1 + 0.05) = $3.52 * 1.05 = $3.696
Step 2: Plug the values into the formula and solve for the required rate of return (r).
$5.55 = $3.696 / (r - 0.05)
Step 3: Rearrange the equation to isolate r.
r = ($3.696 / $5.55) + 0.05 = 0.6661 + 0.05 = 0.7161
The required rate of return for Janco's stock is 71.61% (0.7161 to four decimal places).
Now, to find the capital gains yield on Janco's stock, we can use the following formula:
Capital gains yield = Required rate of return - Dividend growth rate
Capital gains yield = 0.7161 - 0.05 = 0.6661
The capital gains yield on Janco's stock is 66.61% (0.66 to two decimal places).
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corporation is issuing preferred stock today. the stock will begin paying an annual $5.5 dividend in year 3. if you require a return of 6%, what should you pay today for a share?
You should pay $4.567 today for a share of the preferred stock, if you require a return of 6%.
To calculate the present value of the preferred stock, we need to use the formula for the present value of a perpetuity:
PV = C / r
where PV is the present value, C is the annual cash flow (in this case, the $5.5 dividend), and r is the required rate of return.
Since the stock will begin paying the dividend in year 3, we need to discount the cash flow back to the present value using the formula for the present value of a single cash flow:
PV = FV / (1 + r)ⁿ
where FV is the future value of the cash flow ($5.5), n is the number of years from the cash flow to the present (which is 3), and r is the required rate of return.
PV = $5.5 / (1 + 0.06)³
PV = $4.567
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Jonathan Williams is considering an offer to sell his medical practice, allowing him to retire five years early. He has been offered $500,000 for his practice and he can invest this amount in an account earning 10% per year, compounded annually. If the practice is expected to generate the following cash flows should Jonathan accept this offer and retire now?
Year Cash Flow
1 $150,000
2 $150,000
3 $135,000
4 $115,000
5 $100,000
In evaluating the offer to sell his medical practice, Jonathan Williams must consider the present value of the cash flows associated with it.
If the practice is expected to generate the cash flows noted above, then the offer of $500,000 is likely to be a reasonable one. This amount, invested in an account earning 10% per year compounded annually, would generate a total of $825,000 over the five years.
This amount is significantly higher than the cash flows associated with the practice, indicating Jonathan should accept the offer and retire early.
Furthermore, the offer of $500,000 provides Jonathan with the ability to retire five years early, allowing him to enjoy the rest of his life free from the stress of running a practice. Therefore, Jonathan should accept the offer and retire early.
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which statement is not true regarding government intervention in the economy? if the economy is doing badly, the government should cut spending to improve it. unemployment insurance is an automatic economic stabilizer. progressive income tax is a form of automatic stabilizer. most suggest that the government should promote macroeconomic stability.
The statement that is not true regarding government intervention in the economy is: "if the economy is doing badly, the government should cut spending to improve it."
This is because during an economic downturn, the government often increases spending to stimulate the economy and create jobs. Cutting spending during a recession can further harm the economy and worsen the unemployment rate. The other statements are true - unemployment insurance is an automatic stabilizer that helps to support individuals during economic downturns, progressive income tax can help to reduce income inequality and stabilize the economy, and promoting macroeconomic stability is generally seen as a goal of government intervention in the economy.
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a stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. once the stop price is touched in the market, the stop-limit order becomes a limit order to buy or to sell at the limit price. which of the following are true? all of the options a stop-limit order may never get filled if the stock's price never reaches the specified limit price. the use of stop limit orders is much more frequent for stocks that trade on an exchange than in the over-the-counter (otc) market. the benefit of a stop-limit order is that the investor can control the price at which the trade will get executed.
A stop-limit order is an order that combines the features of a stop order and a limit order, allowing an investor to buy or sell a stock once the stop price is reached.
The following statements are true:
1. A stop-limit order may never get filled if the stock's price never reaches the specified limit price, as the order only becomes active once the stop price is touched.
2. The use of stop-limit orders is more frequent for stocks that trade on an exchange than in the over-the-counter (OTC) market, as they provide more control and predictability for investors.
3. The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed, ensuring that they achieve their desired entry or exit point.
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if the short-run aggregate supply curve is upward sloping, which of the following will cause inflation? responses an increase in long-run aggregate supply an increase in long-run aggregate supply an increase in short-run aggregate supply an increase in short-run aggregate supply an increase in aggregate demand an increase in aggregate demand a decrease in aggregate demand a decrease in aggregate demand a decrease in aggregate demand and an increase in aggregate supply
An increase in aggregate demand will cause inflation when the short-run aggregate supply curve is upward-sloping. This is because as aggregate demand increases, firms will need to increase production in the short run, leading to higher prices due to limited supply. The correct option is an increase in aggregate demand.
To explain further, when the short-run aggregate supply (SRAS) curve is upward-sloping, it indicates that as the price level increases, the number of goods and services supplied by producers also increases. Inflation occurs when there is a sustained increase in the general price level.
When there is an increase in aggregate demand (AD), it shifts the AD curve to the right. This results in a higher equilibrium price level and output, which leads to inflation. Other options such as an increase in short-run or long-run aggregate supply would not cause inflation, as these changes would typically lower the price level by increasing the number of goods and services supplied. Similarly, a decrease in aggregate demand would not cause inflation, as it would lead to a decrease in the price level.
Thus the correct option is an increase in aggregate demand.
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