True Tech Industries:
Sold 1,000 Tri-Box systems to CompStores on January 1, 2021 for 500,000.
Signed a contract with ProSport Gaming to add their online games to the Tri-Net network.
Received 300,000 upfront from ProSport Gaming for six months of featured access.
Estimated a 25% chance to achieve usage target and receive a 180,000 bonus.
Revised estimate to 75% chance in April based on usage increasing from 2,000 hours in January to 4,000 hours in March.
Received 180,000 cash bonus in July.
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The Capital Asset Pricing Model (CAPM) predicts that a stock
will provide 16.20% expected return. The return on the market
portfolio is 14%. The beta for the stock is 1.6. Calculate the
risk-free rate
In this case, with an expected return of 16.20% for the stock, a market portfolio return of 14%, and a beta of 1.6, the risk-free rate is 6.6%.
The Capital Asset Pricing Model (CAPM) is a financial model that calculates the expected return on investment by considering the risk-free rate, the expected return of the market portfolio, and the beta of the stock. The formula for CAPM is:
Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)
In this case, the expected return is given as 16.20%, the market portfolio return is 14%, and the beta is 1.6. We need to calculate the risk-free rate.
Rearranging the formula, we get:
Risk-Free Rate = (Expected Return - Beta * Market Return) / (1 - Beta)
Substituting the given values:
Risk-Free Rate = (16.20% - 1.6 * 14%) / (1 - 1.6)
Calculating the numerator:
16.20% - 1.6 * 14% = 16.20% - 22.4% = -6.2%
Calculating the denominator:
1 - 1.6 = -0.6
Finally, divide the numerator by the denominator: Risk-Free Rate = (-6.2%) / (-0.6) = 6.6% Therefore, the risk-free rate is 6.6%.
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Question 6
Alexander Railroads has a dividend reinvestment program for shareholders. From 2013 to 2017, the company had the following share prices and dividends.
Year Share price after dividend dividend per share
2013 $48 $2.50
2014 $50.75 $2.75
2015 $55.15 $3.00
2016 $60.50 $3.50
2017 $61.25 $4.00
If you started with 100 shares of stock at $48 per share and participated fully in the DRIP, what would be the total value of your shares at the end of 2017? Round up to the nearest penny. No dollar signs
The total value of your shares at the end of 2017 would be $6142.53.
To calculate the total value of your shares at the end of 2017, we need to consider the effect of dividend reinvestment and the share price changes over the years.
Here are the steps to calculate the total value:
Calculate the number of shares obtained through dividend reinvestment each year:
In 2013, with a dividend of $2.50 per share, you would receive 2.50 / 48 = 0.052 shares.
In 2014, with a dividend of $2.75 per share, you would receive 2.75 / 50.75 = 0.054 shares.
In 2015, with a dividend of $3.00 per share, you would receive 3.00 / 55.15 = 0.054 shares.
In 2016, with a dividend of $3.50 per share, you would receive 3.50 / 60.50 = 0.058 shares.
In 2017, with a dividend of $4.00 per share, you would receive 4.00 / 61.25 = 0.065 shares.
Calculate the total number of shares at the end of each year:
In 2013, you would have 100 + 0.052 = 100.052 shares.
In 2014, you would have 100.052 + 0.054 = 100.106 shares.
In 2015, you would have 100.106 + 0.054 = 100.160 shares.
In 2016, you would have 100.160 + 0.058 = 100.218 shares.
In 2017, you would have 100.218 + 0.065 = 100.283 shares.
Calculate the total value of your shares at the end of 2017:
Multiply the number of shares at the end of 2017 (100.283) by the share price of $61.25.
Total value = 100.283 * $61.25 = $6142.53 (rounded up to the nearest penny).
Therefore, the total value of your shares at the end of 2017 would be $6142.53.
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What must you do if you want to use a user account's job title attribute to restrict access to a folder using the permission entry dialog box?
To use a user account's job title attribute to restrict access to a folder using the permission entry dialog box, you must first ensure that the job title attribute is populated for all users who will need access to the folder. Once the job title attribute is populated, you can then use it to create a permission entry rule that grants or denies access to the folder based on the user's job title.
The permission entry dialog box allows you to specify the users and groups who have access to a folder, as well as the level of access they have. To use the job title attribute to restrict access to a folder, you would need to create a permission entry rule that specifies the job title attribute as the condition for granting or denying access.
For example, you could create a rule that grants access to all users with the job title "Sales Representative" and denies access to all users with the job title "Accountant".
Here are the steps on how to create a permission entry rule that uses the job title attribute:
Open the permission entry dialog box for the folder you want to restrict access to.
Click the "Advanced" button.
In the "Condition" field, select the "Job Title" attribute.
In the "Value" field, enter the job title that you want to use to restrict access.
Click the "OK" button.
Once you have created the permission entry rule, users with the specified job title will be granted or denied access to the folder based on the rule you created.
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A loan of $3170 is repaid by a single payment of $4600 in 5.3 years? What rate of interest with monthly compounding was charged?
6.7%
7.09%
7.3%
7.15%
7.05%
The rate of interest with monthly compounding charged was 7.09%. Thus, the option is 7.09%.
In order to solve for the interest rate charged on the loan, we can use the formula for compound interest.
This formula is given by:
A = P(1 + r/n)^(nt)
where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years.
So in this case, we have:
P = 3170 (the principal amount)
A = 4600 (the final amount)
t = 5.3 (the time in years)
n = 12 (since the interest is compounded monthly)
We can solve for the annual interest rate r using the formula:
r = n[(A/P)^(1/nt) - 1]
Substituting in the values we have:
r = 12[(4600/3170)^(1/(12*5.3)) - 1]
r = 0.0709 or 7.09%
Therefore, the rate of interest with monthly compounding charged on the loan was 7.09%.Therefore, the option is 7.09%.
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Explain the two different concepts of purchasing power parity
PPP and how they relate to the Law of one price.
explain the balassa-samuelson Effect and its implications for
PPP
The two different concepts of Purchasing Power Parity (PPP) are absolute PPP and relative PPP.
Absolute PPP states that the exchange rate between two currencies should equal the ratio of the price levels of a basket of goods in each country. Relative PPP, also known as the Law of one price, suggests that the price of a particular good should be the same across different countries when expressed in a common currency.
The Balassa-Samuelson Effect is a theory that explains the relationship between PPP and the differences in productivity levels between countries. It suggests that countries with higher productivity levels will have higher price levels and thus a higher exchange rate.
Purchasing Power Parity (PPP) consists of two different concepts: absolute PPP and relative PPP. Absolute PPP proposes that the exchange rate between two currencies should reflect the ratio of the price levels of a basket of goods in each country. This means that if the price of a particular basket of goods is higher in one country compared to another, the exchange rate should adjust accordingly to maintain purchasing power parity.
On the other hand, relative PPP, also known as the Law of one price, suggests that the price of a specific good should be the same across different countries when expressed in a common currency. In other words, if a good has the same quality and characteristics, it should have the same price in different countries after accounting for exchange rates.
The Balassa-Samuelson Effect is a theory that explains the relationship between PPP and productivity differences between countries. According to this effect, countries with higher productivity levels in their tradable sectors (sectors involved in international trade) will experience higher price levels. This is because higher productivity allows firms to pay higher wages to their workers, increasing the overall cost of production. As a result, these countries will have higher price levels for goods and services in their domestic markets compared to countries with lower productivity levels. This price differential leads to a higher exchange rate to maintain PPP.
The implications of the Balassa-Samuelson Effect for PPP are that the relative productivity levels between countries can influence exchange rates. If a country experiences productivity growth in its tradable sector, it will lead to an appreciation of its currency. This appreciation occurs because higher productivity results in higher wages and prices, which in turn raises the exchange rate to maintain PPP. Conversely, countries with lower productivity levels in their tradable sectors will have lower price levels and a depreciated currency. The Balassa-Samuelson Effect highlights the importance of considering productivity differences when analyzing exchange rates and the validity of PPP.
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The ____________________ on which firms are able to establish a competitive advantage are virtually endless.
The factors or sources on which firms are able to establish a competitive advantage are virtually endless.
A competitive advantage refers to the unique qualities, assets, or capabilities that allow a firm to outperform its competitors and achieve superior business performance.
factors or sources can vary widely depending on the industry, market conditions, and specific characteristics of the firm. Some common examples of factors that can contribute to a competitive advantage include:
1. Innovation and technology: Developing new products, services, or technologies that offer superior features or performance compared to competitors.
2. Cost leadership: Achieving lower production costs or operational efficiencies that enable offering products or services at lower prices than competitors.
3. Brand reputation and customer loyalty: Building a strong brand image and customer loyalty through effective marketing, quality products, and excellent customer service.
4. Intellectual property and patents: Owning intellectual property, patents, or proprietary technologies that provide a unique competitive advantage and prevent easy replication by competitors.
5. Supply chain management: Efficiently managing the supply chain to ensure timely delivery, cost savings, and reliable sourcing of materials or components.
6. Human capital: Attracting and retaining skilled and talented employees who contribute to innovation, customer satisfaction, and operational excellence.
7. Distribution network: Having an extensive distribution network or strategic partnerships that enhance market reach and accessibility.
These are just a few examples, and the potential sources of competitive advantage can be diverse and industry-specific. The specific combination and utilization of these factors are what make the possibilities for establishing a competitive advantage virtually endless for firms.
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Starting today, every week, you put $60 into a savings account that pays 2.55% annually, and you do this for 15 years. Rounded to the nearest dollar, one weak after your last deposit, your account balance would be $___________
After considering the regular deposits, the interest rate, and the compounding frequency, the account balance one week after the last deposit would be $113,222.
To calculate the account balance after 15 years of weekly deposits, we need to consider the regular deposits, the interest rate, and the compounding frequency.
Weekly deposit = $60
Annual interest rate = 2.55%
Compounding frequency = Weekly
Since the interest rate is an annual rate, we need to adjust it to match the compounding frequency. In this case, we have a weekly compounding frequency, so we divide the annual interest rate by 52 (the number of weeks in a year).
Weekly interest rate = Annual interest rate / Number of weeks in a year
= 2.55% / 52
Now we can calculate the account balance after 15 years of weekly deposits using the future value of an annuity formula:
Account balance = Weekly deposit * [(1 + Weekly interest rate)^(Number of weeks * Number of years) - 1] / Weekly interest rate
Number of weeks = 52 (weeks in a year)
Number of years = 15
Account balance = $60 * [(1 + (2.55% / 52))^(52 * 15) - 1] / (2.55% / 52)
Account balance ≈ $60 * [1.0510576923^780 - 1] / (2.55% / 52)
Account balance ≈ $60 * [10.168194287 - 1] / (0.0255 / 52)
Account balance ≈ $60 * 9.168194287 / 0.0004903846
Account balance ≈ $113,221.57
Therefore, rounded to the nearest dollar, the account balance one week after the last deposit would be $113,222.
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Create the project charter of a project of your choice. For this and future assignments, you may pick a project you are working on, a project you participated in in the past, or a project somebody else did in the past.
Your project charter should include at least the following elements:
Overview
Purpose
WBS in a visual format
Schedule and milestones
Resources
Stakeholders
Major risks
Sponsor and the space for sponsor signature
Project charter is an official document that outlines the essential details about a project, the roles and responsibilities of stakeholders involved, the project's goals, and the expected outcomes.
Here is an example of a project charter for a software development project:
Overview: The project's main objective is to develop a software application that will enhance customer service and sales processes. The project's expected timeline is six months, starting from June 1, 2022, to November 30, 2022. The project team comprises a project manager, software developers, testers, and business analysts. The project's budget is estimated to be $500,000.
Purpose: The project's purpose is to create a software application that will streamline the customer service and sales processes of the organization. The software application will include a customer service dashboard that will allow customers to access their accounts, view their purchase history, and access product information.
WBS in a visual format
Schedule and Milestones
Phase 1: Planning and requirements gathering (June 1, 2022 - June 30, 2022)
Phase 2: Design and development (July 1, 2022 - September 30, 2022)
Phase 3: Testing and deployment (October 1, 2022 - November 30, 2022)
The stakeholders involved in this project include:
Project Sponsor
Project Manager
Business Analyst
Software Developers
Testers
End-users
Major risks
The project's major risks include:
Technical challenges
Lack of user adoption
Security concerns
Budget overruns
Sponsor and the space for sponsor signature
The project sponsor's name is Peter Johnson.
The space for the sponsor signature is below:.................................Peter Johnson (Project Sponsor)
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You need to draw supply and demand graphs for each of the examples.
Shift either supply or demand. Find the new equilibrium. And
indicate what happens to the price and quantity of each of the
guts.
Supply and Demand Illustrate graphically and state what will happen to equilibrium price and quantity in each of the following markets. Assume a competitive market and an upward-sloping supply curve. a. Football tickets: a lockout occurs and shortens the#of games in the seasons(Fans are not disgruntled) b: Griffins tickets: Red Wings ticket prices fall (Assume griffins and red wings are substitutes) c. Griffins tickets: Population in Grand Rapids, MI surges rapidly d. Basketball tickets: A players strike occurs that causes fans to be disgruntled once the season resumes e. Food inside a stadium: The cost of renting a stadium increases f. Single a baseball: Stadium management group offers dollar beer and dollar hot dog specials g. Single A baseball(an inferior good): The income of consumers increases h. Major league baseball(a normal good): The income of consumers increases i. Texas Rangers-ticket: Globe Live park, Texas Rangers new climate-controlled ballpark opens j. Tom Brady jerseys: Brady win the Superbowl (again)
Football tickets: A lockout occurs and shortens the number of games in the season (Fans are not disgruntled)
In this case, the supply of football tickets would decrease due to the lockout, resulting in a leftward shift of the supply curve.
Single A baseball (an inferior good): The Income of consumers increases
If the income of consumers increases and Single A baseball is considered an inferior good, the demand for Single A baseball tickets would decrease. This results in a leftward shift of the demand curve. The supply curve remains unchanged. The new equilibrium will occur at a lower price and a lower quantity. The price of Single A baseball tickets will decrease, and the quantity of tickets sold will also decrease.
If the income of consumers increases and Major League Baseball is considered a normal good, the demand for Major League Baseball tickets would increase. This leads to a rightward shift of the demand curve. The supply curve remains unchanged. The new equilibrium will occur at a higher price and a higher quantity. The price of Major League Baseball tickets will increase, and the quantity of tickets sold will
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ATR Company has a debt-to-equity ratio of 3/5. If the WACC is
19.80% and the pretax cost of debt is 9.00%, what is the cost of
common equity assuming a tax rate of 36%?
a.
21.71%
b.
40.86%
c.
31.68%
d
Thus, the cost of equity for the company is 21.71%. The correct option is a.
Given,
Debt-to-Equity ratio = 3/5
= 0.6 and
the WACC = 19.8%
The formula for WACC is
WACC = wd (1-t) Kd + wps Kps + wcs Kcs,
where wd, wps, and wcs are the weights of debt, preferred stocks, and common stocks, respectively;
Kd, Kps, and Kcs are the cost of debt, preferred stocks, and common stocks, respectively;
and t is the tax rate.
We need to find Kcs.
Let’s first find the weight of equity.
Since Debt-to-Equity ratio is 3/5, this implies that Debt = 3 and Equity = 5.
Kd = 9.00%
T = 36% (given)
WACC = 0.198
Now, WACC = wd (1-t) Kd + wcs Kcs.
Let’s rearrange the terms to find Kcs.
WACC - wd (1-t) Kd / wcs = Kcs.
Substituting the given values in the equation, we get
Kcs = (0.198 – 0.54 x 0.09) / (1 – 0.6)
Kcs = 0.0308 or 3.08%
Thus,
the cost of equity = 3.08 / 0.4
= 7.7%
Kce = Kcs + (Kcs-Kd) * D/E
where
D/E = 3/5 = 0.6,
Kce = cost of equity,
Kcs = cost of common stock,
Kd = pre-tax cost of debt
As per above formulae;
Kce = 0.09 + (0.09 - 0.036) * 0.6 / 0.4
Kce = 21.71%
The correct option is a.
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For this discussion post do the following: 1) Find an example of when someone was found guilty of plagiarism. 2) Post a VERY brief summary of the details of the case (50 to 100 words). 3) Include in your post, what were the consequences of plagiarising in the example you found.
1) Example of plagiarism case: In 2018, journalist Fareed Zakaria was found guilty of plagiarism in his work for Time magazine and CNN.
2) Case summary:
Fareed Zakaria, a well-known journalist, was accused of plagiarizing portions of an article he wrote for Time magazine titled "The Case for Gun Control." It was discovered that he had lifted several sentences from an article by historian Jill Lepore without proper attribution.
brought to light by a media watchdog organization.
3) Consequences of plagiarism:
As a result of the plagiarism incident, Fareed Zakaria faced significant consequences. Time magazine suspended him as a columnist, and CNN temporarily suspended his television show, "Fareed Zakaria GPS." Zakaria publicly apologized for his actions and acknowledged the mistake. While he did not face any legal penalties, the incident tarnished his reputation and raised questions about his credibility as a journalist. Plagiarism can have severe professional and personal consequences, including damage to one's career, loss of credibility, and public scrutiny.
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"Describe in detail how a manager can utilize a performance
appraisal to evaluate the effectiveness of an individual employee.
What is the process? What benefits are derived? Describe in detail
A manager can utilize a performance appraisal to evaluate an individual employee's effectiveness by setting clear performance goals, providing regular feedback, assessing performance against those goals, and discussing strengths and areas for improvement.
This process helps identify training needs, recognize top performers, and align employee goals with organizational objectives.
Performance appraisal involves setting objectives, assessing progress , documenting achievements, and conducting formal evaluations. It helps managers make informed decisions about promotions, rewards, and development opportunities. Effective performance appraisals promote employee engagement, motivation, and productivity, fostering a culture of continuous improvement.
During the process, managers should communicate expectations, gather performance data, conduct fair and objective evaluations, provide constructive feedback, and establish development plans. Regular performance discussions build trust and enhance employee-manager relationships.
Benefits derived from performance appraisals include improved performance, increased employee satisfaction, enhanced teamwork, identification of skill gaps, and alignment of individual and organizational goals. It allows managers to address performance issues promptly and recognize outstanding contributions, fostering a positive work environment.
In summary, performance appraisals enable managers to evaluate employee effectiveness through goal setting, feedback, assessment, and development. This process yields numerous benefits, including improved performance, employee engagement, and goal alignment.
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. An investor has a $1 million long position in T-bond futures. The investor's broker requires a maintenance margin of 4%, or $40,000 ($1m x 0.04), which is the amount currently in the investor's acco
The maintenance margin required by the investor's broker is 4% or $40,000, which represents the amount currently held in the investor's account.
The maintenance margin is a minimum amount of funds that the investor must maintain in their account to meet the broker's requirements. In this case, with a $1 million long position in T-bond futures, the broker requires the investor to have at least 4% of the position value, which amounts to $40,000. This ensures that the investor has sufficient funds to cover potential losses or fluctuations in the market. If the account falls below the maintenance margin, the investor may receive a margin call and be required to add additional funds to meet the requirement.
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A critical examination of the possible types of employee reactions to the proposed change, again using the key theory {The theory is Kirkpatrick’s reactions to change (2001) – positive, negative and mixed and the other model is Carnall’s coping cycle (2003)} to underpin the discussion and giving consideration to the different types of employees employed by Eagle Air.
A critical examination of the possible types of employee reactions to the proposed change at Eagle Air can be conducted using Kirkpatrick's reactions to change (2001) and Carnall's coping cycle (2003).
Kirkpatrick's theory suggests that employees can have positive, negative, or mixed reactions to change. Positive reactions may include enthusiasm, motivation, and excitement about the proposed change. Negative reactions may manifest as resistance, fear, and skepticism towards the change. Mixed reactions may involve a combination of positive and negative emotions.
Carnall's coping cycle provides a framework to understand how employees adapt to change. It consists of four stages: denial, resistance, exploration, and commitment. In the denial stage, employees may refuse to acknowledge the need for change.
When examining the types of employees employed by Eagle Air, it is important to consider their individual characteristics, experiences, and attitudes. Different employees may respond differently to the proposed change based on factors such as their job role, level of expertise, and personal circumstances.
By utilizing these theories, Eagle Air can gain insights into the potential reactions and coping mechanisms of their employees, enabling them to plan and implement the proposed change effectively.
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The preferred stock of ABC pays a constant $2.5 per share dividend. The common stock of ACME just paid a $1.5 dividend per share, but its dividend is expected to grow at 4 percent per year forever All two stocks have a 7 percent required return. How much should you be willing to pay fo a share of each stock? Which stock will give you the best return? Explain what is the relationship between dividend growth and the price of a stock. Please show all your work.
You should be willing to pay $35.71 for a share of preferred stock of ABC and $57.86 for a share of common stock of ACME.
Given:
Preferred stock of ABC pays a constant $2.5 per share dividend.
The common stock of ACME just paid a $1.5 dividend per share, but its dividend is expected to grow at 4 percent per year forever. Both stocks have a 7 percent required return.
To calculate the value of a share of preferred stock of ABC:
Value of preferred stock (PV) = D / R
where D = Dividend per share and
R = Required Rate of Return= $2.5 / 7%
= $35.71
To calculate the value of a share of common stock of ACME with constant growth rate:
Value of common stock (PV) = D1 / (R-g)
where D1 = Dividend expected in the next year,
R = Required Rate of Return, and
g = Growth rate in dividend
= $1.5 × (1 + 4%) / (7% - 4%)
= $57.86
The stock that will give you the best return is common stock of ACME because it has a higher expected value and the expected return is more than the required return. The relationship between dividend growth and the price of a stock is that as the dividend growth rate increases, the price of the stock also increases.
This is because the dividend is a source of income to the investor and a higher dividend means more income.
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Part C – Using Financial Information to Estimate Cost of Capital– 1 question (3 points)
5. Critically discuss this statement:
A firm’s WACC reflects the return required by contributors of capital and hence will always be a good benchmark discount rate for assessing new projects being considered by a firm.
Note: A critical discussion requires you to discuss the statement with a critical eye - that is identify the valid and invalid parts of the statement and discussing why the different parts are (or are not) correct.
The statement that a firm's Weighted Average Cost of Capital (WACC) reflects the return required by contributors of capital and is a good benchmark discount rate for assessing new projects needs to be critically examined.
While WACC is commonly used as a discount rate for project evaluation, it has its limitations. Firstly, WACC assumes that the capital structure remains constant, which may not hold true for new projects that require additional financing or have different risk profiles. As a result, using a fixed WACC may not accurately capture the specific risk and return expectations associated with the new project.
Secondly, WACC considers the overall cost of capital for the firm, which includes both debt and equity components. However, different projects may have varying risk levels and require different sources of capital. Using a single WACC for all projects may not adequately account for the project-specific risk and return expectations.
Additionally, WACC is based on historical data and market conditions, which may not reflect future expectations accurately. Factors such as changes in interest rates, market conditions, and industry dynamics can impact the cost of capital and may not be fully captured by WACC.
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Using PERT, Adam Munson was able to determine that the expected project completion time for the construction of a pleasure yacht is 21 months, and the project variance is 9.
a) The probability that the project will be completed in 12 months=________(round your response to four decimal places).
To calculate the probability of completing the project in 12 months using PERT (Program Evaluation and Review Technique), we need to use the expected completion time and variance. PERT assumes a normal distribution for project completion times.
The formula to calculate the probability is:
Probability = P(Z ≤ (T - μ) / σ)
Where:
Z = Standard score (z-score) corresponding to the desired time frame
T = Desired completion time
μ = Expected completion time
σ = Square root of the project variance
In this case, the desired completion time is 12 months, the expected completion time is 21 months, and the project variance is 9.
Plugging in the values into the formula, we have:
Probability = P(Z ≤ (12 - 21) / √9)
Calculating the z-score, we get:
Probability = P(Z ≤ -3)
Using a standard normal distribution table or a calculator, we find that the probability of Z being less than or equal to -3 is approximately 0.0013.
Therefore, the probability that the project will be completed in 12 months is approximately 0.0013.
Based on the given expected completion time and project variance, the calculated probability suggests that the likelihood of completing the project in 12 months is very low.
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Using your organization or any organization you are familiar with, assess how inventory affects return on assets.Using your organization or any organization you are familiar with, assess how inventory affects return on assets. [1000 words]
Inventory is an essential part of an organization, and it has a significant impact on the return on assets of the organization.
What does it entail?It is an asset that is held by the organization to meet the demand of the customer in a timely and efficient manner. However, holding too much inventory for a long time can affect the return on assets negatively, while holding too little inventory can impact customer satisfaction and sales.
Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. The company deals with a vast array of products, from apparel to electronics, household goods, and groceries.Walmart has managed to maintain its position in the market as the largest retail store in the world through effective inventory management. Walmart's inventory turnover rate is one of the highest in the retail industry, which has contributed significantly to its high return on assets.Inventory turnover measures how often a company's inventory is sold and replaced over a specific period. Walmart has maintained a high inventory turnover rate, which implies that the company efficiently manages its inventory levels. By ensuring that products move off the shelves quickly, Walmart can replace inventory promptly with new stock, reducing the risk of obsolescence, spoilage, or damage to goods. As a result, Walmart's return on assets is high, and the company has managed to maintain its profitability over the years.To summarize, effective inventory management is essential for any organization's success, and it has a significant impact on return on assets.
Holding too much inventory can result in a decline in profits, while holding too little inventory can lead to loss of sales and customer dissatisfaction.
Therefore, organizations must maintain optimal inventory levels to ensure they are meeting customer demand while still maximizing their profits.
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1.. Does government have a role to play in corporate social
responsibility ?
2-3 pages answers
Yes, the government does have a role to play in corporate social responsibility (CSR). Governments play a crucial role in ensuring that companies fulfill their social obligations and enforce laws that promote CSR.
CSR refers to the ethical and responsible behavior of businesses towards society and the environment. While it is primarily the responsibility of businesses to engage in CSR practices voluntarily, governments can play a crucial role in ensuring that companies fulfill their social obligations.
Governments can establish regulations and enforce laws that promote CSR. They can require businesses to disclose information about their social and environmental impact, and impose penalties for non-compliance. By doing so, governments can create a level playing field and incentivize businesses to adopt responsible practices.
Additionally, governments can provide guidance and support to businesses in implementing CSR initiatives. They can offer tax incentives or grants to companies that engage in socially responsible activities. By offering financial incentives, governments encourage businesses to invest in projects that benefit society, such as community development, education, or environmental conservation.
Furthermore, the government can act as a facilitator and convener in promoting dialogue between businesses and stakeholders. They can bring together businesses, civil society organizations, and other stakeholders to discuss CSR issues and collaborate on finding solutions. This can help businesses better understand the needs and concerns of society, and enable them to align their CSR strategies accordingly.
In summary, the government has an important role to play in promoting and regulating corporate social responsibility. Through regulations, incentives, and facilitation, the government can encourage businesses to act responsibly and contribute positively to society and the environment.
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You are given the following projected cash flows:
Year
CF (in thousands)
0
-175
1
25
2
35
3
40
4
45
5
75
6
75
Find the discounted payback period (given that the cost of
capital = 1
The discounted payback period for the given cash flows, with a cost of capital of 10%, is approximately 5.49 years. To calculate the discounted payback period, we need to discount each cash flow to its present value and then determine the point at which the cumulative discounted cash flows equal or exceed the initial investment.
Given that the cost of capital is 10%, we can calculate the discounted payback period as follows:
Year | CF (in thousands) | Discounted CF (in thousands)
0 | -175 | -175
1 | 25 | 22.73 (25 / 1.10)
2 | 35 | 28.51 (35 / 1.10^2)
3 | 40 | 31.84 (40 / 1.10^3)
4 | 45 | 34.57 (45 / 1.10^4)
5 | 75 | 50.76 (75 / 1.10^5)
6 | 75 | 43.34 (75 / 1.10^6)
To find the discounted payback period, we sum the discounted cash flows until the cumulative sum is greater than or equal to the initial investment (-175):
Year 0: -175
Year 1: -175 + 22.73 = -152.27
Year 2: -152.27 + 28.51 = -123.76
Year 3: -123.76 + 31.84 = -91.92
Year 4: -91.92 + 34.57 = -57.35
Year 5: -57.35 + 50.76 = -6.59
Year 6: -6.59 + 43.34 = 36.75
The discounted payback period is between year 5 and year 6 because the cumulative discounted cash flows become positive after year 5. To determine the exact discounted payback period, we can use linear interpolation:
Discounted Payback Period = Year 5 + (Positive Cash Flow / Cash Flow in Year 6)
Discounted Payback Period = 5 + (36.75 / 75) ≈ 5.49 years
Therefore, the discounted payback period for the given cash flows, with a cost of capital of 10%, is approximately 5.49 years.
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Hampton Industries had $40,000 in cash at year-end 2020 and $16,000 in cash at year-end 2021. The firm invested in property, plant, and equipment totaling $270,000- the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$250,000. Round your answers to the nearest dollar, if necessary
a. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign
b. If accruals increased by $30,000, receivables and inventories increased by $155,000, and depreciation and amortization totaled $47,000, what was the firm's net income?
(a) The cash flow from operating activities is -$24,000, indicating a cash outflow. (b) The firm's net income is -$138,000, indicating a net loss.
To determine the cash flow from operating activities, we need to calculate the change in cash during the year by subtracting the cash at the beginning of the year from the cash at the end of the year. This will provide the net increase or decrease in cash.
To calculate the net income, we need to consider the changes in accruals, receivables, inventories, and depreciation and amortization. Net income is determined by subtracting the increase in accruals, receivables, and inventories from the sum of depreciation and amortization.
(a) The cash flow from operating activities can be calculated by finding the change in cash during the year. Given that the cash at year-end 2020 was $40,000 and the cash at year-end 2021 was $16,000, we can calculate the cash flow from operating activities as follows:
Cash flow from operating activities = Cash at year-end 2021 - Cash at year-end 2020
= $16,000 - $40,000
= -$24,000
Therefore, the cash flow from operating activities is -$24,000, indicating a cash outflow.
(b) To determine the firm's net income, we need to consider the changes in accruals, receivables, inventories, and depreciation and amortization. Given that accruals increased by $30,000, receivables and inventories increased by $155,000, and depreciation and amortization totaled $47,000, we can calculate the net income as follows:
Net Income = Depreciation and Amortization - (Increase in Accruals + Increase in Receivables + Increase in Inventories)
= $47,000 - ($30,000 + $155,000)
= $47,000 - $185,000
= -$138,000
Therefore, the firm's net income is -$138,000, indicating a net loss.
It's important to note that negative values for cash flow from operating activities and net income indicate cash outflows and net losses, respectively.
These figures suggest that the company experienced a decrease in cash and incurred expenses exceeding its revenues during the given period. Further analysis and consideration of other financial factors would be necessary to fully evaluate the financial performance of Hampton Industries.
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The CFO of your company has asked you to analyze a 30-year bond if the market interest rate is 4%. It is a semi-annual pay bond with a 5% coupon rate, 10 years left until maturity, and a face value of $1,000. What are the present values of the annuity stream and the principal, and what is the total value of the bond?
A) $408.79, $672.97 and $1,081.76
B) $817.57, $672.97 and $1,490.54
C) $339.76, $675.56 and $1,015.32
D) $408.79, $675.56 and $1,084.35
The present values of the annuity stream and the principal are $408.79 and $1,000 respectively, and the total value of the bond is $1,408.79.The answer is D.
The present value of the annuity stream can be calculated using the formula for the present value of an ordinary annuity:PV = C * [1 - (1 + r)^(-n)] / r.Where PV is the present value, C is the coupon payment, r is the interest rate per period, and n is the number of periods.
In this case, the coupon payment is $1,000 * 5% / 2 = $25 (since it is a semi-annual bond), the interest rate per period is 4% / 2 = 2%, and the number of periods is 10 * 2 = 20.Plugging in these values, we get:PV = $25 * [1 - (1 + 2%)^(-20)] / 2% = $408.79
The present value of the principal is simply the face value of the bond, which is $1,000.The total value of the bond is the sum of the present value of the annuity stream and the present value of the principal:Value = $408.79 + $1,000 = $1,408.79
Therefore, the present values of the annuity stream and the principal are $408.79 and $1,000 respectively, and the total value of the bond is $1,408.79.The answer is D.
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4 years ago, Rick invested $6,300.00 in an account earning 3.5% compounded yearly. Now, he has found another account that will pay 6.75% compounding quarterly for a minimum commitment of 7 years. How much will Rick have if he invests all his money in the new account for the next 7 years? Assume the interest rates do not change while the respective accounts are open. Round to the nearest cent.
To calculate the amount Rick will have if he invests all his money in the new account for the next 7 years, we can use the formula for compound interest: [ A = P \times \left(1 + \frac{r}{n}\right)^{n \times t} \]
Where:
A is the future value,
P is the initial investment ($6,300.00),
r is the annual interest rate (6.75% or 0.0675),
n is the number of times interest is compounded per year (4 for quarterly compounding), and
t is the number of years (7).
Substituting the given values, we have:
[ A = 6300 \times \left(1 + \frac{0.0675}{4}\right)^{4 \times 7} \]
Calculating this expression will give us the amount Rick will have if he invests all his money in the new account for the next 7 years, rounded to the nearest cent.
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A- Wilma wants to buy a car that costs $52,000. She has arranged to borrow the total purchase price of the car from her bank at 6 percent interest rate. The loan requires monthly payments for a period of five years. If the first payment is due in one month after purchasing the car, what will be the amount of Wilma’s monthly payment on the loan?
Wilma's monthly payment on the loan will be approximately $988.60.
To calculate the monthly payment on Wilma's car loan, we can use the formula for a fixed monthly payment on an installment loan.
The formula is:
P = (r * A) / (1 - (1 + r)^-n)
Where:
P = monthly payment
r = monthly interest rate (annual interest rate divided by 12)
A = total loan amount
n = number of monthly payments
First, let's calculate the monthly interest rate.
The annual interest rate is 6%, so the monthly interest rate is 6% / 12 = 0.06 / 12 = 0.005.
The loan amount is $52,000 and the loan term is 5 years, which means there will be 5 * 12 = 60 monthly payments.
Now, let's substitute the values into the formula:
P = (0.005 * $52,000) / (1 - (1 + 0.005)^-60)
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If the goal of negotiation is performance, then the process and
tactics used during the negotiation are unimportant because they
have no great impact on the intention to perform.
True
False
False. The negotiation process and tactics directly influence the outcome of the negotiation, including the parties' intention and ability to perform and achieve their goals.
The statement suggests that the process and tactics used during negotiation have no significant impact on the intention to perform.
However, this is in. The process and tactics employed during negotiation play a crucial role in determining the outcome and success of the negotiation.
Effective negotiation involves careful planning, active listening, effective communication, and the use of various tactics to influence the other party's behavior and reach mutually beneficial agreements. The negotiation process helps build trust, manage conflicts, and explore creative solutions.
Furthermore, the tactics employed during negotiation can significantly impact the intention to perform. Different tactics, such as collaborative problem-solving, assertiveness, compromise, or competitive strategies, can influence the other party's perception, behavior, and willingness to cooperate.
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American Express Inc. had earnings per share of $5.33. It is expected to pay a dividend of $2.04 per share and the stock price is $58. What is its dividend yield?
Dividend yield is the return on investment for a stock in terms of dividends per share. It can be calculated by dividing the annual dividend by the current stock price. The dividend yield formula is given below.
Dividend Yield = Annual Dividend per Share / Stock Price per ShareThe given values are:
Earnings per Share = $5.33Dividend per Share
= $2.04Stock Price
= $58Dividend Yield
= Annual Dividend per Share / Stock Price per ShareThe annual dividend per share can be calculated by multiplying the dividend per share with the number of shares outstanding. However, the number of shares outstanding is not given in the problem. Hence, we cannot calculate the annual dividend per share.
Let us find an alternative method to calculate the dividend yield. We know that earnings per share (EPS) is calculated by dividing the net income of the company by the number of shares outstanding. EPS = Net Income / Number of Shares OutstandingNumber of Shares Outstanding = Net Income / EPSNumber of Shares Outstanding
= $5.33 / Number of Shares OutstandingNow, the total dividend paid by the company can be calculated by multiplying the dividend per share with the number of shares outstanding.Total Dividend = Dividend per Share × Number of Shares OutstandingTotal Dividend
= $2.04 × Number of Shares OutstandingDividend Yield
= Annual Dividend per Share / Stock Price per ShareWe can rewrite the dividend yield formula by substituting the annual dividend per share with the total dividend and number of shares outstanding.Dividend Yield = (Total Dividend / Number of Shares Outstanding) / Stock Price per ShareDividend Yield = (2.04 × Number of Shares Outstanding) / (Number of Shares Outstanding × $58)Dividend Yield = 2.04 / $58Dividend Yield
= 0.0352 or 3.52%Therefore, the dividend yield for American Express Inc. is 3.52%.
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Accrued liabilities arise from
ordinary operations and provide interest-free financing. Using Nike
and Under Armour common-size balance sheets:
Are operating liabilities large for the companies?
Comp
Accrued liabilities arise from the goods and services received by the company but not yet paid for or recorded in the books. These types of liabilities arise from ordinary business operations and help provide interest-free financing.
Both Nike and Under Armour have operating liabilities. Common-size balance sheets can be used to determine the size of operating liabilities for the companies. Common-size balance sheets analyze the financial statements by displaying each item on the balance sheet as a percentage of total assets. This type of analysis can be useful when comparing financial statements of different companies.
Operating liabilities are generally large for companies because they arise from everyday operations. The amount of operating liabilities can vary depending on the company's size and industry. However, both Nike and Under Armour have significant operating liabilities. For example, on Nike's common-size balance sheet, trade and other payables account for 7.13% of total assets, while on Under Armour's common-size balance sheet, accounts payable account for 14.6% of total assets.
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You estimate that stock in Alphacorp has the following probability distribution of returns for
the next year. What are the expected return and the standard deviation of return for the stock
for the next year? Probability Return
0.2 -10%
0.4 4%
0.3 7%
0.1 12%
The standard deviation of return for the stock for the next year is 4.09%.
To calculate the expected return, we multiply each return by its corresponding probability and sum up the results:
Expected Return = (0.2 * -10%) + (0.4 * 4%) + (0.3 * 7%) + (0.1 * 12%)
Expected Return = -0.02 + 0.016 + 0.021 + 0.012
Expected Return = 0.026 or 2.6%
Therefore, the expected return for the stock for the next year is 2.6%.
To calculate the standard deviation of return, we need to calculate the variance first. The variance is the weighted sum of the squared deviations from the expected return:
Variance = (0.2 * (-10% - 2.6%)^2) + (0.4 * (4% - 2.6%)^2) + (0.3 * (7% - 2.6%)^2) + (0.1 * (12% - 2.6%)^2)
Variance = (0.2 * (-0.126)^2) + (0.4 * (0.014)^2) + (0.3 * (0.044)^2) + (0.1 * (0.086)^2)
Variance = 0.0016036 + 0.00000784 + 0.00004944 + 0.000007396
Variance = 0.001668236
The standard deviation is the square root of the variance:
Standard Deviation = √0.001668236
Standard Deviation = 0.0409 or 4.09%
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Doing business in Talwan like South Korea can be characterized by the tension between which of the following two aspects?
Answer saved
Marked out of
1.00
question
Select one:
a. Individualism and collusion
b. Collectivism and individualism
c. Collusion and independence
O d. Collectivism and competition Many human rights conventions have been ratified by Asian countries. In turn these countries have closely adhered to the consequent conditions.
Answer saved
Marked out of
Select one:
1.00
OTrue
False
Taiwan, like South Korea, involves navigating the tension between collectivism and competition. Understanding and managing this tension is essential for successful business operations in these countries.
Doing business in Taiwan, like South Korea, can be characterized by the tension between collectivism and competition.
Collectivism refers to a cultural value that emphasizes the importance of group harmony and collective goals over individual desires. In countries like Taiwan and South Korea, there is a strong emphasis on collective decision-making, teamwork, and maintaining social harmony. This can be seen in the way business relationships are formed and maintained.
On the other hand, competition is also a significant aspect of doing business in these countries. The rapid economic growth and global competitiveness of Taiwan and South Korea have fostered a highly competitive business environment. Companies in these countries strive to outperform their competitors and gain a competitive edge in the market.
The tension between collectivism and competition arises because while there is a strong emphasis on collaboration and cooperation within groups, there is also a drive for individual success and achievement. This can sometimes lead to conflicts between the interests of the group and the interests of the individual.
For example, in Taiwan, businesses often operate within tightly-knit networks called "guanxi." These networks consist of trusted relationships between individuals and companies, and they play a crucial role in business transactions. However, within these networks, there is also competition to gain advantages and secure beneficial deals.
In summary, doing business in Taiwan, like South Korea, involves navigating the tension between collectivism and competition. While collective decision-making and group harmony are highly valued, there is also a strong drive for individual success and competitiveness. Understanding and managing this tension is essential for successful business operations in these countries.
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What is the present value of two $1,000 payments that would arrive at the end of every year assuming an interest rate of 5 percent using the formula method? (Round to 0 decimal places.)
multiple choice
$1,859.41
$1,005.00
$1,111.11
$6,667.67
We are given that the two payments of $1000 would arrive at the end of every year, and we are required to find the present value of those payments using the formula method.
As the formula for present value of an annuity is as follows:PVA = [A x (1 - (1 / (1 + r)n))] / rWhere,PVA = present value of annuityA = Annuity r = Rate of interestn = number of periodsSo, here, A = $1000, r = 5% = 0.05n = 2 periods. Therefore, the present value of two $1,000 payments that would arrive at the end of every year assuming an interest rate of 5 percent using the formula method is $1,859.41 (rounded to 2 decimal places).Hence, the correct option is (A) $1,859.41.
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