In the Cournot model, each firm determines its output level independently based on its own profit maximization. They consider the output of the other firm as given. The firms compete in terms of quantity.
To find the output levels in the Cournot model, we start with the market demand equation: P = 75 - 0.5Q. Each firm's profit is calculated as follows: π = (P - MC) * Q - FC, where MC is the marginal cost and FC is the fixed cost.
Since the firms have zero marginal cost, MC is zero. The profit equation simplifies to: π = (P - 0) * Q - 250 = P * Q - 250.
In the Cournot model, each firm assumes that the other firm's output is fixed. To maximize profit, each firm chooses its own output level by considering the reaction function of the other firm. The reaction function specifies the optimal response of one firm to the output level of the other firm.
To determine the reaction function, we differentiate the profit equation of Firm 1 with respect to Q₁ and set it equal to zero: dπ₁/dQ₁ = P - Q₁ - Q₂ = 0. Rearranging, we have Q₁ = (75 - Q₂)/2.
Similarly, the reaction function for Firm 2 is Q₂ = (75 - Q₁)/2.
To find the Cournot equilibrium, we substitute the reaction function of one firm into the reaction function of the other firm and solve for Q₁ and Q₂ simultaneously.
By solving these equations, we can find the Cournot equilibrium quantities. Substituting these quantities back into the demand equation, we can determine the market price.
Now, in the case of collusion, the two firms act as a single entity and make joint decisions to maximize their combined profit. They coordinate their actions and behave as a monopoly. They can set output levels jointly to maximize total profit.
Under collusion, the firms agree on a total output level that maximizes their joint profit. This joint profit is higher than the combined profit they would earn in the Cournot model.
However, the consequences of collusion extend beyond total output. Collusion leads to a higher market price compared to the Cournot equilibrium. The firms limit output to drive up the price, increasing their individual profits.
In terms of profits, collusion allows the firms to earn higher profits than in the Cournot model. They can effectively act as a monopolist and exploit the market power they hold.
In summary, in the Cournot model, the total amount of output in the duopoly market is higher compared to when the firms collude. Collusion leads to a lower total output, higher market price, and higher individual profits for the firms.
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Does unemployment and production move in opposite directions business cycle?
Yes, unemployment and production move in opposite directions in the business cycle. The business cycle refers to the periodic changes in economic activity, such as production, employment, and prices, that an economy undergoes over time.
Economic expansions and contractions, which occur in cycles, are two phases of the business cycle. The business cycle, which is comprised of four distinct phases, each of which is characterized by a specific set of economic conditions, is typically described as a wave-like pattern.
Economic expansions, which occur during the boom phase of the business cycle, are marked by rising production, increasing employment, and growing consumer confidence. Economic contractions, which occur during the recession phase of the business cycle, are marked by a decline in production, a decrease in employment, and a decrease in consumer confidence. Thus, the unemployment rate and the level of production generally move in opposite directions.
In other words, when the economy is in an expansionary phase of the business cycle, production increases, and the unemployment rate falls. On the other hand, when the economy is in a contractionary phase, production declines, and the unemployment rate rises. This relationship between unemployment and production is due to the fact that as production rises, companies hire more workers to meet the demand for their goods and services. Conversely, as production falls, companies lay off workers to reduce costs.
In conclusion, it can be stated that during the business cycle, unemployment and production move in opposite directions. During economic expansions, production rises, and the unemployment rate falls, while during economic contractions, production declines, and the unemployment rate rises.
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One of the main challenges facing organizations and leaders during the pandemic is motivating teams and
employees. Please provide few examples of organizational motivators and state which are the effective
long-term motivators and why?
What role does organizational conformity, company policy and administration play in establishing a
thriving environment for employees? Has the Covid-19 pandemic impacted motivation of employees?
What suggestions would you offer for companies to manage employees’ motivation during the ongoing
pandemic?
Additional guidelines: Please discuss concepts of adaptive leadership, power and influence and
motivation when answering this question. Please reference at least 3 discussed articles.
3 Pages, Reference Page Required
Title: Motivating Teams and Employees During the Pandemic: Organizational Motivators and Strategies
Introduction:
The COVID-19 pandemic has presented numerous challenges for organizations and their leaders, including the task of motivating teams and employees amidst uncertainty and remote work environments. This paper aims to explore various organizational motivators and their effectiveness in the long term.
Additionally, it discusses the role of organizational conformity, company policy, and administration in establishing a thriving environment for employees. Moreover, it examines the impact of the COVID-19 pandemic on employee motivation and offers suggestions for companies to manage motivation during these challenging times. This discussion incorporates concepts of adaptive leadership, power and influence, and motivation.
Effective Long-Term Organizational Motivators:
1. Meaningful Work and Autonomy: Providing employees with meaningful work that aligns with their values and goals can be a powerful motivator. Autonomy fosters a sense of ownership and empowerment, leading to increased engagement and productivity. (Deci & Ryan, 2000; Pink, 2009)
2. Growth and Development Opportunities: Organizations that invest in the professional development of their employees promote long-term motivation. This fosters a sense of loyalty, job satisfaction, and increased motivation to perform well. (Gagné & Deci, 2005; Staw & Cohen-Charash, 2005)
3. Recognition and Rewards: Recognizing and rewarding employees for their achievements and contributions is an effective motivator. Publicly acknowledging their efforts, providing constructive feedback, and offering incentives, such as bonuses or promotions, can enhance motivation. Recognition fosters a positive work environment and reinforces a sense of accomplishment and value. (Cameron & Pierce, 2002; Nelson, 2017)
Role of Organizational Conformity, Company Policy, and Administration:
Organizational conformity, company policy, and administration play a crucial role in establishing a thriving environment for employees. When there is clarity in expectations, rules, and policies, employees can work more efficiently and confidently. Consistent and transparent communication from leadership regarding health and safety measures during the pandemic helps alleviate anxieties and build trust.
Moreover, fostering an inclusive and supportive culture that encourages diversity of thought and individual expression cultivates psychological safety. Employees are more likely to be motivated when they feel their voices are heard and their unique perspectives are valued. Effective administration ensures fair and equitable processes, which contribute to a positive work environment and motivate employees to perform at their best. (Edmondson, 1999; Grawitch et al., 2007)
Impact of the COVID-19 Pandemic on Employee Motivation:
The COVID-19 pandemic has had a significant impact on employee motivation due to various factors such as remote work, social isolation, and increased uncertainty.
The blurring of boundaries between work and personal life, along with the lack of physical separation, can lead to burnout and decreased motivation. Additionally, the disruption caused by the pandemic, including health concerns, financial insecurity, and job instability, has heightened stress levels and affected employees' motivation. (Cullen et al., 2020; McDermott et al., 2020)
Suggestions for Managing Employee Motivation during the Ongoing Pandemic:
Enhance Communication: Communication is crucial during times of uncertainty. Ensure frequent and transparent communication with employees to keep them informed about any changes, updates, and company initiatives. Provide Emotional Support: Recognize the emotional toll the pandemic has taken on employees. Offer resources for mental health support, such as counseling services or employee assistance programs. Foster Connection and Collaboration: Remote work can lead to feelings of isolation. Encourage virtual team-building activities, such as online games, virtual coffee breaks, or team challenges, to foster a sense of connection and camaraderie.To know more about Pandemic, visit:
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Information for two alternative projects involving machinery investments follow. The accounting rate of return for Project 1 is:
Year Project 1 Project 2
Initial investment $ (240,000) $ (180,000)
Salvage value 0 20,000
Annual income 30,000 24,000
Multiple Choice
a. 25.0%.
b. 24.0%.
c. 12.5%.
d. 26.7%.
e. 12.0%.
The accounting rate of return for Project 1 is 12.5%.
The accounting rate of return (ARR) is calculated by dividing the average annual income by the initial investment and expressing it as a percentage. In this case, for Project 1, the initial investment is $240,000, and the annual income is $30,000. To calculate the ARR, we divide $30,000 by $240,000 and multiply by 100 to get the percentage. The calculation is as follows:
ARR = (Annual Income / Initial Investment) * 100
= ($30,000 / $240,000) * 100
= 0.125 * 100
= 12.5%
Therefore, the accounting rate of return for Project 1 is 12.5%. This means that for every dollar invested in the project, the company can expect to earn a return of 12.5 cents annually on average.
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A cutting-edge pharmaceutical company has developed a new vaccine for the Coronavirus disease 2019 (COVID-19). Production of of the vaccine would require $10 million in initial capital expenditure. It is anticipated that 1 million units would be sold each year for 5 years, and then herd immunity would be achieved and the mass production of the vaccine would cease. Each year's production would require 10,000 hours of labor and 100 tons of raw material. In the first year, the average wage rate is $30 per hour, the cost of the raw material is $100 per ton and the vaccine will sell for $3.30 per unit. All three of these unit prices (wage rate per hour, cost of raw material per ton, and vaccine revenue per unit) will increase each year after the first year by the inflation rate which is assumed to be 2% per year. All cash flows (revenues and costs), aside from the $10 million in initial capital expenditure, are assumed to come at the end of each year. The interest rate is 10% and corporate tax rate is 34% on profit. The initial capital expenditure can be depreciated in a straight line fashion over 5 years ($2 million per year, assumed to come at the end of each year). What is the (after-tax) present value of the new vaccine? Please round your numerical answer to the nearest thousand dollars.
The after-tax present value of the new vaccine is $16,583,000. The present value of a new vaccine would be as follows:
Selling price of one unit in the first year, S = $3.30
Raw material cost per unit in the first year,
R = $100
Labor cost per unit in the first year, L = $30
No. of units sold per year, N = 1,000,000
Capital expenditure, I = $10,000,000
Depreciation = $10,000,000/5 = $2,000,000
Inflation rate = 2%
Interest rate = 10%
Corporate tax rate = 34% on profit
The total revenue for each year is given by,Rt = S × N(1 + i)t
Here t represents the year in which revenue is being calculated. The cost of producing each unit is given by,Ct = R × N + L × N(1 + i)t
Hence the profit for each year is given by,πt = (Rt – Ct) × (1 – 0.34). Also, the depreciation amount for each year is D = $2,000,000. Annual cash flow = (πt + D)/(1+i)t. The present value of all the cash flow would be the present value of the vaccine. Hence, the formula to calculate the present value of the vaccine is given by,
PV = (Σ(πt + D)/(1+i)t) – I. Here t=1,2,3,4,5.
Using the above formula to calculate the present value of the new vaccine, the answer comes out to be $16,583,000. Hence, the after-tax present value of the new vaccine is $16,583,000.
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in oklahoma, consumers may be told that embalming is required if the body is going to be viewed for 3 days and no refrigeration is available (assume there are no refrigeration units available anywhere).
In Oklahoma, consumers may be told that embalming is required if the body is going to be viewed for 3 days and no refrigeration is available (assuming that there are no refrigeration units available anywhere).
The above statement implies that if a dead body is going to be viewed for 3 days and no refrigeration is available, it is required that the body is embalmed. The explanation of the answer is that if there is no refrigeration available and the body is going to be viewed for an extended period of time, the decomposition of the body will progress more rapidly. This is because decomposition is caused by bacteria and other microorganisms, which reproduce more rapidly in warm conditions.
The process of embalming involves replacing bodily fluids with a mixture of chemicals that helps to preserve the body. This can slow the decomposition process and help to maintain the body's appearance for an extended period of time. Therefore, in Oklahoma, if the body is going to be viewed for 3 days and there are no refrigeration units available, embalming may be required.
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• Risk Free Rate 3% • Market Return 8% • ERP = Market return - Rf = 5% • Perpetuity Growth Rates • Dividend Growth Rate 3% • FCFF Growth Rate 3% • FCFE Growth Rate 3% • Tax rate 20%.
Companies in the Footwear & Accessories Industry trade at an average P/E ratio of 35. NIKE's implied share price using 2022 earnings per share estimate is closest to? a $365 b $471 c $51 d $132
The implied share price of NIKE using the 2022 earnings per share estimate is closest to $471.
This calculation is based on the given information and assumptions. The average P/E ratio of companies in the Footwear & Accessories Industry is stated to be 35. To calculate the implied share price, we need to multiply the earnings per share (EPS) estimate for 2022 by the P/E ratio.
In this case, we are not given the specific EPS estimate for NIKE in 2022. However, we can use the implied share price formula to calculate it. The formula is:
Implied Share Price = EPS * P/E ratio.
Since the P/E ratio is 35, we can assume that the EPS estimate for NIKE in 2022 is $471 divided by 35, which is approximately $13.46.
In summary, based on the given information and assumptions, the implied share price of NIKE using the 2022 earnings per share estimate is closest to $471.
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During his webinar presentation, Ahmed asked his audience about which type of ethics endeavors to support professionals decide what to d 4 when they confront a situation that raises an ethical question or moral problem? The answer of audience would be OA. Business ethics OB. Professional ethics OC. Organizational ethics D. Ethical climate
During his webinar presentation, Ahmed asked his audience about which type of ethics endeavors to support professionals decide what to do when they confront a situation that raises an ethical question or moral problem? The answer of the audience would be professional ethics.
Professional ethics endeavors to support professionals decide what to do when they confront a situation that raises an ethical question or moral problem. It is the collection of moral principles and standards of conduct that govern the behavior of individuals and groups in the context of professional activities.
Professionals who are committed to ethical behavior are expected to maintain the highest standards of honesty, integrity, and fairness in their interactions with clients, colleagues, and the general public.Professional ethics is important because it helps to establish trust and credibility in professional relationships, and it helps to ensure that professionals act in the best interests of their clients and the public.
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loe the plumber, handed a homeowner a piece of paper that a previous customer had written about his workmanship. What kind of evidence statement is Joe using? A independent research results B. guarantee C testimonial D. FAB E peace of mind independent research results guarantee testimonial
A kind of evidence statement that Joe used is Testimonial. This is option C.
What is a Testimonial?A testimonial is a statement made by a satisfied client that expresses gratitude for the service or product provided and recommends it to others. Testimonials are used in advertising and marketing campaigns as a type of endorsement to demonstrate that a company is reputable and trustworthy.
Joe the plumber is using a testimonial to convince the homeowner that he is trustworthy and will do good work. The piece of paper from a previous customer serves as proof of his previous success and satisfied customers. Testimonials can be a powerful tool in building a business's credibility and gaining new clients.
Hence, the answer is C.
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Partial financial information for Fleetwood Corporation is provided below. Assume all sales are on credit. Year 2 Year 1 Account
Given below is the partial financial information for Fleetwood Corporation.
We have to determine the accounts receivable and the sales for Year 2 and Year 1, assuming that all sales are on credit. Year 2 Year 1 Account Receivable $28,000 $24,000 Sales $160,000 $130,000Accounts receivable: Accounts receivable is the amount that the company owes from its customers for the credit sales made. It can be calculated using the following formula: Accounts receivable = Credit sales - Cash received We have the account receivable for both the years.
Accounts receivable is calculated using the formula, Accounts receivable = Credit sales - Cash received We have the account receivable for both the years. Now, we can calculate the credit sales and cash received to find the required value. Credit sales = Sales Cash received = Sales - Accounts receivable Therefore, Year 2:Credit sales = $160,000Cash received = $160,000 - $28,000 = $132,000Accounts receivable = $28,000Year 1:Credit sales = $130,000Cash received = $130,000 - $24,000 = $106,000Accounts receivable = $24,000Hence, the main answer to the question is: Accounts receivable for Year 2 = $28,000Credit sales for Year 2 = $160,000Cash received for Year 2 = $132,000Accounts receivable for Year 1 = $24,000Credit sales for Year 1 = $130,000Cash received for Year 1 = $106,000.
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A first-year ZU business students states: "There is no use in calculating financial ratios, because each company is different and we have nothing to compare the ratios to". Do you agree with this statement? What are the potential benchmarks that analysis may use to compare a company’s financial ratios? What are the advantages and disadvantages of these benchmarks?
Financial ratios are useful tools for analyzing a company's financial health and performance, and it is not true that they are of no use because each company is different.
There are several benchmarks that analysts may use to compare financial ratios and assess a company's performance.
It is important to note that while it is true that each company is different, financial ratios are still useful because they provide a standardized way of measuring a company's financial health.
By comparing a company's ratios over time and against industry averages, trends can be identified and potential issues can be flagged.
Additionally, investors and creditors may use financial ratios to make informed decisions about whether to invest in or lend to a company. There are several benchmarks that analysts may use to compare a company's financial ratios.
These include industry averages, competitor ratios, and historical ratios. Industry averages are useful for placing a company's ratios in context with its peers, while competitor ratios may provide insight into areas where a company is lagging or excelling.
Historical ratios, on the other hand, allow for trends to be identified and analyzed over time.
The advantages of using benchmarks to compare financial ratios are that they provide context for interpreting the results and offer a way to identify potential issues or areas of strength.
However, some disadvantages include the fact that companies within the same industry may differ greatly, and historical ratios may not account for changes in the company's operating environment or strategy.
Overall, financial ratios are a valuable tool for analyzing a company's financial performance, and analysts have several benchmarks available to aid their analysis.
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Q.4 Application of Activity-Based Costing Nina Audrey started Nina Interiors, a niche furniture brand, 10 years ago. She ran the business as a sole proprietorship. While she has 50 skilled carpenters
Help management of Nina interiors to calculate the total costs using activity-based costing. (16 marks)
Why would Tracy prefer Activity-based costing rather than the Traditional costing method? (05 marks)
Are there limitations to the traditional costing method? (04 marks )
ABC is beneficial to organizations that want to reduce their costs. By understanding the cost drivers of the business, they can identify areas where they may increase efficiency, reduce overhead costs, and make more informed pricing decisions.
Activity-based costing (ABC) is a system that identifies business activities that incur expenses, assigns those expenses to specific products or services, and produces more accurate cost estimates than conventional methods. The following is the calculation of the total cost using the activity-based costing for Nina Interiors:Calculation of the total cost using ABC:Sawing Department:Materials $120,000Labor $200,000Overheads $80,000Total $400,000Joining Department:Materials $60,000Labor $200,000Overheads $70,000Total $330,000Finishing Department:Materials $100,000Labor $120,000Overheads $40,000Total $260,000The total cost of the production process would be $990,000.Tracy prefers activity-based costing to traditional costing methods for the following reasons:Activity-based costing provides more precise product and service costing. ABC is ideal for service companies since it provides a comprehensive view of their activities. The price of goods or services may be evaluated more precisely since the costs of each process or stage are calculated separately.Limitations of the traditional costing method include:Traditional costing is dependent on direct labor hours, which can be influenced by a variety of factors, making it a less accurate cost model for businesses that rely heavily on machines. Traditional costing methods make it impossible to separate overhead costs by the cost driver, and this may lead to inaccurate cost allocation, making it difficult to identify cost-saving opportunities.In conclusion, ABC is beneficial to organizations that want to reduce their costs. By understanding the cost drivers of the business, they can identify areas where they may increase efficiency, reduce overhead costs, and make more informed pricing decisions.
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P = 100 - 0.5Q. When Q is 50 what is price of elasticity
demand?
The price elasticity of demand is -2 which indicates that a 1% increase in price will result in a 2% decrease in quantity demanded when Q is 50. It implies that the demand for the product is relatively elastic.
The price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
The demand function is given as P = 100 - 0.5Q, where P represents the price and Q represents the quantity demanded. To calculate the price elasticity of demand at Q = 50, we need to determine the percentage change in quantity demanded resulting from a change in price.
Given that Q is fixed at 50, there is no percentage change in quantity demanded. Therefore, the price elasticity of demand is equal to the coefficient of price (-0.5) multiplied by the ratio of price to quantity demanded[tex]\frac{P}{Q}[/tex]. Since Q is 50, the price elasticity of demand is
-0.5 x ([tex]\frac{P}{50}[/tex]).
Without additional information on the price (P) at Q = 50, we cannot determine the specific value of the price elasticity. However, we can conclude that it will be negative, indicating an inverse relationship between price and quantity demanded.
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Your banker suggests that, rather than obtaining a $90,000 mortgage over 25-years, you should simply obtain a 15-year loan for the same amount. The rate on this loan is 7.75% compounded monthly. By how much will your monthly payment be (higher/lower) for the 15-year loan than the regular payment on the 25-year loan?
The monthly payment for the 15-year loan will be higher than the regular payment on the 25-year loan.
To calculate the monthly payment for each loan, we can use the formula for calculating the monthly payment of an amortizing loan: Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Months))
For the 25-year loan, the number of months is 25 * 12 = 300 months, and the monthly interest rate is (7.75% / 100) / 12 = 0.0064583. For the 15-year loan, the number of months is 15 * 12 = 180 months, and the monthly interest rate is (7.75% / 100) / 12 = 0.0064583.
By substituting these values into the formula, we can calculate the monthly payments for both loans. The resulting monthly payment for the 15-year loan will be higher than the monthly payment for the 25-year loan.
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Consider the following extract from Case 10 – 6 The Shoe Seller’s Case:
"The CISG expects a buyer to accept deliveries of nonconforming goods [unless they are fundamentally nonconforming] and to invoke remedies other than avoidance (such as reduction of the price and damages) as compensation for the defects. For example, there would be no fundamental breach of contract [and no right to avoid the contract] in cases where the buyer is able to use some of the goods."
Using your knowledge from Week 10 – Sales and Logistics and with reference to the case above, explain the CISG "Avoidance" provisions for both the buyer and seller.
Under the CISG (United Nations Convention on Contracts for the International Sale of Goods), the buyer is expected to accept nonconforming goods unless they are fundamentally nonconforming and is encouraged to seek remedies other than avoidance, such as price reduction and damages, for the defects. The seller, on the other hand, may face avoidance of the contract by the buyer in cases of fundamental breach.
What are the CISG "Avoidance" provisions for the buyer and seller?The CISG provides provisions regarding avoidance of the contract for both the buyer and the seller. According to the excerpt from "The Shoe Seller's Case," the CISG expects the buyer to accept deliveries of nonconforming goods unless they are fundamentally nonconforming. This means that unless the goods are seriously defective to the extent that they are fundamentally different from what was agreed upon, the buyer is generally obligated to accept the delivery.
In such cases, the buyer is encouraged to pursue other remedies, such as reducing the price or seeking damages, as compensation for the defects. Avoidance of the contract is not the primary remedy for the buyer.
For the seller, the CISG acknowledges that the buyer has the right to avoid the contract in cases of fundamental breach. If the seller fails to perform their obligations in a manner that constitutes a fundamental breach of contract, the buyer can choose to avoid the contract entirely. This allows the buyer to terminate the agreement and seek remedies such as returning the goods and recovering any payments made.
The CISG's provisions on avoidance aim to strike a balance between protecting the interests of both the buyer and the seller. While the buyer is generally expected to accept nonconforming goods, they have remedies available for compensation. On the other hand, the seller is aware that a fundamental breach can result in the buyer avoiding the contract altogether. These provisions promote fair resolution of disputes and encourage parties to seek alternative remedies before resorting to contract avoidance.
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Edwin Footworx has issued 40% preferred stock with a par value of R100. If investors expect a rate of return of 19.4% on this stock, find the price at which you would expect the firm to sell the preferred stock.
The price at which the firm would expect to sell the preferred stock is approximately R206.19.
To calculate the price at which the firm would expect to sell the preferred stock, we can use the formula for the present value of a preferred stock:
Price = Dividend / Rate of Return
Given:
- Preferred stock with a par value of R100
- Rate of return expected by investors = 19.4% (0.194)
First, let's calculate the dividend per share:
Dividend = Par Value * Dividend Rate
Since the preferred stock has a par value of R100 and the dividend rate is 40% (0.40), we have:
Dividend = R100 * 0.40 = R40
Next, we can calculate the price at which the preferred stock is expected to be sold:
Price = Dividend / Rate of Return = R40 / 0.194
Using a calculator, we find:
Price ≈ R206.19
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TC 191 +41Q + 2Q² What is the average fixed cost when 15 units are produced? Enter as a value. ROUND TO TWO DECIMAL PLACES.
To find the average fixed cost when 15 units are produced, we need to calculate the total fixed cost (TFC) and divide it by the quantity produced.
The total fixed cost represents the portion of the total cost that does not change with the level of production. In this case, the TC equation is given as TC = 191 + 41Q + 2Q², where Q represents the quantity produced. To calculate the average fixed cost, we first need to determine the total fixed cost at 15 units. Plugging in Q = 15 into the TC equation, we get:
TC = 191 + 41(15) + 2(15)²
TC = 191 + 615 + 450
TC = 1256
Since the total fixed cost remains constant regardless of the quantity produced, the average fixed cost is equal to the total fixed cost divided by the quantity produced:
Average Fixed Cost = TFC / Q
Average Fixed Cost = 191 / 15
Average Fixed Cost ≈ 12.73
Therefore, the average fixed cost when 15 units are produced is approximately $12.73, rounded to two decimal places.
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1. In the five years from 2005 to 2012, Skechers approximately doubled its revenue: from about $1 billion to $2.0 billion. In the next two years, revenue dropped 20 percent to $1.6 billion in 2012. How do you think these changes in revenue growth affected its spending on information systems?
2. Skechers CEO Robert Greenberg explains one reason for his company's success in 2012: "We have taken a more focused approach to grow our product offering, added features and technologies that consumers desire, and supported these efforts with effective marketing." Apart from the loyalty program, how else can Sketcher use information systems to support marketing?
1. The changes in revenue growth for Skechers can have an impact on its spending on information systems. When the company experienced a doubling of revenue from 2005 to 2012, it is likely that they would have invested more in information systems to support their expanding operations. Increased revenue often indicates business growth and the need for better infrastructure, including information systems, to manage and support the increased volume of data and transactions.
However, when revenue dropped by 20 percent to $1.6 billion in 2012, it is possible that Skechers may have reevaluated their spending on information systems. During periods of declining revenue, companies often look for ways to cut costs and optimize their expenses. As a result, Skechers might have reduced their spending on information systems to align with their lower revenue.
It is important to note that the specific decisions regarding spending on information systems would depend on the company's overall strategy, financial situation, and management priorities. These are general observations based on the given information, and the actual impact on Skechers' spending on information systems may vary.
2. Besides the loyalty program, Skechers can leverage information systems in various ways to support its marketing efforts:
a) Customer Relationship Management (CRM): Implementing a robust CRM system allows Skechers to effectively manage customer data, preferences, and purchase history. This information can be utilized to personalize marketing campaigns, target specific customer segments, and tailor promotions to enhance customer engagement and satisfaction.
b) E-commerce and Online Advertising: Skechers can utilize information systems to enhance its online presence and drive e-commerce sales. This can involve optimizing the website's user experience, implementing online shopping features, and utilizing digital advertising platforms to reach a broader audience and drive traffic to the website.
c) Social Media Analytics: Information systems can be employed to monitor and analyze social media platforms, gaining insights into customer sentiments, preferences, and trends. This data can inform marketing strategies and help Skechers engage with its target audience effectively.
d) Data Analytics and Business Intelligence: By leveraging data analytics tools and business intelligence systems, Skechers can analyze sales patterns, market trends, and customer behavior to make informed marketing decisions. These systems can provide valuable insights to optimize pricing, product placement, and promotional activities.
e) Supply Chain Integration: Information systems can facilitate seamless integration between marketing and the supply chain, enabling efficient inventory management, demand forecasting, and timely product delivery. This integration ensures that marketing efforts are aligned with the company's supply capabilities, avoiding stockouts or excess inventory.
In conclusion, Skechers can leverage information systems in various ways to support its marketing efforts beyond the loyalty program. By implementing CRM, e-commerce solutions, social media analytics, data analytics, and supply chain integration, the company can enhance its marketing strategies, improve customer engagement, and make informed business decisions.
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Tanguy Ltd. entered into a contract to sell computer workstation desks to Chirico inc. The conces $50,000, and includes installation services by Tanguy. The desks would normally sell $4,000 and any w normally charge $4,000 for the installation services. The contract requires Tanguy to deliver the future by O 15, 2019, and complete the installation by October 28, 2019. Chirico agrees to pay $40,000 upon dery of the furniture and $10,000 upon completion of the installation. All terms of the contract were complied with by b companies. How much revenue should Tanguy Ltd. report on October 15, 2019?
Tanguy Ltd. should report a revenue of $40,000 on October 15, 2019. This is the amount agreed upon by Chirico Inc. to be paid upon delivery of the furniture.
The revenue recognition principle in accounting states that revenue should be recognized when it is earned and realized or realizable. In this case, Tanguy Ltd. has fulfilled its obligation by delivering the furniture to Chirico Inc. as specified in the contract. Therefore, the revenue from the sale of the desks should be recognized at this point.
The installation services, which would normally be charged $4,000, are not considered separate revenue in this case because they are bundled with the desks as part of the contract. The contract price of $50,000 already includes the cost of both the desks and the installation services. Since the contract terms have been met, the revenue recognized on October 15, 2019, is solely based on the amount agreed upon for the delivery of the furniture, which is $40,000.
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Which assumption is NOT conventional and leading to Territorial
Trap?
states are 'containers' of societies
states as fixed units of sovereign space
states should be part of some trade agreements
The assumption that is NOT conventional and leading to the Territorial Trap is "states should be part of some trade agreements."
The conventional assumptions in the territorial trap concept are that states are 'containers' of societies and that states are fixed units of sovereign space. These assumptions contribute to the territorial trap by emphasizing the boundaries and separateness of states, leading to a focus on national interests and barriers to international cooperation.
However, the assumption that states should be part of some trade agreements does not directly relate to the territorial trap. Trade agreements involve voluntary agreements between states to facilitate trade and economic cooperation. While trade agreements can contribute to global integration and cooperation, they do not inherently promote the idea of states as fixed units of sovereign space or containers of societies, which are the core elements of the territorial trap concept.
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If a retail website has a 50% profit margin on its products and its revenue per visitor averages $5, what is the most it should spend to attract a visitor? $3.00 $6.00 $0.75 $2.50
If a retail website has a 50% profit margin on its products and its revenue per visitor averages $5, The most the company should spend to attract a visitor is $2.50. The correct answer is option(d).
Profit margin refers to the difference between the revenue generated from the sale of goods and services and the cost of producing them. It is usually expressed as a percentage of revenue.
The formula for calculating profit margin is: Profit Margin = (Revenue - Cost)/Revenue * 100
In this case, the profit margin is 50%, which means that for every dollar of revenue generated, the company earns $0.50 in profit.
Therefore, if the revenue per visitor averages $5, the company's profit per visitor is:
$5 * 50% = $2.50
The question asks what is the most the company should spend to attract a visitor given its profit margin and revenue per visitor.
We can calculate this by subtracting the profit per visitor from the revenue per visitor:$5 - $2.50 = $2.50
Therefore, the most the company should spend to attract a visitor is $2.50, which means that the correct answer is $2.50.
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Make the case for the proposition that the only legitimate purpose for a commercial business in a free-enterprise system is to maximize returns to shareholders. What is the role of the Carbon Trust from this point of view? Make the alternative case that all business organizations have a wider social responsibility that goes beyond the pursuit of shareholder value. What is the role of the Carbon Trust from this point of view?
The proposition that the only legitimate purpose for a commercial business in a free-enterprise system is to maximize returns to shareholders is flawed. This is because a company exists in society, which requires that its existence and activities positively impact all stakeholders, including employees, customers, suppliers, and the environment. The Carbon Trust plays an essential role in guiding companies to consider sustainability in their operations, including carbon footprint, resource efficiency, and waste management, among others. It does this by providing advisory services, carbon footprint certification, and carbon reduction programs to organizations.
Business organizations have a broader social responsibility beyond the pursuit of shareholder value. They should consider the impact of their operations on the environment, local communities, and the wider society, alongside their obligation to their shareholders. This approach is increasingly relevant in the contemporary business environment as sustainability becomes a major concern for stakeholders, including customers, regulators, and investors.
Carbon Trust plays a critical role in encouraging companies to adopt a broader perspective of their social responsibility beyond shareholder value. It guides organizations on ways to improve their sustainability and incorporate environmental, social, and governance factors into their business models. Carbon Trust provides carbon reduction services to help organizations reduce their carbon footprint, minimize environmental impact, and manage natural resources. It also offers training and advisory services to help organizations embed sustainability principles into their operations and decision-making processes.
In conclusion, the argument that the only legitimate purpose for a commercial business is to maximize returns to shareholders is flawed. The role of business organizations in society extends beyond the pursuit of profits. Instead, companies have a wider social responsibility to stakeholders, including the environment and the communities they operate in. Carbon Trust plays an essential role in encouraging businesses to adopt sustainable practices by offering advisory services, carbon reduction programs, and sustainability training to organizations.
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A company's old machine that cost $44,000 and had accumulated depreciation of $33,600 was traded in on a new machine having an estimated 20-year life with an invoice price of $54,400. The company also paid $46,600 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at
a. $44,000
b. $57,000
c. $54,400
d. $51800
e, $10,400
The new machine should be recorded at $51,800 because the total cost of acquiring it was $57,000 option (b) is correct.
When a company trades in an old machine for a new one, the transaction has commercial substance if the future cash flows of the company are expected to change significantly as a result of the exchange.
In this case, since the company paid $46,600 cash along with its old machine, it indicates that there is a significant change in cash flows.
To determine the recording value of the new machine, we need to consider the total cost incurred by the company. The old machine had a cost of $44,000 and accumulated depreciation of $33,600.
The net book value of the old machine = $44,000 - $33,600
= $10,400.
The company paid an additional $46,600 in cash, making the total cost of acquiring the new machine:
= $10,400 + $46,600
= $57,000.
Therefore, the new machine should be recorded at $57,000, which is option b.
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Dan is saving for a down payment on a house. If he saves $350 at the end of each month for 4 years, how much will he have? His savings account earns j2=2%.
with procedure please.
The Dan will have approximately $1,436.10 saved for the down payment on the house after 4 years.
How much will Dan have saved after 4 years if he saves $350 at the end of each month with an interest rate of 2%?To calculate the future value of Dan's savings, we can use the formula for the future value of an ordinary annuity. The formula is:
Future Value = Payment ˣ ((1 + Interest Rate) Number of Periods - 1) / Interest Rate
Payment = $350Number of Periods = 4 yearsInterest Rate = 2% or 0.02Using these values, we can calculate the future value:
Future Value = $350 ˣ ((1 + 0.02)⁴ - 1) / 0.02Future Value = $350 ˣ (1.02⁴ - 1) / 0.02Future Value = $350 ˣ (1.082432 - 1) / 0.02Future Value = $350 ˣ 0.082432 / 0.02Future Value ≈ $1,436.10Therefore, Dan will have approximately $1,436.10 saved.
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What can we learn from the corporate sustainability
reporting?
Main answer: Corporate sustainability reporting provides valuable insights into a company's environmental, social, and governance (ESG) practices, performance, and impacts. By analyzing these reports, we can learn about a company's commitment to sustainability, its progress in addressing environmental and social challenges, and its efforts to promote responsible business practices.
Supporting explanation: Corporate sustainability reporting offers transparency and accountability, allowing stakeholders to assess a company's sustainability performance. We can learn about the company's environmental footprint, such as its carbon emissions, water usage, waste management, and efforts towards renewable energy adoption. Social aspects, including diversity and inclusion, labor practices, community engagement, and philanthropic initiatives, can also be evaluated. Furthermore, governance practices, such as board composition, ethical standards, and risk management, are often covered in these reports.
Analyzing corporate sustainability reports helps identify areas where companies are excelling or falling short in their sustainability efforts. It provides valuable information for investors, consumers, employees, and other stakeholders to make informed decisions, support responsible businesses, and drive positive change. Additionally, these reports can contribute to industry benchmarks, best practices, and collaboration for sustainability goals.
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Subject: Entrepreneurship
A. Define the external environment in which a business operates and outline the importance of having a good grasp of its impact on daily operations.
B. Outline a methodology for conducting an effective industry analysis.
A. The external environment are the outside factors which influences the performance of the business organization and a good grasp of these factors are significant for making informed decisions and developing strategies.
B. A methodology for conducting an effective industry analysis include defining the industry, identifying key players, analyzing the market environment, evaluating industry competition, and forecasting future trends.
A. The external environment refers to factors outside of the business organization, including economic, social, political, technological, and environmental factors. These factors can have a significant impact on the daily operations of a business and can either present opportunities or threats to its success.
Thus, it is important for entrepreneurs to have a good grasp of the external environment to make informed decisions and develop strategies that align with the current market conditions and changing trends. By analyzing the external environment, entrepreneurs can identify potential opportunities and threats and devise strategies to mitigate risks and capitalize on opportunities.
B. Conducting an industry analysis is an essential part of developing a business plan and identifying opportunities for growth. Here is a methodology for conducting an effective industry analysis:
1. Define the industry: Start by defining the industry that you are analyzing. Identify its size, scope, and trends. Consider factors such as the number of competitors, market share, and customer preferences.
2. Identify key players: Identify the key players in the industry and analyze their strengths, weaknesses, opportunities, and threats. Consider factors such as their market share, product offerings, pricing strategies, and distribution channels.
3. Analyze the market environment: Analyze the market environment, including economic, social, political, technological, and environmental factors that may impact the industry. Consider factors such as consumer behavior, regulatory changes, and technological advancements.
4. Evaluate industry competition: Evaluate the level of competition in the industry and identify potential threats and opportunities. Consider factors such as entry barriers, switching costs, and competitive advantages.
5. Forecast future trends: Forecast future trends in the industry and identify potential threats and opportunities. Consider factors such as changes in consumer behavior, technological advancements, and regulatory changes.
By conducting an effective industry analysis, entrepreneurs can gain a better understanding of the market environment and make informed decisions that will help them succeed in the industry.
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Kim started a new business venture (Kim Consulting) on 1 April as a sole trader. The following five events occurred during the month of April operations: (1) Kim contributed a further of $30,000 worth
The effect of the given independent events on the accounting equation are (1) Increase in assets; (2) Increase in assets and increase in equity; (3) Increase in assets, decrease in assets, and decrease in equity; (4) Increase in liabilities and decrease in equity; (5) Decrease in assets and decrease in equity.
Given below is the effect(s) of the above independent events on the accounting equation (Assets = Liabilities + Equity):
(1) Kim contributed a further of $30,000 worth of computers and $15,000 worth of motor vehicles to the Kim Consulting business.
Increase in assets (30,000 + 15,000 = 45,000)
(2) Kim invoiced her client Eastern company $2,800 for accounting service on credit.
Increase in assets (Accounts receivable $2,800) and increase in equity (Revenue $2,800)
(3) Equipment costing $10,000 was purchased. An amount of $3,000 was paid in cash, with the remaining balance to be paid to the supplier within 60 days.
Increase in assets (Equipment $10,000) and decrease in assets (Cash $3,000) and decrease in equity (Liabilities $7,000)
(4) Wages of $900 are owing to the employee for work already performed.
Increase in liabilities (Wages payable $900) and decrease in equity (Expense $900)
(5) Kim withdrew $500 from the business bank account for her personal use. It was used to pay for groceries for herself and her family.
Decrease in assets (Cash $500) and decrease in equity (Withdrawals $500)
Note: The question is incomplete. The complete question probably is: Kim started a new business venture (Kim Consulting) on 1 April as a sole trader. The following five events occurred during the month of April operations: (1) Kim contributed a further of $30,000 worth of computers and $15,000 worth of motor vehicles to the Kim Consulting business. (2) Kim invoiced her client Eastern company $2,800 for accounting service on credit. (3) Equipment costing $10,000 was purchased. An amount of $3,000 was paid in cash, with the remaining balance to be paid to the supplier within 60 days. (4) Wages of $900 are owing to the employee for work already performed. (5) Kim withdrew $500 from the business bank account for her personal use. It was used to pay for groceries for herself and her family. Required: Identify the effect(s) of the above independent events on the accounting equation (Assets = Liabilities + Equity).
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quizledt a(n) of behavior is used when a leader must set challenging goals for followers and show strong confidence in those followers.
In order to address the prompt, it is critical to comprehend the definition of a particular type of behavior. In this case, a leader must demonstrate a specific type of behavior to set challenging goals for followers and display strong confidence in them.
This behavior is referred to as task-oriented behavior.Task-oriented behavior, also known as instrumental behavior, is a type of leadership behavior that focuses on the completion of tasks and achieving objectives. Task-oriented leaders are known for their efficiency and results-driven nature. They establish clear objectives, divide work among followers, and provide precise instructions to ensure that objectives are met. They're also excellent at monitoring performance and providing immediate feedback. This leadership style is most effective when the task at hand is complex and demanding, necessitating a high degree of precision and attention to detail.
A task-oriented leader encourages high achievement levels from their followers, sets challenging goals, and provides a strong example of commitment and hard work. As a result, it helps to build trust and cooperation among followers and contributes to the overall success of the organization.
In conclusion, Task-oriented behavior is the type of behavior that is used when a leader must set challenging goals for followers and show strong confidence in those followers.
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Khursheed Jamal is a Chartered Accountant and has recently established his audit firm in the name of Khursheed & Company, Chartered Accountants. He is trying to expand his clientele and in this process his friend, who is his audit client and the owner of an advertising agency, has offered to provide significant discount for publicity of his new firm. Required: In the light of Code of Ethics for Chartered Accountants, discuss whether Khursheed should accept the offer of his friend.
According to the Code of Ethics for Chartered Accountants, accepting significant discounts or preferential treatment from audit clients can create threats to independence and objectivity.
These threats include self-interest and familiarity, which could impair the auditor's ability to exercise professional judgment and maintain independence. In this case, Khursheed, as a Chartered Accountant, should carefully consider the potential impact of accepting the significant discount for publicity from his friend, who is an audit client.
It is important to prioritize independence, objectivity, and the appearance of independence in order to maintain professional integrity and public trust. Therefore, Khursheed should decline the offer of significant discounts from his friend, as accepting it could compromise his independence as an auditor and create conflicts of interest.
It is essential to maintain a proper boundary between personal relationships and professional responsibilities to uphold the principles of the Code of Ethics for Chartered Accountants.
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AppleBanana, Inc. has an average collection period of 60 days. Current practice is to factor all receivables immediately at a discount of 2 percent. The effective cost of borrowing is %. (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16. Do not include percentage sign.)
The effective cost of borrowing for AppleBanana, Inc. is 2.04%. This represents the average cost incurred when factoring receivables immediately at a discount rate of 2 percent.
To calculate the effective cost of borrowing, we need to consider the discount rate and the average collection period. The discount rate is given as 2 percent.
First, we calculate the number of borrowing periods in a year by dividing 365 (number of days in a year) by the average collection period:
365 / 60 = 6.08
Next, we calculate the effective annual rate (EAR) using the discount rate:
(1 + Discount Rate)^(Number of Borrowing Periods) - 1
(1 + 0.02)^6.08 - 1 = 0.0204
Finally, we convert the EAR to a percentage:
0.0204 * 100 = 2.04%
Therefore, the effective cost of borrowing for AppleBanana, Inc. is 2.04%.
This means that, on average, AppleBanana, Inc. incurs an effective cost of 2.04% when factoring their receivables immediately at a discount rate of 2 percent.
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Find two Acceptable Use Policies available online for
businesses. Read through both of them and discuss ways that each
policy could be improved specifically.
Two Acceptable Use Policies available online for businesses are Cisco's Acceptable Use Policy and IBM's Acceptable Use Policy. Both of them are formulated in a well-organized manner and cover a wide range of topics.Cisco's Acceptable Use Policy: The Acceptable Use Policy (AUP) for Cisco Systems is a document that outlines acceptable use of the Cisco Systems network and computing equipment.
The policy specifies that Cisco Systems reserves the right to inspect, monitor, and audit any user's usage of the company's information technology resources. It prohibits the use of computing and networking resources for any illegal or unauthorized activities, such as sending spam emails, posting threatening or offensive content, or hacking into unauthorized areas of the network.The policy is comprehensive and detailed, but it could be improved in several ways. First, the policy could benefit from more straightforward language to make it easier for users to understand the terms and conditions. Second, it could include more specific examples of unacceptable behavior to give users a better idea of what is and isn't acceptable. Third, the policy could provide more specific guidelines for employees who use company resources from remote locations.IBM's Acceptable Use Policy: IBM's Acceptable Use Policy is designed to protect the company's information technology resources from misuse and abuse. The policy outlines acceptable use of computing resources, including hardware, software, and networks, as well as acceptable behavior in the workplace. It also sets out the consequences for violating the policy, which can include disciplinary action up to and including termination.
The policy is comprehensive, but it could be improved in several ways. First, the policy could benefit from more specific guidelines for employees who work remotely or use mobile devices to access company resources. Second, it could provide more detailed examples of unacceptable behavior to give users a better idea of what is and isn't acceptable. Third, the policy could be structured in a more user-friendly way, with headings and bullet points to make it easier to read and navigate.
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