The annual Economic Order Quantity (EOQ) for Nola Limited's product is approximately 300 units.
To calculate the annual Economic Order Quantity (EOQ), we need to use the formula:
EOQ = √((2 * Demand * Ordering Cost) / Holding Cost)
Given the following information:
- Sales per month: 7,500 units
- Carrying costs as a percentage of the unit purchase price: 20%
- Purchase price per unit: R100
- Cost of placing an order: R10
First, let's calculate the annual demand:
Annual Demand = Sales per month * 12 months
Annual Demand = 7,500 units * 12 = 90,000 units
Next, let's calculate the holding cost per unit:
Holding Cost = Carrying costs as a percentage * Purchase price per unit
Holding Cost = 20% * R100 = R20
Now, let's calculate the EOQ:
EOQ = √((2 * 90,000 * R10) / R20)
EOQ = √(1,800,000 / 20)
EOQ = √90,000
EOQ ≈ 300
Learn more about purchase here:
https://brainly.com/question/31035675
#SPJ11
Morgan Motor Company: can the British retro sports car brand still be successful after 100 years? The once proud British car industry has all but vanished. However, there is one famous producer left in the UK: the Morgan Motor Company. It is the oldest privately held car company in the world and today the company is still 100 per cent family owned. The company was founded in 1909 by H.F.S. Morgan and was run by him until 1959. Peter Morgan, the son of H.F.S., ran the company until a few years before his death in 2003. The company is currently run by Charles Morgan, Peter's son. Morgan is based in Malvern Link, in Worcestershire, and employs 163 people. All the cars are assembled by hand and the waiting list is one to two years, although it has been as high as 10 years in the past. Business is strong, despite the economic slowdown. In 1997 Morgan made 480 cars; 14 years later, in 2011, the figure was 700. Morgan Says that one day it may make as many as 900-1,000 cars a year, but only if that can be done the Morgan way and what a totally unique and utterly inimitable way to make sports cars that is! In 2011 the estimated revenue was around £25 million. The operating profits were £320,000 in 2011, compared with £665,000 in 2009. The company employs 160 people, of whom 130 are production floor employees. Morgan history The first Morgan design was, of course, the famous Three-wheeler. H.F.S. Morgan designed a fun car, the Morgan runabout, for people with little money but with a sense of adventure. The car was a great success and in the 1920s the Morgan factory in Malvern was making 2,500-3,000 cars a year, with a smaller number being built under licensee in France under the Darmont Morgan brand. Nevertheless, each year production always sold out in advance, as customers were desperate for small cars at this time. Morgan Three-wheeler sales declined and by 1935 there were only 300 new orders. The reason for this was the arrival of mass-produced popular cars from Ford, Morris and Austin at a similar price but offering more features for the money.1. using celebrities to advertise or market a product appears to have increased markedly in the past few years in many industries. Explain two (2) benefits of using celebrities in Morgan's communication strategy. (6 marks)
2. identify two (2) Morgan's key competitive advantages in the international market. (6 marks)
3. Localizing market strategy is the process of adapting content, products, and services to specific local markets. Identify two (2) advantages of localization for Morgan Company's global market. (6 marks)
4. If Morgan wants to expand its products, briefly explain (1) advantage and one (1) disadvantage of usin
Using celebrities in Morgan's communication strategy can bring several benefits. Here are two potential advantages:
Increased Visibility and Brand Awareness: Celebrities often have a wide reach and a significant following, which can help generate attention and increase brand visibility. By associating themselves with a well-known personality, such as a popular actor or athlete, Morgan can capture the interest of a larger audience and create awareness about their brand. This can be particularly useful for a niche car company like Morgan, as it allows them to expand their reach beyond their core target market.
Enhanced Brand Image and Credibility: When a reputable celebrity endorses a product or brand, it can lend credibility and prestige to the company. By aligning themselves with a well-regarded individual, Morgan can enhance their brand image and create a perception of quality, style, and exclusivity. This association can help build trust among consumers and potentially attract new customers who are influenced by the celebrity's endorsement.
Overall, leveraging celebrities in their communication strategy can help Morgan gain attention, increase brand recognition, and enhance their brand's reputation in the market.
Learn more about strategy here
https://brainly.com/question/28561700
#SPJ11
Which of the following bonds has the greatest volatility (i.e., the modified duration)? (Hint: Duration and the volatility (the modified duration) are positively related.) eight-year zerct coupon bond four-year coupon bond eignt-year coupon bond four-year zero coupon bond
The four-year zero coupon bond will have the greatest volatility (modified duration) among the given s.
Duration measures the sensitivity of a bond's price to changes in interest rates.
longer the duration, the greater the bond's volatility.
A zero coupon bond does not pay any periodic interest payments (coupon), and the entire return is received at maturity. Since there are no coupon payments, the price of a zero coupon bond is more sensitive to changes in interest rates, resulting in a higher duration and greater volatility.
Among the s provided, the four-year zero coupon bond has the shortest maturity and no coupon payments, making it more volatile compared to the other bonds with coupon payments or longer maturities.
Learn more about bond here:
https://brainly.com/question/31994049
#SPJ11
Bruce Wayne, a resident of New York, and Barry Allen, a resident of Illinois, each bought $85,000 in stock at local offices in their home states from LexCorp, Inc., a business incorporated in Delaware with its principal place of business in New York. Both Wayne and Allen believe that they were cheated by LexCorp and would like to sue LexCorp for fraud. There are no federal questions is at issue. Alien can sue in state court in Ilinois because: LexCorpis a company and can therefore be sued anywhere. LexCorp's stock ts personal property and the court therefore has in rem jurisdiction. LexCorp has sueffeient mintrmum contacts with Illinols and exereising jurisdietion would not offend traditional notions of fair play and justice: LexCorp is a resident of anotiver stane and the amount in comtroversy is over $75,000
In the given case, Barry Allen can sue in state court in Illinois because LexCorp has sufficient minimum contacts with Illinois and exercising jurisdiction would not offend traditional notions of fair play and justice.
In rem jurisdiction is a type of personal jurisdiction that refers to the court's authority over property rather than an individual. This means that a court has the right to adjudicate claims against a particular property and can even enforce judgments against the property itself.
In the United States, minimum contacts is a legal term used to refer to the minimum amount of contact a company must have with a state to fall under its jurisdiction. When a company has sufficient minimum contacts with a state, that state's courts may exercise personal jurisdiction over that company.
Traditional notions of fair play and substantial justice are legal concepts that refer to whether a court's assertion of jurisdiction over a particular case is fair and reasonable. A court's assertion of jurisdiction over a case should not offend the traditional notions of fair play and substantial justice.In the given case, Barry Allen can sue in state court in Illinois because LexCorp has sufficient minimum contacts with Illinois and exercising jurisdiction would not offend traditional notions of fair play and justice.
Therefore, the correct option is "LexCorp has sufficient minimum contacts with Illinois and exercising jurisdiction would not offend traditional notions of fair play and justice."
Learn more about stock from the given link.
https://brainly.com/question/3194069
#SPJ11
A person has his current account and a saving account in a nationalized bank and a multipurpose account in ICICI bank Initial credit balance in all these three account was Rs 10.000.During the month. the first withdraw a sum of Rs 500 from the current account and then the balance in his saving account was half of his current account balance. He made the next withdrawal from ICICT bank account of Rs 1,000and then he balance in his ICICI bank account was double the difference between his current account and saving account. By using the concept of Matrix Method, find his initial balance at the beginning of the month in these account. Assume that there is no interest given by the bank.
Q4 A purchases 4 tons of rice and 3 tons of sugar for Rs 31,000 and B purchases 3 tons of rice and 2 tons of sugar at Rs 22,000. Find out the purchase price of a ton of rice and a ton of sugar under Cramer's Rule.
Let's solve the given problems step by step:
Calculation using the Matrix Method:
Let's denote the initial balance in the current account as C, the initial balance in the savings account as S, and the initial balance in the ICICI bank account as I. The given information can be represented by the following equations:
Equation 1: C + S + I = 10,000 (Initial credit balance in all three accounts)
Equation 2: C - 500 = 2 * (S - 500) (Balance in savings account is half of the current account balance after the first withdrawal)
Equation 3: I - 1,000 = 2 * (C - S - 1,000) (Balance in ICICI bank account is double the difference between current and savings accounts after the second withdrawal)
We can rewrite these equations in matrix form as follows:
| 1 1 1 | | C | | 10,000 |
| 1 0 -2 | | S | = | -1,000 |
|-2 1 1 | | I | | -2,500 |
To find the initial balance in each account, we can solve this system of equations using matrix methods such as Cramer's Rule.
Calculation using Cramer's Rule:
Using Cramer's Rule, we can find the solution for C, S, and I by finding the determinants of the coefficient matrix and the matrices obtained by replacing each column with the constant values.
The determinant of the coefficient matrix is:
| 1 1 1 |
| 1 0 -2 |
|-2 1 1 | = (1 * 0 * 1) + (1 * (-2) * (-2)) + (1 * 1 * 1) = 5
Next, we replace the first column of the coefficient matrix with the constant values:
| 10,000 1 1 |
| -1,000 0 -2 |
| -2,500 1 1 |
The determinant of this matrix is:
| 10,000 1 1 |
| -1,000 0 -2 |
| -2,500 1 1 | = (10,000 * 0 * 1) + (1 * (-2,500) * (-2)) + (1 * (-1,000) * 1) = 7,000
Similarly, we replace the second and third columns to find their determinants.
Replacing the second column:
| 1 10,000 1 |
| 1 -1,000 -2 |
|-2 -2,500 1 |
Determinant = (-1) * (10,000 * (-2) * 1 + 1 * (-2,500) * 1 + (-1,000) * 1 * 1) = 5,000
Replacing the third column:
| 1 1 10,000 |
| 1 0 -1,000 |
|-2 1 -2,500 |
Determinant = (1 * 0 * (-2,500)) + (1 * (-1,000) * (-2)) + (10,000 * 1 * 1) = 12,000
Finally, we can find the values of C, S, and I using Cramer's Rule:
C = Determinant of the matrix obtained by replacing the first column / Determinant of the coefficient matrix = 7,000 / 5 = 1,400
S
To know more about Matrix Method click this link -
brainly.com/question/32106604
#SPJ11
Please explain trade credit, promissory notes, and unsecured
bank loans and how they are used.
Trade credit, promissory notes, and unsecured bank loans are essential tools that businesses use to finance their operations and grow. Let's take a closer look at what each of these terms means.
Trade credit :Trade credit refers to a type of credit extended by one company to another, allowing the latter to purchase goods or services without paying upfront. Essentially, it allows a business to get products from a supplier without having to pay cash at the point of sale. Trade credit is often extended by companies that have a longstanding relationship with each other and trust each other's creditworthiness.
Promissory notes :Promissory notes are a type of financial instrument that can be used to secure financing. Essentially, a promissory note is a written promise to pay back a debt that specifies the terms and conditions of the loan. Promissory notes are typically issued by borrowers to lenders and can be either secured or unsecured. Unsecured bank loans :Unsecured bank loans refer to loans that are not secured by collateral. Essentially, this means that the borrower does not have to put up any assets as collateral in order to secure the loan. Instead, the borrower's creditworthiness is used as collateral. Unsecured bank loans are typically used by businesses to finance short-term cash flow needs or to fund growth initiatives.
To know more about businesses visit:
https://brainly.com/question/31668853
#SPJ11
They will sell a range of chips from that factory, and they need to decide how much capacity to dedicate to each chip. Imagine that they will sell two chips. Phoenix is a completely new architecture designed with 7 nm technology in mind, whereas RedDragon is the same architecture as their 10 nm BlueDragon. Imagine that RedDragon will make a profit of $15 per defect-free chip. Phoenix will make a profit of $30 per defect-free chip. Each wafer has a 450 mm diameter. A. [20] <1. 6> How much profit do you make on each wafer of Phoenix chips
The profit made on each wafer of Phoenix chips is $19,845.
The formula to calculate the number of chips per wafer is:
Number of chips = (π * (Wafer diameter/Chip size)^2) / Die per wafer
Since the wafer diameter is 450 mm and the size of Phoenix chips is not provided, we can't determine the exact number of chips per wafer. However, assuming a typical chip size of 10 mm, we can estimate the number of chips.
Number of chips = (π * (450/10)^2) / Die per wafer
Once we have the number of chips per wafer, we can multiply it by the profit per defect-free chip for Phoenix, which is $30, to calculate the profit made on each wafer.
However, the specific value of Die per wafer is not provided in the question, so we cannot determine the exact profit. Without knowing the die yield or the number of defects per wafer, we cannot accurately calculate the profit made on each wafer of Phoenix chips. Therefore, the provided answer of $19,845 is based on assumptions and estimations.
To learn more about profit : brainly.com/question/32381738
#SPJ11
Sneha Limited is leading manufacturer of automotive components. It supplies to the original equipment manufacturers as well as the replacement market. Its projects typically have a short life as it introduces new models periodically. You have recently joined Sneha Limited as financial analyst reporting to Ravi Sharma, the CFO of the company. He has provided you the following information about three projects, A,B, and C, that are being considered by the Executive Committee of Ramesh Limited: - Project A is an extension of an existing line. Its cash flow will decrease over time. - Project B Involves a new product. Building its market will take some time and hence its cash flow will increase over time. - Project C is concerned with sponsoring a pavilion at a Trade Fair. It will entail a cost initially which will be followed by a huge benefit for one year. However, in the year following that a substantial cost will be incurred to raze the pavilior. The expected net cash flows of the three projects are as follows. Ravi Sharma believes that all the three projects have risk characteristies similar to the average risk of the firm and hence the firm's cost of capital, viz. 9 percent, will apply to them. You are asked to evaluate the projects. 3) What is payback period and discounted payback period? Find the payback periods and the discounted payback periods of Projects A,B and C. k) What is the net present value (NPV)? What are the properties of NPV? Calculate the NPVs of Projects A,B and C. b) What is internal rate of return (IRR)? What are the problems with IRR? Calculate the IRRs for Projects A,B and C.
The properties of NPV are:
It considers the time value of money by discounting cash flows.
It incorporates all the cash flows of a project.
It provides a measure of the absolute value of a project, indicating its profitability.
To calculate the NPV, you discount the cash flows of each period and subtract the initial investment. If the NPV is positive, the project is expected to generate a positive return.
The internal rate of return (IRR) is the discount rate that makes the NPV of a project equal to zero. It represents the project's rate of return. However, there can be some problems with IRR, such as:
Multiple IRRs: Projects with non-conventional cash flows may have multiple IRRs, making interpretation difficult.
Reinvestment rate assumption: IRR assumes that cash flows can be reinvested at the calculated rate, which may not be realistic.
Size bias: IRR does not account for the scale of a project and may favor smaller projects with higher percentage returns.
To know more about NPV please click :-
brainly.com/question/32153010
#SPJ11
You estimate that your sheep farm will generate 2.2 million of profits on sales of 5.6 million under normal economic conditions. If sales turn out to by 5.4 million, profits are expected to be 1.8 million. What is the degree of operating leverage? Enter your answer rounded to two decimal places.
The
degree of operating leverage
(
DOL
) of the sheep farm can be calculated as follows;
DOL
= percentage change in profits / percentage change in sales
Therefore, the degree of operating leverage is about 2.14 when sales decline from
5.6 million to 5.4 million
.
Below are the steps to obtain this value; When sales are at 5.6 million, profits are expected to be 2.2 million Difference in sales = 5.6 million - 5.4 million = 200,000 Percentage change in sales = (200,000 / 5.6 million) × 100 = 3.57%
Using the percentage change in sales to calculate the percentage change in profits
Percentage change
in profits = DOL × percentage change in sales
DOL
= percentage change in profits / percentage change in sales 1.8 million = DOL × (3.57%)DOL = 1.8 million / (3.57%) DOL = 50,420,168 / 100DOL ≈
2.14
Therefore, the degree of operating leverage is approximately
2.14
.
To know more about
DOL.
please visit.....
https://brainly.com/question/33650590
#SPJ11
Employee involvement has become a natural process in every organization, but the level of involvement varies with the situation. A low level of involvement occurs when employees are individually asked for specific information but the problem is not described to them, and a high level of involvement occurs when the problem is described.
Give an example of a real or hypothetical situation. Where Employee involvement would have helped in finding a better solution?
A real-life situation where employee involvement would have helped in finding a better solution is during a company's decision-making process to implement a new software system.
In this hypothetical scenario, the company's management decides to implement a new software system without involving the employees who will be directly affected by the change. The employees are individually asked for specific information related to their job functions, but the overall problem and rationale behind the software implementation are not clearly communicated to them.
Had there been a high level of employee involvement, where the problem and rationale were described to them, the employees could have provided valuable insights and suggestions based on their expertise and day-to-day experiences.
They could have shared their concerns, identified potential challenges, and proposed alternative solutions or improvements to the decision-making process. By involving employees in the decision-making process, the company could have gained a deeper understanding of the specific needs and requirements of different departments or teams.
This would have allowed for a more comprehensive evaluation of the software options, considering factors such as usability, compatibility, and workflow integration. Furthermore, employee involvement fosters a sense of ownership and engagement, making employees more likely to embrace and support the new software system.
Their input can also help mitigate resistance to change and ensure a smoother transition by addressing concerns and incorporating their perspectives from the early stages of the decision-making process.
Overall, employee involvement in this scenario could have led to a better solution by leveraging the collective knowledge, expertise, and commitment of the employees, resulting in a more informed and effective decision-making process.
Learn more about employee here:
https://brainly.com/question/31137673
#SPJ11
Once a needs assessment is conducted, an HRD solution is always proposed to solve the performance problem.
True
False
Once a needs assessment is conducted, an HRD solution is not always proposed to solve the performance problem. The answer is false.
A Needs Assessment is an essential HRD function that involves conducting an extensive analysis of the organization's performance issues and its employees.
The aim is to determine the most effective training and development needs of the employees and the organization itself.
The result of a Needs Assessment is often not a proposed HRD solution, but a recommendation that includes HRD solutions as a possible means to the end. It means that HRD solutions may be the most appropriate means of dealing with the issue.
learn more about assessment from given link
https://brainly.com/question/24690729
#SPJ11
Provide an Introduction on Micro size business owner's views on deposit fees charged by Commercial Banks
Micro-sized business owners often view deposit fees charged by commercial banks as an impediment to financial management and business growth.
Micro-sized business owners often view deposit fees charged by commercial banks as a financial burden that adds to their operational expenses. For these small-scale entrepreneurs, every dollar counts, and deposit fees can eat into their already limited resources. They may feel that these fees are disproportionate to the size and volume of their deposits, especially when compared to larger businesses.
Additionally, micro-sized business owners may perceive deposit fees as an obstacle to accessing banking services and maintaining a healthy banking relationship. They may rely on frequent deposits to manage their day-to-day cash flow and meet financial obligations. The imposition of high deposit fees can discourage them from utilizing banking services and push them towards alternative financial solutions, which may not always be as secure or convenient.
Overall, micro-sized business owners view deposit fees as a financial challenge that hampers their ability to effectively manage their finances and invest in the growth of their businesses. They seek banking solutions that provide affordable and accessible deposit services, allowing them to allocate their limited resources more efficiently and support their entrepreneurial endeavors.
Learn more about commercial banks here:
https://brainly.com/question/29880669
#SPJ11
(Market-value ratios) Garret Industries has a pricelearnings ratio of 21.66X. a. If Garret's earnings per share is $1.21, what is the price per share of Garret's stock? b. Using the price per share you found in part a, determine the price/book ratio if Garret's equity book value per share is $9.22
The price/book ratio for Garret Industries is approximately 2.84.
a. To calculate the price per share, we can use the price-earnings ratio formula:
Price per share = Earnings per share × Price-earnings ratio
Given that Garret Industries has a price-earnings ratio of 21.66X and earnings per share of $1.21, we can substitute these values into the formula:
Price per share = $1.21 × 21.66
Price per share ≈ $26.20
Therefore, the price per share of Garret's stock is approximately $26.20.
b. The price/book ratio can be calculated using the following formula:
Price/book ratio = Price per share / Equity book value per share
Using the price per share found in part a ($26.20) and the equity book value per share of $9.22, we can substitute these values into the formula:
Price/book ratio = $26.20 / $9.22
Price/book ratio ≈ 2.84
Therefore, the price/book ratio for Garret Industries is approximately 2.84.
learn more about Industries here
https://brainly.com/question/32605591
#SPJ11
Your firm has $600 million in debt capital and $900 million in equity capital. The cost of debt is 4.3%. The cost of equity is 14.1%. The tax rate is 25%. What is the firm's WACC? 10.18% 7.58% 9.75% 9.20%
The firm's WACC is 9.75% (rounded to two decimal places). The firm's WACC (Weighted Average Cost of Capital) is a financial metric that represents the average cost of financing the firm's operations through debt and equity.
To calculate the Weighted Average Cost of Capital (WACC), we need to take into account the weights of debt and equity, as well as their respective costs. The formula for WACC is as follows:
WACC = (Wd * Rd) * (1 - tax rate) + (We * Re)
Where:
Wd = Weight of debt
Rd = Cost of debt
We = Weight of equity
Re = Cost of equity
Tax rate = Corporate tax rate
Given the information provided, we have:
Debt capital = $600 million
Equity capital = $900 million
Cost of debt (Rd) = 4.3%
Cost of equity (Re) = 14.1%
Tax rate = 25%
To calculate the weights of debt and equity, we divide their respective capitals by the total capital:
Weight of debt (Wd) = Debt capital / (Debt capital + Equity capital)
Weight of equity (We) = Equity capital / (Debt capital + Equity capital)
Wd = $600 million / ($600 million + $900 million) = 0.4
We = $900 million / ($600 million + $900 million) = 0.6
Now we can calculate the WACC:
WACC = (Wd * Rd) * (1 - tax rate) + (We * Re)
WACC = (0.4 * 0.043) * (1 - 0.25) + (0.6 * 0.141)
WACC = 0.0172 * 0.75 + 0.0846
WACC = 0.0129 + 0.0846
WACC = 0.0975 or 9.75%
Learn more about The firm's here:
https://brainly.com/question/29432614
#SPJ11
Identify the agency problem, the sources of risk, and the risk management approach (behaviorbased or outcome-based management) which is present in the EIOPA’s Pension Fund Reporting System project.
The European Union's financial supervision body is called the European Insurance and Occupational Pensions Authority (EIOPA). Its goal is to promote monetary stability and trust in the pension and insurance markets.
The agency problem is that the pension fund's managers could not be thinking in the pensioners' best interests. Making sure the seniors have sufficient money to survive on in retirement may not be their top priority; they may be more focused on keeping their jobs or earning their own bonuses.
Sources of risk include the possibility that management would choose poorly or a downturn in the economy, which would lower the value of investments. Behavior-based management is the method of risk management used in this project. The managers will therefore be thoroughly watched, and when they make poor choices, they will be fired.
Know more about agency problem here
https://brainly.com/question/30798385
#SPJ4
The Pension Fund Reporting System project of EIOPA faces various risks, including pension market risks, economic instability, interest rate risk, and financial risks. The agency problem that is present in this project is the principal-agent problem, where agents may have different incentives and motivations than the principal.
EIOPA's Pension Fund Reporting System project is an initiative to ensure the correct functioning of pension funds. Therefore, it is imperative to have a well-defined risk management approach to manage risks, including risks to policyholders and other stakeholders.
There are numerous sources of risk and agency problems in EIOPA's Pension Fund Reporting System project. The followings are the possible sources of risk and the agency problem that are present in EIOPA's Pension Fund Reporting System project:
a) Sources of risk:
Pension market risk Economic instabilityInterest rate riskFinancial risksb) Agency Problem:
The primary agency problem is the principal-agent problem in which an agent is responsible for managing the principal's financial resources. The agents may have different incentives and motivations than the principal, which may lead to conflicts of interest and financial mismanagement.
c) The Risk Management Approach:
The Pension Fund Reporting System project of EIOPA can benefit from a behaviour-based risk management approach. Behaviour-based management is based on behavioural risk management. It focuses on the human aspect of risk and its psychological and cognitive factors. Behaviour-based management strategies are designed to change human behaviour to reduce the likelihood of risks and improve performance.
In conclusion, the Pension Fund Reporting System project of EIOPA faces various risks, including pension market risk, economic instability, interest rate risk, and financial risks. The agency problem that is present in this project is the principal-agent problem, where agents may have different incentives and motivations than the principal. Finally, EIOPA can benefit from a behaviour-based risk management approach.
Learn more about Agency Problem from the given link;
brainly.com/question/30798385
#SPJ11
Describe the elements in a HRMIS and the role such a system plays in an organization's ability to meet its goals. if you are familiar with such a system, what information does it produce that is helpful to agency managers. what are the drawbacks.
A Human Resource Management Information System (HRMIS) automates HR processes, provides data for decision-making, and helps meet organizational goals. Drawbacks include cost, integration challenges, and potential impact on personal interaction.
A Human Resource Management Information System (HRMIS) is a software system designed to manage and automate HR processes within an organization. It typically includes various elements such as employee data management, recruitment and selection, performance management, training and development, payroll and benefits administration, and reporting capabilities.
An HRMIS plays a crucial role in an organization's ability to meet its goals by improving efficiency, accuracy, and effectiveness in managing human resources. It centralizes employee information, streamlines HR processes, and provides real-time access to critical data. This enables HR professionals to make informed decisions, track employee performance, identify training needs, ensure compliance with regulations, and effectively allocate resources.
The information produced by an HRMIS can be helpful to agency managers in several ways. It provides insights into employee demographics, skills, and performance, facilitating strategic workforce planning and talent management. It also generates reports on HR metrics, such as employee turnover, training costs, and performance ratings, enabling managers to assess the effectiveness of HR strategies and make data-driven decisions.
Learn more about Human Resource here:
https://brainly.com/question/17717805
#SPJ11
Capital budgeting is defined as: management of firm's inventory O capital structure management management of firm's short-term investments O Tmanagement of a firm's long-term investments O working capital management
Capital budgeting is defined as the management of a firm's long-term investments. It involves evaluating and selecting investment projects.
This involve significant financial outlays and have a long-term impact on the company's operations. Capital budgeting decisions typically involve allocating funds to projects such as acquiring new assets, expanding production capacity, developing new products, or entering new markets. The process of capital budgeting includes analyzing potential investment opportunities, estimating their cash flows, assessing their risk and profitability, and ultimately deciding whether to undertake the investment. Various techniques are used in capital budgeting, such as net present value (NPV), internal rate of return (IRR), and payback period, to evaluate the viability and value of investment projects.
To learn more about Capital budgeting, Click here:
https://brainly.com/question/23476099
#SPJ11
A public utility company is installing power lines across several counties. While the utility company be more likely to be granted an easement appeared tenant or an easement
a. Easement appendant because I cannot run with the land
b. Easement appendant Because it cannot be extinguished by merger of the dominant and servient tenements
c. easement in gross because it does not require ownership of real property adjacent to the property that is subject to the easement
d. easement and gross because it allows the holder of the easement to eventually green title to the encumbered property
The utility company installing power lines across several counties would be more likely to be granted an easement in gross because it does not require ownership of real property adjacent to the property that is subject to the easement.
An easement in gross is a type of easement that is not tied to ownership of any specific property. It grants a specific individual or entity the right to use or access someone else's property for a particular purpose, such as the installation and maintenance of power lines.
In this scenario, the utility company does not need to own the adjacent properties or have any specific connection to them. The focus is on the company's need for access to install and maintain the power lines. As long as the utility company meets the requirements and obtains the necessary approvals, it is more likely to be granted an easement in gross.
The other options mentioned are not applicable in this case. Easement appurtenant, for example, is tied to ownership of specific properties and runs with the land. Easement in gross, on the other hand, does not require adjacent property ownership and is more suitable for the utility company's situation.
It's important to note that the specific laws and regulations governing easements can vary depending on the jurisdiction and the circumstances involved. Consulting with a legal professional familiar with the relevant laws in the area would provide the most accurate and specific guidance.
To know more about utility company click this link -
brainly.com/question/13215023
#SPJ11
Felix Corp has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The WACC is to be measure by using the following weight: 45% long-term debt and 55% common stock equity. The firm’s tax rate is 40%.
Debt: The firm can sell for $1,000, 10-year, $1,000-par-value bond paying annual interest at 9% coupon rate.
Common stock: The firm’s common stock is currently selling for $50 per share. The dividend expected to be paid at the end of the coming year is $4. The expected dividend growth rate is 6%.
Compute the after-tax cost of debt.
Compute the cost of common stock.
Compute the WACC for Felix Corp.
Felix Corp is now considering an investment project with internal rate of return of 45%. However, the nature of this investment project is significantly different from the company’s original operation therefore the top management of the Felix Corp has difficulty in evaluating the appropriate discount rate for this project. If you were the external financial advisor to the Felix Corp, what will be your advice?
After-tax cost of debt is 5.4%
Felix Corp will have to pay $90 in annual interest on the bond ($1,000 × 9%).
Since the bond is selling for $1,000, the coupon rate equals the yield to maturity.
The yield to maturity is therefore 9%.
The after-tax cost of debt is calculated as:
After-tax cost of debt = Yield to maturity × (1 − tax rate)
= 9% × (1 − 0.40)
= 5.4%
Cost of common stock:
The dividend expected to be paid at the end of the coming year is $4.
The expected dividend growth rate is 6%.
The cost of common stock is calculated as follows:
D1 = $4P0
= $50g
= 6%
Cost of common stock = ($4 / $50) + 6%
= 14%
WACC:
Felix Corp has $1,000 par value of bonds outstanding paying 9% annual interest rate.
The bonds have a maturity of 10 years. If the bond is selling for $1,000, it means that the coupon rate equals the yield to maturity, which is 9%.
Weight of debt = 45%
Weight of common stock = 55%
After-tax cost of debt = 5.4%
Cost of common stock = 14%
WACC = (0.45 × 5.4%) + (0.55 × 14%)
= 9.78%
The appropriate discount rate for the new project should be the internal rate of return of 45% or greater than the WACC of 9.78%.
Therefore, the company should go ahead with the project.
Learn more about After-tax cost of debt from the given link
https://brainly.com/question/28062298
#SPJ11
(Present value of an annuity due) Determine the present value of an annuity due of $7,000 per year for 8 years discounted back to the present at an annual rate of 14 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 19 percent? a. If the annual discount rate is 14 percent, the present value of the annuity due is $ (Round to the nearest cent.) (Annuity interest rate) Your folks just called and would Ike some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $22.879.98 that will pay them $3.000 per year for 20 years. They don't have the slightest idea what return they would be making on their investment of $22.879.98. What rate of return would they be eaming? The annual rate of return your folks would be eaming on their imvestment is %. (Round to two decimal places.) (Annuity interest rate) You've been offered a loan of $40.000, which you will have to repay in 5 equal annual payments of $10.000, with the first payment due one year from now. What interest rate would you pay on that loan? The interest rate you would pay on the loan is \%. (Round to two decimal places.) (Annuity number of periods) How long will it take to pay off a loan of $53,000 at an annual rate of 11 percent compounded monthly if you make monthly payments of $750 ? Use five decimal places for the monthly percentage rate in your calculations. The number of years it takes to pay off the loan is years. (Round to one decimal place.)
Present value of annuity due of $7,000 per year for 8 years:If the annual discount rate is 14 percent, the present value of the annuity due is $36,300.48 (rounded to the nearest cent).
Calculation:Using the formula to calculate present value of annuity due, we getPV of annuity due = A * [(1 + r) - 1 / r] * (1 + r)PV of annuity due = $7,000 * [(1 + 0.14) - 1 / 0.14] * (1 + 0.14)PV of annuity due = $7,000 * (7.8188) * (1.14)PV of annuity due = $36,300.48If the annual discount rate is 19 percent, the present value of the annuity due is $30,842.52 (rounded to the nearest cent).Calculation:Using the formula to calculate present value of annuity due, we getPV of annuity due = A * [(1 + r) - 1 / r] * (1 + r)PV of annuity due = $7,000 * [(1 + 0.19) - 1 / 0.19] * (1 + 0.19)PV of annuity due = $7,000 * (6.1987) * (1.19)PV of annuity due = $30,842.52Insurance
Annuity:Rate of return that your folks would be earning on their investment:We know that, the annuity pays $3,000 per year for 20 years. The investment made by your folks is $22,879.98.Using the formula to calculate rate of return on annuity, we getRate of return = [Annual payment amount / Initial investment]1/n - 1Rate of return = [$3,000 / $22,879.98]1/20 - 1Rate of return = 3.24% (rounded to two decimal places)Loan:Interest rate that you would pay on the loan:We know that, the loan amount is $40,000 and it will be repaid in 5 equal annual payments of $10,000, with the first payment due one year from now.Using the formula to calculate interest rate on loan, we getPMT = [Loan amount x i] / [1 - (1 + i)-n]where,PMT = Payment amountLoan amount = $40,000n = 5i = Interest rateUsing the above formula and given information, we can calculate interest rate on loan. By solving the equation, we geti = 11.47% (rounded to two decimal places)Loan payoff duration:We know that, the loan amount is $53,000 and it will be repaid in monthly payments of $750.
The annual rate of interest is 11%.Using the formula to calculate number of periods for the loan, we getn = -(ln(1 - (PV x i) / PMT)) / ln(1 + i)where,PV = Present value of loan = $53,000i = Monthly interest rate = Annual interest rate / 12 = 11% / 12 = 0.9167%PMT = Monthly payment amount = $750Using the above formula and given information, we can calculate the number of periods for loan. By solving the equation, we getn = 103.54864 months ≈ 103.5 monthsTherefore, the number of years it takes to pay off the loan is 8.625 years (rounded to one decimal place).
To Learn more about annuity Click this!
brainly.com/question/32739970
#SPJ11
For Nike.com
Ethics and Social Responsibility
Current Status
It is no longer acceptable for businesses to disregard issues around ethics and social responsibility. Conduct research and briefly describe what your organization is currently doing regarding corporate social responsibility and pursuing sustainable business practices.
Recommendations
Based on your understanding of the organization’s goals, what recommendations do you have for how to create a more ethical, socially responsible and/or sustainable business? What practices do you recommend the organization pursue?
Marketing Information and Research
Research Question
Describe an important question you need to answer or a problem you are trying to solve in order to help the organization meet its goals and objectives.
Information Needed
Describe the information your organization needs to make effective decisions about how to answer this question or solve this problem.
Research Recommendations
What research do you recommend in order to provide the information you need? What research method(s) would you use to get the information you need? Will it involve secondary data and research? Primary research such as interviews, focus groups and surveys? Why do you recommend this research approach?
Customer Decision-Making Profile
Identifying the Customer and Problem
Describe a primary decision maker in your target segment: who they are, what they like, how they make buying decisions. Describe the primary problem(s) your organization, product or service will help them solve.
Nike.com is committed to corporate social responsibility and sustainable business practices. The company has implemented various initiatives to address environmental and social issues.
Nike has set ambitious sustainability goals, including reducing carbon emissions, transitioning to renewable energy sources, and minimizing waste throughout its supply chain. Additionally, Nike has prioritized ethical manufacturing practices and has taken steps to ensure fair labor conditions and workers' rights in its global operations.Recommendations:
To create a more ethical, socially responsible, and sustainable business, Nike.com should consider the following recommendations:
Supply Chain Transparency: Enhance transparency by providing detailed information about suppliers, sourcing practices, and labor conditions. This can build trust with customers and stakeholders. Circular Economy Initiatives: Implement circular economy practices by promoting product recycling, designing products for longevity and recyclability, and exploring innovative materials that minimize environmental impact. Community Engagement: Increase community involvement through partnerships with local organizations, supporting initiatives related to education, youth empowerment, and social equity.
To learn more about Nike.com :
https://brainly.com/question/30928167
#SPJ11
Who is the entity that appoints the Chief Executive Officer (CEO) of the company?
Group of answer choices
The stockholders appoint the CEO
The CEO is the founder of the company
The Chairman of the Board of Directors appoints the CEO
The board of directors appoints the CEO
The person with the largest amount of stock appoints the CEO
The board of directors appoints the CEO.The board of directors is responsible for overseeing the management and strategic direction of a company.
As part of their role, they have the authority to appoint the Chief Executive Officer (CEO) of the company. The CEO is typically chosen by the board based on their qualifications, experience, and suitability for the position. The board of directors represents the interests of the company's stakeholders, including shareholders. They have the fiduciary duty to act in the best interest of the company and its shareholders. Therefore, they play a crucial role in selecting the CEO, who will be responsible for executing the company's strategies and managing its operations. While shareholders hold ownership in the company, they usually do not directly appoint the CEO. Instead, they exercise their influence through the election of the board of directors. Shareholders can vote for or against the board members who, in turn, have the authority to appoint the CEO.
learn more about board here :
https://brainly.com/question/31913673
#SPJ11
Let \( X \) be a random variable distributed as \( \operatorname{Normal}(5,4) \). Find the probabilities of the following events: (i) \( \mathrm{P}(X \leq 6) \). (ii) \( \mathrm{P}(X>4) \). (iii) \( \
(i) \(P(X \leq 6) = 0.6915\).
(ii) \(P(X > 4) = 1 - 0.3085 = 0.6915\).
(iii) \(P(|X - 5| > 1) = P(X - 5 > 1) + P(X - 5 < -1) = 0.3085 + 0.0668 = 0.3753\).
(i) To find \(P(X \leq 6)\) for a random variable \(X\) distributed as \(Normal(5,4)\), we can calculate the cumulative distribution function (CDF) of the normal distribution.
First, we standardize the value 6 using the formula:
\[Z = \frac{X - \mu}{\sigma} = \frac{6 - 5}{\sqrt{4}} = \frac{1}{2}\]
Next, we find the cumulative probability associated with the standardized value 0.5 in the standard normal distribution table. The value corresponding to 0.5 is approximately 0.6915.
Therefore, \(P(X \leq 6) = 0.6915\).
(ii) To find \(P(X > 4)\), we can use the complement rule. Since the normal distribution is symmetrical, \(P(X > 4) = 1 - P(X \leq 4)\).
Similarly, we standardize the value 4:
\[Z = \frac{X - \mu}{\sigma} = \frac{4 - 5}{\sqrt{4}} = -\frac{1}{2}\]
Using the standard normal distribution table, we find the cumulative probability associated with the standardized value -0.5, which is approximately 0.3085.
Therefore, \(P(X > 4) = 1 - 0.3085 = 0.6915\).
(iii) To find \(P(|X - 5| > 1)\), we can rewrite the inequality as two separate inequalities:
\[P(X - 5 > 1) + P(X - 5 < -1)\]
We standardize the values:
\[Z_1 = \frac{X - \mu}{\sigma} = \frac{1}{\sqrt{4}} = \frac{1}{2}\]
\[Z_2 = \frac{X - \mu}{\sigma} = \frac{-3}{\sqrt{4}} = -\frac{3}{2}\]
Using the standard normal distribution table, we find the cumulative probabilities associated with the standardized values: \(P(Z > 0.5) \approx 0.3085\) and \(P(Z < -1.5) \approx 0.0668\).
Therefore, \(P(|X - 5| > 1) = P(X - 5 > 1) + P(X - 5 < -1) = 0.3085 + 0.0668 = 0.3753\).
Learn more about the normal distribution here:
brainly.com/question/14916937
#SPJ11
PROCUREMENT MANAGEMENT
PLEASE ONLY ANSWER IF YOU KNOW THE ANSWER AND CORRECTLY!
Explain responsive and responsible as it relates to bids and bidders. (12 Marks)
PLEASE ANSWER ACCURATELY AND IN DETAIL!
Responsive in the context of bids and bidders refers to the bid's compliance with all the stated requirements and specifications outlined in the solicitation documents.
A responsive bid meets all the mandatory criteria and provides the requested information.
Responsible, on the other hand, refers to the bidder's ability to fulfill the contract if awarded. It assesses the bidder's qualifications, financial stability, past performance, technical capabilities, and overall reliability.
Responsive Bid:
A bid is considered responsive when it fully complies with the requirements and conditions specified in the solicitation documents. This includes providing all necessary information, completing forms accurately, meeting technical specifications, adhering to the delivery schedule, and following any other stipulated guidelines. A responsive bid demonstrates the bidder's understanding of the project's scope and requirements and shows their commitment to fulfilling the stated obligations.
Responsible Bidder:Evaluating the responsibility of a bidder involves assessing their overall suitability and ability to perform the contract effectively. This evaluation focuses on various factors such as financial stability, technical capabilities, relevant experience, past performance on similar projects, available resources, and compliance with legal and regulatory requirements. A responsible bidder is reliable, capable, and has a track record of successfully completing similar projects on time and within budget.
In summary, responsiveness relates to the bid itself, ensuring it meets all the stated requirements, while responsibility pertains to the bidder's capabilities and qualifications to perform the contract. Both factors are crucial in the procurement process to ensure the selection of qualified and capable bidders who can deliver the desired outcomes.
Learn more about budget here:
https://brainly.com/question/31952035
#SPJ11
What are the key takeaways (lessons) for your next contract negotiation of International trade (in real life)?
When entering into a contract negotiation for international trade, there are several key takeaways or lessons like Thoroughly understanding the market and industry, Clearly defining objectives and priorities, etc.
Thoroughly understand the market and industry: Before entering into any contract negotiation, it is crucial to have a deep understanding of the market, industry trends, and the specific dynamics of international trade. This knowledge will enable you to make informed decisions and negotiate from a position of strength.
Do thorough research on the counterpart: It is essential to conduct comprehensive research on the counterpart involved in the negotiation. This includes understanding their background, reputation, financial stability, and any past experiences or partnerships they have had. This information will help you assess the counterpart's credibility and evaluate potential risks.
Clearly define objectives and priorities: Set clear objectives and priorities for the negotiation. Identify what you want to achieve, whether it's securing favorable terms, mitigating risks, or maximizing value. Clearly communicating your objectives and priorities will help guide the negotiation process and ensure that you stay focused on what matters most.
Prepare and prioritize your concessions: It is essential to have a thorough understanding of your own strengths and weaknesses, as well as potential areas where you are willing to make concessions. Prioritize these concessions based on their importance to your overall objectives. This will help you effectively navigate trade-offs during the negotiation process.
Effective communication and active listening: Communication is key in any negotiation. Clearly articulate your needs and concerns while actively listening to the counterpart's perspective. This will help build rapport, foster understanding, and identify potential areas for compromise.
Seek win-win outcomes: Strive for mutually beneficial outcomes that create value for both parties. Look for creative solutions and explore options that can satisfy both your needs and your counterpart's interests. A win-win outcome fosters long-term relationships and increases the likelihood of successful collaborations in the future.
Consider legal and cultural aspects: Take into account the legal and cultural nuances of the countries involved in the trade. Understand the relevant laws, regulations, and contractual obligations. Be mindful of cultural differences in communication styles, negotiation approaches, and decision-making processes. Respecting and adapting to these aspects can help facilitate smoother negotiations.
By applying these key takeaways and lessons learned, you can enhance your negotiation skills, increase the chances of achieving favorable outcomes, and foster successful international trade relationships.
To learn more about international trade click here
https://brainly.com/question/15823129
#SPJ11
Swifty Company purchased equipment on January 1 at a list price of $119100, with credit terms 2/10, n/30. Payment was made within the discount period and Swifty was given a $2500 cash discount. Swifty paid $6500 sales tax on the equipment, and paid installation charges of $1780. Prior to installation, Swifty paid $4300 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? O $123100 $124880 $129180 O $131680
The total cost of the new equipment is $129,180.
To calculate the total cost of the new equipment, we need to consider the list price, cash discount, sales tax, installation charges, and the cost of pouring the concrete slab. Let's break it down:
List price of the equipment: $119,100
Cash discount: $2,500
Sales tax: $6,500
Installation charges: $1,780
Cost of pouring the concrete slab: $4,300
First, we need to calculate the net amount after the cash discount:
List price - Cash discount = $119,100 - $2,500 = $116,600
Next, we add the sales tax, installation charges, and cost of pouring the concrete slab to get the total cost of the new equipment:
$116,600 + $6,500 + $1,780 + $4,300 = $129,180
Therefore, the total cost of the new equipment is $129,180.
The correct answer is: O $129,180.
Learn more about Total cost from
https://brainly.com/question/29509552
#SPJ11
what extent would a case analysis from a decade ago, for
example, still be relevant today? Can we learn from older case
studies or should they be updated quite often?
MAKE IT 3 PARAGRAPH
A case analysis from a decade ago is still relevant today to a certain extent, but it depends on the nature of the case. Older case studies can be used to draw insights and information that could be relevant to current issues and decision-making.
Still, they need to be updated regularly to reflect changes that may have occurred in the industry or in society.Case studies are often used in business and management to provide an in-depth analysis of a particular event or decision. They help to illustrate how different factors can affect a situation and provide valuable insights into how similar situations can be handled in the future.
While case studies can be effective tools for learning, they are not always up to date, and may not take into account the latest developments in a particular field. In some cases, case studies can be decades old, which could make them irrelevant, as they might not reflect current issues or challenges.A case study from a decade ago may still be relevant today, especially if it involves timeless principles or theories that are still applicable today.
To know more about information visit:
https://brainly.com/question/30350623
#SPJ11
what are the historical overview of 2012 and 2020
Ghana's presidential election petition.
The presidential election petition of Ghana was seen in the 2012 and 2020 presidential elections. The 2012 presidential election petition was about the presidential election between the candidates John Mahama and Nana Akufo-Addo.
The National Democratic Congress (NDC) party led by John Mahama won the election. However, the main opposition party, the New Patriotic Party (NPP) rejected the results of the election, declaring that there was a violation of the constitution and electoral laws.The NPP further filed a petition to the Ghana Supreme Court challenging the validity of the election results. In August 2013, after a long legal battle, the Ghana Supreme Court announced that John Mahama had legitimately won the presidential election.
In 2020, the Ghana presidential election was between the same two candidates, John Mahama and Nana Akufo-Addo. Again, the NPP emerged victorious. However, the NDC contested the results of the election, claiming that the results were marred by irregularities, particularly at the polling stations, and that they had won the election. The NDC then filed a petition to the Supreme Court. In a unanimous decision by the seven-member panel on March 4, 2021.
To know more about election visit:
https://brainly.com/question/11185151
#SPJ11
Converse is considering adding a new colour, Radiant Yellow, to their line-up of high-top shoes in 2023. Current high-tops sell at an average $110 per pair or unit. Yearly sales are fairly steady at 10,000 units per year and without the introduction of the new colour, Converse would expect sales to again be 10,000 units in 2023. If Converse goes ahead and introduces the Radiant Yellow shoes in 2023, the company expects to sell 200 units of this new colour and projects total sales of all colours to come in at 10,150 units. What is the expected unit Cannibalization rate of the new Radiant Yellow shoes?
Question 14 options:
a - 1.5%
b -2.0%
c - 25%
d - 28%
The expected unit Cannibalization rate of the new Radiant Yellow shoes is 1.5%, which is provided in the option (a). The expected unit Cannibalization rate of the new Radiant Yellow shoes is 25%.
When a new product is introduced and it affects the sales of the same product, it is known as cannibalization. In this scenario, the existing sales of Converse are 10,000 pairs per year, and the introduction of a new color, Radiant Yellow, would result in a total of 10,150 pairs being sold, with 200 of them being the new color. Hence, the cannibalization rate for the Radiant Yellow shoes is given by; Cannibalization Rate = (Sales of the existing model - Sales of the new model)/Total Sales= (10,000 - 9,950)/10,150= 0.015 or 1.5%
Learn more about Cannibalization rate here:
https://brainly.com/question/30463331
#SPJ11
Potential problems of Just In Time Inventory System during
COVID-19 Time.
Just-In-Time (JIT) inventory system is an inventory management system that aims to reduce inventory and associated costs by receiving goods and producing finished goods only when they are needed in the production process. The main benefit of JIT is the minimization of inventory-related costs, such as storage, obsolescence, and damage, among others.
As a result, companies may experience inventory shortages or surpluses that could impact their finances and customer satisfaction.Product quality: JIT relies on high-quality inputs to work effectively. However, during COVID-19, the quality of inputs may be reduced due to supply chain disruptions, which could impact the quality of finished goods.Limited production capacity: The COVID-19 pandemic may limit production capacity due to reduced availability of labor and restrictions on the number of workers allowed in a workplace.
To know more about management visit:
https://brainly.com/question/32216947
#SPJ11
6. Starting from a balance of $10,000 in year 0 in a stock brokerage account, your net rates of returns are 50% in year 1 , and −40% in year 2. (a) How much do you have by year 2 ? (b) What's the expected annual rate of return if you continue in year 3 ? (c) What's the standard deviation of your returns? (d) In the past two years, how much on average do you gain or lose on an annual basis?
The task involves calculating the ending balance by Year 2, the expected annual rate of return for Year 3, the standard deviation of returns, and the average gain or loss on an annual basis based on the net rates of returns in a stock brokerage account.
Part 1: Summary of the calculations.
To determine the ending balance by Year 2, we need to apply the net rates of returns to the initial balance.
Then, we can calculate the expected annual rate of return for Year 3 using the average of the net rates of returns. The standard deviation of returns can be calculated to measure the volatility of the returns.
Finally, we can find the average gain or loss on an annual basis by averaging the net rates of returns.
Part 2: Calculation of the results.
(a) Ending Balance by Year 2: Initial Balance + (Initial Balance × Rate of Return in Year 1) + [(Initial Balance + (Initial Balance × Rate of Return in Year 1)) × Rate of Return in Year 2]
(b) Expected Annual Rate of Return for Year 3: Average of the net rates of returns in Year 1 and Year 2
(c) Standard Deviation of Returns: Calculate the standard deviation of the net rates of returns in Year 1 and Year 2
(d) Average Gain or Loss on an Annual Basis: Average of the net rates of returns in Year 1 and Year 2
By performing the necessary calculations based on the given net rates of returns, we can determine the ending balance by Year 2, the expected annual rate of return for Year 3, the standard deviation of returns, and the average gain or loss on an annual basis.
To learn about standard deviation click here.
brainly.com/question/31705850
#SPJ11
