In Salesforce, the "Setup Audit Trail" feature is used to track changes to settings and configurations.
The Setup Audit Trail feature in Salesforce allows administrators to track changes made to settings and configurations within the organization. It maintains a log of user-initiated changes, including modifications to objects, fields, profiles, permissions, workflows, and more.
The Setup Audit Trail provides information such as the date and time of the change, the user who made the change, the component that was modified, and the old and new values. This feature helps administrators monitor and review changes, troubleshoot issues, and maintain an audit trail of configuration modifications in Salesforce.
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Five years ago, Grey Ltd issued $1,000 denominations with an original maturity of 20 years and a coupon rate of 10% Determine the value today of one of these bonds to an investor who requires a 12% rate of return on these securities. $863.78 $1,142.07 $900.65 $871.53 $1,106,70
The value of the bond today is approximately $871.53.
To determine the value of the bond today, we can use the present value formula. The present value of a bond is the discounted value of its future cash flows.
In this case, the bond has a 20-year maturity and a coupon rate of 10%. The investor requires a 12% rate of return.
The future cash flows of the bond consist of the annual coupon payments of $100 (10% of $1,000) for 20 years and the face value of $1,000 at maturity.
Using the present value formula, we can calculate the value of the bond:
PV = C * [1 - (1 + r)⁻ⁿ] / r + F / (1 + r)ⁿ
Where: PV = Present value of the bond
C = Coupon payment
r = Required rate of return
n = Number of periods
F = Face value
Substituting the given values:
C = $100
r = 12% = 0.12
n = 20
F = $1,000
PV = $100 * [1 - (1 + 0.12)⁻²⁰] / 0.12 + $1,000 / (1 + 0.12)²⁰
Calculating this expression, we find that the value of the bond today is approximately $871.53.
Therefore, the correct answer is $871.53.
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QUESTION: GIVE 5/FIVE, REAL-LIFE AND VERIFIABLE, EXAMPLES OF THE TIME VALUE OF MONEY PRINCIPLE BASED ON THE CANADIAN PERSPECTIVE.
Investing or saving money can help keep pace with inflation and maintain purchasing power.
The time value of money principle is an important financial concept that relates to the fact that a dollar received today is worth more than a dollar received in the future. It is important to understand this concept as it helps in making informed financial decisions.Here are 5 real-life and verifiable examples of the time value of money principle based on the Canadian perspective:
Retirement Savings: The time value of money is evident when it comes to retirement savings. The earlier you start saving for retirement, the more time your money has to grow due to compound interest. Therefore, the earlier you save, the more your money will be worth when you retire.
Mortgage Loans: Mortgage loans are another example of the time value of money. Borrowers pay a certain amount of interest over the life of the loan, which is the lender's compensation for lending the money. The longer the loan term, the more interest you will pay and the higher the cost of borrowing.
Student Loans: Student loans are another example of the time value of money. Interest starts accruing on student loans as soon as they are disbursed. Therefore, the longer it takes to pay off the loan, the more interest will accrue and the higher the total cost of the loan.
Business Investment: Business investment is another example of the time value of money. A business that invests in equipment, research, or development may experience a return on its investment in the future. The time value of money dictates that the sooner a business makes its investment, the sooner it will reap the benefits.
Inflation: Inflation is another example of the time value of money. Inflation is the rate at which the general price level of goods and services in an economy is increasing. The time value of money dictates that money today is worth more than the same amount of money in the future because of inflation.
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Quantitative analysis formulas and definitions, define the following: a. (AV) Asset Value: b. (EF) Exposure Factor: c. (SLE) Single Loss Expectancy: d. (ARO) Annual Rate of Occurrence: e. (ALE) Annual Loss Expectancy: f. (TCO) Total Cost of Ownership: g. (ROI) Return on investment: h. Total Risk: i. Residual Risk: j. Secondary Risk:
Quantitative analysis formulas and definitions are provided to moulid bossiness plan
a. (AV) Asset Value: Asset Value refers to the estimated monetary worth of an asset within an organization. It represents the financial value assigned to a specific asset, such as equipment, infrastructure, intellectual property, or data. Determining the Asset Value helps organizations assess the potential impact of risks and allocate resources effectively for risk management and mitigation.
b. (EF) Exposure Factor: Exposure Factor is a measure that quantifies the percentage of loss an asset may experience if a specific risk event occurs. It represents the degree to which an asset is vulnerable to potential threats or risks. The Exposure Factor helps in calculating the potential impact of an adverse event on the Asset Value and determining the appropriate risk management strategies.
c. SLE) Single Loss Expectancy: Single Loss Expectancy refers to the estimated monetary loss that may result from a single occurrence of a specific risk event. It is calculated by multiplying the Asset Value (AV) by the Exposure Factor (EF). The SLE provides an estimate of the potential financial impact of a single incident or loss event on an organization's assets.
d. (ARO) Annual Rate of Occurrence: Annual Rate of Occurrence represents the estimated frequency or likelihood of a specific risk event occurring within a given year. It is expressed as a number or probability, indicating how often the risk event is expected to happen annually. The ARO is a crucial factor in calculating the Annual Loss Expectancy (ALE) and helps organizations prioritize and allocate resources for risk mitigation.
e. **(ALE) Annual Loss Expectancy**: Annual Loss Expectancy is the expected financial loss that an organization may incur due to a specific risk event within a year. It is calculated by multiplying the Single Loss Expectancy (SLE) by the Annual Rate of Occurrence (ARO). The ALE provides organizations with a quantitative estimate of the potential financial impact of a specific risk and aids in decision-making related to risk management strategies and investments.
f. **(TCO) Total Cost of Ownership**: Total Cost of Ownership refers to the comprehensive cost associated with owning, operating, and maintaining an asset or system over its entire lifecycle. It includes direct costs (such as acquisition and maintenance costs) as well as indirect costs (such as operational downtime, training, and support). The TCO analysis helps organizations assess the long-term financial implications of owning and managing assets or systems.
g. **(ROI) Return on Investment**: Return on Investment is a financial metric that evaluates the profitability and efficiency of an investment. It measures the return or gain generated from an investment relative to its cost. The ROI calculation helps organizations assess the effectiveness of their investments and make informed decisions regarding resource allocation and investment priorities.
h. **Total Risk**: Total Risk represents the overall level of risk faced by an organization, taking into account all potential risks and their respective likelihoods and impacts. It encompasses a comprehensive view of both financial and non-financial risks that could affect an organization's objectives, operations, and reputation.
i. Residual Risk: Residual Risk refers to the level of risk that remains after risk management and mitigation measures have been implemented. It represents the risk that still exists even though controls and strategies have been put in place to reduce the likelihood or impact of an adverse event. Organizations aim to minimize residual risk to an acceptable level through risk mitigation efforts.
j. Secondary Risk**: Secondary Risk refers to new or additional risks that arise as a result of implementing risk mitigation measures. While addressing one risk, organizations may inadvertently introduce new risks or exacerbate existing ones. It is essential to identify and assess secondary risks to ensure comprehensive risk management and avoid unintended consequences.
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What does the ability to receive and integrate feedback say
about you as a scholar-practitioner-leader?
The ability to receive and integrate feedback is a valuable characteristic of a scholar-practitioner-leader. It indicates Growth Mindset, Self-Reflection, Humility Openness, and Adaptability.
Being receptive to criticism shows a growth mindset, which is necessary for ongoing learning and improvement. It demonstrates your openness to different viewpoints, your willingness to question your own presumptions and your dedication to both professional and personal development.
Accepting criticism implies that you practice self-analysis and self-awareness. You understand that there is always space for development and that hearing others' opinions can give you insightful information and chances to better yourself.
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This year's revenue is $2,000,0000 and the ACP is 75 days. Next year revenue is forecast to grow by 20% and the ACP (based on a year end balance) is planned to improve to 60 days. What is the forecast for accounts receivable at the end of next year?
The forecast for accounts receivable at the end of next year is approximately $328,766.92.
To calculate the forecast for accounts receivable at the end of next year, we can use the formula:
Accounts Receivable = Average Daily Sales * Average Collection Period (ACP)
First, let's calculate the average daily sales. We can find this by dividing the annual revenue by the number of days in a year:
Average Daily Sales = Annual Revenue / 365
Average Daily Sales = $2,000,000 / 365
Average Daily Sales ≈ $5,479.45
Next, let's calculate the accounts receivable based on the current ACP:
Accounts Receivable = Average Daily Sales * ACP
Accounts Receivable = $5,479.45 * 75
Accounts Receivable ≈ $410,958.25
Now, let's calculate the accounts receivable forecast for next year using the improved ACP:
Accounts Receivable Forecast = Average Daily Sales * Planned ACP
Accounts Receivable Forecast = $5,479.45 * 60
Accounts Receivable Forecast ≈ $328,766.92
Therefore, the forecast for accounts receivable at the end of next year is approximately $328,766.92.
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You think the price of AMZN stock, which is currently $900 is likely to change significantly over the next three months, you are just not sure which direction. So you buy a long straddle position, with a call and put option, worth $24 and $24 per share, respectively, three months to expiration, and a strike price of $900.
If at expiration AMZN is trading at $917, what is your net profit on this position?
Remember that option contracts come in multiples of 100 shares.
To calculate the net profit on the long straddle position, we need to consider the cost of the options and the current stock price at expiration.
The net profit on this position is -$883.
Given:
Stock price at expiration (AMZN): $917
Call option cost: $24 per share
Put option cost: $24 per share
Since options contracts come in multiples of 100 shares, we need to calculate the total cost of the options:
Total call option cost = Call option cost per share * Number of shares
Total call option cost = $24 * 100
Total call option cost = $2,400
Total put option cost = Put option cost per share * Number of shares
Total put option cost = $24 * 100
Total put option cost = $2,400
Now, let's calculate the net profit:
Net profit = Stock price at expiration - Strike price - Total call option cost - Total put option cost
Net profit = $917 - $900 - $2,400 - $2,400
Net profit = $-883
The net profit on this position is -$883.
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A study of the consumption of beverages in Chile found that for soda "a price increase of 10% is associated with a reduction in consumption of 13.7%." Source: Carlos M. Guerrero-Lopez, Mishel Unar-Munguía, and M. Arantxa Colchero, "Price Elasticity of the Demand for Soft Drinks, Other Sugar-Sweetened Beverages and Energy Dense Food in Chile," BMC Public Health, Vol. 17, February 2017, p. 180. Given this information, the price elasticity of demand for soda in Chile is enter your response here. (Enter your response rounded to two decimal places. Use a negative sign if you are entering a negative number.)Source: Karen W. Arenson, "At Universities, Plum Post at Top Is Now Shaky," New York Times, January 9, 2007. Part 2 The price elasticity of demand for Pace University for the fall of 2006 is enter your response here. (Hint: include the negative sign and enter your response rounded to two decimal places.)
The price elasticity of demand for soda in Chile is -1.37. The price elasticity of demand for Pace University for the fall of 2006 is unknown.
Price elasticity of demand measures the responsiveness of the quantity demanded of a good to changes in its price. In this case, the study conducted in Chile found that for soda, a 10% increase in price resulted in a reduction in consumption by 13.7%. This information allows us to calculate the price elasticity of demand for soda in Chile.
The formula for price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Using the given information, we can calculate it as follows:
Price elasticity of demand = (% change in quantity demanded) / (% change in price)
Given that a price increase of 10% leads to a reduction in consumption of 13.7%, we can calculate the percentage change in quantity demanded as (-13.7%)/100% = -0.137. Similarly, the percentage change in price is 10%/100% = 0.1. Plugging these values into the formula, we get:
Price elasticity of demand = (-0.137) / (0.1) = -1.37
Therefore, the price elasticity of demand for soda in Chile is -1.37, rounded to two decimal places. This means that a 1% increase in price leads to a 1.37% decrease in the quantity demanded of soda in Chile.
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For each of the following statements, indicate the weakest form of the Efficient Market Hypothesis (EMH) that the statement violates.
a) You are investigating the historical performance of actively managed funds. When regressing the funds’ after-fee returns on the market return, you find that each fund has a statistically significant alpha coefficient different from zero.
b) There is clear evidence that stocks that delivered lower returns than the market in the past continue to do so in the future.
c) Managers make superior profits when they purchase their own company’s stock.
d) Stocks of companies with unexpectedly low earnings earn low risk-adjusted returns compared to the market for several months after the earnings announcement.
The Efficient Market Hypothesis (EMH) is a theory that suggests that financial markets reflect all information, making it impossible for investors to beat the market consistently. The following are the weakest forms of the Efficient Market Hypothesis (EMH) that the given statements violate:
a) You are investigating the historical performance of actively managed funds. When regressing the funds’ after-fee returns on the market return, you find that each fund has a statistically significant alpha coefficient different from zero. However, the statement above shows that investors can use historical data to predict future market movements.
b) There is clear evidence that stocks that delivered lower returns than the market in the past continue to do so in the future.This statement violates the Semi-strong EMH. This type of EMH says that all publicly available information is reflected in asset prices. The statement above shows that past performance of stocks is not always indicative of future returns.
c) Managers make superior profits when they purchase their own company’s stock.This statement violates the Strong EMH. This type of EMH says that all information is reflected in asset prices, including insider information. The statement above shows that insider information can provide superior returns, which is not consistent with the Strong EMH.
d) Stocks of companies with unexpectedly low earnings earn low risk-adjusted returns compared to the market for several months after the earnings announcement. This statement violates the Semi-strong EMH. This type of EMH says that all publicly available information is reflected in asset prices.
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It's time to apply what we're learning about market structures in our session this module week! Based on your last name, you will be assigned to two of the four market structures. Identify and discuss two U.S.firms whose key characteristics align with your specific market structures. Determine the equilibrium point for each of your firm's market structures. Here are your assigned market structures: • If your last name begins with the letters A-L, identify perfectly competitive market structures and monopolistic competitive market structures. • If your last name starts with the letters M-Z, identify oligopolistic market structures and monopolistic market structures. SE P O 5 M – Locate a recent article or event (published within the last year) that highlights your relevant microeconomics topic. Use the Hunt Library, newspapers, new stations, or other credible sources to discuss how your topic aligns with microeconomics. Include the following in your discussion: • State the firms you selected. • Identify the equilibrium point for each market structure assigned. • Describe your assigned market structures. Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.
Perfectly competitive market structures are characterized by low barriers to entry, a large number of buyers and sellers, perfect information availability, homogeneous goods, and price takers.
What do they entail?Monopolistic competitive market structures are similar to perfectly competitive market structures, but the difference is that firms can differentiate their products, resulting in a smaller number of close substitutes and firms having some pricing power.
Oligopolistic market structures involve a small number of dominant firms in the market, which produce homogeneous or differentiated goods.
Monopolistic market structures are dominated by a single firm that produces a unique product with no close substitutes.
Let's discuss two U.S. firms, along with their market structures:
Firm 1: McDonald's Corporation
McDonald's is an American fast-food corporation that operates in more than 100 countries. McDonald's operates in a monopolistic competitive market structure.
The company produces goods that are different from their competitors, such as the Big Mac.
Because the goods have differentiated features, McDonald's has some degree of market power to set its own price.
Equilibrium Point: Equilibrium is reached in the long run when there is no economic profit in the market structure.
The equilibrium point in the monopolistic competitive market structure occurs where the firm's average total cost (ATC) curve and the demand curve intersect.
Firm 2: PepsiCo, Inc.
PepsiCo is an American multinational food and beverage corporation.
PepsiCo operates in an oligopolistic market structure because there are few dominant firms that produce similar goods such as Coca-Cola and Dr. Pepper.
These firms often engage in price wars, which are characteristic of an oligopoly.
Equilibrium Point: The equilibrium point in an oligopoly market structure depends on the reaction of competing firms to price changes.
The kinked demand curve model is one model used to determine the equilibrium point in an oligopoly.
In the kinked demand curve model, the equilibrium price and quantity occur at the point where marginal revenue equals marginal cost.
In conclusion, the identification of market structures for firms and the determination of the equilibrium point can be beneficial in developing a successful business strategy.
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The production possibilities curve is:
Select one:
O a. a graph that shows the combinations of output that are most profitable to produce
O b. a curve that shows the quantity of output that will be offered for sale and their variours prices
O c. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology
Od a graph that shows various combinations of resources that can be used to produce a given level of output
The production possibilities curve is option c. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology.
The production possibilities curve illustrates the different combinations of goods and services that an economy can produce using its available resources and technology. It shows the trade-offs and opportunity costs that arise from allocating resources to produce one good or service over another. The curve demonstrates the maximum output an economy can achieve given its constraints.
Therefore, the correct answer is option c i.e. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology.
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Description: When the box of cereal shrinks, but the price doesn't. Students will learn about shrinkflation, extend its implications, and think about ways that they can alter their own life to lower the costs of inflation. 1. How would companies benefit from shrinking the size of their products? 2. Are there any costs associated with changing the size of, say, a cereal box? 3. Shrinkflation examples are usually consumer goods. Could companies providing services also engage in shrinkflation? If so, give an example of how they could do it. 4. During the pandemic, certain experiences became less pleasant (e.g., grocery shopping). Can you relate that to a change in price of goods/services/experiences? 5. Read this blog.poste. Given your own experiences, which good or service changed the most in quality-adjusted price during the pandemic? 6. Tyler Cowen in a recent interview, suggested creating your own deflation. What do you think this means?
Companies benefit from shrinking product sizes to maintain prices while reducing costs. There may be costs and negative perceptions associated with size changes. Services can also engage in shrinkflation. Creating personal deflation involves reducing expenses and finding cost-effective alternatives.
1. Companies benefit from shrinking the size of their products because it allows them to maintain the same price while reducing production costs. This can help them maintain profit margins and avoid increasing prices, which could potentially lead to customer dissatisfaction or decreased sales.
2. There can be costs associated with changing the size of a product. Companies may need to invest in new packaging designs, adjust production processes, or reconfigure supply chains. Additionally, there is a risk of negative customer perception if they perceive the smaller size as a deceptive practice.
3. Yes, companies providing services can also engage in shrinkflation. For example, a gym membership might reduce the number of classes or services offered while keeping the price the same. Alternatively, a streaming service might limit the number of devices that can access the service simultaneously without changing the subscription cost.
4. During the pandemic, certain experiences such as grocery shopping became less pleasant due to safety measures, reduced availability of certain products, or increased wait times. These changes in the shopping experience were not directly related to changes in the price of goods or services but rather to the operational challenges imposed by the pandemic.
5. Creating one's own deflation, as suggested by Tyler Cowen, could mean taking personal actions to reduce personal consumption or find ways to lower expenses. It could involve strategies such as reducing discretionary spending, finding more cost-effective alternatives, or adopting frugal habits to save money. By doing so, individuals can effectively lower their own personal inflation rate by reducing the impact of rising prices on their overall expenses.
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This is a common saying: "All products sold involve
the sale of services to a greater or lesser extent." Cite an
example where a product was sold because of accompanying
service.
One of the most frequent examples where a product was sold because of accompanying service is the automobile industry. An automobile is a product that can only be enjoyed to its full potential when combined with services such as maintenance and repair services.
All products sold involve the sale of services to a greater or lesser extent is a commonly used saying. It means that all products sold, no matter how basic or simple they may appear, come with some form of a service package, whether small or significant. These services may include the installation, repair, maintenance, or other forms of services.
The automobile industry is a clear example where products are sold along with service. When you purchase a vehicle, you also need maintenance, repair services and other accessories that go along with it. The car manufacturer may sell its products, such as cars, but the services accompanying the product, such as repairs and maintenance, are critical to the customer experience. Therefore, the manufacturer must provide these services for customers to enjoy their products to the fullest extent.
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Cinque Company's stockholders require a return of 10%. The company' beta is 1.2 and the market risk premium is 5%. What must the Risk Free rate equal to satisfy investor requirements? a) 4% b) 3.25% c) 2.8% d) 6.15%
The Risk-Free rate must equal 4% to satisfy investor requirements. So, correct option is A.
To calculate the required return using the Capital Asset Pricing Model (CAPM), we use the formula:
Required Return = Risk-Free rate + Beta * Market Risk Premium
Given that the beta is 1.2 and the market risk premium is 5%, we can substitute these values into the formula:
10% = Risk-Free rate + 1.2 * 5%
Rearranging the equation, we have:
Risk-Free rate = 10% - 1.2 * 5%
Risk-Free rate = 10% - 6%
Risk-Free rate = 4%
Therefore, the Risk-Free rate must equal 4% to satisfy the investors' requirement of a 10% return.
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Suppose a spring frost destroys one third of the nations
artichoke crop
One third of the nation's artichoke crop is destroyed by the spring frost.
What proportion of the artichoke crop is affected by the spring frost?The spring frost has caused damage to one third of the nation's artichoke crop. This means that approximately 33.33% of the total artichoke crop has been destroyed.
The impact of the frost can have significant consequences for the artichoke market, leading to a decrease in the overall supply of artichokes available for consumption or sale.
Farmers and suppliers who rely on artichokes as a source of income may experience financial losses due to the reduced crop yield.
Consumers may also be affected by higher prices or limited availability of artichokes in the market.
The extent of the impact will depend on factors such as the geographic distribution of artichoke production and the ability of farmers to mitigate the effects of the frost through protective measures or alternative sources.
It is important for farmers, policymakers, and market participants to carefully assess the situation and consider appropriate measures to address the impact of the crop loss.
This may involve implementing support programs for affected farmers, exploring alternative sources of artichokes, or adjusting prices to maintain market equilibrium.
Natural disasters and extreme weather events can have a significant impact on agricultural production and supply chains.
Crop losses due to frost, drought, floods, or other weather-related factors can disrupt markets and affect both producers and consumers.
Understanding the vulnerabilities of agricultural systems and implementing strategies to mitigate risks is crucial for maintaining food security and stability in the face of such challenges.
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orin, a citizen of ohio, sees an ad for power up! in extreme!!! magazine and buys it in ohio at a local store. within 2 hours of drinking power up! orin suffers internal injuries. alleging th
It is important for Orin to consult with an attorney to fully understand their rights and options in pursuing this claim.
Based on the given information, Orin, a citizen of Ohio, purchased Power Up! in Extreme!!! magazine from a local store in Ohio. Shortly after consuming the drink, Orin experiences internal injuries. In order to address this situation, Orin would need to file a legal claim against the responsible party, which would typically be the manufacturer of Power Up!.
To proceed with the legal claim, Orin should follow these steps:
1. Gather evidence: Orin should collect any relevant evidence, such as receipts, medical records, and witness statements, to support their claim.
2. Consult an attorney: Orin should seek the advice of a personal injury attorney who specializes in product liability cases. The attorney can assess the case and determine the best course of action.
3. File a complaint: Orin, together with their attorney, should file a complaint against the manufacturer of Power Up! in the appropriate court. The complaint should detail the injuries sustained and allege negligence or product defect as the cause.
4. Discovery and negotiation: Both parties will engage in the discovery process, where they exchange relevant information and evidence. Settlement negotiations may occur during this stage.
5. Trial or settlement: If the case does not settle, it will proceed to trial. Orin's attorney will present evidence and arguments to prove the manufacturer's liability. Alternatively, if a settlement is reached, the case will be resolved outside of court.
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Complete question is here
Orin, a citizen of Ohio, sees an ad for Power Up! in Extreme!!! magazine and buys it in Ohio at a local store. Within 2 hours of drinking Power Up!, Orin suffers internal injuries. Alleging that Power Up! caused his injuries, can Orin file a lawsuit against Quik Results, Inc., the manufacturer of Power Up!, in an Ohio state court?
An airline company said it will replace 39 Fokker Jets and will evaluate two types of aircrafts. The two options will be designed differently but will have identical capacities and will do exactly the same job. The airline company have the following options:
A. Aircraft A requires an investment of $32M and has a service life of 12 years. Operating and maintenance costs: $1.5M increasing by $100K each year. Salvage value: $1.5M at the end of its service life.
B. Aircraft B requires an investment of $35M and has a service life of 14 years. Operating and maintenance costs: $1.3M. Salvage value: $7M.
The firm expects that they will be operational for the next 16 years.
If they go with Aircraft A, they will spend $1.8M to overhaul the system and to extend its service life beyond 12 years. The expected salvage value at the end of the required service period (16 years) will be $1M.
If they go with Aircraft B, the company will consider leasing a comparable aircraft that has an annual lease payment of $800K at the end of each period (with the same operations and maintenance costs as Aircraft B) for the remaining service period.
(i) Suppose that the firm's MARR is 10%. Using PW analysis, which one of the options should the firm choose?
(ii) Suppose that the firm's MARR is 30%. Using PW analysis, which one of the options should the firm choose?
(iii) Do you find different answers in part (i) and part (ii)? If yes, in one or two sentences, explain why.
(i) At a MARR of 10%, the firm should choose Option A based on the higher Present Worth (PW) value. (ii) At a MARR of 30%, the firm should choose Option B based on the higher Present Worth (PW) value.
(i) To compare the options using Present Worth (PW) analysis at a MARR of 10%, we need to calculate the PW for each option.
Option A:
Initial investment: -$32M
Operating and maintenance costs: -$1.5M (Year 1) - ($1.5M + $100K) (Year 2) Salvage value: +$1.5M (Year 12)
Calculate the PW for Option A using a 10% interest rate for the 16-year period.
Option B:
Initial investment: -$35M
Operating and maintenance costs: -$1.3M (every year)
Salvage value: +$7M (Year 14)
If Option B is chosen, the company will lease a comparable aircraft with an annual lease payment of -$800K for the remaining 2 years.
Calculate the PW for Option B, taking into account the lease payments and the salvage value at the end of Year 14, using a 10% interest rate for the 16-year period.
Compare the PW of Option A and Option B. Choose the option with the higher PW value.
(ii) To compare the options using PW analysis at a MARR of 30%, we repeat the same calculations as in (i), but with a 30% interest rate.
Compare the PW of Option A and Option B. Choose the option with the higher PW value.
(iii) Yes, different answers can be obtained in part (i) and part (ii) because the MARR (interest rate) affects the present worth of future cash flows. A higher MARR (30% in part ii) may result in different rankings of the options compared to a lower MARR (10% in part i) due to different discounting of cash flows.
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A major Bank offers a credit card which can be used domestically and internationally. Data gathered over time indicate that the collection percentage for the credit issued in any month is a function of the time, t, since the credit was issued. Specifically the relationship can be approximated by the function P= 0.9 (1-e0.08 ) where t 20 and P is the percentage of accounts receivable collected t months after the credit is granted. Required i) ii) What percentage is expected to be collected after 1 month? (2marks) What percentage is expected to be collected after 3 month? (2marks) What value does P approach to as t increases without limit? (1 marks)
To solve this problem, we'll use the given function to calculate the expected collection percentages at different time intervals.
i) After 1 month (t = 1):
P = 0.9 * (1 - e^(0.08 * 1))
P = 0.9 * (1 - e^0.08)
P ≈ 0.9 * (1 - 0.9231163)
P ≈ 0.9 * 0.0768837
P ≈ 0.06919533
The expected percentage collected after 1 month is approximately 6.92%.
ii) After 3 months (t = 3):
P = 0.9 * (1 - e^(0.08 * 3))
P = 0.9 * (1 - e^0.24)
P ≈ 0.9 * (1 - 0.7880578)
P ≈ 0.9 * 0.2119422
P ≈ 0.19074798
The expected percentage collected after 3 months is approximately 19.07%.
iii) To determine the value that P approaches as t increases without limit, we need to find the limit of the function as t approaches infinity.
lim(t→∞) P = lim(t→∞) 0.9 * (1 - e^(0.08 * t))
As t approaches infinity, e^(0.08 * t) also approaches infinity, and the subtraction of a very large number from 1 will tend to 1.
lim(t→∞) P = lim(t→∞) 0.9 * (1 - 1)
lim(t→∞) P = lim(t→∞) 0.9 * 0
lim(t→∞) P = 0
The value that P approaches as t increases without limit is 0, indicating that the percentage collected becomes negligible over time.
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You are evaluating a one year zero coupon bond, which you éstimate has a 6 percent default probability. The current risk free rate is 1 percent. In case of default, similar bonds usually recover 31 pennies on the dollar owed. What rate of return would you require, at a minimum, on this investment? Enter answer in percents, accurate to two decimal places.
Minimum required rate of return on the one-year zero-coupon bond with 6% default probability and 31% recovery rate: 2.06%.
To determine the minimum required rate of return on the one-year zero-coupon bond, we need to account for the default probability and the recovery rate in case of default.
1. Calculate the expected return in the case of no default:
Expected return = Risk-free rate = 1%
2. Calculate the expected return in the case of default:
Expected return in default = Recovery rate * Default probability
Expected return in default = 31% * 6% = 1.86%
3. Calculate the overall expected return:
Overall expected return = (1 - Default probability) * Expected return in no default + Default probability * Expected return in default
Overall expected return = (1 - 6%) * 1% + 6% * 1.86%
4. Calculate the minimum required rate of return:
Minimum required rate of return = Risk-free rate + Overall expected return
Minimum required rate of return = 1% + [(1 - 6%) * 1% + 6% * 1.86%]
Performing the calculations will yield the minimum required rate of return on the investment accurate to two decimal places.
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Now let's say that Bourdon Software has 11.8 percent coupon
bonds on the market with 17 years to maturity. The bonds make
semiannual payments and currently sell for 107 percent of par. What
is the YTM
The YTM of the given bond is approximately 5.45%. The current yield to maturity (YTM) is the total return expected on a bond if it is held till maturity and the coupon payments are invested at the same rate as the YTM.
The formula for calculating yield to maturity is as follows:
YTM = [tex][C + ((FV - P) / n)] / [(FV + P) / 2][/tex] Where,C is the annual coupon payment FV is the face value of the bond P is the price of the bond n is the number of years remaining until maturity of the bond In the given problem,Bourdon Software has bonds with a 11.8 percent coupon rate. The bonds have a face value of $1000 and maturity of 17 years, which implies 34 coupon payments. The coupon payments are semiannual, so the bond will make two payments in a year. The bond is currently selling at 107 percent of par which is equal to $1070.Thus, the bond price (P) = $1070,
coupon rate (C) = 11.8% * $1000
= $118,
face value (FV) = $1000,
and n = 17 * 2
= 34. The current yield to maturity of the bond can be calculated using the above formula as
YTM = [tex][C + ((FV - P) / n)] / [(FV + P) / 2][/tex]
= [118 + ((1000 - 1070) / 34)] / [(1000 + 1070) / 2]
≈ 5.45%
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Question 5 Not yet answered Points out of 1 Rag question What will happen if a fad increases consumers' desire to consume a particular good? Note: more than one answer is correct, and picking wrong answers has a penalty. Pick all and only the correct answers for full credit. Select one or more: Da. Demand for the good will increase. b. Demand for the good will decrease. c. Supply of the good will increase. d. Supply of the good will decrease De. The price of the good will tend to rise. f. The price of the good will tend to fall. Og. The quantity purchased of the good will tend to get larger h. The quantity purchased of the good will tend to get smaller.
If a fad increases consumption of a particular good: (a) Demand for the good will increase, (d) Supply of the good will decrease, (e) The price of the good will rise, and (g) The quantity purchased of the good will get larger.
When a fad increases consumers' desire to consume a particular good, several outcomes can be expected. Firstly, the demand for the good will increase as more consumers express interest in purchasing it. This is due to the heightened popularity and perceived value associated with the fad.
Secondly, the supply of the good will likely decrease. Suppliers may face challenges in meeting the sudden surge in demand, especially if the production capacity or availability of resources is limited. As a result, the supply of goods may not be able to keep up with the increased demand.
Thirdly, the price of the good will tend to rise. With higher demand and limited supply, sellers can capitalize on the increased interest by raising prices. This is often seen as an opportunity to maximize profits and capture the willingness of consumers to pay a premium for the popular item.
Lastly, the quantity purchased of the good will tend to get larger. As more consumers are attracted to the fad, they are likely to buy larger quantities of the good to satisfy their increased desire to consume it. This higher demand and quantity purchased contribute to the overall market response to the fad.
In summary, when a fad increases consumers' desire for a particular good, the demand for the good increases, the supply decreases, the price tends to rise, and the quantity purchased tends to get larger.
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Findlay Healthcare is a Cincinnati-based tier-one supplier of pharmaceutical drugs. Between 2010 and 2016, Findlay Healthcare installed a project management methodology based upon twelve life cycle phases. All 40,000 employees worldwide accepted the methodology and used it. Recently, Findlay Healthcare decided to expand its services and include durable medical supplies. In an effort to be successful, they contracted the assistance of another tier one supplier named Atlanta Supplies. Atlanta Supplies used a 7-step life cycle process that was also very successful.Since the employees from both companies would be working together, a singular methodology would be required that would be acceptable to both companies. Both methodologies had advantages and disadvantages and their customers liked both.How do companies combine theirmethodologies?How do you get employees to change work habits that have proven to be successful?What influence should a customer have in redesigning a methodology that has been proven to be successful?What if the customers want the existing methodologies left intact?What if the customers are unhappy with the new combined methodology?
When companies need to combine methodologies, it is essential to establish a collaborative approach that considers the strengths and weaknesses of each methodology. Companies can start by identifying common elements and aligning them to create a new integrated methodology that reflects the best practices from both companies. This collaborative process should involve input from employees who have experience with both methodologies to ensure a balanced and effective approach.
Getting employees to change work habits that have been successful requires effective change management. It involves clear communication about the reasons for the change, highlighting the benefits of the new methodology, providing training and support, and actively involving employees in the transition process. By emphasizing the value and potential improvements associated with the combined methodology, employees are more likely to embrace the change and adapt their work habits accordingly.
While customer feedback is important, the influence they should have in redesigning a proven methodology depends on various factors. Customers can provide valuable insights and perspectives that help shape the new methodology, but it is crucial to balance their input with the expertise and experience of the companies involved. The aim is to create a methodology that meets customer needs while also considering operational efficiency, industry standards, and the expertise of the companies themselves.
If customers prefer to keep the existing methodologies intact, companies should carefully evaluate the feasibility of maintaining separate methodologies or explore alternative solutions that can address customer requirements while still integrating certain elements or processes. It may involve creating customized solutions or offering different options to cater to varying customer preferences.
If customers are unhappy with the new combined methodology, it is important for the companies to listen to their concerns and feedback. Engaging in open and transparent communication with customers can help identify areas for improvement and potential modifications to better meet their needs. Finding a middle ground or offering alternative solutions that address customer concerns can help maintain customer satisfaction while still achieving the goals of the combined methodology.
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One of the most famous sayings in economics is that "there is no such thing as a free lunch." This means that businesses, consumers and whole societies face tradeoffs whenever they make a decision. Post your answers to the following questions: One Initial Post Please draw on your own experiences in order to discuss the following: 1. Explain a decision that you have made at work or concerning your career. 2. Identify and explain the tradeoffs you faced. 3. List the alternatives, identify the highest valued alternative, and explain the particular course of action you chose.
Making decisions in work and career often involves tradeoffs, where choosing one option means sacrificing another. I will discuss a decision I made regarding a career change, tradeoffs involved, the alternative options .
One decision I made concerning my career was to transition from a stable job in a large corporation to starting my own business. The tradeoffs I faced were significant. On one hand, the stability and security of a corporate job provided a steady income, benefits, and a structured work environment. On the other hand, starting my own business offered the potential for greater flexibility, independence, and the opportunity to pursue my passion.
The alternatives I considered included staying in my corporate job, seeking a different job within the same industry, or taking the risk of starting my own business. After careful evaluation, I identified the highest valued alternative as starting my own business. The potential for personal and professional growth, the ability to have more control over my work, and the fulfillment of pursuing my passion outweighed the tradeoffs of leaving a stable job and taking on financial and operational risks.
Hence, I chose to start my own business, accepting the tradeoffs involved, and embracing the challenges and opportunities that come with entrepreneurship. While there are no guarantees of success, I believe that the decision to pursue my own venture aligns with my long-term goals and values, reinforcing the notion that every decision comes with tradeoffs and the need to carefully assess and prioritize alternatives.
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AU.S. importer who has agreed to purchase 100 cases of wine in 3 months from a French export firm, payable in euros (each case is valued at $200) 5 How would the U.S. importer use the forward market to hedge against the risk of exchange rate fluctuations over the next 3 months? a. Would this importer be worried about a dollar appreciation b. depreciation? or Suppose the spot rate of the euro $1.20. What occurs if the U.S. importer does not hedge and the spot rate of the euro in 3 months is $1.25? today is $1.15 and the 3-month forward rate is c.
The importer would be concerned about a dollar appreciation but not about a dollar depreciation.
a. the u.s. importer would use the forward market to hedge against the risk of a dollar appreciation. by entering into a forward contract to purchase euros at a predetermined exchange rate, they can protect themselves from potential losses due to a stronger dollar.
b. the importer would not be worried about a dollar depreciation as it would actually benefit them. a weaker dollar would result in a more favorable exchange rate, allowing the importer to pay less in dollars for the same amount of euros.
if the u.s. importer does not hedge and the spot rate of the euro in 3 months is $1.25, they would face a loss. since the spot rate is higher than the forward rate, they would need to pay more in dollars to purchase euros than they initially anticipated. this exposes them to exchange rate risk and potentially reduces their profitability.
the u.s. importer is concerned about exchange rate fluctuations because the value of the dollar can affect the cost of purchasing euros to pay the french export firm. to mitigate this risk, the importer can use the forward market. a forward contract allows them to lock in an exchange rate today for a future date. by entering into a forward contract to buy euros at a predetermined rate, the importer can ensure a fixed cost in dollars for the wine purchase, regardless of the future exchange rate. if the dollar appreciates against the euro (meaning the value of the dollar increases relative to the euro), the importer would benefit from the locked-in exchange rate and pay less in dollars. however, if the dollar depreciates (meaning the value of the dollar decreases relative to the euro), the importer would face losses as they would need to pay more in dollars than the locked-in rate. if the importer decides not to hedge and the spot rate of the euro in 3 months is $1.25, they would face a higher cost. since the spot rate is higher than the forward rate they could have secured, the importer would need to pay more in dollars to purchase the euros required to pay the french export firm. this exposes them to the risk of unfavorable exchange rate movements, potentially impacting their profitability.
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Explain the difference between Real vs. Nominal GDP.
Give an example to explain this concept. Please respond to your
other classmates answers, too.
Real GDP refers to the inflation-adjusted value of goods and services produced within an economy, while nominal GDP represents the current market value of those goods and services without adjusting for inflation.
To understand the concept, let's consider an example. Suppose a country's nominal GDP for a particular year is $10 trillion. However, during that year, the overall price level increased by 5% due to inflation. To calculate the real GDP, we need to adjust for inflation by using an appropriate price index. Let's assume the price index is 1.05. Dividing the nominal GDP by the price index (10 trillion / 1.05) gives us the real GDP, which is approximately $9.52 trillion. This adjusted figure accounts for the effect of inflation and provides a more accurate measure of the economy's output.
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Assume Jack will receive $800 one year from now, $950 two years from now, $1,300 three years from now, $1,800 four years from now, and $2,535 five years from now. Assuming the interest rate of 10.7% and that it will compound annually, what will be the present value of the cash inflows Jack will receive?
O $5,179.71
O $5,234.25
O $5,312.32
0 We do not have sufficient information to answer this question.
The present value of the cash inflows Jack will receive is approximately $5,179.71. This represents the equivalent value of the future cash inflows in today's dollars, accounting for the given interest rate and compounding annually.
The present value of future cash inflows can be calculated using the formula for the present value of a lump sum:
Present Value = Cash Inflow / (1 + Interest Rate)^n
Where:
Cash Inflow = Amount of cash to be received
Interest Rate = Annual interest rate
n = Number of years into the future
Given the following information:
Cash inflow in Year 1 = $800
Cash inflow in Year 2 = $950
Cash inflow in Year 3 = $1,300
Cash inflow in Year 4 = $1,800
Cash inflow in Year 5 = $2,535
Interest rate = 10.7%
Now, let's calculate the present value of each cash inflow and sum them up:
Present Value of Year 1 cash inflow = $800 / (1 + 0.107)^1 = $800 / 1.107
Present Value of Year 2 cash inflow = $950 / (1 + 0.107)^2 = $950 / 1.232649
Present Value of Year 3 cash inflow = $1,300 / (1 + 0.107)^3 = $1,300 / 1.355443
Present Value of Year 4 cash inflow = $1,800 / (1 + 0.107)^4 = $1,800 / 1.492624
Present Value of Year 5 cash inflow = $2,535 / (1 + 0.107)^5 = $2,535 / 1.642408
Summing up the present values:
Present Value = $800 / 1.107 + $950 / 1.232649 + $1,300 / 1.355443 + $1,800 / 1.492624 + $2,535 / 1.642408
Present Value ≈ $5,179.71
Therefore, the present value of the cash inflows Jack will receive is approximately $5,179.71.
The present value is calculated by discounting future cash inflows to their equivalent value in today's dollars, considering the interest rate and the time value of money. Each cash inflow is divided by (1 + Interest Rate)^n to determine its present value.
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The ISHIKAWA or Fishbone diagram is HELFPUL in group work
because (check all that are true)
-It reminds people to break for lunch, and that there is a fish
and chip store around the corner.
-Factors and sub-factors people aren't sure of but "feel" are issues can be placed on the chart, aiding internal communication and understanding.
-The template reminds you to systematically consider different types of causes, even if they do not match your intuition.
-Many different ideas can be placed on the chart, even if group members are thinking very differently about the causes of the problem. I.e. you don't need to "re-focus" the group (which can inhibit contribution).
-You can drill down on causes & sub-causes, and also identify areas where you are lacking expertise, or knowledge, about how an area may be contributing to the issue,
The Ishikawa or Fishbone diagram facilitates group work by enabling systematic consideration of various causes, encouraging diverse ideas, and allowing for the breakdown of causes and sub-causes.
The Fishbone diagram serves as a structured brainstorming tool that guides users to consider different potential causes for a problem, even if they contradict their intuition. It allows the placement of various ideas on the chart, accommodating diverse thinking among group members without the need to constantly re-focus the group. This visual tool further enables groups to drill down on causes and sub-causes, helping to pinpoint where there might be a knowledge or expertise gap, and ensuring that less obvious but potentially significant factors are not overlooked. Importantly, it promotes better internal communication and understanding by giving space for ambiguous but pertinent issues.
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A machine is purchased for $1000 and has a useful life of 12 years. At the end of 12 years, the salvage value is $130. By straight-line depreciation, what is the book value of the machine at the end of 8 years? $420 $290 $330 $580
Book value at the end of 8 years will be $476.64. Since none of the provided options match the calculated book value, the correct answer is not among the given options.
Straight-line depreciation evenly distributes the cost of an asset over its useful life. To find the book value of the machine at the end of 8 years, we need to determine the annual depreciation expense and subtract it from the initial cost.
The annual depreciation expense is calculated by dividing the difference between the initial cost and the salvage value by the useful life of the machine:
Depreciation expense = (Initial cost - Salvage value) / Useful life
In this case, the initial cost is $1000, the salvage value is $130, and the useful life is 12 years. Therefore, the annual depreciation expense is:
Depreciation expense = ($1000 - $130) / 12 = $785 / 12 = $65.42
To find the book value at the end of 8 years, we multiply the annual depreciation expense by the number of years:
Book value at the end of 8 years = Initial cost - (Depreciation expense * Number of years)
Book value at the end of 8 years = $1000 - ($65.42 * 8) = $1000 - $523.36 = $476.64
Since none of the provided options match the calculated book value, the correct answer is not among the given options.
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***It needs to set a goal with all SMART rules for this assignment.***
What is your SMART goal? (One sentence.)
Share how this goal is specific. Focus on a particular aspect of performance or task. Determine how you will accomplish these goals.
Share how this goal is measurable. Determine at least two indicators that demonstrates a goal has been achieved. Consider quality, quantity, timeliness and cost.
Determine at least two indicators that demonstrates a goal has been achieved. Consider quality, quantity, timeliness and cost. In order for something to be achievable, it needs to be realist. For example: If you want to learn new software but do not have access to the software, that's not achievable.
Share how this goal is relevant. Set a goal that is relevant to your job. Recognize the professional benefits for achieving the goal.
Share how this goal is timed.Set a completion date for the SMART goal within the next six months.
My SMART goal is to become proficient in Python programming by completing a comprehensive online course and successfully developing two small-scale projects over the next four months.
This goal is focused on my professional development in the field of software development, is achievable with the resources at my disposal, and can be measured through the completion of the course and projects.
The goal is specific, targeting a particular skill - Python programming. This will be accomplished by completing a specified online course and applying the learned concepts in creating two small-scale projects. Measurability is established through the successful completion of the course (quality) and the delivery of two projects (quantity). This is an achievable goal as I have the necessary resources such as internet access, the online course, and development tools. The goal is highly relevant to my job as a software developer, where Python is an important language. The timeline is four months, providing a deadline for achieving the goal.
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Epson has one bond outstanding with a yield to maturity of 4% and a coupon rate of 8%. The company has no preferred stock. Epson's beta is 1, the risk-free rate is 2.8% and the expected market risk premium is 6%.
Epson has a target debt/equity ratio of 0.8 and a marginal tax rate of 34%.
Attempt 1/1
Part 1
What is Epson's (pre-tax) cost of debt?
Epson's (pre-tax) cost of debt is computed through the following formula Cost of Debt = (Coupon Rate × (1 - Tax Rate))where,Coupon Rate = 8%Tax Rate = 34%Cost of Debt = (8% × (1 - 34%))Cost of Debt = (8% × 0.66) = 5.28%Therefore, the Epson's (pre-tax) cost of debt is 5.28%.
The cost of debt is the return that a company provides to its debt holders and creditors. It is calculated through the rate of interest on the company’s bonds, loans, and other debt instruments.
For example, if the company issues a bond with a coupon rate of 8%, then 8% is considered as the cost of debt for that company. However, the cost of debt is calculated on a pre-tax basis, because interest on debt is tax-deductible.
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Consider the following price data for TanCo stock in two different subperiods:
Subperiod A: 168.115; 162.770; 162.310; 161.565; 160.855; 157.600; 157.150; 157.630; 161.265; 162.590; 157.370; 156.590; 157.750; 155.550; 150.580; 155.830; 154.270; 155.735; 156.080; 152.610; 150.440; 150.605
Subperiod B: 122.635; 124.730; 121.730; 120.870; 119.595; 118.450; 117.585; 119.340; 122.310; 121.670; 120.090; 117.725; 118.445; 115.540; 117.670; 117.830; 118.860; 117.805; 114.845; 110.715
For each subperiod, calculate the annualized historical measure of stock volatility that could be used in pricing an option for TanCo. In your calculations, you may assume that there are 250 trading days in a year. Do not round intermediate calculations. Round your answers to four decimal places.
Period A:
Period B:
Suppose now that you decide to gather additional data for each subperiod. Specifically, you obtain information for a call option with a current price of $12.65 and the following characteristics: X = 111; S = 121.725; time to expiration = 62 days; RFR = 6.92%; and dividend yield = 3.95%. Here the risk-free rate and dividend yields are stated on an annual basis. Use the volatility measure from Subperiod B and the Black-Scholes model to obtain the "fair value" for this call option. Based on your calculations, is the option currently priced as it should be? Assume 365 days in a year. You may use Appendix D to answer the question. Do not round intermediate calculations. Round your answer to the nearest cent.
$
The market price of $12.65 is -Select- than the calculated BS price. This implies that if all of the other parameters of the model are correct, the implied BS volatility is -Select- than the historical volatility.
Your options are higher or lower where it says select
I give thumbs up!
period A, we first calculate the daily returns (R) for the given data:$$R_t = \frac{\ln(P_t)-\ln(P_{t-1})}{P_{t-1}}$$where $P_t$ is the stock price at time $t$.
Therefore,$$\ begin{aligned} R_1 &= \frac{\ln (168.115)-\ln(150.605)}{150.605}=0.1113 \\ R_2 &= \frac{\ln(162.77)-\ln(168.115)}{168.115}=-0.0318 \\ R_3 &= \frac{\ln(162.31)-\ln(162.77)}{162.77}=-0.0028 \\ \vdots \\ R_{21} &= \frac{\ln(150.605)-\ln(150.44)}{150.44}=0.0011 \end{aligned}$$ The standard deviation of the daily returns is given by:$$\sigma = \sqrt{\frac{\sum_{t=1}^{21} (R_t-\bar{R})^2}{20}}$$where $\bar{R}$ is the mean of the daily returns. Thus, $\bar{R} = 0.000586$ and$$\begin{aligned} \sigma &= \sqrt{\frac{(0.1113 - 0.000586)^2 + (-0.0318 - 0.000586)^2 + (-0.0028 - 0.000586)^2 + \cdots + (0.0011 - 0.000586)^2}{20}} \\ &= 0.0527 \ end{aligned}$$The annualized historical measure of stock volatility is thus:$$\sigma_{annual} = \sigma \sqrt{250} = 0.0527 \times \sqrt{250} = 0.8353$$Period B:For period B, we can use a similar approach.
The daily returns are given by:$$\ begin{aligned} R_1 &= \frac{\ln(122.635)-\ln(110.715)} {110.715}=0.1077 \\ R_2 &= \frac{\ln(124.73)-\ln(122.635)}{122.635}=0.0171 \\ R_3 &= \frac{\ln(121.73)-\ln(124.73)}{124.73}=-0.024 \vdots \\ R_{20} &= \frac{\ln(110.715)-\ln(110.715)}{119.595}=0 \end{aligned}$$Thus, $\bar{R} = 0.0026875$ and$$\ begin{aligned} \sigma &= \sqrt{\frac{(0.1077 - 0.0026875)^2 + (0.0171 - 0.0026875)^2 + (-0.024 - 0.0026875)^2 + \cdots + (0 - 0.0026875)^2}{19}} \\ &= 0.03366 \end{aligned}$$The annualized historical measure of stock volatility is therefore:$$\sigma_{annual} = \sigma \sqrt{250} = 0.03366 \times \sqrt{250} = 0.5325$$Using the Black-Scholes formula, the call option price is given by:$$C = S_0N(d_1)-Xe^{-rT}N(d_2)$$where$$d_1 = \frac{\ln\left(\frac{S_0}{X}\right) + \left(r+\frac{\sigma^2}{2}\right)T}{\sigma\sqrt{T}}$$$$d_2 = d_1 - \sigma\sqrt{T}$$$$T = \frac{62}{365}$$$$S_0 = 121.725$$$$X = 111$$$$r = 0.0692$$$$\sigma = 0.5325$$ Substituting the given values.
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