Lululemon's largest asset is its brand value, which represents the reputation and recognition of the company in the market.
Over the last three years, Lululemon's brand value has significantly increased. This can be seen through various factors such as higher customer loyalty, increased sales, and expanding market presence.
An investor can gather several insights from this information. Firstly, the growing brand value indicates that Lululemon has successfully differentiated itself in the competitive athleisure market. This suggests that the company has a strong competitive advantage and a loyal customer base.
Secondly, the increasing brand value signifies that Lululemon's products are in demand and that the company has been able to effectively market and communicate its brand message. This indicates a positive growth trajectory for the company.
Lastly, a higher brand value can also attract potential partnerships and collaborations, leading to further growth opportunities for Lululemon. Overall, an investor could interpret the increasing brand value as a positive indication of the company's financial performance and future prospects.
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Gargantuan Greens Inc. is preparing to go public. The company currently has net income (earnings) of $12 million. It is planning to issue 1.5 million shares. A comparable company, Biggie Veggie Co., is publicly traded and currently trades with a price-to-earnings (P/E) ratio of 11x What is Gargantuan's earnings per share (EPS)? (numbers only rounded to the nearest cent. i.e. 1.23) 8 D Question 5 2 pts Gargantuan Greens Inc. is preparing to go public. The company currently has net income (earnings) of $12 million. It is planning to issue 1.5 million shares. A comparable company, Biggie Veggie Co, is publicly traded and currently trades with a price-to-earnings (P/E) ratio of 11x Assume the market values Gargantuan's stock the same as Biggle's. Using Biegle's P/E ratio, what should Gargantuan's stock price be when it goes public? (numbers only, rounded to the nearest cent, le 12.34) In 1950, a loaf of bread cost $0.07. The current average price of bread of $2.13. At what annual rate has the price of bread risen? (positive numbers only, no symbols, round to the nearest hundredth)
a. Gargantuan's earnings per share (EPS) is $8.00.
b. Gargantuan's stock price, based on Biggie Veggie Co.'s P/E ratio, should be $88.00.
a. To calculate Gargantuan's earnings per share (EPS), we divide the net income of $12 million by the number of shares issued, which is 1.5 million. The EPS is $8.00.
b. Assuming Gargantuan's stock is valued similarly to Biggie Veggie Co., we can use the P/E ratio of 11x to determine the stock price. Multiplying the EPS of $8.00 by the P/E ratio of 11x gives us a stock price of $88.00.
The EPS provides insight into the company's profitability per share, while the P/E ratio indicates the market's valuation of the company's earnings. By using the P/E ratio of a comparable company, we can estimate the stock price for Gargantuan when it goes public.
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a) EPS: $8.00 per share.
b) Gargantuan's stock price at IPO: $88.00 per share.
c) Annual rate of bread price rise: 2.79%.
a) To calculate the earnings per share (EPS), we divide the net income of $12 million by the number of shares to be issued, which is 1.5 million. Therefore, the EPS is $12 million / 1.5 million shares = $8.00 per share.
b) Given that the comparable company, Biggie Veggie Co., has a price-to-earnings (P/E) ratio of 11x, we can assume that Gargantuan Greens Inc. will be valued similarly. To determine the stock price at the initial public offering (IPO), we multiply the EPS of $8.00 by the P/E ratio: $8.00 per share * 11x = $88.00 per share.
c) The annual rate of bread price rise can be calculated by subtracting the old price ($0.07) from the new price ($2.13), dividing the result by the old price, and then multiplying by 100 to get the percentage change.
In this case, ((2.13 - 0.07) / 0.07) * 100 = 2957.14%. Rounding to the nearest hundredth gives an annual rate of 2.79%. This represents the average annual increase in the price of bread from 1950 to the present.
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Mrs. Anu deposit rs 70000 annually for five years. She deposits the money at the end the each year what is the present value of the annuity if discount rate 10%.
The present value of the annuity is approximately Rs -427,358.70 (rounded to the nearest rupee).
The present value of an annuity can be calculated using the formula:
PV = PMT * (1 - (1 + r)^-n) / r
where PV is the present value, PMT is the annual deposit, r is the discount rate, and n is the number of years.
In this case, Mrs. Anu deposits Rs 70,000 annually for 5 years, and the discount rate is 10%.
Plugging in the values:
PMT = Rs 70,000
r = 10% = 0.10
n = 5
[tex]PV = 70000 * (1 - (1 + 0.10)^-5) / 0.10[/tex]
Now, let's calculate it step by step:
Step 1: Calculate [tex](1 + 0.10)^-5[/tex]
[tex](1 + 0.10)^-5 = 1.61051[/tex]
Step 2: Calculate (1 - (1.61051)) / 0.10
[tex](1 - 1.61051) / 0.10 = -0.61051 / 0.10 \\= -6.1051[/tex]
Step 3: Calculate 70000 * -6.1051
70000 * -6.1051 = -427358.7
The present value of the annuity is approximately Rs -427,358.70 (rounded to the nearest rupee).
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Which relationship is most important for industries that are heavily regulated or subject to frequent government interferences?
Trade associations, relationship is most important for industries that are heavily regulated or subject to frequent government interferences.
Industries that are heavily regulated or frequently susceptible to government interference must maintain positive relationships with regulatory organizations, elected officials, consumers, the public, and service providers.
Good communication with all stakeholders is essential in sectors that are extensively regulated or frequently susceptible to government action. Establishing these connections can assist businesses in navigating the regulatory environment, influencing legislation, and successfully operating within the law.
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A review of historical financial statements as compared to an audit of historical financial statements ________.
A review of historical financial statements, as compared to an audit of historical financial statements, provides a lower level of assurance.
An audit involves obtaining reasonable assurance that the financial statements are free from material misstatements, a review is a limited assurance engagement.
During a review, analytical procedures and inquiries are performed to assess the plausibility of the financial information. However, the review process does not involve the same level of detail and testing as an audit.
Therefore, the level of assurance provided by a review is less comprehensive than that provided by an audit, making it a less rigorous examination of the financial statements.
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own more than 20 percent of U.S. real estate, but their holdings are widely disbursed across the United States. own a small portion (less than 10 percent) of U.S, real estate. have only recently (within the last decade) become interested in U.S. real estate. are not permitted to own U.S. real estate.
Out of the given options, the group that is not permitted to own U.S. real estate is "foreign governments."
Foreign governments are not permitted to own U.S. real estate. They can not own land, property or real estate in the United States. Foreign governments may only lease land for use as an embassy, consulate, or other related diplomatic facilities.The majority of the foreign owners have small portions (less than 10%) of U.S real estate.
Only a small percentage of foreign owners (about 2%) own more than 20 percent of U.S. real estate. They include individuals, corporations, and investment funds that have bought properties in the United States and have widely disbursed holdings across the country.
Foreign ownership of U.S. real estate has been increasing for the past few decades. But only in the last decade, the foreign investment in the U.S. real estate has gained considerable attention.
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Paul recently applied for CFP® Certification. Which of the following would always bar him from certification?
a) 2 or more personal bankrupcies
b) Felony conviction for perjury last year.
c) Felony conviction for aggravated assault
d) Prior revocation of a real estate license
The option that would always bar Paul from CFP® Certification is option b) Felony conviction for perjury last year.
The Certified Financial Planner (CFP®) Board of Standards has specific criteria for individuals to become certified. One of the criteria is that individuals with felony convictions for certain crimes, including perjury, are generally barred from certification. This means that if Paul has a felony conviction for perjury from last year, he would be ineligible for CFP® Certification. The reason behind this requirement is to ensure that individuals who hold this certification have a good ethical and professional standing.
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Ace Patios applies overhead using direct labor hours as its activity base. At the beginning of the yes, company estimates total direct labor hours of 20,000 and total overhead costs of $600,000 for theyt 1. Determine the company's predetermined overhead rate. 2. Job A2 used 50 direct labor hours. What is the total of overhead costs applied to this job?
1. The predetermined overhead rate for Ace Patios is $30 per direct labor hour ($600,000 / 20,000 hours).
2. The overhead costs applied to Job A2 are $1,500 (50 hours x $30 per hour).
1. Predetermined Overhead Rate Calculation: The predetermined overhead rate is calculated by dividing the estimated total overhead costs by the estimated total direct labor hours. In this case, the predetermined overhead rate for Ace Patios can be calculated as $30 per direct labor hour ($600,000 / 20,000 hours).
To determine the predetermined overhead rate, divide the estimated total overhead costs ($600,000) by the estimated total direct labor hours (20,000 hours), resulting in a rate of $30 per direct labor hour.
2. Overhead Costs Applied to Job A2: To calculate the overhead costs applied to a specific job, multiply the predetermined overhead rate by the actual direct labor hours used for that job. In this case, the overhead costs applied to Job A2 can be calculated as $1,500 (50 hours x $30 per hour).
To find the overhead costs applied to Job A2, multiply the actual direct labor hours used for the job (50 hours) by the predetermined overhead rate ($30 per hour), resulting in overhead costs applied to Job A2 amounting to $1,500.
Therefore, the total overhead costs applied to Job A2 would be $1,500.
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Sweeten company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year—job p and job q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period’s estimated level of production. Sweeten also estimated $25,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1. 70 per machine-hour. Because sweeten has two manufacturing departments—molding and fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: molding fabrication total estimated total machine-hours used 2,500 1,500 4,000 estimated total fixed manufacturing overhead $ 10,000 $ 15,000 $ 25,000 estimated variable manufacturing overhead per machine-hour $ 1. 40 $ 2. 20 the direct materials cost, direct labor cost, and machine-hours used for jobs p and q are as follows: job p job q direct materials $ 13,000 $ 8,000 direct labor cost $ 21,000 $ 7,500 actual machine-hours used: molding 1,700 800 fabrication 600 900 total 2,300 1,700 sweeten company had no overapplied or underapplied manufacturing overhead costs during the year. Required: for questions 1-8, assume that sweeten company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions, 9-15, assume that the company uses predetermined departmental overhead rates with machine-hours as the allocation base in both departments. Foundational 2-3 (static) 3. What is the total manufacturing cost assigned to job p?
The total manufacturing cost assigned to Job P is $63,890. To determine the total manufacturing cost assigned to Job P using the plantwide predetermined overhead rate.
We need to calculate the total overhead cost and add it to the direct materials and direct labor cost for Job P.
First, let's calculate the total overhead cost:
Total Variable Manufacturing Overhead = Variable Manufacturing Overhead Rate * Actual Machine-Hours
Total Variable Manufacturing Overhead = $1.70 * (1,700 + 800) [Molding + Fabrication machine-hours]
Total Variable Manufacturing Overhead = $4,890
Total Fixed Manufacturing Overhead = Fixed Manufacturing Overhead
Total Fixed Manufacturing Overhead = $25,000
Total Manufacturing Overhead = Total Variable Manufacturing Overhead + Total Fixed Manufacturing Overhead
Total Manufacturing Overhead = $4,890 + $25,000
Total Manufacturing Overhead = $29,890
Now, we can calculate the total manufacturing cost assigned to Job P:
Total Manufacturing Cost = Direct Materials Cost + Direct Labor Cost + Total Manufacturing Overhead
Total Manufacturing Cost for Job P = $13,000 + $21,000 + $29,890
Therefore, the total manufacturing cost assigned to Job P is $63,890.
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Suppose an economy's production function is Y = AK^aL(1-alpha) If the annual rate of economic growth is 3.5% and labour and capital are both growing by 2% annually, what contribution to growth is made by total factor productivity? You can assume that labour receives 75 per cent of the total income generated in this economy. Consider a country where the saving rate 9 is equal to 0.8; the population growth rate n is 0.05; the rate of depreciation d is 0.05; the per capita income y is 100; and the per capita stock of capital k = 800. Calculate the total amount of saving and replacement investment. Check whether this country is in steady-state or not. How do you explain the fact that capital stock is 8 times per capita income? Consider a country where the saving rate 9 is equal to 0.8; the population growth rate n is 0.025; the rate of depreciation d is 0.025; and the per capita income y is 100. What is the stock of capital per capita if this country is in steady-state?
The contribution to growth made by total factor productivity (TFP), we need to calculate the growth rates of labor and capital and use them in the production function.
Therefore, the contribution to growth made by total factor productivity (TFP) is 1.5%.Next, let's calculate the total amount of saving and replacement investment in the country.Saving rate (s): 0.8,Population,growth rate (n): 0.05,Depreciation rate (d): 0.05,Per capita income (y): 100,Per capita stock of capital (k): 800.
Total saving = Saving rate * Per capita income * Population
Total saving = 0.8 * 100 * (1 + 0.05)
Total saving = 80 * 1.05
Total saving = 84
If total saving is greater than replacement investment, the country is building up its capital stock and is not in steady-state.
If total saving is less than replacement investment, the country is depleting its capital stock and is not in steady-state.
The fact that the capital stock is 8 times per capita income can be explained by the high saving rate (0.8). A higher saving rate allows for more capital accumulation over time, leading to a larger capital stock relative to per capita income.
Lastly, let's calculate the stock of capital per capita for the country in steady-state.
Saving rate (s): 0.8,Population growth rate (n): 0.025,Depreciation rate (d): 0.025,Per capita income (y): 100.
In steady-state, the stock of capital per capita (k) is given by:
k = (s * y) / (n + d),k = (0.8 * 100) / (0.025 + 0.025),k = 80 / 0.05,k = 1600.
Therefore, if the country is in steady-state, the stock of capital per capita is 1600.
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The CrO of a certain company always wears his green suit on a day that the firm is about to releare positive information about his company. You believe that you can pront feom thas infomation by buying the firm's shares at the beginning of overy ctay that the Kfo showrs up wearing this green suit. Describe which form of market ethclency is consistent with your belief.
The belief that one can profit by buying a company's shares on days when the CEO wears a green suit, indicating the release of positive information, suggests a form of market inefficiency known as "semi-strong form efficiency."
Semi-strong form efficiency refers to a market where all publicly available information, including both historical and current information, is rapidly and accurately reflected in stock prices. In this case, the assumption is that the CEO's choice of wearing a green suit signals the release of positive information about the company, which is not yet known to the general public.
If this belief holds true and individuals can consistently generate profits by buying shares on such days, it suggests that the market is not fully efficient in processing and incorporating all publicly available information into stock prices. Instead, there may be a time lag or delay between the release of positive information and its impact on stock prices, allowing for potential arbitrage opportunities.
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Average daily demand for a product is 40 units. The review period is 30 days, and lead time is 20 days. Management has set a policy of satisfying 96 percent of demand from items in stock. At the beginning of the review period there are 250 units in inventory. The daily demand standard deviation is constant at 6 units.
If the current inventory level is less than the reorder point (250 units < 837.32 units), it indicates that an order needs to be placed to meet the desired service level.
To analyze the inventory situation and determine if the company needs to place an order, we can calculate the reorder point and compare it to the current inventory level.
First, let's calculate the demand during the lead time:
Lead time demand = Average daily demand * Lead time
Lead time demand = 40 units/day * 20 days = 800 units
Next, let's calculate the safety stock required to achieve the desired service level of 96%:
Safety stock = Z * Standard deviation of daily demand * Square root of lead time
(Note: Z represents the number of standard deviations corresponding to the desired service level. For a 96% service level, Z ≈ 1.75, based on normal distribution probabilities.)
Safety stock = 1.75 * 6 units/day * sqrt(20 days) ≈ 37.32 units
The reorder point can be calculated by adding the lead time demand and the safety stock to the average daily demand:
Reorder point = Lead time demand + Safety stock
Reorder point = 800 units + 37.32 units ≈ 837.32 units
Finally, we can compare the reorder point to the current inventory level:
Current inventory level = 250 units
If the current inventory level is less than the reorder point (250 units < 837.32 units), it indicates that an order needs to be placed to meet the desired service level.
In this case, the company should place an order since the current inventory level is below the reorder point.
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Average daily demand for a product is 40 units. The review period is 30 days, and lead time is 20 days. Management has set a policy of satisfying 96 percent of demand from items in stock. At the beginning of the review period there are 250 units in inventory. The daily demand standard deviation is constant at 6 units. Analyze the inventory situation and determine if the company needs to place an order.
What is the present value of $9,000 paid at the end of each of the next 74 years if the interest rate is 9% per year? The present value is $ (Round to the nearest cent.)
The present value of $9,000 paid at the end of each of the next 74 years, with an interest rate of 9% per year, is $169,190.24.
To calculate the present value of the cash flows, we can use the formula for the present value of an ordinary annuity.
PV = C × (1 - (1 + r)^(-n)) / r
In this case, the cash flow per period is $9,000, the interest rate is 9% per year (or 0.09 per period), and the number of periods is 74.
PV = 9000 × (1 - (1 + 0.09)^(-74)) / 0.09
PV ≈ $169,190.24
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What makes analyzing the cash flow statement so important?
2. What conditions are necessary for arbitrage to work?
3. Describe how the variance and standard deviation are calculated and indicate how they are used to measure risk.
1. Analyzing the cash flow statement is important for several reasons: - It provides insights into the company's ability to generate cash and meet its financial obligations.
- It helps evaluate the company's liquidity position and cash flow management.
- It reveals the sources and uses of cash, highlighting areas of strength or weakness in the business.
- It assists in assessing the company's ability to fund investments, pay dividends, and repay debt.
- It provides information on the company's operating, investing, and financing activities, enabling a holistic view of its financial health.
Overall, analyzing the cash flow statement allows investors, analysts, and stakeholders to gain a deeper understanding of the company's cash flow dynamics, financial performance, and sustainability.
2. Arbitrage is a trading strategy that aims to exploit price discrepancies in different markets to make risk-free profits. To effectively execute arbitrage, certain conditions need to be met:
- The same asset or security is traded in different markets or exchanges.
- The asset's price varies across these markets, creating an opportunity for arbitrage.
- Transaction costs, such as trading fees and taxes, are low enough to ensure profitability after expenses.
- The arbitrageur can execute trades quickly and efficiently to capitalize on the price differences before they are corrected.
- The market is efficient enough that any price discrepancies are short-lived and quickly adjusted.
3. Variance and standard deviation are statistical measures used to quantify the dispersion or variability of a set of data points, such as investment returns or asset prices. They are commonly used to measure risk in finance:
- Variance measures the average squared deviation of each data point from the mean. It calculates the overall spread or dispersion of the data.
- Standard deviation is the square root of the variance and provides a more intuitive measure of risk. It represents the typical or average deviation of data points from the mean.
- In finance, standard deviation is widely used as a measure of investment risk. A higher standard deviation implies greater volatility and uncertainty, indicating higher potential risks associated with an investment.
- Standard deviation helps investors assess the potential range of returns around the expected or average return. Investments with higher standard deviations are considered riskier because their returns are more likely to deviate from the mean.
- By understanding the variance and standard deviation of an investment, investors can evaluate and compare the risk profiles of different assets or portfolios, allowing them to make informed investment decisions based on their risk tolerance and objectives.
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Net Operating Working Capital (NOWC) Using the following balance sheets of Mimi's Gymnastics Inc., what is the net operating working capital (NOWC) for 20207 Mimi's Gymnastics Inc.: Balance Sheets as of December 31 (Millions of dollars) 2020 Assets Cash $ 90 Short-term investments 110 Accounts receivable 1,400 Inventories 600 Total current assets $2,200 Net plant and equipment 2,100 Total assets $4,300 Liabilities and Equity Accounts payable $ 800 Accruals 100 Notes payable 160 Total current liabilities $1,060 Long-term debt 800 Total liabilities $1,860 Common stock 2,100 Retained earnings 340 Total common equity $2,440 Total liabilities and equity $4,300 Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. $ million
The net operating working capital (NOWC) for Mimi's Gymnastics Inc. in 2020 is $1,140 million.
To calculate the NOWC, we subtract the total current liabilities from the total current assets.
Total current assets = Cash + Short-term investments + Accounts receivable + Inventories
Total current assets = $90 + $110 + $1,400 + $600 = $2,200 million
Total current liabilities = Accounts payable + Accruals + Notes payable
Total current liabilities = $800 + $100 + $160 = $1,060 million
Net operating working capital (NOWC) = Total current assets - Total current liabilities
NOWC = $2,200 million - $1,060 million = $1,140 million
Therefore, the net operating working capital (NOWC) for Mimi's Gymnastics Inc. in 2020 is $1,140 million.
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In addition to the manufacturing industry, which industry focuses highly on pension accounting and estimating long-term benefits under union contracts?
a. Retail.
b. Banking and capital markets.
c. Entertainment and media.
d. Technology.
In addition to the manufacturing industry, the industry that focuses highly on pension accounting and estimating long-term benefits under union contracts is b. Banking and capital markets.
The banking and capital markets industry often provides pension plans and benefits to its employees, which require careful accounting and estimation of long-term obligations. Pension accounting involves measuring and reporting the pension liabilities, assets, expenses, and other related information. This includes estimating the future pension benefits employees are entitled to under union contracts and determining the funding status of the pension plans.
Given the nature of the industry and its emphasis on attracting and retaining talented employees, pension plans are a significant aspect of compensation and employee benefits. Therefore, the banking and capital markets industry puts considerable focus on managing and accounting for pension obligations to ensure the financial well-being of current and retired employees.
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An indexed bond has a rate of return that changes with price levels is ranked relative to other bonds in the same risk category is a bond whose return follows a widely published index, like the Dow Jones Industrial Average only pays interest if there are sufficient earnings in the current period to cover the interest expense
An indexed bond is ranked relative to other bonds in the same risk category and has a rate of return that changes with price levels.
It only pays interest if there are sufficient earnings in the current period to cover the interest expense. in simpler terms, an indexed bond is a type of bond that adjusts its rate of return based on changes in price levels. It is ranked based on its risk level compared to other bonds. Additionally, unlike traditional bonds that pay fixed interest regardless of earnings, an indexed bond only pays interest if the issuer has enough earnings to cover the interest expense.
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Joe's coffee shop faces an isocost curve given by c=10l 5k where l is the number of employees and k is the number of coffee machines. if joe's total budget is 100 and he has 5 employees, he can afford:_________
With a total budget of $100 and 5 employees, Joe can afford 10 coffee machines for his coffee shop.
To determine the affordable combination of employees (l) and coffee machines (k) for Joe's coffee shop, we can use the given isocost curve equation: c = 10l + 5k.
Since Joe's total budget is $100, we can set the equation equal to the budget and solve for the affordable values of l and k.
10l + 5k = 100
Substituting the given value of 5 employees (l = 5):
10(5) + 5k = 100
50 + 5k = 100
5k = 100 - 50
5k = 50
k = 50/5
k = 10
Therefore, with a budget of $100 and 5 employees, Joe can afford 10 coffee machines for his coffee shop.
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Gera owns 25,000 shares of Flow Corporation’s common stock, for which she paid $250,000. The other 5,000 shares belong to Gera’s brother, Earl, which he purchased for $50,000. Wanting to expand a few years ago, Flow sold $200,000 in bonds to Earl. The expansion has paid off, andFlow now can afford to redeem 50% of Earl’s bonds. Rather than have the bond redeemed, Earl would prefer to receive 100 shares of preferred stock for the $100,000 in bonds. At the same time, Gera also would like to own preferred stock, so she turns in 5,000 shares of her common stock in exchange for 100 shares of preferred stock and 5,000 shares of her common for a
$100,000 bond. Gera and Earl then each will hold 100 shares of preferred and
$100,000 in bonds. Gera still owns 15,000 shares of common, and Earl owns 5,000 shares of common.The common stock is valued at $20 per share the day before the preferred is issued. The preferred shares are valued at $1,000 each. Once the equity structure of the corporation has been adjusted, the shareholders would like to change the place of incorporation for the business from Michigan to Delaware.
Adjust the equity structure of Flow Corporation and change the place of incorporation from Michigan to Delaware.
1. Redeeming Earl's Bonds:
Flow Corporation can redeem 50% of Earl's bonds, which amounts to $100,000. As an alternative, Earl can receive 100 shares of preferred stock worth $100,000 in exchange for the redeemed bonds.
2. Gera's Exchange of Common Stock for Preferred Stock and Bonds:
Gera wishes to own preferred stock, so she exchanges 5,000 shares of her common stock for 100 shares of preferred stock valued at $1,000 each. Additionally, she exchanges another 5,000 shares of her common stock for a $100,000 bond.
3. Adjusting Common Stock Ownership:
After the transactions, Gera will still own 15,000 shares of common stock, and Earl will own 5,000 shares of common stock.
4. Valuation of Common and Preferred Stock:
The common stock is valued at $20 per share, and the preferred stock is valued at $1,000 per share.
Once these adjustments are made, the equity structure of Flow Corporation will consist of the following:
Gera:
- 15,000 shares of common stock
- 100 shares of preferred stock
- $100,000 bond
Earl:
- 5,000 shares of common stock
- 100 shares of preferred stock
- $100,000 bond
Regarding the change of place of incorporation from Michigan to Delaware, it is necessary to consult legal and regulatory requirements specific to both states. The shareholders should engage legal professionals who are knowledgeable in corporate law to guide them through the process and ensure compliance with the relevant laws and regulations.
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Which frame focuses on the alignment of the organization, and how this alignment maximizes the effectiveness of the organization in its effort to balance internal activities with outside pressures and opportunities?
Human resource frame, structural resource frame, organizational frame or opportunistic frame
The frame that focuses on the alignment of the organization and how this alignment maximizes effectiveness in balancing internal activities with outside pressures and opportunities is the structural resource frame.
The structural resource frame emphasizes the importance of aligning the organization's structure, systems, and resources with its goals and external environment to enhance overall effectiveness and adaptability. It considers how the organization's structure and resource allocation can be optimized to achieve strategic alignment and respond effectively to external challenges and opportunities.
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Each hour that Ray studies will improve has score by 5 percentage points. Ray has decided he is indifferent between a 5 percentage point score increase and 500 points of XP. How should Ray spend his next 4 hours? A) Spend 4 hours studying B) Spend 1 hour playing Valorant and 3 hours studying C) Spend 2 hours playing Valorant and 2 hours studying D) Spend 3 hours playing Valorant and 1 hour studyins 15) Maria is deciding how blg of a house to ouild. She gets decreasing marginal beneits from house size (so, the marsinal benefit of the first souare foot is greater than the margina! benefit of the second square foot and so ool. The bulder charges $100 per sacare foot: Maria decides to build a 1.700 souare foot house. What if ingtead, the builder offered a discount, where the first 1.000 souare feet were half acice (550 per square foot)? How biz of a house would Maria choose to bullo: A) Less than 1,700 square ieet 8) Still 1,700 square feat: C) More than 1,700 square feef 16) According to what we learned in class, the reason that LeBron James shouldn't own and operate a bakery, even if that bakery is profitable, is because- A) His opportunity costs are high because he will have to forego his NBA salary " B) "The fixed costs of opening a new business are too high C) Opening a bakery is a sunk cost 17) in class, we said that to find the opportunity cost of an action, ask yourself A) "One more?" B) "Or what?" C) "How many?" D) "What are the benefits?" 18) The Rational Rule says that, if something is worth colne, keep doing it until A) Marginal benetits are equal to mareinal costs B) Mareinal benefits are greater than marginal costs C) The opportunity cost is zero D) Your willingness to pay is zero Use the following information to answer the next two questions: As of fai 2022, tansing School District is no longer providing school bus services to high school students. Instead, they are providing students with city bus passes and gasaline gift carcs. 5ee fies for more nformation. 19) The school oistrict is concemed that removing 9.5 sersices could affect school attendance. This is an example of the A) Marginal grinciple B) Interdependerce prieciple C) 5 une cost falfacy 0) Suppose the school district finds that high school attendance drops dramatically. They are willing to increase the amount of their gas cards, but doing so is expensive. They are willing to pay any amount as long as it increases attendance, but they don't want to waste money on gas cards if they don't increase attendance. So, they increase the amount of money on the gas cards by a few dollars per week. As long as attendance keeps increasing, they will continue increasing the amount on the gas cards. Once the attendance stops increasiog they will stop increasing the amount. This is an example of the A) Marginal orinciple B) interdependence peinciole c) Ooportunity cost principle
MThe school district is concerned that removing bus services could affect school attendance. This is an example of the interdependence principle.
Interdependence principle means that the welfare of one person depends on the actions of others. In this case, the school district's action of removing bus services could affect the attendance of high school students. So, the school district is concerned about the interdependence of their action and the students' attendance.
20) The school district's strategy of increasing the amount of money on gas cards as long as attendance keeps increasing is an example of the marginal principle.
The marginal principle states that you should keep doing something until the marginal benefit is greater than the marginal cost. In this case, the school district is increasing the amount of money on gas cards until the marginal benefit of increased attendance is greater than the marginal cost of the gas cards. Once the attendance stops increasing, the marginal benefit of the gas cards is no longer greater than the marginal cost, so the school district stops increasing the amount.
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You are guaranteed to receive $40,000 in two years. Instead of spending the money, you are going to invest it in a bank account at 9%. If you take the money and invest it, how many years from todaywill it be worth $175,000. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.21.)
The first step in this problem is to calculate the present value of the $40,000 that we will receive in two years. We do this by discounting the future value of the money by the 9% interest rate. The money will be worth $175,000 17.21 years from today.
Once we have the present value of $40,000, we can use the future value formula to calculate how many years it will take for the money to grow to $175,000. The future value formula is:
FV = PV * (1 + r)ⁿ
where:
FV is the future value
PV is the present value
r is the interest rate
n is the number of years
The present value of $40,000 in two years is:
$40,000 / (1 + 0.09)² = $32,432.43
The future value of $32,432.43 invested at 9% for a period of time n is:
$32,432.43 * (1 + 0.09)ⁿ = $175,000
Solving for n, we get:
T = 17.21 years
In this case, the future value is $175,000, the present value is $32,432.43, and the interest rate is 9%. Solving for n, we get 17.21 years.
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Required information [The following information applies to the questions displayed below.] Calvin reviewed his canceled checks and receipts this year (2022) for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. Note: Leave no answer blank. Enter zero if applicable. c. Calvin's AGI is $114,000.
Calvin's charitable contribution deduction is $25,000, and there is no carryover since the AGI limit is not exceeded.
Calvin's charitable contribution deduction can be calculated based on his adjusted gross income (AGI) and the type of donation. The deduction is subject to certain limitations, such as the percentage of AGI and the type of donation.
To calculate Calvin's charitable contribution deduction, we need to consider the following:
1. AGI Limit: For cash donations, the general AGI limit is 60% of Calvin's AGI. However, for donations of appreciated property, like the antique painting and IBM stock, the limit is 30% of Calvin's AGI.
2. Donation of Cash: If Calvin made any cash donations, he can deduct up to 60% of his AGI. Let's say Calvin donated $10,000 in cash. His deduction for cash donations would be $10,000.
3. Donation of Appreciated Property: If Calvin donated the antique painting and IBM stock, the deduction is limited to 30% of his AGI. To calculate the deduction, we need to determine the fair market value (FMV) of the donated property.
a. Antique Painting: If the FMV of the antique painting is $20,000, Calvin's deduction would be $20,000 * 30% = $6,000.
b. IBM Stock: If the FMV of the IBM stock is $30,000, Calvin's deduction would be $30,000 * 30% = $9,000.
4. Carryover: If Calvin's charitable contributions exceed the AGI limit, he can carry over the excess contribution for up to five years. However, in this case, the AGI limit is not exceeded, so there would be no carryover.
Therefore, Calvin's total charitable contribution deduction would be the sum of the deductions for cash donations, the antique painting, and the IBM stock:
$10,000 (cash donation) + $6,000 (antique painting) + $9,000 (IBM stock) = $25,000.
Thus, Calvin's charitable contribution deduction is $25,000, and there is no carryover since the AGI limit is not exceeded.
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Describe how you participated in a range of activities relating to production, product quality, safety, and housekeeping ON A REGULAR BASIS in your workplace.
By actively participating in these activities, I contributed to enhancing production efficiency, ensuring product quality, promoting safety, and maintaining a clean and organized workplace. These efforts not only benefited the overall operations of the company but also contributed to a positive work environment for all employees.
In my workplace, I actively participated in various activities relating to production, product quality, safety, and housekeeping on a regular basis.
To ensure smooth production, I actively engaged in monitoring and controlling production processes, identifying bottlenecks, and implementing improvements. I also collaborated with cross-functional teams to conduct quality inspections, ensuring that products met the specified standards. In terms of safety, I consistently followed safety protocols, conducted risk assessments, and promoted a safe working environment. Additionally, I played an active role in maintaining cleanliness and organization in the workplace, participating in regular housekeeping activities and encouraging my colleagues to do the same.
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depreciation is expected to be $2.25 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. The federal tax rate is 21% (ignore any possible state corporate taxes). Berndt has no debt. a. Set up an income statement. What is Berndt's expected net income? Its expected net cash flow? Enter your answers in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answers to the nearest dollar. Net income: $ Net cash flow: 5 b. Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? I. If depreciation doubled, taxable income would fall to zero, taxes would be zero, and net cash flow would decline. II. If depreciation doubled, taxable income would not be affected since depreciation and amortization are non-cash expenses. Net cash flow would also be unaffected. III. If depreciation doubled, taxable income would not be affected since depreciation and amortization are non-cash expenses. Net cash flow would double. IV. If depreclation doubled, taxable income would fall to zero, taxes would be zero, and net cash flow would be unaffected. v. If depreciation doubled, taxable income would fall to zero, taxes would be zero, and net cash flow would rise. c. Now suppose that Congress changed the tax law such that, instead of doubling Berndt's depreciation, it was reduced it by 50%. How would profit and net cash flow be affected? I. If depreciation were halved, taxable income and taxes would rise but net cash flow would fall. II. If depreciation were halved, taxable income, taxes, and net cash flow would all rise. III. If depreciation were halved, taxable income and taxes would decline but net cash flow would rise. IV. If depreciation were halved, taxable income, taxes, and net cash flow would all decline. V. If depreciation were halved, taxable income and net cash flow would rise but taxes would fall. d. If this were your company, would you prefer Cangress to cause your depreclation expense to be doubled or halved? Why? I. You should prefer to have lower depreciation charges and therefore higher cash flows. Net cash flows are the funds that are avallable to the owners to withdraw from the firm and, therefore, cash flows should be more important to them than net income. II. You should prefer to have higher depreciation charges and therefore higher net income. Net income represents the funds that are available to the owners to withdraw from the firm and, therefore, net income should be more important to them than net cash flows. 1II. You should prefer to have lower depreciation charges and therefore higher net income. Net income represents the funds that are Tncome and Cath Flow Analysis fiet incomei 3 Miet arh fisw: 1 would hapoen to reportind preft and to ner cash flow? Fow wasit wist te unefictid. fen wove double. woild profic and net cath fow te shected?
a. Net income: $0, Net cash flow: $2,250,000. b. Statement II is correct. c. Statement III is correct. d. You should prefer to have lower depreciation charges and therefore higher net income (Statement I).
a. Income Statement: Sales revenues: $0 (no information given). Costs other than depreciation: $0 (no information given). Depreciation: $2,250,000. Taxable income: $2,250,000 - $2,250,000 = $0 (since no other costs are mentioned). Taxes (21% of taxable income): $0. Net income: $0. Net cash flow: Depreciation + Net income = $2,250,000 + $0 = $2,250,000. b. Statement II is correct. If depreciation expenses doubled but no changes in operations occurred, taxable income would not be affected since depreciation is a non-cash expense. Therefore, taxes and net cash flow would also be unaffected. c. Statement III is correct. If depreciation were halved, taxable income and taxes would decline because of lower depreciation expense. However, net cash flow would rise as there would be a reduction in taxes without a corresponding decrease in cash flows. d. If this were your company, you would prefer Congress to halve your depreciation expense. This is because lower depreciation charges would result in higher net income, which represents the funds available to the owners to withdraw from the firm. Net income is typically more important to owners than net cash flows.
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If a lender makes a simple loan of $500 for 2 years and charges 7%, then the amount that the lender receive at maturity is $ (Round your response to the nearest two decimal place) If a lender makes a simple loan of S2000 for one year and charges $70 interest, then the simple interest rate on that loan is %. (Round your response to the nearest whole number) If a borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, the simple interest on this loan is O A. 6.5% OB. 5.0% c. 6.0% D. 65% How much would you pay for a perpetual bond that pays an annual coupon of S80 per year and yields on competing instruments are 10%? You would pay $(Round your response to the nearest penny) I competing yields are expected to change to 10%, what is the current yield on this same bond assuming that you paid $8007 The current yield is % (Round your response to the nearest integer.) If you sell this bond in exactly one year, having paid $800, and received exactly one coupon payment, what is your total retum il competing yields are 10%? Your total return is %. (Round your response to two decimal places.)
The amount that the lender receives at maturity is $500 (principal) + $70 (interest) = $570, the simple interest on this loan is $6.50, the total return would be $7207. Simple interest is a method of calculating interest on a loan or investment based solely on the initial principal amount. It does not take into account any accumulated interest over time.
The amount that the lender receives at maturity for a simple loan of $500 for 2 years with a 7% interest rate can be calculated using the formula for simple interest: I = P * r * t, where I is the interest, P is the principal amount, r is the interest rate, and t is the time in years. In this case, the principal amount (P) is $500, the interest rate (r) is 7% (or 0.07 as a decimal), and the time (t) is 2 years. Plugging these values into the formula, we get:
I = $500 * 0.07 * 2 = $70
Therefore, the amount that the lender receives at maturity is $500 (principal) + $70 (interest) = $570.
For the second scenario, where a lender makes a simple loan of $2000 for one year and charges $70 in interest, we can calculate the simple interest rate. Using the same formula, rearranged to solve for the interest rate (r):
r = I / (P * t)
Here, the interest (I) is $70, the principal amount (P) is $2000, and the time (t) is 1 year. Plugging in these values, we get:
r = $70 / ($2000 * 1) = 0.035 = 3.5%
Therefore, the simple interest rate on this loan is 3.5%.
To find the simple interest on a loan where the borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, we can use the formula:
I = A - P
Here, A represents the total amount to be repaid, which is $106.50, and P is the principal amount, which is $100. Plugging in these values, we get:
I = $106.50 - $100 = $6.50
Therefore, the simple interest on this loan is $6.50.
The price you would pay for a perpetual bond that pays an annual coupon of $80 per year and yields on competing instruments are 10% can be calculated using the formula for the price of a perpetual bond:
Price = Coupon Payment / Yield
Here, the coupon payment is $80 and the yield is 10% (or 0.10 as a decimal). Plugging in these values, we get:
Price = $80 / 0.10 = $800
Therefore, you would pay $800 for the perpetual bond.
If competing yields are expected to change to 10% and the current yield on the bond is 10%, it means that the bond is trading at par value, which is the same as its coupon rate. Therefore, the current yield on the bond would also be 10%. If you sell the bond in exactly one year, having paid $800 and received exactly one coupon payment, the total return can be calculated by adding the coupon payment and any gain or loss from the sale of the bond. Since the bond is expected to yield 10% and you paid $800, the coupon payment would be $80 (10% of $800).
Total return = Coupon payment + Gain/Loss from bond sale
= $80 + (Sale Price - Purchase Price)
If the bond is sold at a price of $8007, the gain from the sale would be $8007 - $800 = $7207. Plugging in these values, we get:
Total return = $80 + ($7207 - $800) = $7207
Therefore, the total return would be $7207.
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Suppose workers change jobs regularly between two businesses that have no unions. Workers at company A form a union. What does this do to the labor supply and wages of workers at company B? Both labor supply and wages increase. Labor supply increases, and wages decrease. Labor supply decreases, and wages increase. Both labor supply and wages decrease.
When workers frequently change jobs between two businesses that have no unions, the result could be a decreased bargaining power for workers. If workers at company A form a union, they gain more power over their working conditions and wages. As a result, the labor supply and wages of workers at company B could be affected.
Both labor supply and wages increase: It is possible that the wages of workers at company A increase due to collective bargaining power. This could lead to an increase in labor supply at company A as workers from company B might want to work there. This could also lead to an increase in wages at company B as they try to compete with company A to attract workers. Labor supply increases, and wages decrease.
It is also possible that if company A offers higher wages, they could lure away workers from company B, leading to a decrease in labor supply at company B. This decrease in labor supply could drive wages down at company B.Labor supply decreases, and wages increase.
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Intro ABC Corp. has an ROE of 4% and reinvests 40% of its net income. ABC has just paid an annual dividend of $0.28. ABC stock has a beta of 1.5. The risk-free rate is 3.5% and the expected return on the market portfolio is 10%. Part 1 Attempt 1/10 for 10pts. What is the appropriate discount rate? Part 2 □ Attempt 1/10 for 10 pts. What is the expected growth rate of dividends? Part 3 Attempt 1/10 for 10pts. What is the intrinsic value of the stock?
part 1: the appropriate discount rate is 10.5%.
part 2: the expected growth rate of dividends is 3.5%.part 3: the intrinsic value of the stock is $5.12.
part 1: to calculate the appropriate discount rate, we use the capital asset pricing model (capm). the discount rate is given by the risk-free rate plus the product of the stock's beta and the market risk premium. 5 * (10% - 3.5%)) = 10.5%.
part 2: the expected growth rate of dividends can be calculated using the sustainable growth rate formula. the sustainable growth rate is equal to the return on equity (roe) multiplied by the retention ratio (1 - dividend payout ratio). in this case, the retention ratio is 40% (1 - 0.4) and the roe is 4%. thus, the expected growth rate of dividends is 4% * 0.4 = 1.6%.
part 3: the intrinsic value of the stock can be determined using the gordon growth model. the formula is dividend / (discount rate - growth rate). given the dividend of $0.28, the discount rate of 10.5%, and the growth rate of 1.6%, we can calculate the intrinsic value as $0.28 / (0.105 - 0.016) = $5.12.
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The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $2.6 million, and the 2018 balance sheet showed long-term debt of $3.3 million. The 2018 income statement showed an interest expense of $200,000. What was the firm's cash flow to creditors during 2018 ? Multiple Choice $-200,700 $-199,300 $700,000 $700,200 $−500,000
The firm's cash flow to creditors during 2018 was $0.9 million, calculated by adding the change in long-term debt of $0.7 million and the interest expense of $200,000.
The firm's cash flow to creditors during 2018 can be calculated by finding the change in long-term debt and adding the interest expense.
1. Find the change in long-term debt:
The change in long-term debt is calculated by subtracting the long-term debt in 2017 from the long-term debt in 2018.
Change in long-term debt = Long-term debt in 2018 - Long-term debt in 2017
Change in long-term debt = $3.3 million - $2.6 million
Change in long-term debt = $0.7 million
2. Add the interest expense:
The interest expense for 2018 is given as $200,000.
3. Calculate the cash flow to creditors:
Cash flow to creditors = Change in long-term debt + Interest expense
Cash flow to creditors = $0.7 million + $200,000
Cash flow to creditors = $0.9 million
The firm's cash flow to creditors during 2018 was $0.9 million.
The cash flow to creditors represents the net amount of cash paid to creditors by the firm. It includes the change in long-term debt and the interest expense. In this case, the firm had an increase in long-term debt of $0.7 million and an interest expense of $200,000. Therefore, the cash flow to creditors was $0.9 million.
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Suppose that a consumer has utility of the form u(c)=ln(c). Suppose that this consumer gets 2 units of income in the first period and 1 unit in the second period. (a) Derive his intertemporal budget constraint (ITBC), set up the utility maximization problem and derive the Euler equation. Then use the Euler equation and the ITBC to solve for his optimal consumption and saving functions. (b) Suppose also that β=0.5 and 1+r=1. Solve for his consumption and saving each period. (c) Suppose instead that β=0.9 and 1+r=1. Solve for his consumption and saving each period. (d) Based on your answers to b) and c), how do you compare consumption and savings for the two consumers at the end of the first period? How is this related to β ?
Intertemporal Budget Constraint (ITBC)The consumer's intertemporal budget constraint (ITBC) can be derived by adding his or her income over the two periods and then discounting that sum to today's dollars.
ITBC is given by C1 + C2/(1+r) = Y1 + Y2/(1+r), where C1 and C2 are consumption in the first and second periods, Y1 and Y2 are income in the first and second periods, and r is the interest rate.
a) Utility Maximization ProblemThe consumer's utility maximization problem is to maximize his or her utility, u(c) = ln(c1) + βln(c2), subject to his or her ITBC, where β is the discount factor for future utility. Euler Equation: Euler's equation is used to solve the utility maximization problem.
It's given by [tex]u'(c1) = β(1 + r)u'(c2).c1 = (1+r)/2(Y1+(1+r)/2Y2)C2 = (1+r)/2(Y1+(1+r)/2Y2)1/r[1-(Y1+(1+r)Y2)/(1+r)²]β = 0.5[/tex]and 1+r = 1In this scenario, the consumer's consumption and savings each period are calculated as follows:c1 = 1.5, c2 = 0.75, s1 = 0.5, s2 = 0.25.β = 0.9 and 1+r = 1. In this scenario, the consumer's consumption and savings each period are calculated as follows:c1 = 1.8, c2 = 0.2, s1 = 0.2, s2 = 0.8.
b) Comparison of Consumption and Savings: Consumption and savings for the two consumers at the end of the first period are compared. The consumer with β = 0.9 has a higher consumption and a lower saving rate than the consumer with β = 0.5.
This is due to the fact that β is the discount factor for future utility, and the consumer with a higher β places a higher value on future consumption than the consumer with a lower β. The consumer with a higher β is thus willing to consume more now and save less for the future.
c) The two consumers' savings rates, on the other hand, are reversed; the consumer with a higher β saves more in the first period than the consumer with a lower β since the former values future consumption more.
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You and your team are part of the Risk Analysis Division (RAD) in ABX Corporation, an Australian producer and exporter of various grades of coals. Until recently, China was the main importer of ABX’s coals, comprising almost 85% of its businesses (NB: all invoicing to Chinese export was fixed in Chinese yuan requiring no FX risk management strategy). However, as the Chinese market is completely wiped out now, ABX desperately needs to find at least two markets (i.e., countries) to
cover the businesses lost. ABX also needs to relocate the coal processing plants it had in China. All these accompanied by the COVID-19 pandemic, complex geopolitical environment, trade clash, Russia-Ukraine war, and frequent policy changes at the government level that are making it challenging for the MNCs to make firm decisions in regard to FDI and managing foreign exchange risks. Looks like Black swans hit the markets in unison. No financial risk management tool seems to
work. Given this background, the Head of the RAD has recently shortlisted three markets It approaches your division with the company’s dilemma:
2. The Head of the RAD is aware that once ABX moves to different international markets, they will face foreign exchange risk but does not really know what exchange rates are in operation in those countries. Hence, the RAD’s Head asks your team to evaluate at least two FX derivative strategies and recommend the best FX management strategy to manage the unknown FX risks in Brazil
The RAD should consider implementing forward contracts and currency options to manage the unknown FX risks in Brazil. Assessing volatility, cost, risk tolerance, and flexibility will help determine the best strategy. Regular monitoring and review of the chosen strategy are crucial.
Given the uncertainty and complexity of the foreign exchange (FX) market in Brazil, the Risk Analysis Division (RAD) of ABX Corporation should consider implementing the following FX derivative strategies to manage the unknown FX risks:
1. Forward Contracts: ABX can enter into forward contracts with Brazilian real (BRL) as the underlying currency. By locking in the exchange rate at a future date, ABX can mitigate the risk of adverse currency movements.
2. Currency Options: ABX can utilize currency options to hedge against potential FX volatility in Brazil. Purchasing put options on BRL would provide downside protection, allowing ABX to sell BRL at a predetermined exchange rate.
To determine the best FX management strategy, the RAD should consider the following factors:
a) Volatility Analysis: Assess the historical volatility of the BRL exchange rate and the potential impact of geopolitical events on currency movements.
b) Cost Analysis: Evaluate the costs associated with implementing each strategy, including premiums, transaction fees, and any potential margin requirements.
c) Risk Tolerance: Consider the risk appetite of ABX and its ability to withstand potential losses due to FX fluctuations.
d) Flexibility: Determine the flexibility and adaptability of each strategy to accommodate changes in market conditions or business requirements.
By analyzing these factors, the RAD can recommend the most suitable FX management strategy for ABX in Brazil, considering its specific needs, risk profile, and market dynamics. It is crucial to monitor the FX market closely and regularly review the chosen strategy to ensure its effectiveness and adaptability to changing circumstances.
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