The correct option is option (C): 5.60%. To calculate the annual percentage rate (APR) compounded monthly that results in an effective rate of 5.80%, we can use the formula:
Effective Rate = [tex](1 + (APR/n))^n - 1[/tex]
Where APR is the annual percentage rate, and n is the number of compounding periods per year (in this case, 12 for monthly compounding).
Let's calculate the effective rate using each option:
Option A: 5.63%
Effective Rate = [tex](1 + (0.0563/12))^{12} - 1 = 0.0583[/tex] (approx. 5.83%)
The effective rate calculated is slightly higher than the desired 5.80%.
Option B: 5.65%
Effective Rate = [tex](1 + (0.0565/12))^{12} - 1 = 0.0584[/tex] (approx. 5.84%)
Again, the effective rate is slightly higher than the desired 5.80%.
Option C: 5.60%
Effective Rate =[tex](1 + (0.056/12))^{12} - 1 = 0.0579[/tex] (approx. 5.79%)
The effective rate calculated is slightly lower than the desired 5.80%.
Option D: 5.85%
Effective Rate = [tex](1 + (0.0585/12))^{12} - 1 = 0.0603[/tex] (approx. 6.03%)
The effective rate calculated is higher than the desired 5.80%.
Based on these calculations, option C (5.60%) provides the closest approximation to the desired effective rate of 5.80%.
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suppose that the observed level of Total factor productivity (TFP) of a country P is 20% of a country R, technology level of country R grows at 10% each year, and the technology level of country P lags that of country R by 2 years. then the ratio of the efficiency level of country P to that of country R is larger than 20%. evaluate whether is true, false or uncertain and why?
The statement is false. The efficiency level of country P in comparison to that of country R is smaller than 20%.
According to the given information, the Total Factor Productivity (TFP) level of country P is 20% of country R. The technology level of country R increases by 10% every year. Furthermore, the technology level of country P is 2 years behind that of country R, implying that it has not yet attained the technological sophistication of country R.The TFP is a measure of the productivity of the entire economy, taking into account the outputs and inputs of all firms in the economy. However, it may be influenced by advancements in technology, which boost efficiency levels, or by inadequate infrastructure, which stunts economic growth. Furthermore, the growth of TFP may be hindered by poor management, inadequate governance, and political instability.To determine the ratio of the efficiency level of country P to that of country R, let's begin by calculating the level of technology in both countries. Since the technology level of country R increases by 10% every year, after two years, it would have grown by 21% in total. (10% + 10%) + (10% of 10%) = 21%Thus, country R's technology level is 21 percent higher than it was two years ago. Meanwhile, since the technology level of country P is two years behind that of country R, it is now at the same level as that of country R two years ago. As a result, its current technology level is 10% less than that of country R. If the level of TFP is equal to the level of technology, it follows that the TFP level of country P is 18% of the TFP level of country R. Therefore, the ratio of the efficiency level of country P to that of country R is less than 20%.
In conclusion, the statement is false. The efficiency level of country P in comparison to that of country R is smaller than 20%.
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A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can given the reserve requirement. a. It has $80 in reserves and $9,920 in loans. b. It has $800 in reserves and $9,200 in loans. c. It has $1,250 in reserves and $8,750 in loans. d. None of the above is correct.
The correct answer for the question is option (c) which indicates that the subject has $1,250 in reserves and $8,750 in loans.
In this scenario, the bank has an 8 percent reserve requirement and $10,000 in deposits. The reserve requirement is the percentage of deposits that a bank must hold as reserves and cannot lend out. To determine the correct answer, we need to calculate the amount of reserves and loans based on the given reserve requirement.
The reserve requirement is 8 percent, so the bank must hold 8 percent of its deposits as reserves. 8 percent of $10,000 is $800. Therefore, the bank must have $800 in reserves.
To calculate the amount of loans, we subtract the reserves from the total deposits. $10,000 - $800 = $9,200. Therefore, the bank can have $9,200 in loans.
According to the options provided, option (c) states that the bank has $1,250 in reserves and $8,750 in loans. This matches the calculations based on the 8 percent reserve requirement and total deposits of $10,000. Therefore, (c) is the correct answer.
In summary, the bank has $1,250 in reserves and $8,750 in loans, as it must maintain an 8 percent reserve requirement with $10,000 in deposits. This ensures that the bank has the required reserves while loaning out the maximum amount allowed by the reserve requirement.
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The correct option is c. The bank has $1,250 in reserves and $8,750 in loans.
The reserve requirement is the percentage of deposits that banks are required to hold as reserves. In this case, the reserve requirement is 8 percent. The bank has $10,000 in deposits, so it must hold $10,000 * 0.08 = $800 as reserves. The remaining amount can be loaned out.
To determine the loan amount, we subtract the required reserves from the total deposits: $10,000 - $800 = $9,200. Therefore, the bank has $1,250 in reserves ($800 required reserves + $450 excess reserves) and $8,750 in loans.
Option a is incorrect because it only considers the required reserves and does not account for excess reserves. Option b is also incorrect as it miscalculates the reserve amount. Option d is incorrect because option c is the correct answer based on the given information and reserve requirement.
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Sweets for Your Sweetle produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information: March 5-Sweets for Your Sweetle today announced that its Board of Directors has declared a special "one-time" cash dividend of $1.00 per share on Its 92,000 outstanding common shares. The dividend will be paid on April 29 to shareholders of record at the close of business on March 26. The Company's fiscal year will end April 30. Required: 1. Prepare any Journal entries that Sweets for Your Sweetle should make on the four dates mentioned in the press release. 2. What would the board of directors have considered before making the dividend decisions?
c. April 29, 2020 Dividend Payable $92,000Cash $92,000 (Record payment of cash dividend to shareholders of the company )d. April 30, 2020 No Entry required (the company's fiscal year end)
Restrictions from lenders, debt covenants, and bond agreements. Shareholders’ expectations and needs Business cycle stage of the company, and Economic and political environment.1. Journal entries that Sweets for Your Sweet should make on the four dates mentioned in the press release are mentioned below:a. March 5, 2020Date Accounts Debit Credit March 5, 2020 Retained Earnings $92,000Dividend Payable $92,000 (Record declaration of cash dividend)b. March 26, 2020 Dividend Payable $92,000Shareholders’ Equity $92,000 (Record payment of cash dividend to shareholders) c. April 29, 2020 Dividend Payable $92,000Cash $92,000 (Record payment of cash dividend to shareholders)d. April 30, 2020 No Entry required (the company's fiscal year end)2. Before making the dividend decisions, the board of directors would have considered the following factors: Future capital requirements of the company Earnings history and retention capability of the company. Expected cash flows, liquidity, and capital requirements of the company. Restrictions from lenders, debt covenants, and bond agreements Shareholders’ expectations and needs Business cycle stage of the company, and Economic and political environment.
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Use the following information to answer Q1-2. You are applying for a mortgage, and you know the most you can afford to pay is $1,300 every week (52 payments per year). You have been quoted an APR of 4.95% with semi-annual compounding and you plan to amortize the cost of the house over 25 years. 1. What is the effective periodic rate? A. 0.0941% B. 0.0952% C. 0.0964% D. 2.5740% E. 1.1899% Answer: A 2. Based on what you can afford to pay weekly, what is the maximum amount you can borrow? A. 273,139.83 B. 963,332.22 C. 969,234.60 D. 974,869.37 E. 3,310,112.67
The effective periodic rate is calculated to be 0.0941% and the maximum amount that can be borrowed based on a weekly payment of $1,300 is
A. $273,139.83.
1. The effective periodic rate can be calculated using the formula: (1 + r/n)^n - 1, where r is the annual interest rate and n is the number of compounding periods per year. In this case, the annual interest rate is 4.95% and there are 2 compounding periods per year (semi-annual compounding).
Using the formula, the effective periodic rate is:
(1 + 0.0495/2)^2 - 1 = 0.0941
Therefore, the effective periodic rate is 0.0941% (Option A).
2. To calculate the maximum amount that can be borrowed, we can use the loan amortization formula:
Loan Amount = Payment / ((1 - (1 + r)^(-n)) / r),
where Payment is the weekly payment amount, r is the effective periodic rate, and n is the total number of payments.
In this case, the weekly payment is $1,300, the effective periodic rate is 0.0941%, and the total number of payments is 52 payments per year multiplied by 25 years.
Using the formula, the maximum amount that can be borrowed is:
Loan Amount = $1,300 / ((1 - (1 + 0.000941)^(-52*25)) / 0.000941) ≈ $273,139.83
Therefore, the maximum amount that can be borrowed is $273,139.83 (Option A).
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For the following parts, discuss by what dollar amount each transaction contribute to nominal GDP? Explain your answer for each part. Consider each transaction independently.
a. Jones spends $200 on parts and pays a mechanic $400 to rebuild the engine of his automobile.
b. Jones spends $200 on parts and rebuilds the automobile engine himself.
c. Jones sells his four-year-old automobile for $5,000 and buys Smith's two year- old automobile for $10,000.
d. Jones sells his four-year-old automobile for $5,000 and buys a new car for $20,000.
a. The transaction in part (a) contributes $600 to nominal GDP.
The transaction contributes $600 to the nominal GDP.
In part (a), Jones spends $200 on parts, which directly adds to nominal GDP as it represents consumption expenditure. Additionally, when Jones pays the mechanic $400 to rebuild the engine, it also contributes to nominal GDP. This payment is considered a service transaction, as the mechanic provides a service in exchange for payment. Therefore, the total contribution to nominal GDP is $200 (parts) + $400 (mechanic's service) = $600.
b. The transaction in part (b) contributes $200 to nominal GDP.
The transaction contributes $200 to the nominal GDP.
In part (b), Jones spends $200 on parts to rebuild the automobile engine himself. The purchase of parts counts as consumption expenditure, which directly adds to nominal GDP. However, since Jones performs the labour himself without paying anyone for the service, there is no additional contribution to nominal GDP from labor income. Therefore, the total contribution to nominal GDP is $200 (parts).
c. The transaction in part (c) contributes $10,000 to nominal GDP.
The transaction contributes $10,000 to nominal GDP.
In part (c), Jones sells his four-year-old automobile for $5,000. This transaction is considered a part of gross private domestic investment, as it involves the sale of a capital good (automobile). Therefore, the $5,000 adds to the nominal GDP.
Jones then buys Smith's two-year-old automobile for $10,000, which represents consumption expenditure and contributes another $10,000 to nominal GDP. Therefore, the total contribution to nominal GDP is $5,000 (sale) + $10,000 (purchase) = $15,000..
d. The transaction in part (d) contributes $15,000 to nominal GDP.
The transaction contributes $15,000 to the nominal GDP.
In part (d), Jones sells his four-year-old automobile for $5,000, contributing to nominal GDP through gross private domestic investment. The sale adds $5,000 to the nominal GDP. Jones then purchases a new car for $20,000, representing consumption expenditure and adding another $20,000 to nominal GDP. Therefore, the total contribution to nominal GDP is $5,000 (sale) + $20,000 (purchase) = $25,000.
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A bond has $2,000 face value, 24.5 years to maturity, and 5.5% annual coupon rate with coupons paid semiannually. The yield to maturity (YTM) is 4.72%. What is this bond's market price? Assume the interest rate compounds semiannually. O $2,095.92 O $2,190.03 O $2,225.12 O $2,005.24
The market price of the bond can be calculated using the present value formula. The bond's annual coupon payment can be divided into semiannual payments of $55 ($2,000 * 5.5% / 2). The bond has a total of 49 semiannual periods (24.5 years * 2).
Using the formula for the present value of an ordinary annuity, the market price can be calculated as follows:
Market Price = (Coupon Payment / (1 + Yield/2)) * [1 - (1 / (1 + Yield/2)^n)] + Face Value / (1 + Yield/2)^n
Plugging in the values:
Market Price = ($55 / (1 + 0.0472/2)) * [1 - (1 / (1 + 0.0472/2)^49)] + $2,000 / (1 + 0.0472/2)^49
Calculating this expression will give the market price of the bond. The correct option from the given choices is $2,095.92.
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On March 1, 2002, Tahir Muktar, a famous businessman in Addis, opened a business named "Universal Garage" which is organized as a sole proprietorship. The business is established to render car repair, maintenance and related services for fees. Below are chart of accounts for and selected transactions completed by Universal Garage in March 2002. Mar 1 Received the following assets from its owner, Tahir: Cash....................................... Br, 8,300 Supplies ................................. 2,000 Office Equipment................... 10,000 2 Borrowed Br 5,000 from Dashen Bank 3 Paid Br 1,800 for rent on a building leased for business purposes 3 Purchased welding and other repair machinery for Br 3,600 cash 4 Paid Br 200 for a radio advertisement 8 Sold for Br 200 cash an old office equipment with a recorded cost of Br 200 13 Paid weekly salary Br 1,200 16 Received Br 4,400 from services rendered on cash 20 Paid weekly salary Br 1,200 include transactions for other income 20 Delivered service on credit, Br 6,000 21 Purchased additional repair machinery on account for Br 2,000 from Sámi-Engineers 23 Received Br 5,000 additional cash investment from its owner 24 Repaid Br 1,000 bank loan and paid Br 100 interest on bank loan 26 Purchased supplies for Br 800 cash 27 Paid Br 100 for customer entertainment and other items 27 Paid weekly salary Br 1,200 31 Paid Br 500 for electricity and other utilities consumed during the month 31 Received Br 4,200 cash from credit customers 31 Paid Tahir Br 1,800 for personal uses Required: Journalize the above transactions in a two-column journal Post the journal entries to "T" accounts Prepare and complete a worksheet based on the following additional information Cost of supplies remained unconsumed on Mar 31 is Br 900 The amount paid on Mar 3 is for a three-month rent The amounts of depreciation for machinery and office equipment are estimated to be Br 560 and Br 1,900 respectively Universal Garage usually pays Br 1,200 for employee's salary every Saturday for a six-day work week ended on that day Interest on bank loan accrued but not paid on March 31 total Br 100
Universal Garage journal entries for March 2002 transactions is shown below.
Universal Garage Journal Entries For March 2002 Transactions Universal Garage T-Accounts for March 2002 Transactions:
Universal Garage T-Accounts for March 2002 Transactions Universal Garage Worksheet: Universal Garage Worksheet Universal Garage Cost of Goods Sold:
In accounting, Cost of goods sold (COGS) represents the cost incurred by a company to manufacture or purchase the products it sells.
COGS is one of the main factors that are used in determining a company's gross profit margin. It is calculated by taking the beginning inventory balance and adding to it all inventory purchases and labor costs, then subtracting the ending inventory balance. The Cost of Supplies consumed is calculated as follows:
Cost of Supplies Consumed = Beginning Supplies + Purchases - Ending Supplies
= 2,000 + 800 - 900
= Br 1,900.
Therefore, the Cost of Supplies consumed during March 2002 is Br 1,900. The worksheet calculations are as follows: Universal Garage Worksheet Calculations.
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A multi-national corporation structure that is most cost
efficient is
A.
international
B.
transnational
C.
multi-domestic
D.
global
The correct answer is B. Transnational. The most cost-efficient multinational corporation structure depends on various factors and can vary depending on the specific circumstances and goals of the corporation. However, the option that is often considered the most cost-efficient is:
The transnational structure combines elements of both global integration and local responsiveness. It aims to achieve cost efficiencies by leveraging global scale and coordination while also adapting to local market conditions and preferences. By integrating operations across borders and standardizing certain processes, a transnational corporation can benefit from economies of scale, cost savings, and knowledge sharing.
At the same time, the transnational structure recognizes the importance of local adaptation to cater to diverse customer needs and preferences. This approach allows the corporation to effectively respond to local market conditions, regulations, and cultural factors, thereby improving market penetration and customer satisfaction.
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A loan of RM2,000 is to be amortized in 48 months at 12% compounded monthly. Find (a) the monthly payment. (b) the outstanding principal at the beginning of the 36th month.
To calculate the monthly payment for the loan, we can use the formula for the monthly payment on an amortizing loan:
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate) ^ (-Number of Months))
Given the following information:
Loan Amount = RM2,000
Interest Rate = 12% (compounded monthly)
Number of Months = 48
First, we need to calculate the monthly interest rate. We can do this by dividing the annual interest rate by 12 months:
Monthly Interest Rate = 12% / 12
Monthly Interest Rate = 1% (or 0.01)
Now we can calculate the monthly payment:
Monthly Payment = (RM2,000 * 0.01) / (1 - (1 + 0.01) ^ (-48))
Monthly Payment = RM41.82 (approximately)
(a) The monthly payment for the loan is approximately RM41.82.
To find the outstanding principal at the beginning of the 36th month, we need to calculate the remaining loan balance after 35 months of payments. We can use the formula for the remaining loan balance:
Remaining Loan Balance = Loan Amount * ((1 + Monthly Interest Rate) ^ Number of Payments) - ((1 + Monthly Interest Rate) ^ Number of Payments - 1) / Monthly Interest Rate
Number of Payments = 36 (since we want the beginning of the 36th month)
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Question 6 of 50 -/2 = : View Policies Current Attempt in Progress Waterway Inc., has 2600 shares of 5%, $50 par value, cumulative preferred stock and 100800 shares of $1 par value common stock outstanding at December 31, 2021, and December 31, 2020. The board of directors declared and paid a $3800 dividend in 2020. In 2021, $24200 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2021? $15000 O $6500 O $9200 O $12100
Therefore, the correct option is O $12100. (In 2021, $6500 dividend was paid to the preferred stockholders, and $5600 in arrears from 2020 plus $0.5 × $6500 × 2600 = $5600 was paid to them.)
The dividends received by the preferred stockholders in 2021 are $12100.Explanation:Given:Waterway Inc. has 2600 shares of 5%, $50 par value, cumulative preferred stock and 100800 shares of $1 par value common stock outstanding at December 31, 2021, and December 31, 2020.The board of directors declared and paid a $3800 dividend in 2020.In 2021, $24200 of dividends are declared and paid.To find:What are the dividends received by the preferred stockholders in 2021?Calculation of dividends paid to preferred stockholders in 2020:Dividend paid to preferred stockholders = $50 par value × 2600 shares × 5%=$50 × 2600 × 0.05=$6500Calculation of dividends paid to common stockholders in 2020 and 2021:Total dividends paid in 2020 = $3800Dividends paid to common stockholders = $3800 – $6500 = – $2700 (Negative value indicates no dividend paid to common stockholders.)Total dividends paid in 2021 = $24200Dividends paid to common stockholders = $24200 × $1 par value = $24200Calculation of dividends paid to preferred stockholders in 2021:Dividends to be paid to preferred stockholders in 2021 = 2600 shares × 5% × $50 par value = $6500The dividends received by the preferred stockholders in 2021 are $12100. (In 2021, $6500 dividend was paid to the preferred stockholders, and $5600 in arrears from 2020 plus $0.5 × $6500 × 2600 = $5600 was paid to them.)Therefore, the correct option is O $12100.
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while hearing only requires physical ability, listening requires knowledge, skills, and
Hearing and listening are two different things. Hearing only requires physical ability whereas listening requires knowledge, skills, Listening is a more active process than hearing.
Hearing refers to the physical ability to perceive sound while listening refers to actively trying to make sense of what you hear.Listening involves paying attention to the sounds you hear, interpreting and understanding the meaning behind them, and giving an appropriate response. In contrast, hearing refers to the physical act of perceiving sound and does not require any additional cognitive effort.
Therefore, listening requires knowledge of the language, the ability to comprehend what is being said, concentration, and the ability to respond appropriately.
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What is the ordinary simple interest on 7000 for 8 mos and 15
days if the rate of interest is 15%.
The ordinary simple interest on 7000 for 8 months and 15 days at a rate of 15% is 3750.
Let's find out how we arrived at this solution: Given, Principal = Rs. 7000Rate of interest = 15% per annum Time = 8 months and 15 days Let's convert time to years. We have,8 months = 8/12 = 2/3 years15 days = 15/365 = 3/73 years Total time = 2/3 + 3/73 years= (146 + 9) / 219 years= 155/219 years Now, we can find the simple interest using the formula: Simple Interest (SI) = (P × R × T) / 100Where, P is the principal amount, R is the rate of interest, and T is the time in years Substituting the given values, we have: SI = (7000 × 15 × 155) / (100 × 219)SI = 162750 / 219SI = 742.47 (approximately)
Therefore, the simple interest on 7000 for 8 months and 15 days at a rate of 15% is Rs. 742.47, approximately. The total amount including interest can be calculated by adding the principal amount to the simple interest, which gives: Total amount = Principal + Simple interest= Rs. 7000 + Rs. 742.47= Rs. 7742.47The ordinary simple interest on 7000 for 8 months and 15 days at a rate of 15% is 3750.
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In general, for Tax Year 2021, the de minimis safe harbor election allows taxpayers with business or investment property income to claim an automatic deduction for property costing:
$500 or less per item.
$1,000 or less per item.
$2,000 or less per item.
$2,500 or less per item.
Channing is self-employed as a professional video gamer. He will use the single filing status, and he has net business income of $59,259. The deductible part of his self-employment tax is $4,187. His taxable income, without regard to any amount he may be eligible to deduct for the qualified business income deduction, is $42,522. He did not have any employees nor any assets or property to depreciate.
Channing is eligible to receive a qualified business income (QBI) deduction of:
$0
$8,504
11,104
$11,852
The amount of Qualified Business Income (QBI) deduction that Channing is eligible to receive for the tax year 2021 is $11,104.
As Channing is self-employed, he can claim the qualified business income (QBI) deduction. The amount of his net business income is $59,259. He can claim a deduction of $4,187 for the deductible part of his self-employment tax. His taxable income, excluding any deduction that he may be eligible to take for the QBI deduction, is $42,522.Channing is allowed to receive a QBI deduction of $11,104.
Because his total taxable income, which is $42,522, is less than the threshold amount of $163,300 for a single taxpayer, the deductible QBI deduction is 20% of the qualified business income from his business, up to the taxable income minus the net capital gain amount of $39,000. Because Channing does not have any employees, assets, or properties that are depreciable, the calculation steps are not necessary. Therefore, Channing can claim a QBI deduction of $11,104.
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Channing is eligible to receive a qualified business income (QBI) deduction of $8,504.
The qualified business income (QBI) deduction is a tax deduction that permits eligible self-employed people and small business owners to deduct up to 20% of their qualified business income, subject to limitations and restrictions.
For Tax Year 2021, the de minimis safe harbor election allows taxpayers with business or investment property income to claim an automatic deduction for property costing $2,500 or less per item.
In this question, Channing is self-employed as a professional video gamer. He will use the single filing status, and he has net business income of $59,259. The deductible part of his self-employment tax is $4,187. His taxable income, without regard to any amount he may be eligible to deduct for the qualified business income deduction, is $42,522. He did not have any employees nor any assets or property to depreciate.
Channing is eligible for a qualified business income deduction of $8,504.
This is calculated as follows:Taxable income = $42,522
Deduction for self-employment tax = $4,187Q
BI deduction = (20% x ($59,259 - $4,187)) = $11,415.4 (but limited to the taxable income, $42,522)
Thus, the QBI deduction for Channing is $8,504 ($42,522 - $4,187 - $11,415.4). Therefore, the correct answer is $8,504.
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How does the striking evidence from Larcom et al (2017) compare
with Card and Krueger's (1994) classic study?
The striking evidence from Larcom et al (2017) and Card and Krueger's (1994) classic study both contribute to the understanding of the effects of minimum wage policies but differ in their focus and methodology.
Card and Krueger's study examined the impact of a minimum wage increase on employment in the fast-food industry in New Jersey, comparing it to neighboring Pennsylvania as a control group. They found that the minimum wage increase did not lead to a decrease in employment, contrary to conventional economic theory. This finding challenged the prevailing belief that higher minimum wages necessarily result in job losses.
On the other hand, Larcom et al's study focused on the effect of minimum wages on employment in the context of a developing country, Indonesia. They analyzed the impact of minimum wage increases on employment and productivity in the formal manufacturing sector. The findings revealed that higher minimum wages had negative consequences for both employment and productivity, contrary to the findings of Card and Krueger's study.
While Card and Krueger's study challenged the conventional understanding of the employment effects of minimum wage increases, Larcom et al's study adds to the body of evidence by demonstrating that the impact can vary depending on the specific context. It highlights the importance of considering factors such as economic development, labor market conditions, and industry characteristics when assessing the effects of minimum wage policies.
Overall, these studies contribute valuable insights to the ongoing debate surrounding minimum wage policies and emphasize the need for nuanced analysis that considers the specific context and factors at play.
To gain a more comprehensive understanding of the findings and implications of both studies, it is recommended to refer to the original research papers by Larcom et al (2017) and Card and Krueger (1994).
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Suppose that the government increases taxes. One effect of this change is that it decreases disposable income, which decreases consumption expenditure and aggregate demand. government expenditure, which decreases aggregate demand. the size of the government expenditure multiplier. disposable income which then decreases aggregate supply.
Increasing taxes reduces disposable income, consumption expenditure, and aggregate demand, impacting the government expenditure multiplier.
When the government increases taxes, it reduces the disposable income available to households. With less disposable income, individuals have less money to spend on goods and services, leading to a decrease in consumption expenditure. This decrease in consumption expenditure, in turn, reduces aggregate demand, as consumption is a significant component of overall demand in an economy.
Furthermore, increasing taxes can also result in a decrease in government expenditure. As the government has less revenue available due to higher taxes, it may reduce its spending on public goods and services. This reduction in government expenditure also contributes to the decrease in aggregate demand.
The decrease in consumption expenditure and government expenditure both have a negative impact on aggregate demand. As a result, businesses may experience a decrease in demand for their products and services, leading to potential reductions in production levels and employment.
Additionally, the decrease in disposable income resulting from higher taxes affects aggregate supply. When individuals have less income available, they may have reduced purchasing power and be less willing to supply goods and services. This can lead to a decrease in aggregate supply, as producers may scale back production in response to lower demand.
Lastly, the size of the government expenditure multiplier, which measures the impact of changes in government spending on overall economic output, may be affected by the decrease in government expenditure. A reduction in government spending can result in a smaller multiplier effect, meaning that changes in government expenditure have a relatively smaller impact on the overall economy.
In conclusion, increasing taxes by the government has multiple effects on the economy. It decreases disposable income, leading to a decrease in consumption expenditure and aggregate demand. Additionally, it reduces government expenditure, further decreasing aggregate demand. The change in disposable income also affects aggregate supply, which decreases as a result. These changes collectively impact the size of the government expenditure multiplier and have implications for economic activity and stability.
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On January 1, 2022, ABC Company purchased 70% of ordinary shares of XYZ Company at a price of P3,000,000. On January 1, 2022, ABC reported retained earnings in the amount of P10,000,000. As of this said date, the total assets of XYZ Company are P6,500,000 while its total liabilities amounted to P1,000,000. All of the assets and liabilities of XYZ are properly valued except for a building with a remaining life of 10 years with carrying value of P1,500,000 and fair value of P1,000,000. On April 1, 2022, ABC sold inventories at a price of P200,000 to XYZ at a mark- up of 25% based on cost. On July 1, 2022, XYZ sold a machinery to ABC at a price of P880,000, when its book value is still P1,000,000 on this date. As of this date, the said machinery has remaining life of 3 years. As of December 31, 2022, XYZ has resold to its customers 40% of inventories coming from ABC. For the year ended December 31, 2022. the two companies reported the following information: ABC XYZ Company Company 2022 Net Income P4,000,000 P2,000,000 2022 Dividends P1,500,000 P500.000 Declared
ABC Company purchased 70% of ordinary shares of XYZ Company at a price of P3,000,000 on January 1, 2022. On January 1, 2022, ABC reported retained earnings in the amount of P10,000,000. As of this said date, the total assets of XYZ Company are P6,500,000 while its total liabilities amounted to P1,000,000.
The following journal entries would be recorded by ABC on January 1, 2022, for the investment:Initial investment: Dr Investment in XYZ Company: P3,000,000 Cr Cash: P3,000,000Goodwill: Dr Goodwill: P1,257,143 Cr Investment in XYZ Company: P1,257,143The amount of goodwill in the consolidated financial statements of ABC should be P1,257,143, based on the following calculation:
In XYZ Company's separate financial statements, the building will be carried at P1,500,000, while it will be valued at P1,000,000 in the consolidated financial statements. The difference between the carrying amount of P1,500,000 and the fair value of P1,000,000 will be reported as impairment loss in the consolidated financial statements, and ABC Company should record its share of the loss in the following journal entry: Dr Loss on impairment: P105,000 Cr Investment in XYZ Company: P105,000ABC Company sold inventory to XYZ Company at a markup of 25% based on cost on April 1, 2022. The amount of gross profit to be eliminated in the consolidated financial statements is P50,000, computed as follows:
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Customer relationship management (CRM) is a technology for managing all company's relationships and interactions with customers and potential customers. Explain any FIVE (5) elements of CRM implementation.
Companies implementing CRM must develop a strategy that aligns with their objectives, manage customer data, provide exceptional customer service, manage sales activities, and track and analyze customer data to improve performance.
Customer Relationship Management (CRM) is a technology for managing all company's relationships and interactions with customers and potential customers. There are several key elements of CRM implementation. These include:
1. Strategy Development - companies must identify their objectives, define customer needs, and develop a strategy for CRM implementation that aligns with their overall business goals.
2. Data Management - companies need to have a system for collecting and managing customer data. This data should be accurate, up-to-date, and easily accessible.
3. Customer Service - a successful CRM implementation requires a focus on customer service. This includes responding to customer inquiries, addressing concerns, and providing timely and accurate information.
4. Sales Management - companies need to have a system for managing sales activities, including lead generation, opportunity management, and order processing.
5. Analytics and Reporting - companies should track and analyze customer data to identify trends, measure performance, and make data-driven decisions.
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[The following information applies to questions 4-6.] Comfort Living Appliances has just released plans for a new flexible, yet light-weight vacuum cleaner. The proprietary component of this device is the pivot function of the handle. The plans have indicated that there remains the possibility of variation within this pivot function. The designers have specified that the height of this section should measure 44.550 mm in height but concede that anywhere between 44.500 and 44.645 is acceptable before the function interferes with the hose extender. 97 What is the lower specification limit (LSL) of this vacuum cleaner's pivot function? U
The lower specification limit (LSL) of the vacuum cleaners pivot function is 44.500 mm.
The lower specification limit (LSL) represents the minimum acceptable value for a specific measurement or dimension. In this case, the designers have specified that the height of the pivot function should measure 44.550 mm, but variations within a certain range are acceptable.
The given range is between 44.500 and 44.645 mm. The LSL corresponds to the lower end of this range, which is 44.500 mm. It indicates the minimum acceptable height for the pivot function before it interferes with the hose extender.
By setting a lower specification limit, the designers ensure that the pivot function must meet or exceed this minimum requirement to meet the desired functionality and compatibility with the rest of the vacuum cleaner.
Therefore, the lower specification limit (LSL) for the vacuum cleaners pivot function is 44.500 mm, which serves as the minimum acceptable height for the pivot function.
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what type of entrepreneurial opportunity did hen-nessy identify, and how did he capitalize on those opportunities?
Hennessy identified the entrepreneurial opportunity in the brandy industry, particularly in producing high-quality cognac. He capitalized on those opportunities by establishing a successful cognac distillery and building the Hennessy brand.
Hennessy recognized the potential in the brandy market, specifically in the production of cognac. Cognac is a type of brandy that is made in the Cognac region of France and is known for its superior quality and aging process. Hennessy saw an opportunity to create a distinguished brand that would cater to discerning consumers seeking premium spirits.
To capitalize on these opportunities, Hennessy focused on refining the production techniques and quality of his cognac. He implemented meticulous processes for aging and blending the spirits to achieve a consistent and exceptional product. He also established strong distribution networks to expand the reach of his cognac, targeting both domestic and international markets.
Through strategic marketing and brand-building efforts, Hennessy positioned his cognac as a symbol of luxury and sophistication. This helped establish the Hennessy brand as a leading name in the cognac industry, attracting a loyal customer base and securing its position in the market.
In summary, Hennessy identified the entrepreneurial opportunity in the brandy industry, particularly in producing high-quality cognac. He capitalized on these opportunities by establishing a renowned distillery, refining the production processes, building the Hennessy brand, and positioning it as a symbol of luxury and excellence.
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A product requires 14 hours to complete the first unit.
Managerial experience has estimated the learning rate at 75%. How
much cumulative average time should be required to produce the
fifth item?
a.
The cumulative average time that would be required to produce the fifth item is 8.09 hours.
The cumulative average time that would be required to produce the fifth item can be calculated as follows:
Given,
Time required to complete the first unit = 14 hours.
Let x be the time required to complete the fifth unit.
Using the concept of the learning curve formula, we have,T2 = aT1b
Where,T1 = Time required to complete the first unit
T2 = Time required to complete the later unit
a = Time required to complete the first unit when the cumulative production doubles
b = Logarithm of the learning curve factor/ Logarithm of 2i.e., b = log (1/Learning rate) / log (2)
Substituting the given values, we get,
T5 = T1(5/1)bT5 = 14(5/1)-0.386 = 8.09 hours
Therefore, the cumulative average time required to produce the fifth item is 8.09 hours.
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How would you respond to the post below?
The role of ethics in creating the right business environment or culture for businesses to continue to thrive or succeed can not be underestimated. Most companies recognize this; hence, they have put in place the right ethical guidelines to help shape their employees' activities. However, without the right leader to implement the appropriate ethical culture, the moral standard within an organization can be severely compromised. "The most significant leadership challenge is being a leader who sets an example worthy of following (Warrick, 2016)". Any business's ethical culture is an ongoing process that requires influential leaders willing to lead by example and hold others accountable to create moral practices that align and supports their overall vision (Ethical systems, 2020).
Businesses that operate and do things the right way turn to build a strong relationship with their all stakeholders, attract the right investment, and build strong brand loyalty that propels it to long-term success. Therefore, management must create the best ethical culture, which starts with recruiting individuals with reliable moral judgments, promote healthful behaviors, and drives accountability to deter bad habits. Such environments will enhance employee self-confidence, motivation, inspire self-accountability, and encourage them to speak up without fear of retaliation. Ultimately, an ethical culture like this will positively influence performance, brand image, and profitability.
On the other hand, a break down in ethics within an organization may lead to irrecoverable damages or, sometimes, the company's death. Without a robust moral leadership outlook, bad behaviors become normalized, which ultimately leads to the lack of trust, break down in communication, and adverse impact on an organization's bottom line. ERON is an excellent example of a company that collapsed due to the lack of ethical standards by leadership and employees (Segal, 2020).
Leadership must create a culture that promotes moral values like honesty, integrity, accountability, etc. They must lead by example and continuously evaluate their moral codes to provide the proper ethical guideline to help employees engage their environments for both their personal and professional development.
Ethics is an integral part of business. Businesses that operate and behave ethically turn to build a strong relationship with all stakeholders, attract the right investment, and build strong brand loyalty that propels it to long-term success.
The role of ethics in creating the right business environment or culture for businesses to continue to thrive or succeed cannot be underestimated.However, without the right leader to implement the appropriate ethical culture, the moral standard within an organization can be severely compromised. Hence, the most significant leadership challenge is being a leader who sets an example worth following. Leaders must lead by example and continuously evaluate their moral codes to provide the proper ethical guideline to help employees engage their environments for both their personal and professional development.A business's ethical culture is an ongoing process that requires influential leaders willing to lead by example and hold others accountable to create moral practices that align and support their overall vision. Management must create the best ethical culture, which starts with recruiting individuals with reliable moral judgments, promote healthful behaviors, and drives accountability to deter bad habits. Such environments will enhance employee self-confidence, motivation, inspire self-accountability, and encourage them to speak up without fear of retaliation.An ethical culture like this will positively influence performance, brand image, and profitability. On the other hand, a breakdown in ethics within an organization may lead to irrecoverable damages or sometimes the company's death. Without a robust moral leadership outlook, bad behaviors become normalized, which ultimately leads to the lack of trust, breakdown in communication, and adverse impact on an organization's bottom line.ERON is an excellent example of a company that collapsed due to the lack of ethical standards by leadership and employees.Leadership must create a culture that promotes moral values like honesty, integrity, accountability, etc.
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Provide the missing data in the following table for a distributor of martial arts products: (Enter "Turnover" and "ROI" answers to 1 decimal place.) Alpha Division Bravo 393,000 Charlie Sales $ Net operating income $ 47,160 $ 77,000 Average operating assets 443,000 Margin Turnover Return on investment (ROI) $ 6% % 6.0 % 36.0 % 11 % 27.5%
The required data for the missing data in the given table for the distributor of martial arts products is shown below:Alpha Division Bravo Charlie Sales $ 393,000 $ $ Net operating income $ 47,160 $ $ 77,000 Average operating assets $ 443,000 $ $ Margin 6% 11% 27.5% Turnover 6.0% 36.0% $ Return on Investment (ROI) 11% $ 11%.
Explanation:Given:Alpha Division Bravo Charlie Sales $ 393,000 $ $ Net operating income $ 47,160 $ $ 77,000 Average operating assets $ 443,000 $ $ Margin 6% 11% 27.5% Turnover 6.0% 36.0% $ Return on Investment (ROI) 11% $ 11%We know thatMargin = Net Operating Income / Sales Margin for Alpha = 6% Net Operating Income for Alpha = 6% of Sales= 6/100 * 393,000 = $23,580Margin for Bravo = 11% Net Operating Income for Bravo = 11% of Sales= 11/100 * X = X/9Margin for Charlie = 27.5% Net Operating Income for Charlie = 27.5% of Sales= 27.5/100 * 77,000 = $21,175We know that Turnover = Sales / Average Operating AssetsTurnover for Alpha = 6.0% Sales for Alpha = 6.0% * 443,000 = $26,580Turnover for Bravo = 36.0% Sales for Bravo = 36.0% * X = 0.36XTurnover for Charlie = 27.5% Sales for Charlie = 27.5% * X = 27.5/100 * XReturn on Investment (ROI) = Margin * TurnoverReturn on Investment (ROI) for Alpha = 11% ROI for Alpha = Margin * Turnover = 6% * 6.0% = 0.36%Return on Investment (ROI) for Bravo = 11% ROI for Bravo = Margin * Turnover = 11% * 36.0% = 3.96%Return on Investment (ROI) for Charlie = 11% ROI for Charlie = Margin * Turnover = 27.5% * X = 3.025X%Therefore, the missing values are:Alpha Division Bravo Charlie Sales $ 393,000 $ 214,166.67 $ 280,000.00 Net operating income $ 47,160 $ 23,580.00 $ 77,000.00 Average operating assets $ 443,000 $ 595,185.19 $ 1,018,181.82 Margin 6% 11% 27.5% Turnover 6.0% 36.0% 0.275 Return on Investment (ROI) 11% 3.96% 3.025X
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Consider the following scenario: Eden Dairy, a major Australian dairy company manufactures and sells standardised breakfast yoghurts to countries all over the world. To appeal to local needs, minor changes in attributes such as sweetness and flavour are made. The main products and labels, on the other hand, are standardised. Eden Dairy first entered the Chinese market a few years ago and has been very happy with the results. In China, the company's revenues are still increasing at a rate of about 50% per year. Eden Dairy began operations in India by manufacturing and selling its goods, based on its marketing success in China and other Asian countries and market reforms that were taking place in India.
The initial response to the product was extremely positive in India, and the company was considering rapidly increasing its production capacity within a year. After a year, however, sales slowed and began to decline. The product was aimed at the upper-middle class in India, especially families with two working spouses.
According to extensive customer research, the target market experimented with flavoured breakfast yoghurt as an alternative meal (i.e. breakfast) for a short time before returning to the conventional Indian breakfast. Non-Indian snack items and the restaurant market, according to the CEOs of some other food companies in India, are the areas in which MNCs can hope for success. Attempting to replace a complete meal with a non-Indian food has a lower chance of success.
You're a senior executive in Eden Dairy's foreign division, with experience in product management in a variety of countries. The CEO intends to despatch you on a fact-finding mission to India to address these unique questions.
Question
In your response, what would your answers be to the following questions below:
A) Was it a mistake to enter the Indian market with a standardised product? (3 marks)
B) If so, was it an issue with the product or with the way it was presented? (3 marks)
C) Given the benefits of exploiting global brand equity and product awareness, as well as the drawbacks of varying local preferences, what would be your strategy be for entering new markets?
A product that is uniform and consistent in its specs, features, and quality is referred to as being standardized product. It can be mass produced and distributed widely since it is consistently produced in big quantities.
A) It was a mistake to enter the Indian market with a standardised product. As per extensive customer research, the target market experimented with flavoured breakfast yoghurt as an alternative meal (i.e. breakfast) for a short time before returning to the conventional Indian breakfast. A standardised product may have not considered the local preferences, hence sales slowing down and declining.
B)The problem may not be the product, but how it was presented. The target market that the company aimed for was the upper-middle class in India, especially families with two working spouses. Extensive customer research indicated that these people may have experimented with flavoured breakfast yoghurt as an alternative meal (i.e. breakfast) for a short time before returning to the conventional Indian breakfast. The company may have failed to present the product in a way that suited local needs.
C) A company must strike a balance between global brand equity and local preferences in order to successfully enter new markets. While keeping a core brand identity, it must also adapt to local needs. Adapting to local needs may be important to ensure sales and profits in new markets.
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what is positioning map.
what is perceptional map.explain in detail. what are the
differences between them.
A positioning map and a perceptual map are both visual tools used in marketing to understand how consumers perceive and differentiate between brands or products. While they serve similar purposes, there are some differences between the two.
Positioning Map:
A positioning map is a graphical representation of how brands or products are positioned in the minds of consumers relative to each other based on specific attributes or dimensions. It helps identify the unique selling proposition of a brand or product and how it compares to competitors in the marketplace. The map typically consists of two axes that represent different attributes, and brands are plotted based on their perceived positioning along those attributes. The positioning map provides insights into market gaps, competitive advantages, and opportunities for differentiation.
For example, a positioning map for smartphones may have attributes like price and features. Brands like Apple and Samsung can be plotted on the map based on their perceived position in terms of offering high-priced, feature-rich smartphones or more affordable, budget-friendly options.
Perceptual Map:
A perceptual map is also a visual representation of how consumers perceive brands or products, but it focuses on a broader set of dimensions or attributes. It helps marketers understand how consumers perceive and differentiate brands based on multiple factors like price, quality, reliability, design, and other relevant characteristics. The map is created based on consumer surveys or research data, where respondents rate or rank brands on different attributes, and the results are plotted on the map. The perceptual map helps identify market segments, target audience preferences, and potential gaps or opportunities for positioning.
For example, a perceptual map for soft drinks may include attributes like taste, carbonation, price, and healthiness. Different soft drink brands like Coca-Cola, Pepsi, and Sprite can be plotted based on consumer perceptions of these attributes. This map can reveal clusters of brands that appeal to similar consumer preferences or identify unique positioning opportunities.
Differences:
The key differences between a positioning map and a perceptual map are as follows:
Focus: A positioning map focuses on specific attributes or dimensions that differentiate brands or products, whereas a perceptual map considers a broader range of dimensions that influence consumer perceptions.
Data Source: A positioning map can be created based on market research, competitive analysis, or marketing strategy, while a perceptual map is typically created based on consumer surveys or research data that capture consumer perceptions.
Scope: A positioning map provides a snapshot of brand positioning in relation to competitors, highlighting strengths, weaknesses, and opportunities for differentiation. On the other hand, a perceptual map provides a broader view of consumer perceptions and preferences, helping identify market segments and target audience preferences.
Application: A positioning map is often used by marketers to guide brand positioning strategies, messaging, and targeting specific segments. A perceptual map helps in market segmentation, understanding brand positioning, and identifying opportunities for product development or improvement based on consumer perceptions.
In summary, while both positioning maps and perceptual maps are valuable tools in marketing, the positioning map focuses on specific attributes and helps understand brand positioning relative to competitors, while the perceptual map provides a broader view of consumer perceptions and preferences across multiple dimensions.
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The performance of the Notemachine ATM company from 2012 onwards was a reflection of the fact that: A The sector was too fragmented and low-growth and Notemachine's management team had little experience of dealing with this type of investment The popular expectations about the sector's prospects turned out to be correct and Notemachine relled on a confident management team with a successful track record B C The popular expectations about the sector's prospects did not turn out to be correct and Notemachine chose to focus on a fragmented low-growth niche D The popular expectations about the industry had scared the sector's players and Notemachine focused its attention on an unexciting low-risk niche E I do not want to answer this question 4. The best way to find the market value of equity is to: A Deduct total liabilities from total sources and add back cash B Deduct net debt from the present value of unlevered cash flows C Deduct net debt from the sum of net long-term assets and net working capital D I do not want to answer this question E Deduct the total liabilities and cash from the enterprise value
The performance of the Notemachine ATM company from 2012 onwards was a reflection of the fact that the popular expectations about the industry had scared the sector's players and Notemachine focused its attention on an unexciting low-risk niche.
This option D is the correct option in the given question.The Notemachine ATM company is a UK based provider of cash machines, founded in 1998, and in 2005 it was acquired by Cardtronics. The company has a network of more than 12,000 ATMs in the United Kingdom and Europe. After 2012, the performance of the Notemachine ATM company was a reflection of the fact that the popular expectations about the industry had scared the sector's players and Notemachine focused its attention on an unexciting low-risk niche. Thus, option D is the correct option in the given question.Now, let's move to the next question which is: The best way to find the market value of equity is to:?
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The conversion process of changing from the old system to the new system can be accomplished by all of the following methods except _ (blank) _. Select one: a. parallel b. direct cutover c. production d. pilot e. phased
The conversion process of changing from the old system to the new system can be accomplished by all of the following methods except the production method.
The conversion process of transitioning from an old system to a new system typically involves various methods aimed at minimizing disruption and ensuring a smooth transition. Four commonly used methods are parallel, direct cutover, pilot, and phased.
In the parallel method, both the old and new systems run simultaneously for a period, allowing for a gradual transition and testing of the new system before fully replacing the old one.
The direct cutover method involves an immediate switch from the old system to the new system at a predetermined date and time, which can be risky due to the lack of a fallback option.
The pilot method involves implementing the new system in a limited area or department as a trial before rolling it out across the entire organization.
The phased method involves a gradual implementation of the new system in different stages or modules, ensuring a step-by-step transition and reducing the overall risk.
The production method, mentioned in the question, is not a recognized method for system conversion. Therefore, the correct answer is c. production. Implementing a new system directly in production without any testing or transitional stages would likely be highly disruptive and pose significant risks to the organization's operations.
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Two bonds have par values of $1,000. One is a 5.5%, 18-year bond priced to yield 8.5%. The other is a(n) 7%, 23-year bond priced to yield 4.5%. Which of these two has the lower price? (Assume annual compounding in both cases.) The price, PV, of the 5.5%, 18-year bond is $. (Round to the nearest cent.)
The 5.5%, 18-year bond has a lower price compared to the 7%, 23-year bond. The price of the 5.5% bond is approximately $842.70, while the price of the 7% bond is approximately $1,158.53.
To calculate the price of a bond, we can use the present value formula:
PV = C / (1 + r)ⁿ + C / (1 + r)ⁿ⁻¹ + ... + C / (1 + r) + C / (1 + r)ⁿ
Where PV is the present value (price) of the bond, C is the coupon payment, r is the yield (interest rate), and n is the number of periods.
Let's calculate the price of each bond
For the 5.5%, 18-year bond:
Coupon payment (C) = 0.055 * $1,000 = $55
Yield (r) = 8.5% = 0.085
Number of periods (n) = 18
PV = $55 / (1 + 0.085)¹ + $55 / (1 + 0.085)² + ... + $55 / (1 + 0.085)¹⁸
Using a financial calculator or spreadsheet, we can calculate the price of the 5.5%, 18-year bond to be approximately $842.70.
For the 7%, 23-year bond:
Coupon payment (C) = 0.07 * $1,000 = $70
Yield (r) = 4.5% = 0.045
Number of periods (n) = 23
PV = $70 / (1 + 0.045)¹ + $70 / (1 + 0.045)² + ... + $70 / (1 + 0.045)²³
Using the same calculation method, we can find the price of the 7%, 23-year bond to be approximately $1,158.53.
Therefore, the 5.5%, 18-year bond has a lower price compared to the 7%, 23-year bond. The price of the 5.5%, 18-year bond is approximately $842.70.
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Bill and Ted operate a partnership. In most states, for the purpose of collecting judgments their business would be treated as Select one: O a. a combination of individuals. Ob. a proprietorship. C. an independent entity. d. an aggregate
Bill and Ted operate a partnership. In most states, for the purpose of collecting judgments their business would be treated as a combination of individuals.What is a partnership?A partnership is an association of two or more persons who agree to operate a business together for profit.
Each partner contributes money, property, labour, or skill, and shares in the company's gains and losses.What is a judgment?A judgment is a final court order in which a judge or jury decides a legal action. The judgment may require a payment of damages or other legal remedies.What is a partnership liability?Partners are personally liable for the partnership's debts and judgments in most states. Personal liability means that if the partnership is unable to pay its obligations, creditors may go after each partner's personal assets. In most jurisdictions, a partnership is not considered a separate legal entity. As a result, creditors may pursue the partners as individuals for the debts of the company.In most states, for the purpose of collecting judgments, their business would be treated as a combination of individuals.
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12. Family members with an obligation-based commitment may see their participation in the family business as a birthright that provides great job security. ANS:
Yes, family members with an obligation-based commitment often perceive their participation in the family business as a birthright that offers significant job security.
Family members who have an obligation-based commitment to the family business view their involvement as an inherent right and responsibility due to their familial ties. They believe that their position within the business is secure and not subject to the same uncertainties or performance-based evaluations as non-family employees. This perception is rooted in the belief that family ties and obligations supersede other considerations in the business, leading to a strong sense of job security among family members.
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Momentum trading used by technicians is based on the concept
that Buy (Sell) signals are associated with commodities that do
Well (Poorly) over a time period
True
False
True. Momentum trading, used by technicians, is based on the concept that buy signals are associated with commodities or stocks that perform well over a time period, while sell signals are associated with those that perform poorly.
The idea behind momentum trading is to take advantage of trends and continue investing in assets that are gaining momentum, expecting the trend to continue. Trading refers to the buying and selling of financial instruments such as stocks, bonds, commodities, or currencies with the goal of generating profits. Traders participate in various markets, including stock markets, foreign exchange markets, futures markets, and options markets.
Trading can be done by individual investors, professional traders, or financial institutions. The strategies and approaches used in trading can vary widely, ranging from long-term investing to short-term speculation and day trading.
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