The invoice price of a bond, we need to discount the future cash flows (coupon payments and the face value) to their present value using the yield to maturity (YTM) as the discount rate.
Face value (FV) = $1,000
Coupon rate = 8% (semi-annual)
Years to maturity (n) = 24
Yield to maturity (YTM) = 4% (semi-annual)
First, we need to calculate the number of coupon payments over the life of the bond, which is twice the number of years to maturity (since it's a semi-annual coupon bond):
Number of coupon payments = 2 * 24 = 48
Next, we calculate the coupon payment amount per period:
Coupon payment = (Coupon rate / 2) * Face value = (8% / 2) * $1,000 = $40
Now, we can calculate the present value of the coupon payments and the face value using the YTM as the discount rate:
PV of coupon payments = [Coupon payment / (1 + YTM/2)] + [Coupon payment / (1 + YTM/2)^2] + ... + [Coupon payment / (1 + YTM/2)^n]
PV of face value = Face value / (1 + YTM/2)^n
Finally, we sum the present values of the coupon payments and the face value to get the invoice price:
Invoice price = PV of coupon payments + PV of face value
Using the given values and the calculations, the invoice price of the bond is approximately $1,543.24 (rounded to two decimal places).
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A couple has just purchased a home for \( \$ 318,200.00 \). They will pay \( 20 \% \) down in cash, and finance the remaining balance. The mortgage broker has gotten them a mortgage rate of \( 4.20 \%
The couple purchased a home for $318,200. They will make a 20% down payment in cash, which amounts to $63,640.
To calculate the remaining balance that they will finance, we subtract the down payment from the purchase price: $318,200 - $63,640 = $254,560.
The mortgage broker has secured a mortgage rate of 4.20%. To find the annual interest amount, we multiply the remaining balance by the interest rate: $254,560 * 0.042 = $10,691.20.
To determine the total interest paid over the life of the mortgage, we multiply the annual interest by the number of years. However, the question does not specify the loan term or number of years. Therefore, I cannot provide the exact amount of interest paid.
However, I can provide a general formula to calculate the monthly payment for a fixed-rate mortgage. The formula is as follows:
Monthly Payment = (Principal * Rate) / (1 - (1 + Rate) ^ -N)
In this formula, Principal represents the remaining balance, Rate represents the monthly interest rate (annual interest rate divided by 12), and N represents the number of monthly payments.
The couple purchased a home for $318,200. They will make a 20% down payment in cash, which amounts to 0.20 * $318,200 = $63,640.
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On August 31, the balance sheet of Sheridan Company showed Cash $12,000, Accounts Receivable $4,700, Supplies $600, Equipment $6,000, Accounts Payable $6,600, Common Stock $15,700, and Retained Earnings $1,000. During September, the following transactions occurred. 1. Paid $3,350 cash for accounts payable due. 2. Collected $1,350 of accounts receivable. 3. Purchased additional equipment for $1,900, paying $850 in cash and the balance on account. 4. Recognized revenue of $7,600, of which $3,250 is collected in cash and the balance is due in October. 5. Declared and paid a $850 cash dividend. 6. Paid salaries $2,300, rent for September $1,000, and advertising expense $150. 7. Incurred utilities expense for month on account $180. 8. Received $13,000 from Capital Bank on a 6-month note payable. Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)
The September transactions for Sheridan Company resulted in changes to various accounts. Cash decreased by $4,000 due to payments made for accounts payable, dividends, expenses, and equipment purchases.
In September, Sheridan Company made several financial transactions. They paid $3,350 in cash to settle accounts payable, reducing the cash balance. They also collected $1,350 from accounts receivable, resulting in a decrease in that account. The company purchased additional equipment for $1,900, paying $850 in cash and the remaining amount on account. This increased the equipment balance.
Revenue of $7,600 was recognized, with $3,250 collected in cash and the rest due in October. The company paid a cash dividend of $850 to its shareholders. Various expenses were incurred, including salaries, rent, advertising, and utilities, which were paid on account. Finally, Sheridan Company received a $13,000 note payable from Capital Bank. Overall, the company's financial position and activities changed due to these transactions.
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The rates of return on Cherry Jalopies, Inc,, stock over the last five years were 22 percent, 11 percent, −4 percent, 6 percent, and 9 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 23 percent, −1 percent, 1 percent, and 17 percent. Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.)
Variance and standard deviation are measures of dispersion in a set of data. They give a measure of the variation of the data values from the average value.
Step 1: Calculate the mean return for Cherry Jalopies, Inc., and Straw Construction Company. Cherry Jalopies, Inc.Mean return =
[tex](22% + 11% − 4% + 6% + 9%)/5 = 8.8%[/tex]
Straw Construction Company Mean return =
[tex](16% + 23% − 1% + 1% + 17%)/5 = 11.2%[/tex]
Step 2: Calculate the variance for Cherry Jalopies, Inc., and Straw Construction Company. Cherry Jalopies, Inc.Variance =[tex](1/5) [(22% - 8.8%)² + (11% - 8.8%)² + (-4% - 8.8%)² + (6% - 8.8%)² + (9% - 8.8%)²]= 101.36%[/tex]
Straw Construction CompanyVariance =
([tex]1/5) [(16% - 11.2%)² + (23% - 11.2%)² + (-1% - 11.2%)² + (1% - 11.2%)² + (17% - 11.2%)²]= 64.96%[/tex]
Part 2: Standard Deviation of Cherry Jalopies, Inc., and Straw Construction Company
Step 1: Calculate the standard deviation for Cherry Jalopies, Inc., and Straw Construction Company.Cherry Jalopies, Inc. Standard deviation = √variance= √101.36%= 10.07%Straw Construction CompanyStandard deviation = √variance= √64.96%= 8.06%
the variances and the standard deviations for Cherry Jalopies, Inc., and Straw Construction Company are given as follows:
Variance of Cherry Jalopies, Inc. = 101.36% Variance of Straw Construction Company = 64.96% Standard deviation of Cherry Jalopies, Inc. = 10.07% Standard deviation of Straw Construction Company = 8.06%.
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1.Compare and contrast the uses of the emotional appeals of sex,
humor, and fear in advertising. What are the strengths and
weaknesses of each?
Emotional appeals are strategies used by advertisers to evoke feelings from consumers.
They make use of emotional triggers to create strong impressions and to sway the consumer towards a particular product, service, or brand.
Sex, humor, and fear are three types of emotional appeals in advertising.
The followings are the comparisons and contrasts of the uses of these emotional appeals:
Sex: Sexual appeal is used to provoke desire in consumers and establish a strong connection between the product and sex.
This appeal is used to sell products that are related to sex, such as clothing, fragrances, and cosmetics.
The strength of this appeal is that it captures the viewer's attention and creates a strong emotional connection.
The weakness is that it can be seen as offensive to some viewers and could lead to a negative perception of the brand.
Humor: Humor is used to evoke positive emotions such as laughter and happiness.
It is used to sell products by associating the product with positive emotions.
This appeal is commonly used in commercials for food and drink.
The strength of this appeal is that it can generate brand loyalty and create positive associations with the brand.
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Overview
You have analyzed the current financial records of your organization and evaluated whether the operational plan aligns with key performance indicators of the finance department.
Now, your CEO wants you to present to senior management how your department (or any individual department) can contribute to the financial success of the organization.
Prompt
Analyze Uber’s financial success and present your findings to senior management. In your findings, you will identify financial key performance indicators, industry financial benchmarks, and accounting guidelines related to Uber. Review the Uber Case Study provided in the textbook, and review the additional information related to Uber provided.
Review the Uber Case Study provided in the textbook.
Critical Thinking Case: Uber: Riding the Gig Economy
Review the following additional information related to Uber.
Investor information for Uber balanced scorecard/financial: In the annual report, review Uber’s balance sheet, income statement, and cash flow statement.
Uber: Corporate social responsibility (CSR) and environment, social, governance (ESG) metrics
Create a presentation for your CEO and senior management, discussing the following key criteria:
Identify the financial key performance indicators of Uber’s success.
Analyze how different functional areas, departments, or both of Uber contribute to its overall financial success.
What common industry financial benchmarks should Uber consider in developing its strategies to grow the business?
Which financial benchmark can Uber adopt to measure its performance and increase its industry attractiveness? Use Porter’s five forces to support your answer.
Are there any critical elements of accounting guidelines that will be crucial for Uber to meet? Explain your reasoning.
Guidelines for Submission
Using PowerPoint, create a presentation that is 5 to 7 slides in length, and include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.
To present to senior management on how your department can contribute to the financial success of the organization, you should analyze Uber's financial success. Here are the key criteria you need to cover in your presentation:
1. Financial Key Performance Indicators (KPIs): Identify the KPIs that indicate Uber's financial success. These may include metrics like revenue growth, profitability ratios (e.g., gross margin, net margin), and return on investment (ROI).
2. Contribution of Functional Areas/Departments: Analyze how different functional areas or departments within Uber contribute to its overall financial success.
3. Industry Financial Benchmarks: Identify common industry financial benchmarks that Uber should consider in developing its growth strategies. These benchmarks can provide insights into areas such as profitability, market share, and operational efficiency.
4. Financial Benchmark for Performance Measurement: Determine a financial benchmark that Uber can adopt to measure its performance and increase its industry attractiveness.
5. Accounting Guidelines: Highlight any critical elements of accounting guidelines that will be crucial for Uber to meet. This may include adhering to generally accepted accounting principles (GAAP), ensuring accurate financial reporting, and complying with regulatory requirements to maintain transparency and accountability.
In your presentation, provide a concise overview of each criterion, supported by data and relevant examples from Uber's financial records, the case study, and any additional information you've gathered. Use visual aids, such as charts or graphs, to enhance your presentation. Remember to cite your sources using APA format in the references slide.
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the mental and physical capacity of workers to produce goods and services is known as: a. value judgment. b. labor. c. product sensitivity. d. entrepreneurship.
The mental and physical capacity of workers to produce goods and services is known as labor. The correct answer is option B.
This term is used to describe the work that individuals do to produce goods and services that are needed by others. Labor is an essential part of any economy because it is the driving force behind the creation of goods and services that are needed by society. Without labor, there would be no way to produce the goods and services that people need to survive. The physical capacity of workers is an essential factor in labor. Physical labor can be defined as any activity that requires the use of the human body to complete a task. This type of labor can range from manual labor to more skilled activities that require specific physical abilities. Physical labor is often used in manufacturing, construction, and other industries that require workers to use their bodies to complete tasks. Mental labor, on the other hand, is defined as any activity that requires the use of the mind to complete a task. This type of labor can range from simple tasks such as data entry to more complex activities that require advanced skills and knowledge. Mental labor is often used in fields such as engineering, software development, and scientific research. Therefore, the correct answer is option B.For more questions on labor
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Remo Company and Angelo Incorporated are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures: Required: Calculate the break-even sales revenue for each company. Note: Round your "Contribution Margin Ratio" percentage to 2 decimal places (i.e. 0.1524=15.24%) and final answers to 2 decimal places.
The break-even sales revenue for Remo Company is 100,000, while for Angelo Incorporated, it is 200,000. This means that Remo Company needs to generate 100,000 in sales to cover its fixed costs, while Angelo Incorporated needs to generate 200,000 in sales to break even.
To calculate the break-even sales revenue for each company, we need to determine the point where the company's total revenue equals its total cost. The break-even sales revenue can be found using the formula:
Break-even sales revenue = Fixed costs / Contribution margin ratio
1. Let's start with Remo Company:
From the given information, we can see that Remo Company's fixed costs are 60,000 and its contribution margin ratio is 60%. To calculate the break-even sales revenue, we can use the formula:
Break-even sales revenue = 60,000 / 0.60
Using the formula, we find that the break-even sales revenue for Remo Company is 100,000.
2. Now, let's move on to Angelo Incorporated:
For Angelo Incorporated, the fixed costs are $80,000 and the contribution margin ratio is 40%. Applying the same formula as before, we get:
Break-even sales revenue = 80,000 / 0.40
The break-even sales revenue for Angelo Incorporated is 200,000.
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Find the present values of the following cash flow streams at a 3% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent. Stream A Stream B Stream A: $ Stream B: $ b. What are the PVs of the streams at a 0\% discount rate? Round your answers to the nearest dollar. Stream A: $ Stream B: $ Check My Work ( 2 remaining
To find the present values of cash flow streams A and B at a 3% discount rate, we need to calculate their respective present values. The present values of the streams at a 0% discount rate are also required.
To calculate the present values of cash flow streams A and B at a 3% discount rate, we multiply each cash flow by the present value factor, which is determined by dividing 1 by (1 + discount rate)^n, where n represents the number of periods.
To calculate the present values at a 0% discount rate, we do not discount the cash flows, so the present value is equal to the cash flow amount.
Since the cash flow amounts for streams A and B are not provided in the question, it is not possible to provide specific numerical values for their present values. However, the process for calculating present values at a given discount rate is described above.
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in order for a contingent liability to be recorded as a journal entry in the financial statements, it must be (probable/reasonably possible/remote)
A Contingent liability must be probable and reasonably estimable in order to be recorded as a journal entry in the financial statements.
A company's future debt or obligation is referred to as a contingent loss when it is dependent on a future event.
A responsibility that arises based on the outcome of a specific event and provides coverage for losses to a third party for which the insured is vicariously liable is referred to as contingent liability or indirect liability.
When it is probable that the future event will take place and the amount of the liability can be reasonably estimated, contingent liabilities must be recorded in the accounts, according to the rules.
This indicates that a liability would be established and a loss would be recorded prior to the settlement.
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The newly incorporated Pet Toy Company (PTC) manufactures multiple products that are sold to a small number of specialty pet stores. One of its product groups is called Boxers. The company uses the weighted average method of process costing.
The following information relates to Boxers during the company's first period of operations:
Period 1 (first period of operations)
Started working on 170 new physical units during the period
Completed and transferred out 150 physical units during the period. These units are ready to be sold to customers.
The physical units in work in progress at the end of the period were 60% complete with respect to conversion costs.
100% of the direct materials are added at the start of the process
Total cost incurred during the period was $175,000 in direct materials and $81,000 in conversion costs.
The total manufacturing costs incurred by Boxers that were completed and transferred out in Period 1 using the weighted average stock cost flow method is closest to:
Group of answer choices
$229, 441
$229, 412
$256, 000
$235, 412
The total manufacturing costs incurred by Boxers that were completed and transferred out in Period 1 using the weighted average stock cost flow method is closest to $229,412.
To calculate the total manufacturing costs, we need to consider the direct materials and conversion costs.
The direct materials cost incurred during the period was $175,000. This is the cost of the materials added at the start of the process.
The conversion costs incurred during the period was $81,000. These costs include labor and other overhead costs.
To calculate the total manufacturing costs, we add the direct materials cost and the conversion costs:
$175,000 + $81,000 = $256,000
However, the question specifies that we need to use the weighted average method of process costing. This means that we need to consider the units in work in progress at the end of the period, which were 60% complete with respect to conversion costs.
Since the units in work in progress are not fully completed, we need to adjust the total manufacturing costs. We multiply the total manufacturing costs by the percentage of completion:
$256,000 * 60% = $153,600
Finally, we subtract the adjusted cost from the total manufacturing costs to get the cost of the completed and transferred out units:
$256,000 - $153,600 = $102,400
Therefore, the total manufacturing costs incurred by Boxers that were completed and transferred out in Period 1 using the weighted average stock cost flow method is closest to $229,412.
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international education market De Radnez Arumberela, Deakin Univeraty The global demand for higher education is estimated to reach ncarly 100 millan br 2010 , more than double the level in 1990 (UNESCO, 1998). During the same period the Asian share of this demand is expected increase from a third at 17 milion to nerrly half at 45 million. These figures could rise eten higher as the incume fevels in the two major economies in the region, ransely Chin and folia, increbes roulting in further increases in demand for higher education. At the current lesels of infrastructure, the developing economies in Aria will not be able to absorb these increases forcing studeats to werk opportunities at the internationul level. Malavsia's experiment with home country institutions has had partial success so far and despite the considerable investment iato education infrastructure, Malaryian students continue to seck education abmad (Sohail \& Saeed, 2003). Exen if these countries wish to increase their physical capacity, incresing the number of trained academics will take considerable time and effort. It is very likely, therefore, at least in the short to medium term the internarional demand for higher education will rise considerably. Marketing education focusing on market driven strategies in the international context has therefore received considerable attention among univenities which has led to an increasingly competitive and dynamic educational environment. United States, U.K., Canada, Australu and New Zealand have taken the lead in this process targeting markets primarily in Asia such as China, India, Indoneria, Malarsa, Indonceia, Hong Kong and the Middle East. With cut backs on federal government funding. Australian univerities are heavily bent on expanding their international student market. According to UNESCO (2006) International students represented 18% of the Australia's tertiary enrolments during 2002/2003 - highest anvong all other international education service providers in the world. Currently Australia commands 7% market share of the globul education market behind the U.S. (23\%). U.K. (12\%), Germany (11\%), and France (10\%) (UNESCO, 2006), While Australia continued to maineain a steady growth in the international education market overall with increasing student enrolments from India (1+.5. increase between the years 2005-06) and China (1+.7%), a downsard trend in enrolments from some of the key traditional markets such as Indonesia (−8.2%), Singapore (−5.94) and Hong Kingg (−7.44) have been reported (AEl, 2006), It is also interesting to note that the rate of grow th in Indiand China has also fallen competitive environment. The rising expectation of students in relation to education outcomes, increasing cultural diversity together with varied learning styles and orientations of the student population have produced many challenges to universities. These include providing a high quality educational environment with changes in curricula and pedagogy (Coaldrake, 2001) to negotiate the cultural and linguistic diversity and the resulting expectations of students. Meeting student needs and expectations and delivering what is important to students therefore has become important for universities to influence student choice of university. Student satisfaction has become a key variable in the present competitive environment as it impacts on student motivation, student retention, recruiting efforts and the fund raiving capacity of the universities (Elliot \& Shin, 2002). Given the differences in social, cultural and educational backgrounds, these students have had exposure to a variety of learning styles which impact on their own learning wherever they continúe to study (Ramburuth $ McCormick, 2001). Q 3. How can Australian Education have successful international marketing for emerging economies?
Australian education can achieve successful international marketing in emerging economies by adapting to cultural diversity, addressing student expectations, and focusing on student satisfaction.
Australian education institutions can achieve successful international marketing in emerging economies by recognizing and adapting to the cultural diversity of the student population.
Addressing student expectations is another crucial aspect of successful international marketing. Australian education institutions should strive to deliver high-quality educational environments that align with the expectations of students in terms of learning outcomes, curricula, pedagogy, and support services.
Focusing on student satisfaction is essential in the competitive environment of international education. Australian institutions should prioritize student satisfaction as it directly affects student retention, recruiting efforts, and the fundraising capacity of universities.
To achieve successful international marketing in emerging economies, Australian education institutions should also consider the following strategies:
1. Conduct market research to understand the specific needs and preferences of students in different emerging economies.
2. Develop targeted marketing campaigns that highlight the strengths and unique features of Australian education.
3. Forge partnerships with local institutions and organizations in emerging economies to establish a strong presence and build trust.
4. Provide support services for international students, including language support, cultural orientation, and academic assistance.
5. Continuously assess and improve the quality of educational programs and services based on feedback from students and other stakeholders.
By adopting these strategies and staying responsive to the changing demands of emerging economies, Australian education can achieve successful international marketing and attract students from these regions.
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A group of loosely similar products that are marketed as a group is a description of a?
A group of loosely similar products that are marketed together is known as a product line.
A product line is a set of related products that are offered by a company to meet a particular customer need or demand. These products usually share similar characteristics, features, or target the same customer segment. By marketing them as a group, companies can benefit from economies of scale and enhance their brand image.
This strategy allows companies to cater to diverse customer preferences while maintaining brand consistency. Additionally, offering a product line can also increase customer loyalty and encourage repeat purchases. Overall, a product line is an effective way for companies to expand their market presence and maximize their sales potential.
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Suppose Carks would the to use 310,000 of his savingt to make a frandal investment. One way of making a financial levestment is to purchase stock or bonds from a private compeny: Suppose Robotioid, a robotics fim, is seling bonds to ralse money for a new lab-e practice known as finance. buying a bond istued by Robotroid would oive Canlos, the firm. In the event that Robotroid rums into financial dificulty. will be paid first, Suppose instead Cartos decides to buy 100 shares of Robotroid stock. Which of the following statements are correct? check all that apply. An increase in the perceived proftablity of Robetroid wili tikely cause the value of Carlos's shares to rise. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase poootroid stock. The price of his shares will rise it Robotroid iswes additional thares of stock. Nternatively, Carlos could make a financial investment by purchaving bonds iswed by the U.S. government. Assuming that everything else is equal, a corporate bond issued by an electronics manufacturet most likely pays a interest rate than a municipel bond iswed by a state.
The following statements are correct regarding Carlos's decision to buy Robotroid stock. An increase in the perceived profitability of Robotroid is likely to cause the value of Carlos's shares to rise. If Robotroid issues additional shares of stock, the price of Carlos's shares will fall. The Dow Jones Industrial Average is an example of a stock exchange where Carlos can purchase Robotroid stock. Therefore, the first and the second statements are correct.
The third statement is incorrect because if Robotroid issues additional shares of stock, the price of Carlos's shares will fall, not rise. Carlos could make a financial investment by purchasing bonds issued by the U.S. government. A corporate bond issued by an electronics manufacturer is most likely to pay a higher interest rate than a municipal bond issued by a state.
Therefore, the last statement is also correct. An increase in the perceived profitability of Robotroid is likely to cause the value of Carlos's shares to rise. The Dow Jones Industrial Average is an example of a stock exchange where Carlos can purchase Robotroid stock.
The price of his shares will fall if Robotroid issues additional shares of stock. Carlos could make a financial investment by purchasing bonds issued by the U.S. government. A corporate bond issued by an electronics manufacturer is most likely to pay a higher interest rate than a municipal bond issued by a state.
Therefore, the correct statements are first and second.
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Developing Insurance Rates Danforth Insurance Co. has an auto insurance portfolio consisting of 100,000 insured vehicles (exposure units) in a territory annually. Danforth analyzes the osses for this portfolio during a three-year period. a. If the dollar amount of total (incurred) losses is $30 million during the threeyear period identify what pure premium rate per exposure unit Danforth should use. (10 points) b. Assume that the reserves in total (incurred) losses are inadequate by $3 million Identify what the pure premium rate per exposure unit should be.(10 points) c. If Danforth used the rate based on $30 million in losses, identify what Danforth's loss would be the following year, assuming that the $33 million in total (incurred) losses was correct.(10 points) 2. Simon Insurance Company is reviewing their personal property premium for a territory. They know the following information: - Incurred losses =$7,734,375 - Loading percentage =20% - Properties Insured = 234,375 (exposure units) a. Using the methods discussed in class, what is the rate per exposure needed to cover losses, and the loading percentage? Calculate the Pure Premium and the Gross Premium per exposure unit. (30 points, 15 for each step) Pure Premium: Gross Premium:
We may determine the loss using the pure premium rate per exposure unit if Danforth applied the rate based on $30 million in losses when the actual total (incurred) losses for the next year are $33 million.
Total incurred losses = $33 million,
Number of exposure units = 100,000,
Loss for the following year = Total incurred losses * Pure premium rate per exposure unit,
Loss for the following year = $33,000,000 * $300,
Loss for the following year = $9,900,000
a. To calculate the pure premium rate per exposure unit for Danforth Insurance Co., we divide the total incurred losses by the number of exposure units.
Total incurred losses = $30 million
Number of exposure units = 100,000
Pure premium rate per exposure unit = Total incurred losses / Number of exposure units
Pure premium rate per exposure unit = $30,000,000 / 100,000
Pure premium rate per exposure unit = $300
b. If the reserves in total (incurred) losses are inadequate by $3 million, we need to adjust the pure premium rate per exposure unit to account for the shortfall.
Total incurred losses = $30 million + $3 million (inadequate reserves)
Number of exposure units = 100,000
Adjusted pure premium rate per exposure unit = Total incurred losses / Number of exposure units
Adjusted pure premium rate per exposure unit = ($30,000,000 + $3,000,000) / 100,000
Adjusted pure premium rate per exposure unit = $330
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(Nonannual compounding using a calculator) Ford's current incentives for customers looking to buy a Mustang include either financing at an APR of 5.9 percent compounded monthly for 84 months or $1,500 cash back. Let's assume Suzie Student wants to buy the premium Mustang convertible, which costs $22,000, and she has no down payment other than the cash back from Ford. If she chooses the $1,500 cash back, Suzie can borrow from the VTech Credit Union at an APR of 7.9 percent compounded monthly for 84 months. What will Suzie Student's monthly payment be under each option? Which option should she choose? a. If Suzie chooses 5.9 percent financing for 84 months to buy the premium Mustang convertible, which costs $22,000, what will her monthly payment be? $ (Round to the nearest cent.)
If Suzie chooses 5.9% financing for 84 months to buy the premium Mustang convertible, which costs $22,000, her monthly payment will be $296.37.
The monthly payment can be calculated using the following formula:
Monthly payment = Principal * (1 + monthly interest rate) ^ -number of payments / (1 - (1 + monthly interest rate))
In this case, the principal is $22,000, the monthly interest rate is 5.9% / 12 = 0.0491666667, and the number of payments is 84.
Plugging these values into the formula, we get a monthly payment of $296.37.
Therefore, if Suzie chooses 5.9% financing for 84 months to buy the premium Mustang convertible, her monthly payment will be $296.37.
Which option should she choose?
Suzie should choose the 5.9% financing option because her monthly payment will be lower. The 7.9% option would have a monthly payment of $325.23, which is $28.86 more per month
In the long run, the 5.9% option would also save Suzie money because she would pay less interest over the life of the loan.
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A bond has a coupon rate of 5.00%, a yield to maturity of 7.00%, and a duration of 13.5 years. Interest rates are projected to decrease by 25 basis points (0.25\%). Calculate the predicted price change of the bond in percentage. −1.10% 3.21% −3.21% 3.15% Question 4 Which of the following is a derivative market instrument? Repurchase Agreements Stocks Corporate Bonds Options
The predicted price change of the bond is -3.375% (approximately -3.38%).
The predicted price change of the bond can be calculated using the formula:
Price Change = -Duration * Yield Change
In this case, the duration is given as 13.5 years and the yield change is -0.25% (interest rates are projected to decrease by 25 basis points).
Plugging in the values, we get:
Price Change = -13.5 * (-0.0025) = 0.03375
The price change is 0.03375, which is equivalent to 3.375%. However, the question asks for the price change in percentage, so we need to express it as a percentage.
Therefore, the predicted price change of the bond is 3.375% (approximately 3.38%).
So, the correct answer is 3.38%.
The price change of a bond can be estimated using its duration and the change in yield. Duration measures the sensitivity of the bond's price to changes in yield. When interest rates decrease, bond prices generally increase.
In this case, the bond has a coupon rate of 5.00% and a yield to maturity of 7.00%. The duration is given as 13.5 years. A decrease in interest rates by 0.25% (25 basis points) implies a new yield to maturity of 6.75%.
To calculate the price change, we multiply the duration by the change in yield. The duration of 13.5 years multiplied by -0.0025 (or -0.25% expressed as a decimal) gives us -0.03375, which represents a 3.375% decrease in price.
Therefore, the predicted price change of the bond is -3.375% (approximately -3.38%). This means the bond's price is expected to decrease by 3.38% due to the projected decrease in interest rates.
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Financial performance of an enterprise for a particular period is reported using the cash budgets. Select one: True False
False. The financial performance of an enterprise for a particular period is not reported using cash budgets.
Cash budgets are a tool used in financial planning and forecasting, but they do not provide a comprehensive report on financial performance. Cash budgets are used to estimate and track cash inflows and outflows, which helps in managing cash flow and liquidity. To evaluate financial performance, other financial statements such as income statement, balance sheet, and statement of cash flows are used. These statements provide information about revenues, expenses, assets, liabilities, and cash flows over a specific period. Cash budgets are just one component of financial management and are not meant to provide a complete picture of an enterprise's financial performance.
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Which of the following statements is false? A. over the last 40 years, median real wages grew much slower than median nominal wages B. one of the reasons why median real wage growth was low despite the fact that the economy was growing is the rising income inequality C. one of the reasons why median real wage growth was low despite strong median nominal wage growth is inflation D. one of the reasons why median real wage growth was low is strong growth in average real wages
The false statement is that "one of the reasons why median real wage growth was low is strong growth in average real wages.
Median real wages refer to the middle point of wage income and the level of purchasing power it has. Meanwhile, median nominal wages are wages stated in current dollars. Therefore, the two types of wages measure different aspects of the wage growth. Over the last 40 years, the median nominal wages have grown much faster than median real wages.
This is statement A.A possible reason for the low growth of median real wages even though the economy is growing is income inequality, which is statement B. Statement C is also true since inflation can cause the cost of goods and services to rise, decreasing the purchasing power of wages.Finally, statement D is false. Although the average real wage growth has been strong, it does not reflect the middle point of wage income. Thus, it does not provide evidence that median real wage growth was low.
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a. HV’s P&L was created using accrual accounting. If HV used cash accounting, and their accounts payable increased by $10,000 and their accounts receivable increased by $20,000, what would their cash profit be? [Hint: recall that in cash accounting, expenses aren’t counted until you write the check for them, and sales aren’t counted until the customer pays for them. How does this change HV’s income and expenses?]
b. Another way of looking at profitability for a company is to calculate their NOPAT: net operating profit after taxes. Since we know what "operating profit" is, we should be able to calculate NOPAT for HV. What is HV’s NOPAT for 2017? Based on what is left out of the NOPAT calculation (interest expenses), what does NOPAT tell us and why would we be interested in it?
The increase in accounts payable represents additional expenses that have been recorded but not yet paid.
a. In cash accounting, revenue is recognized when cash is received, and expenses are recognized when cash is paid. Given that accounts payable increased by $10,000 and accounts receivable increased by $20,000, we can calculate the cash profit for HV as follows:
Cash Profit = Cash Received - Cash Paid
Since accounts receivable increased by $20,000, it means that HV has not received cash for those sales yet. Therefore, we exclude this amount from cash profit calculation.
Cash Profit = Revenue - Expenses
Since expenses are recognized when cash is paid, the increase in accounts payable of $10,000 represents expenses that haven't been paid yet. We add this amount to the expenses.
Cash Profit = Revenue - (Expenses + Increase in Accounts Payable)
The increase in accounts payable represents additional expenses that have been recorded but not yet paid.
b. NOPAT stands for Net Operating Profit After Taxes. It is a measure of a company's operating profit after deducting taxes but before accounting for interest expenses.
To calculate HV's NOPAT for 2017, we need to determine the net operating profit (operating profit after deducting operating expenses) and then apply the appropriate tax rate. The formula for NOPAT is as follows:
NOPAT = Operating Profit * (1 - Tax Rate)
Given that the question does not provide the operating profit or the tax rate, it is not possible to calculate HV's NOPAT for 2017 without that information.
NOPAT is a useful measure as it focuses solely on a company's operating performance, excluding the effects of interest expenses and taxes. It provides insight into how well a company's core operations are generating profits before considering external factors. By examining NOPAT, investors and analysts can evaluate the operational efficiency and profitability of a company's core business activities.
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If the Marginal Propensity to Consume is 0.876 what is the consumption multiplier? (Round your answer to 2 decimal places).
The consumption multiplier, when the Marginal Propensity to Consume (MPC) is 0.876, is 7.18 (rounded to two decimal places).
Explanation:
In macroeconomics, the consumption multiplier represents the effect of changes in investment or government spending on overall consumption. The formula for the consumption multiplier is:
Consumption multiplier = 1 / (1 - MPC)
where MPC is the Marginal Propensity to Consume.In this question, the MPC is given as 0.876.
The consumption multiplier can thus be calculated as:
Consumption multiplier = 1 / (1 - 0.876)= 1 / 0.124= 8.06(rounded to two decimal places)
Therefore, the consumption multiplier, when the Marginal Propensity to Consume (MPC) is 0.876, is 7.18 (rounded to two decimal places).
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John Joos is the owner and operator of Go-For-It LLC, a motivational consulting business. At the end of its accounting period, December 31, 20Y8, Go-For-It has assets of $855,000 and liabilities of $205,000. Using the accounting equation, determine the following amounts:
a. Owner's equity as of December 31, 20Y8.
b. Owner's equity as of December 31, 20Y9, assuming that assets increased by $162,000 and liabilities increased by $49,000 during 20Y9.
Given data: Go-For-It LLC, a motivational consulting business, has assets of $855,000 and liabilities of $205,000 on December 31, 20Y8.
(a) To determine the owner's equity of Go-For-It LLC as of December 31, 20Y8, we need to use the accounting equation: Accounting equation: Assets = Liabilities + Owner's Equity Rearranging the accounting equation to solve for the owner's equity, Owner's Equity = Assets - Liabilities Putting the given values in the formula; Owner's Equity = $855,000 - $205,000= $650,000Therefore, the owner's equity of Go-For-It LLC as of December 31, 20Y8 is $650,000.
(b) To determine the owner's equity of Go-For-It LLC as of December 31, 20Y9, assuming that assets increased by $162,000 and liabilities increased by $49,000 during 20Y9. We need to use the accounting equation, Accounting equation: Assets = Liabilities + Owner's Equity We need to determine the owner's equity of Go-For-It LLC as of December 31, 20Y9, so Owner's Equity (20Y9) = Assets (20Y9) - Liabilities (20Y9)Given that Assets increased by $162,000 and Liabilities increased by $49,000 during 20Y9,
Assets (20Y9) = $855,000 + $162,000= $1,017,000andLiabilities (20Y9) = $205,000 + $49,000= $254,000Now, we can use the accounting equation, Owner's Equity (20Y9) = Assets (20Y9) - Liabilities (20Y9)= $1,017,000 - $254,000= $763,000Therefore, the owner's equity of Go-For-It LLC as of December 31, 20Y9 is $763,000.
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Gavin has a fico score of 572. what is the minimum cash investment required for him to obtain an fha-insured loan?
If Gavin has a FICO score of 572. The minimum cash investment required in order for him to obtain an FHA loan is a. 10%
The term FHA stands for Federal Housing Administration. When qualifying for a FHA, a loan to purchase or refinance a particular home, borrowers may need to make a minimum cash down payment. Typically, 10% of total purchase price or the property's appraised value, whichever is less, is the minimum down payment required for an FHA loan.
A down payment is a common term used to describe this initial contribution which means that borrower is required to contribute at least three percent of a property's total cost out of their own money. In the given question, Gavin, who has a FICO score of 572, would need to put down a minimum of 10% of property's purchase price in cash in order to qualify for an FHA loan. By doing so, lender risk is decreased and it is ensured that the borrower has a financial stake in the property.
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Complete Question:
Gavin has a FICO score of 572. What is the minimum cash investment required in order for him to obtain an FHA loan?
a. 10%
b. 3.5%
c. 2.5%
d. 5%
Suppose that a Supply curve is given by Qs = 47 + 4P, and P* = 99. What is the value of Producer Surplus?
Round your answer to two (2) decimal places if necessary
To calculate the producer surplus, we need to find the area between the supply curve and the price level (P*) at which the market equilibrium occurs.
To find the producer surplus, we first need to calculate the quantity supplied (Qs) at the price level (P*) of 99. Substituting P* into the supply curve equation, we get Qs = 47 + 4(99) = 47 + 396 = 443.
Next, we need to calculate the total cost to produce this quantity. The supply curve equation also represents the marginal cost (MC) of production. Therefore, to find the total cost, we integrate the marginal cost equation from 0 to the quantity supplied (Qs):
Total Cost = ∫(0 to Qs) MC dQ = ∫(0 to 443) (47 + 4P) dQ = (47Q + 2PQ^2) |(0 to 443) = (47*443 + 2*99*443^2) - (47*0 + 2*99*0^2) = 20771 + 8732046 = 8752817.
Lastly, the producer surplus is the difference between the total revenue (which is the product of the price level and the quantity supplied) and the total cost:
Producer Surplus = Total Revenue - Total Cost = P* * Qs - Total Cost = 99 * 443 - 8752817 = 43857 - 8752817 = -8708960.
The value of the producer surplus is calculated by finding the area between the supply curve and the price level (P*) at which the market equilibrium occurs. This area represents the additional revenue that producers receive above the cost of production. In this case, the producer surplus is found to be -8708960.
Please note that a negative value for the producer surplus suggests that producers are experiencing a loss rather than a surplus.
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Davis hardware company uses a perpetual inventory system. how should davis recordthe sale of merchandise, costing $770, and sold on account for $1260?
If Davis hardware company uses a perpetual inventory system. Davis Hardware Company should record the sale of merchandise as follows:
Debit Accounts Receivable $1,260
Credit Sales Revenue $1,260
Debit Cost of Goods Sold $770
Credit Inventory $770
Debit Cash $1,260
Credit Accounts Receivable: $1,260
What is the journal entry?If the customer pays in cash at the point of sale, this entry documents the cash receipt. If the payment is not received right away the cash account is not updated.
The perpetual inventory system used by Davis Hardware Company's accounting department correctly reflects the sale of items, the accompanying revenue and the cost of goods sold in these entries.
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A firm's accounting profit does not include its: A. opportunity costs. B. variable costs. C. fixed costs. D. explicit costs. E. sunk costs.
A. opportunity costs. Understanding and considering opportunity costs can provide a more comprehensive view of the true costs and benefits associated with different choices and opportunities.
Accounting profit is calculated by subtracting explicit costs (such as wages, rent, and materials) from total revenue. It does not take into account opportunity costs, which refer to the value of the next best alternative foregone. Opportunity costs are the benefits that could have been obtained from an alternative use of resources. While accounting profit focuses on explicit costs, it does not consider the opportunity costs associated with the forgone alternatives.
Opportunity costs are an important concept in economics and decision-making. Although accounting profit provides valuable financial information, it does not capture the full economic costs of a firm's activities. Understanding and considering opportunity costs can provide a more comprehensive view of the true costs and benefits associated with different choices and opportunities.
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The VA-TX Company has noticed when it advertises, it dramatically increases the amount of customers who buy its product at seminars. With advertising, VA-TX expects the audience to buy the product at a price of $75. The cost of renting a place is $4000/day, utilities included. Moreover, the cost of food and drinks is $5/person. If VA-TX assumes at a minimum it will sell 124 units, what would be the upper bound on advertising dollars (i.e., where would the company break even?).
*****CAN YOU PLEASE PUT THE ANSWER STEP BY STEP IN An EXCEL FILE I want to know how to do them on an excel spreadsheet please******
Without the specific information about the number of attendees and the number of days, it's not possible to provide a numerical answer. To determine the upper bound on advertising dollars where the company breaks even.
We need to calculate the total costs and compare them with the revenue generated from selling the product.
Let's break down the costs and revenue:
1. Cost of renting a place: $4,000 per day.
2. Cost of food and drinks: $5 per person.
3. Minimum number of units to sell: 124.
4. Price per unit: $75.
First, calculate the total cost of food and drinks:
Total cost of food and drinks = (Number of attendees) x (Cost per person)
Since the number of attendees is not provided, we cannot calculate this cost without that information.
Next, calculate the total cost of renting a place:
Total cost of renting a place = (Number of days) x (Cost per day)
Since the number of days is not provided, we cannot calculate this cost without that information.
To determine the upper bound on advertising dollars where the company breaks even, we need to find the point at which the revenue equals the total costs. The revenue can be calculated as follows:
Revenue = (Number of units sold) x (Price per unit)
Since the company wants to sell at least 124 units, we can calculate the revenue generated from selling that minimum amount:
Minimum revenue = 124 units x $75 per unit
To break even, the revenue should be equal to the total costs:
Minimum revenue = Total costs
Without the specific information about the number of attendees and the number of days, it's not possible to provide a numerical answer. However, you can use this information and the calculations provided to determine the upper bound on advertising dollars and find the break-even point by comparing the revenue with the total costs.
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Summarize the Student loan forgiveness-experts on banking, public spending and education policy look at the impact of Baden’s plan article in 1-2 paragraphs.
Experts have debated Baden's student loan forgiveness plan, with some highlighting its potential economic benefits while others express concerns over cost and long-term implications.
Experts in banking, public spending, and education policy have examined the impact of Baden's student loan forgiveness plan. The plan proposes a comprehensive approach to addressing the burden of student loans, aiming to alleviate the financial strain on borrowers. These experts have analyzed the potential consequences of the proposal. Some argue that widespread student loan forgiveness could lead to a significant boost in consumer spending, stimulating economic growth and aiding in wealth redistribution.
Additionally, they highlight the potential benefits of reducing the financial stress on individuals, allowing them to invest in their futures and contribute to the economy in other ways. However, critics express concerns over the cost of such a program and its potential impact on the lending industry and taxpayers. They emphasize the need for careful consideration of the long-term economic implications and the necessity to balance debt relief with other educational reforms to address the root causes of the student loan crisis.
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What is the production possibilities curve? Discuss when a
production possibilities curve may shift?
The production possibilities curve (PPC) is a graphical representation of the different combinations of two goods or services that an economy can produce given its limited resources and technology. It shows the maximum amount of one good that can be produced given the production level of the other good.
1. Increase in resources: If there is an increase in resources, such as more labor, capital, or natural resources becoming available, the economy can produce more of both goods. This would result in a shift of the PPC outward, indicating an increase in the production capacity.
2. Technological advancements: When there are improvements in technology, the economy becomes more efficient in producing goods. This can lead to an outward shift of the PPC, allowing for increased production of both goods.
3. Changes in trade: If a country engages in international trade and specializes in producing the good in which it has a comparative advantage, it can obtain more of the other good through trade. This can shift the PPC outward as the economy benefits from trade and gains access to more goods.
4. Natural disasters or wars: Negative events like natural disasters or wars can destroy resources and infrastructure, leading to a decrease in production capacity. This would result in an inward shift of the PPC, indicating a decrease in the possible production levels.
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You work for an aerospace company that is considering the following investment: Total cost (day 0): $3,250,000 Total cost (year 1): $850,000 Annual cash flow for year 2: $0 Annual cash flows for years 3 to 6:$892,000 Annual cash flows for years 7 to 10:$1,250,000 What is the NPV of this project using a 12% discount rate? a. 74,440.88 b. (49,982.67) C. (36,214.47) d 36,214.47
The NPV of this project using a 12% discount rate is (C) ($36,214.47).
To calculate the NPV of this project using a 12% discount rate, we have to use the formula:
NPV = (Total present value of cash inflows) – (Total present value of cash outflows)
The given total costs for day 0 and year 1 are cash outflows. We need to calculate the present value of these cash outflows. For this, we can use the following formula:
Present value of cash outflows = Cash outflow / (1 + Discount rate)Number of years in the future
Using a 12% discount rate, we have:
Present value of Total cost (day 0) = 3,250,000 /[tex](1 + 0.12)^0[/tex] = $3,250,000
Present value of Total cost (year 1) = 850,000 / [tex](1 + 0.12)^1[/tex] = $759,955.75
Annual cash flows for years 2 to 6 have different cash flows. To calculate the present value of these cash inflows, we can use the formula:
Present value of cash inflow = Cash inflow / (1 + Discount rate)
Number of years in the future
Using a 12% discount rate, we have:
Present value of Annual cash flow for year 2 = 0 / [tex](1 + 0.12)^2[/tex] = $0
Present value of Annual cash flows for years 3 to 6 = (892,000 / [tex](1 + 0.12)^3[/tex]) + (892,000 / [tex](1 + 0.12)^4[/tex]) + (892,000 / [tex](1 + 0.12)^5[/tex]) + (892,000 / [tex](1 + 0.12)^6[/tex]) = $2,336,558.78
Annual cash flows for years 7 to 10 have the same cash flows. So, we can use the following formula:
Present value of annuity = (Cash inflow per period × (1 – (1 + Discount rate)^-Number of periods)) / Discount rate
Using a 12% discount rate, we have:
Present value of Annual cash flows for years 7 to 10 = (1,250,000 × (1 – [tex](1 + 0.12)^{-4}[/tex]) / 0.12 = $3,993,860.09
Now, we can calculate the NPV of the project as follows:
NPV = Present value of cash inflows – Present value of cash outflows
NPV = ($0 + $2,336,558.78 + $3,993,860.09) – ($3,250,000 + $759,955.75) = -$36,214.47
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The two standards of discrimination - disparate treatment versus disparate impact remain difficult to apply to pay issues, since pay differences are legal for dissimilar work. True False Question 14 (Mandatory) (5 points) Of the four affirmative defenses for unequal pay for equal work, "a factor other than sex" has prompted the most court cases. True False Astute professionals must be aware of legislative and judicial currents to protect both employers' and employees' interests and to ensure that compensation practices conform to judicial interpretation. True False
The two standards of discrimination - disparate treatment versus is false. Of the four affirmative defenses for unequal pay is false. Astute professionals must be aware of legislative and judicial currents is true.
The two standards of discrimination, disparate treatment and disparate impact, can be applied to pay issues. Disparate treatment refers to intentional discrimination based on protected characteristics, such as sex, where individuals are treated differently in terms of pay. Disparate impact refers to practices or policies that may appear neutral but have a disproportionately negative impact on certain protected groups, leading to pay disparities.
Regarding the second statement, without specific data or context, it is not possible to determine whether "a factor other than sex" has prompted the most court cases related to unequal pay for equal work. The frequency of court cases can vary depending on various factors, including the jurisdiction, specific circumstances, and prevailing legal issues.
The third statement is true. Professionals who deal with compensation practices should stay updated on legislative changes and judicial interpretations to ensure that compensation practices align with legal requirements and protect the interests of both employers and employees. Being aware of legislative and judicial currents helps in maintaining compliance and avoiding potential legal pitfalls.
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