A) Structure is an organizational reason as to why people tend to resist a change or a decision in their organizations
One organizational reason why people tend to resist change or decisions in their organizations is the structure. Organizational structure refers to how the different roles, tasks, and responsibilities are divided and coordinated within an organization. When a change or decision is introduced, it may disrupt the established structure and affect the roles and relationships within the organization. This disruption can create uncertainty, resistance, and a fear of the unknown among employees.
For example, if a change involves altering reporting lines or restructuring departments, employees may resist because it can potentially change their position, authority, or power within the organization. They may feel threatened by the change, fearing a loss of status, influence, or control. Additionally, changes in structure can lead to ambiguity about job roles, responsibilities, and communication channels, which can cause resistance from employees who prefer stability and clarity in their work environment.
The organizational reason why people tend to resist change or decisions in their organizations is often related to the structure. Changes that disrupt established roles, reporting lines, and relationships can create uncertainty and fear among employees, leading to resistance. It is important for organizations to manage and communicate changes effectively, addressing concerns related to structural adjustments, to minimize resistance and facilitate a smoother transition.
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Arm and Hammer Construction Company, Inc. had these transactions during June through December 2019. June 1st Issued 62,000 shares of $3 stated value common stock for cash at $8 per share. July 1st Issued 3,000 shares of 4% $100 par value preferred stock for cash at $75 per share. October 1st Purchased 2,000 shares of common stock previously issued on June 1st for $10 per share. November 1st Declared a cash dividend of $2 per share on the preferred stock, and 50 cents per share on the common stock. Hint: dividends cannot be declared or paid on any shares of treasury stock held by the company. December 15th paid the preferred stock and common stock dividends declared on November 1st Required Prepare journal entries for the above transactions.
Here are the journal entries for the above transactions: June 1, 2019 - Common stock issuance: Debit: Cash - $80,000 (total proceeds from issuance of common stock)
Credit: Stockholders' equity - Common stock - $80,000 (for 62,000 shares issued)
July 1, 2019 - Preferred stock issuance:
Debit: Cash - $210,000 (total proceeds from issuance of preferred stock)
Credit: Stockholders' equity - Preferred stock - $210,000 (for 3,000 shares issued)
October 1, 2019 - Common stock purchase:
Debit: Cash - $20,000 (total cost of purchasing common stock)
Credit: Stockholders' equity - Common stock - $20,000 (for 2,000 shares purchased)
November 1, 2019 - Dividend declaration:
Debit: Dividends payable - $60,000 (total amount of dividends to be paid)
Credit: Retained earnings - $60,000 (for declaration of dividends)
December 15, 2019 - Dividend payment:
Debit: Cash - $60,000 (total amount of dividends to be paid)
Credit: Dividends payable - $60,000 (for payment of dividends)
Note: Dividends cannot be declared or paid on any shares of treasury stock held by the company. Therefore, there is no entry necessary for the treasury stock.
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If the price level increases by 3%, real income decreases by 2% and the stock of money decreases by 5%, what is the percentage change in the velocity of money? a. -4% b. 6% c. 0% d. 10%
The percentage change in the velocity of money is approximately a. -4%.
To determine the percentage change in the velocity of money, we can use the quantity equation:
MV = PQ
Where:
M = Stock of money
V = Velocity of money
P = Price level
Q = Real income
We are given the following information:
Price level increases by 3% (P increases by 3%)
Real income decreases by 2% (Q decreases by 2%)
Stock of money decreases by 5% (M decreases by 5%)
To calculate the percentage change in velocity, we need to consider the equation MV = PQ and the relationship between the variables.
From the equation MV = PQ, we can rewrite it as V = (PQ) / M.
Let's calculate the initial velocity (V1) and the final velocity (V2) based on the given changes:
V1 = (P1 * Q1) / M1
V2 = (P2 * Q2) / M2
Now, let's calculate the percentage change in velocity using the formula:
Percentage Change in Velocity = ((V2 - V1) / V1) * 100
Substituting the values into the formula:
Percentage Change in Velocity = (([(P2 * Q2) / M2] - [(P1 * Q1) / M1]) / [(P1 * Q1) / M1]) * 100
Since the changes in price level, real income, and stock of money are given as percentages, we can substitute the values:
Percentage Change in Velocity = (((1 + 0.03) * (1 - 0.02) * (1 - 0.05)) - 1) * 100
Simplifying the calculation:
Percentage Change in Velocity = (-0.0406) * 100
Percentage Change in Velocity ≈ -4.06%
Therefore, the percentage change in the velocity of money is approximately -4%. Option (a) is the correct answer: -4%.
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Calculate the present value of a 10-year ordinary annuity. Given
the annual payment will start one year from now at £1,500 and
market interest rate will remain at 5%.
The present value of a 10-year ordinary annuity with an annual payment of £1,500 and a market interest rate of 5% can be calculated using the formula for the present value of an ordinary annuity.
To calculate the present value, we can use the formula:
PV = C × [1 - (1 + r)^(-n)] / r
Where PV is the present value, C is the annual payment, r is the interest rate, and n is the number of years.
Plugging in the given values, we have:
C = £1,500
r = 5% or 0.05
n = 10
Using the formula, we can calculate:
PV = £1,500 × [1 - (1 + 0.05)^(-10)] / 0.05
PV = £1,500 × [1 - (1.05)^(-10)] / 0.05
PV = £1,500 × [1 - 0.613913] / 0.05
PV = £1,500 × 0.386087 / 0.05
PV = £1,500 × 7.72174
PV = £11,582.61
Therefore, the present value of the 10-year ordinary annuity with an annual payment of £1,500 and a market interest rate of 5% is approximately £11,582.61.
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Suppose a firm produces airplanes using metal. The metal input will be a flow if O A. it is measured in periods. B. it is measured in days. O C. it is measured in months. OD. it is measured in years. O E. all of the above.
The metal input for airplane production can be measured in various time periods, including periods, days, months, and years.
In what time periods can the metal input for airplane production be measured?The measurement of the metal input for airplane production depends on the specific context and the needs of the firm. The choice of time period for measuring the metal input can vary depending on factors such as the production cycle, inventory management, and the level of detail required for analysis. For example, in a short-term perspective, the metal input might be measured in periods, which could refer to shorter time intervals such as weeks or months. On the other hand, if the focus is on long-term planning or analysis, the metal input might be measured in years to capture a broader picture. Additionally, the measurement could also be done in days or months based on specific operational considerations.
The choice of time period for measuring inputs in production processes depends on various factors, including the industry, production cycle, and analytical needs. Different time periods offer different levels of detail and allow for different types of analysis. Understanding the appropriate time period for measuring inputs is crucial for accurate data analysis and decision-making in production and operations management.
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question 1 (25 points) Show that the parity. Black-Scholes-Merton formulas for European call and put options satisfy put-call parity
By substituting the Black-Scholes-Merton formulas for European call and put options into the put-call parity equation, it can be shown that they satisfy the parity relationship.
The put-call parity is a fundamental relationship in options pricing theory that states the relationship between the prices of European call and put options with the same underlying asset, strike price, and expiration date. It is expressed as:
[tex]C-P=S-\frac{X}{(1+r)^{t}}[/tex]
where C is the price of the call option, P is the price of the put option, S is the current price of the underlying asset, X is the strike price, r is the risk-free interest rate, and t is the time to expiration.
The Black-Scholes-Merton formulas for European call and put options, based on the assumptions of no dividends, no transaction costs, and efficient markets, are given by:
Call Option Price (C) = S * N(d1) - X * e^(-rt) * N(d2)
Put Option Price (P) = X * e^(-rt) * N(-d2) - S * N(-d1)
By substituting these formulas into the put-call parity equation, we can show that they satisfy the parity relationship. The calculations involve substituting the expressions for C and P into the put-call parity equation and simplifying algebraically to obtain the same result on both sides of the equation. This demonstrates the validity of put-call parity for the Black-Scholes-Merton formulas.
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a) Using examples, discuss the other factors that may be currently contributing to increased stress among employees.
b) As a Human Resource student, what are some of the solutions you can suggest to these organizations to address the problem of increased stress among the workforce.
Increased stress among employees can be attributed to factors such as workload demands, lack of work-life balance, and inadequate organizational support.
What are some other factors contributing to increased stress among employees?The factors that contribute to increased stress among employees. Stress in the workplace can stem from various sources, including heavy workload demands, unrealistic deadlines, and the pressure to meet performance targets. In today's fast-paced and competitive business environment, employees often find themselves juggling multiple tasks and responsibilities, which can lead to chronic stress and burnout. Additionally, the blurring of boundaries between work and personal life due to technology advancements has further eroded work-life balance, causing employees to feel overwhelmed and unable to disconnect. The lack of adequate support from the organization, such as insufficient resources, unclear expectations, and limited opportunities for growth and development, can also contribute to heightened stress levels. These factors, when combined, create a challenging and stressful work environment for employees.
Organizations can take several measures to address the problem of increased stress among the workforce. Firstly, it is crucial to conduct regular assessments and identify specific stressors within the work environment. This could involve analyzing workload distribution, evaluating the effectiveness of communication channels, and reviewing policies related to work-life balance. Once the stressors are identified, organizations can implement targeted interventions. These interventions may include providing training programs on stress management and resilience, promoting flexible work arrangements, and encouraging open communication channels to address concerns and provide emotional support. Moreover, organizations should prioritize employee well-being by fostering a supportive culture that values work-life balance, recognizes achievements, and promotes self-care. Implementing employee assistance programs (EAPs) and wellness initiatives can also contribute to stress reduction and overall employee well-being. By actively addressing the root causes of stress and promoting a healthy work environment, organizations can create a more productive and engaged workforce.
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Suppose the risk-free rate is 7% per annum and the dividend yield on a stock index over the next three months is 2% per annum. All interest rates and dividend yields are continuously compounded. If the stock index is trading at £1,000, what is the implied price of the 6-month stock index future contracts? Please round the answer to the nearest 0.01.
1051.27
1025.32
1012.58
1038.21
None of the above
To calculate the implied price of the 6-month stock index future contracts, we need to use the cost of carry model. The cost of carry model states that the futures price is equal to the spot price multiplied by the e^(cost of carry x time to expiration).The answer is option D, 1038.21.
Here, the cost of carry = risk-free rate - dividend yield = 7% - 2% = 5% per annum.
The time to expiration is 6/12 = 0.5 years.
Using the formula, we get:
Futures price = 1000 x e^(0.05 x 0.5) = 1038.21
Therefore, the implied price of the 6-month stock index future contracts is £1038.21.
The answer is option D, 1038.21.
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____ is a collection of applications that supports decision makers by providing access to a shared environment and information a. Firmware b. Databaseware c. Geographic information software od. Collaboration software
Collaboration software is a collection of applications that supports decision makers by providing access to a shared environment and information. The correct answer is d. Collaboration software.
It enables individuals or teams to work together, communicate, and share resources regardless of their physical locations. This type of software promotes collaboration and improves decision-making processes by facilitating real-time communication, file sharing, document editing, and task management.
Collaboration software often includes features such as instant messaging, video conferencing, shared calendars, project management tools, and document collaboration capabilities. It allows decision makers to access and exchange information, brainstorm ideas, coordinate activities, and make informed decisions collectively.
By providing a centralized platform for collaboration, this software enhances productivity, efficiency, and collaboration among decision makers. It streamlines workflows, reduces communication gaps, and fosters a more cohesive decision-making process by ensuring that all stakeholders have access to relevant information and can contribute effectively. So, the correct answer is d. Collaboration software.
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The law of diminishing marginal returns refers to the situation
in which _______ eventually declines as more of the variable input
is employed, given a certain amount of the fixed input.
The law of diminishing marginal returns refers to the situation in which the marginal product eventually declines as more of the variable input is employed, given a certain amount of the fixed input. The correct answer is option A.
The law of diminishing marginal returns states that as more units of a variable input are added to a production process while keeping the fixed inputs constant, the additional output generated by each additional unit of the variable input will eventually decrease.
This occurs because the fixed inputs become more and more utilized, and thus, less efficient at producing additional output.
Initially, when a few variable inputs are added, the marginal product may increase due to specialization and division of labor. However, after a certain point, adding more variable inputs causes the marginal product to decline because the fixed inputs can no longer efficiently support the increasing number of variable inputs.
This results in diminishing returns to scale and higher marginal costs, as more and more variable inputs are required to produce an additional unit of output.
In summary, the law of diminishing marginal returns highlights that marginal product will decline when more variable inputs are employed, given a certain amount of fixed inputs. Therefore, the correct answer is option A.
This phenomenon has important implications for businesses, as they must balance the utilization of resources to maximize their efficiency and productivity.
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Complete Question :
The law of diminishing marginal returns refers to the situation in which _______ eventually declines as more of the variable input is employed, given a certain amount of the fixed input.
A. marginal product
B. average cost
C. average revenue
D. marginal cost
If the required reserve ratio is one-third, currency in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, calculate the M1 money multiplier.
The total money supply in the economy, given the parameters provided, is $3,636 billion.The M1 money multiplier can be calculated using the formula: M1 Money Multiplier = 1 / Required Reserve Ratio.
In this case, the required reserve ratio is one-third, or 0.33. Therefore, the M1 money multiplier would be 1 / 0.33 = 3.03.
To calculate the M1 money supply, we can use the formula: M1 Money Supply = Currency in Circulation + Checkable Deposits.
Substituting the given values, we get:
M1 Money Supply = $300 billion + $900 billion
M1 Money Supply = $1,200 billion
Finally, we can calculate the total money supply using the formula: Total Money Supply = M1 Money Supply x M1 Money Multiplier.
Substituting the values we just calculated, we get:
Total Money Supply = $1,200 billion x 3.03
Total Money Supply = $3,636 billion
Therefore, the total money supply in the economy, given the parameters provided, is $3,636 billion.
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Match the terms with the definitions/examples. [Choose ] Tells whether a company can pay all its current liabilities using the most liquid of assets Measure a company's success in using assets to earn income. [Choose ] [Choose ] The practice of comparing a company with other companies that are similar. Indicates how often goods are being "cleared off the shelf" [Choose ] Shows the proportion of a [Choose ] company's assets that are financed with debt. Reflects the net income for each [Choose ] share of the company's outstanding common stock Measures a company's success [Choose ] in using investor's capital to earn income or value. ✓ [Choose ] Quick ratio Return on equity Earnings per share Inventory turnover Return on assets Debt to assets ratio Benchmarking
Quick ratio: Tells whether a company can pay all its current liabilities using the most liquid of assets.
Return on equity: Measures a company's success in using assets to earn income.
Benchmarking: The practice of comparing a company with other companies that are similar.
Inventory turnover: Indicates how often goods are being "cleared off the shelf."
Debt to assets ratio: Shows the proportion of a company's assets that are financed with debt.
Earnings per share: Reflects the net income for each outstanding common stock share of the company.
Return on assets: Measures a company's success in using investor's capital to earn income or value.
The quick ratio is a financial metric that assesses a company's ability to pay off its current liabilities using its most liquid assets, such as cash and cash equivalents. It provides insight into the company's short-term liquidity and its ability to meet immediate financial obligations without relying on the sale of inventory or other less liquid assets.
Return on equity (ROE) is a financial ratio that measures a company's efficiency in utilizing its shareholders' equity to generate income. It indicates the return generated for each unit of equity invested in the company and is a key indicator of profitability and value creation for shareholders.
Benchmarking is the practice of comparing a company's performance, strategies, and practices with those of other similar companies in the industry. It helps identify areas of strength, weaknesses, and opportunities for improvement. By analyzing key performance indicators and industry benchmarks, companies can set performance targets and implement strategies to enhance their competitiveness and overall performance.
Inventory turnover is a metric that shows how efficiently a company is managing its inventory by measuring the number of times inventory is sold and replaced over a given period. It provides insights into the demand for a company's products and how quickly they are being sold. A higher inventory turnover ratio suggests that goods are being sold at a faster rate, which can indicate effective inventory management and cash flow generation.
The debt to assets ratio is a financial ratio that indicates the proportion of a company's assets that are financed with debt. It assesses the level of financial risk and the extent to which a company relies on borrowed funds to support its operations and growth. A higher debt to assets ratio indicates a higher level of financial leverage and potential risk associated with debt obligations.
Earnings per share (EPS) is a financial metric that reflects the net income attributable to each outstanding common stock share of a company. It provides insight into a company's profitability on a per-share basis and is widely used by investors to assess the company's financial performance and potential returns.
Return on assets (ROA) is a financial ratio that measures a company's ability to generate profit from its assets. It calculates the company's net income as a percentage of its total assets and indicates how efficiently a company utilizes its assets to generate earnings. A higher ROA signifies better asset utilization and profitability.
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please conclude what you have learnt from about the etiquette basic table manner , your dress up , your behavior , how can you eat with special guest or friend or your office client and use dinning eating materials? Please also make a list of your perceived important dining etiquette and table manners.
Important dining etiquette and table manners include: 1. Dress appropriately for the occasion. 2. Practice good hygiene and table manners. 3. Wait for everyone to be served before starting to eat.
Hygiene refers to practices and measures taken to maintain cleanliness, health, and prevent the spread of diseases. It encompasses personal hygiene, environmental hygiene, and public health. Personal hygiene includes habits like regular handwashing, oral hygiene, and proper sanitation practices. Environmental hygiene involves maintaining cleanliness in surroundings, including proper waste disposal and sanitation facilities. Public health hygiene focuses on community-wide measures to prevent the spread of diseases, such as vaccinations, disease surveillance, and promoting healthy behaviors. Practicing good hygiene is essential for promoting well-being and preventing the transmission of infectious diseases.
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The Dow Jones Industrial Average is a well-known index of equity prices, but
includes only 30 stocks. Consider a much broader measure of the stock market the
market value of corporate equities in nonfinancial corporations (FRED code:
MVEONWMVBSNNCB)- which sums the price of each stock times the number of
outstanding shares. After plotting it, comment on its pattern since the mid-1990s.
The Dow Jones Industrial Average (DJIA) is an index that represents the performance of 30 major U.S. companies. While it is a popular and widely recognized indicator of the stock market, it has limitations due to its small number of stocks.
A broader measure of the stock market is the market value of corporate equities in nonfinancial corporations (FRED code: MVEONWMVBSNNCB), which takes into account the price of each stock multiplied by the number of outstanding shares.
Upon plotting the market value of corporate equities in nonfinancial corporations since the mid-1990s, you would likely observe a few key patterns:
1. A steady increase in the late 1990s, mainly driven by the growth of the technology sector and the dot-com bubble.
2. A sharp decline in the early 2000s due to the burst of the dot-com bubble, followed by a recovery period.
3. Another period of growth until the 2007-2008 financial crisis, which led to a significant drop in the market value.
4. A long-term upward trend since the financial crisis, with occasional fluctuations due to various economic events and uncertainties.
These patterns reflect the overall market sentiment and macroeconomic factors that have influenced the U.S. stock market since the mid-1990s.
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A lottery claims its grand prize is $2 million, payable over 4 years at $500,000 per year. If the first payment is made four years from now, what is this grand prize worth today? Use an interest rate of 6% 6. What is the yield to maturity on a simple loan for $3 million that requires a repayment of $5 million in five years' time?
The YTM on the loan is -17.81%. This negative value indicates that the loan is a discounted loan, meaning that the borrower is receiving less than the face value of the loan.
For the first question, the present value of the grand prize can be calculated by using the formula for present value of an annuity:
PV = C * [(1 - (1 + r)^-n)/r]
where PV is the present value, C is the cash flow per period, r is the interest rate, and n is the number of periods.
In this case, C = $500,000, r = 6%, and n = 4. Plugging in these values, we get:
PV = $500,000 * [(1 - (1 + 0.06)^-4)/0.06]
PV = $1,627,320.94
Therefore, the grand prize is worth $1,627,320.94 today.
The concept of present value is used to calculate the current worth of a future cash flow. This is because money has time value - a dollar today is worth more than a dollar received in the future, due to the opportunity cost of not having that money available for investment or consumption. To account for this time value, we discount the future cash flows by an appropriate interest rate.
In the case of the lottery grand prize, the cash flow is an annuity, which means that it is a series of equal payments made at regular intervals. The formula for present value of an annuity takes into account the number of payments, the interest rate, and the size of each payment.
For the second question, the yield to maturity (YTM) on a simple loan can be calculated by using the formula:
YTM = [(Face value/Present value)^(1/n) - 1] * m
where Face value is the amount borrowed, Present value is the amount to be repaid, n is the number of years to maturity, and m is the number of compounding periods per year.
In this case, Face value = $3 million, Present value = $5 million, n = 5, and m = 1 (assuming annual compounding). Plugging in these values, we get:
YTM = [(3,000,000/5,000,000)^(1/5) - 1] * 1
YTM = -0.1781
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A shift of the demand curve for fried chicken would NOT be caused by a change in:
A shift of the demand curve for fried chicken would not be caused by a change in the price of fried chicken itself. The price of a good or service does not shift the demand curve.
However, a shift in the demand curve can be caused by various factors, including:
Consumer income: Changes in consumer income can lead to a shift in the demand curve for fried chicken. For example, if consumer incomes increase, the demand for fried chicken may rise as consumers have more disposable income to spend on food.
Prices of related goods: Changes in the prices of related goods can affect the demand for fried chicken. For instance, if the price of beef increases, consumers may switch to purchasing more fried chicken as a substitute, resulting in a shift in the demand curve.
Consumer tastes and preferences: Changes in consumer tastes and preferences can lead to a shift in the demand curve. For example, if there is a widespread health consciousness trend and consumers increasingly prefer healthier food options, the demand for fried chicken may decrease, shifting the demand curve to the left.
Population demographics: Changes in population demographics, such as population growth or changes in age distribution, can impact the demand for fried chicken. A growing population or an aging population may lead to an increase in demand.
Advertising and marketing: Effective advertising and marketing campaigns can influence consumer perceptions and create shifts in the demand curve for fried chicken.
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which major industry was transformed by use of the assembly line in the early 20th century
The major industry that was transformed by the use of the assembly line in the early 20th century was the automotive industry.
The assembly line revolutionized the way cars were manufactured by introducing a more efficient and standardized production process. Prior to the assembly line, automobiles were built using a labor-intensive and time-consuming method where each car was individually crafted by skilled workers.
However, with the implementation of the assembly line, pioneered by Henry Ford, cars could be produced at a much faster rate and with reduced costs. This allowed for mass production, making automobiles more affordable and accessible to the general population. The assembly line drastically transformed the automotive industry and set the stage for the modern production methods used today.
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The product vision defines what the product is, who uses it, and how it supports the customer’s _____.
a. professional reputation
b. financial gains
c. release plan
d. business strategy
The product vision defines what the product is, who uses it, and how it supports the customer’s business strategy.
A product is a tangible item, service, or idea that is created, developed, and offered by a business or organization to fulfill customer needs or wants. It can range from physical goods, such as electronics or clothing, to intangible offerings like software, insurance, or consulting services. Products are designed, manufactured, packaged, and marketed to provide value and solve specific problems for customers. They can have features, functionalities, and unique selling points that differentiate them from competitors. Effective product development involves market research, identifying customer preferences, ensuring quality, and aligning with market demands. Successful products meet customer expectations, deliver value, and contribute to the overall success of a business.
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A non-dividend paying stock has an initial price of $1,000, a continuous compounded expected return of 20% p.a., and volatility of 35% p.a.
The process for the stock price is Δ=Δ+√Δ, and the time interval is one month. Answer the following questions:
i. Calculate the stock price at the end of the first month, where є = 0.62.
ii. Calculate the stock price at the end of the second month, where є = -0.28.
i, The stock price at the end of the first month is approximately $1,016.75. ii, At the end of the second month, it is around $1,033.16.
i, To calculate the stock price at the end of the first month, we'll use the formula for continuous compounded expected return
S₁ = S₀ * [tex]e^{u * t}[/tex]
Where:
S₁ = Stock price at the end of the first month
S₀ = Initial stock price = $1,000
u = Continuous compounded expected return = 20% p.a. = 0.20
t = Time interval = 1 month = 1/12 years
Plugging in the values, we have
S₁ = $1,000 * [tex]e^{0.20 * (1/12)}[/tex]
Simplifying further:
S₁ = $1,000 * [tex]e^{0.01667}[/tex]
S₁ ≈ $1,000 * 1.016746
S₁ ≈ $1,016.75
Therefore, the stock price at the end of the first month is approximately $1,016.75.
ii, Now, to calculate the stock price at the end of the second month, we'll use the formula for the stock price process:
Δ = ΔS + √(ΔS)
Where:
ΔS = Change in stock price
Δ = Standard normal random variable
√ = Square root
Given that є = -0.28 for the second month, we'll plug in the values to calculate ΔS
-0.28 = ΔS + √(ΔS)
Let's solve this equation
Let's assume ΔS = x
-0.28 = x + √(x)
Square both sides
0.0784 = x² + x
Rearrange the equation
x² + x - 0.0784 = 0
We can solve this quadratic equation using the quadratic formula
x = (-b ± √(b² - 4ac)) / (2a)
In our case
a = 1
b = 1
c = -0.0784
Plugging these values into the formula, we have
x = (-1 ± √(1 - 4(1)(-0.0784))) / (2(1))
Simplifying further
x = (-1 ± √(1 + 0.3136)) / 2
x = (-1 ± √(1.3136)) / 2
x = (-1 ± 1.1468) / 2
Now we'll calculate the two possible values of x
x₁ = (-1 + 1.1468) / 2 ≈ 0.0734
x₂ = (-1 - 1.1468) / 2 ≈ -1.0734
Since є = -0.28, we'll take x = -1.0734 as the value for ΔS.
Now we can calculate the stock price at the end of the second month
S₂ = S₁ * [tex]e^{u * t}[/tex] = S₁ * [tex]e^{0.20 * (1/12)}[/tex]
Plugging in the values
S₂ = $1,016.75 *[tex]e^{0.20 * (1/12)}[/tex]
Simplifying further
S₂ = $1,016.75 * [tex]e^{0.01667}[/tex]
S₂ ≈ $1,016.75 * 1.016782
S₂ ≈ $1,033.16
Therefore, the stock price at the end of the second month is approximately $1,033.16.
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Dorian bought a stock for $ 56 and two months later sold it for
$ 52. During the two months, the stock's dividend yield was 1.9%.
What was Dorian's return on the investment?
Dorian's return on the investment is approximately -0.0609, or -6.09% (negative return), indicating a loss on the investment.
How to solve for the returnFirst, let's calculate the change in stock price:
Change in stock price = Selling price - Buying price
Change in stock price = $52 - $56 = -$4
Next, let's calculate the dividend received during the two months:
Dividend received = Buying price * Dividend yield * Time period
Dividend received = $56 * 0.019 * (2/12) [assuming dividend yield is an annual percentage]
Dividend received = $0.5893
Now, let's calculate the return on the investment:
Return on investment = (Change in stock price + Dividend received) / Buying price
Return on investment = (-$4 + $0.5893) / $56
Return on investment = -$3.4107 / $56
Return on investment ≈ -0.0609
Dorian's return on the investment is approximately -0.0609, or -6.09% (negative return), indicating a loss on the investment.
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Elaborate the importance of financial management to all managers. Explain three (3) advantages of the organisational forms a company might have as it evolves from a start-up to a major corporation.
Financial management is crucial for all managers as it enables them to make informed decisions, allocate resources effectively, and achieve the organization's financial goals.
As a company evolves from a start-up to a major corporation, it can benefit from various organizational forms, including limited liability, access to capital markets, and improved management structure.
Financial management is essential for all managers, regardless of their functional areas, as it provides them with the necessary tools to understand and analyze financial data, evaluate investment opportunities, and allocate resources efficiently.
It helps managers make informed decisions that align with the organization's financial objectives, such as maximizing profitability, optimizing cash flow, and ensuring long-term financial sustainability.
As a company evolves from a start-up to a major corporation, it can take advantage of different organizational forms, which offer several advantages.
Firstly, establishing a limited liability structure provides legal protection to shareholders by separating their personal assets from business liabilities, reducing individual financial risk.
Secondly, as the company grows, it gains access to capital markets, allowing it to raise funds through debt or equity financing to support expansion plans, research and development, or acquisitions.
Thirdly, with growth, there is an opportunity to improve the management structure by appointing specialized executives, implementing stronger corporate governance practices, and enhancing operational efficiency through economies of scale.
In summary, financial management plays a crucial role in guiding managers in decision-making and resource allocation.
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Which of the following are characteristics of the distribution technique of allocating costs?
a. distribution uses primary cost elements to allocate costs to receivers
b. distribution can only involve one receiver
c. distribution uses secondary cost elements to allocate costs to receivers
d. in distribution, cost can be combined into a new cost element prior to allocation of costs
e. distribution can only involve one cost element
The characteristics of the distribution technique of allocating costs include using primary and secondary cost elements, combining costs into new elements, and allocating costs to multiple receivers.
What is Distribution Technique? Characteristics Of The Distribution Technique.The distribution technique in cost accounting refers to the process of allocating or assigning costs to different cost objects or cost centers within an organization.
It involves the systematic distribution of costs based on various criteria, such as cost drivers, activity levels, or predetermined allocation methods.
The correct characteristics of the distribution technique of allocating costs are:
a. Distribution uses primary cost elements to allocate costs to receivers.
c. Distribution uses secondary cost elements to allocate costs to receivers.
d. In distribution, costs can be combined into a new cost element prior to the allocation of costs.
These characteristics reflect common practices in cost allocation, where costs are distributed among different cost centers or recipients based on primary and secondary cost elements.
Additionally, costs can be combined or aggregated into new cost elements to simplify the allocation process and improve accuracy.
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You expect Sanford stock to pay annual dividends of $2.32, $3.51, and $4.48 in each of the next three years, with the first dividend payment occurring one year from today. You also expect a stock price of $26 immediately after the stock pays the third annual dividend (i.e., exactly three years from today). What is Sanford's intrinsic value if the required rate of return is 14.5%? Round your answer to the nearest penny.
Sanford's intrinsic value is approximately $25.45.
To calculate the intrinsic value of Sanford stock, we need to determine the present value of the future dividends and the future stock price. We can use the discounted cash flow (DCF) method to accomplish this.
Step 1: Calculate the present value of the future dividends.
Using the formula for the present value of a growing perpetuity, we can calculate the present value of the three dividends:
PV(dividends) = D1 / (1 + r) + D2 / (1 + r)² + D3 / (1 + r)³
Where:
D1 = First dividend payment = $2.32
D2 = Second dividend payment = $3.51
D3 = Third dividend payment = $4.48
r = Required rate of return = 14.5% or 0.145
PV(dividends) = $2.32 / (1 + 0.145) + $3.51 / (1 + 0.145)² + $4.48 / (1 + 0.145)³
PV(dividends) = $2.0264 + $2.7724 + $3.1724
PV(dividends) = $7.9712
Step 2: Calculate the present value of the future stock price.
To calculate the present value of the future stock price, we'll use the formula for the present value of a single amount:
PV(stock price) = FV / (1 + r)ⁿ
Where:
FV = Future stock price = $26
n = Number of years = 3
PV(stock price) = $26 / (1 + 0.145)³
PV(stock price) = $26 / 1.486876125
PV(stock price) = $17.4765
Step 3: Calculate the intrinsic value.
The intrinsic value of the stock is the sum of the present values of the dividends and the present value of the future stock price:
Intrinsic value = PV(dividends) + PV(stock price)
Intrinsic value = $7.9712 + $17.4765
Intrinsic value = $25.4477
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(a) Suppose two people, person 1 and person 2, want to produce a playground to share between them. The value of the playground of size s to each person is Vs, where s is the number of pounds spent building it. Show that under voluntary contributions the size of the playground is and that the efficient size is 1. S > 92 1000 (b) A toy factory operates in a perfectly competitive market. Setting up and constructing a factory costs 2 million. The marginal cost of the qth toy is 10 for all q < 100 and for q > 100 the marginal cost is (i) What are average total costs? (ii)What is short-run supply? (iii) What is the long-run competitive supply of toys?
(a) Under voluntary contributions, the size of the playground would be determined by the point where
the marginal benefit (MB) equals the marginal cost (MC) for each person. Let's assume person 1 and person 2 have the same marginal benefit function, which is represented by Vs. The total value of the playground to both persons would be 2Vs.To find the size of the playground, we equate the total marginal benefit to the total marginal cost:
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select the key determinants of economic growth, according to current theory.
Economic growth is the increase in the production of goods and services in an economy over time. There are several key determinants of economic growth, according to current economic theory. These determinants can be divided into two categories: supply-side factors and demand-side factors.
Human capital: This refers to the knowledge, skills, and abilities of the workforce. An economy with a well-educated and skilled workforce is likely to experience higher levels of economic growth. Physical capital: This refers to the stock of machinery, equipment, and infrastructure that is used to produce goods and services. An economy with a high level of physical capital is likely to experience higher levels of economic growth.
Technological progress: This refers to the development and implementation of new technologies that increase productivity and efficiency. An economy that is able to adopt new technologies quickly is likely to experience higher levels of economic growth. Demand-side factors refer to the factors that affect the consumption of goods and services. These include: Investment: This refers to the spending on physical capital, research and development, and other activities that increase the productive capacity of an economy.
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Product launch in Uruguay When it comes to launching a product in another cultural environment, there are obstacles even when the country in the question seems to have a business culture similar to that where the product is already being sold. Read the case and answer the questions that follow. A few months after an Argentinian food manufacturing company had launched a number of product categories in Uruguay, it decided that the next launch would be cake and dessert mixes. The sale of these products would help to build the brand rapidly and would contribute high volumes to the company's operations. It was entering a market where there was only one competitor, and it had a 90 per cent market share. The company thought the launch would (literally) be a 'piece of cake': the country's culture was similar to its own, so what could go wrong? The products were launched together with a TV commercial where the only change was to give the voice-over a Uruguayan accent. About three months later, the products were still on the shelves. The distributor was not sending any new orders but calling instead to ask what should be done next. The company decided to run focus groups to find out what was happening. What it discovered was surprising. Consumers, women aged twenty to forty-five, middle class mothers who were the purchase decision-makers for this type of product, explained that it was a disgrace to buy a pre- packaged cake or dessert. The true identity of a mother or a wife was only proven when she could cook something delicious for her loved ones. These women even prepared gelatine at home out of chicken bones (a very time-consuming and disgusting process). Making cakes from packets was out of the question: only the housewives could give them the right flavour and ingredients -and cakes were easy to make anyway. There was a market for pre-packaged ingredients, but only a small one, for those occasions when the housewives had no time to prepare cakes in the normal way. The company was not prepared for this feedback and started wondering whether its main competitor was aware of this. It was time to start a campaign to educate the customer. Source: adapted from Browaeys and Trompenaars (2000): Case 6 Questions 1- What should the company have done to make the launch of its cake mixes a success?
Conducting market research, testing the product with focus groups, and partnering with local influencers or chefs could have helped the company to understand the unique cultural attitudes and preferences in Uruguay and adapt their product and marketing strategy to make the launch of their cake mixes a success.
To make the launch of its cake mixes a success, the company should have conducted thorough market research to understand the cultural attitudes and preferences towards pre-packaged cakes and desserts in Uruguay. This would have allowed them to tailor their product and marketing strategy accordingly. For example, they could have developed a product that catered to the specific needs and preferences of Uruguayan consumers. They could have also conducted focus groups before the launch to test the product and gather feedback from potential customers.
Furthermore, partnering with local influencers or chefs to promote the convenience and quality of their products could have been an effective marketing strategy. These influencers or chefs could have demonstrated how the pre-packaged cake mixes could save time and effort for busy mothers, while still providing delicious and high-quality desserts for their families.
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FINANCIAL MODELING
QUESTION 1
Thabo's initial wealth is R100 000. Suppose he borrows R50 000 at 6% interest rate and invest the entire R150 000 in a risky asset with an expected return of 15%. Determine the expected rate of return for his portfolio
To determine the expected rate of return for Thabo's portfolio, we need to calculate the weighted average return of his investments.
Thabo's initial wealth is R100 000, and he borrows R50 000 at 6% interest rate. This means he has R150 000 to invest in total.
He invests the entire R150 000 in a risky asset with an expected return of 15%.
The weight of this investment in his portfolio is 1, as it makes up 100% of his investments.
Therefore, the expected rate of return for his portfolio can be calculated as:
Expected rate of return = (Weight of investment 1 x Expected return of investment 1) + (Weight of investment 2 x Expected return of investment 2)
Expected rate of return = (1 x 15%) + (0 x 6%)
Expected rate of return = 15%
Therefore, Thabo's expected rate of return for his portfolio is 15%.
In financial modeling, it is important to consider the impact of different investments on one's portfolio, as well as the impact of borrowing on one's overall wealth and asset allocation. It is also important to regularly review and adjust one's portfolio to ensure it aligns with their financial goals and risk tolerance.
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an individual does not have an attitude until he or she responds to an entity on a:
An individual's attitude remains undefined until they respond to an entity on a 1², highlighting the importance of interaction and engagement in shaping one's perspective and opinions.
Determine how to work the subscript 1 indicates?In the given statement, the subscript 1 indicates that the individual is responding to a specific entity. The superscript ² is used to denote the concept of attitude, which refers to an individual's feelings, opinions, or beliefs towards something or someone.
The statement suggests that until the individual interacts with or responds to the entity in question, their attitude remains undefined or non-existent. It implies that attitudes are formed or expressed as result of the individual's response to the entity or situation at hand.
The use of subscripts and superscripts helps clarify the specific context and relationships described in the statement.
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Reducing the number of new product ideas based on specific criteria is a function of product _______, whereas determining the profitability of those ideas is a function of product _______.
Product screening reduces the number of fresh product ideas based on certain criteria, while product evaluation determines their profitability.
New product concepts are screened for practicality and success using specified criteria. In this stage, the firm filters out concepts that don't meet its strategic goals, market demand, technological feasibility, or financial sustainability. The purpose is to select the best concepts for development. After product screening, product evaluation follows. To assess profitability and ROI, product evaluation analyses the remaining concepts. This review comprises assessing market demand, doing market research, analyzing competition, estimating costs and pricing, and forecasting sales and profitability. The goal is to identify the firm's best financial ideas.
In summary, product screening reduces the number of new product ideas based on particular criteria, while product evaluation evaluates the remaining ideas' profitability and financial viability.
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Compare and contrast the HRM practices followed by
both private and public sector organizations and provide
recommendations, if any, to improve the practices. (300-350
words)
Dealing with and/or regulating the demands and interests of "the whole," which is frequently the nation, is what public management implies. Private management entails looking after a person's or a group's more specific requirements.
Training workers and coordinating their personal development goals with the overarching objectives of the organisation or business are the main concerns of human resource development. The management of human resources places more of an emphasis on compliance, benefits, pay, and labour relations.
Human resource management takes a more strategic approach, predicting the demands of the business and regularly monitoring and changing all systems. Personnel management is concerned with maintaining all administrative and personnel systems.
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What is a major reason why an organization might foster misconduct?
options:
Employees are punished for unethical activities.
The code of conduct is used as guidelines rather than formal rules.
Employees follow their own moral philosophies rather than shared corporate values.
The employees that work within them are bad.
Pressures to succeed create opportunities for rewarding unethical conduct.
A major reason why an organization might foster misconduct is the pressures to succeed create opportunities for rewarding unethical conduct. The correct answer is e.
This can happen when an organization puts too much emphasis on achieving short-term goals and ignores the importance of ethical behaviour. When employees are under intense pressure to meet targets or deadlines, they may feel justified in taking shortcuts or engaging in unethical behaviour to get the job done. In some cases, this behaviour may even be rewarded or condoned by management, creating a culture of misconduct within the organization.
It can be detrimental to ethical standards inside an organization when there is intense pressure to produce outcomes and unethical behaviour is either rewarded or not sufficiently penalized. If an employee thinks that engaging in wrongdoing would result in personal gain, progress, or protection from adverse results, they may feel encouraged or justified in doing so. It is important for organizations to prioritize ethical behaviour and create a culture that encourages employees to act in accordance with shared corporate values.
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