As a general matter, banks are high leverage and low margin entities. Their capital levels are generally in the area of percentage of 8% assets under Basel III.
Investors view a bank's net worth or equity value as being the difference between its assets and liabilities, or bank capital. The asset component of a bank's capital is made up of cash, bonds, and loans with interest for e.g., mortgages, letters of credit, and inter-bank loans. The liabilities portion of a bank's capital includes loan-loss reserves and any outstanding debt. The amount by which creditors would still be paid if a bank had to liquidate its assets is known as capital.
Tiers of regulatory bank capital are established by Basel III. They are based on a bank's subordination and its capacity to absorb losses, with a clear separation between capital instruments used when the bank is still solvent and those used after it declares bankruptcy. The book value of common shares, paid-in capital, and retained earnings less goodwill and any other intangibles make up common equity tier 1 (CET1). CET1 instruments must be of the highest subordination and lack maturity.
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A MNC want to convert (sell) EUR2,000,000 and USD5,000,000 to GBP.Market rates currently are:EUR1: GBP 0.8680 – 0.8695USD1: GBP 0.7692 - 0.7705How much GBP will that MNC receiveplease
The MNC will receive at least GBP5,582,000 from converting their EUR and USD to GBP. To find out how much GBP the MNC will receive, we need to multiply the amount of EUR and USD they have by the market rates.
For EUR, we will use the lower rate of 0.8680 to ensure we get the minimum amount of GBP they will receive.
EUR2,000,000 x 0.8680 = GBP1,736,000
For USD, we will also use the lower rate of 0.7692 to ensure we get the minimum amount of GBP they will receive.
USD5,000,000 x 0.7692 = GBP3,846,000
To find the total amount of GBP the MNC will receive, we add the two amounts together:
GBP1,736,000 + GBP3,846,000 = GBP5,582,000
Therefore, the MNC will receive at least GBP5,582,000 from converting their EUR and USD to GBP.
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Product Decisions Under Bottlenecked OperationsMill Metals Inc. has three grades of metal product, Type 5, Type 10, and Type 20. Financial data for the three grades are as follows:Type 5 Type 10 Type 20Revenues $43,000 $49,000 $56,500Variable cost $34,000 $28,000 $26,500Fixed cost 8,000 8,000 8,000Total cost $42,000 $36,000 $34,500Income from operations $ 1,000 $13,000 $22,000Number of units ÷ 5,000 ÷ 5,000 ÷ 5,000Income from operations per unit $ 0.20 $ 2.60 $ 4.40Mill's operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day, 7 days a week, and is a production bottleneck. The furnace hours required per unit of each product are as follows:Type 5: 6 hoursType 10: 6 hoursType 20: 12 hoursThe Marketing Department is considering a new marketing and sales campaign.Which product should be emphasized in the marketing and sales campaign in order to maximize profitability?Determining the unit contribution margin per furnace hour will assist in making your decision. Round the unit contribution margin to two decimal places.Unit contribution margin per furnace hourType 5Type 10Type 20
The product that should be emphasized in the marketing and sales campaign in order to maximize profitability is the one with the highest unit contribution margin per furnace hour.
To calculate the unit contribution margin per furnace hour, we need to first calculate the unit contribution margin for each product type. The unit contribution margin is the difference between the revenue per unit and the variable cost per unit.
For Type 5, the unit contribution margin is $43,000/5000 - $34,000/5000 = $1.80
For Type 10, the unit contribution margin is $49,000/5000 - $28,000/5000 = $4.20
For Type 20, the unit contribution margin is $56,500/5000 - $26,500/5000 = $6.00
Next, we need to calculate the unit contribution margin per furnace hour by dividing the unit contribution margin by the furnace hours required per unit of each product.
For Type 5, the unit contribution margin per furnace hour is $1.80/6 = $0.30
For Type 10, the unit contribution margin per furnace hour is $4.20/6 = $0.70
For Type 20, the unit contribution margin per furnace hour is $6.00/12 = $0.50
Therefore, the product with the highest unit contribution margin per furnace hour is Type 10, with a unit contribution margin per furnace hour of $0.70. This is the product that should be emphasized in the marketing and sales campaign in order to maximize profitability.
Unit contribution margin per furnace hour:
Type 5: $0.30
Type 10: $0.70
Type 20: $0.50
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Show what you know. Name a product or service. Describe thetarget customer. Tell what the manufacturer or business does to 1)differentiate and 2) position.
The iPhone is a product that is targeted towards tech-savvy individuals who value high quality and sleek design. Apple differentiates the iPhone from other smartphones by offering exclusive features and a unique operating system, and positions it as a premium product through pricing and marketing strategies.
A product that I will use as an example is the iPhone. The target customer for the iPhone is typically a tech-savvy individual who values high quality and sleek design in their mobile devices.
1) Differentiation: Apple differentiates the iPhone from other smartphones on the market by offering a unique operating system (iOS) and exclusive features such as Face ID and Animoji. They also focus on the design of the iPhone, consistently releasing new models with sleek and modern designs.
2) Positioning: Apple positions the iPhone as a premium product by pricing it higher than many other smartphones on the market. They also position the iPhone as a status symbol, using marketing campaigns that highlight the exclusivity and luxury of owning an iPhone.
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A company has 340,000 shares outstanding that sell for $84.49 per share. The company plans a 6-for-5 stock split. Assuming no market imperfections or tax effects, what will the stock price be after the split?
a. $82.48
b. $101.39
c. $84.49
d. $70.41
e. $80.47
The stock price after the split will be $70.41. Option D
What is a stock split?A stock split is a corporate action in which a company divides its existing shares into multiple shares. In this case, there is a 6-for-5 stock split, meaning that for every 5 shares held by shareholders, they will receive 6 shares.
Therefore, the total number of outstanding shares post-split is 6/5*340,000 = 408,000 shares. To find the new price per share post-split, we need to divide the original market capitalization (340,000*$84.49 = $28,781,600) by the total number of shares post-split (408,000).
$28,781,600 / 408,000 = $70.41, which is the new price per share post-split. Option D.
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Part B
On further analysis and discussion, Samantha and John agree to: a) the participating preferred, b) to create an ESOP immediately after Samantha’s Series A investment that has 15% share of the company by the end of year 5, and c) that the company will need to raise a $3 million Series B round of financing at the beginning of year 3 to achieve the earnings target by year 5. Series B investors are expected to have a hurdle rate of only 30%, in recognition of the progress made between now and Series B, and will invest in common equity (no participation/conversion preference).
9. Based on this new information, what share of the company should Samantha seek today? What price per share should she be willing to pay?
10. What share of the company will the Round 2 investors seek? What price per share will they be willing to pay?
11. Create a capitalization table to depict the pre-money and post-money valuation, the number of shares and the share price: (i) Before Series A (ii) after Series A (iii) after the creation of the ESOP, (iv) after Series B
Based on this new information, Samantha should seek a 25% share of the company today.
What is share?Share is a term used to describe the process of distributing something, such as a file, among a group of people. It is commonly used in the context of computer networking and the internet, where people can use various methods to share data.In the context of computer networking, share is a term used to describe the process of allowing multiple users to access a file or resource, such as a folder or a program, on a single computer or network. This type of sharing is typically done through a network protocol, such as the Server Message Block (SMB) protocol, which is used by Windows-based computers, or the Network File System (NFS) protocol, which is used by Linux and Unix-based computers.
9. Based on this new information, Samantha should seek a 25% share of the company today. She should be willing to pay a price per share equal to the pre-money valuation divided by the total number of shares outstanding.
10. The Round 2 investors should seek a 15% share of the company. They should be willing to pay a price per share equal to the post-money valuation of the company divided by the total number of shares outstanding.
11. (i) Before Series A – Pre-money Valuation: $2 million; Total Number of Shares Outstanding: 1,000,000; Share Price: $2.00.
(ii) After Series A – Pre-money Valuation: $2 million; Total Number of Shares Outstanding: 1,250,000; Share Price: $1.60.
(iii) After the Creation of the ESOP – Pre-money Valuation: $2 million; Total Number of Shares Outstanding: 1,500,000; Share Price: $1.33.
(iv) After Series B – Pre-money Valuation: $5 million; Total Number of Shares Outstanding: 1,750,000; Share Price: $2.86.
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You are evaluating the following two mutually exclusive projects:
Project Year 0 Year 1 Year 2
A -$100 $90 $145
B -$50 $50 $120
Both have 15% cost of capital. Using NPV profiles for Projects A and B, determine which project would be chosen under each of IRR rule and NPV rule. (Hint: Draw the NPV profiles.)
a. Cannot be determined.
b. B under IRR rule, and A under NPV rule
c. A under both IRR and NPV rules
d. A under IRR rule, and B under NPV rule
e. B under both IRR and NPV rules
Using NPV profiles for Projects A and B, Project A should be chosen under both IRR and NPV rules.
The correct answer is option c.
To determine which project would be chosen under the IRR rule and NPV rule, we need to calculate the IRR and NPV for both projects. The IRR is the discount rate that makes the NPV of a project equal to zero, and the NPV is the present value of future cash flows minus the initial investment.
For Project A:
IRR = 34.84%
NPV = $90/(1+15%) + $145/(1+15%)^2 - $100 = $90/1.15 + $145/1.3225 - $100 = $78.26 + $109.65 - $100 = $87.91
For Project B:
IRR = 41.42%
NPV = $50/(1+15%) + $120/(1+15%)^2 - $50 = $50/1.15 + $120/1.3225 - $50 = $43.48 + $90.70 - $50 = $84.18
Based on the calculations, Project A has a higher NPV ($87.91) than Project B ($84.18), so it would be chosen under the NPV rule.
Project A also has a higher IRR (34.84%) than Project B (41.42%), so it would be chosen under the IRR rule.
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Your company requires that all planned investment projects should have a positive net present value at the company cost of capital of 15%. Explain how this policy can lead to wrong investment decisions for the company.
The policy of requiring all planned investment projects to have a positive net present value at the company cost of capital of 15% can lead to wrong investment decisions for the company because it may reject projects that could potentially be profitable at a lower cost of capital.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. If the NPV is positive, it indicates that the project is expected to generate profits. However, the cost of capital plays a crucial role in calculating the NPV. The higher the cost of capital, the lower the NPV will be.
Therefore, if the company only accepts projects with a positive NPV at a cost of capital of 15%, it may reject projects that could be profitable at a lower cost of capital. For example, a project may have a positive NPV at a cost of capital of 10%, but a negative NPV at a cost of capital of 15%. In this case, the company would reject the project, even though it could be profitable at a lower cost of capital.
This policy can also lead to the company accepting projects that may not be profitable at a higher cost of capital. For example, a project may have a positive NPV at a cost of capital of 15%, but a negative NPV at a cost of capital of 20%. If the company's cost of capital increases in the future, the project may no longer be profitable.
In conclusion, the policy of requiring all planned investment projects to have a positive net present value at the company cost of capital of 15% can lead to wrong investment decisions for the company, as it may reject potentially profitable projects at a lower cost of capital and accept projects that may not be profitable at a higher cost of capital.
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Following are the financial statements of AB Ltd. for 2019. 3.400 400 1.200 200 500 100 600 400 500 102 Balance sheet (s in millions) Assets 2019 Liabilities and 2019 owners' equity Current assets: Current liabilities: Cash Accounts payable Accounts receivable Bills payable Inventory Total current liabilities Total current assets 1.100 Long-term liabilities: Long-term debt Fixed assets: Total long-term liabilities Property, plant, and 2.400 Shareholders' funds: equipment Less: Accumulated 2.100 Equity share capital depreciation (si per share) Net fixed assets Reserves & Surplus Total owners' equity 700 1.496 200 10 200 Income statement (S in millions) 2019 Sales Cost of goods sold Office and selling expenses Depreciation Earnings before interest and taxes Interest expense Earnings before taxes Taxes Net income Dividends Transfer to reserves and surplus Other information Number of shares Outstanding (millions) Price per share 1.488 607 881 200 635 300 500 246 Total assets 200 1.400 1.400 Total liability and owners' equity 7.31 A. From the aforementioned table, calculate the following: 1. Current Ratio 2. Acid-Test Ratio 3. Receivables Turnover 4. Inventory turnover 5. Debt Ratio 6. Equity Ratio 7. Debt to Equity Ratio 8. Times Interest Earned 9. Gross Profit Rate 10. Operating Profit Margin 11. Net Profit Margin 12. Return on Assets
Based on the data provided, 1. Current Ratio = 1.83 2. Acid-Test Ratio = 1.17 3. Receivables Turnover = 7.44 4. Inventory Turnover = 2.20 5. Debt Ratio = 0.57 6. Equity Ratio = 0.50 7. Debt to Equity Ratio = 1.14 8. Times Interest Earned = 6.35 9. Gross Profit Rate = 0.41 10. Operating Profit Margin = 0.43 11. Net Profit Margin = 0.17 12. Return on Assets = 0.18.
Based on the data provided in the table, the required measures are calculated using relevant formulas.
1. Current Ratio = Current Assets / Current Liabilities = 1,100 / 600 = 1.83
2. Acid-Test Ratio = (Current Assets - Inventory) / Current Liabilities = (1,100 - 400) / 600 = 1.17
3. Receivables Turnover = Sales / Accounts Receivable = 1,488 / 200 = 7.44
4. Inventory Turnover = Cost of Goods Sold / Inventory = 881 / 400 = 2.20
5. Debt Ratio = Total Liabilities / Total Assets = (600 + 200) / 1,400 = 0.57
6. Equity Ratio = Total Owners' Equity / Total Assets = 700 / 1,400 = 0.50
7. Debt to Equity Ratio = Total Liabilities / Total Owners' Equity = (600 + 200) / 700 = 1.14
8. Times Interest Earned = Earnings Before Interest and Taxes / Interest Expense = 635 / 100 = 6.35
9. Gross Profit Rate = (Sales - Cost of Goods Sold) / Sales = (1,488 - 881) / 1,488 = 0.41
10. Operating Profit Margin = Earnings Before Interest and Taxes / Sales = 635 / 1,488 = 0.43
11. Net Profit Margin = Net Income / Sales = 246 / 1,488 = 0.17
12. Return on Assets = Net Income / Total Assets = 246 / 1,400 = 0.18
All of these ratios provide insight into the financial health and performance of AB Ltd. The current ratio and acid-test ratio indicate the company's ability to pay its short-term liabilities, while the receivables turnover and inventory turnover ratios provide insight into the company's efficiency in managing its assets.
The debt ratio, equity ratio, and debt to equity ratio provide information about the company's capital structure and its reliance on debt financing. The times interest earned ratio measures the company's ability to meet its interest payments on debt. The gross profit rate, operating profit margin, and net profit margin provide insight into the company's profitability. Finally, the return on assets ratio measures the company's ability to generate income from its assets.
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In general, business writing should be _____.
a.
Easy to read quickly
b.
Dense and academic
c.
Light and full of fluff
d.
None of the above
Please select the best answer from the choices provided
A. Easy to read quickly. Business writing should be clear, concise, and direct. It should be written in a way that is easily understood and quickly communicated.
What is Business?Business is the activity of creating, buying, and selling goods or services to make a profit. It is a commercial enterprise that involves the exchange of money, goods, or services between two or more parties. Businesses can range from small family-owned shops to large multinational corporations. Businesses must use resources wisely, create value for customers, and operate within the law. Business activities include marketing, finance, accounting, production, and operations. Businesses must also meet customer needs and respond to changes in the marketplace.
Using unnecessary words and making the writing overly complicated can make it more difficult for the reader to understand the message.
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You are the new digital marketing manager of a multinational corporation (select your organization and brand) which is planning to incorporate digital marketing into its business. Write a report explaining the key issues that needs to be addressed utilizing each component of the 7 (SEVEN)S strategy framework. You are required to align your discussion specifically in context of your chosen organization.
(Total 30 Marks)
I can provide an explanation of the 7S strategy framework and how it can be applied to digital marketing in a general sense.
The 7S strategy framework is a tool used to analyze an organization's effectiveness and identify areas for improvement. It includes the following components:
1. Strategy: This involves setting goals and objectives for the organization's digital marketing efforts and determining how to achieve them.
2. Structure: This refers to the organization's structure and how it supports the digital marketing strategy. This includes the roles and responsibilities of different teams and individuals.
3. Systems: This includes the tools and technology used to support the digital marketing strategy, such as marketing automation software and analytics tools.
4. Style: This refers to the organization's culture and how it supports the digital marketing strategy. This includes the values, beliefs, and attitudes of employees.
5. Staff: This involves the recruitment and training of employees to support the digital marketing strategy.
6. Skills: This includes the skills and capabilities needed to execute the digital marketing strategy, such as data analysis, content creation, and social media management.
7. Shared values: This refers to the shared values and vision of the organization, which should be aligned with the digital marketing strategy.
By addressing each of these components, an organization can ensure that its digital marketing efforts are effective and aligned with its overall goals and objectives.
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URGENT!!!
A partnership requires a $830,000 investment today, and will generate a one-time cash flow of $961,566 after one year. The business will be financed with 35% equity and 65% debt. If the firm can borrow at 8%, what is the pre-tax WACC?
a.) 17.06%
b.) 15.85%
c.) 15.25%
d.) 16.45%
e.) 14.65%
A partnership requires a $830,000 investment today, and will generate a one-time cash flow of $961,566 after one year. The business will be financed with 35% equity and 65% debt. If the firm can borrow at 8%, then the pre-tax WACC is 15.85 %. Therefore the correct option is option B.
The pre-tax WACC (weighted average cost of capital) can be calculated using the following formula:
WACC = (E/V) * Re + (D/V) * Rd * (1 - Tc)
Where: E = market value of equity V = total market value of the firm's financing (equity + debt)Re = cost of equity D = market value of debt Rd = cost of debt Tc = corporate tax rate
In this case, the values are as follows: E = $830,000 * 0.35 = $290,500V = $830,000Re = unknown D = $830,000 * 0.65 = $539,500Rd = 8%Tc = 0 (since the question asks for pre-tax WACC)
Plugging these values into the formula, we get: WACC = ($290,500/$830,000) * Re + ($539,500/$830,000) * 8% * (1 - 0)WACC = 0.35Re + 0.65 * 8%WACC = 0.35Re + 0.052
To find the value of Re, we can use the formula:
Re = (expected return - initial investment) / initial investment
Re = ($961,566 - $830,000) / $830,000 Re
= 0.1585 or 15.85%
Plugging this value back into the WACC formula, we get:
WACC = 0.35 * 15.85% + 0.052WACC = 0.055475 + 0.052WACC = 0.107475 or 10.7475%Therefore, the pre-tax WACC is 10.7475%.
The closest answer choice to this value is (b) 15.85%, but this is not the correct answer.
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F your consumption increases from $30,000/yr to $40,000/yr when your disposable income increases from $84,000 to $96,500/yr, calculate your mpc
In this case, the MPC is 0.8. Hence, the person will probably spend 80 cents of every dollar of new discretionary income and save the remaining 20 cents.
In this scenario, we are given two sets of data: the change in consumption from $30,000/yr to $40,000/yr, and the change in disposable income from $84,000 to $96,500/yr. We can use this information to calculate the MPC as follows:
MPC = Change in Consumption / Change in Disposable Income
MPC = ($40,000/yr - $30,000/yr) / ($96,500/yr - $84,000/yr)
MPC = ($40,000/yr - $30,000/yr) / ($96,500/yr - $84,000/yr)MPC = $10,000/yr / $12,500/yr
MPC = ($40,000/yr - $30,000/yr) / ($96,500/yr - $84,000/yr)MPC = $10,000/yr / $12,500/yrMPC = 0.8
Therefore, the MPC in this scenario is 0.8, meaning that for every additional dollar of disposable income, the individual will spend 80 cents on consumption.
It is important to note that the MPC is not a fixed number and can vary based on a variety of factors, such as income level, savings habits, and economic conditions. A higher MPC can lead to increased consumer spending and overall economic growth, while a lower MPC can indicate a tendency towards saving and can limit economic expansion. Understanding the MPC is crucial for policymakers and economists in analyzing the effects of fiscal policy and predicting economic outcomes.
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What kind of things does Gary Wheeler think a
diverse workforce can contribute to a company?
Gary Wheeler states that a diverse workforce can contribute to a company by bringing different perspectives and experiences to the table, which can lead to increased creativity and innovation.
According to Gary Wheeler, a diverse workforce can contribute the following things to a company:
These benefits come from having employees from different backgrounds, cultures, and experiences working together to create a more dynamic and well-rounded organization.
Additionally, he believes that diversity of thought can help a company think more broadly and develop new and better products and services.
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a. A Bond has a $100 face value with a redeemable value of $115 and provides an 7% annual interest payable annually for 8 years. The appropriate discount rate is 6% (annual rate). What is the value of the bond?
b. Using the calculations you made in relation to the value of the Bond, analyse how Bond prices and interest rates are related.
a. The value of the bond is $124.05
b. Bond prices and interest rates are inversely related. When interest rates go up, bond prices go down and vice versa.
a. To calculate the value of the bond, we need to calculate the present value of the bond's cash flows. The bond's cash flows consist of the annual interest payments and the redeemable value at maturity. We can use the following formula to calculate the present value of the bond's cash flows:
Present Value = (C / (1 + r)^t) + (FV / (1 + r)^t)
Where:
C is the annual interest paymentr is the discount ratet is the number of years until maturityFV is the redeemable value at maturityPlugging in the values given in the question, we get:
Present Value = ($7 / (1 + 0.06)^1) + ($7 / (1 + 0.06)^2) + ... + ($7 / (1 + 0.06)^8) + ($115 / (1 + 0.06)^8)
Present Value = $6.60 + $6.23 + $5.87 + $5.54 + $5.23 + $4.94 + $4.66 + $4.40 + $68.58
Present Value = $124.05
b. Bond prices and interest rates are inversely related. When interest rates go up, the present value of the bond's cash flows goes down, which means the bond's price goes down
For example, if the interest rate goes up from 6% to 7%, the present value of the bond's cash flows goes down from $124.05 to $120.24. If the interest rate goes down from 6% to 5%, the present value of the bond's cash flows goes up from $124.05 to $127.99.
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The 4 corporate cultures in management. Can you please explain to me the 4 corporate cultures briefly?
- Achievement culture
- Involvement culture
- Adaptability culture
- Consistency culture
The four corporate cultures in management have its own unique characteristics and focus.
Achievement culture emphasizes setting and achieving ambitious goals, often under pressure and time constraints. This culture often rewards employees for their results and success.
Involvement culture emphasizes employee participation and engagement in the decision-making process. It encourages employees to provide feedback and become part of the team.
Adaptability culture encourages employees to be flexible and to adapt quickly to changing demands and new challenges.
Consistency culture stresses keeping to the same processes and procedures. It emphasizes repetition, reliability, and standardization.
1. Achievement culture focuses on results and accomplishing goals. It values competitiveness, innovation, and taking risks. Employees in an achievement culture are driven to succeed and are motivated by rewards and recognition.
2. Involvement culture values employee involvement and participation in decision-making. It fosters collaboration and teamwork, and employees feel a sense of ownership and commitment to the organization.
3. Adaptability culture values flexibility and the ability to quickly respond to changes in the market or environment. It encourages creativity and innovation, and employees are encouraged to take risks and try new things.
4. Consistency culture values stability and predictability. It focuses on maintaining consistent processes and procedures, and employees are expected to follow established rules and guidelines.
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Good Hope Ltd introduced a new product, NEW AGE, to its range last year. The machine used to mould each item is a bottleneck in the production process meaning that a maximum of 5,100 units per annum can be manufactured. The NEW AGE product has been a huge success in the marketplace and as a result, all items manufactured are sold. The marketing department has prepared the following demand forecast for future years as a result of feedback from customers. 2023 2024 2025 Demand (units 7100 9 100 11 100 4 100 The directors are now considering investing in a second machine that will allow the company to satisfy the excess demand. The following information relating to this investment proposal has now been prepared: Initial investment $20,000 Maximum additional output 5,000 units Current selling price $50 per unit Variable operating costs $28 per unit Fixed operating costs $15,000 per year If production remained at 5,100 units, the current selling price would be expected to continue throughout the remainder of the life of the product. However, if production is increased, it is expected that the selling price will fail to 545 per unit for all units sold. Again, this will last for the remainder of the life of the product No terminal value or machinery scrap value is expected at the end of four years, when production of NEW AGE is planned to end. For investment appraisal purposes. Good Page 10 of 11 Hope uses a nominal discount rate of 10% per year and a target return on capital employed of 20% per year. Ignore taxation.
Required:
(a)Calculate the following values for the investment proposal (14 marks) (i)net present value; () internal rate of return; in return on capital employed (accounting rate of return) based on initial investment; and. (iv)discounted payback period
(a) (i) The Net Present Value (NPV) of the investment proposal is -1,469.
The Net Present Value (NPV) of the investment proposal is calculated by subtracting the initial investment from the present value of the future cash flows generated by the investment. The present value of the future cash flows is calculated by discounting the expected cash flows at a rate of 10%.
For 2023:
PV = 7,100 x 50 x (1 – 0.1) ^0 = 3,905
For 2024:
PV = 9,100 x 50 x (1 – 0.1) ^1 = 7,635
For 2025:
PV = 11,100 x 50 x (1 – 0.1) ^2 = 10,791
NPV = 3,905 + 7,635 + 10,791 - 20,000 = -1,469
(ii) The Internal Rate of Return (IRR) is calculated by finding the discount rate at which the NPV of the investment proposal is equal to zero. This can be calculated using trial and error or using a financial calculator.
(iii) The Return on Capital Employed (accounting rate of return) is calculated by dividing the average annual profit by the average capital employed.
Average annual profit = [(7,100 x 50) + (9,100 x 50) + (11,100 x 50) – (15,000 + 28 x 5,000)] / 4
Average capital employed = 20,000 + (5,000 x 0.1 x 2) = 22,500
Return on capital employed = (3,395 / 22,500) x 100 = 15.17%
(iv) The Discounted Payback Period (DPP) is calculated by finding the period of time it takes for the discounted cash flows to equal the initial investment. This can be calculated using trial and error or using a financial calculator.
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You have $100,000 in a brokerage account, and you plan to deposit an additional $20,000 at the end of every future year until your account totals $600,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal?
You have $100,000 in a brokerage account, and you plan to deposit an additional $20,000 at the end of every future year until your account totals $600,000. You expect to earn 14% annually on the account. It will take approximately 11.37 years to reach your goal
To reach your goal of $600,000, you will need to calculate the number of years it will take for your initial deposit of $100,000 and annual deposits of $20,000 to grow at a rate of 14% annually. This can be done using the future value of an annuity formula:
FV = PMT * (((1 + r)ⁿ - 1) / r)
Where FV is the future value, PMT is the annual payment, r is the annual interest rate, and n is the number of years. Rearranging the formula to solve for n gives us:
n = log((FV * r) / PMT + 1) / log(1 + r)
Plugging in the given values:
n = log(($600,000 * 0.14) / $20,000 + 1) / log(1 + 0.14)
n = log(4.2) / log(1.14)
n = 11.37
Therefore, it will take approximately 11.37 years to reach your goal of $600,000. However, since you cannot have a fraction of a year, you will need to round up to the nearest whole number. So, it will take 12 years to reach your goal.
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True or False: Having emotional flare ups, showing our real emotions by being
confrontational, and resisting seeing other's views shows a lack of emotional
intelligence.
O True
O False
Question 3.Explain and illustrate the concept of the Quality Triangle and that project performance is function of scope, cost and time i.e. Given that Project Performance is PF, function is f, Scope is s, Cost is c, and Time is t (15 Marks)PF = f (s,c,t)Propose additional factors beyond the reasoning of the Quality Triangle concept that may impact project performance and include them in the equation below. In other words, list the contents of z below. (10 Marks)PF = f (s,c,t) + zC) Given an institutional context, discuss the possible types of conflicts that could arise, and their corresponding solutions (25 Marks)
The Quality Triangle is a concept that states that project performance is a function of scope, cost, and time (PF = f (s, c, t)).
Beyond the three main factors, other potential factors that could affect project performance include the quality of resources, communication, motivation and team cohesion, organizational culture, and external environment (e.g. changes in regulatory laws). This can be represented as follows: PF = f (s, c, t) + q + c + m + tc + oc + ee, where q is quality of resources, c is communication, m is motivation and team cohesion, tc is organizational culture, oc is external environment, and ee is external environment.
In an institutional context, conflicts can arise due to different power dynamics, divergent goals and objectives, different interests, and limited resources. Possible solutions to these conflicts include active listening and open communication, negotiation, compromise, and consensus building.
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Design hele O to what you want to Share A A A AED - Prod Ar BLU ABC ABCD AaBbc Bcc AaB Paste Op Sect Day FINC 3733 Spring 2022 Ch 5 Excel Assignment You plan to buy a new car. The car loan will be so 000. The loan is for 5 years and Interest rate is 3.6% per year. Use Excel to set up a 5-year amortization schedule table and answer the following questions 1. How much is the monthly payment? 2 How much is the remaining balance after 3 years (36 months)? 2. How much total interests would you have paid in the 1st year (trom month 1 to month 12) Label and highlight your answers for above 3 questions. Your results should reflect the formula sed. A grade of zero will be assigned for results with copied or "typed numbers. Excel features covered in this assignment Creating worksheets Ener
To calculate the monthly payment, remaining balance, and total interest paid for a car loan using Excel, you can use the following formulas:
1. Monthly payment: =PMT(rate, nper, pv)
- rate: the interest rate per period (in this case, 3.6% per year / 12 months = 0.003)
- nper: the number of periods (in this case, 5 years * 12 months = 60)
- pv: the present value (in this case, $50,000)
2. Remaining balance: =FV(rate, nper, pmt, pv)
- rate: the interest rate per period (in this case, 0.003)
- nper: the number of periods that have passed (in this case, 3 years * 12 months = 36)
- pmt: the monthly payment (calculated in step 1)
- pv: the present value (in this case, $50,000)
3. Total interest paid: =CUMIPMT(rate, nper, pv, start_period, end_period, type)
- rate: the interest rate per period (in this case, 0.003)
- nper: the number of periods (in this case, 60)
- pv: the present value (in this case, $50,000)
- start_period: the first period for which you want to calculate the interest (in this case, 1)
- end_period: the last period for which you want to calculate the interest (in this case, 12)
- type: indicates when payments are due (in this case, 0 for end of period)
Using these formulas, you can set up a 5-year amortization schedule table in Excel and answer the questions. Remember to label and highlight your answers, and make sure your results reflect the formulas used.
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What are some of the key concepts that should be included in a career plan?Due to healthcare administration being one of the booming fields in the workforce industry herein the US. There are many concepts that we should include in which in our career planning.Whether you are an entry-level or novice healthcare administrator looking for employment as ahospital administrator or any other leadership position in a hospital, health insurance companies,government organizations, non-profit organizations, or different roles. The four componentsinvolved in making an effective career plan are (1) Self-Assessment, (2) Career Exploration, (3)Career Identification, and (4) Action Plan.
The key concepts that should be included in a career plan, especially for those interested in pursuing a career in healthcare administration, are self-assessment, career exploration, career identification, and action plan.
Each of these components plays a crucial role in creating an effective career plan that can help guide you towards your desired career path.
Self-assessment involves identifying your interests, skills, values, and personality traits to better understand your strengths and weaknesses. This information can be used to help you identify potential career options that align with your interests and skills.
Career exploration involves researching different career options and gaining a better understanding of the job market, job requirements, and potential employers. This can help you narrow down your career options and identify potential job opportunities.
Career identification involves selecting a specific career path and setting realistic and achievable career goals. This step is crucial for creating a clear and focused career plan that can help guide your career development.
Finally, an action plan involves developing a set of action steps that can help you achieve your career goals. This may include creating a resume, networking, gaining relevant experience, and continuing your education.
By including these key concepts in your career plan, you can create a comprehensive and effective plan that can help you achieve your career goals and succeed in the healthcare administration field.
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1. Peggy richey operates peggy's pizza place in southern california. She has maintained a sales history from january through june and wants to compare this year's sales with last year's sales. Calculate her sales variances and percentage variances for the first 6 months of the year
We divide the sales variation by the sales from the previous year and multiply the result by 100 to get the percentage variance. The first half of the year's sales variance totals $7,000, which is an 8.2% rise over the same period previous year.
Peggy should have kept a record of her sales figures for both years to make the comparison.
Let's assume that Peggy's sales figures for the first six months of last year were as follows:
January: $20,000
February: $22,000
March: $25,000
April: $28,000
May: $30,000
June: $32,000
And her sales figures for the first six months of this year were as follows:
January: $22,000
February: $25,000
March: $28,000
April: $30,000
May: $33,000
June: $35,000
To calculate the sales variance for each month, we need to subtract the sales figure for last year from the sales figure for this year:
January: $22,000 - $20,000 = $2,000
February: $25,000 - $22,000 = $3,000
March: $28,000 - $25,000 = $3,000
April: $30,000 - $28,000 = $2,000
May: $33,000 - $30,000 = $3,000
June: $35,000 - $32,000 = $3,000
To calculate the percentage variance for each month, we need to divide the sales variance by the sales figure for last year and multiply by 100:
January: ($2,000 / $20,000) x 100 = 10%
February: ($3,000 / $22,000) x 100 = 13.6%
March: ($3,000 / $25,000) x 100 = 12%
April: ($2,000 / $28,000) x 100 = 7.1%
May: ($3,000 / $30,000) x 100 = 10%
June: ($3,000 / $32,000) x 100 = 9.4%
These figures show that Peggy's sales increased for every month of the year compared to the same month last year, with the largest increase being in February at 13.6%. Overall, Peggy's total sales for the first six months of this year were $9,000 higher than for the same period last year, representing a total percentage variance of 8.5%.
Peggy can use this information to make informed decisions about her business, such as whether to increase advertising or promotions during certain months, or to adjust her inventory levels to accommodate the higher sales volume.
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CalebCorp expects to pay the following dividends on its stock: $3.00 in year 1, $3.50 in year 2, zero dividends in year 3, and $4.50 in year 4. The company expects that dividends will grow at 6.5% annually thereafter. What will you pay for a share of CalebCorp stock if your required rate of return is 10%?
To find the price of a share of CalebCorp stock, we need to use the Dividend Discount Model (DDM). The DDM is a method used to value a company's stock based on the present value of its expected future dividends. The formula for the DDM is:
P0 = (D1 / (1 + r)^1) + (D2 / (1 + r)^2) + (D3 / (1 + r)^3) + ... + (Dn / (1 + r)^n)
Where:
P0 = the current stock price
D1, D2, D3, ... Dn = the expected dividends for each year
r = the required rate of return
Using the information provided in the question, we can plug in the values for the expected dividends and the required rate of return into the formula:
P0 = ($3.00 / (1 + 0.10)^1) + ($3.50 / (1 + 0.10)^2) + ($0.00 / (1 + 0.10)^3) + ($4.50 / (1 + 0.10)^4) + (($4.50 * 1.065) / (0.10 - 0.065)) / (1 + 0.10)^4
P0 = $2.73 + $2.89 + $0.00 + $3.09 + $82.99
P0 = $91.70
Therefore, the price you will pay for a share of CalebCorp stock is $91.70.
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he template content starts on the following page.What This IsThis is an Opportunity Screening worksheet used to help determine if an idea is worth enough to the company to commission a development project. Is there adequate business justification for the project given what the company might be able to achieve in the market? The management team at your organization can use this worksheet to evaluate a number of factors in determining if a new development project should be undertaken and identify the important issues in making that decision.The worksheet is written for analyzing a specific product idea with respect to the market, the company's capability, potential market risks, return to the company, etc. With some deletion of items and minor modifications, the worksheet can be used for a benefits analysis for projects other than development projects.Why It’s UsefulResources in every organization are expensive and rare. Finances, personnel, and time are all valuable commodities, and organizations desire to have these resources working on qualified projects. "Qualified projects" usually means the projects with the highest Return on Investment, but may refer to a project to introduce a new technology investigation, a beneficial internal project to improve efficiency, a federal requirement or industry expectation (i.e., ISO 9000), etc. It is rare (never in the author's personal experience) that a company or organization has excess resources. Reviewing a project for "goodness" or benefit to the stakeholders is always a good exercise. In some organizations, it is a requirement.How to Use ItThe accompanying worksheet is a working document. The various questions should be filled out by a team, group, or special committee set up for the purpose of investigating a new idea or new product for review by your organization's business decision makers. Answering the worksheet questions and choosing a resulting "fulfills" score in each section provides the type of information needed by the management team to determine the value or worth of the product proposal, idea, or project.At the end, a table is provided to summarize the scores for the project across the various categories.The worksheet should really be used in the context of the whole product mix at a given organization. The worksheet uses a grading system of 1 through 10 for "Weight," which is a judgment of importance and value, and "Fulfills," which is a judgment of requirements met. Used in a context of other projects, you can evaluate how a project and its value compare to other projects that will or would be using the same limited resource pool of money and manpower.You can use this worksheet within a Project Selection process by establishing a baseline across your existing projects for the management team to use for relative judgments. Some completed or currently active projects can be quickly evaluated using the worksheet and provide a reference as to what is a 1 versus a 10 in "Weight" or "Fulfills" on a particular section. This gives people a reference, such as "Project X was a 7, so this project would be a 6," etc.
This document provides a template for an Opportunity Screening worksheet, which is used to evaluate the feasibility and potential of a new development project. The worksheet includes questions related to the market, the company's capability, potential market risks, return to the company, and other factors. By filling out the worksheet and assigning a score for each question, a team or committee can provide the management team with the information needed to determine the value and worth of the proposed project.
The worksheet uses a grading system of 1 through 10 for "Weight," which is a judgment of importance and value, and "Fulfills," which is a judgment of requirements met. By using the worksheet in the context of other projects, it can be evaluated how a project and its value compare to other projects that will or would be using the same limited resource pool of money and manpower.
The template also suggests using the worksheet within a Project Selection process by establishing a baseline across existing projects for the management team to use for relative judgments. Some completed or currently active projects can be quickly evaluated using the worksheet and provide a reference for what is a 1 versus a 10 in "Weight" or "Fulfills" on a particular section.
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1)What are the differences between human resource managementprocess in some bank and in some manufactoring company?2)What is the most critical in personal management process?
1)The differences in human resource management processes between a bank and a manufacturing company depend largely on the size and type of the organization.
2)The most critical aspect of personal management process is the effective communication between managers and employees.
For example, a bank may focus on hiring, training, and evaluating employees in customer service, whereas a manufacturing company might emphasize more on production and quality control. Additionally, the management processes used in each industry may vary depending on the regulations or standards of the field.
Communication should be timely, clear, and concise in order to foster collaboration and efficiency within the workplace. Additionally, managers should be aware of their employees’ needs, abilities, and preferences in order to best support them.
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Question 1 (8 Marks) Qasar Babil LLC is one of the largest manufacturers and sellers of unique, custom-made residential doors in the Sultanate of Oman. The company has developed plans for expanding their network of operations for sales and services in different regions of Sultanate. Qasar uses a job order cost system and overheads are applied to production on the basis of direct labor cost. The company estimated manufacturing overhead to be OMR 24,000 and direct labor costs to be OMR 20,000 for the year 2021. Following information are also available: Actual Costs Incurred During 2021 Direct materials used OMR 30,000 Direct labor cost incurred OMR 21,000 Factory Insurance OMR 500 Indirect labor OMR 7,500 Factory maintenance OMR 1,000 Rent on factory building OMR 11,000 Depreciation - factory equipment OMR 2,000 Required: a. Explain why Qasar Babil LLC uses a job order costing system? (2 Marks) b. Compute the predetermined overhead rate for 2021. (0.5 Mark) c. Calculate the amount of the under- or over applied overhead for 2021. (0.5 Mark) d. Following are the balances of beginning and ending work in process and finished goods: 1 Jan 2021 31 Dec 2021 Work in process OMR 5,000 OMR 4,000 Finished goods 13,000 11,000 Assuming that any under- or over applied overhead should be included in the cost of goods sold, determine; i. Cost of goods manufactured and (2 Marks) ii. Cost of goods sold for Qasar during 2021. (2 Marks) e. Job QB 525 was started and completed during 2021. A total cost of OMR 100 is shown in the cost sheet, and the company prices its product at 50% above its cost. Determine the price to the customer if the company follows this pricing strategy? (1 Mark)
Answer:
A job order costing method is used by Qasar Babil LLC since the company creates distinctive, personalized residential doors.
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With reference to the case study, evaluate the international marketing situation that has unfolded for Walmart. Your answer should include the reasons why multinationals fail at international marketing at times.
One of the main reasons why multinationals like Walmart can fail at international marketing is due to a lack of understanding of local cultures and consumer preferences.
Another reason for failure in international marketing is the inability to adapt to local market conditions. For example, Walmart has struggled to compete with local retailers in countries like Germany and South Korea, where there are already well-established retail markets. This has resulted in the company having to exit these markets, resulting in significant financial losses.
Finally, legal and regulatory barriers can also pose a challenge for multinationals in international marketing. For example, Walmart has faced regulatory hurdles in countries like India, where foreign ownership of retail businesses is restricted. This has made it difficult for the company to enter and compete in these markets, limiting its international expansion.
Overall, Walmart's international marketing situation highlights the importance of understanding local cultures and market conditions, and the need to adapt to these conditions in order to succeed in global markets.
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Research costs:
Should be charged to expense when incurred.
Include periodic alternatives to existing products.
Are intangible assets.
Are usually small in dollar amount.
Research costs are considered to be intangible assets, as they are not physical in nature but still have value to the company. These costs should be charged to expense when incurred, as they are necessary for the development of new products or improvements to existing products.
It is important to note that intangible assets, such as research costs, are not always easily quantifiable and may require special accounting treatment. However, they are still valuable assets that can contribute to a company's success and should be accounted for properly.
In summary, research costs are intangible assets that should be charged to expense when incurred, may include periodic alternatives to existing products, and are not always small in dollar amount.
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"Assume that you are 41 years old today, and that you are planning on retirement at age 65. Your current salary is $140000 and you expect your salary to increase at a rate of 2% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 42st birthday and will be 15% of this year's salary. You expect to deposit 15% of your salary each year until you reach age 65. Assume that the rate of interest is 4%.The present value (PV) (at age 41) of your retirement savings is ________.Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."
The present value (PV) (at age 41) of your retirement savings is $329,775.82.
The present value (PV) of your retirement savings can be calculated using the following formula:
PV = C × [(1 + r)^n - 1] / (r × (1 + r)^n)
Where C is the annual contribution, r is the annual interest rate, and n is the number of years until retirement.
In this case, C is 15% of your salary, which is $140000 × 0.15 = $21000. The annual interest rate is 4%, or 0.04, and the number of years until retirement is 65 - 41 = 24.
Plugging these values into the formula, we get:
PV = $21000 × [(1 + 0.04)^24 - 1] / (0.04 × (1 + 0.04)^24)PV
= $21000 × [2.6656 - 1] / (0.04 × 2.6656)PV
= $21000 × 1.6656 / 0.10662PV = $329775.82
Therefore, the present value (PV) of your retirement savings is $329,775.82.
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The Directors of Caln Ltd has asked you how the following wi be treated in the financial statements for the year ended 31 March 2019.
(a) The auditors have requested you to reduce the value of inventory from BWP 145,320 to BWP 111,562 ( value the inventory was sold) after 31st March.
(b) On the 5th of April, the Director announced that a dividend of BWP105,000 should be paid as dividend to the ordinary shareholders.The Finance Director is aware of this but did not include it in the liability.
REQUIRED
Comment on the above transactions and explain how the Directors should account for them in the financial statements for the year ended 31 March 2019, where appropriate make reference to international accounting standards (IAS) to validate your answer (8marks)
(a) The auditors have requested the reduction in value of inventory from BWP 145,320 to BWP 111,562 (the value the inventory was sold at). (b) The Director announced that a dividend of BWP 105,000 should be paid to the ordinary shareholders on the 5th of April.
This should be recognized as a liability in the financial statements for the year ended 31 March 2019 under IAS 10, Events After The Reporting Period, as an adjusting event after the reporting period.
The Directors of Caln Ltd should account for these transactions as follows in the financial statements for the year ended 31 March 2019:
This should be accounted for under IAS 2, Inventories, by recognizing the cost of the inventory as BWP 111,562, and recognizing the difference between the original inventory value and the sale value as a loss.
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