The correct answer to this question is A. Partnership deed. The written agreement of partnership is called Partnership deed .A partnership deed is a written agreement between two or more individuals who agree to carry on a business together.
It outlines the rights and responsibilities of each partner, as well as the terms of the partnership, such as how profits and losses will be divided and how decisions will be made.
The other options listed are not correct. Articles of association and memorandum of association are documents related to the formation of a corporation, not a partnership. A certificate of incorporation is a document issued by a government agency to officially recognize the formation of a corporation.
Therefore, the correct answer to this question is A. Partnership deed.
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Snowblowers Ltd has five identical snow blowers in its warehouse available for sale. The company recently agreed to sell three of the snow blowers. Using the average cost method, what is the cost of goods sold for three snow blowers? a. $1,208 b. $1,770 c. $1,800 d. $1,812
The cost of goods sold for three snow blowers using the average cost method is $1,812. This is calculated by dividing the total cost of all five snow blowers ($9,060) by the number of snow blowers (5), giving an average cost of $1,812 each.
The average cost method calculates the cost of goods sold by dividing the total cost of goods available for sale by the total number of goods available for sale. In this case, the total cost of goods available for sale is the cost of the five identical snow blowers in the warehouse. To find the cost of goods sold for three snow blowers, we simply multiply the average cost of one snow blower by the number of snow blowers sold:
Average cost of one snow blower = Total cost of goods available for sale / Total number of goods available for sale = $1,812 / 5 = $362.40Cost of goods sold for three snow blowers = Average cost of one snow blower x Number of snow blowers sold = $362.40 x 3 = $1,087.20Learn more about average cost method: https://brainly.com/question/28840751
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5. If the return of a mutual fund investment in 2018 was
$165,500, Suppose we invest 156200 in dec. 2016. what was the
average annual growth rate over the two years?
According to the question, the return of a mutual fund investment in 2018 was $165,500, Supposing that we have invested 156200 in dec. 2016, the average annual growth rate of the mutual fund investment over the two years is 0.0293, or 2.93%
To find the average annual growth rate of a mutual fund investment, we can use the formula:
AAGR = (Ending value/Beginning value)^(1/Number of years) - 1
In this case, the ending value is $165,500, the beginning value is $156,200, and the number of years is 2. Plugging these values into the formula, we get:
AAGR = ($165,500/$156,200)^(1/2) - 1
AAGR = 1.0595^(1/2) - 1
AAGR = 1.0293 - 1
AAGR = 0.0293
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The continuously compounded interest rate is 5% p.a. and the storage cost for copper is 8% p.a. What is the price of a 9-month futures contract on copper, if the current spot price is $3.4 per pound? (Round your answer to 2 decimals.)
The price of a 9-month futures contract on copper is $3,75 per pound.
A futures contract is a binding commitment to buy or sell a certain commodity asset, securities, or both at a defined price at a predetermined future date.
A futures contract in finance is a standardised legal agreement between unidentified parties to buy or sell something at a predetermined price for delivery at a specific period in the future.
For the purpose of facilitating trading on a futures exchange, futures contracts are standardised for both quality and quantity.
The price of a 9-month futures contract on copper can be calculated using the formula:
Future rate = spot rate ×e^r
rate of interest =(8+5)×9/12=9.75%
Future rate =$3.4×e^0.0975
=3.4×1.1024114416
=3.7482
Therefore, the price of a 9-month futures contract on copper is $3,75 per pound (rounded to 2 decimals).
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You are the founder of a startup called Welcome Homes. Welco... 口 You are the founder of a startup called Welcome Homes Welcome Homes is trying to make it easier for home buyers to build a newly constructed home without having to deal with delays and headaches. Their slogan is "Order your dream home, online." They promise prospective buyers that they can build the home you want, where you want for a guaranteed, all-in price." Homes come with select customization options with new homes in the New York metro area starting at $570,000, not including the land the homeowner has to purchase. The $570,000 model is their smallest and most affordable option, but they have two other options, the most expensive at $830,000 (not including the cost of the land While you don't have a marketing team, you took an Integrated Marketing course in college so you feel confident you can come up with a marketing plan yourself You've received $1 million in funding from investors to launch this marketing plan. Figure 1 Target Audience Audience #1 Audience #2 Segment Size 450.000 125,000 Segment Adoption Percentage 0.25% 196 1 1 Purchase Behavior Purchase Price Purchase Frequency $670,000 1 $750,000 1.5 Profit Margin 2596 30% Fixed Costs $5,500,000 $4,500,000 Segment Profit 2 ? As part of this plan, identify what characteristics are important for your target audience. What criteria will you use to segment your market? Then, decide how you will position your offering using the 4Ps. Finally, you've narrowed your target market to two potential audiences shown in Figure 1 above. First, you need to do the math to decide if either of these audiences is profitable (you should be able to give me the segment profit. Then, tell me whether you would put all of the $1 million into one audience or how you would split it up between the audiences. Explain your reasoning.
The characteristics that are important for the target audience of Welcome Homes are likely to include income level, location, and desire for a customized, newly constructed home. The criteria used to segment the market could include demographics, psychographics, and behavioral factors.
To position the offering using the 4Ps, Welcome Homes could consider the following:
- Product: Offering customizable, newly constructed homes with a guaranteed all-in price
- Price: Offering homes at different price points, starting at $570,000 for the smallest and most affordable option
- Place: Focusing on the New York metro area for the initial launch
- Promotion: Using targeted advertising and social media marketing to reach potential buyers.
To determine the profitability of the two potential audiences in Figure 1, we can use the formula Segment Profit = (Segment Size x Segment Adoption Percentage x Purchase Price x Profit Margin) - Fixed Costs.
For Audience #1:
Segment Profit = (450,000 x 0.0025 x $670,000 x 0.25) - $5,500,000 = $117,187.50
For Audience #2:
Segment Profit = (125,000 x 0.001 x $750,000 x 0.30) - $4,500,000 = -$3,562,500
Based on these calculations, Audience #1 is profitable while Audience #2 is not. Therefore, it would be wise to allocate the majority of the $1 million in funding towards Audience #1. However, it may still be beneficial to allocate a small portion of the funding towards Audience #2 in order to test the market and potentially increase profitability in the future. The exact allocation of funding would depend on the specific marketing tactics and strategies used for each audience.
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Describe the opportunities and challenges franchisors face whenentering emerging markets such as the nations of Africa.
Franchisors entering emerging markets such as the nations of Africa face both opportunities and challenges. On the one hand, there is significant potential for franchisors to reach a large, untapped customer base and capitalize on their growing purchasing power.
Additionally, lesser developed markets often do not have established competitors, creating an opportunity for franchisors to become the market leader. On the other hand, there are also numerous challenges associated with entering new markets.
These include a lack of knowledge of local laws and regulations, cultural differences, and the need to establish a supply chain. Furthermore, underdeveloped infrastructure and limited access to financing can make it difficult to establish a successful franchise.
Despite these challenges, the potential rewards make the effort worthwhile, and many franchisors have found success in African markets.
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Suppose that the index model for stocks A and B is estimated from excess returns with the following results:
RA = 2.0% + 0.40RM + eA
RB = –1.8% + 0.90RM + eB
σM = 15.0%; R-squareA = 0.30; R-squareB = 0.22
What is the covariance between each stock and the market index?
The covariance between stock A and the market index is 0.9% and the covariance between stock B and the market index is 2.025%.
The covariance between each stock and the market index can be calculated using the formula:
Cov(RA, RM) = βA * σM^2 and Cov(RB, RM) = βB * σM^2.
For stock A, we have βA = 0.40 and σM = 15.0%. So the covariance between stock A and the market index is:
Cov(RA, RM) = 0.40 * (15.0%)^2 = 0.40 * 0.0225 = 0.0090 or 0.9%
Similarly, for stock B, we have βB = 0.90 and σM = 15.0%. So the covariance between stock B and the market index is:
Cov(RB, RM) = 0.90 * (15.0%)^2 = 0.90 * 0.0225 = 0.02025 or 2.025%
Therefore, the covariance between stock A and the market index is 0.9% and the covariance between stock B and the market index is 2.025%.
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The following costs and inventory data were taken from the accounts of Malik Company for the year 2021: 1 January 2021 31 December 2021
Inventories: (RM) (RM) Raw materials 8,000 7,000 Work in process 15,000 13,000 Finished goods 16,000 12,000 Costs incurred: Raw materials purchases 98,000
Direct labor 42,000 Factory rent 8,000 Factory utilities 10,000 Indirect materials 6,000
Indirect labor 9,000
Operating expenses 17,000 Instructions: (a) Prepare a schedule of Cost of Goods Manufactured for Malik Company for the year ended 31 December 2021. (b) Prepare the Cost of Goods Sold section of the Statement of Profit or Loss for Malik Company for the year ended December 2021.
Cost of Goods Manufactured for Malik Company for the year ended 31 December 2021, total cost of goods manufactured = 191,000 a.nd Ending inventory of finished goods 12,000 = 195,000
Raw materials: Beginning Inventory 8,000 + Raw materials purchases 98,000 = 106,000
Less: Ending inventory 7,000 = 99,000
Work in process: Beginning inventory 15,000 Less: Ending inventory 13,000 = 2,000
Direct labor 42,000 Factory rent 8,000 Factory utilities 10,000 Indirect materials 6,000 Indirect labor 9,000 Operating
expenses 17,000 = 92,000
Total cost of goods manufactured = 191,000
(b) Cost of Goods Sold section of the Statement of Profit or Loss for Malik Company for the year ended December 2021:
Beginning inventory of finished goods 16,000 + Cost of goods manufactured 191,000 = 207,000
Less: Ending inventory of finished goods 12,000 = 195,000
Cost of Goods Sold = 195,000
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Are synthetic CDOs a legitimate business investment, or are they pure gambling? If the former, what are their benefits? If the latter, should banks and other companies be allowed to wager on whatever they want if they like the odds and think they can make money that way?
Synthetic CDOs (collateralized debt obligations) are a legitimate business investment, but they are also considered to be a form of gambling due to the high levels of risk involved.
Synthetic CDOs are a type of structured financial product that allow investors to bet on the performance of a particular market or asset without actually owning it.
The benefits of synthetic CDOs include the ability to diversify risk and potentially earn high returns. However, the downside is that they can also result in significant losses if the market or asset does not perform as expected.
While banks and other companies are allowed to invest in synthetic CDOs, it is important that they do so responsibly and with a thorough understanding of the risks involved. It is also important that they are transparent about their investments and the potential risks to their clients and shareholders. Ultimately, it is up to each individual company to decide if they want to take on the risks associated with synthetic CDOs in pursuit of potential profits.
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What is the difference between a strength, a competitive advantage, and a sustainable competitive advantage? What makes an ability (or set of abilities) a core competency? Why is it necessary to perform an external and internal analysis before the firm can a Delphi it's true core competencies?
The difference between a strength, a competitive advantage, and a sustainable competitive advantage is that a strength is a capability or quality that gives a company an advantage over its competitors, a competitive advantage is when a company has a unique attribute that allows it to outperform its competitors, and a sustainable competitive advantage is when a company can maintain its competitive advantage over a long period of time.
A core competency is an ability (or set of abilities) that is central to a company's operations and is critical to its success. It is something that a company does better than its competitors and is difficult for competitors to imitate. For example, a company's core competency could be its ability to innovate, its customer service, or its supply chain management.
It is necessary to perform an external and internal analysis before the firm can identify its true core competencies because these analyses help the firm to understand its strengths and weaknesses, as well as the opportunities and threats in the external environment.
An external analysis looks at the factors outside of the company that could impact its performance, such as the economy, competition, and customer preferences. An internal analysis looks at the company's resources, capabilities, and organizational structure. By conducting these analyses, the firm can identify its true core competencies and use them to create a competitive advantage.
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The following information was taken from the records of Vaughn SA for the year 2022: Income tax applicable to income from continuing operations R$128,800; income tax applicable to loss on discontinued operations R$27,400, and unrealized holding gain on equity securities designated at fair value through other comprehensive income R$16,200. Gain on sale of plant assets R$104,000 Loss on discontinued operations 81,000 Administrative expenses 262,000
Rent revenue 46,00
Loss on impairment of land 64,800 Cash dividends declared R$ 162,000 Retained earnings January 1, 2022 648,000 Cost of goods sold 918,000 Selling expenses 324,000 Sales revenue1,836,000 Ordinary shares outstanding during 2022 were 100.000
The retained earnings for Vaughn SA for the year 2022 is R$643,400.
The net income for Vaughn SA for the year 2022 can be calculated using the following formula:
Net Income = (Sales Revenue - Cost of Goods Sold - Selling Expenses - Administrative Expenses - Loss on Impairment of Land - Loss on Discontinued Operations + Gain on Sale of Plant Assets + Rent Revenue) - Income Tax
Plugging in the given values, we get:
Net Income = (1,836,000 - 918,000 - 324,000 - 262,000 - 64,800 - 81,000 + 104,000 + 46,000) - 128,800
Net Income = (286,200) - 128,800
Net Income = 157,400
Therefore, the net income for Vaughn SA for the year 2022 is R$157,400.
The earnings per share (EPS) can be calculated using the following formula:
EPS = Net Income / Number of Ordinary Shares Outstanding
Plugging in the values, we get:
EPS = 157,400 / 100,000
EPS = 1.574
Therefore, the earnings per share for Vaughn SA for the year 2022 is R$1.574.
The retained earnings for Vaughn SA for the year 2022 can be calculated using the following formula:
Retained Earnings = Beginning Retained Earnings + Net Income - Cash Dividends Declared
Plugging in the values, we get:
Retained Earnings = 648,000 + 157,400 - 162,000
Retained Earnings = 643,400
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Create an Arena model/simulation to create the set of 2,000 observations with a Uniform distribution between 0 and 100, and then use Input Analyzer to assess whether or not the uniform (0,100) distribution is a good fit of the data.
You can copy and paste the results as screenshot from Input Analyzer to excel. Then, you should comment on the results and the fit.
To create an Arena model/simulation with a Uniform distribution between 0 and 100, you can follow these steps:
1. Open Arena and create a new model.
2. Add a "Create" module and set the "Interarrival Time" to "Uniform(0,100)".
3. Add a "Record" module and connect it to the "Create" module.
4. Set the "Record" module to record the "Time Created" attribute.
5. Add an "End" module and connect it to the "Record" module.
6. Set the "Number of Replications" to 2000 in the "Run Setup" window.
7. Run the simulation.
Once the simulation is complete, you can use Input Analyzer to assess whether or not the uniform (0,100) distribution is a good fit of the data. Here's how:
1. Open Input Analyzer and select "File > Import Data".
2. Select the Arena model you just created and click "OK".
3. Select the "Time Created" attribute and click "OK".
4. Click on the "Distribution Fitting" tab and select "Uniform" from the list of distributions.
5. Click on the "Fit" button to fit the uniform distribution to the data.
6. Take a screenshot of the results and paste them into Excel.
To comment on the results and the fit, you should look at the "Goodness of Fit" statistics in Input Analyzer. These statistics will tell you how well the uniform distribution fits the data. If the "p-value" is greater than 0.05, then the uniform distribution is a good fit of the data. If the "p-value" is less than 0.05, then the uniform distribution is not a good fit of the data.
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1. What is the difference between a change in accounting policy
and a change in accounting estimate?
2. What is the meaning of retrospective application versus
prospective application in IAS 8?
3. If
1. A change in accounting policy refers to a change in the principles, basis, conventions, rules, and practices used in preparing and presenting financial statements. On the other hand, a change in accounting estimate is a change in the amount or method used to determine an estimate in the financial statements. For example, a change in the depreciation method is a change in accounting policy, while a change in the useful life of an asset is a change in accounting estimate.
2. Retrospective application means applying a new accounting policy to transactions, events, and balances that occurred before the date of change, as if the new policy had always been applied. Prospective application means applying a new accounting policy to transactions, events, and balances that occur after the date of change.
3. If a company changes its accounting policy, it should apply the new policy retrospectively, unless it is impractical to do so. If a company changes its accounting estimate, it should apply the new estimate prospectively, from the date of the change onwards. This is in accordance with IAS 8, which sets out the requirements for changes in accounting policies and estimates.
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A company has the following cash flow:
Period C0= -1000
Period C1= +500
Period C2= -100
Period C3= +600
Should the company invest in the
project if cost of capital is 5%?
Yes, if the cost of capital is 5% and NPV the company is greater than 0, so the company should invest in the project. This is because the return on investment is positive.
To determine whether a company should invest in a project, it needs to calculate the net present value (NPV) of the project. NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
You can calculate NPV using the following formula:
Current value = C0 + (C1 / (1+r)^1) + (C2 / (1+r)^2) + (C3 / (1+r)^3)where:
C0 = initial investmentC1, C2, C3 = cash flows for periods 1, 2, and 3r = cost of capitalInsert the question value:
Present value = -1000 + (500 / (1+0.05)^1) + (-100 / (1+0.05)^2) + (600 / (1+0.05)^3)Present Value = -1000 + 476.19 + (-90.70) + 518.71NPV = -95.80.
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Briefly state which candidate you selected. List the five benefits you selected to be included in this employee’s total rewards package. For each benefit you selected, explain why you selected it and how you believe it will impact organizational effectiveness and the employee (considering aspects like company size, organizational culture, budget, the position itself, as well as the employee). Your initial post must be a minimum of 300 words. Cite at least one scholarly source to support your response.
I have selected Candidate A for the position. For the total rewards package, I selected the following benefits: health insurance, flexible work hours, tuition reimbursement, and vacation days. Each of these benefits was chosen for their potential to impact organizational effectiveness, as well as for the positive impact it would have on the employee.
1. Select a candidate: Choose a hypothetical candidate for a specific position within an organization. Consider the qualifications and skills that this candidate possesses and how they align with the needs of the organization.
2. Select five benefits: Choose five benefits that you believe will be most beneficial to the employee and the organization. Consider the size of the company, the organizational culture, the budget, the position itself, and the employee when making your selections.
3. Explain the benefits: For each benefit you selected, explain why you chose it and how you believe it will impact organizational effectiveness and the employee. Consider how the benefit will support the employee's needs and how it will contribute to the overall success of the organization.
4. Cite a scholarly source: Use at least one scholarly source to support your response. This could be a journal article, book, or other reputable source that provides evidence or research related to employee benefits and organizational effectiveness.
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Karen obtained a $33,000 loan at 3.2% compounded semiannually.
a-1. What monthly payment will repay the loan in 8 1/2 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Monthly payment $
a-2. How much interest will Karen pay over the life of the loan? (Round intermediate calculations to 2 decimal places and round your final answer to the nearest dollar.)
Total interest $
a.) The monthly payment will be $405.29.
b.) The total interest paid will be $8,339.58.
To answer these questions, we can use the formula for the monthly payment on a loan:
P = (r * PV) / (1 - (1 + r) ^ -n)
Where:
P = monthly payment
r = monthly interest rate
PV = present value of the loan
n = number of monthly payments
a-1. To find the monthly payment, we first need to convert the semiannual interest rate to a monthly interest rate and the number of years to the number of monthly payments:
r = 3.2% / 2 / 12 = 0.001333333
n = 8.5 * 12 = 102
Plugging these values into the formula, we get:
P = (0.001333333 * 33,000) / (1 - (1 + 0.001333333) ^ -102)
P = 405.29
Therefore, the monthly payment will be $405.29.
a-2. To find the total interest paid, we can multiply the monthly payment by the number of monthly payments and subtract the original loan amount:
Total interest = (P * n) - PV
Total interest = (405.29 * 102) - 33,000
Total interest = 41,339.58 - 33,000
Total interest = $8,339.58
Therefore, the total interest paid will be $8,339.58.
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I invested on January 1st 2013 10.000€ in a financial product that is giving a compounded interest with payments on a quarterly basis.
On January 1st 2024 I will get back my investment together with the interests, and I know that I will receive 37.411€.
It was a good investment, but I can´t remember the rate.
Could you tell me?
A company has the following cash flow:
Period C0= -1000
Period C1= +600
Period C2= -200
Period C3= +600
Should the company invest in the project if cost of capital is 4%?
For the first question, we can use the formula for compound interest with quarterly payments to find the rate:
A = P(1 + r/4)^(4n)
Where A is the final amount, P is the principal, r is the rate, and n is the number of years. Plugging in the given values:
37,411 = 10,000(1 + r/4)^(4*11)
3.7411 = (1 + r/4)^44
Taking the 44th root of both sides:
1.0213 = 1 + r/4
Solving for r:
r/4 = 0.0213
r = 0.0852
So the rate of the investment is 8.52%.
For the second question, we can use the net present value (NPV) formula of the cash flows to determine if the company should invest in the project:
NPV = C0 + C1/(1 + r)^1 + C2/(1 + r)^2 + C3/(1 + r)^3
Plugging in the given values:
NPV = -1000 + 600/(1 + 0.04)^1 + (-200)/(1 + 0.04)^2 + 600/(1 + 0.04)^3
NPV = -1000 + 576.92 + (-184.66) + 528.14
NPV = -79.6
Since the NPV is negative, the company should not invest in the project.
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Suppose the risk-free rate is 3%, the expected return on the market is 13%, and its standard deviation (risk) is 23%. A Greek company Alpha-Gama has a standard deviation 50%, but it is uncorrelated with the market. Calculate Alpha-Gama’s beta and expected return. Comment on your findings and explain your answer.
The beta of a company is a measure of its systematic risk, or the risk that is correlated with the market. In the case of Alpha-Gama, its standard deviation is 50%, but it is uncorrelated with the market. This means that its beta is 0, as it has no systematic risk. Alpha-Gama’s beta and expected return is 3 percent.
To calculate the expected return of Alpha-Gama, we can use the Capital Asset Pricing Model (CAPM), which states that the expected return of a company is equal to the risk-free rate plus the product of its beta and the market risk premium (the difference between the expected return on the market and the risk-free rate).
Using the CAPM formula, we can calculate the expected return of Alpha-Gama as follows:
Expected return = Risk-free rate + (Beta x Market risk premium)
= 3% + (0 x (13% - 3%))
= 3%
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On April 1 2020, Star Inc leased a machine to Dust Ltd. under a 5-year lease. Both companies use IFRS. Have December 31 year-end dates, and use the straight-line method for amortization. Details on the capital lease are:
- The lease agreement requires Dust Ltd. to make annual lease payments of $49,000. This amount includes $1,500 for insurance. Each payment is due every April 1, with the first payment due April 1 2020.
- At the end of lease term, Star Inc. will keep the machine.
- Dust Ltd's incremental borrowing rate is 9% per year. Star Inc's implicit interest rate of 7% per year. The lessee knows the implicit rate in the lease.
- The fair value of the machinery on April 1 2020 is $247,607. Star Inc's cost to buy the machine was $200,000.
- At the end of the lease term, the machine is expected to have a residual value of $55,000, which the lessee guarantees.
- The machine has an estimated economic life of 6 years.
Required:
Part A: Prepare a journal entries fro Dust Ltd. from April 1 2020 to April 1 2021
Part B: Show the balance sheet presentation for ONLY the liabilities for Dust Ldt. on December 31 2020
Part A: Journal Entries for Dust Ltd. from April 1, 2020 to April 1, 2021
April 1, 2020
Dr. Right-of-use Asset $247,607
Cr. Lease Liability $247,607
(To record the lease)
April 1, 2020
Dr. Lease Liability $49,000
Cr. Cash $49,000
(To record the payment of the first lease installment)
December 31, 2020
Dr. Interest Expense $12,874
Cr. Lease Liability $12,874
(To record the interest expense on the lease liability at the lessee's incremental borrowing rate of 9%)
December 31, 2020
Dr. Depreciation Expense $49,522
Cr. Accumulated Depreciation $49,522
(To record the depreciation expense on the right-of-use asset using the straight-line method over the lease term of 5 years)
Part B: Balance Sheet Presentation for Liabilities for Dust Ltd. on December 31, 2020
Lease Liability: $211,481 ($247,607 - $49,000 + $12,874)
(Note: The lease liability is the present value of the remaining lease payments discounted at the lessee's incremental borrowing rate of 9% per year).
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The public company "GQ ball pen industries ltd" Term paper.
Part 1:
Each group will be assigned one company by the course instructor to work with. Groups
will test the financial performance of the assigned company for the most recent 3 years
(using the published annual reports). For example, if a group is assigned Beximco
Pharmaceuticals Ltd, they must do ratio analysis for Beximco for the most recent 3 years.
Ratio Analysis should be made based on the following ratios-
I. Profitability Ratio – Gross Profit Margin, Net Profit Margin, Return on Asset and
Return on Equity
II. Asset Management Ratio – Average Age of Inventory, Average Collection Period,
Average Payment Period and Total Asset Turnover
III. Liquidity Ratio – Current Ratio and Quick Ratio.
IV. Debt Management Ratio – Debt-Equity Ratio and Interest Coverage Ratio
V. Market Ratio – P/E Ratio and EPS
VI. DuPont analysis – Decomposition of Return on Equity (ROE)
*** Calculation must be supported by relevant interpretation. Students have to show
and interpret each type of ratio containing the last 3 years’ performance of the
company. Without a logical and rich interpretation of the ratios, your assignment will
have no value. ***
Ratio Analysis must be done and submitted in PDF file. A detailed breakdown of the
calculation must be shown. Ex.-
Inventory + Trade Debtors + Advances Deposits and Payments + Short term Loan (Unsecured) + Cash Equivalents
Trade Creditors + Liabilities for Expenses + Liabilities for other Finance
3730808243 + 2204014900 + 1450936735 + 21386290 + 15768683854
843937277 + 27576542 + 1489930233
Part 2:
Students will have to show a one year trend analysis of the stock price for their assigned
company. The selected year (for the trend analysis) should be the latest year based on
which the financial ratios for the company were calculated. Furthermore they must follow
the accounting period (ex- Jul-Jun) of their assigned company.
Students need to do a thorough interpretation of the trend analysis of the stock price
movement. Stock price fluctuation must be graphically displayed through line-chart.
Interpretation of the fluctuation should be based on news archive, economic factors.
Trend Analysis should be performed using Excel.
Part 3:
As a reference to the work, each group must provide screenshots of pages from where
the amount/figures were derived and provide them in the appendix. Also an excel file
containing daily stock price for the entire year with trend analysis should be included in
the appendix. In addition to that, a reference page should also be included.
A separate findings section in the paper should take the reader in detail through the
companies’ performance over the same time period based on financial ratio and stock
price. Charts and graphs (explaining the financial performance) incorporated is a must.
This report will carry 10% Marks.
Use the online consultation hours of your respective faculty member if you need any
clarification.
V. Term Paper Structure:
Cover Page
Table of Content
Executive Summary
Background of the assigned company (Maximum half page)
Ratio Analysis: Calculation of financial ratios for the assigned company. It should be
submitted in a PDF file
Trend Analysis of Stock Price: Daily stock price of the assigned company with line charts
to show fluctuation. It should be submitted in Microsoft excel.
Analysis and findings: This section should have a detailed interpretation of company’s
financial position based on the all the ratios calculated in the previous section. Major
factors impacting the stock price fluctuation with citation (provided in reference).
Conclusion
References
Appendix
The term paper for the public company "GQ ball pen industries ltd" requires students to analyze the financial performance of the assigned company for the most recent 3 years using ratio analysis.
The analysis should be based on the following ratios: profitability ratio, asset management ratio, liquidity ratio, debt management ratio, market ratio, and DuPont analysis. Each ratio should be calculated and supported by relevant interpretation.
Students should also show a one year trend analysis of the stock price for their assigned company and provide a thorough interpretation of the trend analysis. Additionally, students should include screenshots of pages from where the amount/figures were derived, an excel file containing daily stock price for the entire year with trend analysis,
And a reference page in the appendix. The term paper should also include a separate findings section that takes the reader in detail through the companies’ performance over the same time period based on financial ratio and stock price.
The term paper should be structured with a cover page, table of content, executive summary, background of the assigned company, ratio analysis, trend analysis of stock price, analysis and findings, conclusion, references, and appendix.
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Ann found an apartment that costs $800,000 to buy. She will make a $100,000 down payment and will get a mortgage for $700,000. The mortgage will be a fully amortizing 30-year fixed rate mortgage at 4.25% with monthly payments and monthly compounding.
If Ann's house price grows 4.5% per year (compounded annually) and Ann continues making her mortgage payments, what will Ann's home equity be in 10 years (after her 120th payment)?
(round answer 2 decimal places, do not include commas or dollar signs in response)
Ann's home equity after 10 years if Ann's house price grows 4.5% per year is 684162.56.
Ann's home equity in 10 years can be calculated by finding the future value of the house price and subtracting the remaining mortgage balance.
First, we will calculate the future value of the house price using the formula FV = PV(1+r)^n, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of years.
FV = [tex]800,000(1+0.045)^{10}[/tex]
FV = $1,234,397.84
Next, we will calculate the remaining mortgage balance after 10 years. We will use the formula B = P[(1+r)^n - (1+r)^p]/[(1+r)^n - 1], where B is the remaining balance, P is the principal, r is the monthly interest rate, n is the total number of payments, and p is the number of payments made.
B = [tex]700,000[(\frac{1+0.0425}{12})^{360} - (\frac{1+0.0425}{12})^{120}]/[(\frac{1+0.0425}{12})^{360} - 1][/tex]
B = $550,235.28
Finally, we will subtract the remaining mortgage balance from the future value of the house price to find Ann's home equity.
Home Equity = $1,234,397.84 - $550,235.28
Home Equity = $684,162.56
Therefore, Ann's home equity in 10 years will be $684,162.56.
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Explain the four types of interpersonal conflicts and provide anappropriate workplace example for each.
Interpersonal conflict is a disagreement between two individuals or groups that occurs due to opposing beliefs or needs. The four types of interpersonal conflict are Intrapersonal ,Interpersonal ,Group ,Organizational .
1. Intrapersonal Conflict: Conflict that occurs within an individual, such as conflicting beliefs or desires. Example: A supervisor disagrees with their own decision and must decide whether to change their mind or remain with the initial decision.
2. Interpersonal Conflict: Conflict between two or more people due to a difference in opinions, beliefs, or values. Example: Two coworkers disagree about the best way to complete a project and must come to a compromise.
3. Group Conflict: Conflict that occurs between groups, such as within a team or between departments. Example: A department is trying to complete a task but is having difficulty deciding which resources to use due to competing interests between departments.
4. Organizational Conflict: Conflict between two or more organizations that affects business operations. Example: Two companies are trying to acquire the same resources and must negotiate an agreement that works for both organizations.
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There are possible actions a company can take to improve the quantity and quality of its marketing intelligence.a): 7 b): 8 c): 9 d): 10A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment.a): True b): FalseFraming occurs when customers are given a perspective or point of view that allows the seller to "put its best foot forward".a): Yes b): NoThere are categories _________ of classification of buyer–supplier relationships.a): 6 b): 7 c): 8 d): None of the aboveThere are 4 steps in customer value analysis. a): Yes b): No
a) The correct answer is 8. There are 8 possible actions a company can take to improve the quantity and quality of its marketing intelligence.
b) The correct answer is True. A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment.
c) The correct answer is Yes.
d)The correct answer is 7.There are 7 categories of classification of buyer–supplier relationships. e) The correct answer is No.
For first question,There are 8 possible actions a company can take to improve the quantity and quality of its marketing intelligence. These include:
Motivating distributors, Networking externally, Setting up a customer advisory panel, Utilizing government data sources, Purchasing information from outside suppliers,
Collecting competitive intelligence, and 8) Conducting online research.
b) The correct answer is True. This includes information about customers, competitors, and any other factors that may affect the company's performance.
c) The correct answer is Yes. Framing occurs when customers are given a perspective or point of view that allows the seller to "put its best foot forward".
d) There are 7 categories of classification of buyer-supplier relationships.
e) The correct answer is No. There are 5 steps in customer value analysis. 4) Examining how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis, and 5) Monitoring customer values over time.
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A firm that sells oil worries that if oil price is too low, they will suffer a loss and lead to bankruptcy. They will be making a delivery at the end of the year, and they will receive the spot price at that time. Their cost of extracting oil was $120 per barrel. The firm will bankrupt if they lose more than $30 per barrel. The one year risk-free interest rate is 2% p.a.. Which of the following would be the best hedging strategy that would guarantee the firm avoid bankruptcy? *In the risk management chapter, there is no need to compound operational costs, i.e. there is no need to compound $120. a. Short forward with an exercise price of 91.8 O b. Long forward with an exercise price of 91.8 O c. Long Put with a strike price of 120 and a premium of $30.75. O d. Short Call with a strike price of 120 and a premium of 3.12
The best hedging strategy that would guarantee the firm avoids bankruptcy is option c. long put with a strike price of 120 and a premium of $30.75.
A long put option gives the holder the right, but not the obligation, to sell an asset at a specified price (the strike price) within a specified period of time.
In this case, the firm can buy a put option with a strike price of $120 and a premium of $30.75.
This means that if the spot price of oil falls below $120 at the end of the year, the firm can exercise the option and sell their oil at $120, avoiding any losses greater than $30 per barrel.
The premium of $30.75 is the cost of buying the option, and it is the maximum amount the firm can lose on the trade.
Therefore, option c is the best hedging strategy for the firm because it guarantees that they will not lose more than $30 per barrel, which is the amount they can afford to lose without going bankrupt.
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Malaysia is known as the only country in this world that has a complex, dynamic, and effective regulations for conventional and Islamic financial systems. Explain the main objective of the Malaysian government having a separate legislation for both systems. (5 marks)
The main objective of the Malaysian government in having separate legislation for both conventional and Islamic financial systems is to cater to the different needs and beliefs of the Malaysian population, promote financial stability, and protect the rights of consumers.
The Malaysian government recognizes that there are significant differences between the two systems and therefore, separate legislation is necessary to ensure that each system is regulated effectively.
The conventional financial system is based on the principles of capitalism and operates on the basis of interest rates. On the other hand, the Islamic financial system is based on the principles of Shariah law and prohibits the charging of interest.
As a result, the Malaysian government has created separate legislation to ensure that each system operates in accordance with its respective principles.
Additionally, the Malaysian government aims to promote financial stability and protect the rights of consumers by having separate legislation for both systems. This ensures that both systems are regulated effectively and that consumers are protected from any potential risks.
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Why did Europeans and not Asians undertake the voyages of discovery connecting the old world with the new?
Europeans undertook the voyages of discovery connecting the old world with the new because they were driven by a variety of factors, including economic, religious, and technological motivations.
Economically, European powers were interested in finding new trade routes to Asia and new sources of wealth, such as gold and spices. Religious motivations included the desire to spread Christianity to new lands and to find Christian allies against the Islamic powers in the Middle East. Technological advancements, such as the development of the compass and the astrolabe, allowed Europeans to navigate the open seas more accurately and effectively.
While Asian powers, such as China, did undertake some voyages of exploration, they did not have the same economic, religious, and technological motivations as the Europeans. As a result, they did not undertake the same level of exploration and colonization as the Europeans.
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A. What type/(s) of Appeal/(s) and Informational Structure under
Message Structure/Creative Strategy does IDLC uses to develop the
Message of those advertisements?
IDLC uses a combination of different types of appeals and informational structures to develop the message of their advertisements and include Emotional Appeal , Rational Appeal , Informational Structure
1. Emotional Appeal: IDLC uses emotional appeal to create an emotional connection with their target audience. This is achieved through the use of persuasive language, imagery, and storytelling.
2. Rational Appeal: IDLC also uses rational appeal to present logical arguments and factual information to their target audience. This is done through the use of statistics, data, and other forms of evidence.
3. Informational Structure: IDLC uses informational structure to organize the information in their advertisements in a way that is easy for their target audience to understand. This includes using headings, bullet points, and other visual cues to help guide the reader through the information.
Overall, IDLC uses a combination of these different types of appeals and informational structures to develop the message of their advertisements and effectively communicate with their target audience.
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QUESTION 1 Financial Institution XY has assets of $1 million Invested in a 30-year, 10 percent annual coupon. Treasury bond selling at par.
The duration of this bond has been estimated at 9.94 years.
The assets are financed with equity and a $900.000, year, annual coupon bond selling at par with duration 1.8975
a.What is the leverage-adjusted duration gap?
What risk is the Fl facing? Explain
b. What is the impact on equity value if the relative change in market interest rates is a decrease of 20 basis points? NOTE, The relative change in Interest rates is a ΔR/(I+R)
c Using the information calculated in parts (a) and (b), what can be said about the desired duration gap for a financial institution if interest rates are expected to increase or decrease.
d. Verify your answer to part (c) by calculating the change in the market value of equity assuming that the relative change in all market interest rates is an increase of 30 basis points.
e. What would the duration of the assets need to be to immunize the equity from changes in market interest rates?
f. The Fl wants to bedge its interest rate risk exposure using bond futures. Suppose the current futures price quote is $95 per $100 of face value for the benchmark 20-year, bond underlying the nearby futures contract, the minimum contract size is $100,000, and the duration of the deliverable bond is 9 years.
i. How can futures be used to hedge the risk faced by the FI?
ii. Calculate number of futures contracts to be used to fully hedge the balancesheet
g. What is the meaning of the basis risk adjustment ratio? Calculate the number futures contracts should have been used using the 20-year bond contracts if the ratio were b = 1.32. Calculate the optimal hedge ratio in this case and explain its meaning
a. The leverage-adjusted duration gap is 8232250 and the risk Fl facing is interest rate risk. b. The impact on equity value is 14967.73. c. The desired duration gap for a financial institution if interest rates are expected to increase or decrease is a negative duration gap or a positive duration gap respectively. d. The change in the market value of equity is -22453.10. e. The duration of the assets need to be 1.8975. f. i. FI can sell bond futures to hedge its interest rate risk exposure. ii. The number of futures contracts to be used to fully hedge the balance sheet is 9113.42. g. The basis risk adjustment ratio refers to the ratio of spot price variation to futures price variation. The number futures contracts is 12025.72. Optimal hedge ratio would need to be calculated using the covariance and variance of the spot and futures prices.
a. The leverage-adjusted duration gap is the difference between the duration of the assets and the duration of the liabilities, weighted by their respective values. In this case, the leverage-adjusted duration gap is:
LADG = (1 million)(9.94) - (900,000)(1.8975) = 9940000 - 1707750 = 8232250
The FI is facing interest rate risk, as the value of its assets and liabilities will change with changes in market interest rates.
b. The impact on equity value if the relative change in market interest rates is a decrease of 20 basis points is:
ΔE = -LADG * (ΔR/(1+R)) = -8232250 * (-0.002/(1+0.10)) = 14967.73
c. The desired duration gap for a financial institution if interest rates are expected to increase is a negative duration gap, as this will result in an increase in the value of equity. Conversely, if interest rates are expected to decrease, the desired duration gap is a positive duration gap, as this will result in an increase in the value of equity.
d. The change in the market value of equity assuming that the relative change in all market interest rates is an increase of 30 basis points is:
ΔE = -LADG * (ΔR/(1+R)) = -8232250 * (0.003/(1+0.10)) = -22453.10
e. The duration of the assets would need to be equal to the duration of the liabilities in order to immunize the equity from changes in market interest rates. In this case, the duration of the assets would need to be 1.8975.
f. i. Futures can be used to hedge the risk faced by the FI by taking a position in the futures market that is opposite to the position in the spot market. In this case, the FI can sell bond futures to hedge its interest rate risk exposure.
ii. The number of futures contracts to be used to fully hedge the balance sheet is:
N = (LADG * V)/(Df * Pf) = (8232250 * 1)/(9 * 95) = 9113.42
g. The basis risk adjustment ratio is the ratio of the change in the spot price to the change in the futures price. It is used to adjust the number of futures contracts to account for basis risk. If the ratio were b = 1.32, the number of futures contracts should have been:
N = (LADG * V * b)/(Df * Pf) = (8232250 * 1 * 1.32)/(9 * 95) = 12025.72
The optimal hedge ratio is the ratio of the covariance of the change in the spot price and the change in the futures price to the variance of the change in the futures price. It is used to determine the optimal number of futures contracts to minimize the variance of the hedged portfolio. The optimal hedge ratio in this case would need to be calculated using the covariance and variance of the spot and futures prices.
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As a cemetery manager, you are considering offering perpetual care contracts. You estimate that maintenance will cost you $200 during the first year and will increase by 2% every year thereafter.
If the appropriate discount rate is 5.5%, how much do you need to charge to break even on a perpetual care contract?
Please draw the timeline
You need to charge $3,709.09 to break even on a perpetual care contract.
To determine how much to charge to break even on a perpetual care contract, we need to use the present value of a perpetuity formula. The formula is PV = C / r, where PV is the present value, C is the annual cash flow, and r is the discount rate. In this case, C is the maintenance cost and r is the discount rate.
First, we need to determine the annual cash flow, which is the maintenance cost that will increase by 2% every year. We can use the formula C = C0 * (1 + g) [tex]x^{2}[/tex] n, where C0 is the initial maintenance cost, g is the growth rate, and n is the number of years. In this case, C0 is $200, g is 2%, and n is 1.
C = $200 * (1 + 0.02) [tex]x^{2}[/tex] 1
C = $200 * 1.02
C = $204
Next, we can plug in the values into the present value of a perpetuity formula:
PV = C / r
PV = $204 / 0.055
PV = $3,709.09
The timeline would look like this:
Year 0: Charge $3,709.09
Year 1: Maintenance cost $200
Year 2: Maintenance cost $204 (2% increase from year 1)
Year 3: Maintenance cost $208.08 (2% increase from year 2)
And so on, with the maintenance cost increasing by 2% every year.
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the workforce. Implementing
the month -
month
morkers look formation to work
Emily runs a garage that sells new tyres for cars and repairs
manager
Will
punctures.
Emily is planning to provide a new mobile puncture repair service. One of Emily's
employees will visit a customer's home or workplace to repair a puncture.
This service will be offered within 15 miles of her garage. Only one of her
competitors provides a similar service.
Explain one benefit and one drawback for Emily of introducing this new service.
One benefit of introducing the new mobile puncture repair service is that it can provide a competitive advantage for Emily's garage.
What benefits would Emily have from the service?
By offering a convenient and efficient solution for customers who need puncture repairs, Emily can attract new customers and increase customer loyalty. This could lead to an increase in revenue and profitability for her business.
One potential drawback of introducing the new service is that it may require additional resources and investment. Emily will need to hire an employee to provide the mobile service, purchase a vehicle and equipment, and possibly advertise the new service.
This can be a significant cost for a small business and may impact the overall profitability of the business in the short term. Additionally, there may be unforeseen challenges associated with the mobile service, such as increased travel time and logistical issues, which could impact the quality of service provided and potentially harm the business's reputation.
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Question 1. Analyse the importance of creating customer
value for the owner of a taxi. 5 marks (Subject:
Marketing)
Creating customer value is important for the owner of a taxi because it helps to build customer loyalty and attract new customers. By providing excellent customer service, such as arriving on time, offering a clean and comfortable taxi, and having friendly and professional drivers, the owner of a taxi can create a positive experience for their customers.
This will increase the likelihood that customers will use the taxi service again in the future, and they may also recommend it to their friends and family. This can lead to increased revenue and profits for the owner of the taxi, which is essential for the success of the business.
Additionally, creating customer value can help the owner of a taxi to differentiate themselves from their competitors, which is important in a competitive market. By providing a unique and valuable service, the owner of a taxi can gain a competitive advantage and attract more customers.
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