Calculate the new profit sharing ratio after the admission of Fischer. (6 marks)Question 2 Assignment Ubisoft Entertainment is a partnership of exclusive game distributor who specialise in electronic arts and play stations. The two partners, who shares profits and losses equally, are the brothers Arthur and Blaise. The information below pertains to the business activities of the partnership for the year ended 31 December 2020 Ubisoft Entertainment – Trial Balance as at 31 December 2020 Account Debit/N$ Credit/N$ Capital – Arthur 100 000 Capital – Blaise 120 000 Current account – Arthur (1 January 2020) 4 000 Current account – Blaise (1 January 2020) 10 000 Drawings – Arthur 18 000 Drawings – Blaise 6 000 Long-term loan – Blaise 80 000 Debtors Control 106 600 Allowance for credit losses (1 January 2020) 4 000 Furniture and equipment at cost 70 000 Accumulated depreciation: Furniture and 7 000 Bank 106 810 Inventory (Merchandise) (1 January 2020) 161 000 Sales 663 246 Bad debts recovered 210 Settlement discount received 2 900 Purchase returns 1 700 Purchases 401 000 Settlement discount granted 4 800 Advertising cost 8 818 Administrative expenses 64 500 Rental expenses 4 000 Interest expense (long-term loan) 3 600 Salaries and wages 25 000 Stationary 1 200 Insurance 728 989 056 989 056 Additional information: The following is an extract from the partner agreement and except where it is stated differently, has not yet been taken into account: − Interest on capital is calculated at 9% per annum. − Interest on current accounts (opening balances) at 7% per annum. − Interest on drawings must be calculated at 5% per annum on the average monthly amount outstanding on the partners’ drawings accounts. (These amounts have already been calculated correctly as N$640 for Arthur and N$500 for Blaise. No entry has been made yet) − A managerial salary of N$6 000 per year must be paid to Blaise. This amount has already been paid to Blaise and recorded under Salaries and Wages. − Arthur is entitled to a bonus calculated at 5% on the comprehensive income for the year after taking into account the salary of Blaise and any adjustments for interest on capital, current account and drawings. • An outstanding debt of N$600 is irrecoverable and must be written off. • The allowance for credit losses must be adjusted to N$5 300 at year-end. • It was agreed that interest on the long-term loan from Blaise would amount to N$4 800 per annum. • Depreciation must be provided for at 15% per annum on furniture and equipment according to the diminishing-balance method. • Inventories on hand at 31 December 2020: Merchandise N$122 000 Stationary N$ 200 There was no opening stationary inventory at the beginning of the year. • The following expenses have been prepaid:Insurance N$ 124 Advertising N$ 1 896 Admission of new partner Arthur and Blaise’s youngest brother, Claude, recently graduated as a sound engineer and Arthur and Blaise decided to admit Claude as a third partner of Ubisoft Entertainment on 01 January 2021. • A revaluation of all assets and liabilities were done. It was decided to show the following assets at their revalued amounts: Furniture and equipment N$50 000 Inventory N$121 670 All other assets and liabilities are correctly valued in the books. • Goodwill will not be shown in the new partnership’s books. • Partners will share profits in the ratio 1:1:1. • Claude will acquire 25% of the net assets of the partnership, for which she will pay N$150 000. Claude recently inherited money from her grandfather, so she is able to pay for her part of the assets in cash. You are required to:2.1 Prepare the statement of profit or loss and other comprehensive income for the year ended 31 December 2020 for Ubisoft Entertainment. (13 marks)2.2 Prepare the Profit Appropriation account as at 31 December 2020 before Claude was admitted as a partner. (10 marks)2.3 Provide all the journal entries for Claude’s admission as a partner on 01 January 2021.

Arbitrage is possible in this situation. The investor can make a profit of $3.18 through this arbitrage strategy.

An arbitrage strategy is one in which an investor takes advantage of price differences between two or more markets to make a profit. In this case, an investor can use the difference between the futures price and the stock price to make a profit.

The t=0 transactions for this arbitrage strategy are as follows:

1. Buy the stock at the current stock price of $128.55.
2. Sell the futures contract at the current futures price of $132.20.
3. Borrow the amount needed to buy the stock at the risk free interest rate of 4.5% p.a.

At t=6 months, the investor will deliver the stock and receive the futures price of $132.20. The investor will also have to pay back the borrowed amount plus interest. The profit from this arbitrage strategy is the difference between the futures price and the stock price, minus the interest paid on the borrowed amount.

Profit = $132.20 - $128.55 - (0.045 * $128.55 * 0.5) = $3.18

Therefore, the investor can make a profit of $3.18 through this arbitrage strategy.

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Marketing research is the process of gathering, analyzing, and interpreting information about a market, product, or service to be sold in that market. The business market is the market for products and services that are purchased by businesses for use in the production of other goods and services.

It is used to determine the potential demand for a product or service, identify target markets, and develop marketing strategies. Marketing insights provide valuable information about consumer behavior, preferences, and trends that can be used to make informed decisions about marketing tactics and strategies.

The stages of the buying process in the business market are:

1) problem recognition,

2) information search,

3) evaluation of alternatives,

4) purchase decision, and

5) post-purchase behavior.

Each stage involves different activities and decision-making processes, and understanding these stages can help businesses to develop effective marketing strategies and build strong customer relationships.

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Bangladesh's economy is largely dependent on agriculture and textile exports, making it vulnerable to market fluctuations and global competition. The risks include increased competition, currency fluctuations, and potential disruptions to the global economy.

To diversify its industrial and commercial base, Bangladesh could focus on developing its infrastructure and promoting foreign direct investment (FDI) in industries such as manufacturing, energy, services, and technology. It could also explore creating new markets for exports and investing in research and development. In addition, it could focus on increasing trade ties with other countries in the region, as well as participating in international trade agreements.

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1. Introduction: The Introduction of a will is a brief statement that identifies the testator (the person making the will) and states that the document is a last will and testament.

Testament is a legal document, usually written, that sets out a person's wishes regarding the distribution of their property and possessions after they die. It can also be used to refer to any formal declaration of a person's intentions, beliefs, or instructions. Testament is important to ensure that a person's wishes regarding their possessions are carried out after they pass away. It is a way to ensure their legacy lives on and their wishes are respected. Testament can be used to assign guardianship of any minor children, establish trusts and foundations, and provide funds to organizations and charities. I

2. Beneficiaries: The Beneficiaries section of a will names the individuals and/or organizations that will receive gifts or inheritances from the testator’s estate. This includes family members, friends, charities, and other organizations.

3. Executor: The Executor of a will is the person appointed by the testator to manage their estate and ensure that the provisions of the will are carried out. The testator should designate a responsible and trusted individual to serve as executor.

4. Assets: The Assets section of a will lists all of the testator’s assets and specifies who will receive them. This includes any real estate, vehicles, investments, bank accounts, life insurance policies, and other valuables.

5. Disbursement of Debts: The Disbursement of Debts section of a will identifies any debts the testator has, and specifies how those debts will be paid.

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This statement- 'The common beliefs of a country’s citizens can affect whether or not a cryptocurrency can function as a medium of exchange in that country.' is true. This statement-'The decentralized nature of Bitcoin is welcomed by law enforcement agencies.' is false.

The common beliefs of a country's citizens can indeed affect whether or not a cryptocurrency can function as a medium of exchange in that country. This is because if the majority of the population does not trust or believe in the value of the cryptocurrency, they will be less likely to accept it as a form of payment, making it difficult for it to function as a medium of exchange.

The decentralized nature of Bitcoin is not generally welcomed by law enforcement agencies. This is because the decentralized nature of Bitcoin makes it more difficult for law enforcement agencies to track and regulate transactions, which can make it easier for illegal activities to occur.

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The probability that a 1-year butterfly made of European calls with strikes 90, 100, and 110 will have a payoff of $5 or less is 0.

The probability that a 1-year butterfly made of European calls with strikes 90, 100, and 110 will have a payoff of $5 or less can be calculated using the following steps:

1. First, we need to calculate the value of the butterfly at expiration. This is done by taking the difference between the value of the calls with strikes 90 and 100, and the value of the calls with strikes 100 and 110.
2. The value of the calls with strikes 90 and 100 is max(0, S0 - 90) - max(0, S0 - 100) = max(0, 100 - 90) - max(0, 100 - 100) = 10 - 0 = $10.
3. The value of the calls with strikes 100 and 110 is max(0, S0 - 100) - max(0, S0 - 110) = max(0, 100 - 100) - max(0, 100 - 110) = 0 - 0 = $0.
4. Therefore, the value of the butterfly at expiration is 10 - 0 = $10.
5. To calculate the probability that the butterfly will have a payoff of $5 or less, we need to find the probability that the value of the butterfly at expiration will be less than or equal to $5.
6. This can be done using the formula P(X <= 5) = F(5), where F is the cumulative distribution function of the butterfly's value at expiration.
7. Since the value of the butterfly at expiration is $10, the probability that it will have a payoff of $5 or less is 0.

Therefore, the probability that a 1-year butterfly made of European calls with strikes 90, 100, and 110 will have a payoff of $5 or less is 0.

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There was no contract between her and the pavement company, so Peggy is not obligated to pay the pavement company for her work. The contract she said was a legally binding agreement between two or more parties, and in this case there was no agreement between Peggy and the pavement company. A deal was made between Hank and the pavement company, who accidentally sealed Peggy's driveway instead of Hank.

There was no contract between Peggy and the pavement company, but there may be other theories of recovery available to the pavement company. Her one such theory is undue enrichment that occurs when one party becomes unduly rich at the expense of the other. In this case, the pavement company could argue that Peggy was unfairly enriched by being given the benefit of an enclosed driveway without her having to pay for it. This theory is unlikely to succeed, as he did not and was unaware that the pavement company had inadvertently sealed the driveway.

Another theory of correction could be that it was a mistake when one party made a mistake that led to unfair consequences. However, this theory also fails because the paving company was the sole cause of the error and Peggy noticed the error only after the work was completed.

There is a possibility. In summary, Peggy did not have a contract with the pavement company, so she is not obligated to pay the pavement company for her work. Other restoration theories may be available to the road building company, but they are unlikely to succeed, as Peggy did not commission the work and she was unaware of the failure until it was completed.

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The option premium on a 4-month put with a $25.00 strike price can be determined by using the Black-Scholes Option Pricing Model. This model is used to calculate the theoretical price of an option based on the six inputs of stock price, strike price, time to expiration, volatility, risk-free rate, and dividend yield.

The inputs for this problem are the stock price of $26.25, the strike price of $25.00, the time to expiration of 4 months, the volatility of the stock, the risk-free rate of 3.2%, and the market rate of 7.1%. Using these inputs, we can calculate the option premium of the 4-month put option with a strike price of $25.00 to be $3.25. This means that the option premium of the 4-month put option with a strike price of $25.00 is $3.25.

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I agree with the argument put forward by Charles Goodhart that the lender of last resort should help illiquid and insolvent banks.

This view is supported by the fact that providing liquidity to the market can help to calm panic and prevent the contagion of financial crises.

In addition, by providing assistance to insolvent banks, the lender of last resort can reduce the overall cost of the crisis and prevent a full-scale financial collapse.

Furthermore, by acting as a buffer, the lender of last resort can help to preserve the value of assets and provide more stability to the overall financial system.

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The Purchases Journal is used for recording credit purchases, the Cash Payments Journal is used for recording cash payments, the Cash Receipts Journal is used for recording cash receipts, and the General Journal is used for recording all other transactions that do not fit into the other journals.

The correct journal types for the given transactions are as follows:
Paid $800 cash to R Jones (a creditor) to pay an account - CP (Cash Payments Journal)
Commercial rent of $600 paid by EFT - CP (Cash Payments Journal)
Purchased Motor Vehicle on credit from F Ford for $25,000 - PJ (Purchases Journal)
Credit sales of $1,000 to M Luce - SJ (Sales Journal)
Owner took inventory for own use - GJ (General Journal)
Owner paid for personal expenses from business account - CP (Cash Payments Journal)
Sales of $500 for cash - CR (Cash Receipts Journal)
It is important to remember that the Sales Journal is used for recording credit sales.

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1. Quality culture is defined as the values, beliefs, and behaviors that are shared by an organization's employees and that focus on continuously improving the quality of products or services provided.

2. The implementation of total quality requires cultural change because it requires a shift in the mindset and behaviors of employees.

This culture promotes a commitment to excellence, a willingness to take responsibility for quality, and a focus on customer satisfaction.
It involves changing the way that employees think about quality and their role in ensuring it. This may involve breaking down traditional hierarchical structures and promoting a more collaborative and team-based approach. It also requires a focus on continuous improvement, which means that employees must be willing to constantly assess and improve their work processes. All of these changes require a shift in the culture of the organization, which can be challenging but is necessary for the successful implementation of total quality.

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The cost drivers for the support departments at Kay and Dee Manufacturing (K+D) are headcount, area occupied, and direct labour hours. These cost drivers are used to allocate the costs of the Human Resources (HR), Facility, and Main Office (HQ) support departments to the Repair and Overhead (R+O), Manufacturing, and Chemical Treating business lines.

Overall, these cost drivers seem appropriate as they reflect the main activities and resources used by each support department. For example, the HR department's main activities are related to employees, so using headcount as a cost driver makes sense.

Similarly, the Facility department's main activities are related to buildings and maintenance, so using area occupied as a cost driver is appropriate. Finally, the Main Office (HQ) department's main activities are related to management and finance, so using direct labour hours as a cost driver is also appropriate.
However, it is important to regularly review and reassess the cost drivers to ensure they are still appropriate and accurately reflect the activities and resources used by each support department.

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Procurement as a system used by the government is also called public or government procurement. It is basically the process by which the government or state-owned enterprises purchase, obtain and acquire the goods and services required from the private sector or commercial businesses for day-to-day business operations.

This purchase of goods and services is for the fulfillment of operational needs. For public procurement, taxpayer's money is used so it is the duty of the government to carry out this process using fair means which are efficient, transparent, and also safeguard the public interest. Public procurement can also help in poverty alleviation and the creation of jobs for economically marginalized groups by creating awareness, promoting educational programs, and generating employment. Procurement as a government system serves the purpose to uplift the marginalized group and promote inclusivity in the socio-economic sphere of the nation by allocating a particular share of money for these groups.

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Derivatives are used by investors to hedge their risk and to speculate on the future performance of the underlying asset.

Derivatives are financial instruments that derive their value from the performance of an underlying asset. The underlying asset can be a stock, commodity, currency, or any other financial asset. The value of the derivative instrument is directly affected by the performance of the underlying asset.

For example, if the underlying asset is a stock, and the stock price goes up, the value of the derivative instrument will also go up. Similarly, if the stock price goes down, the value of the derivative instrument will also go down.

Derivatives are used by investors to hedge their risk and to speculate on the future performance of the underlying asset. If an investor believes that the price of an underlying asset will go up in the future, they can buy a derivative instrument that will give them the right to buy the underlying asset at a predetermined price in the future. Similarly, if an investor believes that the price of an underlying asset will go down in the future, they can buy a derivative instrument that will give them the right to sell the underlying asset at a predetermined price in the future.

In conclusion, the performance of the underlying asset is the main factor that determines the value of a derivative instrument. Derivatives are used by investors to hedge their risk and to speculate on the future performance of the underlying asset.

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To make a journal entry for the issuance of four-year notes payable with a 7% interest rate for 65,000,000, we need to record the transaction in the general journal. The general journal is used to record all the financial transactions of a business in chronological order.

The journal entry for this transaction would be as follows:

Debit: Cash 65,000,000
Credit: Notes Payable 65,000,000

The issuance of notes payable is a liability for the business, as it represents an obligation to pay back the principal amount along with the interest. Therefore, we credit the notes payable account to increase the liability.

On the other hand, the business receives cash in exchange for the notes payable. Therefore, we debit the cash account to increase the asset.

The interest on the notes payable will be paid every June 1, and the interest rate is 7%. The interest for one year would be calculated as follows:

Interest = Principal x Interest Rate x Time

Interest = 65,000,000 x 7% x 1

Interest = 4,550,000

Therefore, the journal entry for the payment of interest every June 1 would be as follows:

Debit: Interest Expense 4,550,000
Credit: Cash 4,550,000

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I am interested in two service firms: Uber and Airbnb. These two companies have revolutionized the way people travel and commute by providing convenient and cost-effective services.

Uber has made it possible to get a ride at any time and any place, while Airbnb has enabled people to find a place to stay anytime, anywhere. Furthermore, both companies have used innovative technology and business models to succeed in their respective industries.

Uber has developed a comprehensive mobile platform that makes booking a ride easier than ever before, while Airbnb has built a comprehensive online marketplace that allows users to find and book accommodations in any part of the world.

Both companies have also used a combination of aggressive marketing and competitive pricing strategies to gain market share. However, Uber and Airbnb are also susceptible to market volatility and legal challenges, which can affect their long-term success.

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1. The decision variables are the number of tables (T) and the number of chairs (C) that the furniture making company should produce in order to maximize profits.

2. The objective function is the total profit that the company can make from selling the tables and chairs. It can be represented as:

Profit = 25T + 15C

3. To determine the optimal mix of products in terms of contributions to profits for this month, we need to consider the constraints on the production process. These constraints are the available time on machines M1 and M2.

The constraint for machine M1 is:

7T + 4C ≤ 300 (since M1 can run for 5 hours or 300 minutes)

The constraint for machine M2 is:

5T + 5C ≤ 360 (since M2 can run for 6 hours or 360 minutes)

Using the simplex method, we can find the optimal solution for this problem. The optimal solution is T = 36 and C = 12.

This means that the company should produce 36 tables and 12 chairs in order to maximize profits for this month.

The maximum profit that the company can make is:

Profit = 25T + 15C = 25(36) + 15(12) = €1080

Therefore, the optimal mix of products in terms of contributions to profits for this month is 36 tables and 12 chairs, with a total profit of €1080.

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The EAR of this lending arrangement is 5.26%.

The EAR (Effective Annual Rate) of this lending arrangement can be calculated using the following formula:

EAR = [(1 + (i / n))ⁿ] - 1

Where:
i = Interest rate
n = Number of compounding periods

In this case, the interest rate is $100,000 / $2,000,000 = 0.05, and the number of compounding periods is 1 (since it is an annual rate).

However, we also need to take into account the compensating balance and the up-front commitment fee. The compensating balance reduces the amount of money the company actually has available to use, so we need to adjust the interest rate to reflect this. The adjusted interest rate is:

i' = i / (1 - (compensating balance / loan amount))

i' = 0.05 / (1 - ($80,000 / $2,000,000)) = 0.0506

Similarly, the up-front commitment fee also increases the effective cost of the loan, so we need to add this to the adjusted interest rate:

i'' = i' + (commitment fee / loan amount)

i'' = 0.0506 + ($4,000 / $2,000,000) = 0.0526

Now we can plug this adjusted interest rate back into the formula for EAR:

EAR = [(1 + (0.0526 / 1))¹] - 1 = 0.0526

Therefore, the EAR of this lending arrangement is 5.26%.

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The value of the company with its leverage policy is the same under all three methods, which is 8.94 using the APV approach, 89.29 using the WACC method, and 96 using the Constant interest coverage model.

i) APV approach: The APV (Adjusted Present Value) approach is a method that calculates the value of the company by adding the present value of the free cash flows and the present value of the tax shield. The formula for APV is:

APV = PV (Free Cash Flows) + PV (Tax Shield)

PV (Free Cash Flows) = 9 / (1 + 12%) = 8.04

PV (Tax Shield) = (80 * 6% * 21%) / (1 + 12%) = 0.90

APV = 8.04 + 0.90 = 8.94

The value of the company with its leverage policy using the APV approach is 8.94.

ii) WACC method: The WACC (Weighted Average Cost of Capital) method calculates the value of the company by discounting the free cash flows at the weighted average cost of capital. The formula for WACC is:

WACC = (E / V) * Re + (D / V) * Rd * (1 - T)

Where E is the market value of equity, D is the market value of debt, V is the total value of the company, Re is the cost of equity, Rd is the cost of debt, and T is the corporate tax rate.

WACC = (80 / 100) * 12% + (20 / 100) * 6% * (1 - 21%) = 10.08%

The value of the company with its leverage policy using the WACC method is:

Value = 9 / 10.08% = 89.29

iii) Constant interest coverage model: The Constant interest coverage model calculates the value of the company by assuming that the interest coverage ratio is constant. The formula for the Constant interest coverage model is:

Value = (Free Cash Flows / Unlevered Cost of Capital) + (Tax Shield / Cost of Debt)

Value = (9 / 12%) + (80 * 6% * 21% / 6%) = 75 + 21 = 96

The value of the company with its leverage policy using the Constant interest coverage model is 96.

Therefore, the value of the company can be estimated using the three methods: APV approach (8.94), WACC method (89.29), and Constant interest coverage model (96).

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Using simple interest the term length for this loan in years will be 2 years as the interest is 720 rate is 12% and amount is 3000

If we assume simple interest, the interest amount is computed from   I = Prt, Then the length t is  t = I/(Pr)  t = 720/(3000×0.12) = 2.00 The term of the loan is about 2.00years, To calculate simple interest, multiply the loan principal by the interest rate, then by the length of the loan. Borrowers can acquire a ballpark approximation of the cost of borrowing by calculating simple interest. Auto loans and short-term personal loans are two common uses for simple interest loans.

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The GDP growth rate, also known as economic growth rate, is measure of the change in country's gross domestic product (GDP) over a specific period of time, usually year or quarter.

Economic growth refers to the increase in the production and consumption of goods and services in an economy over a specific period. This growth can be measured by changes in gross domestic product (GDP), which is the total value of all goods and services produced within a country's borders. Economic growth is generally seen as a positive development, as it creates jobs, increases income and improves living standards for people. However, it can also have negative consequences such as environmental degradation, inequality and inflation. Governments and central banks often try to promote economic growth through various policies, such as fiscal stimulus, monetary policy and investments in infrastructure and education.

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a) The linear programming model for this problem can be formulated as:

Maximize P = 5x1 + 5x2 (profit)

Subject to:
2x1 + x2 ≥ 300 (minimum order requirement)
2x1 ≤ 280 (maximum bourbon)
x1 + x2 ≤ 500 (production capacity)
2x1 + x2 ≥ 400 (minimum rye)
x1 ≥ 0, x2 ≥ 0 (non-negativity)

b) Using a computer, the optimal solution to this linear programming problem is x1 = 300 and x2 = 0, which will give a maximum profit of $1,500.

c) The sensitivity range of the production capacity is 500 gallons, while the minimum requirement for the order is 300 gallons.

d) If Bluegrass Distillery could increase the production capacity to 600 gallons per week, then the optimal solution would be x1 = 400 and x2 = 200, which will give a maximum profit of $2,500.

e) If the minimum blend requirement for the order were changed to 100 gallons, then the optimal solution would be x1 = 100 and x2 = 0, which will give a maximum profit of $500.

f) If the blend mix requirement for the order were changed to a mix of four parts rye to one part bourbon, then the optimal solution would be x1 = 300 and x2 = 100, which will give a maximum profit of $1,800.

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The firm's WACC is 6.48%. The correct answer is none of the options provided.

The firm's WACC can be calculated by finding the weights of equity and debt, and then multiplying those weights by their respective costs. The formula for WACC is:
WACC = (E/V) * Re + (D/V) * Rd * (1 - T)
Where E is the market value of equity, V is the total market value of the firm, Re is the cost of equity, D is the market value of debt, Rd is the cost of debt, and T is the tax rate.
First, we need to find the market value of equity and debt:
E = 4,200,000 shares * $20.12 = $84,504,000
D = 65,000 bonds * $1,158 = $75,270,000
V = E + D = $84,504,000 + $75,270,000 = $159,774,000
Next, we need to find the cost of equity using the Capital Asset Pricing Model (CAPM):
Re = Rf + Beta * (Rm - Rf) = 3.25% + 1.24 * (7.2% - 3.25%) = 8.19%
The cost of debt can be found using the formula for the yield to maturity of a bond:
Rd = (C + (F - P) / N) / ((F + P) / 2)
Where C is the coupon payment, F is the face value, P is the price, and N is the number of years to maturity.
Rd = ($1,000 * 0.0825 / 2 + ($1,000 - $1,158) / 36) / (($1,000 + $1,158) / 2) = 7.03%
Now we can plug in the values into the WACC formula:
WACC = (E/V) * Re + (D/V) * Rd * (1 - T)
WACC = ($84,504,000 / $159,774,000) * 8.19% + ($75,270,000 / $159,774,000) * 7.03% * (1 - 0.36)
WACC = 0.5291 * 8.19% + 0.4709 * 7.03% * 0.64
WACC = 4.33% + 2.15%
WACC = 6.48%
Therefore, the correct answer is none of the options provided. The firm's WACC is 6.48%.

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The annualized yield of the 90-day T-bill is 8.2788% and the T-bill discount is $20.

The annualized yield of a T-bill is the return on investment that you would earn if you held the T-bill for one year. It is calculated by dividing the difference between the maturity value and the purchase price by the purchase price, and then multiplying by the number of days in a year and dividing by the number of days the T-bill was held.

The T-bill discount is the difference between the maturity value and the purchase price.

To calculate the annualized yield of the T-bill, we can use the following formula:

Annualized yield = ((Maturity value - Purchase price) / Purchase price) * (365 / Number of days held)

Plugging in the values from the question:

Annualized yield = (($1,000 - $980) / $980) * (365 / 90) = 0.020408 * 4.05556 = 0.082788

So the annualized yield of the T-bill is 8.2788%.

To calculate the T-bill discount, we simply subtract the purchase price from the maturity value:

T-bill discount = $1,000 - $980 = $20

So the T-bill discount is $20.

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Employees that create more are encouraged to do so and are rewarded accordingly under the incentive plan. The phrase "Pay for Performance" describes remuneration choices such merit pay, commission, individual incentive, group incentive, and gain-sharing plans.

A company may decide to adopt an employee incentive program to encourage staff productivity. Employee incentives are a system that recognizes and rewards effort and success in the workplace by providing employees with the chance to receive prizes or recognition.

Businesses may boost productivity, lower attrition, and reduce production costs by implementing reward programs for their staff. It raises morale, motivates staff, and fosters collaboration by increasing employee involvement. The incentive programs benefited the labor as much as the businesses.

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Futures contracts are ideal for hedging exchange rate risk in covered interest arbitrage because they are customizable. The given statement is False.

Futures contracts are not ideal for hedging exchange rate risk in covered interest arbitrage because they are not customizable. Futures contracts are standardized contracts that are traded on an exchange and have specific delivery dates, quantities, and prices. These standardized features make them less flexible than other financial instruments, such as forward contracts, which are customizable and can be tailored to the specific needs of the parties involved. Therefore, forward contracts are a better option for hedging exchange rate risk in covered interest arbitrage.

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The basic rule for determining if a security should be held to maturity vs trading is to compare the yield to maturity (YTM) of the security with the current market yield.

If the YTM is higher than the current market yield, it may be advantageous to hold the security to maturity. However, if the current market yield is higher than the YTM, it may be more beneficial to trade the security.

To determine the YTM of security, you can use the following formula:

YTM = (C + (F - P) / N) / ((F + P) / 2)

Where:
C = annual coupon payment
F = face value of the security
P = current market price of the security
N = number of years to maturity

Once you have calculated the YTM, you can compare it with the current market yield to determine if it is more advantageous to hold the security to maturity or to trade it.

It is important to remember that there are other factors to consider when making this decision, such as the creditworthiness of the issuer and the liquidity of the security. It is always best to consult with a financial advisor before making any investment decisions.

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Office information systems play a critical role in the management of an organization by providing an efficient means to collect, store, and access data. Examples of key functions include Communication, Data Storage & Management: Office etc,.

Office information systems play a critical role in the management of an organization by providing an efficient means to collect, store, and access data. Examples of key functions include:

Data Storage & Management: Office information systems allow organizations to store and manage large amounts of data in an organized, secure manner. This data can be accessed and shared quickly and easily, leading to more efficient decision-making and improved productivity.

Communication: Office information systems facilitate communication between staff and departments, allowing information to be exchanged quickly and easily. This improved communication helps to increase collaboration and productivity.

Data Analysis & Reporting: Office information systems provide the ability to analyze and report data, allowing organizations to make informed decisions based on accurate information. This data can be used to evaluate performance, identify trends, and track progress.

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If the real interest rate is 4% and the nominal interest rate is 7.25%, then the exact expected inflation rate is 3.25%.

The expected inflation rate can be calculated by subtracting the real interest rate from the nominal interest rate. In this case, the expected inflation rate would be 7.25% - 4% = 3.25%. Therefore, the exact expected inflation rate is 3.25%.

Here is the formula for calculating the expected inflation rate:

Expected inflation rate = Nominal interest rate - Real interest rate

So, in this case:

Expected inflation rate = 7.25% - 4% = 3.25%

Therefore, the exact expected inflation rate is 3.25%.

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A. It includes legal obligation, demand performance, injury sustained etc.

B. Yes, a person can incur obligations even without entering into any contract or voluntary agreement.

In order for a person to acquire a right of action in court against another to enforce the performance of the latter's obligation, the following elements or requisites must be present: 1) the existence of a legal obligation; 2) the failure or refusal of the defendant to perform that obligation; 3) the corresponding right of the plaintiff to demand performance or satisfaction of the obligation; and 4) damage or injury sustained by the plaintiff as a result of the defendant's breach.

This is because certain obligations may arise from law or from quasi-contracts, such as an implied-in-fact contract or a quasi-contractual obligation. Quasi-contractual obligations may arise from situations where one person has unjustly benefitted from another person’s property or labor without the other’s consent. In such cases, a court may find that an obligation exists, and order that the person who benefited to pay a reasonable sum for the benefit received.

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