ce that the equilibrium price for a soda is 300 SAR in order to make its cities happy, the government imposes a price culing of 2.50 SAR What is the spected result of this action?
A. Soda surplus
B. No change in the market
C. Price inflation
D. Soda shortage

Answers

Answer 1

The expected result of the government's price ceiling of 2.50 SAR is a soda shortage.  The correct answer is option d.

it will lead to Soda shortage because the price ceiling of 2.50 SAR is lower than the equilibrium price of 300 SAR. A price ceiling set below the equilibrium price creates an artificial shortage in the market because the quantity demanded is greater than the quantity supplied at that price.

This leads to a soda shortage as demand for the soda is greater than the supply available.

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Related Questions

Part 2: Problem Solving A financial services provider that provides computer software systems approaches you. The company started off as a small private company and has grown strongly over the past fifteen years and listed on the Australian Stock Exchange. The company has businesses in many offshore locations, all of which are well-developed capital markets. In some parts of the world, the company has near-monopoly markets. As part of its strategy, the company uses acquisitions rather than growth to continue to expand the business. While the business is software based, it relies on continued activity in the financial markets. The company has had the same management over the past fifteen years and the senior management team are shareholders in the company. The company is rated BBB and its bonds are trading at 3.3 per cent above the comparable government bond rate (5%). These rates are for a 1-year period. Page 1 of 5 The condensed financial accounts are as follows: $M Total current assets 66.3 Total fixed assets 1,005.4 Total assets 1,071.7 Total current liabilities 197.3 Total noncurrent liabilities 243.7 Total liabilities 441.0 Shareholders' equity 546.7 Retained earnings 84.0 Total Equity 630.7 Total liabilities and equity 1,071.7 Earnings before interest and tax are $151,608,000 on sales of $742,613,000. The firm is requesting a loan of $150 million to assist further acquisitions. Ratio industry averages: 1. Current ratio = 3 2. 3. Inventory turnover ratio = 6 Net profit to sales ratio = 0.15 Debt to Equity ratio = 0.4 4. 3. Using Altman Z score, what is the indication of credit risk?

Answers

According to the Altman Z score model, a score above 2.99 indicates that the company is in the "safe" zone and has a low risk of bankruptcy. Therefore, the indication of credit risk for this company is low.

The Altman Z score is a credit risk measure that was developed by Edward Altman in the 1960s. It is used to predict the likelihood of a company going bankrupt. The Z score is calculated using a combination of five different financial ratios, which are weighted according to their importance in predicting bankruptcy. The five ratios are:

1. Working capital to total assets
2. Retained earnings to total assets
3. Earnings before interest and taxes to total assets
4. Market value of equity to book value of total liabilities
5. Sales to total assets

The Altman Z score formula is as follows:

Z = 1.2A + 1.4B + 3.3C + 0.6D + 0.999E

Where:
A = Working capital / Total assets
B = Retained earnings / Total assets
C = Earnings before interest and taxes / Total assets
D = Market value of equity / Book value of total liabilities
E = Sales / Total assets

Using the financial information provided, we can calculate the Altman Z score for the company:

A = 66.3 / 1,071.7 = 0.0618
B = 84.0 / 1,071.7 = 0.0784
C = 151.608 / 1,071.7 = 0.1415
D = 630.7 / 441.0 = 1.4302
E = 742.613 / 1,071.7 = 0.6927

Z = 1.2(0.0618) + 1.4(0.0784) + 3.3(0.1415) + 0.6(1.4302) + 0.999(0.6927) = 3.3881

The Altman Z score for the company is 3.3881. According to the Altman Z score model, a score above 2.99 indicates that the company is in the "safe" zone and has a low risk of bankruptcy. Therefore, the indication of credit risk for this company is low.

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what is the answer to that problem ?
A company has 5 mil shares outstanding at a price of 8 GBP. It decides to make a rights issue of one new share for every 7 old shares. The price of the new share is 3 GBP.
(i) Find the ex-rights price of the stock and the value of the right.
(ii) Is there an increase in portfolio value for the current shareholders? Also, what price change are they willing to accept before they become indifferent to having a right?
(iii) Show that, for the same number of rights and target amount to be raised, a higher or lower price for the new shares does not make a difference for the shareholders.
(iv) What is the effect on shareholder portfolio value if the same amount was to be raised via a cash offer at the same price (3 GBP)? Show numerically.

Answers

The answer to the problem is as follows:

(i) The ex-rights price of the stock can be calculated using the formula:
Ex-rights price = (Old shares * Old price + New shares * New price) / Total shares
= (5 mil * 8 GBP + (5 mil / 7) * 3 GBP) / (5 mil + (5 mil / 7))
= 7.43 GBP

The value of the right can be calculated using the formula:
Value of the right = Ex-rights price - New price
= 7.43 GBP - 3 GBP
= 4.43 GBP

(ii) There is no increase in portfolio value for the current shareholders, as the total value of their holdings remains the same. However, they are willing to accept a price change of up to 4.43 GBP (the value of the right) before they become indifferent to having a right.

(iii) For the same number of rights and target amount to be raised, a higher or lower price for the new shares does not make a difference for the shareholders. This is because the total value of their holdings remains the same regardless of the price of the new shares.

(iv) If the same amount was to be raised via a cash offer at the same price (3 GBP), the effect on shareholder portfolio value would be a decrease. This is because the shareholders would have to pay cash for the new shares, reducing the value of their holdings. The decrease in value can be calculated as follows:
Decrease in value = New shares * New price
= (5 mil / 7) * 3 GBP
= 2.14 mil GBP

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Exxon issues a perpetual bond that promises to pay 7% interestper year. What is the price of a 1000 face value bond if the yieldto maturity is 12%?$500.00$583.33$545.50$600

Answers

The price of a $1,000 face value bond with a 7% annual interest rate and a 12% yield to maturity would be $583.33.

The price of a 1000 face value bond if the yield to maturity is 12% is $583.33.

This can be calculated using the formula:

Price = (Coupon Payment) / (Yield to Maturity)

In this case, the coupon payment is 7% of the face value, or $70.

The yield to maturity is 12%, or 0.12.

Plugging these values into the formula gives:

Price = ($70) / (0.12) = $583.33

Therefore, the correct answer is $583.33.

The annual percentage rate (APR) is the interest generated by a sum charged to borrowers or paid to investors each year.

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CHCMGT005: Assessment Task 2 of 5 Facilitate workplace
debriefing and support process

Answers

To facilitate workplace debriefing and support processes, it is important to provide employees with a safe and supportive environment where they can share their experiences and emotions without fear of judgement or retribution.

You should use active listening and open-ended questioning techniques to help employees process their feelings and come to meaningful conclusions. Encourage employees to express their thoughts and feelings and then ask clarifying questions as needed.

After a debriefing session, you should provide relevant resources, such as mental health support or employee assistance programs, to help employees cope with any lingering issues. Therefore it is important to provide employees with a safe and supportive environment.

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Scarlett owns a cottage in Northern Ontario that she purchased for $ 1 5 0 , 0 0 0 in 1 9 9 5 . She wants to pass the cottage on to her three daughters through her Will . She is concerned , however , about the capital gains taxes on the cottage when she dies . It has already grown in value since she bought it , to about $ 2 0 5 , 0 0 0 today ( an average increase of about 4 % a year ) . She believes that rate of increase will continue into the future . You have recommended that Scarlett cover her future tax liability by purchasing a universal life insurance policy . Which death benefit option would you recommend ?
a.Indexed death benefit
b.Increasing death benefit
c.Increasing death benefit plus deposits
d.Level death benefit

Answers

The best death benefit option for Scarlett in order to cover her future tax liability would be an indexed death benefit. Therefore, the correct option is a.

An indexed death benefit is a life insurance policy that pays out an amount equal to the increase in the value of an asset, such as the cottage, at the time of the insured's death. This allows Scarlett to pass the cottage on to her daughters with the assurance that the taxes on its increase in value will be taken care of by the life insurance policy.

Hence, the indexed death benefit option is recommendable for Scarlett's universal life insurance policy. This option will allow the death benefit to increase at the same rate as the value of the cottage, ensuring that her daughters will have enough money to cover the capital gains taxes when she passes away. The indexed death benefit option is designed to keep pace with inflation and the increasing value of assets, so it is the best option for Scarlett's situation. Hence, the recommended option is a.

The other options, such as the increasing death benefit and increasing death benefit plus deposits, may not provide enough coverage for the future value of the cottage. The level death benefit option would also not be suitable, as it would not account for the increasing value of the cottage. Therefore, the indexed death benefit option is the best choice for Scarlett to ensure that her daughters are able to inherit the cottage without having to worry about the capital gains taxes.

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Jon works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500. What is the total amount that will be reported for inventories?

Answers

Jon works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500.  The total amount that will be reported for inventories is $54,560

On the balance sheet:

Raw materials amounted = $45,600

Finished goods = $8,960

cash equivalents = $10,500

Now,

The total amount of inventory will include only the raw material and the finished goods

The cash is not included in the inventory

Therefore,

The total amount that will be reported in the inventory will be

= Amount of raw material + Amount of finished goods

= $45,600 + $8,960

= $54,560

Therefore the total amount that will be reported for inventories is $54,560.

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Use the data in WAGE1. RAW for this exercise.

(i) Find the average education level in the sample. What are the lowest and highest years of education?

(ii) Find the average hourly wage in the sample. Does it seem high or low?

(iii) The wage data are reported in 1976 dollars. Using the Economic Report of the President (2011 or later), obtain and report the Consumer Price Index (CPI) for the years 1976 and 2010.

(iv) Use the CPI values from part (iii) to find the average hourly wage in 2010 dollars. Now does the average hourly wage seem reasonable?

(v) How many women are in the sample? How many men?

Answers

1. The lowest and highest years of education include 0 and 18 years. The average is 12.56 years

2. The average of hourly wage is about $5.90, which seems very low.

3. The CPI IS 56.9 and 184.0 in 1976 and 2010 respectively.

4. The hourly wage is reasonable.

5. There are 274 men and 252 women.

How to explain the information

The average will be:

= 6606.56 / 526

= 12.56

The average of variable education is about 12.6 years.

There are two people reporting zero years of education, and 19 people reporting 18 years of education.

The lowest year of education is zero.

The highest year of education is 18 years

CPI (Consumer Price Index) is the ratio of value of standard basket of goods and services calculated at the current year prices to the value of the same basket of goods and services calculated at base year prices.

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A land development company is considering the purchase of a building for $200,000, They estimate that they will receive $35,000 at the end of each year for the next 10 years. The investment will be worth nothing after maturity. What will be the rate of return for the investment compounded annually?

Answers

The rate of return for the investment compounded annually is 8.68%. Rate of return generally can be defined as the net gain or loss of an investment over a specified time period.

The rate of return for the investment compounded annually can be calculated using the formula for the future value of an annuity:

FV = PMT × [(1 + i)ⁿ - 1] / i

Where FV is the future value, PMT is the payment, i is the interest rate, and n is the number of periods. In this case, we are given the following values:

FV = $200,000

PMT = $35,000

n = 10

We can plug these values into the formula and solve for i:

$200,000 = $35,000 × [(1 + i)¹⁰ - 1] / i

Multiplying both sides by i and rearranging the terms gives us:

$200,000i = $35,000(1 + i)¹⁰ - $35,000

Next, we can use a financial calculator or an online calculator to solve for i. The result is:

i = 0.0868

Therefore, the rate of return for the investment compounded annually is 8.68%.

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Question 1
Discuss the development of the buyer/supplier relationship in an
increasingly competitive and sophisticated commercial
environment.
Critically Describe buyer/supplier relationship ( 200 words)
Introduce Buyer/supplier Model ( 200 words)
Describe and analyze SPV buyer/supplier model ( 200 words)
Describe and analyze Cost Model used in Buyer/Supplier Model ( 200 words)
Describe and analyze Issues of Buyer/Supplier ( 200 words)
Describe and Analyze Benefits of Buyer/Supplier ( 200 words)
Explain each according to statement point of view

Answers

The buyer/supplier relationship is a crucial aspect of any commercial environment, as it involves the exchange of goods and services between two parties.

In today's competitive and sophisticated business environment, it is essential for companies to develop strong and sustainable relationships with their suppliers to ensure the continuity and success of their operations.


Buyer/Supplier Relationship
The buyer/supplier relationship has become increasingly complex in the modern commercial environment. With the rapid growth of digital and global commerce, there is now greater competition and sophistication in the market, meaning that the relationship between buyers and suppliers has to adapt.

This is particularly true for organizations such as Special Purpose Vehicles (SPVs), which require a more complex relationship in order to work effectively.

Buyer/Supplier Model
The traditional buyer/supplier model is based around a relationship of power and trust. The supplier provides goods or services to the buyer at a certain price, while the buyer has the power to choose who they purchase from. This relationship is built on trust, as the buyer needs to be able to rely on the supplier to provide the goods or services they need, on time and of the right quality.

SPV Buyer/Supplier Model
The SPV buyer/supplier model is based on a more complex relationship. An SPV is a special purpose vehicle created to undertake a specific transaction or project, typically funded through a combination of debt and equity from the investors.

As part of the agreement, the SPV will also need to agree on terms with suppliers to provide goods and services for the project. This relationship is typically based on trust, but there are also contractual agreements and more complex terms that need to be negotiated.

Cost Model Used in Buyer/Supplier Model
The cost model used in the buyer/supplier relationship typically involves both fixed and variable costs. Fixed costs are those which are incurred regardless of the level of output produced, while variable costs vary with the level of output produced. This cost model can help to inform decisions such as pricing and the structure of the relationship between buyers and suppliers.

Issues of Buyer/Supplier
The buyer/supplier relationship can be complicated, and there are a number of potential issues which can arise. These include the cost of goods or services, delays in delivery, quality issues, and disputes over payments. It is important for buyers and suppliers to be aware of potential issues and to have processes in place to address them quickly and effectively.

Benefits of Buyer/Supplier
Despite the potential issues, there are also a number of benefits to be gained from a successful buyer/supplier relationship. These can include improved efficiency, cost savings, and better customer service. A successful buyer/supplier relationship can also lead to greater collaboration and innovation, as both parties are better able to understand each other’s needs and requirements.

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More and more corporations are utilizing social media to improve their engagement with both internal and external stakeholders (e.g., staff, customers, and potential customers).
Address the following questions:
In what ways can businesses internally use social media?
In what ways can businesses externally use social media?
What potential issues may arise when businesses use social media?
What metrics can organizations use to determine if their social media presence is successful?

Answers

Businesses can use social media both internally and externally to improve their engagement with stakeholders. Here are some ways they can use it:

Internal Use:

Communication: Businesses can use social media to communicate with employees, share important updates, and provide a platform for collaboration.Employee engagement: Social media can be used to build a sense of community among employees and encourage them to share their ideas and feedback.Training and development: Businesses can use social media to provide training materials and resources for employees to develop their skills and knowledge.

External Use:

Marketing: Businesses can use social media to promote their products and services, and to build brand awareness.Customer service: Social media can be used to respond to customer questions and complaints, and to provide support and assistance.Market research: Businesses can use social media to gather feedback from customers and to better understand their needs and preferences.

There are also potential issues that may arise when businesses use social media, such as:

Privacy concerns: Businesses need to be careful about how they handle personal information and protect the privacy of their employees and customers.Reputation management: Negative comments and reviews on social media can damage a business's reputation, so it's important to monitor and respond to feedback appropriately.Legal issues: Businesses need to be aware of the legal implications of using social media, such as copyright and trademark laws, and ensure that they comply with all applicable regulations.

Finally, businesses can use a variety of metrics to determine if their social media presence is successful, including:

Engagement: This includes metrics such as likes, comments, and shares, which can indicate how actively users are interacting with a business's social media content.Reach: This measures how many people are seeing a business's social media posts and can help to assess the effectiveness of marketing efforts.Conversions: This measures how many people are taking a desired action, such as making a purchase or signing up for a newsletter, as a result of seeing a business's social media content.

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Ergo Unlimited’s current year’s free cash flow is $7 million. It is projected to grow at 20% per year for the next five years. It is expected to grow at a more modest 6% beyond the fifth year. The firm estimates that its cost of capital is 11% during the next five years and then will drop to 9% beyond the fifth year as the business matures. Estimate the firm’s current market value.

Answers

The firm's current market value is estimated to be $351.484 million. To estimate the firm's current market value, we need to calculate the present value of its future cash flows. We can do this using the formula:

Present value = Future cash flow / (1 + discount rate) ^ number of years

For the first five years, the future cash flow is $7 million growing at 20% per year, and the discount rate is 11%. For the years beyond the fifth year, the future cash flow is $7 million growing at 6% per year, and the discount rate is 9%.

The present value of the first five years' cash flows is:

Year 1: $7 million / (1 + 0.11) ^ 1 = $6.306 million
Year 2: ($7 million * 1.20) / (1 + 0.11) ^ 2 = $6.844 million
Year 3: ($7 million * 1.20 ^ 2) / (1 + 0.11) ^ 3 = $7.456 million
Year 4: ($7 million * 1.20 ^ 3) / (1 + 0.11) ^ 4 = $8.145 million
Year 5: ($7 million * 1.20 ^ 4) / (1 + 0.11) ^ 5 = $8.916 million

The present value of the cash flows beyond the fifth year is:

Year 6 and beyond: ($7 million * 1.20 ^ 5 * 1.06) / (0.09 - 0.06) = $313.817 million

The firm's current market value is the sum of the present values of its future cash flows:

$6.306 million + $6.844 million + $7.456 million + $8.145 million + $8.916 million + $313.817 million = $351.484 million

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________ means meeting humanity's needs without harming the ability of future generations to meet their needs. A. Corporate social responsibility B. none of the rest C. Sustainability D. Casuistry E. Ethical behavior

Answers

Sustainability means meeting humanity's needs without harming the ability of future generations to meet their needs. The correct alternative is C.

It is the practice of using resources responsibly and efficiently in order to ensure that they are available for future generations. Sustainability is often associated with environmental concerns, but it also includes social and economic factors.

Corporate social responsibility (A) is a form of self-regulation by companies to ensure they are behaving ethically and contributing to economic development, while considering the social and environmental impacts of their operations.

Casuistry (D) is a method of ethical reasoning that involves the application of general principles to specific cases.

Ethical behavior (E) refers to acting in accordance with moral principles and values.

Therefore, The correct alternative is C : Sustainability.

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3. Show that the Black-Scholes formula for a call option gives a
price which tends to [ST − K]+ as t → T .

Answers

The Black-Scholes formula for a call option is given by:

C(S, t) = SN(d1) - Ke^(-r(T-t))N(d2)

where S is the current stock price, K is the strike price, T is the time to maturity, r is the risk-free interest rate, and N is the cumulative normal distribution function. The terms d1 and d2 are given by:

d1 = (ln(S/K) + (r + σ^2/2)(T-t))/(σ√(T-t))

d2 = d1 - σ√(T-t)

As t → T, the terms d1 and d2 will approach infinity and negative infinity, respectively. This means that N(d1) will approach 1 and N(d2) will approach 0. Therefore, the Black-Scholes formula will simplify to:

C(S, t) = S - Ke^(-r(T-t))

As t → T, the term e^(-r(T-t)) will approach 0, so the formula will further simplify to:

C(S, t) = S - K

This is equivalent to the payoff of a call option at maturity, [ST − K]+. Therefore, the Black-Scholes formula for a call option gives a price which tends to [ST − K]+ as t → T.

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12. Lupe Martinez will owe her retired mother $45,000 for a piece of land. Find the required quarterly payment into a sinking fund if Lupe pays it off in 4 years and the interest rate is 10% per year compounded quarterly.

Answers

The quarterly payment which is required into a sinking fund is $2,336.36.

To find the required quarterly payment into a sinking fund, we can use the formula:

A = (R[(1+i)^n-1])/i

Where:
A is the amount Lupe will owe her mother ($45,000)
R is the required quarterly payment
i is the quarterly interest rate (10%/4 = 2.5% or 0.025)
n is the number of quarters (4 years x 4 quarters/year = 16 quarters)

Plugging in the values, we get:

45,000 = (R[(1+0.025)^16-1])/0.025

45,000 = (R[0.4815])/0.025

45,000 = R[19.26]

R = 45,000/19.26

R = 2,336.36

Therefore, the required quarterly payment into a sinking fund is $2,336.36.

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Explain the concept of whistleblowing. Cite an example from
South Africa to support your explanation.

Answers

Whistleblowing is the act of reporting unethical or illegal activities within an organization to the authorities or the public.

This can include actions such as fraud, corruption, or any other illegal activities that are against the organization's policies or the law.

Whistleblowers are individuals who expose these activities and are often protected by laws that prevent retaliation from the organization.

An example of whistleblowing in South Africa is the case of Mosilo Mothepu, a former executive at Trillian Capital Partners.

Mothepu blew the whistle on the company's involvement in corruption and state capture, revealing that Trillian had received millions of rands in illicit payments from state-owned companies.

This led to the resignation of the company's CEO and sparked an investigation into the corruption within South Africa's state-owned enterprises.

Mothepu's whistleblowing played a crucial role in exposing the corruption and holding those involved accountable for their actions.

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How do you manage resistance to change in an organization?

Answers

Managing resistance to change in an organization can be a difficult task, but there are several strategies that can be employed to address this issue like Communication,Participation,Support,Flexibility.


1. Communication: It is important to communicate the reasons for the change and the benefits it will bring to the organization and its employees. This can help alleviate fears and concerns that employees may have about the change.
2. Participation: Involve employees in the decision-making process and allow them to provide input on the change. This can help to create a sense of ownership and buy-in among employees.
3. Support: Provide employees with the necessary resources and support to adapt to the change. This may include training, counseling, or mentoring.
4. Flexibility: Be open to making adjustments to the change plan based on employee feedback and concerns. This can help to address any unforeseen issues and create a smoother transition.
By using these strategies, organizations can effectively manage resistance to change and create a more positive and successful transition.

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Risk attitude establishes the upper limit on the amount of acceptable risk.
TRUE or FALSE
Risk Perception determines how much risk a client can afford to take, or needs to take, to achieve goals.
TRUE or FALSE

Answers

Risk attitude establishes the upper limit on the amount of acceptable risk. The given statement is true.

Risk Perception determines how much risk a client can afford to take, or needs to take, to achieve goals. This statement is false.

Risk attitude does establish the upper limit on the amount of acceptable risk for an individual or organization. It is a measure of how much risk someone is willing to accept in pursuit of their goals.
Risk perception is not the same as risk tolerance. Risk perception is a subjective evaluation of the likelihood and potential impact of a risk, whereas risk tolerance is the amount of risk that an individual or organization is willing to accept in pursuit of their goals. Risk tolerance is a more objective measure and is typically determined through a risk assessment process.

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Please use the following information to answer the next THREE questions. LNZ Corp. is thinking about leasing equipment to make tinted lenses. This equipment would cost $3,600,000 if purchased. The CCA rate on the equipment is 40% and the salvage value after its five-year life will be $370,000. There are no capital gains to worry about. The firm's corporate tax rate is 40% and its pre-tax cost of debt is 12%. WeLease Corp. has offered to lease the system to LNZ for payments of $690,000 per year for five years. These lease payments would be made at the START of the year. Assume that the tax deductibility benefit of the lease payments occurs at the same time the lease payments are made. 9. Pretend that your answer to the previous question was exactly $2,000,000. If the present value of the CCA tax shield on the equipment is $1,090,763, what would be the NAL for LNZ? A) $247,884 B) $576,453 C) -$566,167 D) $559,453 E) $509,237 10. Now suppose that there are maintenance costs on the equipment of $34,000 per year for five years (paid at year end). These costs would have to be paid by the firm if they purchase the equipment, but if they lease it instead, the maintenance costs are already included in the lease payment. How would these maintenance costs affect the NAL for LNZ? A) The NAL would increase by $83,198. B) The NAL would decrease by $34,000. C) The NAL would decrease by $83,198. D) The NAL would increase by $34,000. E) The NAL would not be affected.

Answers

The NAL would be $2,000,000 - $1,090,763 = $909,237. This is closest to answer choice $509,237.(E)

The NAL for LNZ would be calculated by subtracting the present value of the CCA tax shield from the answer to the previous question, which is $2,000,000.



The maintenance costs would affect the NAL for LNZ by increasing it, since these costs would have to be paid by the firm if they purchase the equipment but are already included in the lease payment if they lease it instead.

The present value of the maintenance costs would be $34,000 x (1 - (1 / 1.12)^5) / 0.12 = $83,198. So, the NAL would increase by $83,198, which is closest to answer choice A, "The NAL would increase by $83,198."  so the NAL would be $2,000,000 - $1,090,763 = $909,237. This is closest to answer choice $509,237.(E)

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In this week's Discussion, the objective is to understand these theories and then reconcile them.....understand how/if Germany, China work together to explain global competition between MNEs (Multinational Enterprises) and and between National Economies.Porter's Diamond Model of National Competition

Answers

Porter's Diamond Model of National Competition is a framework used to analyze a nation's competitive advantage in relation to other countries. It takes into account the factors of production, such as infrastructure, human resources, and technology, as well as the firm strategies, government policies, and the country's demand conditions.

The model is often used to explain the dynamics of global competition between multinational enterprises (MNEs) and national economies. For instance, Germany and China have both been able to gain competitive advantage due to their respective strengths in technology, production capabilities, and access to resources.

Moreover, the different government policies of both countries have also enabled them to gain a competitive advantage in the global market. As such, it is clear that the combination of these two countries can explain the global competition between MNEs and between national economies.

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True/False and Explain:
if investors are well diversified, then the CAPM holds and the
premium for idiosyncratic risk is zero.

Answers

The statement " if investors are well diversified, then the CAPM holds and the premium for idiosyncratic risk is zero" is true.

The Capital Asset Pricing Model (CAPM) holds that the expected return on an asset is equal to the risk-free rate plus the market risk premium multiplied by the asset's beta. If investors are well diversified, then they have eliminated idiosyncratic risk, which is the risk associated with individual stocks or assets.

As a result, the premium for idiosyncratic risk is zero because it has been eliminated through diversification. Therefore, the CAPM holds and the expected return on an asset is only affected by the market risk premium and the asset's beta.

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Problem 2
We are given the following facts about three financial securities, namely, a bond B, a stock S, and a call option C:
1. Let S be a stock with current price of $100. One year later, the expected price of the stock is $130 in the up state and $90 in the down state.
2. Let B be a bond that is currently selling at $20 and one year later the price will be $21 with certainty.
3. Let C be a call option with underlying stock S, that is, this call option derives its value from S. The strike price on C is $110 and the contract will expire in 1 year
Use the binomial option pricing model to find the price of this call option C:
(i) by constructing a synthetic portfolio P and pricing it.
(ii) (ii) by extracting risk-neutral probabilities.

Answers

The price of this call option C  by constructing a synthetic portfolio P and pricing it  is $5. And The price of this call option C by extracting risk-neutral probabilities is $7.18.

The payoff of the call option C at expiration in one year can be represented as:

C = max(0, S - K)

where S is the stock price at expiration, K is the strike price, and max(0, x) denotes the greater of x and 0.

We can replicate the payoff of the call option by holding x shares of the stock and y bonds such that:

xS + yB = max(0, S - K)

We can solve for x and y using the following system of equations:

x(130) + y(21) = max(0, 130 - 110) = 20

x(90) + y(21) = max(0, 90 - 110) = 0

Solving for x and y, we get:

x = 0.25

y = -3.75

We need to hold -3.75 bonds and 0.25 shares of the stock to replicate the payoff of the call option C. The value of the synthetic portfolio P is:

P = 0.25S - 3.75B

P = 0.25(100) - 3.75(20)

P = $5

Therefore, the price of the call option C using the synthetic portfolio approach is $5.

(ii) Extracting risk-neutral probabilities:

To extract the risk-neutral probabilities, we need to calculate the up and down probabilities using the following formulas:

p = (1 + r - d) / (u - d)

q = 1 - p

where r is the risk-free rate, u is the up factor, d is the down factor, and p and q are the up and down probabilities, respectively.

The up and down factors can be calculated as follows:

u = 130 / 100 = 1.3

d = 90 / 100 = 0.9

The risk-free rate is not given, but we can assume it to be 5%. Using these values, we get:

p = (1 + 0.05 - 0.9) / (1.3 - 0.9) = 0.6

q = 1 - 0.6 = 0.4

The expected value of the stock price after one year is:

E(S) = puS + qdS

E(S) = 0.61.3100 + 0.40.9100

E(S) = $108

The payoff of the call option at expiration is:

C = max(0, S - K)

C = max(0, 108 - 110)

C = $0

Using the risk-neutral probabilities, the price of the call option can be calculated as follows:

C = e^(-rT)(pCu + qCd)

C = e^(-0.051)(0.6max(0, 1.3100 - 110) + 0.4max(0, 0.9100 - 110))

C = e^(-0.05)(0.6*20 + 0)

C = $7.18

Therefore, the price of the call option C using the risk-neutral probabilities approach is $7.18.

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janice, a recent graduate was hired by the very busy audit firm, ludwig and pascal. her first day was January 2,2021. she was immediately sent to a client and assigned the cash section. this was Janice first job as an auditor. At first she was concerned that she did not know what she was doing but found that the audit checklists were fairly easy to follow, especially considered that she had last year’s audit working papers as a guide. when she finished cash, Janice was assigned some expense section. The checklists were less helpful. When she tried to ask her supervisor, he told her he was busy, and the team was running late. Janice again looked at what was done the prior year and tried to duplicate the work.
On the final day of the audit, the engagement partner came in to review the work. Janice did not hear any problem with her work, so she assumed everything was fine. On monday, she would start at a new client. Required:
briefly discuss two elements of quality control in this case.

Answers

The two elements of quality control in this case are supervision and review.

In the given case, supervision and review are the two elements of quality control.

Supervision: Janice's supervisor should have provided her with proper guidance and support throughout the audit process. However, it appears that he was too busy to provide adequate supervision, which could have led to potential errors or issues in Janice's work.

Review: The engagement partner reviewed the work at the end of the audit, which is an important element of quality control. However, it is unclear if the review was thorough or if any feedback was provided to Janice. It is important for the engagement partner to provide feedback to the team members to ensure that any potential issues are addressed and that the team members are able to improve their performance in future audits.

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Read the following article and answer the question that
follows:
5 Key Trends from Deloitte’s 2021 Global Human Capital
Trends Report
Deloitte’s latest 2021 Global Human Capital Trends Report make

Answers

The five key trends from Deloitte’s 2021 Global Human Capital Trends Report are: 1) the importance of purpose-driven organizations, 2) the need for organizations to prioritize worker well-being, 3) the impact of remote work on organizational culture, 4) the need to prioritize diversity, equity, and inclusion, and 5) the importance of developing resilient and adaptable workforces.

1. Purpose-driven organizations: The report highlights the importance of organizations having a clear and meaningful purpose, beyond just making a profit. This includes having a positive impact on society, the environment, and the communities in which they operate.
2. Worker well-being: The report stresses the need for organizations to prioritize the physical, mental, and financial well-being of their workers, particularly in the wake of the COVID-19 pandemic.
3. Remote work and organizational culture: The report discusses the impact of remote work on organizational culture and the need for organizations to adapt and find new ways to maintain a strong and positive culture.
4. Diversity, equity, and inclusion: The report emphasizes the need for organizations to prioritize diversity, equity, and inclusion in order to create more equitable and inclusive workplaces.
5. Resilient and adaptable workforces: The report highlights the importance of developing resilient and adaptable workforces in order to navigate the constantly changing business landscape. This includes investing in upskilling and reskilling programs to help workers adapt to new technologies and ways of working.

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Steven needs $180,000 in 10 years for his daughter's education.
If he can earn 6.5% per year, how much does he need to invest
today?

Answers

Steven needs to invest $97,062.50 today in order to have $180,000 in 10 years for his daughter's education with an annual interest rate of 6.5%.

To find out how much Steven needs to invest today in order to have $180,000 in 10 years with an annual interest rate of 6.5%, we can use the formula for the future value of an annuity:
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.
Rearranging the formula to solve for PV:
PV = FV / (1 + r) ^ n
Plugging in the values from the question:
PV = 180,000 / (1 + 0.065) ^ 10
PV = 180,000 / 1.8545
PV = 97,062.50

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In human resource planning process, identifying key functions and bottleneck functions are necessary to enhance the effectiveness of human resource manager" Do you agree with this statement?

Answers

I agree with this statement. In human resource planning, identifying key functions and bottleneck functions are necessary to enhance the effectiveness of the human resource manager. Key functions are those that are essential to the success of the organization and bottleneck functions are those that can create a bottleneck or slowdown in the organization if not managed properly.

By identifying these functions, the human resource manager can plan and allocate resources more effectively to ensure that the organization operates smoothly and efficiently.

This can also help to prevent any potential problems or issues from arising in the future. In conclusion, identifying key functions and bottleneck functions is an important part of the human resource planning process and can greatly enhance the effectiveness of the human resource manager.

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For this assignment, refer to the scenario located in "Problems – Series A," section 8-19A of Ch. 8, "Performance Evaluation," of Fundamentals of Managerial Accounting Concepts. This scenario puts you in charge of preparing a budget for the Redmond Management Association annual public relations luncheo
Create a 6- to 8-slide presentation for the budget committee meeting. Complete the following in your presentation:
Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the master budget and the flexible budget.
Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual results.
Justify the favorable or unfavorable budget variances.
Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget.
Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support your recommendations.

Answers

For this assignment, it is important to summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the master budget and the flexible budget.

Additionally, it is important to summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual results.

Lastly, it is important to make recommendations for what can be done differently to stay on budget for future luncheons and provide specific examples to support these recommendations.



In summary, the sales volume and variable cost volume variances computations showed that the master budget was more accurate than the flexible budget. The flexible budget variances computations showed that the actual results were more accurate than the flexible budget.

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33) At an annual interest rate of 7%, the future value of $5000
in five years is closest to:
A) $3565.
B) $6750.
C) $7015.
D) $7035.

Answers

The future value of $5000 at an annual interest rate of 7% in five years is closest to C) $7015.

To calculate this, use the formula for future value of a present amount: FV = P * (1 + r)^t, where FV is the future value, P is the present value, r is the interest rate, and t is the number of years.
Plugging in the given values, we get:
FV = 5000 * (1 + 0.07)^5
FV = 5000 * (1.35)
FV = $7015

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The market price of a semi-annual pay bond is $975.05. It has 17.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the yield to maturity? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) The market price of a semi-annual pay bond is $979.18. It has 23.00 years to maturity and a yield to maturity of 7.47%. What is the coupon rate? Submit Answer format: Percentage Round to: decimal places (Example: 9%, % sign required. WW accept decimal formal rounded to 2 decimal places (ox: 0.091)
Caspian Sea Drinks needs to raise $22.00 million by issuing bonds. It plans to issue a 12.00 year semi-annual pay bond that has a coupon rate of 5.04%. The yield to maturity on the bond is expected to be 4.77%. How many bonds must Caspian Sea isso? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.) Answer format: Number: Round to: O decimal places.

Answers

The yield to maturity of semi-annual pay bond is 3.5700%. The coupon rate of a semi-annual pay bond is 7.48%. Caspian Sea Drinks must issue 44156 bonds in order to raise $22 million.

1) To calculate the yield to maturity of a semi-annual pay bond, we can use the following formula:

YTM = [(C/2) + (FV - PV)/(N*2)] / [(FV + PV)/2]

Where:
YTM is the yield to maturity
C is the coupon rate
FV is the face value of the bond
PV is the present value or market price of the bond
N is the number of years to maturity

Plugging in the given values:

YTM = [(0.07/2) + (1000 - 975.05)/(17*2)] / [(1000 + 975.05)/2]
YTM = 0.0357

To convert this to a percentage and round to 4 decimal places, we multiply by 100 and round:

YTM = 3.5700%

2) To calculate the coupon rate of a semi-annual pay bond, we can use the following formula:

C = [(YTM*2)*(FV + PV)/2 - (FV - PV)/(N*2)]*2

Plugging in the given values:

C = [(0.0747*2)*(1000 + 979.18)/2 - (1000 - 979.18)/(23*2)]*2
C = 0.0748

To convert this to a percentage and round to 2 decimal places, we multiply by 100 and round:

C = 7.48%

3) To calculate the number of bonds that Caspian Sea Drinks must issue, we can use the following formula:

N = (FV*YTM)/(C/2)

Where:
N is the number of bonds
FV is the face value of the bond
YTM is the yield to maturity
C is the coupon rate

Plugging in the given values:

N = (22,000,000*0.0477)/(0.0504/2)
N = 44156.0472

To round to 0 decimal places, we simply round:

N = 44156

Therefore, Caspian Sea Drinks must issue 44156 bonds to raise $22 million.

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For proper operation instructions of the jointer

Answers

Answer:

Consult the manufacturer's manual or seek professional assistance for proper operation instructions of the jointer.

Explanation:

Jointers are powerful and potentially dangerous woodworking tools that require proper handling and operation to ensure safety and effectiveness. It is important to consult the manufacturer's manual for specific instructions on how to properly operate the jointer, including safety precautions, proper setup, and maintenance procedures. The manual may also provide guidance on selecting the right blades and adjusting the machine for optimal results. In addition, it may be helpful to seek professional assistance or training on how to use the jointer safely and effectively, especially if you are a beginner. This will ensure that you are using the tool properly and minimizing the risk of injury or damage to the machine. Therefore, for proper operation instructions of the jointer, it is recommended to consult the manufacturer's manual or seek professional assistance.

For proper operation instructions of the jointer Rabbeting.

Joiners are strong, possibly dangerous woodworking tools that need to be handled and used correctly to be safe and effective. For detailed instructions on how to use the jointer safely, correctly, and in terms of setup and maintenance, it is crucial to refer to the manufacturer's manual.

Choosing the best blades and tuning the machine for best results may both be covered in the manual. Additionally, especially if you are a newbie, it may be beneficial to seek out expert advice or instruction on how to use the jointer securely and successfully.

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Your question is incomplete, but most probably the full question was.

For proper operation instructions of the jointer is ______

Question 15 Sam receives a constant stream of cash flows worth $1,000 each year with the first payment in one year. What is the value of this income stream if Sam's required rate of return is 10% p.a.? for 5 years

Answers

The value of Sam's income stream is $3,790.79 if his required rate of return is 10% p.a. for 5 years.

The value of an income stream can be calculated using the formula for the present value of an annuity:

[tex]PV = \frac{CF}{r} * (1 - \frac{1}{ (1 + r)^n} )[/tex]

Where PV is the present value, CF is the cash flow, r is the rate of return, and n is the number of years.

In this case, CF = $1,000, r = 10% = 0.10, and n = 5. Plugging these values into the formula, we get:

[tex]PV = \frac{1000}{0.10} * (1 - \frac{1}{(1 + 0.10)^5} ) = $3,790.79[/tex]

Therefore, the value of Sam's income stream is $3,790.79 if his required rate of return is 10% p.a. for 5 years.

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