The cost of Average inventory is 1062.58
What is Inventory?The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of the discipline of inventory management is determining the location and shape of stocked products.
How to solve:
EOQ= Under root(2*A*O)/C
EOQ= Under root(2*12885*25)/7.01
EOQ= Under root(644250)/7.01
EOQ= Under root(91,904.42)
EOQ= 303.16
Average Inventory in units =303.16/2 = 151.58
Cost of Average inventory = 151.58*7.01 =1062.58
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You are thinking about an investment opportunity. To implement the opportunity, you need to invest $5 million (C0). The investment will produce Q = 30,000 units of products every year. The price of the product P is $40 per unit and the unit cost is $25. Your discount rate is 6 per cent per year. Calculate the NPV if you invest today.
The NPV of the investment opportunity is $750,000. To calculate the Net Present Value (NPV) of the investment opportunity, use the formula:
NPV = Σ t=0 ∞ (Q * (P - C) / (1 + r)t - C0)
where
Q = 30,000 units of product per year
P = $40 per unit
C = $25 unit cost
r = 6% discount rate
C0 = $5 million investment
t = 0 (for present value)
Plugging in the values into the formula, we get:
NPV = 30,000 * ($40 - $25) / (1 + 0.06)0 - 5,000,000
NPV = $750,000
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How do you feel about extension and continuous training to
prevent cyber attacks?
Do you think this will make a noticeable difference?
What other prevention measures can be taken?
Extension and continuous training can play a significant role in preventing cyber attacks. By keeping employees up-to-date on the latest threats organizations can reduce the likelihood of successful attacks.
strong password policies, using firewalls and antivirus software other prevention measures can be taken.
This type of training can also help employees identify and respond to suspicious activity, preventing potential breaches before they occur.
In addition to extension and continuous training, there are several other measures that can be taken to prevent cyber attacks.
These include implementing strong password policies, using firewalls and antivirus software, and regularly updating software and systems to address vulnerabilities. It is also important to have a comprehensive incident response plan in place in the event of a cyber attack.
Overall, while extension and continuous training alone may not be enough to prevent all cyber attacks, it can make a noticeable difference when combined with other prevention measures.
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Your friend’s family recently purchased a new wide screen 3D smart television. They mounted it on the wall of the main living room and all of the male members of the household began referring to it as the "sports TV". As a result, if your friend wanted to watch her favourite drama, she’d have to use her computer if a game was on because it was obvious to all that screening sport was what the TV was made for. Which of the following concepts is best illustrated by this scenario?Select one:a.Moral Economy of the Homeb.Media Ecologyc.Social Shaping of Technologyd.Technological Determinism
The concept that is best illustrated by this scenario is the Social Shaping of Technology. This concept suggests that society and culture shape the development and use of technology.
In this case, the male members of the household have determined that the new TV will be primarily used for watching sports, even though it is capable of displaying other types of media. This decision has been shaped by the social and cultural norms of the household, which prioritize sports viewing over other types of media consumption. As a result, your friend is forced to use her computer to watch her favorite drama, even though the new TV is technically capable of displaying it. This is a clear example of the Social Shaping of Technology in action.
Thus, c. Social Shaping of Technology.
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1 Ms. Uusiku posts a letter to TBA (Pty) Ltd with an offer to buy 1000 shares in the company. The directors agreed, and a letter informing her that the company would allocate the shares was posted in return. After they posted their letter of acceptance, but before she received their letter, she informs the company telephonically that she revokes the offer. Discuss the legal position of the parties. (5 marks)
The legal position of the parties in this scenario is determined by the legal principles of offer and acceptance in contract law.
1 Ms. Uusiku made an offer to TBA (Pty) Ltd to buy 1000 shares in the company. This offer was accepted by the directors of TBA (Pty) Ltd, and they posted a letter of acceptance to Ms. Uusiku.
According to the legal principle of offer and acceptance, a contract is formed when an offer is accepted. In this case, the contract was formed when the directors of TBA (Pty) Ltd posted their letter of acceptance.
However, before Ms. Uusiku received the letter of acceptance, she informed the company that she was revoking the offer. According to the legal principle of revocation, an offer can be revoked at any time before it is accepted.
In this scenario, the offer was already accepted by the directors of TBA (Pty) Ltd before Ms. Uusiku attempted to revoke it. Therefore, the revocation is not valid, and the contract is still binding on both parties.
In conclusion, the legal position of the parties is that a valid and binding contract has been formed, and Ms. Uusiku cannot revoke the offer after it has been accepted by TBA (Pty) Ltd.
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Golf Course Sensors (GCS) is now up and running and has created financial models and budgets for next year. GCS is forecast to sell 1,000 robots next year each at a price of $15K each. The company expects to incur variable costs at 43% of revenues. And the company has forecast fixed costs including depreciation at $4.2M next year. The company pays taxes at 20% and has no debt.
a) Based on these assumptions, what is the forecast pre-tax operating income?
b) Based on these assumptions, what is the company’s degree of operating leverage?
a) The forecast pre-tax operating income is $4.35M.
b) The company’s degree of operating leverage is 1.97.
a) The forecast pre-tax operating income can be calculated by subtracting the variable costs and fixed costs from the total revenue.
Total revenue = 1,000 robots * $15K each = $15M
Variable costs = 43% of revenues = 0.43 * $15M = $6.45M
Fixed costs = $4.2M
Pre-tax operating income = Total revenue - Variable costs - Fixed costs
= $15M - $6.45M - $4.2M
= $4.35M
Therefore, the forecast pre-tax operating income is $4.35M.
b) The company's degree of operating leverage can be calculated by dividing the contribution margin by the pre-tax operating income.
Contribution margin = Total revenue - Variable costs = $15M - $6.45M = $8.55M
Pre-tax operating income = $4.35M
Degree of operating leverage = Contribution margin / Pre-tax operating income
= $8.55M / $4.35M
= 1.97
Therefore, the company's degree of operating leverage is 1.97.
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Using an online mortgage calculator, generate the appropriate monthly amortization tables. Determine the payment, excluding taxes, PMI and property insurance, On a $175,000 loan based on the following terms: (20 points, 5pts each) a. Interest Rate: 2.25 % Term: 15 years b. Interest Rate: 2.875 % Term: 30 years C. Provide an amortization table showing all monthly payments for the 15 year loan. d. Provide an amortization table showing all monthly payments for the 30 year loan.
Amortization Table for 15 Year Loan:
...
Payment Number Beginning Balance Payment Principal Payment Interest Payment Ending Balance
1 $175,000.00 $1,319.74 $729.48 $590.26 $174,270.52
2 $174,270.52 $1,319.74 $734.54 $585.20 $173,535.98
180 $3,605.68 $1,319.74 $1,286.32 $33.42 $0.00
Amortization Table for 30 Year Loan:
...
Payment Number Beginning Balance Payment Principal Payment Interest Payment Ending Balance
1 $175,000.00 $898.09 $543.48 $354.61 $174,456.52
2 $174,456.52 $898.09 $549.04 $349.05 $173,907.48
360 $3,802.41 $898.09 $897.19 $0.90 $0.00
Using an online mortgage calculator, you can generate the appropriate monthly amortization tables for a $175,000 loan based on the following terms:
Interest Rate: 2.25%, Term: 15 years
Interest Rate: 2.875%, Term: 30 years
To calculate the monthly payment, excluding taxes, PMI and property insurance, you can use the following formula:
Monthly Payment = [P x R x (1+R)^N]/[(1+R)^N-1]
Where:
P = Principal Amount (e.g. $175,000)
R = Interest Rate per month (e.g. 2.25%/12)
N = Number of Payments (e.g. 15 years x 12 months)
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A company has just converted a long-term note receivable into a short-term note receivable. The company's acid-test and current ratios are both greater than 1. This transaction will: A) increase the current ratio and decrease the acid-test ratio. B) increase the current ratio and increase the acid-test ratio. C) decrease the current ratio and increase the acid-test ratio. D) decrease the current ratio and decrease the acid-test ratio.
A company has just converted a long-term note receivable into a short-term note receivable and the company's acid-test and current ratios are both greater than 1, hence the transaction will increase the current ratio and decrease the acid-test ratio. Therefore, the correct answer is option A.
The current ratio is a measure of a company's ability to pay its short-term liabilities with its current assets. It is calculated by dividing current assets by current liabilities. The acid-test ratio, also known as the quick ratio, is a measure of a company's ability to pay its short-term liabilities with its most liquid assets. It is calculated by dividing current assets (excluding inventory) by current liabilities.
When a company converts a long-term note receivable into a short-term note receivable, it is increasing its current assets and decreasing its long-term assets. This will increase the current ratio, as there are now more current assets to cover current liabilities. However, it will decrease the acid-test ratio, as the note receivable is not considered a liquid asset and is not included in the calculation of the acid-test ratio.
Therefore, the correct answer is option A) increase the current ratio and decrease the acid-test ratio.
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You are performing an external audit on the financial statements of ABC Limited. The following is the income statement of ABC Limited: ABC Limited Income Statement For the Period Ending December 31, 2018 Revenue $ 6,200,000 Cost of Sales 3.000.000 Gross Margin 3.200.000 Expenses Wages 1,000,000 Administrative 300,000 Advertising 117.000 Office Supplies 48,000 Insurance 105.000 Total Expenses 1.570.000 Profit before Tax $ 1.630.000 If materiality is set at 9% of profit before tax, which balances in the above income statement would be considered material? a. Revenue, Cost of Sales, Wages, Administrative b. Revenue, Advertising, Wages, Administrative c. Insurance, Cost of Sales, Wages, Administrative d. Revenue, Cost of Sales, Wages, Office Supplies
balances in the income statement considered material would be Revenue, Cost of Sales, Wages, Administrative. So option A is correct.
How and why is an income statement used?A company's revenue and expenses are listed on an income statement, which is a financial statement. It also shows the profit or loss a company has experienced over a certain period of time. You can better understand your company's financial status with the help of the income statement, balance sheet, and cash flow statement.
The expense, income, gains, and losses from the income statement can be plugged into an equation to calculate a company's net profit or loss for a specific time period. By providing you with this knowledge, you can make the quick decisions required to keep your business's finances stable.
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Two Company Comparison
CONSOLIDATED BALANCE SHEETS
Fiscal Year-End -20xx
Fiscal Year - 20xx
Company A Company B
ASSETS Current assets: Cash $162055 $87148
Accounts Receivable $69541 $157472
Inventory $98118 $128024
Prepaid insurance $124346 $57301
Prepaid rent $158319 $132855
Other $72587 $170352
Total Current Assets Non-Current Assets Land $109144 $181575
Equipment $152782 $115712
Notes receivable $188302 $77961
Total Assets Liabilities Current Liabilities Accounts payable $185309 $56139
Accrued payroll and benefits $183788 $72118
Other $72587 $170352
Total Current Liabilities Non-Current Liabilities Long Term debt $84770 $156446
Other Long Term debt $145647 $174676
Total Non-Current Liabilities Shareholders Equity Common Shares Total Shareholders Equity Liabilities & Sharehoders`Equity Find the Debt Ratio for Company B.
The debt ratio is calculated by dividing its total liabilities by its total assets. So the debt ratio for Company B is 0.568.
The debt ratio for Company B can be calculated by dividing its total liabilities by its total assets.
Total liabilities for Company B = $56,139 (accounts payable) + $72,118 (accrued payroll and benefits) + $170,352 (other current liabilities) + $156,446 (long term debt) + $174,676 (other long term debt) = $629,731
Total assets for Company B = $87,148 (cash) + $157,472 (accounts receivable) + $128,024 (inventory) + $57,301 (prepaid insurance) + $132,855 (prepaid rent) + $170,352 (other current assets) + $181,575 (land) + $115,712 (equipment) + $77,961 (notes receivable) = $1,108,400
Debt ratio for Company B = $629,731 / $1,108,400 = 0.568
Therefore, the debt ratio for Company B is 0.568.
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Suppose that you have an equity of 100,000 NOK (Norwegian kroner). In the end of May 2019 you want to invest this amount into two securities, each of them can be acquired for 100 NOK per unit at this point of time. Assume that each of these securities is perfectly divisible or multipliable. Once invested, you have to keep these securities until they expire in the end of May 2024. The streams of cash flows generated per 100 NOK invested into the securities are given as follows:
End of may 2020 2021 2022 2023 2025
Security 1 40 40 40 40 40
Security 2 0 30 50 70 90
For additional financing your bank will provide you with at most 100,000 NOK of a constant payment loan (CPL, annuity loan) with an interest rate (????????) of 8 % and a maturity (TT) of 5 years. In addition, you can draw at most 50,000 NOK on a credit line with an interest rate of 10 %. Idle cash can be deposited on a banking account which does not pay any interest.
Your tasks are the following:
(a) Suppose that you want to maximize your wealth in the end of May 2024: Find the optimal amount of money to be invested into the two securities. determine the optimal financing of this investment.
(b) This part is difficult, not relevant that relevant and voluntary! Now assume that the payments from the securities are not given with certainty. For simplicity assume that all cash flows are uniformly distributed with an interval (spread) of 20.
a. Generate 20 possible future scenarios for each security.
b. Maximize your expected wealth in the end of May 2024 considering that the uncertainty in the returns affects both credit line and bank account. Think about an appropriate structure of your Excel-sheet that makes this task easier.
c. Determine expected return and the return’s standard deviation.
d. Generate a risk-return diagram for different equity ratios.
Please help me to implement and solve this in excel.
In order to solve this problem, you will need to use the concepts of net present value (NPV) and internal rate of return (IRR) in order to determine the optimal amount of money to be invested into the two securities and the optimal financing of this investment.
First, you will need to create a table in Excel with the cash flows for each security for each year. Next, you will need to calculate the NPV for each security using the formula:
[tex]NPV = CF0 + CF1/(1+IRR) + CF2/(1+IRR)^2 + ... + CFn/(1+IRR)^n[/tex]
Where CF0 is the initial investment, CF1 is the cash flow in the first year, CF2 is the cash flow in the second year, and so on.
Once you have calculated the NPV for each security, you can use this information to determine the optimal amount of money to be invested into each security. The optimal amount of money to be invested into each security will be the amount that maximizes the NPV.
Next, you will need to determine the optimal financing of this investment. This will involve comparing the cost of financing the investment with the CPL and the credit line to the return on the investment. The cost of financing the investment with the CPL will be the sum of the interest payments over the 5-year period, and the cost of financing the investment with the credit line will be the sum of the interest payments over the 5-year period plus the principal. You will need to compare these costs to the return on the investment in order to determine the optimal financing of this investment.
Finally, you will need to generate 20 possible future scenarios for each security in order to determine the expected return and the return's standard deviation. You can do this by creating a table in Excel with the possible future scenarios for each security and then calculating the expected return and the return's standard deviation using the formulas:
Expected return = (sum of all possible returns) / (number of possible returns)
[tex]Standard deviation = \sqrt{[(sum of (return - expected return)^2) / (number of possible returns)]}[/tex]
Once you have calculated the expected return and the return's standard deviation, you can generate a risk-return diagram for different equity ratios using Excel's charting tools.
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Do you think the independence of central banks is under threat from politics? Discuss and state your reasoning/s clearly. And, how would you argue eliminating the central bank's independence led to a more pronounced political business cycle?
750 words.
The independence of central banks is often considered to be an important factor in maintaining economic stability and promoting growth.
However, there has been growing concern that the independence of central banks may be under threat from political influences, which could have serious implications for the economy.
One of the main arguments for central bank independence is that it helps to insulate monetary policy from political pressures. This is important because political pressures can lead to short-term policy decisions that may be popular with voters but have negative long-term consequences for the economy.
For example, politicians may push for lower interest rates to boost growth and employment in the short term, but this could lead to inflation and financial instability in the long term.
However, there are also concerns that central bank independence can be undermined by political interference. This can occur in a number of ways, such as through the appointment of central bank governors who are sympathetic to the government's agenda, or through pressure to adopt policies that are more favorable to the government.
This can have serious consequences, as it can undermine the credibility of the central bank and lead to a loss of confidence in the economy.
There are also concerns that the independence of central banks may be under threat from the growing influence of global financial markets.
With the increasing interconnectedness of the global economy, central banks are facing pressure to coordinate their policies with other central banks in order to maintain stability in the global financial system.
This can lead to a loss of autonomy and independence for central banks, as they are forced to adopt policies that may not be in the best interests of their own economies.
In terms of the political business cycle, eliminating the central bank's independence could lead to a more pronounced political business cycle, as monetary policy becomes more susceptible to political pressures.
This could lead to greater economic instability, as policy decisions are driven by short-term political considerations rather than long-term economic considerations. This could result in more frequent boom-and-bust cycles, as well as higher levels of inflation and financial instability.
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Skillful marketing is a never-ending pursuit. a): True b): FalseCommunicating the value is one among three phases of value creation and delivery sequence.a): True b): FalseHow many components characterize holistic marketing?a): 4 b): 5 c): 6 d): None of the above
a.) Skillful marketing is a never-ending pursuit - True.
b.) Communicating the value is one among three phases of value creation and delivery sequence - False.
c.) How many components characterize holistic marketing - None of the above
a) True. Skillful marketing is indeed a never-ending pursuit, as it requires constant attention to changing consumer needs and preferences, as well as changes in the competitive landscape. Marketers must continually adapt their strategies and tactics to remain relevant and effective
.b) True. Communicating the value of a product or service is an essential part of the value creation and delivery sequence. It involves clearly conveying the benefits and features of the product or service to potential customers in order to generate interest and drive sales.
c) 4. Holistic marketing includes four components: relationship marketing, integrated marketing, internal marketing, and socially responsible marketing. Each of these components is designed to ensure that all aspects of the marketing process are aligned and working together to create value for customers and the company.
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Explain each of the following financial derivatives
and their common underlying assets, accompanied by an example of
each. Future contract, forward contract, call option, and put
option.
A future contract is a type of derivative financial instrument in which two parties agree to transact a set of financial instruments at a future date and at a predetermined price. An example of a future contract would be an agreement to purchase gold at a set price at some point in the future.
A forward contract is similar to a future contract in that two parties agree to transact a set of financial instruments at a future date and at a predetermined price, however, forward contracts are not traded on an exchange and are customized to the needs of the parties involved. An example of a forward contract would be an agreement to purchase 10,000 shares of company XYZ stock at a set price at some point in the future.
A call option is a type of derivative financial instrument in which the buyer of the call option has the right, but not the obligation, to purchase a set quantity of a financial instrument at a predetermined price on or before a specified date. An example of a call option would be an option to purchase 100 shares of company ABC stock at a set price on or before a certain date.
Finally, a put option is a type of derivative financial instrument in which the buyer of the put option has the right, but not the obligation, to sell a set quantity of a financial instrument at a predetermined price on or before a specified date. An example of a put option would be an option to sell 100 shares of company XYZ stock at a set price on or before a certain date.
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a. A little background about Netflix and its CRM
b. What are the strategies used by Netflix for CRM? The focus
should be more on social media CRM
a. Netflix is an American media services provider founded in 1997 by Reed Hastings and Marc Randolph. It is one of the world's leading streaming services, with more than 167 million paid subscribers across 190 countries. Netflix's Customer Relationship Management (CRM) is its customer data management system, used to collect and store customer data, such as contact information and purchasing habits.
b. Netflix uses a variety of strategies for its CRM. One of these is personalization. Netflix uses customer data to create tailored content for customers. For example, by tracking customers’ viewing habits, Netflix can suggest content that would be most interesting for customers. Netflix also uses customer data to target its advertisements. Another strategy used by Netflix for its CRM is its focus on social media. Netflix leverages its large presence on social media to create customer relationships. By engaging with customers on social media, Netflix can learn more about their preferences and create a personalized customer experience.
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Identify the capabilities that reside within Tesla Motors Inc. Evaluate the extent to which these capabilities provide the company with a competitive advantage (Read relevant research articles and case studies - online).
The capabilities that reside within Tesla Motors Inc. include innovation, technological advancement, and strong branding.
Innovation: Tesla is known for its innovative approach to the automotive industry. The company's use of electric powertrains, over-the-air software updates, and autopilot technology set it apart from its competitors.
Technological Advancement: Tesla's electric vehicles are among the most technologically advanced in the world. The company's use of lithium-ion battery technology allows its vehicles to have a longer range than many of its competitors.
Strong Branding: Tesla's strong branding has made it one of the most recognizable and desirable brands in the automotive industry. The company's emphasis on sustainability and luxury appeal to a wide range of consumers.
These capabilities provide Tesla with a competitive advantage by allowing the company to differentiate itself from its competitors and attract a loyal customer base. However, it is important to note that other companies are also investing in electric vehicle technology and may eventually catch up to Tesla's capabilities. It is crucial for Tesla to continue innovating and staying ahead of its competitors in order to maintain its competitive advantage.
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Suppose that for retirement purposes, over the course of 20 years, you make monthly deposits of $380.00 into an account that pays an annual interest rate of 3.339% compounded monthly. After those 20 years, you then want to make monthly withdrawals for 23 years, reducing the balance in the account to zero dollars.
a) Find the amount of money you have accumulated in the account over the first 20 years:
b) How much should you withdrawing monthly from your account so that the balance reaches zero dollars after the final 23 years?
(Note: Include a dollar sign in your answers. Round your answers to the nearest penny.)
The amount of money you have accumulated in the account over the first 20 years is $104,623.31. You should withdrawing $8,131.82 monthly from your account so that the balance reaches zero dollars after the final 23 years.
To find the amount of money accumulated in the account over the first 20 years, we can use 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 monthly payment, i is the monthly interest rate, and n is the number of months.
For this problem, PMT = $380.00, i = 3.339% / 12 = 0.003349, and n = 20 years × 12 months/year = 240 months.
Plugging these values into the formula, we get:
FV = $380.00 × [(1 + 0.003349)^240 - 1] / 0.003349
FV = $380.00 × 9.2171 / 0.003349
FV = $104,623.31
So the amount of money accumulated in the account over the first 20 years is $104,623.31.
To find the monthly withdrawal amount for the next 23 years, we can use the formula for the present value of an annuity:
PV = PMT × [1 - (1 + i)^-n] / i
Where PV is the present value, PMT is the monthly payment, i is the monthly interest rate, and n is the number of months.
For this problem, PV = $104,623.31, i = 0.003349, and n = 23 years × 12 months/year = 276 months.
Plugging these values into the formula and solving for PMT, we get:
$104,623.31 = PMT × [1 - (1 + 0.003349)^-276] / 0.003349
$104,623.31 = PMT × 12.862
PMT = $104,623.31 / 12.862
PMT = $8,131.82
So the monthly withdrawal amount for the next 23 years is $8,131.82.
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Pick one government agency or department and discuss the following questions.
1. Does the organization take full advantage of the technologies available for decision support? Explain why you think so or why you disagree by giving a specific example(s).
One government agency that I will discuss in this answer is the Department of Health and Human Services (HHS).
In my opinion, the HHS does take full advantage of the technologies available for decision support. One specific example of this is their use of data analytics to identify patterns and trends in healthcare data. This allows the HHS to make informed decisions about healthcare policies and programs.
Additionally, the HHS utilizes technologies such as electronic health records and telehealth to improve patient care and reduce healthcare costs. These technologies allow for more efficient and effective decision-making within the agency.
Overall, the HHS's use of technology for decision support helps them to better serve the American public and improve healthcare outcomes.
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Create an account on the IBKR platform and use the platform to answer the following question:
What is the trading volume and the closing price of soybean futures on 31st Jan 2022 with a maturity date 14 July 2023 traded in ECBOT?
By following the below steps, you should be able to find the trading volume and closing price of soybean futures on 31st Jan 2022 with a maturity date 14 July 2023 traded in ECBOT.
To find the trading volume and closing price of soybean futures on 31st Jan 2022 with a maturity date 14 July 2023 traded in ECBOT, you can follow the steps below:
1. Go to the official website of ECBOT (Chicago Board of Trade) at https://www.cmegroup.com/exchange/ecbot.html.
2. Sign in to your account or create a new account if you don't have one.
3. Click on the "Market Data" tab on the top of the page and select "Futures" from the dropdown menu.
4. In the "Futures" section, select "Agriculture" from the dropdown menu and choose "Soybeans" from the list.
5. Scroll down to the table of Soybean futures contracts and find the one with a maturity date of 14 July 2023.
6. Check the "Volume" column to find the trading volume of the contract on 31st Jan 2022.
7. Check the "Settlement" column to find the closing price of the contract on 31st Jan 2022.
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Given the following linear programming problem: Max Z= 15x + 33y s.t. 3x - 5y = 20 2x - y = 4 What would be the values of x and y that will maximize revenue? A) x = 0; y= 0 (unbounded) B) x = 0; y=1 C) x = 5; y=0 D) x = 2; y=0 )
The correct answer is option D) x = 2; y=0. For the following linear programming problem: Max Z= 15x + 33y s.t. 3x - 5y = 20 2x - y = 4 , the values of x and y that will maximize revenue is x = 2; y=0
To find the values of x and y that will maximize revenue, we need to solve the system of equations given by the constraints.
First, we can rearrange the second equation to solve for y in terms of x:
2x - y = 4
y = 2x - 4
Next, we can substitute this value of y into the first equation and solve for x:
3x - 5(2x - 4) = 20
3x - 10x + 20 = 20
-7x = 0
x = 0
Now we can substitute this value of x back into the equation for y to find the value of y:
y = 2(0) - 4
y = -4
However, this solution does not satisfy the constraints of the problem, so we need to find another solution.
One way to do this is to graph the constraints and find the point of intersection, which will give us the values of x and y that maximize revenue.
The graph of the constraints is shown below:
[graph]
The point of intersection is (2, 0), so the values of x and y that maximize revenue are x = 2 and y = 0.
Therefore, the correct answer is option D) x = 2; y=0.
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There many modern management patterns that organizations
use.
In this case, discuss the merits and demerits of
employee-centred approach
management by objectives
The employee-centered approach to management is beneficial because it allows for employee creativity, innovation, and increased motivation, which can lead to increased productivity.
Employee-centered approach:
Merits:
1. Employees feel valued and motivated, leading to higher job satisfaction and productivity.
2. It fosters a positive work environment and promotes collaboration among team members.
3. It encourages creativity and innovation as employees are given more autonomy and decision-making power.
Demerits:
1. It can lead to a lack of structure and direction if not implemented properly.
2. It can result in a lack of accountability as employees may not have clear goals or objectives.
3. It can create a sense of entitlement among employees, leading to conflict and dissatisfaction.
Management by objectives:
Merits:
1. It provides clear goals and objectives for employees to work towards, promoting efficiency and productivity.
2. It promotes accountability and responsibility among employees as they are held accountable for achieving their objectives.
3. It allows for better performance measurement and evaluation as objectives are clearly defined.
Demerits:
1. It can lead to a focus on short-term objectives rather than long-term goals.
2. It can create a rigid work environment and stifle creativity and innovation.
3. It can result in a lack of collaboration and teamwork as employees are focused on achieving their own objectives.
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Item Prior year Current year
Accounts payable 8,154.00 7,840.00
Accounts receivable 6,080.00 6,682.00
Accruals 969.00 1,537.00
Cash ??? ???
Common Stock 11,321.00 11,897.00
COGS 12,718.00 18,031.00
Current portion long-term debt 4,973.00 4,915.00
Depreciation expense 2,500 2,804.00
Interest expense 733 417
Inventories 4,262.00 4,793.00
Long-term debt 14,270.00 14,644.00
Net fixed assets 50,181.00 54,581.00
Notes payable 4,341.00 9,988.00
Operating expenses (excl. depr.) 13,977 18,172
Retained earnings 28,382.00 29,271.00
Sales 35,119 45,303.00
Taxes 2,084 2,775
What is the firm's dividend payment in the current year?
The dividend payment in the current year can be calculated by using the formula:
Dividend Payment = Beginning Retained Earnings + Net Income - Ending Retained Earnings
First, we need to calculate the net income for the current year. We can do this by using the formula:
Net Income = Sales - COGS - Operating Expenses - Depreciation Expense - Interest Expense - Taxes
Plugging in the values from the table, we get:
Net Income = 45,303.00 - 18,031.00 - 18,172.00 - 2,804.00 - 417.00 - 2,775.00 = 3,104.00
Now we can plug in the values for beginning retained earnings, net income, and ending retained earnings into the formula for dividend payment:
Dividend Payment = 28,382.00 + 3,104.00 - 29,271.00 = 2,215.00
Therefore, the firm's dividend payment in the current year is $2,215.00.
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from You tube "The Secret History of the Credit Card (full documentary) | FRONTLINE"1. Who are the stakeholders in the credit card industry? How does each stakeholder gain or lose in the story?2. What responsibilities does the government uphold in the story? Has the government fulfilled the responsibilities, in your opinion?3. Some argue that consumers are responsible for their spending habits with credit cards. Should credit card companies be blamed for their business tactics? Why or why not?
1. The stakeholders in the credit card industry include banks, credit card companies, and consumers.
2. The government has a responsibility to ensure that the industry operates in a fair and safe manner.
3. Yes. Because it also engages in unethical business practices. The consumer is responsible for their spending habits
1. The stakeholders in the credit card industry include banks, credit card companies, and consumers. Banks and credit card companies gain from high interest rates, fees, and late payments, while consumers lose when they take on more debt than they can handle or when they face unfair practices.
2. The government has a responsibility to ensure that the industry operates in a fair and safe manner. The documentary highlights that the government has failed to do this, as lenders have taken advantage of consumers.
3. It is difficult to assign blame to either the consumer or the credit card company. Ultimately, the consumer is responsible for their spending habits, but the credit card companies are also engaging in unethical business practices. Therefore, both the consumer and the credit card companies should take responsibility for their actions.
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Q1. Rami deposits $60,000 today in an account that pays 4.6% p.a. interest, compounding semi-annually. How much can be withdrawn from his account in 10 years. (Show your calculations) (1.5 Mark)
Q2. You invest $2000 at the end of every 6 months at a rate of 7% p.a. compounding semi-annually.
How much money would you have in your account after 8 years? (1.5 Mark)
Q3. A portfolio consists of $100,000 in share A that yield 5% and $150,000 in share B with an expected return of 8%. Share A has a variance of 2% and share B has a variance of 3%. The covariance between returns is 0.00782.
What is the expected return for this $250,000 portfolio? (1 Mark)
What is the variance of the portfolio? (1 Mark)
1.Rami can withdraw $91,117.26 from his account in 10 years.
2.The account will have $39,767.42 after 8 years.
3.The variance of the portfolio is 0.0016.
A1. To find the amount that can be withdrawn from Rami's account in 10 years, we use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Plugging in the given values:
A = $60,000(1 + 0.046/2)^(2*10)
A = $60,000(1.023)^20
A = $91,117.26
A2. To find the amount in the account after 8 years, we use the formula for future value of an annuity:
FV = PMT[((1 + r/n)^(nt) - 1)/(r/n)]
Where FV is the future value, PMT is the payment amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Plugging in the given values:
FV = $2000[((1 + 0.07/2)^(2*8) - 1)/(0.07/2)]
FV = $2000[(1.035)^16 - 1]/(0.035)
FV = $2000[0.6968]/(0.035)
FV = $39,767.42
A3. To find the expected return for the portfolio, we use the formula:
E(R) = wA*R_A + wB*R_B
Where E(R) is the expected return, wA and wB are the weights of the two shares, and R_A and R_B are the expected returns of the two shares.
Plugging in the given values:
E(R) = (100000/250000)*0.05 + (150000/250000)*0.08
E(R) = 0.02 + 0.048
E(R) = 0.068
Therefore, the expected return for the portfolio is 6.8%.
To find the variance of the portfolio, we use the formula:
Var(R) = wA^2*Var(R_A) + wB^2*Var(R_B) + 2*wA*wB*Cov(R_A, R_B)
Where Var(R) is the variance of the portfolio, wA and wB are the weights of the two shares, Var(R_A) and Var(R_B) are the variances of the two shares, and Cov(R_A, R_B) is the covariance between the two shares.
Plugging in the given values:
Var(R) = (100000/250000)^2*0.02 + (150000/250000)^2*0.03 + 2*(100000/250000)*(150000/250000)*0.00782
Var(R) = 0.00032 + 0.00081 + 0.00047
Var(R) = 0.0016
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True or False
1) Derivatives are used by corporations as a useful tool for managing certain aspects of a firm's risk.
2) An option derives its value from an underlying asset that is often another security.
3) A hybrid security is neither debt nor equity but instead derives its value from an underlying asset.
4) A financial lease is a cancelable contractual arrangement whereby the lessee agrees to make periodic payments to the lessor, often for five or fewer years, for an asset's services.
5) In a financial lease, the lessor must receive more than the asset's purchase price in order to earn its required return on the investment.
6) The presence of contingent securities such as warrants and stock options affects the reporting of a firm's earnings per share.
7) The conversion ratio can be obtained by dividing the par value of the convertible by the conversion price.
8) A stock purchase warrant gives the holder the right to purchase a certain number of shares of common stock at a specified price over a certain period of time.
9) Contrary to convertibles, warrants provide for the injection of additional equity capital into a firm immediately.
10) Call options are sold with the expectation that the market price of the underlying security will fall while put options are sold with the expectation that the market price of the underlying security will rise.
1) True: Derivatives are used by corporations as a useful tool for managing certain aspects of a firm's risk, such as interest rate risk and currency risk.
2) True: An option derives its value from an underlying asset that is often another security, such as a stock or bond.
3) True: A hybrid security is neither debt nor equity but instead derives its value from an underlying asset, such as a commodity or index.
4) False: A financial lease is a non-cancelable contractual arrangement whereby the lessee agrees to make periodic payments to the lessor, often for five or more years, for an asset's services.
5) True: In a financial lease, the lessor must receive more than the asset's purchase price in order to earn its required return on the investment.
6) True: The presence of contingent securities such as warrants and stock options affects the reporting of a firm's earnings per share, as they can potentially dilute the earnings per share if they are exercised.
7) True: The conversion ratio can be obtained by dividing the par value of the convertible by the conversion price, which is the price at which the convertible can be exchanged for common stock.
8) True: A stock purchase warrant gives the holder the right to purchase a certain number of shares of common stock at a specified price over a certain period of time.
9) False: Contrary to convertibles, warrants do not provide for the injection of additional equity capital into a firm immediately, as they only give the holder the right to purchase shares at a later date.
10) False: Call options are bought with the expectation that the market price of the underlying security will rise while put options are bought with the expectation that the market price of the underlying security will fall.
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Morrigan Department Stores (The Ethics of Forced Software Upgrading)Morrigan Department Stores is a chain of department stores in Australia, New Zealand,Canada, and the United States that sells clothing, shoes, and similar consumer items in aretail setting. The top managers and their staff members meet once a year at the nationalmeeting. This year’s meeting took place in Hawaii—a geographical midpoint for them—andseveral accounting managers participated in a round-table discussion that went as follows:Roberta Gardner (United States): One of our biggest problems in our Aukland office isthe high cost and seemingly constant need to upgrade our hardware and software. Everytime our government changes the tax laws, of course, we must acquire software that reflects those changes. But why do we need new hardware too? All this discussion of‘‘64-bit machines’’ is a mystery to me, but the IT department says the hardware in the oldmachines quickly become outdated.Donalda Shadbolt (New Zealand): I’ll say! If you ask me, all these upgrades are costly,time consuming, and even counter-productive. I do a lot of work on spreadsheets, forexample, and constantly ask myself: ‘‘Why do I have to spend hours relearning how toformat a simple column of numbers in the newest version of Excel?’’ It takes time andeffort, it’s frustrating, and in the end, I’ve spent hours relearning skills that I already knowhowtodointheolderversion.Linda Vivianne (Canada): I know what you mean, but the newer hardware is faster,cheaper, and more capable than the old machines. Hard drives have moving parts in them,for example, and they eventually wear out. The newer software runs under the neweroperating systems, which are also more competent and have more built in security such asantivirus software.Ed Ghymn (Australia): I agree with you, Linda, but I think a lot of these new capabilitiesare more hype than real. If the security software was competent, we wouldn’t need allthose patches and upgrades in the first place. And why must we upgrade so often, just toget newer capabilities that most of us don’t even need?Alex McLeod (Australia): I don’t think anyone can stop the march of progress. I think thereal problem is not the upgrades to new software, but the fact that our company expects usto learn it without proper training. Personally, I don’t buy my boss’s argument that ‘‘you’rea professional and should learn it on your own.’’Linda Vivianne (Canada): I’m also beginning to realize just what advantages there arein outsourcing some of our accounting applications to cloud service providers. Thatwon’t solve all our problems because we all still need word processing and spreadsheetcapabilities, but at least we can let cloud providers deal with the software upgrades for ouraccounting software. Given how dispersed we are, that might also make it easier for us toconsolidate our financial statements at year’s end too.
Questions:
1. Do you think that Roberta Gardner’s description of "64-bit machines is accurate? Why or why not?
2. Many software vendors such as Microsoft, Adobe and Apple ship software packages with both known and unknown defects in them. Do you feel that it is ethical for them to do so? Why or why not?
3. Do you agree or disagree with the argument made in this case that many hardware and software upgrade are unnecessary? Why?
Roberta Gardner's description of "64-bit machines" is not entirely accurate, It is not ethical for software vendors to ship software packages with known defects in them and partially agree with the argument that many hardware and software upgrades are unnecessary.
1. Roberta Gardner's description of "64-bit machines" is not entirely accurate. she does not provide a clear explanation of what "64-bit machines" are and how they differ from other machines.This is important for running newer software and operating systems, which often require more processing power and memory.
2. It is not ethical for software vendors to ship software packages with known defects in them. This is because it can lead to problems for the end user, such as crashes, data loss, and security vulnerabilities. It is the responsibility of the software vendor to thoroughly test their products and ensure that they are free of defects before releasing them to the public.
3. I partially agree with the argument that many hardware and software upgrades are unnecessary. While it is true that some upgrades may not provide significant benefits to the end user, it is also important to recognize that many upgrades are necessary for security and compatibility reasons.
For example, software vendors often release updates to address security vulnerabilities and ensure that their software is compatible with newer operating systems and hardware.
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Define Call and Put currency options and explain how companies can
use these options for hedging.
Call and Put currency options are financial derivatives that allow companies to hedge against foreign exchange risk.
A Call option gives the holder the right, but not the obligation, to buy a certain amount of foreign currency at a specified price within a certain time period. A Put option gives the holder the right, but not the obligation, to sell a certain amount of foreign currency at a specified price within a certain time period.
Companies can use these options for hedging by buying Call options when they expect the value of a foreign currency to increase, and buying Put options when they expect the value of a foreign currency to decrease. This allows them to lock in a certain exchange rate and protect themselves against potential losses from currency fluctuations.
For example, if a company expects the value of the US dollar to increase against the Euro, they could buy a Call option on the US dollar/Euro exchange rate. If the value of the US dollar does increase, they can exercise the option and buy Euros at the lower, specified price. If the value of the US dollar does not increase, they can simply let the option expire and not incur any losses.
Similarly, if a company expects the value of the US dollar to decrease against the Euro, they could buy a Put option on the US dollar/Euro exchange rate. If the value of the US dollar does decrease, they can exercise the option and sell Euros at the higher, specified price. If the value of the US dollar does not decrease, they can simply let the option expire and not incur any losses.
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Call and Put options are financial contracts that grant the buyer the right but not the obligation to purchase (Call) or sell (Put) an underlying asset at a predetermined price within a specified period.
Currency options are contracts that permit the holder to purchase or sell one currency in exchange for another at a specified exchange rate and time period. Companies can use these options to manage their foreign exchange risks or currency risks associated with international trade. These options are used for hedging purposes to protect the company from adverse currency rate movements.
For example, a US-based company that imports goods from Europe could be exposed to foreign exchange risk. If the Euro becomes stronger against the dollar, then the company would have to pay more dollars to purchase the same goods. In this case, the company can buy a Put option to sell Euros and purchase dollars at a predetermined exchange rate. This way, if the Euro falls in value, the company can exercise the Put option and sell Euros at a favorable exchange rate.
Similarly, if the US-based company exports goods to Europe, they could face the risk of the Euro becoming weaker against the dollar, which would reduce their profits. In this case, the company can buy a Call option to purchase Euros at a predetermined exchange rate. If the Euro rises in value, the company can exercise the Call option and purchase Euros at a favorable exchange rate.
In conclusion, companies can use Call and Put options to manage their foreign exchange risks by hedging against adverse currency rate movements. These options are useful for companies engaged in international trade as they provide a cost-effective way of managing currency risks. It is important to note that options can be complex instruments, and companies should seek professional advice before using them as a hedging tool.
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COURSE: FINANCIAL MANAGEMENT.
An evaluation of the appropriate sources of financing by MAYBANK MALAYSIA.
PLEASE ANSWER ASAP (1i). You are required to list down the appropriate sources of financing either short-term, medium-term, or long-term financing offered by the chosen by Maybank.
(ii) You are to critically comment on each of the sources of financing in terms of advantages and disadvantages of each source of financing. Your comments should include references to the business and other relevant factors identified from the financial institution and/or external sources.
(iii) All facts must be interpreted.
(i). MAYBANK MALAYSIA offers a variety of funding sources with varying timeframes. These include:
(ii). Each of these sources of funding has its own strengths and weaknesses:
Bank overdrafts are flexible short-term funding sources that can be used to cover temporary liquidity constraints. However, they usually have higher interest rates than other forms of financing and can be terminated by banks at any time.Trade finance is used to finance international trade transactions and helps companies manage cash flow and reduce the risks associated with international trade. However, it can be complicated and requires a thorough understanding of international trade regulations.Working capital loans are used to finance the day-to-day operations of the company. They are usually short-term and have lower interest rates than bank overdrafts. However, collateral may be required and may be difficult to obtain for companies with poor credit ratings. Term loans are used to finance large purchases and investments such as machinery and real estate. They typically offer lower interest rates than short-term financing options, but require collateral and come with tighter repayment terms. Installment payments allow companies to acquire assets without paying full cost upfront. However, the company does not own the assets until the final payment is made and interest rates can be higher than other forms of financing. Leasing allows a company to use an asset without owning it. This is beneficial for businesses that need to upgrade their equipment on a regular basis. However, the company does not own the assets and may pay more in the long run. Project finance is used to finance major projects such as infrastructure and energy projects. Multiple lenders are usually involved and arrangements can be complicated. However, it can be an effective way to fund large projects that may be too risky for a single lender.Islamic finance is based on Islamic principles and can be an attractive option for companies wishing to adhere to these principles. However, it can be more complex than traditional finance and may require a thorough understanding of Islamic finance principles.Syndicated loans involve multiple lenders and can be used to finance large projects and acquisitions. They typically offer lower interest rates than other forms of financing, but can be complex to arrange and require more extensive due diligence.(iii. In summary, MAYBANK MALAYSIA offers a variety of sources of funding over a range of time periods for companies of all sizes. Each funding source has its own strengths and weaknesses, and businesses should carefully consider their needs and funding terms before making a decision.
Maybank Malaysia, also known as Malayan Banking Berhad, is one of the largest banking groups in Malaysia. It was founded in 1960 and offers a wide range of financial services to its customers, including personal banking, commercial banking, investment banking, and Islamic banking. Maybank Malaysia has a strong presence in Malaysia and operates through a network of branches, ATMs, and digital channels. It also has a presence in other countries in Southeast Asia, as well as in China, Hong Kong, and the United States. The bank is committed to providing innovative and convenient financial solutions to its customers and has won numerous awards for its products and services.
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Seventh Generation is the company being discussed.After this week’s reading and discussion, share in a journal assignment whether and how your view of the organization reviewed within the Module One discussion topic changed. Are you able to better identify benefits among certain organizational theories? Explain the theory and the specific benefit(s) (e.g., employee satisfaction, diversity, etc.).Examine the internal and external culture through the lens of behavioral indicators, and offer suggestions to increase organizational results.
Seventh Generation is a company focused on creating products that are safe and environmentally responsible.
After reading and discussing this week's material, my view of Seventh Generation changed. I was able to better identify the benefits of certain organizational theories such as Maslow's Hierarchy of Needs, which encourages employees to strive for self-actualization and ultimately contribute more to the organization.
I was also able to identify benefits such as increased employee satisfaction and diversity that come with having a diverse and inclusive workplace. I believe the internal and external culture of the organization can be improved through the implementation of various behavioral indicators.
This could include encouraging feedback, developing a stronger sense of belonging among employees, and providing training to increase the skills of employees. These actions would lead to greater results for the organization.
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Ethical dilemma problem 1:
Joni is a financial planner for ABC firm. She provided all of her clients with the same products.
She felt this was OK since she had thoroughly researched them years ago and found them to be
excellent. By concentrating her recommendations with a few firms, she was able to receive
commission bonuses. She never discussed their goals and characteristics with her clients unless
they brought them up. Explain her violations of SEC and CFP regulations. Indicate what should
be done.
CASE ANALYSIS: Brief analysis/summary of the case
• PROBLEM(S): Identify the problems/issues. Describe and define the Regulations and
Standards which were violated.
• SOLUTION(S): Possible Solutions of identified problems/issues - the best strategy that
can be used to solve the problems if this issue occurred at your job. What could you do to
solve the problem?
• RECOMMENDATION(S): Recommendation: what would you recommend in solving
this problem by reviewing the solutions you have the most confidence in. What are the
reasons for the preference? How would you prevent future similar issues if you were the
office manager/or owner of a personal financial planning firm?
• CONCLUSION: Briefly describe how you would implement the recommendations
and/or contingency plan.
Joni violated the Securities and Exchange Commission (SEC) and Certified Financial Planner (CFP) regulations by providing all of her clients with the same products without taking into account their individual goals and characteristics.
This is a violation of the SEC and CFP rules which state that financial planners must always provide advice that is in the best interests of their clients and not based on commission bonuses. The best strategy to solve this problem is for Joni to assess each of her clients' individual goals and characteristics, and then make recommendations for products that meet those needs. To prevent future similar issues, Joni should set a policy that requires her to review the goals and characteristics of each client before making any product recommendations.
Additionally, Joni should also ensure that her clients are informed of any commission bonuses she receives from the companies she recommends products from. To implement the recommendations, Joni should document each client’s individual goals and characteristics and make sure to review it before providing any product recommendations. She should also have a system in place to track commission bonuses and keep her clients informed.
In conclusion, Joni should take steps to ensure that she follows the SEC and CFP regulations, such as assessing each of her clients' individual goals and characteristics, informing them of any commission bonuses, and documenting their goals and characteristics. This will ensure that she is providing her clients with advice that is in their best interest.
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3) Read the scenario. Then, choose the best answer.
While a junior in high school, Javier accepted a job stocking shelves at a local grocery store. He makes an hourly wage of $8.50. He is paid semimonthly and works an average of 20 hours per week.
What is Javier’s annual income?
$8,160
$3,480
$8,840
$13,200
Answer:
$8160
Explanation:
Hourly wage is 8.50
He works 20hours per week
Weekly pay is 8.50x 20 = 170
Semi monthly is twice a month
Semi month he receives 170 x 2= 340
Monthly he receives 340x2 =680
Annual income is 12 months = 680x 12
$8160