Open-high-low-close and volume are terms used in the stock market to describe the activity of a particular stock on a given day. Open refers to the price of a stock at the beginning of the trading day.
The example is given, on 2019-10-01, the stock opened at 2983.689941, reached a high of 2992.530029, a low of 2938.699951, and closed at 2940.250000. The volume for the day was 3558040000.
High refers to the highest price the stock reached during the trading day.
Low refers to the lowest price the stock reached during the trading day.
Close refers to the price of the stock at the end of the trading day.
Volume refers to the number of shares of the stock that were traded during the day.
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All these statements are True except:
A. The difference between operating return on asset and the effective interest rate after tax is called the spread.
B. To compute the quick ratio, trade receivables are not included in current assets.
C. The return on operating asset is the product of the net operating profit margin and the operating asset turnover.
D. The asset Turnover is Total assets divided by equity Current ratios indicate short term debt paying ability of a firm.
The statement that is not true is D. The asset turnover is not calculated by dividing total assets by equity. The asset turnover is calculated by dividing sales by average total assets. Therefore, the correct answer is D.
Here is the correct definition of each term:
A. The spread is the difference between the operating return on asset and the effective interest rate after tax.
B. The quick ratio is calculated by subtracting inventories from current assets and then dividing by current liabilities. Trade receivables are included in current assets.
C. The return on operating asset is the product of the net operating profit margin and the operating asset turnover.
D. The asset turnover is calculated by dividing sales by average total assets. It is a measure of how efficiently a company is using its assets to generate sales.
So the correct answer is D. The asset Turnover is not calculated by dividing total assets by equity.
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Engineering Management Subject:400 words insight on "Eat that frog!21 Great Ways toStop Procrastinating and Get More Done in Less Time by BrianTracy"
"Eat That Frog! 21 Great Ways to Stop Procrastinating and Get More Done in Less Time" is a self-help book written by Brian Tracy. The book offers practical and straightforward advice on how to overcome procrastination and increase productivity.
Tracy uses the analogy of a frog to represent the most important and challenging task that we need to complete each day. By "eating the frog" first thing in the morning, we can avoid procrastination and achieve our goals more efficiently.
One of the key concepts in the book is the importance of setting clear and specific goals. Tracy argues that by knowing exactly what we want to achieve, we can create a plan of action and stay focused on our objectives. He also emphasizes the importance of breaking down larger goals into smaller, more manageable tasks. By doing so, we can make consistent progress and avoid feeling overwhelmed.
Tracy also discusses the importance of time management and offers tips for maximizing productivity. For example, he recommends using the "Pareto Principle," which states that 80% of our results come from 20% of our efforts. By identifying the 20% of tasks that are most important and focusing our efforts on those tasks, we can achieve greater results with less effort.
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Under ---- technique, researchers provide respondents with the opportunity to express their feelings through nonverbal form such as sounds, music, and drawings. *Focus group interviewObservational researchMetaphor analysisProjective techniquesPeople with ------ Need for Cognition (NFC) likes the part of an ad that is rich in product-related information and people with ---- NFC are attracted to background aspects of an ad, such as attractive model or well-known celebrity. *Low, HighLow, ModerateHigh, LowHigh, ModerateIndividuals who successfully achieve their goals usually set new and higher goals for themselves. They raise their -------. *Level of Defense mechanismLevel of MotivationLevel of CognitionLevel of aspirationSome theorists have emphasized the dual influence of ----- and ----- on personality development. *Heredity and Early childhood experiencesSocial and Political influencesEarly childhood experiences and SocietyHeredity and environmental influences
The correct option are D, A, D, D.
1 - Under Projective techniques researchers provide respondents with the opportunity to express their feelings.
2 - People with high Need for Cognition (NFC) likes the part of an ad that is rich in product-related information
3 - Individuals who successfully achieve their goals usually set new and higher goals for themselves.
4 - Some theorists have emphasized the dual influence of heredity and environmental influences
The correct answers to the questions are as follows:
1. Projective techniques: Under projective techniques, researchers provide respondents with the opportunity to express their feelings through nonverbal form such as sounds, music, and drawings.
2. High, Low: People with high Need for Cognition (NFC) likes the part of an ad that is rich in product-related information and people with low NFC are attracted to background aspects of an ad, such as attractive model or well-known celebrity.
3. Level of aspiration: Individuals who successfully achieve their goals usually set new and higher goals for themselves. They raise their level of aspiration.
4. Heredity and environmental influences: Some theorists have emphasized the dual influence of heredity and environmental influences on personality development.
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Procter & Gamble (P&G) is the world’s largest consumer products company. Some of its category-defining brands include Ivory soap, Tide detergent, Crest toothpaste, and Pampers diapers. Among its many offerings, P&G has more than 20 consumer brands in its lineup that achieve over 66.8 billion dollars or three (3) trillion pesos in 2018. P&G’s iconic brands are a result of a clearly formulated and effectively implemented company strategy. The company pursues a strategy which attempts to create higher perceived value for its customers than its competitors by delivering products with unique features and attributes. Creating higher perceived value generally goes along with higher product costs due to greater innovation efforts and promotion expenses, among other things. Successful differentiators are able to command a premium price for their products, but they must also control their costs. In addition, the company was able to achieve its market leader position through its top management commitment that collaborates even with the lower-level managers in the company.
In recent years, however, P&G’s strategic position has weakened considerably and seems to be losing rather than winning. P&G lost market share in key "product-country combinations," including beauty in the United States and oral care in China, amid an overall lackluster performance in many emerging economies. As a consequence, profits have declined. P&G posted a sustained competitive advantage in recent years; its stock market valuation has fallen, while its competitors Unilever, Colgate-Palmolive, and Kimberly-Clark posted strong gains. Many wonders when P&G will play to win again.
Answer the following questions: (3 items x 10 points)
1. Which phase in the evolution of strategic management is present in the given case?
2. Which type of strategy is being employed by P&G based on the given case study?
3. How will P&G regain its market position based on the concept of competitive advantage?
1. The phase in the evolution of strategic management present in the given case is the differentiation phase.
2. The type of strategy being employed by P&G based on the given case study is a differentiation strategy.
3. P&G can regain its market position based on the concept of competitive advantage by focusing on innovation and differentiation.
P&G is attempting to create higher perceived value for its customers than its competitors by delivering products with unique features and attributes. This is a key aspect of the differentiation phase, as it involves creating products or services that are perceived as unique and valuable by customers.
This is evident from the company's focus on creating higher perceived value for its customers through unique features and attributes, as well as its efforts to control costs in order to maintain a competitive advantage.
This could involve investing in research and development to create new products or features that are unique and valuable to customers, as well as finding ways to reduce costs in order to maintain a competitive advantage.
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(Items with ABC Company have the same data but different requirements). ABC Company is a thriving company that sells car accessories. During 2020, the company encountered tremendous increases in sales and earnings. Because of this, the CFO wants to make sure that money available are optimized. The policy of the company is to retain the following capital structure: 30%-Long-term debt; 10% preferred stock, 60% common stock for the next 3 years. The company’s tax rate is 40%. Due to limited funds, projects have to be chosen out of the various opportunities for investments presented by the managers of each division to the CFO. Investment Opportunity A (IOA) has an internal rate of return of 15% with an investment cost of P400,000. IOB-22%, P200,000; IOC-25%, P700,000; IOD-23%, P400,000; IOE-17%, P500,000; IOF-19%, P600,000; IOG-14%, P500,000. Other data that the CFO considered are the following: For Long-Term Debt, the firm can obtain additional P450,000 by issuing a P1,000 par value bond with to be repaid for 15 years. The bond’s current selling price is P960. The company’s annual percentage of coupon interest is based on its competitor’s bond’s details wherein the competitor’s bond’s selling price is P1,039.9271 with a yield to maturity of 8%, a par value of P1,000, and to be repaid within 5 years. In excess of P450,000 ABC Company will incur a before-tax cost of debt equivalent to the rounded off cost of debt within the P450,000 range plus 7.33%. Preferred stock shall also be issued at P65 per share with a par value of P70 and a 14% dividend rate per annum. For Common Stock Equity, the company anticipates that its dividend per share in 2021 shall be P.96 while its earnings per share shall be P3.20. The amount of net income available to common stockholders is P500,000 while the average total common equity is P2,500,000. Further, the company observes a 55% retention ratio. The current selling price of its stock is P12 per share. In the coming year, the company anticipates Retained Earnings to reach P1,500,000. After the retained earnings are used up, additional funds can be obtained by the firm through additional common stock issuance at P9 per share (net). Requirement: WACC within the range of P0 to P1,500,000.
The weighted average cost of capital (WACC) for ABC Company within the range of P0 to P1,500,000 is 9.67%.
To calculate the weighted average cost of capital (WACC) for ABC Company within the range of P0 to P1,500,000, we need to use the following formula:
WACC = (Wd)(Kd)(1-T) + (Wp)(Kp) + (Ws)(Ks)
Where:
Wd = weight of debt in the capital structure
Kd = before-tax cost of debt
T = tax rate
Wp = weight of preferred stock in the capital structure
Kp = cost of preferred stock
Ws = weight of common stock in the capital structure
Ks = cost of common stock equity
To find the WACC within the range of P0 to P1,500,000, we need to calculate the weights and costs of each component of the capital structure.
Weight of debt (Wd) = 30% = 0.30
Weight of preferred stock (Wp) = 10% = 0.10
Weight of common stock (Ws) = 60% = 0.60
Before-tax cost of debt (Kd) = 8% + 7.33% = 15.33%
Tax rate (T) = 40% = 0.40
Cost of preferred stock (Kp) = (14%)(70)/65 = 15.08%
Cost of common stock equity (Ks) = (0.96/12) + [(3.20)(0.55)/(12)] = 8.73%
Now we can plug these values into the WACC formula:
WACC = (0.30)(15.33%)(1-0.40) + (0.10)(15.08%) + (0.60)(8.73%)
WACC = 9.67%
Therefore, the weighted average cost of capital (WACC) for ABC Company within the range of P0 to P1,500,000 is 9.67%. This means that the company's cost of capital for investments within this range is 9.67%.
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How many years will it take Jack to pay off his debt of $5,700 at a simple rate of 8.5% and pay a total interest of $1,090? 7. Find the principal of a loan taken at 8% for 3 years when the total interest is $516. 8. What is the current value of a loan taken at 3% for 4 years if the interest paid is $1,350? 9. What is the current value of a loan taken at 7% for 5 years if the borrower has to pay a total of $11,500? 10. If you deposit $600 at a bank paying 44% simple interest, how much will you collect after 11 months? 11. If you want your balance to be $8,000 in 4 years and if you deposit your money at a bank paying 62%, how much is the initial deposit? 12. Find the amount of money that $700 would grow to if you leave it for 6 years at a bank paying 112% simple interest? 13. What is the rate of interest for Linda, who saved $2,500 in her havings account and collected $2,590 after 20 months?
Jack take to pay off his Principle loan 6.57 years. the personal loan is $3,883, The current value is $9,708, and the interest is 8.64%.
A1:The formula for calculating this is: N = [log (1+ (I/P) * P)]/ [log (1+ I/P)] where N is the number of years,
I is the total interest paid, and P is the principal amount.
In this case, N = [log (1+ (1090/5700) * 5700)]log (1+ 1090/5700)] = 6.57 years.
A7: The answer of principal loan is $3,883.
The formula for calculating this is: P = I/(1+R*T) where P is the principal,
I is the total interest, R is the rate of interest, and T is the term of the loan.
In this case, P = 516/(1+0.08*3) = $3,883.
A8: The answer is current value of the loan $12,272.
The formula for calculating this is: P = I/(R*T)
where P is the current value, I is the total interest, R is the rate of interest, and T is the term of the loan.
In this case, P = 1350/(0.03*4) = $12,272.
A9: The current value of the loan is $9,708.
The formula for calculating this is: P = I/(R*T)
where P is the current value, I is the total interest, R is the rate of interest, and T is the term of the loan.
In this case, P = 11,500/ (0.07*5) = $9,708.
A10: You will collect $904 after 11 months.
The formula for calculating this is: P (1 + R*T)
where P is the principal amount, R is the rate of interest, and T is the time period.
In this case, P (1 + 0.44*11) = $904.
A11: The initial deposit will be $3,719.
The formula for calculating this is: P = B/ (1 + R*T)
where P is the initial deposit, B is the balance, R is the rate of interest, and T is the time period.
In this case, P = 8,000/ (1 + 0.62*4) = $3,719.
A12: The amount of money will be $5,127.
The formula for calculating this is: P (1 + R*T)
where P is the principal amount, R is the rate of interest, and T is the time period.
In this case, P (1 + 1.12*6) = $5,127.
A13: The rate of interest for Linda is 8.64%.
The formula for calculating this is: R = [P(1+R*T)-P]/(P*T)
where P is the principal amount, R is the rate of interest, and T is the time period.
In this case, R = [2500(1+R*20)-2500]/(2500*20) = 0.0864, or 8.64%.
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difference between loan reviews and loan
workouts.
please answer this in a table
Loan reviews and loan workouts are two distinct processes in the lending industry.
Loan reviews involve evaluating a borrower's financial standing to determine their creditworthiness and ability to repay the loan. It is primarily focused on identifying potential risks associated with a loan and ensuring compliance with lending policies and procedures. On the other hand, loan workouts involve finding mutually agreeable solutions to help the borrower meet their financial obligations while minimizing the lender's losses.
This process may involve renegotiating the interest rate, extending the loan term, or reducing the principal balance. Loan workouts are a reactive measure taken by lenders to address borrowers' financial difficulties and avoid foreclosure.
See the attachment for the table.
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Cheeseburger and Taco Company purchases 12,885 boxes of cheese each year. It costs $25 to place and ship each order and $7.01 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.
What is the annual carrying costs of post card inventory.
Round the answer to two decimals.
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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Think of a product or service that you use regularly and describe what it is. Consider if you were an entrepreneur just starting up your own business to develop and sell that product. How would you go
The product that I use regularly is my smartphone.If I were an entrepreneur starting up my own business to develop and sell smartphones, I would first need to do market research to determine what features and specifications consumers are looking for in a smartphone.
It also allows me to access the internet, take pictures and videos, listen to music, and use a variety of other apps for productivity, entertainment, and more.
I would also need to analyze the competition to determine how I can differentiate my product from others on the market. Next, I would need to find a manufacturer and secure funding for the development and production of the smartphone. I would also need to develop a marketing strategy to promote the product and attract customers. Finally, I would need to focus on providing excellent customer service to ensure customer satisfaction and encourage repeat business.
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A project requires an initial investment of EUR 10 000 and has a discount rate of 11%. It generates cash flows of EUR 5 000 one year from now, EUR 5 500 two years from now, and EUR 7 000 three years from now. What is the NPV of the project?
EUR 3 983.85. is the NPV of the project.
The NPV (Net Present Value) of a project is the sum of the present values of all the expected cash flows from the project. To calculate the NPV, we need to use the following formula:
NPV = CF1 / (1 + r)^1 + CF2 / (1 + r)^2 + CF3 / (1 + r)^3 + ... + CFn / (1 + r)^n
Where CF1, CF2, CF3, ... , CFn are the expected cash flows in year 1, year 2, year 3, ... , year n, and r is the discount rate.
In this case, the initial investment is EUR 10 000, the discount rate is 11%, and the expected cash flows are EUR 5 000 one year from now, EUR 5 500 two years from now, and EUR 7 000 three years from now. Therefore, we can plug these values into the formula and calculate the NPV:
NPV = -10 000 + 5 000 / (1 + 0.11)^1 + 5 500 / (1 + 0.11)^2 + 7 000 / (1 + 0.11)^3
NPV = -10 000 + 4 504.50 + 4 469.61 + 5 009.74
NPV = EUR 3 983.85
Therefore, the NPV of the project is EUR 3 983.85.
In conclusion, the NPV is a popular method for evaluating investment opportunities, as it provides a comprehensive assessment of the profitability of an investment, taking into account both the initial cost and the expected future cash flows. However, it's important to use a realistic discount rate and cash flow projections to ensure accurate results.
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Match the different stages of the consumer buying process with the related scenarios where advertising helps with the stage.
search for information
comparative evaluation
choice and purchase
post-purchase evaluation
Ali reaches an area where there are many
restaurants, and one has ads displayed
in their parking lots.
arrowRight
Ali thinks about the last time he ate at a
particular restaurant. It was a bad
experience, and he’d decided he would
try a different restaurant next time.
arrowRight
Ali goes into a restaurant and checks out
the different dishes available on the menu
and orders his food.
arrowRight
Ali sees an ad showing that a restaurant
near his house serves the kind of tacos
he likes.
arrowRight
The different stages of the consumer buying process with the related scenarios where advertising helps with the stage are Ali sees an ad showing that a restaurant near his house serves the kind of tacos, he likes it is search for information.
Ali reaches an area where there are many restaurants, and one has ads displayed in their parking lots. It is comparative evaluations.
Ali goes into a restaurant and checks out the different dishes available on the menu and orders his food. It is choice and purchase.
Ali thinks about the last time he ate at a particular restaurant. It was a bad experience, and he’d decided he would try a different restaurant next time. It is post-purchase evaluation.
What is consumer buying process?
Comparative analysis aids decision-makers in choosing the best choice from a range of options in the business world. Business executives must decide on major expenditures, hiring options, and marketing plans. Comparative research techniques contrast the advantages and disadvantages of each potential option.
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Altair,Inc., gathered the following data from its accounting records for the year ended December 31, 2006:
Sales $750,000
Gain on sale of investments 5,000
Cost of goods sold 450,000
Depreciation expense 25,000
Other operating expenses 198,000
Loss on sale of plant assets 2,000
Income tax expenses 24,000
Net income 56,000
Increases (decreases) in selected account balances:
Cash $ 7,000
Accounts receivable 80,000
Inventory (35,000)
Prepaid expenses 2,000
Accounts payable 75,000
Accrued liabilities (10,000)
Income taxes payable 8,000
Prepare the operating activities section of Altair's 2006 statement of cash flows using BOTH the direct method and the indirect method.
Both the direct and indirect methods result in the same net cash provided by operating activities of $29,000.
Direct Method:
Cash received from customers = Sales - Increase in accounts receivable
= $750,000 - $80,000
= $670,000
Cash paid for merchandise = Cost of goods sold + Decrease in inventory - Increase in accounts payable
= $450,000 + $35,000 - $75,000
= $410,000
Cash paid for operating expenses = Other operating expenses + Depreciation expense + Increase in prepaid expenses + Decrease in accrued liabilities
= $198,000 + $25,000 + $2,000 - $10,000
= $215,000
Cash paid for income taxes = Income tax expenses - Increase in income taxes payable
= $24,000 - $8,000
= $16,000
Net cash provided by operating activities = Cash received from customers - Cash paid for merchandise - Cash paid for operating expenses - Cash paid for income taxes
= $670,000 - $410,000 - $215,000 - $16,000
= $29,000
Indirect Method:
Net income = $56,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense = $25,000
Loss on sale of plant assets = $2,000
Gain on sale of investments = ($5,000)
Decrease in inventory = $35,000
Increase in accounts receivable = ($80,000)
Increase in prepaid expenses = ($2,000)
Increase in accounts payable = $75,000
Decrease in accrued liabilities = ($10,000)
Increase in income taxes payable = $8,000
Net cash provided by operating activities = $56,000 + $25,000 + $2,000 - $5,000 + $35,000 - $80,000 - $2,000 + $75,000 - $10,000 + $8,000
= $29,000
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AP 13-1 (Integration Example) Assume the following with respect to an individual shareholder of a wholly owned CCPC: • The corporation’s only income is active business income of $340,000, all of which quali-fes for the small business deduction The corporation has no GRIP and therefore all of the taxable dividends it pays will be non-eligible dividends. • The individual’s marginal federal tax rate is 33% and his marginal provincial tax rate is 15%. • The provincial dividend tax credit on non-eligible dividends is equal to 34% of the gross up. • The combined federal and provincial corporate tax rate on business income is 12.0%. Required: Indicate, using these assumptions, whether integration is working perfectly and whether it is benefcial to use a corporation to earn the company’s active business income in this instance. Show all supporting calculations, including both the income tax comparison and after-tax return comparison of (1) the individual earning the income directly without the use of a corporation and (2) earning the income through a corporation and distributing all of the after-tax corporate income as a non-eligible dividend to the sole individual shareholder. If integration is not working properly, briefy explain why.
Using the given assumptions, integration is not working perfectly as the after-tax return is lower when earning the income through a corporation compared to earning the income directly without the use of a corporation.
To determine whether integration is working perfectly and whether it is beneficial to use a corporation to earn the company's active business income in this instance, we need to compare the income tax and after-tax return of earning the income directly without the use of a corporation versus earning the income through a corporation and distributing all of the after-tax corporate income as a non-eligible dividend to the sole individual shareholder.
1) Earning the income directly without the use of a corporation:
The individual's marginal federal tax rate is 33% and his marginal provincial tax rate is 15%, so the combined tax rate is 48%.
The individual's income tax on $340,000 would be $163,200 ($340,000 x 48%).
The individual's after-tax return would be $176,800 ($340,000 - $163,200).
2) Earning the income through a corporation and distributing all of the after-tax corporate income as a non-eligible dividend to the sole individual shareholder:
The combined federal and provincial corporate tax rate on business income is 12.0%, so the corporation's income tax on $340,000 would be $40,800 ($340,000 x 12.0%).
The corporation's after-tax income would be $299,200 ($340,000 - $40,800).
The individual would receive a non-eligible dividend of $299,200.
The gross-up on the non-eligible dividend is 15%, so the individual's taxable income would be $344,080 ($299,200 x 1.15).
The individual's income tax on the grossed-up dividend would be $165,158.40 ($344,080 x 48%).
The provincial dividend tax credit on non-eligible dividends is equal to 34% of the gross up, so the individual would receive a tax credit of $14,463.60 ($299,200 x 15% x 34%).
The individual's net income tax on the dividend would be $150,694.80 ($165,158.40 - $14,463.60).
The individual's after-tax return would be $148,505.20 ($299,200 - $150,694.80).
Based on these calculations, it appears that integration is not working perfectly in this instance, as the individual's after-tax return is lower when earning the income through a corporation and distributing all of the after-tax corporate income as a non-eligible dividend ($148,505.20) compared to earning the income directly without the use of a corporation ($176,800). This is due to the fact that the individual's marginal tax rate on the non-eligible dividend is higher than the combined corporate tax rate, and the provincial dividend tax credit is not sufficient to offset this difference.
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3-8. Sailright Inc. manufactures and sells sailboards. Management believes that the price elasticity of demand is -3.0. Currently, boards are priced at $500 and the
quantity demanded is 10,000 per year.
a. If the price is increased to 5606, how many sailboards will the company be able
to sell each year?
b. How much will total revenue change as a result of the price increase?
3-9 Demand for a softback managerial economics text is given by Q=20,000-300P. The book is initially priced at $30.
a. Compute the point price elasticity of demand at P=$30
b. If the objective is to increase total revenue, should the price be increased or decreased? Explain.
c. Compute the arc price elasticity for a price decrease from $30 to $20.
d. Compute the arc price elasticity for a price decrease from $20 to $15.
3-8. Based on the provided formation, a. the company will be able to sell 8,200 sailboards each year at the new price of $560 and b. the total revenue will decrease by $300,000 as a result of the price increase. 3- 9 a. The point price elasticity of demand at P=$30 is E = -0.818. b. If the objective is to increase total revenue, the price should be increased. c. The arc price elasticity for a price decrease from $30 to $20 is E = 0.6. d. The arc price elasticity for a price decrease from $20 to $15 is E = 0.467.
3-8 a.The price elasticity of demand is given by the formula:
E = (ΔQ/ΔP) * (P/Q)
Where E is the price elasticity of demand, ΔQ is the change in quantity demanded, ΔP is the change in price, P is the initial price, and Q is the initial quantity demanded.
We can rearrange the formula to solve for the change in quantity demanded:
ΔQ = (E * ΔP * Q)/P
Plugging in the given values:
ΔQ = (-3.0 * ($560 - $500) * 10,000)/$500
ΔQ = -1,800
So the new quantity demanded will be:
Q = 10,000 - 1,800 = 8,200
Therefore, the company will be able to sell 8,200 sailboards each year at the new price of $560.
b. The change in total revenue is given by the formula:
ΔTR = ΔP * Q + P * ΔQ
Plugging in the given values:
ΔTR = ($560 - $500) * 10,000 + $500 * (-1,800)
ΔTR = $600,000 - $900,000
ΔTR = -$300,000
So the total revenue will decrease by $300,000 as a result of the price increase.
3-9. The point price elasticity of demand is given by the formula:
E = (ΔQ/ΔP) * (P/Q)
At P = $30, the quantity demanded is:
Q = 20,000 - 300 * $30 = 11,000
Plugging in the given values:
E = (ΔQ/ΔP) * ($30/11,000)
Since we are calculating the point price elasticity of demand at P = $30, ΔQ and ΔP are both infinitesimally small. Therefore, we can use the derivative of the demand function with respect to price to find the point price elasticity of demand:
E = -(dQ/dP) * (P/Q)
E = -(-300) * ($30/11,000)
E = -0.818
b. Since the point price elasticity of demand is negative and greater than -1, demand is inelastic at P = $30. This means that an increase in price will lead to an increase in total revenue, and a decrease in price will lead to a decrease in total revenue. Therefore, if the objective is to increase total revenue, the price should be increased.
c. The arc price elasticity of demand is given by the formula:
E = (ΔQ/ΔP) * ((P1 + P2)/(Q1 + Q2))
Where P1 and P2 are the initial and final prices, and Q1 and Q2 are the initial and final quantities demanded.
Plugging in the given values:
E = ((11,000 - 14,000)/($20 - $30)) * (($30 + $20)/(11,000 + 14,000))
E = (-3,000/(-$10)) * ($50/25,000)
E = 0.6
d. Plugging in the new values:
E = ((14,000 - 16,000)/($15 - $20)) * (($20 + $15)/(14,000 + 16,000))
E = (-2,000/(-$5)) * ($35/30,000)
E = 0.467
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Why is it important to check that the capacity, repayment
comfortability and loan amount required are all aligned?
It is important to check that the capacity, repayment comfortability, and loan amount required are all aligned because it ensures that the borrower is able to repay the loan without any financial difficulties.
Firstly, the capacity refers to the borrower's ability to repay the loan. It is important to check the borrower's capacity to ensure that they have sufficient income to cover the loan repayments.
Secondly, the repayment comfortability refers to the borrower's ability to make the loan repayments without affecting their overall financial well-being.
It is important to check the borrower's repayment comfortability to ensure that they are able to comfortably make the loan repayments without any financial stress.
Lastly, the loan amount required refers to the amount of money that the borrower needs to borrow. It is important to check the loan amount required to ensure that the borrower is not borrowing more money than they need or can afford to repay.
In conclusion, checking that the capacity, repayment comfortability, and loan amount required are all aligned is important because it ensures that the borrower is able to repay the loan without any financial difficulties.
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Interpret TWO (2) dimensions of external environment about how
they affect HR practices.
The external environment has two main dimensions that can significantly affect HR practices are economic environment and social environment.
The external environment has two main dimensions that can significantly affect HR practices.
The first dimension is the external economic environment, which includes factors such as inflation, interest rates, and employment levels. These factors can impact an organization's recruiting and staffing strategies, as well as their compensation plans.
The second dimension is the external social environment, which includes factors such as societal values, trends, and laws. This can affect how HR practices, such as job descriptions, workplace policies, and workplace cultures, are structured and implemented.
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BID ASK Time Trader Size Price Price Size Trader Time 09:55 HSU 300 3.30 3.60 200 CUH 09:15 10:09 CTU 200 3.10 3.90 500 HKU 09:30 09:45 PLU 600 2.85 4.10 300 MPU 10:00 10:05 UST 500 2.65 4.25 100 BUH 09:58 No.# Time Trades or Orders 1 10:15 2 10:20 3 10:27 4 10:30 5 10:35 A market order to buy 300 shares A market order to sell 200 shares A limit order to buy 500 shares at $3.00 A limit order to sell 300 shares at $3.90 The limit order to buy at $3.10 was all cancelled A market order to sell 300 shares. This triggered a stop loss sell order of 300 shares at $3.00 A limit order to buy 500 shares at $3.20 6 10:38 7 10:38 8 10:39
(A) If you execute a market buy order of 400 shares of ABC, how much in total will you pay (ignore all other costs)? What is the average price per share you buy? What are the best market price and quantity immediately following your action?
(B) Suppose you have purchased 300 shares of ABC previously at a cost of $3.00 per share. If the maximum amount you are willing to lose for this investment is 20%, suggest a kind of order you will use for this purpose, with reference to the current market condition as depicted in the table above. (Give the type of order: market/limit/stop loss; buy/sell; and price)
(C) Suppose you have short sold 200 shares of ABC previously at a cost price of $4.60 per share. If you intend to have a minimum return of 20% for this investment, suggest a kind of order you will use for this purpose, with reference to the current market condition as depicted in the table above. (Give the type of order: market/limit/stop loss; buy/sell; and price)
(D) Suppose right now, one of your clients requests to buy 800 shares of ABC "by the end of the trading day". There are two possible strategies you may take to handle this order: use a market order or use a limit order. Explain a. How would you use market order in this case? What will be the result? What are the pros and cons of using market order in this case. b. How would you use limit order in this case? What will be the result? What are the pros and cons of using limit order in this case.
A) The average price per share your buy is $3.20
B) You can use a stop loss sell order at $2.40.
C) You can use a limit buy order at $3.68.
D) You can use either a market order or a also can limit any order.
(A) If you execute a market buy order of 400 shares of ABC, you will pay a total of $1,280 (200 shares at $3.60 and 200 shares at $3.90). The average price per share you buy is $3.20 ($1,280/400 shares).
The best market price immediately following your action is $3.90 for 300 shares (from the limit order by MPU at 10:00) and the best quantity is 300 shares.
(B) If you have purchased 300 shares of ABC previously at a cost of $3.00 per share and the maximum amount you are willing to lose for this investment is 20%, you can use a stop loss sell order at $2.40 (20% below $3.00) to protect your investment.
This will ensure that if the price of ABC drops to $2.40 or below, your shares will be automatically sold at the best available price, minimizing your loss.
(C) If you have short sold 200 shares of ABC previously at a cost price of $4.60 per share and you intend to have a minimum return of 20% for this investment, you can use a limit buy order at $3.68 (20% below $4.60) to cover your short position.
This will ensure that if the price of ABC drops to $3.68 or below, you will buy back the shares at the best available price, locking in your profit.
(D) If one of your clients requests to buy 800 shares of ABC "by the end of the trading day", you can use either a market order or a limit order.
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1 Started in business with £10,500 cash. 2 Put £9,000 of the cash into a bank account. 3 Bought goods for cash £550. 4 Bought goods on time from: T. Dry £800; F. Hood £930; M. Smith £160; G. Low £510. 5 Bought stationery on time from Buttons Ltd £89. 6 Sold goods on time to: R. Tong £170; L. Fish £240; M. Singh £326; A. Tom £204. 8 Paid rent by cheque £220. 10 Bought fixtures on time from Chiefs Ltd £610. 11 Paid salaries in cash £790. 14 Returned goods to: F. Hood £30; M. Smith £42. 15 Bought van by cheque £6,500. 16 Received loan from B. Barclay by cheque £2,000. 18 Goods returned to us by: R. Tong £5; M. Singh £20. 21 Cash sales £145. 24 Sold goods on time to: L. Fish £130; A. Tom £410; R. Pleat £158. We paid the following by cheque: F. Hood £900; M. Smith £118. 29 Received cheques from: R. Pleat £158; L. Fish £370. 30 Received a further loan from B. Barclay by cash £500. 30 Received £614 cash from A. Tom. 26
The transactions listed in the question involve a variety of business activities, including starting a business, putting cash into a bank account, buying goods and stationery, selling goods, paying rent and salaries, returning goods, buying a van, receiving loans, and receiving cash and cheques from customers.
Each of these transactions has an impact on the business's financial position and should be recorded in the appropriate accounts.
For example, the transaction "Bought van by cheque £6,500" would be recorded as a debit to the "Vehicles" account and a credit to the "Bank" account. This reflects the fact that the business has acquired a new asset (the van) and has paid for it with funds from the bank account.
Similarly, the transaction "Received loan from B. Barclay by cheque £2,000" would be recorded as a debit to the "Bank" account and a credit to the "Loans Payable" account. This reflects the fact that the business has received cash from the loan and now has a liability to repay the loan in the future. By recording each of these transactions in the appropriate accounts, the business can keep track of its financial position and make informed decisions about its operations.
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Klingon Enterprises is considering opening a retail store selling classic weapons from history. Gowron, the CEO of the company has estimated it will cost $500K today to open the store today, and the best guess is after-tax cash flows will be $95K next year, and this is expected to grow each year after. The store has a lease of 7 years.
a) If the appropriate discount rate for this project is 12.0%, what level of annual growth will the business need to break-even on an NPV basis? Assume cash flows occur at the end of each year. (Construct a model on Excel and use Goal Seek.)
b) Suppose we make a more realistic assumption that the annual cash flows occur at the middle of each year, how does this fact change your answer to a)?
a) To break-even on an NPV basis, the NPV of the project needs to be equal to zero. We can use the Goal Seek function in Excel to find the level of annual growth that will make the NPV equal to zero.
b) If we assume that the annual cash flows occur at the middle of each year, we need to adjust the discount rate to reflect this fact. The adjusted discount rate is given by:
Adjusted discount rate = (1 + 12.0%)^(1/2) - 1 = 5.83%
a) To find level of annual growth, first, we need to construct a model on Excel with the following inputs:
- Initial investment: -$500K
- Discount rate: 12.0%
- Cash flows: $95K in year 1, and growing at an annual rate of x% for the next 6 years
- NPV: The sum of the present value of the cash flows, discounted at 12.0%
Next, we can use the Goal Seek function to find the value of x that will make the NPV equal to zero. To do this, we need to:
1. Click on the Data tab in Excel
2. Click on the What-If Analysis button
3. Click on Goal Seek
4. Set the NPV cell equal to zero
5. Set the annual growth rate cell as the changing cell
6. Click on OK
The Goal Seek function will find the value of x that will make the NPV equal to zero. This is the level of annual growth that the business needs to break-even on an NPV basis.
b) If we assume that the annual cash flows occur at the middle of each year, we need to adjust the discount rate to reflect this fact. The adjusted discount rate is given by:
Adjusted discount rate = (1 + 12.0%)^(1/2) - 1 = 5.83%
We can then use the Goal Seek function in Excel to find the level of annual growth that will make the NPV equal to zero, using the adjusted discount rate. The steps are the same as in part a), except that we need to use the adjusted discount rate in the NPV calculation. The Goal Seek function will find the value of x that will make the NPV equal to zero, using the adjusted discount rate. This is the level of annual growth that the business needs to break-even on an NPV basis, assuming that the annual cash flows occur at the middle of each year.
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18. Flax Corp. Uses the direct method to prepare its statement of cash flows. Flax's trial balances at December 31, year 2 and year 1 are as follows:
Year 1:
Debits
Cash: $32,000
Accounts receivable: $30,000
Inventory: $47,000
Property, plant, & equipment: $95,000
Unamortized bond discount: $5,000
Cost of goods sold: $380,000
Selling expenses: $172,000
General and administrative expenses: $151,300
Interest expense: $2,600
Income tax expense: $61,200
Total Debits: $976,100
Credits
Allowance for uncollectible accounts: $1,100
Accumulated depreciation: $15,000
Trade accounts payable: $17,500
Income taxes payable: $27,100
Deferred income taxes: $4,600
8% callable bonds payable: $20,000
Common stock: $40,000
Additional paid-in capital: $7,500
Retained earnings: $64,600
Sales: $778,700
Total Credits: $976,100
Year 2:
Debits
Cash: $35,000
Accounts receivable: $33,000
Inventory: $31,000
Property, plant, & equipment: $100,000
Unamortized bond discount: $4,500
Cost of goods sold: $250,000
Selling expenses: $141,500
General and administrative expenses: $137,000
Interest expense: $4,300
Income tax expense: $20,400
Total Debits: $756,700
Credits
Allowance for uncollectible accounts: $1,300
Accumulated depreciation: $16,500
Trade accounts payable: $25,000
Income taxes payable: $21,000
Deferred income taxes: $5,300
8% callable bonds payable: $45,000
Common stock: $50,000
Additional paid-in capital: $9,100
Retained earnings: $44,700
Sales: $538,800
Total Credits: $756,700
-Flax purchased $5,000 in equipment during year 2.
-Flax allocated one third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. There were no write-offs of accounts receivable during year 2.
What amount should Flax report in its statement of cash flows
for the year ended December 31 , year 2, for cash paid for goods to be sold?
a. $258,500
b. $257,500
c. $242,500
d. $226,500
From the income statement given, the final balance on the statement of cash flow is $257,500
What amount should Flax report in its statement of cash flowsTo calculate the cash paid for goods to be sold, we need to start with cost of goods sold from the income statement and make adjustments for changes in inventory and accounts payable.
Starting with cost of goods sold for year 2 of $250,000, we need to adjust for the increase in inventory, which is $31,000 - $47,000 = -$16,000. This means inventory decreased by $16,000, so we need to add it to cost of goods sold to get the cost of goods sold for cash purposes, which is $250,000 + $16,000 = $266,000.
Next, we need to adjust for the change in accounts payable, which is $25,000 - $17,500 = $7,500. This means accounts payable increased by $7,500, so we need to subtract it from the cost of goods sold for cash purposes, which is $266,000 - $7,500 = $258,500.
Finally, we need to subtract the $1,000 increase in accounts payable due to the equipment purchase, which gives us the final answer of $257,500.
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Derek borrows $318,624.00 to buy a house. He has a 30-year
mortgage with a rate of 5.26%. After making 112.00 payments, how
much does he owe on the mortgage
Derek owes $293,872.96 on the mortgage after making 112 payments.
To calculate this, we first need to find the monthly payment using the formula P = L[c(1 + c)^n]/[(1 + c)^n - 1], where P is the monthly payment, L is the loan amount, c is the monthly interest rate, and n is the number of monthly payments.
Plugging in the given values, we get:
P = 318624[0.00526(1 + 0.00526)^360]/[(1 + 0.00526)^360 - 1] = $1755.12
Next, we need to find the remaining balance after 112 payments. We can do this by using the formula B = L(1 + c)^n - P[(1 + c)^n - 1]/c, where B is the remaining balance, L is the loan amount, c is the monthly interest rate, n is the number of monthly payments, and P is the monthly payment.
Plugging in the given values, we get:
B = 318624(1 + 0.00526)^112 - 1755.12[(1 + 0.00526)^112 - 1]/0.00526 = $293,872.96
Therefore, Derek owes $293,872.96 on the mortgage after making 112 payments.
It is important to consider the investment aspect of purchasing a home. While Derek is paying off his mortgage, he is also building equity in his home, which can be seen as a form of investment. As the value of his home potentially increases over time, Derek may be able to sell it for a profit in the future.
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1.The company cost of capital is the appropriate discount rate for a firm's ______
A. Value
B. Average-risk projects
C. High-risk projects
D. Estimated-risk projects
2. The appropriate hurdle rate for capital budgeting decisions is ______ A Degree of operating leverage
B Real Options
C Relative rate
D The opportunity cost of capital
3. Each project should be evaluated at its own opportunity cost of capital. The true cost of capital depends on the use to which the capital is put. A True
B False
4. The company's cost of capital is the cost of debt of the firm. A True
B False
5. It is generally more accurate to estimate an "industry beta" for a portfolio of companies in the same industry than to estimate beta for a single company in that industry. A. True
B. False
1. The correct answer is B - Medium risk project.
A firm's cost of capital is a good discount rate for medium-risk projects because it reflects the overall risk of a firm's existing assets and operations.
2. The correct answer is D - It is the opportunity cost of capital.
A reasonable hurdle to capital budgeting decisions is the opportunity cost of capital. H. Returns obtained on investments with similar risk.
3. The correct answer is A - truth.
Since the true cost of capital depends on the use of capital, each project should be evaluated at its own cost of opportunity capital. Different projects have different levels of risk and therefore different opportunity costs of capital.
4. The correct answer is B - Incorrect.
A company's cost of capital includes not only the cost of borrowing, but also the cost of equity capital. Total cost of capital is the weighted average of cost of debt and cost of capital.
5. The correct answer is A - truth.
Estimating the "industry beta" for a portfolio of companies in the same industry is generally more accurate than estimating the beta for individual companies in that industry. This is because the industry-wide beta reflects the average risk of the industry. to the specific risks of individual companies.
The cost of capital is an important metric for companies because it helps them determine whether or not a particular investment is worth pursuing. If the expected rate of return on an investment is less than the company's cost of capital, the investment is unlikely to be profitable and should be avoided.
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How much of the total did Raul contribute himself
1. The total balance in the account after 40 years would be $192,520.
What is balance?Balance is a fundamental concept in a wide range of disciplines, including physics, biology, finance, and psychology. It refers to the ability to maintain equilibrium or stability, and the ability to adapt and adjust when faced with external challenges. Balance is achieved by creating internal stability and harmony, and by avoiding extremes and unnecessary risks. In physical terms, balance is achieved when the forces acting on a system are equal and opposite.
2. Raul contributed $120,000 himself.
3. Raul made $92,520 through compound interest in the savings account.
4. Raul could have increased the total amount of money he made over the 40 years by investing his money instead of keeping it in a savings account. Investing has the potential to earn higher returns than a savings account and has the potential to increase the total amount of money made over the 40 years.
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Complete Question:
Raul Raul is a saver. He sets aside $100 per month during his career of 40 years to prepare for retirement. He does not like the idea of investing because he prefers to minimize his risk as much as possible, so he puts his money in a savings account which earns 1.596 interest per year 1. What is the total balance in 2. How much of the total did 3. How much money did Raul the account after 40 years? Raul contribute himself? make through compound interest in this savings account? N 4. Identify one way Raul could have increased the total amount of money he made over the 40 years. Explain your reasoning.
The risk-free rate is 5% and given recent levels of Risk Aversion and Volatility (approximately 12%), the Market return is expected to be 10%. For a stock with Beta of 0.8, what would be the expected return as predicted by the Security Market Line?
The Security Market Line (SML) is a graphical representation of the relationship between expected return of a stock and its beta. The expected return of a stock can be calculated by adding the risk-free rate to the product of market return and the stock's beta. In this case, the risk-free rate is 5%, the market return is 10% and the beta of the stock is 0.8. Therefore, the expected return of the stock as predicted by the SML is 8%.
The SML is used to determine whether a stock is undervalued or overvalued. It does this by comparing the expected return of the stock as predicted by the SML with the actual return of the stock in the market. If the actual return of the stock is higher than the expected return predicted by the SML, then the stock is overvalued, and if the actual return of the stock is lower than the expected return predicted by the SML, then the stock is undervalued.
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A Corporation reported net income of $20,000 for 2015. The income statement revealed
Sales of $200,000;
Gross profit of $104,000;
Selling and administrative costs of $68,000;
Interest expense of $4,000;
Income taxes of $12,000
The selling and administrative expenses included $5,000 for depreciation.
No equipment was sold during the year. Equipment purchases were made with cash. Prepaid insurance included in the balance sheet related to administrative costs.
All accounts payable included in the balance sheet relate to inventory purchases.
The change in retained earnings is attributable to net income and dividends.
The increase in common stock and additional paid-in capital is due to issuing additional shares for cash.
Comparative Balance Sheets for a Company follow.
TASKS
1. Using the indirect method, prepare a Statement of Cash Flows
2. Prepare Net Cash Flows only from Operating Activities under the Direct method
1. Using the indirect method, prepare a Statement of Cash Flows:
Cash flows from operating activities:
Net income $20,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 5,000
Decrease in accounts payable (related to inventory purchases) -
Increase in prepaid insurance -
Increase in retained earnings (due to net income and dividends) -
Increase in common stock and additional paid-in capital (due to issuing additional shares for cash) -
Net cash provided by operating activities 15,000
2. Prepare Net Cash Flows only from Operating Activities under the Direct method:
Net cash provided by operating activities 15,000
Cash receipts from customers 200,000
Cash paid to suppliers (for inventory purchases) -
Cash paid to employees (for salaries, wages, etc.) -
Cash paid for interest expense - 4,000
Cash paid for income taxes - 12,000
Net cash provided by operating activities 15,000
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A three-piece high school rock band practiced for at least one hour most days of the week. Its studio was the cramped one-car garage of the drummer’s home. Ultimately, several neighbors offered to pay the rent at a local mini-warehouse as a practice room for a year if the group agreed to stop practicing at the drummer’s home. As the warehouse was much larger, the players agreed. Did the neighbors receive consideration? Did the rock band receive consideration? Did the rock band receive a benefit, endure a detriment, both, or neither? Was the contract enforceable?
Answer:
In this scenario, the neighbors offered to pay the rent for a local mini-warehouse as a practice room for a year in exchange for the rock band agreeing to stop practicing at the drummer's home. This constitutes an offer for a contract. The rock band agreed to the offer, which forms the basis of a valid contract.
The neighbors received consideration in this contract by agreeing to pay the rent for the mini-warehouse for a year. The rock band received consideration in the form of a new practice space, which was much larger than the cramped garage they were using before.
Additionally, the rock band received a benefit from the contract by getting access to a larger and more suitable practice space. On the other hand, they endured a detriment by agreeing to stop practicing at the drummer's home.
Therefore, the rock band received both a benefit and endured a detriment. The neighbors received consideration, but did not receive a benefit or endure a detriment.
As long as the essential elements of a contract are present (offer, acceptance, consideration, and a lawful purpose), the contract is generally enforceable. In this case, the offer, acceptance, and consideration are present, and the purpose of the contract is lawful. Therefore, the contract is enforceable.
Explanation:
The rock band agreed to stop practicing at the drummer's home in exchange for the neighbors paying the rent for a nearby mini-warehouse for a year.
This transaction proposition is being made. The rock band's acceptance of the offer established a binding contract.
What is meant by a warehouse?A warehouse is a structure where items are stored. Manufacturers, importers, exporters, wholesalers, transportation companies, customs, etc. all use warehouses. They are often big, basic buildings that can be found in industrial parks on the outskirts of towns, cities, or villages.
Docks are typically found in warehouses where trucks can load and unload cargo. On occasion, warehouses are built to enable direct freight loading and unloading from transport methods including trains, ships, and airplanes. They commonly have cranes and forklifts for moving the goods, which are frequently loaded into pallet racks and put on ISO standard pallets. A warehouse might be referred to as a "godown" in India and Hong Kong.
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What explains the spread between the interest rate on a 20-year Treasury bond and a 2-year Treasury note? What explains the difference between a 10-year corporate bond (rated BBB) and a 5-year municipal bond (rated A)?
If a yield curve looks like the ones shown here, what is the market predicting about the movement of future short-term interest rates? What might the yield curve indicate about the market’s predictions concerning the inflation rate in the future? Give a separate answer for each yield curve.
The spread between the interest rate on a 20-year Treasury bond and a 2-year Treasury note can be explained by the difference in maturity dates. The longer the maturity date, the higher the interest rate.
This is because investors are taking on more risk by holding onto the bond for a longer period of time. Therefore, they require a higher return for their investment.
The difference between a 10-year corporate bond (rated BBB) and a 5-year municipal bond (rated A) can be explained by the difference in credit ratings. A bond with a higher credit rating is considered to be less risky, and therefore, will have a lower interest rate. A bond with a lower credit rating is considered to be riskier, and therefore, will have a higher interest rate.
If a yield curve looks like the one shown in the first image, the market is predicting that future short-term interest rates will rise. This is because the yield curve is upward sloping, indicating that longer-term bonds have higher interest rates than shorter-term bonds.
If a yield curve looks like the one shown in the second image, the market is predicting that future short-term interest rates will fall. This is because the yield curve is downward sloping, indicating that longer-term bonds have lower interest rates than shorter-term bonds.
The yield curve can also indicate the market's predictions concerning the inflation rate in the future. If the yield curve is upward sloping, the market is predicting that inflation will rise in the future. If the yield curve is downward sloping, the market is predicting that inflation will fall in the future.
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If a lender makes a simple loan of $700 for 5 years and charges 3%, then the amount that the lender receive at maturity is $__ (Round your response tothe nearest two decimal place). If a lender makes a simple loan of $1500 for one year and charges $130 interest, then the simple interest rate on that loan is__ % (Round your response to the nearest whole number) If a borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, the simple interest on this loan is A. 6.5% B. 6.0% C. 5.0% D. 65%
The first part of the question asks for the amount that the lender will receive at maturity for a simple loan of $700 for 5 years at 3% interest.
To calculate this, we can use the formula for simple interest:
I = Prt
Where I is the interest, P is the principal, r is the interest rate, and t is the time in years. Plugging in the given values:
I = (700)(0.03)(5) = 105
The amount that the lender will receive at maturity is the principal plus the interest, so:
A = P + I = 700 + 105 = $805
Therefore, the lender will receive $805 at maturity.
The second part of the question asks for the simple interest rate on a loan of $1500 for one year with $130 interest. We can use the same formula and rearrange it to solve for the interest rate:
r = I / (Pt) = 130 / (1500)(1) = 0.08667
Converting this to a percentage and rounding to the nearest whole number:
r = 0.08667 * 100 = 8.67 ≈ 9%
Therefore, the simple interest rate on that loan is 9%.
The third part of the question asks for the simple interest on a loan of $100 for one year with a repayment of $106.50. The interest is the difference between the repayment amount and the principal:
I = A - P = 106.50 - 100 = $6.50
To find the simple interest rate, we can use the same formula and rearrange it to solve for the interest rate:
r = I / (Pt) = 6.50 / (100)(1) = 0.065
Converting this to a percentage:
r = 0.065 * 100 = 6.5%
Therefore, the simple interest on this loan is 6.5%, or answer choice A.
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Flight overbooking is a problem for airlines and passengers of a
flight. What could be 5 possible solutions to overbooked flights in
the airline industry?
Overbooking of flights is a common problem in the airline industry that leads to inconvenience for both the airline and the passengers. The 5 ways to reduce this - accuracy, offer incentives, introduce the bidding, increase the flights and penalty system.
Here are five possible solutions to overbooked flights:
1. Improve the accuracy of forecasting: Airlines can use data analytics to accurately forecast the number of passengers that are likely to show up for a flight. This can help them avoid overbooking flights.
2. Offer incentives for passengers to voluntarily give up their seats: Airlines can offer incentives such as vouchers, upgrades, or refunds to passengers who are willing to give up their seats on overbooked flights.
3. Implement a bidding system: Airlines can implement a bidding system where passengers can bid for seats on overbooked flights. The highest bidders get the seats, while the others are accommodated on alternative flights.
4. Increase the number of flights: Airlines can increase the number of flights on popular routes to accommodate more passengers and avoid overbooking.
5. Implement a penalty system for no-shows: Airlines can implement a penalty system for passengers who don't show up for their flights. This can discourage passengers from booking flights that they are not sure they will take, reducing the likelihood of overbooking.
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The situation of corporate governance in UAE (local
& Federal level). (500 words)
Corporate governance in the UAE is regulated by both local and federal laws.
At the local level, each Emirate has its own laws and regulations that govern the operation of companies within its jurisdiction. These laws are designed to ensure that companies are managed in a way that is consistent with the interests of their shareholders and other stakeholders.
At the federal level, the UAE has a number of laws and regulations that apply to all companies operating within the country. These include the UAE Companies Law, which sets out the requirements for the formation and management of companies, and the UAE Securities and Commodities Authority (SCA) Law, which regulates the operation of the UAE's securities markets.
One of the key principles of corporate governance in the UAE is the requirement for companies to have a board of directors. The board is responsible for overseeing the company's management and ensuring that it operates in the best interests of its shareholders. The UAE Companies Law sets out the requirements for the composition and operation of the board, including the requirement for a minimum of three directors and the need for regular board meetings.
Another important aspect of corporate governance in the UAE is the requirement for companies to have an external auditor. The auditor is responsible for reviewing the company's financial statements and providing an independent opinion on their accuracy. The UAE Companies Law requires all companies to have an auditor, and the SCA Law sets out the requirements for the appointment and operation of auditors.
Overall, the UAE has a strong regulatory framework for corporate governance, with laws and regulations at both the local and federal level designed to ensure that companies are managed in a way that is consistent with the interests of their shareholders and other stakeholders. However, there is always room for improvement, and the UAE authorities are constantly working to strengthen the country's corporate governance framework and ensure that it remains in line with international best practices.
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