Financial accounting is focused on recording and reporting historical financial information, whereas management accounting is focused on providing decision-making information for the future.
Management accounting and financial accounting are two distinct branches of accounting that serve different purposes. The key differences between the two are as follows:
1. Purpose: Management accounting is used by managers to make decisions about the operations of the business, while financial accounting is used to report the financial performance of the company to external parties such as investors and creditors.
2. Scope: Management accounting focuses on internal performance measures, such as cost analysis and budgeting, while financial accounting focuses on external performance measures, such as revenues and profits.
3. Time Frame: Management accounting is forward-looking, using projections and forecasts to make decisions about the future, while financial accounting is backward-looking, reporting on past financial performance.
4. Regulations: Financial accounting is subject to strict regulations and accounting standards, such as GAAP and IFRS, while management accounting is not.
5. Reporting Frequency: Financial accounting reports are typically issued quarterly and annually, while management accounting reports are issued more frequently, often monthly or even weekly.
In conclusion, management accounting and financial accounting are both important aspects of accounting, but they serve different purposes and have different focuses, time frames, regulations, and reporting frequencies.
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In the cash flow approach to managing the health of thecorporate, cash invested in the firm by debt holders and equity holders
A. Is allocated in the firm and the resulting investment returns are distributed to equity holders in priority to debt holders
B. Is only available to purchase current assets such as inventory
C. Is used only to service working capital requirements
D. Is allocated in the firm to obtain a return on investment that can then either be reinvested or distributed to equity and debt holders
The correct answer is D. Is allocated in the firm to obtain a return on investment that can then either be reinvested or distributed to equity and debt holders.
In the cash flow approach to managing the health of the corporate, cash invested in the firm by debt holders and equity holders is used to generate a return on investment. This return can then be reinvested in the firm to generate further returns, or it can be distributed to the equity and debt holders. This approach is designed to ensure that the firm is able to generate sufficient cash flow to meet its financial obligations, including servicing debt and paying dividends to equity holders.
It is important to note that the cash flow approach is not limited to the purchase of current assets or the servicing of working capital requirements. Rather, it is focused on generating returns on investment that can be used to support the ongoing financial health of the firm.
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The Canadian dollar/U.S. dollar spot exchange rate is C$1.68/US$, the Singapore dollar/U.S. dollar spot rate is S$1.25/US$ and the Canadian dollar/Singapore dollar spot rate is C$1.20/S$. If you have US$1,000, the triangular arbitrage profit is equal to US$__________________________
The triangular arbitrage profit is equal to US$ 27.78.
To calculate the triangular arbitrage profit, we need to follow the steps below:
1. Start with US$ 1,000 and convert it into Canadian dollars using the Canadian dollar/U.S. dollar spot exchange rate.
US$ 1,000 x C$ 1.68/US$ = C$ 1,680
2. Next, convert the Canadian dollars into Singapore dollars using the Canadian dollar/Singapore dollar spot rate.
C$ 1,680 x S$ 1.20/C$ = S$ 2,016
3. Finally, convert the Singapore dollars back into U.S. dollars using the Singapore dollar/U.S. dollar spot rate.
S$ 2,016 x US$ 1/S$ 1.25 = US$ 1,612.80
4. The triangular arbitrage profit is the difference between the final amount of U.S. dollars and the initial amount of U.S. dollars.
US$ 1,612.80 - US$ 1,000 = US$ 612.80
5. To find the profit per US$ 1,000, divide the triangular arbitrage profit by the initial amount of U.S. dollars.
US$ 612.80/US$ 1,000 = 0.6128
6. The triangular arbitrage profit is equal to US$ 0.6128 per US$ 1,000 or US$ 27.78 per US$ 45.45 (US$ 1,000/0.6128).
Therefore, the triangular arbitrage profit is equal to US$ 27.78.
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What are some of the organisational mechanisms that might be
considered when developing risk control plans? List seven.
Some of the organizational mechanisms that might be considered when developing risk control plans are: Clear communication, Documentation, risk response planning etc.
Some of the organizational mechanisms that might be considered when developing risk control plans are:
Clear communication: Ensuring that everyone involved in the project is aware of the potential risks and their roles in mitigating them.Risk assessment: Identifying potential risks and determining their likelihood and potential impact.Risk response planning: Developing strategies for reducing or avoiding risks.Monitoring and control: Keeping track of risks and their potential impact, and adjusting plans as necessary.Contingency planning: Developing plans for responding to unforeseen events or emergencies.Training and education: Ensuring that all personnel involved in the project are aware of potential risks and know how to respond to them.Documentation: Keeping detailed records of all risk management activities to help identify patterns and improve future risk management efforts.By implementing these organizational mechanisms, a company can effectively develop and implement a risk control plan to reduce the potential impact of risks on the project.
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"US
Accounting is the best in the world". Discuss whether or not you
agree with this quote, use valid references to support your answer
(no more than 200 words)
The United States has long been known as one of the premier countries in the world for accounting and finance. Its legal and regulatory framework, large population of accountants and business professionals, and efficient markets have made it a global leader in the field.
However, it is impossible to say definitively that the US is the best in the world when it comes to accounting. Other countries such as the UK, Canada, Australia, and Singapore have all had success in accounting and finance, and each has its own advantages and disadvantages.
When considering whether the US is the best in the world for accounting, it is important to look at the quality of accounting education, professional certifications, and overall level of expertise in the country. The US has world-class accounting and finance programs in its universities, such as the Wharton School at the University of Pennsylvania, and is home to the prestigious CPA and CFA designations. Additionally, the US has a wealth of accounting firms, from the Big Four to mid-sized and regional firms, which offer a wide range of accounting services.
Ultimately, the US is a great place for accounting, but it is impossible to definitively say that it is the best in the world. Each country has its own unique advantages and disadvantages, and it is important to consider them all before making a decision.
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1.10 What is computer integrated manufacturing? 1.11 What are some of the reasons why companies automate their operations? Nine reasons are given in the text. 1.12 Identify three situations in which manual labor is preferred over automation.
1.10 Computer Integrated Manufacturing (CIM) is the process of using computers to control and coordinate all aspects of manufacturing, including design, production, and distribution. It involves the use of computer-aided design (CAD), computer-aided manufacturing (CAM), and computer-aided engineering (CAE) software to automate the entire manufacturing process.
1.11 Companies automate their operations for a variety of reasons, including:
- To increase productivity and efficiency
- To reduce labor costs
- To improve product quality and consistency
- To reduce waste and scrap
- To increase flexibility and customization
- To improve safety and reduce the risk of injury
- To reduce downtime and maintenance costs
- To improve inventory management and control
- To increase competitiveness and profitability
1.12 There are some situations in which manual labor is preferred over automation, including:
- When the task requires creativity, judgment, or critical thinking
- When the task involves complex or unpredictable situations that are difficult to automate
- When the cost of automation is too high or the technology is not available
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15. An $8,000 note dated 06/22/2021, matures on 12/22/2021 at
8.15%. (Banker’s Rule) What interest is paid on the note?
The interest paid on the note is $326. To find the interest paid on the note, we can use the Banker's Rule formula:
I = P × r × t
Where I is the interest, P is the principal, r is the annual interest rate, and t is the time in years.
First, we need to find the time in years. The note matures on 12/22/2021 and is dated 06/22/2021, so the time is 6 months or 0.5 years.
Next, we can plug in the values into the formula:
I = $8,000 × 8.15% × 0.5
I = $8,000 × 0.0815 × 0.5
I = $326
Therefore, the interest paid on the note is $326.
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Biscayne’s Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows:
Standard Deluxe
Rental price per day $ 46.00 $ 54.00
Variable cost per day 18.50 23.20
Biscayne’s total fixed cost is $22,500 per month.
Required:
1. Determine Biscayne’s new break-even point in each of the following independent scenarios:
a. Product mix is 40/60.
b. Sales price increases on both models by 15 percent. (Assume a product mix of 50/50.)
c. Fixed costs increase by $3,800. (Assume a product mix of 50/50.)
d. Variable costs increase by 20 percent. (Assume a product mix of 50/50.)
The break-even point in the following independent scenarios for standard and deluxe model are a. 1,387 units and 1,039 units b. 984 units and 771 units c. 1,369 units and 1,100 units d. 1,821 units and 1,377 units respectively.
To determine Biscayne's new break-even point in each of the independent scenarios, we will use the formula:
Break-even point = Fixed costs / (Price - Variable cost).
1. a. Product mix is 40/60:
Break-even point for standard model = (22,500 / 0.4) / (46 - 18.50) = 1,387 units
Break-even point for deluxe model = (22,500 / 0.6) / (54 - 23.20) = 1,039 units
b. Sales price increases on both models by 15 percent:
New price for standard model = 46 + (46 * 0.15) = 52.90
New price for deluxe model = 54 + (54 * 0.15) = 62.10
Break-even point for standard model = (22,500 / 0.5) / (52.90 - 18.50) = 984 units
Break-even point for deluxe model = (22,500 / 0.5) / (62.10 - 23.20) = 771 units
c. Fixed costs increase by $3,800:
New fixed costs = 22,500 + 3,800 = 26,300
Break-even point for standard model = (26,300 / 0.5) / (46 - 18.50) = 1,369 units
Break-even point for deluxe model = (26,300 / 0.5) / (54 - 23.20) = 1,100 units
d. Variable costs increase by 20 percent:
New variable cost for standard model = 18.50 + (18.50 * 0.20) = 22.20
New variable cost for deluxe model = 23.20 + (23.20 * 0.20) = 27.84
Break-even point for standard model = (22,500 / 0.5) / (46 - 22.20) = 1,821 units
Break-even point for deluxe model = (22,500 / 0.5) / (54 - 27.84) = 1,377 units
Therefore, the new break-even points for each of the independent scenarios are as follows:
a. Product mix is 40/60: 1,387 units for standard model and 1,039 units for deluxe model
b. Sales price increases on both models by 15 percent: 984 units for standard model and 771 units for deluxe model
c. Fixed costs increase by $3,800: 1,369 units for standard model and 1,100 units for deluxe model
d. Variable costs increase by 20 percent: 1,821 units for standard model and 1,377 units for deluxe model
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Preparing a financial budget—schedule of cash receipts, sensitivity analysis
Marcel Company projects the following sales for the first three months of the year: $11,200 in January; $12,300 in February; and $11,100 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar.
Requirements
1. Prepare a schedule of cash receipts for Marcel for January, February, and March. What is the balance in Accounts Receivable on March 31?
2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31?
Answer
Total cash receipts from the customers are $8,960 in the month of January, $12,080 in the month of February, and $11,340 in the month of March.
The schedule of cash receipts is as below. The balance in Accounts Receivable on March 31 for first and revised schedule is $2,340 and $3,570 respectively.
Based on the provided information, schedule of cash receipts for Marcel for the month of January, February, and March are:
1. Schedule of Cash Receipts
January February March
Cash Sales $6,720 $7,380 $6,660
A/R Sales $2,240 $4,700 $4,680
Total $8,960 $12,080 $11,340
The balance in Accounts Receivable on March 31 for the first schedule is $2,340 (50% of March's sales on account).
2. Revised Schedule of Cash Receipts
January February March
Cash Sales $6,720 $7,380 $6,660
A/R Sales $1,344 $5,184 $4,914
Total $8,064 $12,564 $11,574
The balance in Accounts Receivable on March 31 for the revised schedule is $3,570 (30% of March's sales on account plus 10% of February's sales on account).
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: Having just won a crossword puzzle contest, you may take your prize in any of three cash flow patterns. If money is worth 20% per year to you, which pattern would you most prefer? Which pattern would you least prefer? Pattern A B С $200 0 0 2 $200 0 0 YEARS 3 $200 $1,000 $400 4 $200 0 $400 5 $200 0 $400 How much money must be invested each year in a sinking fund earning 7% per annum in order to have $30,000 accumulated after 15 years?
The amount of money that must be invested in a sinking invest fund is $1,226.35 each year.
If money is worth 20% per year to you, the most preferred cash flow pattern would be Pattern C because it provides the highest amount of money in the shortest amount of time. Pattern C provides $400 each year for three years, for a total of $1,200.
This is more than Pattern A, which provides $200 each year for five years, for a total of $1,000, and Pattern B, which provides a one-time payment of $1,000.
The least preferred cash flow pattern would be Pattern A because it provides the lowest amount of money over the longest amount of time.
To determine how much money must be invested each year in a sinking fund earning 7% per annum in order to have $30,000 accumulated after 15 years, we can use the formula:
A = P * ( (1 + r) ^ n - 1) / r
Where A is the accumulated amount, P is the annual payment, r is the interest rate, and n is the number of years.
Rearranging the formula to solve for P, we get:
P = A * r / ((1 + r) ^ n - 1)
Plugging in the given values, we get:
P = 30,000 * 0.07 / ((1 + 0.07) ^ 15 - 1)
P = 1,226.35
Therefore, you must invest $1,226.35 each year in a sinking fund earning 7% per annum in order to have $30,000 accumulated after 15 years.
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Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 10%, and its common stock currently pays a $3.75 dividend per share (D0 = $3.75). The stock's price is currently $29.25, its dividend is expected to grow at a constant rate of 9% per year, its tax rate is 35%, and its WACC is 13.75%. What percentage of the company's capital structure consists of debt? Do not round intermediate calculations. Round your answer to two decimal places.
The percentage of the company's capital structure that consists of debt is 115.8%.
To calculate the percentage of the company's capital structure that consists of debt, we can use the formula for the weighted average cost of capital (WACC):
WACC = (wd)(rd)(1-T) + (we)(re), where wd is the weight of debt, rd is the cost of debt, T is the tax rate, we is the weight of equity, and re is the cost of equity.
We are given that rd = 10%, T = 35%, and WACC = 13.75%. We also know that the company's capital structure consists solely of debt and common equity, so wd + we = 1.
We can calculate the cost of equity (re) using the dividend discount model: re = D0/P0 + g, where D0 is the current dividend, P0 is the current stock price, and g is the expected growth rate. We are given that D0 = $3.75, P0 = $29.25, and g = 9%. Plugging these values into the formula, we get:
re = ($3.75/$29.25) + 0.09 = 0.1282
Now we can plug all of the known values into the WACC formula and solve for wd:
13.75% = (wd)(10%)(1-35%) + (1-wd)(12.82%)
13.75% = 6.5%wd + 12.82% - 12.82%wd
7.32% = 6.32%wd
wd = 1.158
Therefore, the percentage of the company's capital structure that consists of debt is 115.8%.
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As new analyst of an investment bank, you are asked to calculate the required rate of returns or CAPM (capital asset pricing model) of the following US companies. The T-Bill (US Government short-term bond) has a 1,5% rate and the risk premium is 9%. beta Company A 1.3 CAPM = Company B 0.9 CAPM = Company C 1 CAPM = Company D 1.7 CAPM = Considering that the investor is risk-averse, which share between A, B, C and D would you recommend him top buy ?
The investor should buy shares in Company B, as it has the lowest CAPM of 9.6%. The Capital Asset Pricing Model (CAPM) is used to calculate the required rate of return for an investment. It takes into account the risk-free rate, the market risk premium, and the stock's beta. The formula for CAPM is:
CAPM = Risk-free rate + (Market risk premium * Beta)
In this case, the risk-free rate is the T-Bill rate of 1.5%, and the market risk premium is 9%. We can use these values and the given beta for each company to calculate the CAPM for each company.
Company A: CAPM = 1.5% + (9% * 1.3) = 13.2%
Company B: CAPM = 1.5% + (9% * 0.9) = 9.6%
Company C: CAPM = 1.5% + (9% * 1) = 10.5%
Company D: CAPM = 1.5% + (9% * 1.7) = 16.8%
Since the investor is risk-averse, they would prefer to invest in the company with the lowest CAPM, as it indicates the lowest level of risk. Therefore, I would recommend the investor to buy shares in Company B, as it has the lowest CAPM of 9.6%.
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Consider a bond issued by the Lee Corporation. The bond matures on March 15, 2041, and pays a 5 percent annual coupon, paid semi-annually. Interest accrues following the 30/360 interest accrual convention. Please assume that the par value of the bond is $100. Lee Corporation has an investment-grade credit rating of A. Today (the "settlement date") is 3/8/2021.
A. Suppose that a reasonable risk-free benchmark interest rate for that bond’s cash flows would be 4 percent per year. What would the (clean) price of this bond be if this bond were priced at this risk-free benchmark rate?
B. Suppose that the clean price of the bond is 95. What is the yield of this bond?
C. What is the implied spread to the risk-free benchmark described above?
D. What is the accrued interest and dirty price of this bond right now?
E. What is the Macaulay Duration of the bond?
F. What is the Modified Duration of the bond?
G. Use this Modified Duration to calculate an approximate measure of the bond’s percent price change if the benchmark yield were to rise 0.5% with no change in spreads.
A. The clean price of the bond at the risk-free benchmark rate is $104.46
B. The yield of the bond is 5.26%.
C. The implied spread to the risk-free benchmark is 1.26%
D. The accrued interest of this bond is $0.32 and the dirty price is $95.32
E. The Macaulay Duration of the bond is 18.32
F. The Modified Duration of the bond is 17.48
G. The approximate measure of the bond's percent price change if the benchmark yield were to rise 0.5% with no change in spreads is -8.74%.
A. The clean price of the bond at the risk-free benchmark rate of 4% can be calculated using the formula:
Price = (C/2) * [(1 - (1 + r/2)^-2n)/(r/2)] + (FV/(1 + r/2)^2n)
Where C is the annual coupon, r is the risk-free benchmark rate, n is the number of years until maturity, and FV is the par value of the bond. Plugging in the given values:
Price = (5/2) * [(1 - (1 + 0.04/2)^-2*20)/(0.04/2)] + (100/(1 + 0.04/2)^2*20)
Price = $104.46
Therefore, the clean price of the bond at the risk-free benchmark rate is $104.46.
B. The yield of the bond can be calculated using the formula:
Yield = [(C/2) + ((FV - Price)/(2n))] / [(FV + Price)/2]
Where C is the annual coupon, FV is the par value of the bond, Price is the clean price of the bond, and n is the number of years until maturity. Plugging in the given values:
Yield = [(5/2) + ((100 - 95)/(2*20))] / [(100 + 95)/2]
Yield = 0.0526 or 5.26%
Therefore, the yield of the bond is 5.26%.
C. The implied spread to the risk-free benchmark is the difference between the yield of the bond and the risk-free benchmark rate. In this case, the implied spread is:
Implied spread = 5.26% - 4% = 1.26%
D. The accrued interest of the bond can be calculated using the formula:
Accrued interest = (C/2) * (d/D)
Where C is the annual coupon, d is the number of days since the last coupon payment, and D is the number of days in the coupon period. In this case, the accrued interest is:
Accrued interest = (5/2) * (23/180) = $0.32
The dirty price of the bond is the sum of the clean price and the accrued interest. In this case, the dirty price is:
Dirty price = $95 + $0.32 = $95.32
E. The Macaulay Duration of the bond can be calculated using the formula:
Macaulay Duration = [(C/2) * (1 + (1/(1 + r/2))^2n - 1)/(r/2) + (2n * FV/(1 + r/2)^2n)] / Price
Where C is the annual coupon, r is the yield of the bond, n is the number of years until maturity, FV is the par value of the bond, and Price is the clean price of the bond. Plugging in the given values:
Macaulay Duration = [(5/2) * (1 + (1/(1 + 0.0526/2))^2*20 - 1)/(0.0526/2) + (2*20 * 100/(1 + 0.0526/2)^2*20)] / 95
Macaulay Duration = 18.32
F. The Modified Duration of the bond can be calculated using the formula:
Modified Duration = Macaulay Duration / (1 + r/2)
Where Macaulay Duration is the Macaulay Duration of the bond and r is the yield of the bond. Plugging in the given values:
Modified Duration = 18.32 / (1 + 0.0526/2)
Modified Duration = 17.48
Therefore, the Modified Duration of the bond is 17.48.
G. The approximate measure of the bond's percent price change can be calculated using the formula:
Percent price change = -Modified Duration * (change in yield)
Where Modified Duration is the Modified Duration of the bond and change in yield is the change in the benchmark yield. Plugging in the given values:
Percent price change = -17.48 * (0.005)
Percent price change = -0.0874 or -8.74%
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1. Does Tyson use process manufacturing or the assembly process? Is the production of McDonald’s McNuggets an intermittent or continuous production process? Justify your answers.
2. What location factors might go into the selection of a manufacturing site for McDonald’s McNuggets?
1. Tyson uses process manufacturing for the production of their products, including McDonald's McNuggets. Process manufacturing involves the production of goods through a series of chemical processes, whereas assembly manufacturing involves the production of goods through the assembly of individual parts.
The production of McDonald's McNuggets is a continuous production process, as it involves the continuous production of a standardized product. This is evidenced by the fact that McNuggets are produced in large quantities and are identical in size, shape, and taste.
2. There are several location factors that might go into the selection of a manufacturing site for McDonald's McNuggets.
These include proximity to raw materials, such as chicken farms and suppliers of other ingredients; proximity to transportation networks, such as highways and railways.
For efficient distribution of the finished product; availability of labor, as the production of McNuggets requires a large workforce; and cost of land and utilities, as these can impact the overall cost of production.
Additionally, McDonald's may consider the local business climate, including tax incentives and regulations, when selecting a manufacturing site.
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Discussion topic centers on the United States use of
financial sanctions as an instrument of its foreign policy.
Discuss the effectiveness of these sanctions on Afghanistan's
economy and its people.
The financial sanctions are designed to limit or restrict the flow of money and other financial resources to targeted individuals, groups, or entities in an effort to pressure them to change their behavior or policies.
The United States has used financial sanctions as a tool of foreign policy in various countries, including Afghanistan.
In the case of Afghanistan, financial sanctions have been used to target individuals and groups associated with terrorism and the Taliban. These sanctions have included freezing assets, restricting access to financial services, and prohibiting transactions with US persons and entities.
While these sanctions have had some success in limiting the financial resources of targeted individuals and groups, their overall effectiveness on Afghanistan's economy and its people is debatable. On one hand, sanctions can help to isolate and weaken terrorist groups, making it more difficult for them to fund their activities.
On the other hand, sanctions can also have negative consequences for the broader Afghan economy and its people, including inflation, shortages of goods and services, and a decline in economic growth.
In conclusion, the effectiveness of financial sanctions on Afghanistan's economy and its people is a complex and nuanced issue, with both positive and negative impacts. It is important to consider these impacts and weigh them against the intended goals of the sanctions in order to evaluate their overall effectiveness.
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Explain how banks are able to reconcile conflicting requirementsof lenders and borrowers.
Banks are able to reconcile conflicting requirements of lenders and borrowers through the process of intermediation.
What Is Intermediation?Intermediation involves the bank acting as a middleman between the lender and the borrower, matching the needs of each party and facilitating the transaction. The bank is able to do this by offering different types of loans and deposits, with varying terms and interest rates, that meet the needs of both lenders and borrowers. For example, a bank may offer a high-interest savings account to attract lenders, while also offering low-interest loans to attract borrowers. Through intermediation, banks are able to balance the conflicting requirements of lenders and borrowers and ensure that both parties are satisfied.
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Kellogg’s ($K) Our team’s previous memorandum on return on capital and cost of capital analysis for Kellogg’s and General Mills pointed to a significant challenge that Kellogg’s has, its significant debt problem. Kellogg’s acknowledges this in their most recent 10-K filing as well. The 2021 consolidated balance sheet shows current debts of $712M and noncurrent debt of $6.26B for a total debt of $6.97B. The company’s balance sheet shows total company equity of $3.72B. This results in a debt-to-equity ratio of 1.87. We expect that the debt-heavy financing mix was chosen due to Kellogg’s cost of equity being substantially higher than their cost of debt. While the company does cite several potential risks associated with its high debt ratio, including limiting its ability to pay dividends, the debt is currently being managed in a manner that doesn’t substantially impact today’s cash flows Kellogg’s has a long history of consistently paying dividends and growing its dividend distribution year over year. Since becoming a publicly-traded company Kellogg’s has paid dividends every year, with the dividend distribution growing or staying at the previous year’s level, each year. In 2021 Kellogg’s paid total dividends of $2.31 per share across four quarterly distributions, this is up from a total of $2.28 per share in dividends in 2020. 2021 dividend distribution cost a total of $788M up from $782M in 2020. Over the past two years, Kellogg’s has allocated significant resources to repurchase outstanding shares. In 2021 Kellogg’s has a treasury stock balance of 79.21M shares at a total cost of $4.71B, this was an increase from the 2020 balance of 77.07M shares at a total cost of $4.56B. In their 10K filing Kellogg’s notes that treasury stock shares are generally used to satisfy stock-based awards for employees. General Mills ($GIS) As discussed in the previous memo, General Mills currently has a debt-to-equity ratio of .56. The company’s 2021 Form 10-K filing shows the current portion of long-term debt as $2,463.8M and long-term debt of $9,786.9M. Long-term debt decreased from a high of $10,929.0M in 2020. The company’s total stockholders’ equity was $9,470.4M in 2021 compared to $8,058.5M in 2020. These values show that General Mills has decreased its debt-to-equity ratio over the past year. The company does not give a reason for this in its Form 10-K, but it may be to increase its flexibility as it pursues its stated accelerated growth strategy in the face of the ongoing pandemic. Concerning the company’s dividend strategy, General Mills proudly boasts that it and its predecessors have continuously paid dividends for the past 120 years without interruption. Dividends have steadily increased since 2013 when dividends per share were $1.55. 2021 saw dividends of $2.02 per share for total dividend payments of $1,246.4M. This was an increase from the previous two years in which dividends per share were $1.96. The company could have paid out more in dividends in 2021 as we have estimated General Mills’ FCFE as $2,608.7M. This indicates that the company had excess earnings that have not been put to use and could be returned to shareholders. The company has made significant efforts to repurchase outstanding shares and boost its treasury holdings. General Mills states that it uses the treasury balance for employee stock compensation plans. The company repurchased $301.4M in stocks for the fiscal year 2021. This was a drastic increase from the years 2020 and 2019 which saw stock repurchases of $3.4M and $1.1M, respectively. General Mills appears to be shifting more focus to returning shareholder wealth through share buybacks. Again, the company still had excess free cash flows that could have been used to return even more wealth. While General Mills had excess FCFE for 2021, the company has been using its capital wisely. As discussed in the last memo, The company’s ROIC was much higher than its WACC, indicating that General Mills has a history of selecting good projects and will likely continue to do so. As such, we feel the shareholders have faith in the management team and will continue to allow the company to operate under its current dividend policy. Similar to General Mills, Kellogg’s continued dividend growth and a policy of repurchasing shares of stock, are indications that investors’ interests are being accounted for by the company’s management. However, investors should be cautious as the capital structure of Kellogg’s, specifically, their debt load could be problematic in the future if it is not carefully monitored and controlled.
Both Kellogg's and General Mills have strong dividend policies and a history of repurchasing shares to return wealth to shareholders.
However, Kellogg's has a significant debt problem, with a debt-to-equity ratio of 1.87, which could potentially limit its ability to pay dividends in the future. On the other hand, General Mills has a lower debt-to-equity ratio of 0.56 and has decreased its debt-to-equity ratio over the past year, indicating a stronger financial position. Both companies use treasury stock shares to satisfy stock-based awards for employees. General Mills appears to be shifting more focus to returning shareholder wealth through share buybacks, while Kellogg's continues to grow its dividend distribution. Investors should be cautious about Kellogg's debt load, but both companies seem to be accounting for investors' interests in their dividend policies and share repurchases.
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Give examples of three marketing roles assigned to personnel in an organisation. Briefly explain what marketing tasks and responsibilities are attached to each role.
Marketing plays a crucial role in the success of an organisation, and there are several marketing roles assigned to personnel in an organisation. Here are three examples of marketing roles and their associated tasks and responsibilities:
1. Marketing Manager: The Marketing Manager is responsible for developing and executing the organisation's overall marketing strategy. This includes conducting market research, identifying target markets, setting pricing strategies, developing marketing plans, and overseeing the implementation of marketing campaigns. The Marketing Manager also oversees the work of other marketing personnel and is responsible for ensuring that the organisation's marketing goals are met.
2. Marketing Communications Specialist: The Marketing Communications Specialist is responsible for creating and disseminating marketing materials, such as advertisements, press releases, and social media posts. This role involves working closely with the Marketing Manager to develop the organisation's messaging and branding, and ensuring that all marketing communications are consistent and effective.
3. Market Research Analyst: The Market Research Analyst is responsible for collecting and analysing data on customer preferences, buying habits, and market trends. This information is used to inform the organisation's marketing strategy and help identify new opportunities for growth. The Market Research Analyst is also responsible for monitoring the performance of marketing campaigns and making recommendations for improvements.
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la firm has an ROE = 22%, Debt-to-equity ratio = 1.5, a profit margin of 10,7%, what is the total asset turnover ratio? Multiple Choice 0.82 0.32 0.04 О 1.37
LA firm has an ROE = 22%, Debt-to-equity ratio = 1.5, a profit margin of 10,7%, the total asset turnover ratio is 0.82. The correct answer is A. 0.82.
The total asset turnover ratio can be calculated using the formula: ROE = (Profit Margin)(Total Asset Turnover)(Equity Multiplier).
Given the values of ROE, Debt-to-equity ratio, and profit margin, we can plug them into the formula and solve for the total asset turnover ratio.
ROE = (Profit Margin)(Total Asset Turnover)(Equity Multiplier)
22% = (10.7%)(Total Asset Turnover)(1 + 1.5)
22% = (10.7%)(Total Asset Turnover)(2.5)
Total Asset Turnover = (22%)/(10.7%)(2.5)
Total Asset Turnover = 0.82
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Briefly explain about marketing campaigns/advertisements (TVCommercial or print ad) which influenced you as achild. Do you think this ad will have an impact on the currentgeneration, explain why?
Advertising campaigns and advertisements are a powerful way of influencing people. As a child, I was impacted by television commercials and print ads that featured interesting characters or storylines.
Advertising campaigns and advertisements are a powerful way of influencing people. These campaigns had an impact on my values and beliefs, and likely had a similar effect on others.
Today, many of the same strategies are used in marketing campaigns. However, the current generation is also exposed to more interactive digital media, which can be even more influential. Through digital media, companies are able to capture the attention of younger generations and target their messages to different demographics.
As a result, modern marketing campaigns have the potential to have a great impact on the current generation.
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You
decide to buy 1 000 of two year CD (certificate of
deposit) University Credit Union offers 7 interest per year
Mercantile Bank says that you can get 1 180 after two years
Who offers a better deal?
You can compare the future value or the interest rate
Comparing the future values of both CDs, we see that Mercantile Bank CD offers a better deal as it has a future value of $2180, which is higher than University Credit Union CD's future value of $1149.16.
To compare the better deal between two-year CD (certificate of deposit) University Credit Union and Mercantile Bank that offers 7% interest per year, we need to compare their future values after two years.
The formula to calculate the future value of a CD with compounded interest is given by: FV = P × (1 + r/n)[tex]x^{2}[/tex](n*t)
Where, FV is the future value of the CD,
P is the principal amount invested,
r is the annual interest rate in decimal,
n is the number of times the interest is compounded in a year,
t is the number of years of investment in this case, we have invested $1000 in both University Credit Union and Mercantile Bank CDs, and both have a two-year investment term. So, t = 2 years.
Calculating the future value of University Credit Union CD: FV = P × (1 + r/n)[tex]x^{2}[/tex](n*t)FV = 1000 × (1 + 0.07/1)[tex]x^{2}[/tex](1*2)FV = $1149.16
Calculating the future value of Mercantile Bank CD: FV = P × (1 + r/n)^(n*t)FV = 1000 + 1180 = $2180
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Entrepreneurial orientation generally involves all the following except:Risk takingInnovativenessProactivenessDifferentiationInnovativeness is the tendency to pursue which of the following?Risk taking, leadershipCreativity, differentiationCreativity, experimentationExperimentation, intrapreneurship
Entrepreneurial orientation generally involves all the following except differentiation. Differentiation is a strategy used by businesses to distinguish their products or services from those of their competitors.
While it is an important aspect of business, it is not considered a part of entrepreneurial orientation.Entrepreneurial orientation generally includes risk taking, innovativeness, and proactiveness. Risk taking involves the willingness to take chances and pursue opportunities that may involve risk. Innovativeness is the tendency to pursue creativity, experimentation, and new ideas. Proactiveness is the tendency to anticipate and act on future needs and opportunities.Innovativeness is the tendency to pursue creativity and experimentation. This involves coming up with new ideas and finding new ways to solve problems. It also involves being willing to try new things and take risks in order to achieve success.
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a) Using a service with which you are familiar identify its points of parity, points of difference and (if relevant) points of contention.
b) Imagine you are opening a new restaurant in a busy mall that sells gourmet burgers, pizza etc (dine-in, not takeaway) targeted at the higher end of the market. Explain how you would use the different elements of the servicescape (physical evidence) as an affect, attention and message creating medium.
a) Points of parity are aspects of a service that are similar to or the same as competing services. Points of difference are aspects that make the service unique or different from competitors. Points of contention are aspects of the service that may be disputed or disagreed upon by customers.b) When opening a new restaurant in a busy mall, it is important to use the servicescape, or the physical environment, to create an affect, attention, and message.
A)For example, a popular coffee shop chain may have points of parity with other coffee shops such as offering a variety of coffee beverages, pastries, and free Wi-Fi. Its points of difference may include a rewards program for frequent customers, specialty drinks, and a recognizable brand. Points of contention may include pricing, quality of drinks, and customer service.
B)To create an affect, the restaurant could have a modern and upscale design, with comfortable seating and warm lighting to create a welcoming and inviting atmosphere.
To grab attention, the restaurant could have large and visually appealing signage, displays of their gourmet burgers and pizzas, and enticing aromas coming from the kitchen.
To create a message, the restaurant could have a consistent theme and branding throughout the space, such as a rustic or industrial design, to convey the high-end and gourmet nature of the food. The staff could also be dressed in professional and stylish uniforms to further reinforce the upscale image of the restaurant.
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What is the order in which the following will be paid by a
company: Taxes, supplies expense, rent, corporate bonds, cost of
goods sold, preferred stock, treasury bonds, and common stocks.
The order in which the following will be paid by a company is:
1. Cost of goods sold: This is the direct cost associated with the production of goods sold by the company and is typically the largest expense for a company.
2. Supplies expense: This includes the cost of any supplies needed to run the business, such as office supplies, cleaning supplies, etc.
3. Rent: This is the cost of leasing or renting any property or equipment used by the company.
4. Taxes: This includes any taxes owed by the company, such as income tax, sales tax, etc.
5. Corporate bonds: These are debt securities issued by the company to raise funds. The company is obligated to pay back the principal and interest to bondholders.
6. Preferred stock: This is a type of stock that gives the holder the right to receive dividends before common stockholders.
7. Treasury bonds: These are debt securities issued by the U.S. government. The company is obligated to pay back the principal and interest to bondholders.
8. Common stocks: These are shares of ownership in the company and are typically the last to be paid in the event of a liquidation.
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Assuming the employees always have their phone near them, which of these questions could not be answered by the location data?
Location data from a person's phone can provide a wealth of information about their movements and activities.
However, there are certain questions that cannot be answered by this data alone. Here are some examples: What is the employee's job title and responsibilities? Location data can provide information about where an employee is at a particular time, but it cannot tell us what they are doing or why they are there. To answer questions about an employee's job title and responsibilities, we would need to consult their job description or speak with their manager.
How does the employee feel about their job? Location data cannot provide any information about an employee's emotions or attitudes towards their work. To answer questions about job satisfaction, we would need to conduct surveys or interviews.
What are the employee's future career aspirations? Location data cannot tell us anything about an employee's ambitions or goals. To answer questions about career aspirations, we would need to have conversations with the employee or review their career development plan. What is the employee's level of productivity? While location data can provide some insight into an employee's movements and activities, it cannot provide a complete picture of their productivity. To answer questions about productivity, we would need to evaluate the quality and quantity of their work output.
What is the employee's preferred communication style? Location data cannot tell us how an employee prefers to communicate with their colleagues or managers. To answer questions about communication preferences, we would need to have conversations with the employee or observe their communication style.
In conclusion, while location data can be a valuable source of information about an employee's movements and activities, it cannot answer every question about their work and career. To gain a comprehensive understanding of an employee's job performance and career goals, it is necessary to supplement location data with other sources of information and insights.
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Question 5 – 7
A pharmacy store sells hand sanitizer, which is supplied by a chemical manufacturer in
a nearby city. The lead time is 16 days. The daily demand for hand sanitizer is normally
distributed. The mean of daily demand is 20 bottles with the variance of 36 bottles2. The
pharmacy store wants to keep its stock-out probability as low as 2.5%.
Due to the unexpected shipping delay and supply shortage, the chemical manufacturer
cannot guarantee delivery on demand. Instead, the chemical manufacturer suggests the
pharmacy store switch to a periodic-inventory system. The manufacturer checks the
pharmacy store’s inventory level every 20 days. In the most recent inventory check, the
manufacturer found that there were only 110 bottles left. Assume the stock-out level is
still 2.5%.
Q5: What is the target inventory level? (Reminder: round UP to the next whole
number)
Q6: How many bottles were ordered? (Keep the whole number)
Q7: Keep everything else the same, if the pharmacy store now sets its safety stock to
be 85 bottles, what will happen to its service level?
Service level goes up
Service level goes down
Service level unchanged
Using the information given, the target inventory level is 332 bottles. The number of bottles ordered were 222. Keep everything else the same, if the pharmacy store now sets its safety stock to be 85 bottles, the service level is go up.
5. The target inventory level can be calculated as follows:
1. Calculate the lead time demand: 20 bottles/day * 16 days = 320 bottles
2. Calculate the safety stock:
Z-score for 2.5% stock-out probability = 1.96,
standard deviation = sqrt(36) = 6 bottles,
so safety stock = 1.96 * 6 = 11.76, rounded up to 12 bottles
3. Calculate the target inventory level: 320 bottles + 12 bottles = 332 bottles
Therefore, the target inventory level is 332 bottles.
6. The number of bottles ordered can be calculated as follows:
1. Calculate the target inventory level: 332 bottles (from answer 5)
2. Subtract the current inventory level: 332 bottles - 110 bottles = 222 bottles
Therefore, 222 bottles were ordered.
7. If the pharmacy store sets its safety stock to be 85 bottles, its service level will go up. This is because a higher safety stock means that there is a lower probability of stock-out, and therefore a higher service level.
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Shirley took out a loan from the bank today for x. She plans to repay this loan by making payments of $440. 00 per month for a certain amount of time. If the interest rate on the loan is 0. 84 percent per month, she makes her first $440. 00 payment later today, and she makes her final monthly payment of $440. 00 in 5 months, then what is x, the amount of the loan? an amount less than $2,154. 00 or an anmount greater than $2,667. 00 an amount equal to or greater than $2,154. 00 but less than $2,363. 00 an amount equal to or greater than $2,363. 00 but less than $2,574. 00 an amount equal to or greater than $2,574. 00 but less than $2,612. 00 an amount equal to or greater than $2,612. 00 but less than $2,667. 0
To solve this problem, we can use the formula for the present value of an annuity, PV = PMT *[tex][1 - (1 + r)^(-n)] / r[/tex] where PV is the present value, PMT is the monthly payment.
r is the interest rate per month, and n is the number of months. Substituting the given values, we get: Therefore, the amount of the loan is $2,200. Checking the given options, we can see that the answer is in the range of "an amount equal to or greater than $2,154.00 but less than $2,363.00", which is the third option. In summary, Shirley took out a loan of $2,200, and she plans to repay it over five months by making monthly payments of $440.00 at an interest rate of 0.84% per month.
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______ ______ cause damage extremely fe the words in the box to complete the text. There are two extra words. consists of location educate categories approximate generally created Occur we A tornado is the most destructive and deadly.
Tornadoes can cause extreme damage to buildings, infrastructure, and the environment. A tornado is a destructive and deadly weather phenomenon that generally occurs in specific locations and consists of strong, rotating winds. They are created when warm, moist air meets cold, dry air, causing instability in the atmosphere.
Tornadoes are categorized into different categories based on their approximate wind speeds and the amount of damage they cause. It is important to educate ourselves about tornadoes and be aware of the potential dangers they can bring.
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In reference to the concept of socialization, discuss the advantages and disadvantages of the global move to close children’s homes in favour of integration (30 Marks)
The concept of socialization refers to the process of learning and internalizing the values, beliefs, and norms of a society. This process begins at a young age and continues throughout an individual's life. One aspect of socialization that has been the subject of much debate is the global move to close children's homes in favour of integration.
One advantage of closing children's homes and integrating children into mainstream society is that it can provide a more natural and supportive environment for children. This can also provide children with access to a wider range of educational and extracurricular opportunities.
However, there are also disadvantages to this approach. One of the main disadvantages is that it can be difficult for children to adjust to a new environment. This can lead to feelings of isolation and loneliness.
Overall, the global move to close children's homes in favour of integration has both advantages and disadvantages. It is important to consider the individual needs of each child when making decisions about their care and socialization.
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Diana has recently taken out a $25,000, fully amortizing car loan where she will make one payment at the end of each year for 6 years. The loan's apr is 7%. How much of her third payment will go towards interest?
In the third month with loan's apr being 7% first year payment will be 1750+4166, second month will be 1335+4166, for third month it will be 950+4166= 5116
An annual percentage rate (APR) is the annual rate that is charged for a loan or earned by an investment. Financial institutions must reveal the APR of a financial instrument before such an arrangement is signed. The APR provides a trustworthy foundation for displaying annual interest rate information in order to protect customers from misleading advertising. An APR may not correctly reflect the costs of borrowing because lenders have some discretion in calculating it, which can result in the elimination of some expenditures. APR should not be confused with APY (annual percentage yield), a metric that considers interest compounding.
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Lancers Retail Stores is considering the opening of a new store in Des Moines. An analyst for the company has created the following simple model:
Initial Investment at t=0, $1.2M
Life of store, 10 years
Revenues, $1.3M
Variable cost rate, 60%
Fixed costs, (inc., $50K of depreciation) of $300K per year
Expected tax rate 18.0% There are no net working capital implications
The appropriate risk adjusted discount rate is 10.0%
The above values are base case values. The analyst has also said the three assumptions above that are the most uncertain are Revenues, Variable Cost Rate, and the Tax Rate – the rest of the assumptions are easy to estimate in comparison and the analyst has greater certainty as to those values. For these three assumptions the analysts has created the following additional analysis:
Based on the information provided, analysts used sensitivity analysis to determine the potential changes in the three most uncertain assumptions (revenue, variable cost rate, and tax rate) to the net present value (NPV) of the new Des Moines business. impact can be determined. A sensitivity analysis helps the analyst identify the key drivers of her NPV and assess the risks associated with the project.
To perform a sensitivity analysis, the analyst can create a table of base case values for the three most uncertain assumptions and vary each assumption individually while keeping her other two assumptions constant. The analyst can then calculate her NPV for each scenario and compare it to her NPV for the base case to determine the sensitivity of the NPV to changes in each assumption.
An analyst can change her earnings assumption from $1 million to $1.6 million while keeping the variable cost rate and tax rate constant at the base case values. Analysts can then calculate the NPV for each scenario and compare it to the NPV of the base case to determine the sensitivity of the NPV to changes in earnings.
The analyst could also change the variable cost rate assumption from 50% to 70% while keeping the revenue and tax rate constant at the base case values. The analyst can then calculate her NPV for each scenario and compare it to her NPV for the base case to determine the sensitivity of her NPV to changes in the variable cost ratio.
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