Lyft Case Study – Global Strategy
In recent years, several tech start-ups have grown in size and scale to become dominate players in the modern global economy. Amongst these are Lyft Inc and Uber Inc, both American tech start-ups offering ridesharing services. Lyft was launched in 2012 under the name Zimride, changing the name to Lyft in May 2013, and it is viewed as a smaller rival to Uber.
Lyft was initially only a ridesharing/ride hailing firm, but has since expanded into offering vehicles for hire, a bicycle sharing system, motorised scooters, and more recently food delivery. In 2017, Lyft entered the food delivery service, initially partnering with Taco Bell for a short period. In 2020, the firm entered a partnership with another tech start up, GrubHub to develop a takeout delivery service. This strategic move was chiefly undertaken in response to the outbreak of COVID-19 and reduced ridership.
The scooter services offered by Lyft are motorised scooters that can reach speeds of 15MPH; customers unlock them for a small charge, and then pay additional fees per minute of usage. In 2019, Lyft partnered with Segway-Ninebot, in order to offer a more durable scooter. Lyft had previously partnered with Chinese multinational, Xiaomi, for its scooter service, yet this relationship ended in 2018. Lyft’s car rental service is offered in partnership with the German multinational car rental service, Sixt. This allows Lyft customers to rent a vehicle through the Rental tab of the app. Customers can get a Lyft ride to a Sixt location where they can pick up the rental vehicle.
Lyft holds around 30% of the market share in ridesharing service in the US (second only to Uber), and in 2018 its revenues reached $2.2 billion. In 2018, there were 4.2 billion rides given by Lyft. Whereas Uber has an extensive global presence, as it pursed a rapid internationalisation strategy, Lyft is restricted to North America. This presents Lyft with the opportunity to learn from Uber’s global activity and strategy. When comparing Lyft and Uber, Lyft has made several attempts to present itself as the more ethical alternative to Uber. Lyft has taken this approach as in recent years Uber has experienced a series of public relations failures, with allegations of systemic sexism, sexual harassment, and a disregard for regulation (at a global level). Lyft has seized on this opportunity to present itself in a different light, with substantial donations to charity, and allowing customers to round up their fare to make a charity donation. However, these attempts to be viewed as a more ethical alternative have only been moderately successful.
The outbreak of COVID-19 has presented challenges and opportunities to Lyft. Lyft has launched a program called "Essential Deliveries", this service involves the delivery of medical supplies, test kits and meals for vulnerable individuals (with a focus on children or seniors) that can be picked up from distribution centres for contract free drop off. However, COVID-19 has provided disruptions for the firm, not only has there been a decrease in ridesharing and ride hailing activity, but it has also presented challenges for the Lyft Scooters segment of the business.
Lyft has appointed you as a consultant, once the current coronavirus pandemic is over, the company is considering investing overseas in Southeast Asia as global expansion is perceived at this time to be a potentially important element of the company’s long-term strategic goals. The country that Lyft is considering is Vietnam.
Apply the PESTLE model to analyse the external environment facing that Lyft would face in Vietnam and identify the key external factors which would impact the company.
Using Porter’s five forces framework, analyse the attractiveness of the industry
in which Lyft operate. Pay specific attention to the attractiveness of the industry in Vietnam.
Using the Integration–Responsiveness Grid, discuss which international strategy would be most appropriate for Lyft in Vietnam.

The present value of the given set of cash flows, discounted at 15.4% per year, is $603.80.

The present value of a set of cash flows is the sum of the present values of each individual cash flow. To calculate the present value of a cash flow, we use the formula:

PV = CF / (1 + r)^n

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

For the given set of cash flows, we can calculate the present value of each cash flow and then add them together:

PV1 = 596 / (1 + 0.154)^1 = 516.07

PV2 = 96 / (1 + 0.154)^2 = 72.15

PV3 = 199 / (1 + 0.154)^3 = 128.95

PV4 = -199 / (1 + 0.154)^4 = -113.37

The present value of the set of cash flows is:

PV = PV1 + PV2 + PV3 + PV4 = 516.07 + 72.15 + 128.95 + (-113.37) = 603.80

Therefore, the correct answer would be $603.80.

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In order to answer this question, we need to prepare a contribution format income statement for the month based on actual sales data.

compute the break-even point in sales dollars for the month based on the actual data, and calculate the break-even point in unit sales for the month based on the actual data.

Contribution Format Income Statement:

Sales Revenue: Sinks ($252,000 x $100 per unit) = $25,200,000
 Mirrors ($420,000 x $95 per unit) = $39,900,000
Vanities ($336,000 x $160 per unit) = $53,760,000
Total Sales Revenue = $118,860,000

Variable Costs: Sinks ($252,000 x $50 per unit) = $12,600,000
Mirrors ($420,000 x $45 per unit) = $18,900,000
Vanities ($336,000 x $90 per unit) = $30,240,000
Total Variable Costs = $61,740,000

Contribution Margin = $118,860,000 - $61,740,000 = $57,120,000

Fixed Costs = $740,000

Operating Income = Contribution Margin - Fixed Costs = $56,380,000

Break-Even Point in Sales Dollars:

Break-Even Point in Sales Dollars = Fixed Costs / Contribution Margin Ratio
Contribution Margin Ratio = Contribution Margin / Sales Revenue
Contribution Margin Ratio = $57,120,000 / $118,860,000 = 0.48
Break-Even Point in Sales Dollars = $740,000 / 0.48 = $1,541,666.67

Break-Even Point in Unit Sales:

Break-Even Point in Unit Sales = Fixed Costs / (Contribution Margin per Unit x Number of Units)
Contribution Margin per Unit = Contribution Margin / Unit Sales
Contribution Margin per Unit = $57,120,000 / 2,100 = $27,257.14
Break-Even Point in Unit Sales = $740,000 / ($27,257.14 x 2,100) = 1,910 units

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The annual rate of return on this stock is 32.29%.

The annual rate of return on a stock can be calculated using the following formula: Annual Rate of Return = (Annual Dividend / Stock Price) + Growth RateIn this case, the annual dividend is $18 and the stock price is $120. The growth rate can be calculated by dividing the EPS by the stock price:Growth Rate = EPS / Stock Price = $20.75 / $120 = 0.1729So, the annual rate of return on this stock is:Annual Rate of Return = ($18 / $120) + 0.1729 = 0.15 + 0.1729 = 0.3229 or 32.29%

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To determine how many Original Issue Discount bonds the firm must issue to raise $5,000,000, we need to calculate the present value of the bonds using the effective yield of the par bonds.

The effective yield of the par bonds is 10% semiannually, or 20% annually. Using the formula for the present value of a bond, we can calculate the price of the Original Issue Discount bonds:
PV = C / (1 + r)^n + F / (1 + r)^n
Where PV is the present value, C is the coupon payment, r is the effective yield, n is the number of periods, and F is the face value.
For the Original Issue Discount bonds:
PV = ($1,000 x 0.0625) / (1 + 0.20)^40 + $1,000 / (1 + 0.20)^40
PV = $62.50 / (1 + 0.20)^40 + $1,000 / (1 + 0.20)^40
PV = $62.50 / 30.23 + $1,000 / 30.23
PV = $2.07 + $33.09
PV = $35.16
Therefore, the price of the Original Issue Discount bonds is $35.16. To raise $5,000,000, the firm must issue:
$5,000,000 / $35.16 = 142,146.42
The firm must issue approximately 142,146 Original Issue Discount bonds to raise $5,000,000.

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The organization I have chosen to analyze for this question is Petronas, a Malaysian oil and gas company. Petronas has a code of conduct and business ethics that outlines the company's commitment to conducting business in an ethical, lawful, and responsible manner.

Some key aspects of Petronas' code of conduct and business ethics include: Compliance with laws and regulations: Petronas is committed to complying with all applicable laws and regulations in the countries in which it operates. Respect for human rights: Petronas respects the rights and dignity of all individuals and is committed to treating everyone fairly and with respect.

Protection of the environment: Petronas is committed to minimizing the environmental impact of its operations and promoting sustainable development.

Anti-corruption: Petronas has a zero-tolerance policy towards bribery and corruption and is committed to conducting business with integrity.

Fair competition: Petronas is committed to competing fairly in the marketplace and adhering to all applicable competition laws.

Conflicts of interest: Petronas employees are expected to avoid situations that could create a conflict of interest between their personal interests and the interests of the company.

Confidentiality: Petronas employees are expected to protect the confidentiality of the company's information and the information of its business partners.
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According to the given credentials the Working capital is $56,321,770,Acid-test Ratio is  0.75,Current Ratio is  1.23, Average Payment Period is 60.77 days, . Days Cash on Hand, Short-Term Sources is  37.94 days.

a. Working capital: This is calculated by subtracting current liabilities from current assets. In this case, working capital for 2021 would be $305,982,202 (current assets) - $249,660,432 (current liabilities) = $56,321,770.
b. Acid-test Ratio: This is calculated by subtracting inventories from current assets and then dividing by current liabilities. In this case, the acid-test ratio for 2021 would be ($305,982,202 - $117,774,685) / $249,660,432 = 0.75.
c. Current Ratio: This is calculated by dividing current assets by current liabilities. In this case, the current ratio for 2021 would be $305,982,202 / $249,660,432 = 1.23.
d. Average Payment Period: This is calculated by dividing accounts payable by the cost of goods sold and then multiplying by 365. In this case, the average payment period for 2021 would be ($206,927,474 / $1,245,049,430) * 365 = 60.77 days.
e. Days Cash on Hand, Short-Term Sources: This is calculated by dividing cash and cash equivalents by the cost of goods sold and then multiplying by 365. In this case, the days cash on hand for 2021 would be ($129,196,815 / $1,245,049,430) * 365 = 37.94 days.

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The statement ''Accounts that normaly have debit balance are assest, drwing, and revenue'' is false, because not all these accounts are characterized by a debit balance.

A debit balance refers to the amount of money owed by a person or business to another entity. In other words, it is the negative balance on an account, credit card, loan or other financial obligation.

Accounts that normally have a debit balance are Assets, Expenses, and Dividends. Accounts that normally have a credit balance are Liabilities, Equity, and Revenue. Considering this information, we can state that the problem statement is false.

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To prepare the adjusted trial balance, we need to make the following adjustments:

Accrue Rent Expense: Rent expense needs to be accrued for the month of May, which amounts to RM210.

Prepaid Rates: Rates have been prepaid by RM880, which needs to be adjusted by debiting Rates Expense and crediting Prepaid Rates.

Carriage Inwards: RM2,211 of carriage represents carriage inwards on purchases. This needs to be added to the Purchases account.

Depreciation Expense: Equipment is to be depreciated at 15% per annum using the straight line method. The depreciation expense for the year is calculated as (RM58,000 - RM19,000) x 15% = RM5,850.

Adjusted Trial Balance as at 31 May 2021

Debit Credit

RM RM

Sales 138,200

Purchases 84,561

Carriage 2,933

Drawings 7,800

Rent, rates and insurance 7,312

Postage and stationery 3,000

Advertising 1,330

Salaries and wages 26,420

Bad debts 877

Accounts receivable 12,120

Accounts payable 6,477

Rates Expense 880

Rent Expense 210

Depreciation Expense 5,850

Cash in hand 177

Cash at bank 1,000

Inventory as at 31 May 2021 13,550

Equipment (at cost) 58,000

Equipment accumulated depreciation 19,000

Capital 53,090

Total 221,452 221,452

The adjusted trial balance shows a total debit balance of RM221,452 and a total credit balance of RM221,452, which indicates that the accounts are balanced. The net income for the period is RM5,344, which is calculated as follows:

Sales - Cost of Goods Sold = Gross Profit

138,200 - 84,561 = 53,639

Gross Profit - Operating Expenses = Net Income

53,639 - 48,295 = 5,344

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The problem in the joint venture between Danone and Wahaha that triggered the conflict was that Wahaha had been producing and selling beverages under the same name as Danone's brands without permission, resulting in potential brand infringement.

Danone's understanding of their role in the venture was that they would own the majority stake in the company and be in charge of strategic decisions. Wahaha's understanding of their role was that they would retain complete autonomy over their own operations and be in charge of day-to-day business decisions.

Organizational culture and national culture certainly had an effect on the two companies perspectives. Danone was a foreign company operating in a different cultural context, whereas Wahaha was a local company operating in its own native cultural context. This difference in culture likely contributed to the misalignment of expectations and subsequent conflict.

As a leader, it is important to handle conflict in a skilled manner. This can involve having conversations to understand the different perspectives, considering both sides of the issue, negotiating solutions, and being respectful and understanding. Ultimately, it is important to keep the focus on finding a resolution that will benefit both parties.

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The cost of quality refers to the expenses that a company or organization incurs to prevent or address defects in their products or services. These costs can include expenses related to prevention, appraisal, internal failure, and external failure.

Prevention costs are the expenses incurred to prevent defects from occurring in the first place. For example, a company may invest in training and education for its employees to ensure that they have the skills and knowledge necessary to produce high-quality products.
Appraisal costs are the expenses incurred to inspect and test products or services to ensure that they meet the required quality standards. For example, a company may hire a third-party testing agency to inspect its products before they are shipped to customers.
Internal failure costs are the expenses incurred when defects are discovered before the product or service is delivered to the customer. For example, a company may need to rework or scrap defective products before they are shipped to customers.
External failure costs are the expenses incurred when defects are discovered after the product or service has been delivered to the customer. For example, a company may need to issue a recall for a defective product or provide refunds or compensation to customers who have received defective products.
In my personal experience, I have seen companies invest in prevention and appraisal costs in order to minimize internal and external failure costs. For example, I have worked for a company that invested in training and education for its employees to ensure that they were producing high-quality products. This investment helped to prevent defects and reduce the need for rework or recalls, ultimately saving the company money in the long run.

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1. The cost of goods sold (COGS) for each unit can be calculated using the following formula:

COGS = (Beginning Direct Materials + Purchases and Freight-in of Direct Materials - Ending Direct Materials) + Direct Labor + Manufacturing Overhead

Manufacturing Overhead includes Depreciation (Factory Equipment), Supplies (Factory), Maintenance (Factory Equipment), Utilities (Factory), Indirect Labor, and Rent (Factory Building).

COGS = ($23,000 + $125,000 - $25,000) + $80,000 + ($30,000 + $1,500 + $20,000 + $8,000 + $54,500 + $70,000)
COGS = $387,000

COGS per unit = $387,000 / 100,000 units
COGS per unit = $3.87

2. The Income Statement for the month of January 2022 can be prepared as follows:

Sales Revenue = 100,000 units x $6.10 = $610,000

COGS = $387,000 (calculated above)

Gross Profit = Sales Revenue - COGS = $610,000 - $387,000 = $223,000

Operating Expenses = Depreciation (Office Equipment) + Salesmen's Salary & Commissions + Advertising Expense = $7,000 + $30,000 + $90,000 = $127,000

Operating Income = Gross Profit - Operating Expenses = $223,000 - $127,000 = $96,000

Net Income = Operating Income = $96,000

3. The extracts of Current Assets in the Balance Sheet as at 31 January 2022 can be prepared as follows:

Current Assets:
Direct Materials Inventory: $25,000
Work-in-Process Inventory: $34,000
Finished Goods Inventory: $223,000 (Gross Profit calculated above)
Total Current Assets: $282,000

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As the HR head of the USA based Fast Food Company ABC, it is important to carefully consider the qualifications and experience necessary for the Marketing Manager and Finance Manager positions in the company's new subsidiaries in Bangladesh.

For the Marketing Manager position, it is important to find someone with strong marketing and branding experience, preferably in the fast food industry.

The Marketing Manager should also have experience with market research and analysis, as well as a strong understanding of the local market in Bangladesh.

Additionally, the Marketing Manager should have strong communication and leadership skills, as they will be responsible for overseeing the marketing team and implementing marketing strategies.

For the Finance Manager position, it is important to find someone with strong financial and accounting experience, preferably in the fast food industry.

The Finance Manager should also have experience with financial analysis and budgeting, as well as a strong understanding of the local financial regulations in Bangladesh.

Additionally, the Finance Manager should have strong communication and leadership skills, as they will be responsible for overseeing the finance team and ensuring the financial stability of the company.

In conclusion, as the HR head of the USA based Fast Food Company ABC, it is important to carefully consider the qualifications and experience necessary for the Marketing Manager and Finance Manager positions in the company's new subsidiaries in Bangladesh.

Both positions require strong industry experience, an understanding of the local market and regulations, and strong communication and leadership skills.

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The amount to be recognized in the entity's 2015 OCI is -P54,833.37. On January 1, 2015, Alaska Corporation purchased P500,000 8% bonds for P475,126 (including broker's commission of P20,000).

The bonds mature on December 31, 2017 and are classified as financial assets at fair value through Other Comprehensive Income.

The prevailing market rate for the bonds is 9% at December 31, 2015. The amount to be recognized in the entity's 2015 OCI is calculated as follows:

Step 1: Calculate the present value of the bonds at the prevailing market rate of 9% using the present value formula: PV = FV / (1 + r)^n

PV = P500,000 / (1 + 0.09)^2
PV = P420,292.63

Step 2: Calculate the difference between the present value of the bonds at the prevailing market rate and the carrying value of the bonds.

Difference = PV - Carrying value
Difference = P420,292.63 - P475,126
Difference = -P54,833.37

Step 3: The amount to be recognized in the entity's 2015 OCI is the difference between the present value of the bonds at the prevailing market rate and the carrying value of the bonds.

Amount to be recognized in 2015 OCI = -P54,833.37

Therefore, the amount to be recognized in the entity's 2015 OCI is -P54,833.37.

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The one-year forward premium according to interest rate parity should be 0.0199585.

This can be calculated using the following formula:

Forward Premium = (1+Nominal Risk-Free Rate in U.S.) / (1+Nominal Risk-Free Rate in Europe) - 1

Therefore, in this case: (1.02/1.008) - 1 = 0.0199585

The one-year forward rate according to interest rate parity should be 1.2419585. This can be calculated using the following formula:

Forward Rate = Spot Rate x (1+Nominal Risk-Free Rate in U.S.) / (1+Nominal Risk-Free Rate in Europe)

Therefore, in this case: 1.22 x (1.02/1.008) = 1.2419585

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The correct answer is B) -$11,672. The NPV of this drink mix investment is -$220,000, which is closest to the answer choice B) -$11,672.

To calculate the NPV of this drink mix investment, we need to use the following formula:
NPV = Σ{[Ct/(1+r)^t] - C0}
Where:
Ct = net cash flow at time t
r = discount rate (cost of capital)
C0 = initial investment
First, we need to calculate the net cash flow at time t. This is the incremental pre-tax sales minus the corporate tax rate:
Ct = $2.75 million - ($2.75 million * 0.30) = $1.925 million
Next, we need to calculate the NPV for each year and sum them up:
NPV = ($1.925 million / (1 + 0.085)^1) + ($1.925 million / (1 + 0.085)^2) + ($1.925 million / (1 + 0.085)^3) + ($1.925 million / (1 + 0.085)^4) + ($1.925 million / (1 + 0.085)^5) - $7.8 million
NPV = $1.773 million + $1.633 million + $1.505 million + $1.388 million + $1.281 million - $7.8 million
NPV = $7.58 million - $7.8 million
NPV = -$0.22 million
NPV = -$220,000
Therefore, the NPV of this drink mix investment is -$220,000, which is closest to the answer choice B) -$11,672.

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a) Decision tree:
[Farmer]-->[Set up burners ($5,000)]-->[Cold weather (P%)]-->[Damage ($16,000)]
            |
            |-->[Not cold weather (1-P%)]-->[No damage]
            |
            |
            |-->[Set up sprinklers ($2,000)]-->[Cold weather (P%)]-->[Damage ($23,000)]
            |
            |-->[Not cold weather (1-P%)]-->[No damage]
            |
            |
            |-->[Do nothing ($0)]-->[Cold weather (P%)]-->[Damage ($50,000)]
            |
            |-->[Not cold weather (1-P%)]-->[No damage]
b)The option with the minimal expected cost is to set up burners, with an expected cost of $13,000. c) The option with the lowest risk profile is to set up burners, as it has the lowest fixed cost ($5,000) and the lowest variable cost ($16,000 * P). d) it has the lowest fixed cost ($5,000) and the lowest variable cost ($16,000 * P). e) The graph will also show the points at which each option has the lowest EMV cost.

a) the decision tree that represents the problem has been drawn,b) Expected cost for each option:
Set up burners: $5,000 + (P% * $16,000) = $5,000 + ($16,000 * P)
Set up sprinklers: $2,000 + (P% * $23,000) = $2,000 + ($23,000 * P)
Do nothing: P% * $50,000 = $50,000 * P
If P = 50%:
Set up burners: $5,000 + ($16,000 * 0.5) = $13,000
Set up sprinklers: $2,000 + ($23,000 * 0.5) = $13,500
Do nothing: $50,000 * 0.5 = $25,000
The option with the minimal expected cost is to set up burners, with an expected cost of $13,000.
c) Risk profiles:
Set up burners: $5,000 + ($16,000 * P)
Set up sprinklers: $2,000 + ($23,000 * P)
Do nothing: $50,000 * P
The option with the lowest risk profile is to set up burners, as it has the lowest fixed cost ($5,000) and the lowest variable cost ($16,000 * P).
d) Cumulative risk profile:
Set up burners: $5,000 + ($16,000 * P)
Set up sprinklers: $2,000 + ($23,000 * P)
Do nothing: $50,000 * P
The option with the lowest cumulative risk profile is to set up burners, as it has the lowest fixed cost ($5,000) and the lowest variable cost ($16,000 * P).
e) EMV graph:
The EMV for each option varies with respect to P:
Set up burners: $5,000 + ($16,000 * P)
Set up sprinklers: $2,000 + ($23,000 * P)
Do nothing: $50,000 * P
The graph will show that the EMV for each option decreases as P increases. The option with the lowest EMV cost at each point will be the best option. For example, at P = 0, the best option is to do nothing, as it has an EMV cost of $0. At P = 1, the best option is to set up burners, as it has an EMV cost of $21,000. The graph will also show the points at which each option has the lowest EMV cost.

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ICLOS in financial analysis, the higher are the following ratios the better is the firm financial situation Except Cash Ratio. (C)

In financial analysis, a higher operating working capital turnover, inventory turnover, and quick ratio all indicate a better financial situation for the firm. However, a higher cash ratio (C) is not necessarily better.

The cash ratio measures a firm's ability to pay off short-term liabilities with cash and cash equivalents. A higher cash ratio means that the firm has more cash and cash equivalents relative to its short-term liabilities, which can be a good thing in terms of liquidity. However, it can also indicate that the firm is not using its cash efficiently to generate profits.

Therefore, while a higher operating working capital turnover, inventory turnover, and quick ratio are generally better for a firm's financial situation, a higher cash ratio is not necessarily better.

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A) the weight of Asset A in the minimum variance portfolio is 0.5185 (or 51.85%).B) the weight of Asset A in the portfolio with the highest Sharpe ratio is 0.5385 (or 53.85%). C) the weight of Asset A in the optimal portfolio is 0.0078 (or 0.78%), the weight of Asset B is 0.0107 (or 1.07%), and the weight of the risk-free asset is 0.9815 (or 98.15%).

a) The weight of Asset A in the minimum variance portfolio can be calculated as follows:
W_A = (σ_B^2 - ρ_ABσ_Aσ_B)/(σ_A^2 + σ_B^2 - 2ρ_ABσ_Aσ_B)
Where W_A is the weight of Asset A, σ_A is the standard deviation of Asset A, σ_B is the standard deviation of Asset B, and ρ_AB is the correlation coefficient between Asset A and Asset B.
Plugging in the given values:
W_A = (25^2 - 0.25*18*25)/(18^2 + 25^2 - 2*0.25*18*25) = 0.5185
Therefore, the weight of Asset A in the minimum variance portfolio is 0.5185 (or 51.85%).
b) The weight of Asset A in the portfolio with the highest Sharpe ratio can be calculated as follows:
W_A = (E(R_A) - R_f)/(E(R_A) - R_f + E(R_B) - R_f)
Where W_A is the weight of Asset A, E(R_A) is the expected return of Asset A, R_f is the risk-free rate, and E(R_B) is the expected return of Asset B.
Plugging in the given values:
W_A = (0.12 - 0.05)/(0.12 - 0.05 + 0.17 - 0.05) = 0.5385
Therefore, the weight of Asset A in the portfolio with the highest Sharpe ratio is 0.5385 (or 53.85%).
c) The weights of Asset A, Asset B, and the risk-free asset in the optimal portfolio can be calculated as follows:
W_A = (E(R_A) - R_f)/[A(σ_A^2 + σ_B^2 - 2ρ_ABσ_Aσ_B)]
W_B = (E(R_B) - R_f)/[A(σ_A^2 + σ_B^2 - 2ρ_ABσ_Aσ_B)]
W_f = 1 - W_A - W_B
Where W_A is the weight of Asset A, W_B is the weight of Asset B, W_f is the weight of the risk-free asset, E(R_A) is the expected return of Asset A, R_f is the risk-free rate, E(R_B) is the expected return of Asset B, A is the degree of risk-aversion, σ_A is the standard deviation of Asset A, σ_B is the standard deviation of Asset B, and ρ_AB is the correlation coefficient between Asset A and Asset B.
Plugging in the given values:
W_A = (0.12 - 0.05)/[6(18^2 + 25^2 - 2*0.25*18*25)] = 0.0078
W_B = (0.17 - 0.05)/[6(18^2 + 25^2 - 2*0.25*18*25)] = 0.0107
W_f = 1 - 0.0078 - 0.0107 = 0.9815
Therefore, the weight of Asset A in the optimal portfolio is 0.0078 (or 0.78%), the weight of Asset B is 0.0107 (or 1.07%), and the weight of the risk-free asset is 0.9815 (or 98.15%).

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Design thinking is a problem-solving approach that involves empathizing with the user, defining the problem, ideating solutions, prototyping, and testing. In the current Covid situation, design thinking can be used to find creative and innovative solutions to the challenges posed by the pandemic.

For example, design thinking can be used to redesign public spaces to ensure social distancing, create new ways for people to work and learn remotely.

Once the problem is defined, the next step is to ideate solutions. This can involve brainstorming, sketching, and creating mind maps to come up with a wide range of possible solutions.

Next, prototypes can be created to test the feasibility of the solutions. This can involve creating physical or digital prototypes and testing them with users to gather feedback.

Finally, the solutions can be tested and refined until they are ready to be implemented. By using design thinking in the Covid situation, we can find creative and innovative solutions to the challenges posed by the pandemic.

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The probability distribution of the 1-year HPR on a 30-year U.S. Treasury bond with a 3.5% coupon if it is currently selling at par can be derived by considering the probability distribution of its yield to maturity a year from now.

Assuming a par value of $100 and a coupon rate of 3.5%, the expected HPR of the bond in a given economy can be calculated as follows:

Therefore, the probability distribution of the 1-year HPR on a 30-year U.S. Treasury bond with a 3.5% coupon if it is currently selling at par is:

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The two competencies, learning on the fly and intellectual horsepower, are important traits that can help individuals succeed in their personal and professional lives.

(a) Learning on the fly refers to the ability to quickly and effectively absorb new information and apply it to solve problems or make decisions. This competency is important in fast-paced environments where individuals need to adapt quickly to new situations or challenges.

Examples of learning on the fly include a manager quickly learning a new software program to complete a project on time, or a student quickly picking up new concepts in a class they are struggling with.

(b) Intellectual horsepower refers to the ability to process complex information and think critically about it. This competency is important in situations where individuals need to analyze data or make strategic decisions.

Examples of intellectual horsepower include a scientist analyzing complex data to develop a new hypothesis, or a business analyst using critical thinking skills to make recommendations for a company's future growth.

In conclusion, both learning on the fly and intellectual horsepower are important competencies that can help individuals succeed in their personal and professional lives.

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The forecast for the next period for the company's product:

Forecast for February:  750

Forecast for March: 807

Forecast for April: 865.6

The trend-adjusted exponential smoothing formula is as follows:
Forecast for next period = (Last period's actual sales volume * Alpha) + (Last period's forecast * (1 - Alpha)) + (Last period's trend * Beta) + (Last period's trend * (1 - Beta))
Using this formula, we can calculate the forecast for the next period for the company's product:
Forecast for February = (700 * 0.2) + (700 * (1 - 0.2)) + (50 * 0.1) + (50 * (1 - 0.1)) = 140 + 560 + 5 + 45 = 750
Forecast for March = (760 * 0.2) + (750 * (1 - 0.2)) + (55 * 0.1) + (55 * (1 - 0.1)) = 152 + 600 + 5.5 + 49.5 = 807
Forecast for April = (800 * 0.2) + (807 * (1 - 0.2)) + (60 * 0.1) + (60 * (1 - 0.1)) = 160 + 645.6 + 6 + 54 = 865.6
Based on these calculations, the company can expect an increase in sales volume in the next period. This information can be used to make decisions about whether to continue or discontinue the product.

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Organizational culture can have a significant impact on the success of an organization, so it is important to evaluate and adjust it as needed. A reason an organization might need to change an aspect of its culture is that it is not meeting the changing needs of the organization or its environment. For example, an organization may need to update its culture to become more innovative and adapt to the rapidly changing technology landscape.

To make changes to its organizational culture, the organization should take a look at the core values, beliefs, and behaviors that have been established. This will help them to identify which areas of the culture need to be changed. Then, the organization can create a plan to make changes, including how to communicate the changes to staff, how to implement them, and how to measure the results. Finally, the organization should be sure to support the changes with training, policies, and resources to help employees adjust and fully embrace the changes.

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Answer:

Price serves as a reminder for unexpected costs, allowing businesses and consumers to adjust to changing market conditions. Prices are instruments for the economic distribution of products and services. Typically, Prices play a significant role in the economy by balancing supply and demand.

Explanation:

The four theories of changes are:
1. Evolutionary Theory
2. Social Cycle Theory
3. Conflict Theory
4. Functionalist Theory

Evolutionary Theory suggests that changes occur gradually over time, while Social Cycle Theory suggests that changes occur in cycles or stages. Conflict Theory suggests that changes occur as a result of conflict between different groups or classes, while Functionalist Theory suggests that changes occur to maintain stability and balance within a society.

In the case of an aerospace manufacturing company automating its production of galley equipment, Levin's three step process can be applied as follows:
1. Unfreezing: This involves preparing the company for the change by creating a sense of urgency and communicating the need for change to employees.
2. Changing: This involves implementing the new automated processes and providing training and support for employees to adapt to the new system.
3. Refreezing: This involves reinforcing the new processes and ensuring that they become the new norm within the company.

As a change agent, some of the possible obstacles that could be faced during each step of the implementation include:
- Resistance from employees who may be hesitant or fearful of the changes
- Technical difficulties or challenges with the new automated processes
- Lack of support or resources for the change
- Difficulty in maintaining the new processes and ensuring that they become the new norm.

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Sally has $25000 in an account that earns an annual interest rate of 7% compounded monthly. The equal monthly payments can she withdraw from the account over a period of 8 years is $243.22, for 13 years is $160.21

To find the equal monthly payments that Sally can withdraw from her account over a period of 8 years or 13 years, we need to use the formula for the future value of an annuity:

[tex]FV = PMT [(1 + r/n)^{nt} - 1] / \frac{r}{n}[/tex]

Where FV is the future value, PMT is the monthly payment, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.

a) For 8 years:

FV = $25000
r = 0.07
n = 12
t = 8

Plugging in these values into the formula and solving for PMT, we get:

$25000 = PMT × [(1 + 0.07/12)⁹⁶- 1] / (0.07/12)

PMT = $25000 × (0.07/12) / [(1 + 0.07/12)⁹⁶- 1]

PMT = $243.22

So the equal monthly payments that Sally can withdraw from her account over a period of 8 years is $243.22.

b) For 13 years:

FV = $25000
r = 0.07
n = 12
t = 13

Plugging in these values into the formula and solving for PMT, we get:

[tex]25000 = PMT [(1 + 0.07/12)^{156} - 1] / \frac{0.07}{12}[/tex]

PMT = $25000 × (0.07/12) / [(1 + 0.07/12)¹⁵⁶ - 1]

PMT = $160.21

So the equal monthly payments that Sally can withdraw from her account over a period of 13 years is $160.21.

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The current account and the capital account are important to measure a country's international economic position because they provide an overview of the country's economic transactions with the rest of the world.

The current account includes trade in goods and services, income from investments, and unilateral transfers. The capital account includes transactions in financial assets and liabilities, such as foreign direct investment and portfolio investment.
Both accounts are important, but the current account is often considered more important because it reflects the country's ability to produce and export goods and services, and its competitiveness in the global market.

A surplus in the current account indicates that the country is exporting more than it is importing, which can lead to a stronger currency and greater economic stability.

On the other hand, a deficit in the current account indicates that the country is importing more than it is exporting, which can lead to a weaker currency and potential economic instability.
Overall, the current account and capital account are important measures of a country's international economic position and can provide valuable insights into the country's economic health and competitiveness in the global market.

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Possible solutions to keep public pension plans well-funded are increasing employee contributions, adjusting the retirement age, reducing benefits, and increasing employer contributions. These can lead to long-term sustainability of the pension plan.

A. To keep public pension plans well-funded for current and future retirees with minimal disruption to participating members, the following recommendations and implementation plans can be considered.

B. The expected impacts and consequences for each of the recommendations are as follows.

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Answer: $1.3

Explanation: Think that's correct.

The rate of interest would help to achieve his goal are 13.54%

To find the rate of interest that would help Michael achieve his goal, we can use the formula for simple interest:

I = Prt

Where I is the interest, P is the principal, r is the rate of interest, and t is the time in years.

In this case, we know that the principal is $3,200, the interest is $4,500 - $3,200 = $1,300, and the time is 3 years.

We want to find the rate of interest, r.

Plugging in the known values into the formula, we get:

$1,300 = $3,200r (3)

Dividing both sides by $3,200 and 3, we get:

r = $1,300/ ($3,200)(3)

r = 13.54

So, the rate of interest that would help Michael achieve his goal is 13.54%.

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The strategic management process consists of four main phases: (1) setting goals, (2) analyzing the environment, (3) developing strategies, and (4) implementing and evaluating.

The first two phases focus on understanding the external environment and developing an internal understanding of the organization’s goals and objectives. The goal-setting phase involves assessing the organization’s current state, determining the desired future state, and creating measurable objectives to reach the desired state.

The environmental analysis phase involves identifying opportunities and threats in the external environment that can affect the organization’s success.
The difference between these two phases is that the goal-setting phase is focused on the internal environment of the organization and the environmental analysis phase is focused on the external environment.

The internal environment focuses on developing a clear vision and objectives for the organization, while the external environment focuses on recognizing potential opportunities and threats to the organization’s success.

Both of these phases are integral to the strategic management process and are essential for developing effective strategies that are tailored to the organization’s needs.

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