No, I will not stand with my friend's opinion that a government should exercise its power rigorously to implement its taxation policy.
It is important for a government to be fair and just in its implementation of taxation policies. Exercising power rigorously can lead to unequal treatment of citizens and can potentially harm those who are already struggling financially. It is important for a government to take into consideration the needs and circumstances of its citizens when implementing taxation policies. Additionally, a government should be transparent and accountable in its use of taxation revenue in order to maintain trust and support from its citizens.
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Ying is a financial analyst looking to retire in 40years. After retirement, he expects that he would live for another 25 years till death and would like to be paid $20,000 per year at the beginning of each year to cover expenses and other things. His current income from his job pays $50,000 per year. He is looking to invest in an RRSP giving him a return of approximately 4% per year. He currently has a 0 (zero) RRSP balance.
A. If he expects that his income would increase by 3% each year, what would be his payment at the end of year 1 if he increases his savings by 1.5% yearly.
B. What would be the answer above he had previously saved $30000 in his RRSP?
A. his payment at the end of year 1 if he increases his savings by 1.5% yearly is $50,727.50. B . If he had previously saved $30000 in his RRSP ,it will be $81,927.50.
A) If Ying expects his income to increase by 3% each year, his income at the end of year 1 would be $50,000 x 1.03 = $51,500.
If he increases his savings by 1.5% yearly, his savings at the end of year 1 would be
$51,500 x 0.015 = $772.50.
Therefore, his payment at the end of year 1 would be
$51,500 - $772.50 = $50,727.50.
B) If Ying had previously saved $30,000 in his RRSP, his RRSP balance at the end of year 1 would be
$30,000 x 1.04 = $31,200.
Therefore, his payment at the end of year 1 would be $50,727.50 + $31,200 = $81,927.50.
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Case study:Elliot, Chief Financial Officer of the U.K. Bank, spoke: "Look, we are facing a loss of GBP500 million, a deficit in the second year. If we outsource our call centre work to India, we can reduce our labour costs by at least one third. We have a moral responsibility to our shareholders to operate as efficiently as possible."Laura, HR Manager, responded: "Yes Elliot, and we have to be realistic. Why should our British jobs be shipped offshore to India? Our concern is with the welfare of our British workers. Why should our monies end up in the pockets of foreign workers?"Elliott snapped back, "For the very good reasons that the work will be done at much lower cost and with much higher quality results!"Laura smiled. "Elliot, wake up. You know how politically sensitive the banking industry is. Imagine what the press will do to us when this becomes public knowledge.""Yes", Jason interrupted, manager of retail banking. "Can you think how many politicians will be prepared to stand up and publicly declare that they are in favour of exporting British jobs? Outsourcing may be okay, where companies are not subject to the public and political pressures. Can you imagine the reaction of the finance sector unions and the politicians when we announce that the bank is going to do away with 8,000 jobs? And don’t forget we now have UK Parliamentary general election very soon.""Okay, I take your point" said Elliot. "But given the size of our loss, we really have to face up to the alternatives – cut services or increase fees. The whole aim of outsourcing is to maximize value by saving money and improving services. Surely that is what we are all about?"Question 1(a) Explain the term stakeholder.(b) Refer to the organization described in the case above. Identify and discuss the stakeholder groups and their interests.Total 25 marksQuestion 2(a) The management is considering offshoring. What is meant by offshoring? Discuss the pros and cons of offshoring in the case?(b) From the HR perspective, what HR challenges and issues would you anticipate in dealing with offshoring the call centre to India as reflected in the situation?
1.(a) A stakeholder is any individual, group, or organization that has an interest in or is affected by the decisions and actions of an organization.(b) In the case of the U.K. Bank, the main stakeholder groups are Shareholders,Employees,Customers,Local communities.2.(a) Offshoring is the practice of moving business operations or services to another country in order to take advantage of lower labor costs and other benefits. (b) From an HR perspective, there are several challenges and issues that the bank may face in dealing with offshoring its call center to India.
Question 1:
a.Stakeholders can include employees, customers, shareholders, suppliers, local communities, and government regulators.
(b) In the case of the U.K. Bank, the main stakeholder groups are:
- Shareholders: They are interested in maximizing profits and minimizing losses.
- Employees: They are interested in keeping their jobs and maintaining their standard of living.
- Customers: They are interested in receiving high-quality services at reasonable prices.
- Government regulators: They are interested in ensuring that the bank operates in a legal and ethical manner.
- Local communities: They are interested in maintaining employment levels and economic stability.
Each of these stakeholder groups has different interests, and the bank's decision to outsource its call center work to India will affect each group in different ways. For example, shareholders may benefit from reduced labor costs, but employees may lose their jobs and local communities may suffer from the loss of income.
Question 2:
a.In the case of the U.K. Bank, the main advantage of offshoring its call center work to India is the potential for cost savings. However, there are also several potential disadvantages, including the loss of jobs for British workers, negative public and political reactions, and the potential for lower quality of services.
b.These include managing the transition of employees from the U.K. to India, dealing with potential cultural differences and language barriers, and ensuring that the quality of services provided by the Indian call center is up to the bank's standards.
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You are thinking about an investment opportunity. To implement the opportunity, you need to invest $5 million (C0). The investment will produce Q = 30,000 units of products every year. The price of the product P is $40 per unit and the unit cost is $25. Your discount rate is 6 per cent per year. Calculate the NPV if you invest today.
The NPV of the investment opportunity is $750,000. To calculate the Net Present Value (NPV) of the investment opportunity, use the formula:
NPV = Σ t=0 ∞ (Q * (P - C) / (1 + r)t - C0)
where
Q = 30,000 units of product per year
P = $40 per unit
C = $25 unit cost
r = 6% discount rate
C0 = $5 million investment
t = 0 (for present value)
Plugging in the values into the formula, we get:
NPV = 30,000 * ($40 - $25) / (1 + 0.06)0 - 5,000,000
NPV = $750,000
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The idea that media and, by extension, society, is best studied from the bottom-up by focusing on what people do with media rather than what media do to people is best illustrated by researching which of the following concepts:Select one:a.Media Institutionsb.Media Technologiesc.Social Institutionsd.Everyday life
Option - D: The idea that media and, by extension, society, is best studied from the bottom-up by focusing on what people do with media rather than what media do to people is best illustrated by researching the concept of Everyday life.
This approach focuses on how people use media in their daily lives and how it impacts their interactions, beliefs, and behaviors. It emphasizes the agency of the individual in their media consumption and the importance of understanding the social context in which media is used. This perspective is often associated with cultural studies and is sometimes referred to as the "active audience" approach.Thus the correct answer is Option D: Everyday life.
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Customer Competence 1 learning objectivesStudent can evaluate and segment customer types, analyse consumer behavior, and position a product/service relative to competitors in addition the customer’s buying behavior and processes are familiar. S/he can recognize and follow customer needs and focus on customer experience in the different stages of the customer journey and lifecycle.Individual Assignment for this course1. Tell about a customer buying behavior in theory perspective and reflect it in any business familiar to you. Give practical examples2. Tell briefly what is a Customer journey? Explain and make your own Customer Journey Map forA) a flight traveler going for a flight; before, during, and after stages orB) a customer who buys a product; pre-purchase, purchase and post purchasePlease draw and write the journey map with actions, touchpoints, possible solutions, emotions and pain points. The implementation of the map is free3. Consider what challenges in developing the customer experience in different businesses are? Choose one industry that is most familiar to you and give practical examples and your own reflections and arguments
In terms of customer buying behavior, the main concept is that customers can be segmented into different types and behaviours based on their individual characteristics, needs, and values. Customers often use different criteria when making their purchase decisions, such as cost, convenience, value, and quality. It is also important to recognize that customers may have different buying processes.
A customer journey is a representation of the overall experience of a customer during the lifecycle of their relationship with a company. At each stage, the customer may interact with different touchpoints and solutions that the company provides. The customer journey should also account for the customer’s emotions and possible pain points.
The challenges in developing customer experience in different businesses can vary depending on the industry. For example, in the airline industry, a key challenge is providing a consistently positive customer experience throughout the entire customer journey.
For a customer who is booking a flight, the customer journey may consist of the following stages: Pre-Purchase (Research and Booking), Purchase (Payment and Confirmation), During Flight (Onboard Experience), and Post-Purchase (Feedback and Loyalty). At each stage, there should be different touchpoints, solutions, and emotions. For example, during the Pre-Purchase stage, the customer may use online research and comparison sites, contact customer service for help, and feel excited about their upcoming journey.
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Skillful marketing is a never-ending pursuit. a): True b): FalseCommunicating the value is one among three phases of value creation and delivery sequence.a): True b): FalseHow many components characterize holistic marketing?a): 4 b): 5 c): 6 d): None of the above
a.) Skillful marketing is a never-ending pursuit - True.
b.) Communicating the value is one among three phases of value creation and delivery sequence - False.
c.) How many components characterize holistic marketing - None of the above
a) True. Skillful marketing is indeed a never-ending pursuit, as it requires constant attention to changing consumer needs and preferences, as well as changes in the competitive landscape. Marketers must continually adapt their strategies and tactics to remain relevant and effective
.b) True. Communicating the value of a product or service is an essential part of the value creation and delivery sequence. It involves clearly conveying the benefits and features of the product or service to potential customers in order to generate interest and drive sales.
c) 4. Holistic marketing includes four components: relationship marketing, integrated marketing, internal marketing, and socially responsible marketing. Each of these components is designed to ensure that all aspects of the marketing process are aligned and working together to create value for customers and the company.
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Identify the capabilities that reside within Tesla Motors Inc. Evaluate the extent to which these capabilities provide the company with a competitive advantage (Read relevant research articles and case studies - online).
The capabilities that reside within Tesla Motors Inc. include innovation, technological advancement, and strong branding.
Innovation: Tesla is known for its innovative approach to the automotive industry. The company's use of electric powertrains, over-the-air software updates, and autopilot technology set it apart from its competitors.
Technological Advancement: Tesla's electric vehicles are among the most technologically advanced in the world. The company's use of lithium-ion battery technology allows its vehicles to have a longer range than many of its competitors.
Strong Branding: Tesla's strong branding has made it one of the most recognizable and desirable brands in the automotive industry. The company's emphasis on sustainability and luxury appeal to a wide range of consumers.
These capabilities provide Tesla with a competitive advantage by allowing the company to differentiate itself from its competitors and attract a loyal customer base. However, it is important to note that other companies are also investing in electric vehicle technology and may eventually catch up to Tesla's capabilities. It is crucial for Tesla to continue innovating and staying ahead of its competitors in order to maintain its competitive advantage.
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The Investment Company Act of 1940, often just called the "’40 Act," is one of the legislative cornerstones of the American financial system. Mutuals Funds are an example of an investment vehicles that must be registered under the Act. As a result, Mutual Funds are often called "40 Act Funds."
True or False
What are the two most important documents an investor should read about a Mutual Fund before investing?
a)The Prospectus and Board Resolutions
b)The Fact Sheet and Form Antecedent #1
c)The Prospectus and the Series Footnotes
d)The Fact Sheet and the Fund Prospectus
The Given statement "The Investment Company Act of 1940, often just called the "’40 Act," is one of the legislative cornerstones of the American financial system. As a result, Mutual Funds are often called "40 Act Funds" is True.
The two most important documents an investor should read about a Mutual Fund before investing The Fact Sheet and the Fund Prospectus. Option D is correct.
1. The Fact Sheet provides a summary of the Mutual Fund's investment objective, performance, fees, and portfolio holdings. It is typically one to two pages long and is designed to be easy to read and understand.
2. The Fund Prospectus, on the other hand, is a more detailed document that includes information about the Mutual Fund's investment strategy, risks, fees, and other important information. It is required by law to be provided to investors before they invest in the Mutual Fund.
3. Both the Fact Sheet and the Fund Prospectus are important documents for investors to read and understand before investing in a Mutual Fund. They provide important information about the Mutual Fund and can help investors make informed investment decisions.
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HANGE AND RESISTANCE TO CHANGEABOUT ARAMCOThe recent outbreak of novel coronavirus (COVID-19) has changed the world as we know it. Many new challenges are faced. The outbreak is moving quickly, and most countries are trying to respond quickly to contain the impact. However, the spread of the virus may continue throughout the upcoming years and impact the operations of many industries for years to come. Accordingly, change has become an urgent need and no longer considered as a luxury or a choice.Taking the SME (Small Medium Enterprises) sector as an example, provide:A report of about 3000 words (10%+/-) that evaluates change and resistance to change. Your evaluation as a change agent should focus on the following:Background of a chosen SME sector you have chosen being it a restaurant, shop, or a service oriented enterprise, etc. that needs to consider change as part of covid-19 pandemic (15 marks).Explain the environmental pressures for change (fashion, demography, external mandate, etc.) and critically analyse the SME sector you have chosen in this context and what were the main drivers towards change (25 marks).Explain how change can take place and what challenges can a change manager face and how s/he should deal with them. Reflect in your answer on the SME sector you have chosen by analysing the nature of changes that took place and challenges faced and how it was dealt with (45 marks).Explain resistance to change and how such resistance can be managed. Analyse the case you have chosen from this perspective by reflecting on the most appropriate approach to manage resistance to change in the SME sector you have chosen (15 marks).
Change and resistance to change are important considerations for small and medium enterprises (SMEs) amidst the COVID-19 pandemic. Environmental pressures such as changes in fashion, demography, and external mandates are some of the drivers of change for SMEs.
Change managers must be prepared to handle various challenges that arise with change, such as resistance from employees. This can be managed by providing incentives, better communication, and an understanding of why change is needed.
For an SME sector such as a restaurant, shop, or service-oriented enterprise, change can take place in different ways. For example, increased focus on safety and hygiene practices, changes in the marketing strategy, shift towards digital services, and changes in operating procedures are some of the changes that an SME may face.
In the case of an SME sector such as a restaurant, shop, or service-oriented enterprise, a change manager could offer incentives such as additional training, flexible work schedules, or additional benefits to encourage employees to accept and embrace change.
In conclusion, change is an important consideration for SMEs in the midst of the COVID-19 pandemic. Environmental pressures such as changes in fashion, demography, and external mandates are some of the drivers of change for SMEs.
Change managers must be prepared to handle various challenges that arise with change, such as resistance from employees. Resistance to change can be managed by having open communication channels and providing incentives.
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Between Brazil and the United States,I want you to write down and explain the possible areas of conflicts during negotiations that may arise between these two countries due to the differences in their cultures. Give examples.
Negotiations between Brazil and the United States can often be difficult due to the different cultural norms and values held by both nations.
For example, Brazilians generally prefer a more individualistic and relationship-focused approach, while Americans tend to prefer a more systematic and task-oriented approach. This can lead to conflicts in areas such as decision-making, communication, and trust.
Other potential areas of conflict could arise due to differences in social expectations, such as respecting authority figures, expectations of openness and honesty, and how people prefer to receive feedback.
For example, Brazilians may prefer a more collaborative and communicative approach to decision-making and may view the lack of respect for authority figures as a sign of disrespect, while Americans may prefer a more authoritative approach and may see openness and honesty as a lack of tact.
These differences in cultural values can create difficulty during negotiations, as both sides may not be comfortable with the other's style.
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Pick one government agency or department and discuss the following questions.
1. Does the organization take full advantage of the technologies available for decision support? Explain why you think so or why you disagree by giving a specific example(s).
One government agency that I will discuss in this answer is the Department of Health and Human Services (HHS).
In my opinion, the HHS does take full advantage of the technologies available for decision support. One specific example of this is their use of data analytics to identify patterns and trends in healthcare data. This allows the HHS to make informed decisions about healthcare policies and programs.
Additionally, the HHS utilizes technologies such as electronic health records and telehealth to improve patient care and reduce healthcare costs. These technologies allow for more efficient and effective decision-making within the agency.
Overall, the HHS's use of technology for decision support helps them to better serve the American public and improve healthcare outcomes.
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COURSE: FINANCIAL MANAGEMENT.
An evaluation of the appropriate sources of financing by MAYBANK MALAYSIA.
PLEASE ANSWER ASAP (1i). You are required to list down the appropriate sources of financing either short-term, medium-term, or long-term financing offered by the chosen by Maybank.
(ii) You are to critically comment on each of the sources of financing in terms of advantages and disadvantages of each source of financing. Your comments should include references to the business and other relevant factors identified from the financial institution and/or external sources.
(iii) All facts must be interpreted.
(i). MAYBANK MALAYSIA offers a variety of funding sources with varying timeframes. These include:
(ii). Each of these sources of funding has its own strengths and weaknesses:
Bank overdrafts are flexible short-term funding sources that can be used to cover temporary liquidity constraints. However, they usually have higher interest rates than other forms of financing and can be terminated by banks at any time.Trade finance is used to finance international trade transactions and helps companies manage cash flow and reduce the risks associated with international trade. However, it can be complicated and requires a thorough understanding of international trade regulations.Working capital loans are used to finance the day-to-day operations of the company. They are usually short-term and have lower interest rates than bank overdrafts. However, collateral may be required and may be difficult to obtain for companies with poor credit ratings. Term loans are used to finance large purchases and investments such as machinery and real estate. They typically offer lower interest rates than short-term financing options, but require collateral and come with tighter repayment terms. Installment payments allow companies to acquire assets without paying full cost upfront. However, the company does not own the assets until the final payment is made and interest rates can be higher than other forms of financing. Leasing allows a company to use an asset without owning it. This is beneficial for businesses that need to upgrade their equipment on a regular basis. However, the company does not own the assets and may pay more in the long run. Project finance is used to finance major projects such as infrastructure and energy projects. Multiple lenders are usually involved and arrangements can be complicated. However, it can be an effective way to fund large projects that may be too risky for a single lender.Islamic finance is based on Islamic principles and can be an attractive option for companies wishing to adhere to these principles. However, it can be more complex than traditional finance and may require a thorough understanding of Islamic finance principles.Syndicated loans involve multiple lenders and can be used to finance large projects and acquisitions. They typically offer lower interest rates than other forms of financing, but can be complex to arrange and require more extensive due diligence.(iii. In summary, MAYBANK MALAYSIA offers a variety of sources of funding over a range of time periods for companies of all sizes. Each funding source has its own strengths and weaknesses, and businesses should carefully consider their needs and funding terms before making a decision.
Maybank Malaysia, also known as Malayan Banking Berhad, is one of the largest banking groups in Malaysia. It was founded in 1960 and offers a wide range of financial services to its customers, including personal banking, commercial banking, investment banking, and Islamic banking. Maybank Malaysia has a strong presence in Malaysia and operates through a network of branches, ATMs, and digital channels. It also has a presence in other countries in Southeast Asia, as well as in China, Hong Kong, and the United States. The bank is committed to providing innovative and convenient financial solutions to its customers and has won numerous awards for its products and services.
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You are performing an external audit on the financial statements of ABC Limited. The following is the income statement of ABC Limited: ABC Limited Income Statement For the Period Ending December 31, 2018 Revenue $ 6,200,000 Cost of Sales 3.000.000 Gross Margin 3.200.000 Expenses Wages 1,000,000 Administrative 300,000 Advertising 117.000 Office Supplies 48,000 Insurance 105.000 Total Expenses 1.570.000 Profit before Tax $ 1.630.000 If materiality is set at 9% of profit before tax, which balances in the above income statement would be considered material? a. Revenue, Cost of Sales, Wages, Administrative b. Revenue, Advertising, Wages, Administrative c. Insurance, Cost of Sales, Wages, Administrative d. Revenue, Cost of Sales, Wages, Office Supplies
balances in the income statement considered material would be Revenue, Cost of Sales, Wages, Administrative. So option A is correct.
How and why is an income statement used?A company's revenue and expenses are listed on an income statement, which is a financial statement. It also shows the profit or loss a company has experienced over a certain period of time. You can better understand your company's financial status with the help of the income statement, balance sheet, and cash flow statement.
The expense, income, gains, and losses from the income statement can be plugged into an equation to calculate a company's net profit or loss for a specific time period. By providing you with this knowledge, you can make the quick decisions required to keep your business's finances stable.
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Suppose that you have an equity of 100,000 NOK (Norwegian kroner). In the end of May 2019 you want to invest this amount into two securities, each of them can be acquired for 100 NOK per unit at this point of time. Assume that each of these securities is perfectly divisible or multipliable. Once invested, you have to keep these securities until they expire in the end of May 2024. The streams of cash flows generated per 100 NOK invested into the securities are given as follows:
End of may 2020 2021 2022 2023 2025
Security 1 40 40 40 40 40
Security 2 0 30 50 70 90
For additional financing your bank will provide you with at most 100,000 NOK of a constant payment loan (CPL, annuity loan) with an interest rate (????????) of 8 % and a maturity (TT) of 5 years. In addition, you can draw at most 50,000 NOK on a credit line with an interest rate of 10 %. Idle cash can be deposited on a banking account which does not pay any interest.
Your tasks are the following:
(a) Suppose that you want to maximize your wealth in the end of May 2024: Find the optimal amount of money to be invested into the two securities. determine the optimal financing of this investment.
(b) This part is difficult, not relevant that relevant and voluntary! Now assume that the payments from the securities are not given with certainty. For simplicity assume that all cash flows are uniformly distributed with an interval (spread) of 20.
a. Generate 20 possible future scenarios for each security.
b. Maximize your expected wealth in the end of May 2024 considering that the uncertainty in the returns affects both credit line and bank account. Think about an appropriate structure of your Excel-sheet that makes this task easier.
c. Determine expected return and the return’s standard deviation.
d. Generate a risk-return diagram for different equity ratios.
Please help me to implement and solve this in excel.
In order to solve this problem, you will need to use the concepts of net present value (NPV) and internal rate of return (IRR) in order to determine the optimal amount of money to be invested into the two securities and the optimal financing of this investment.
First, you will need to create a table in Excel with the cash flows for each security for each year. Next, you will need to calculate the NPV for each security using the formula:
[tex]NPV = CF0 + CF1/(1+IRR) + CF2/(1+IRR)^2 + ... + CFn/(1+IRR)^n[/tex]
Where CF0 is the initial investment, CF1 is the cash flow in the first year, CF2 is the cash flow in the second year, and so on.
Once you have calculated the NPV for each security, you can use this information to determine the optimal amount of money to be invested into each security. The optimal amount of money to be invested into each security will be the amount that maximizes the NPV.
Next, you will need to determine the optimal financing of this investment. This will involve comparing the cost of financing the investment with the CPL and the credit line to the return on the investment. The cost of financing the investment with the CPL will be the sum of the interest payments over the 5-year period, and the cost of financing the investment with the credit line will be the sum of the interest payments over the 5-year period plus the principal. You will need to compare these costs to the return on the investment in order to determine the optimal financing of this investment.
Finally, you will need to generate 20 possible future scenarios for each security in order to determine the expected return and the return's standard deviation. You can do this by creating a table in Excel with the possible future scenarios for each security and then calculating the expected return and the return's standard deviation using the formulas:
Expected return = (sum of all possible returns) / (number of possible returns)
[tex]Standard deviation = \sqrt{[(sum of (return - expected return)^2) / (number of possible returns)]}[/tex]
Once you have calculated the expected return and the return's standard deviation, you can generate a risk-return diagram for different equity ratios using Excel's charting tools.
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Define Call and Put currency options and explain how companies can
use these options for hedging.
Call and Put currency options are financial derivatives that allow companies to hedge against foreign exchange risk.
A Call option gives the holder the right, but not the obligation, to buy a certain amount of foreign currency at a specified price within a certain time period. A Put option gives the holder the right, but not the obligation, to sell a certain amount of foreign currency at a specified price within a certain time period.
Companies can use these options for hedging by buying Call options when they expect the value of a foreign currency to increase, and buying Put options when they expect the value of a foreign currency to decrease. This allows them to lock in a certain exchange rate and protect themselves against potential losses from currency fluctuations.
For example, if a company expects the value of the US dollar to increase against the Euro, they could buy a Call option on the US dollar/Euro exchange rate. If the value of the US dollar does increase, they can exercise the option and buy Euros at the lower, specified price. If the value of the US dollar does not increase, they can simply let the option expire and not incur any losses.
Similarly, if a company expects the value of the US dollar to decrease against the Euro, they could buy a Put option on the US dollar/Euro exchange rate. If the value of the US dollar does decrease, they can exercise the option and sell Euros at the higher, specified price. If the value of the US dollar does not decrease, they can simply let the option expire and not incur any losses.
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Call and Put options are financial contracts that grant the buyer the right but not the obligation to purchase (Call) or sell (Put) an underlying asset at a predetermined price within a specified period.
Currency options are contracts that permit the holder to purchase or sell one currency in exchange for another at a specified exchange rate and time period. Companies can use these options to manage their foreign exchange risks or currency risks associated with international trade. These options are used for hedging purposes to protect the company from adverse currency rate movements.
For example, a US-based company that imports goods from Europe could be exposed to foreign exchange risk. If the Euro becomes stronger against the dollar, then the company would have to pay more dollars to purchase the same goods. In this case, the company can buy a Put option to sell Euros and purchase dollars at a predetermined exchange rate. This way, if the Euro falls in value, the company can exercise the Put option and sell Euros at a favorable exchange rate.
Similarly, if the US-based company exports goods to Europe, they could face the risk of the Euro becoming weaker against the dollar, which would reduce their profits. In this case, the company can buy a Call option to purchase Euros at a predetermined exchange rate. If the Euro rises in value, the company can exercise the Call option and purchase Euros at a favorable exchange rate.
In conclusion, companies can use Call and Put options to manage their foreign exchange risks by hedging against adverse currency rate movements. These options are useful for companies engaged in international trade as they provide a cost-effective way of managing currency risks. It is important to note that options can be complex instruments, and companies should seek professional advice before using them as a hedging tool.
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There many modern management patterns that organizations
use.
In this case, discuss the merits and demerits of
employee-centred approach
management by objectives
The employee-centered approach to management is beneficial because it allows for employee creativity, innovation, and increased motivation, which can lead to increased productivity.
Employee-centered approach:
Merits:
1. Employees feel valued and motivated, leading to higher job satisfaction and productivity.
2. It fosters a positive work environment and promotes collaboration among team members.
3. It encourages creativity and innovation as employees are given more autonomy and decision-making power.
Demerits:
1. It can lead to a lack of structure and direction if not implemented properly.
2. It can result in a lack of accountability as employees may not have clear goals or objectives.
3. It can create a sense of entitlement among employees, leading to conflict and dissatisfaction.
Management by objectives:
Merits:
1. It provides clear goals and objectives for employees to work towards, promoting efficiency and productivity.
2. It promotes accountability and responsibility among employees as they are held accountable for achieving their objectives.
3. It allows for better performance measurement and evaluation as objectives are clearly defined.
Demerits:
1. It can lead to a focus on short-term objectives rather than long-term goals.
2. It can create a rigid work environment and stifle creativity and innovation.
3. It can result in a lack of collaboration and teamwork as employees are focused on achieving their own objectives.
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The government created the Federal Deposit Insurance Corporation (FDIC):
The answer is On June 16, 1933, President Franklin Roosevelt signed the Banking Act of 1933, a part of which established the FDIC.
This is how government created the Federal Deposit Insurance Corporation (FDIC).
What is the straightforward definition of insurance?Insurance, usually referred to as insurance coverage or insurance policy, is a contract between the insurer and the insured.
What is insurance, and why is it necessary?Its goal is to lessen financial uncertainty and mitigate unintentional loss. It achieves this by exchanging the promise to pay in the case of a substantial loss for the payment of a small, predictable fee—an insurance premium—to a reputable insurer.
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Two Company Comparison
CONSOLIDATED BALANCE SHEETS
Fiscal Year-End -20xx
Fiscal Year - 20xx
Company A Company B
ASSETS Current assets: Cash $162055 $87148
Accounts Receivable $69541 $157472
Inventory $98118 $128024
Prepaid insurance $124346 $57301
Prepaid rent $158319 $132855
Other $72587 $170352
Total Current Assets Non-Current Assets Land $109144 $181575
Equipment $152782 $115712
Notes receivable $188302 $77961
Total Assets Liabilities Current Liabilities Accounts payable $185309 $56139
Accrued payroll and benefits $183788 $72118
Other $72587 $170352
Total Current Liabilities Non-Current Liabilities Long Term debt $84770 $156446
Other Long Term debt $145647 $174676
Total Non-Current Liabilities Shareholders Equity Common Shares Total Shareholders Equity Liabilities & Sharehoders`Equity Find the Debt Ratio for Company B.
The debt ratio is calculated by dividing its total liabilities by its total assets. So the debt ratio for Company B is 0.568.
The debt ratio for Company B can be calculated by dividing its total liabilities by its total assets.
Total liabilities for Company B = $56,139 (accounts payable) + $72,118 (accrued payroll and benefits) + $170,352 (other current liabilities) + $156,446 (long term debt) + $174,676 (other long term debt) = $629,731
Total assets for Company B = $87,148 (cash) + $157,472 (accounts receivable) + $128,024 (inventory) + $57,301 (prepaid insurance) + $132,855 (prepaid rent) + $170,352 (other current assets) + $181,575 (land) + $115,712 (equipment) + $77,961 (notes receivable) = $1,108,400
Debt ratio for Company B = $629,731 / $1,108,400 = 0.568
Therefore, the debt ratio for Company B is 0.568.
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from You tube "The Secret History of the Credit Card (full documentary) | FRONTLINE"1. Who are the stakeholders in the credit card industry? How does each stakeholder gain or lose in the story?2. What responsibilities does the government uphold in the story? Has the government fulfilled the responsibilities, in your opinion?3. Some argue that consumers are responsible for their spending habits with credit cards. Should credit card companies be blamed for their business tactics? Why or why not?
1. The stakeholders in the credit card industry include banks, credit card companies, and consumers.
2. The government has a responsibility to ensure that the industry operates in a fair and safe manner.
3. Yes. Because it also engages in unethical business practices. The consumer is responsible for their spending habits
1. The stakeholders in the credit card industry include banks, credit card companies, and consumers. Banks and credit card companies gain from high interest rates, fees, and late payments, while consumers lose when they take on more debt than they can handle or when they face unfair practices.
2. The government has a responsibility to ensure that the industry operates in a fair and safe manner. The documentary highlights that the government has failed to do this, as lenders have taken advantage of consumers.
3. It is difficult to assign blame to either the consumer or the credit card company. Ultimately, the consumer is responsible for their spending habits, but the credit card companies are also engaging in unethical business practices. Therefore, both the consumer and the credit card companies should take responsibility for their actions.
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Suppose you manage a $10 million portfolio and you sell $3
million worth of securities and buy $3 million worth of new
securities. your portfolio's turnover will be
30% explain why and show math
The portfolio turnover is the percentage of the portfolio that is bought and sold in a given period. In this case, the portfolio turnover is calculated by dividing the amount of securities bought and sold by the total value of the portfolio.
The portfolio turnover is 60%. This means that 60% of the portfolio was bought and sold during the given period.
In this case, the portfolio turnover is calculated as follows:
Turnover = (Amount of securities bought + Amount of securities sold) / Total value of portfolio
Turnover = ($3 million + $3 million) / $10 million
Turnover = $6 million / $10 million
Turnover = 0.6
Turnover = 60%
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3) Read the scenario. Then, choose the best answer.
While a junior in high school, Javier accepted a job stocking shelves at a local grocery store. He makes an hourly wage of $8.50. He is paid semimonthly and works an average of 20 hours per week.
What is Javier’s annual income?
$8,160
$3,480
$8,840
$13,200
Answer:
$8160
Explanation:
Hourly wage is 8.50
He works 20hours per week
Weekly pay is 8.50x 20 = 170
Semi monthly is twice a month
Semi month he receives 170 x 2= 340
Monthly he receives 340x2 =680
Annual income is 12 months = 680x 12
$8160
Item Prior year Current year
Accounts payable 8,154.00 7,840.00
Accounts receivable 6,080.00 6,682.00
Accruals 969.00 1,537.00
Cash ??? ???
Common Stock 11,321.00 11,897.00
COGS 12,718.00 18,031.00
Current portion long-term debt 4,973.00 4,915.00
Depreciation expense 2,500 2,804.00
Interest expense 733 417
Inventories 4,262.00 4,793.00
Long-term debt 14,270.00 14,644.00
Net fixed assets 50,181.00 54,581.00
Notes payable 4,341.00 9,988.00
Operating expenses (excl. depr.) 13,977 18,172
Retained earnings 28,382.00 29,271.00
Sales 35,119 45,303.00
Taxes 2,084 2,775
What is the firm's dividend payment in the current year?
The dividend payment in the current year can be calculated by using the formula:
Dividend Payment = Beginning Retained Earnings + Net Income - Ending Retained Earnings
First, we need to calculate the net income for the current year. We can do this by using the formula:
Net Income = Sales - COGS - Operating Expenses - Depreciation Expense - Interest Expense - Taxes
Plugging in the values from the table, we get:
Net Income = 45,303.00 - 18,031.00 - 18,172.00 - 2,804.00 - 417.00 - 2,775.00 = 3,104.00
Now we can plug in the values for beginning retained earnings, net income, and ending retained earnings into the formula for dividend payment:
Dividend Payment = 28,382.00 + 3,104.00 - 29,271.00 = 2,215.00
Therefore, the firm's dividend payment in the current year is $2,215.00.
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1 Ms. Uusiku posts a letter to TBA (Pty) Ltd with an offer to buy 1000 shares in the company. The directors agreed, and a letter informing her that the company would allocate the shares was posted in return. After they posted their letter of acceptance, but before she received their letter, she informs the company telephonically that she revokes the offer. Discuss the legal position of the parties. (5 marks)
The legal position of the parties in this scenario is determined by the legal principles of offer and acceptance in contract law.
1 Ms. Uusiku made an offer to TBA (Pty) Ltd to buy 1000 shares in the company. This offer was accepted by the directors of TBA (Pty) Ltd, and they posted a letter of acceptance to Ms. Uusiku.
According to the legal principle of offer and acceptance, a contract is formed when an offer is accepted. In this case, the contract was formed when the directors of TBA (Pty) Ltd posted their letter of acceptance.
However, before Ms. Uusiku received the letter of acceptance, she informed the company that she was revoking the offer. According to the legal principle of revocation, an offer can be revoked at any time before it is accepted.
In this scenario, the offer was already accepted by the directors of TBA (Pty) Ltd before Ms. Uusiku attempted to revoke it. Therefore, the revocation is not valid, and the contract is still binding on both parties.
In conclusion, the legal position of the parties is that a valid and binding contract has been formed, and Ms. Uusiku cannot revoke the offer after it has been accepted by TBA (Pty) Ltd.
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You are hosting an important event (event examples: graduation celebration, family reunion, wedding, etc) and there will be about 100 guests (not fellow students) attending. The event will be for three (3) consecutive days. It is now up to you to make this a successful event. Over the next week you need to identify tasks, set priorities and come up with a plan to make this happen. You have initial budget of $50,000. 0. You must identify at least five (5) areas/tasks where you need to spend this money for the three days of the event, example hall rental, equipment rental, food and drinks, entertainment, etc. You must create an initial budget sheet showing the distribution of the $50,000 for the three days. Finally, due to budget constraint, your inititial budget of $50,000 has been reduced to $35,000. Set your constraints, decide which areas/tasks budget to be adjusted and use excel solver to create your final budget. Submit your plan and your reasoning behind the decisions and why your plan will make the event a success (2 to 3 pages word document double spaced). Also submit your excel spreadsheet showing the distribution of your initial budget of $50,000 and your final budget of $35. 000 with the constraints you set
Planning a successful event for 100 guests for three consecutive days requires careful planning and attention to detail.
There are various tasks that need to be identified and prioritized to ensure the event runs smoothly. In this document, I will identify five areas/tasks where the $50,000 budget needs to be spent in the event, create an initial budget sheet for the three days, and use Excel Solver to create the final budget sheet after adjusting to the budget constraints.
Venue Rental - $20,000: The first and foremost task is to rent a venue that can accommodate 100 guests for three days. The venue should be spacious, easily accessible, and provide basic amenities like lighting, sound system, and air conditioning.
Food and Beverages - $15,000: A major portion of the budget will be spent on catering. The menu should be carefully planned to cater to different dietary requirements, and the food should be of high quality. A variety of beverages, including alcoholic and non-alcoholic options, should also be available.
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Q1. Rami deposits $60,000 today in an account that pays 4.6% p.a. interest, compounding semi-annually. How much can be withdrawn from his account in 10 years. (Show your calculations) (1.5 Mark)
Q2. You invest $2000 at the end of every 6 months at a rate of 7% p.a. compounding semi-annually.
How much money would you have in your account after 8 years? (1.5 Mark)
Q3. A portfolio consists of $100,000 in share A that yield 5% and $150,000 in share B with an expected return of 8%. Share A has a variance of 2% and share B has a variance of 3%. The covariance between returns is 0.00782.
What is the expected return for this $250,000 portfolio? (1 Mark)
What is the variance of the portfolio? (1 Mark)
1.Rami can withdraw $91,117.26 from his account in 10 years.
2.The account will have $39,767.42 after 8 years.
3.The variance of the portfolio is 0.0016.
A1. To find the amount that can be withdrawn from Rami's account in 10 years, we use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Plugging in the given values:
A = $60,000(1 + 0.046/2)^(2*10)
A = $60,000(1.023)^20
A = $91,117.26
A2. To find the amount in the account after 8 years, we use the formula for future value of an annuity:
FV = PMT[((1 + r/n)^(nt) - 1)/(r/n)]
Where FV is the future value, PMT is the payment amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Plugging in the given values:
FV = $2000[((1 + 0.07/2)^(2*8) - 1)/(0.07/2)]
FV = $2000[(1.035)^16 - 1]/(0.035)
FV = $2000[0.6968]/(0.035)
FV = $39,767.42
A3. To find the expected return for the portfolio, we use the formula:
E(R) = wA*R_A + wB*R_B
Where E(R) is the expected return, wA and wB are the weights of the two shares, and R_A and R_B are the expected returns of the two shares.
Plugging in the given values:
E(R) = (100000/250000)*0.05 + (150000/250000)*0.08
E(R) = 0.02 + 0.048
E(R) = 0.068
Therefore, the expected return for the portfolio is 6.8%.
To find the variance of the portfolio, we use the formula:
Var(R) = wA^2*Var(R_A) + wB^2*Var(R_B) + 2*wA*wB*Cov(R_A, R_B)
Where Var(R) is the variance of the portfolio, wA and wB are the weights of the two shares, Var(R_A) and Var(R_B) are the variances of the two shares, and Cov(R_A, R_B) is the covariance between the two shares.
Plugging in the given values:
Var(R) = (100000/250000)^2*0.02 + (150000/250000)^2*0.03 + 2*(100000/250000)*(150000/250000)*0.00782
Var(R) = 0.00032 + 0.00081 + 0.00047
Var(R) = 0.0016
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Your friend’s family recently purchased a new wide screen 3D smart television. They mounted it on the wall of the main living room and all of the male members of the household began referring to it as the "sports TV". As a result, if your friend wanted to watch her favourite drama, she’d have to use her computer if a game was on because it was obvious to all that screening sport was what the TV was made for. Which of the following concepts is best illustrated by this scenario?Select one:a.Moral Economy of the Homeb.Media Ecologyc.Social Shaping of Technologyd.Technological Determinism
The concept that is best illustrated by this scenario is the Social Shaping of Technology. This concept suggests that society and culture shape the development and use of technology.
In this case, the male members of the household have determined that the new TV will be primarily used for watching sports, even though it is capable of displaying other types of media. This decision has been shaped by the social and cultural norms of the household, which prioritize sports viewing over other types of media consumption. As a result, your friend is forced to use her computer to watch her favorite drama, even though the new TV is technically capable of displaying it. This is a clear example of the Social Shaping of Technology in action.
Thus, c. Social Shaping of Technology.
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Ethical dilemma problem 1:
Joni is a financial planner for ABC firm. She provided all of her clients with the same products.
She felt this was OK since she had thoroughly researched them years ago and found them to be
excellent. By concentrating her recommendations with a few firms, she was able to receive
commission bonuses. She never discussed their goals and characteristics with her clients unless
they brought them up. Explain her violations of SEC and CFP regulations. Indicate what should
be done.
CASE ANALYSIS: Brief analysis/summary of the case
• PROBLEM(S): Identify the problems/issues. Describe and define the Regulations and
Standards which were violated.
• SOLUTION(S): Possible Solutions of identified problems/issues - the best strategy that
can be used to solve the problems if this issue occurred at your job. What could you do to
solve the problem?
• RECOMMENDATION(S): Recommendation: what would you recommend in solving
this problem by reviewing the solutions you have the most confidence in. What are the
reasons for the preference? How would you prevent future similar issues if you were the
office manager/or owner of a personal financial planning firm?
• CONCLUSION: Briefly describe how you would implement the recommendations
and/or contingency plan.
Joni violated the Securities and Exchange Commission (SEC) and Certified Financial Planner (CFP) regulations by providing all of her clients with the same products without taking into account their individual goals and characteristics.
This is a violation of the SEC and CFP rules which state that financial planners must always provide advice that is in the best interests of their clients and not based on commission bonuses. The best strategy to solve this problem is for Joni to assess each of her clients' individual goals and characteristics, and then make recommendations for products that meet those needs. To prevent future similar issues, Joni should set a policy that requires her to review the goals and characteristics of each client before making any product recommendations.
Additionally, Joni should also ensure that her clients are informed of any commission bonuses she receives from the companies she recommends products from. To implement the recommendations, Joni should document each client’s individual goals and characteristics and make sure to review it before providing any product recommendations. She should also have a system in place to track commission bonuses and keep her clients informed.
In conclusion, Joni should take steps to ensure that she follows the SEC and CFP regulations, such as assessing each of her clients' individual goals and characteristics, informing them of any commission bonuses, and documenting their goals and characteristics. This will ensure that she is providing her clients with advice that is in their best interest.
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How do you feel about extension and continuous training to
prevent cyber attacks?
Do you think this will make a noticeable difference?
What other prevention measures can be taken?
Extension and continuous training can play a significant role in preventing cyber attacks. By keeping employees up-to-date on the latest threats organizations can reduce the likelihood of successful attacks.
strong password policies, using firewalls and antivirus software other prevention measures can be taken.
This type of training can also help employees identify and respond to suspicious activity, preventing potential breaches before they occur.
In addition to extension and continuous training, there are several other measures that can be taken to prevent cyber attacks.
These include implementing strong password policies, using firewalls and antivirus software, and regularly updating software and systems to address vulnerabilities. It is also important to have a comprehensive incident response plan in place in the event of a cyber attack.
Overall, while extension and continuous training alone may not be enough to prevent all cyber attacks, it can make a noticeable difference when combined with other prevention measures.
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True or False
1) Derivatives are used by corporations as a useful tool for managing certain aspects of a firm's risk.
2) An option derives its value from an underlying asset that is often another security.
3) A hybrid security is neither debt nor equity but instead derives its value from an underlying asset.
4) A financial lease is a cancelable contractual arrangement whereby the lessee agrees to make periodic payments to the lessor, often for five or fewer years, for an asset's services.
5) In a financial lease, the lessor must receive more than the asset's purchase price in order to earn its required return on the investment.
6) The presence of contingent securities such as warrants and stock options affects the reporting of a firm's earnings per share.
7) The conversion ratio can be obtained by dividing the par value of the convertible by the conversion price.
8) A stock purchase warrant gives the holder the right to purchase a certain number of shares of common stock at a specified price over a certain period of time.
9) Contrary to convertibles, warrants provide for the injection of additional equity capital into a firm immediately.
10) Call options are sold with the expectation that the market price of the underlying security will fall while put options are sold with the expectation that the market price of the underlying security will rise.
1) True: Derivatives are used by corporations as a useful tool for managing certain aspects of a firm's risk, such as interest rate risk and currency risk.
2) True: An option derives its value from an underlying asset that is often another security, such as a stock or bond.
3) True: A hybrid security is neither debt nor equity but instead derives its value from an underlying asset, such as a commodity or index.
4) False: A financial lease is a non-cancelable contractual arrangement whereby the lessee agrees to make periodic payments to the lessor, often for five or more years, for an asset's services.
5) True: In a financial lease, the lessor must receive more than the asset's purchase price in order to earn its required return on the investment.
6) True: The presence of contingent securities such as warrants and stock options affects the reporting of a firm's earnings per share, as they can potentially dilute the earnings per share if they are exercised.
7) True: The conversion ratio can be obtained by dividing the par value of the convertible by the conversion price, which is the price at which the convertible can be exchanged for common stock.
8) True: A stock purchase warrant gives the holder the right to purchase a certain number of shares of common stock at a specified price over a certain period of time.
9) False: Contrary to convertibles, warrants do not provide for the injection of additional equity capital into a firm immediately, as they only give the holder the right to purchase shares at a later date.
10) False: Call options are bought with the expectation that the market price of the underlying security will rise while put options are bought with the expectation that the market price of the underlying security will fall.
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Using an online mortgage calculator, generate the appropriate monthly amortization tables. Determine the payment, excluding taxes, PMI and property insurance, On a $175,000 loan based on the following terms: (20 points, 5pts each) a. Interest Rate: 2.25 % Term: 15 years b. Interest Rate: 2.875 % Term: 30 years C. Provide an amortization table showing all monthly payments for the 15 year loan. d. Provide an amortization table showing all monthly payments for the 30 year loan.
Amortization Table for 15 Year Loan:
...
Payment Number Beginning Balance Payment Principal Payment Interest Payment Ending Balance
1 $175,000.00 $1,319.74 $729.48 $590.26 $174,270.52
2 $174,270.52 $1,319.74 $734.54 $585.20 $173,535.98
180 $3,605.68 $1,319.74 $1,286.32 $33.42 $0.00
Amortization Table for 30 Year Loan:
...
Payment Number Beginning Balance Payment Principal Payment Interest Payment Ending Balance
1 $175,000.00 $898.09 $543.48 $354.61 $174,456.52
2 $174,456.52 $898.09 $549.04 $349.05 $173,907.48
360 $3,802.41 $898.09 $897.19 $0.90 $0.00
Using an online mortgage calculator, you can generate the appropriate monthly amortization tables for a $175,000 loan based on the following terms:
Interest Rate: 2.25%, Term: 15 years
Interest Rate: 2.875%, Term: 30 years
To calculate the monthly payment, excluding taxes, PMI and property insurance, you can use the following formula:
Monthly Payment = [P x R x (1+R)^N]/[(1+R)^N-1]
Where:
P = Principal Amount (e.g. $175,000)
R = Interest Rate per month (e.g. 2.25%/12)
N = Number of Payments (e.g. 15 years x 12 months)
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