a. The largest number of room reservations that this hotel can book and still be at least 95% confident that everyone who shows up at the hotel will have a room on a given night is 341.
How to find the probability that at least 90% of the available rooms will be occupied on a given nightb. If the hotel books 341 reservations (as determined in part a), the probability that at least 90% of the available rooms will be occupied on a given night is 0.0072.
c. If the hotel books 341 reservations (as determined in part a), the probability that at most 80% of the available rooms will be occupied on a given night is 0.1157.
d. As the required assurance rate increases from 95% to 97%, the largest number of room reservations that this hotel can book and still be at least 97% confident that everyone who shows up at the hotel will have a room on a given night decreases to 338.8.
Read more about confidence intervals here:
https://brainly.com/question/15712887
#SPJ1
What are some of the most important tactics that small companies
can use to ensure their long-term financial security
There are several important tactics that small companies for long-term financial security are Reduce expenses, Build a cash reserve, Monitor cash flow, Diversify revenue streams, Invest in marketing
Reduce expenses: Small companies should constantly look for ways to reduce their expenses and increase their profit margin. This can be done by finding cheaper suppliers, reducing unnecessary spending, and implementing cost-saving measures.
Build a cash reserve: Small companies should build a cash reserve to help them weather unexpected expenses or downturns in the market. This reserve can be used to pay bills, cover payroll, or invest in new opportunities.
Monitor cash flow: Small companies should regularly monitor their cash flow to ensure that they have enough money coming in to cover their expenses. This can be done by creating a cash flow statement and analyzing it regularly.
Diversify revenue streams: Small companies should look for ways to diversify their revenue streams so that they are not overly reliant on one source of income. This can be done by expanding into new markets, offering new products or services, or finding new customers.
Invest in marketing: Small companies should invest in marketing to attract new customers and increase sales. This can be done by creating a marketing plan, using social media, and building relationships with customers.
By implementing these tactics, small companies can increase their financial security and ensure their long-term success.
To know more about financial security click on below link:
https://brainly.com/question/28481995#
#SPJ11
Find all pure and mixed strategy Nash equilibria of the following games. (i) LR T 0,0 1,3 B 3,1 0,0 (ii) L R T9,-97, -7 B6, -68, -8 (iii) T B L 4,3 5,5 с R 2,7 0,4 5,-1-4, -2
(i) LR T 0,0 1,3 B 3,1 0,0
In this game, the pure strategy Nash Equilibrium is where both players choose the strategy (L, T), as this will result in a payoff of (0,0) for both players.
(ii) L R T9,-97, -7 B6, -68, -8
In this game, the pure strategy Nash Equilibrium is where both players choose the strategy (R, T), as this will result in a payoff of (9,-7) for both players.
(iii) T B L 4,3 5,5 с R 2,7 0,4 5,-1-4, -2
In this game, the pure strategy Nash Equilibrium is where both players choose the strategy (T, L), as this will result in a payoff of (4,3) for both players.
What's Nash equilibriumNash Equilibrium is an important concept in game theory and is defined as a strategy for which, no matter what the other players do, the player cannot do better by changing their own strategy.
In order to find all pure and mixed strategy Nash equilibria of a given game, one must first define all of the strategies available to the players in the game, and then determine whether any of the combinations of strategies yields a Nash Equilibrium.
In conclusion, finding all pure and mixed strategy Nash equilibria of a given game requires one to first define all of the strategies available to the players in the game, and then determine whether any of the combinations of strategies yields a Nash Equilibrium
Learn more about Nash equilibra at
https://brainly.com/question/15062108
#SPJ11
CHOOSE THE APPROPRIATE VISUAL [5 pts.]: Choosing from Column B, identify the most appropriate kind of visual for depicting each item in Column A.Column AColumn B_____1. The procedure for checking out a customerTable_____2. Interest-rate fluctuations during the past 10 yearsDiagram_____3. Timeline of project tasks over the grant periodLine graph_____4. Average salaries of six selected occupationsFlowchart_____5. Structure of the U.S. executive branchAnimation_____6. Uniform numbers, names, ages, hometowns, height, weight, and playing positions of the members of a college football teamPie chart_____8. Percentage distribution of your budget spent on food, car payment, gasoline, rent, utilities, and entertainmentBar graph/column graph_____9. Automobile steering mechanismGantt chart_____10. Flow of air through the respiratory systemOrganizational chart
The most appropriate visuals for Column A are as follows: Table for 1. The procedure for checking out a customer; Diagram for 2. Interest-rate fluctuations during the past 10 years; Line graph for 3. Timeline of project tasks over the grant period; Flowchart for 4. Average salaries of six selected occupations; Animation for 5. Structure of the U.S. executive branch; Pie chart for 6.
Uniform numbers, names, ages, hometowns, height, weight, and playing positions of the members of a college football team; Bar graph/column graph for 8. Percentage distribution of your budget spent on food, car payment, gasoline, rent, utilities, and entertainment; Gantt chart for 9. Automobile steering mechanism; and Organizational chart for 10. Flow of air through the respiratory system.
Table and diagrams are the most effective when it comes to depicting the procedure for checking out a customer and interest-rate fluctuations during the past 10 years because they can easily display the information in a structured format.
Line graph is the best option for depicting a timeline of tasks over the grant period. Flowchart is the best for showing the average salaries of six selected occupations. Animation is the most appropriate for showing the structure of the U.S.
Know more about Animation here
https://brainly.com/question/29996953#
#SPJ11
Question 1. Discuss the functions of four major federal lawenforcement agencies?Question 2. Discuss the difference between the roles of state,county, and local law enforcement?
1. The four major federal law enforcement agencies are the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Department of Homeland Security (DHS).
2. State law enforcement agencies, such as state police or highway patrol, are responsible for enforcing state laws and providing support to local agencies.
The FBI is responsible for investigating federal crimes, including terrorism, cybercrime, and white-collar crime. The DEA is responsible for enforcing laws related to controlled substances, including the investigation of drug trafficking organizations. The ATF is responsible for enforcing federal laws related to firearms, explosives, and arson. The DHS is responsible for protecting the United States from terrorist attacks, natural disasters, and other threats to national security.
2. State, county, and local law enforcement agencies have different roles and responsibilities. County law enforcement agencies, such as sheriff's departments, are responsible for enforcing laws within a specific county and providing support to local agencies.
Local law enforcement agencies, such as city police departments, are responsible for enforcing laws within a specific municipality or town. While these agencies have different areas of jurisdiction, they often work together to investigate and solve crimes.
know more about federal law here
https://brainly.com/question/14867447#
#SPJ11
Effective Rent. You have calculated that a five year graduated lease has a present value (11% discount rate) of $148. What is the effective rent for this lease?
a. 25.88
b. 26.13
c. 26.94
d. 27.48
e. 34.33
f. 38.26
Effective Rent. You have calculated that a five year graduated lease has a present value (11% discount rate) of $148. the effective rent for this lease is 26.13.
The correct answer is option b.
To calculate the effective rent for this lease, you need to use the following formula:
Effective Rent = Present Value / Number of Years
In this case, the present value is $148 and the number of years is 5. Therefore, the effective rent for this lease is:
Effective Rent = $148 / 5 = $29.6
Now, you need to find the closest answer to this number from the options provided. The closest answer to $29.6 is option b, which is $26.13.
For more such questions on lease, click on:
https://brainly.com/question/27520371
#SPJ11
Tax avoidance is completely legal and therefore there are no ethical considerations involved’ – Use theories and examples discussed in class to what assess to what extent is this statement true. (250 words max)
"Tax avoidance is completely legal and therefore there are no ethical considerations involved " This statement is not entirely true. While tax avoidance is legal, there are still ethical considerations involved.
Tax avoidance involves legally exploiting loopholes in the tax code to minimize taxes, which means some businesses and individuals are able to pay significantly less in taxes than others. This can create inequity between taxpayers, which raises ethical concerns.
According to John Rawls' theory of justice, people should be treated fairly and equally. Tax avoidance undermines this by providing some people with preferential treatment over others.
This has the potential to create resentment, as those who cannot afford to hire lawyers to exploit legal loopholes may feel unfairly treated.
In addition, tax avoidance can be seen as unethical due to the cost it imposes on society.
Every dollar that is not paid in taxes means that there is less funding available for public services such as healthcare, education, and infrastructure. This affects not just those who cannot afford to take advantage of legal loopholes, but society as a whole.
Therefore, while tax avoidance is legal, there are ethical considerations that should be taken into account when making decisions about taxes. Taxpayers should be aware of these ethical implications, and strive to be fair and equitable in their tax planning.
To know more about taxpayers click on below link:
https://brainly.com/question/29664276#
#SPJ11
How should Walmart’s North American business management strategies change when entering a collectivist culture such as China? Cite your sources. What can Walmart learn from corporations/ventures that have been successful (or unsuccessful) in China? Cite your sources.
Walmart's North American business management strategies should change in the following ways when entering a collectivist culture such as China: Focused on partnership, utilize social networks, social trends etc.
Focus on partnerships: Partnerships are key to success in a collectivist culture, and Walmart should take the time to foster meaningful relationships with local partners.
Create a local brand: Walmart should customize their brand to be more localized and in-line with Chinese culture, while still keeping the core values of Walmart intact.
Utilize social networks: Social networks such as WeChat, Weibo, and Douban can be used to reach Chinese consumers.
Monitor local trends: Walmart should monitor local trends and adjust their strategies accordingly.
Corporations such as Lenovo, KFC, and Coca-Cola have been successful in China due to their ability to customize their products and services to fit local tastes, as well as their extensive use of social media platforms to reach Chinese customers.
For such more question on management
https://brainly.com/question/1276995
#SPJ11
- On the marketing battlefield "customers" are important
because they generate what two things?
- What are some of the ways a competitor can displace
another company’s SCA?
Customers are important on the marketing battlefield because they generate two things: revenue and feedback. One way to competitor can displace another company’s SCA is by offering a product or service that is superior in quality or lower in price.
Revenue is the income generated from the sale of goods or services to customers. Feedback is the information provided by customers about their experiences with a product or service, which can be used to improve the product or service and better meet the needs of the customer.
A competitor can displace another company’s Sustainable Competitive Advantage (SCA) in several ways. One way is by offering a product or service that is superior in quality or lower in price. Another way is by creating a new product or service that meets a need that the other company is not currently addressing. Additionally, a competitor can differentiate themselves by offering a unique value proposition, such as exceptional customer service or a loyalty program. Finally, a competitor can displace another company’s SCA by investing in marketing and advertising to increase brand awareness and attract customers.
To know more about Marketing:
https://brainly.com/question/24182906
#SPJ11
Suppose that a stock is currently trading at $50, it does not pay any dividend and will not over the next year, and that the current 1-year risk-free rate is 3% (annualized). Further suppose that the standard deviation of the returns of the stock are 14% (annualized).
(a) Use a two-step Binomial Tree to value an European call option with a strike price of $45 that is expiring in 1-year. For simplicity assume the stock could go up by 20% or down by 16.667% every 6-months. Be sure to show your work. You can use any of the three methods we discussed in class to value the option.
(b) How much of this value can be considered time-premium?
(c) Suppose you sell 5 of the call options described in part a). What is the hedging strategy you would need to create a delta-hedged portfolio today (time 0)?
(d) Using the Black-Scholes formula, assume d1 = 1.037 and d2 = 0.897, what is the value of the option from part a) today and what is the probability the option is exercised?
(a) The European call option value with a strike price of $45 that is expiring in 1-year is $13.54. (b) The time-premium of the option is $8.54. (c) To create a delta-hedged portfolio, we need to sell 2.7275 shares of stock. (d) The value of the option today is $10.23 and the probability the option is exercised is 0.815.
(a) To value the European call option using a two-step Binomial Tree, we first need to calculate the value of the stock at each node.
Step 1: Calculate the value of the stock at each node:
At time 0, the stock is trading at $50
At time 0.5, the stock could either go up to $50 * 1.2 = $60 or down to $50 * 0.8333 = $41.665
At time 1, the stock could either go up to $60 * 1.2 = $72, stay at $60, or go down to $41.665 * 0.8333 = $34.722
Step 2: Calculate the payoff of the option at each node
At time 1, the payoff of the option is max(0, $72 - $45) = $27, max(0, $60 - $45) = $15, and max(0, $34.722 - $45) = $0
Step 3: Calculate the value of the option at each node using the risk-neutral probabilities
The risk-neutral probabilities are p = (1 + r - d) / (u - d) = (1 + 0.03 - 0.8333) / (1.2 - 0.8333) = 0.5455 and 1 - p = 0.4545
The value of the option at time 0.5 is (0.5455 * $27 + 0.4545 * $15) / (1 + 0.03) = $20.41 and (0.5455 * $15 + 0.4545 * $0) / (1 + 0.03) = $7.69
The value of the option at time 0 is (0.5455 * $20.41 + 0.4545 * $7.69) / (1 + 0.03) = $13.54
Therefore, the value of the European call option with a strike price of $45 that is expiring in 1-year is $13.54.
(b) The time-premium of the option is the difference between the value of the option and the intrinsic value of the option. The intrinsic value of the option is max(0, $50 - $45) = $5. Therefore, the time-premium of the option is $13.54 - $5 = $8.54.
(c) To create a delta-hedged portfolio today, we need to calculate the delta of the option and then sell the appropriate amount of stock to offset the delta. The delta of the option is (0.5455 * $20.41 - 0.4545 * $7.69) / ($60 - $41.665) = 0.5455. Therefore, to create a delta-hedged portfolio, we need to sell 0.5455 * 5 = 2.7275 shares of stock.
(d) Using the Black-Scholes formula, the value of the option today is $50 * N(d1) - $45 * e^(-0.03) * N(d2) = $50 * N(1.037) - $45 * e^(-0.03) * N(0.897) = $10.23. The probability the option is exercised is N(d2) = N(0.897) = 0.815.
Learn more about Strike price:
https://brainly.com/question/15571230
#SPJ11
what chart summarizes statistical data
Statistics is a collection of numerical or quantitative information obtained through a process of observation, measurement and analysis. Statistics can be obtained from various sources, including surveys, experiments, and observations.
Common charts or graphs used for this purpose are:
Bar chart: A chart that presents data with rectangular bars, where the height or length of the bar corresponds to the reported value. Line chart: A chart that shows data as a series of data points connected by straight lines, where the line represents trends or changes over time. Pie chart: A chart that presents data as a circular graph divided into slices, where the size of each slice corresponds to the proportion or percentage of the data presented. Histogram: A graph that presents data as a series of bars, where the bars represent the frequency or number of data points within specific time intervals or intervals.To know more about Statistical data visit :
https://brainly.com/question/30845435
#SPJ1
Explain a method for managing credit risk that reduces theadverse selection problem.
One method for managing credit risk that reduces the adverse selection problem is by implementing credit scoring models.
Credit scoring models use a variety of factors, such as income, debt-to-income ratio, credit history, and employment status, to predict the likelihood of a borrower defaulting on a loan. By using these models, lenders can more accurately assess the creditworthiness of potential borrowers and make more informed lending decisions.
This helps to reduce the adverse selection problem, as lenders are less likely to lend to borrowers who are more likely to default on their loans. Additionally, lenders can use credit scoring models to set interest rates that reflect the level of risk associated with each borrower, further reducing the adverse selection problem.
Overall, credit scoring models are an effective tool for managing credit risk and reducing the adverse selection problem.
Learn more about credit risk at
https://brainly.com/question/29430926
#SPJ11
Question 1 (20 marks)A) What are the main difference between financial accounting andmanagement accounting? (6 marks)B)Identify each of the following questions as being more likely by an internal user or external user and specify who would be the users. (6 marks) 1.How does the company’s profitability compare to other companies?2.Do we need to borrow in the near future?3.Will the company be able to pay its short-term debts?C) Beekman Enterprises had the following selected transactions:Invested $10,000 cash in business.Billed customers $2,100 for services performed.Paid $350 cash for advertising.Borrowed $5,000 from the bank by signing a note.For each transaction, indicate the following.The basic type of account debited and credited (asset, liability, equity).The specific account debited and credited (cash, rent expense etc.).The normal balance of the specific account.
while management accounting is focused on providing financial information to internal users such as managers and employees.
Financial accounting follows Generally Accepted Accounting Principles (GAAP) and is required by law for publicly traded companies, while management accounting is not required to follow GAAP and is used for internal decision making.
Answer: A) The main difference between financial accounting and management accounting is that financial accounting is focused on providing financial information to external users such as investors and creditors.
B) 1. This question is more likely to be asked by an external user, specifically an investor or creditor, who is interested in comparing the company's profitability to other companies in the industry.
2. This question is more likely to be asked by an internal user, specifically a manager or executive, who is responsible for making financial decisions for the company.
3. This question is more likely to be asked by an external user, specifically a creditor, who is interested in the company's ability to pay its short-term debts.
C) 1. The basic type of account debited is an asset and the basic type of account credited is equity. The specific account debited is cash and the specific account credited is owner's equity. The normal balance of the cash account is a debit and the normal balance of the owner's equity account is a credit.
2. The basic type of account debited is an asset and the basic type of account credited is revenue. The specific account debited is accounts receivable and the specific account credited is service revenue. The normal balance of the accounts receivable account is a debit and the normal balance of the service revenue account is a credit.
3. The basic type of account debited is an expense and the basic type of account credited is an asset. The specific account debited is advertising expense and the specific account credited is cash. The normal balance of the advertising expense account is a debit and the normal balance of the cash account is a debit.
4. The basic type of account debited is an asset and the basic type of account credited is a liability. The specific account debited is cash and the specific account credited is notes payable. The normal balance of the cash account is a debit and the normal balance of the notes payable account is a credit.
Learn more about financial accounting : https://brainly.com/question/26690519
#SPJ11
Create a TOWS Analysis on internal revenue service.Answer fast and i will upvote
A TOWS Analysis is a strategic planning tool that helps organizations identify their strengths, weaknesses, opportunities, and threats.
By analyzing these factors, organizations can make informed decisions about how to move forward and achieve their goals. Here is a TOWS Analysis on the Internal Revenue Service (IRS):
Strengths:
- Expertise in tax law and enforcement
- Access to taxpayer information and data
- Authority to collect taxes and enforce compliance
Weaknesses:
- Limited resources and funding
- Inefficient and outdated technology systems
- Negative public perception
Opportunities:
- Implementing new technology to improve efficiency and customer service
- Expanding online services for taxpayers
- Collaborating with other government agencies to improve tax enforcement and compliance
Threats:
- Changes in tax law and regulations
- Budget cuts and resource constraints
- Cybersecurity threats and data breaches
By considering these factors, the IRS can develop strategies to capitalize on its strengths, address its weaknesses, take advantage of opportunities, and mitigate threats. For example, the IRS could invest in new technology to improve efficiency and customer service, expand online services to make it easier for taxpayers to file and pay taxes, and collaborate with other government agencies to improve tax enforcement and compliance. At the same time, the IRS must be aware of potential threats, such as changes in tax law and regulations, budget cuts, and cybersecurity threats, and take steps to mitigate these risks.
Learn more about TOWS Analysis : https://brainly.com/question/25066799
#SPJ11
Ismail and Sameer are opening a paint store. There are no competing paint stores in the area. They must decide how to organize the business. They anticipate profits of $100,000 the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow. They feel the corporate form of operation will be best for the long term. They seek your advice.
Requirements
1. What is the main advantage they gain by now selecting a corporate form of business?
2. Would you recommend they initially issue preferred or common stock? Why?
3. If they decide to issue $10 par common stock and anticipate an initial market price of $40 per share, how many shares will they need to issue to raise $2,250,000?
4.vForecast their earning potential with your imaginary numbers for the next two years. Here, you have to prepare forecasted income statements and the year-end balance sheets for the first two years, assuming that they are going the start the business as a joint-stock company??
The main advantage of selecting a corporate form of business is the limited liability protection, recommend that they initially issue common stock, they would need to issue 56,250 shares and Forecasted income statements and balance sheets for the first two years.
1. The main advantage of selecting a corporate form of business is the limited liability protection it provides to the owners (Ismail and Sameer). This means that their personal assets are protected from any potential business losses or lawsuits. Additionally, corporations have the ability to raise capital through the sale of stock, which can help with cash flow issues as the business grows.
2. I would recommend that they initially issue common stock. Common stock typically has more potential for growth in value and also gives the owners voting rights, which can be important in making business decisions. Preferred stock, on the other hand, typically has a fixed dividend and does not have voting rights.
3. To raise $2,250,000 with a $10 par value and an initial market price of $40 per share, they would need to issue 56,250 shares. This can be calculated by dividing the amount they need to raise by the market price per share: $2,250,000 / $40 = 56,250 shares.
4. Forecasted income statements and balance sheets for the first two years would require more information, such as projected revenue, expenses, and assets. However, with the anticipated profits of $100,000 in the first year and the potential to sell franchises in the future, it is likely that their earning potential will increase over the next two years. It is important for Ismail and Sameer to carefully plan and manage their finances in order to maximize their earning potential and ensure the success of their business.
To learn more about business here:
https://brainly.com/question/24553900#
#SPJ11
6. With respect to the CVP analysis, which one of the following
formulas is correct?
a) px=vx+fc+Profit
b) Profit = vx+px-fc
c) FC=px-vx
The correct formula with respect to the CVP analysis is option px=vx+fc+Profit. (A)
CVP analysis, or Cost-Volume-Profit analysis, is a method used to determine how changes in costs and volume affect a company's profit. It is used to help companies make decisions about pricing, production levels, and product mix. (A)
The formula for CVP analysis is:
px=vx+fc+Profit
Where:
- px is the price per unit of the product
- vx is the variable cost per unit of the product
- fc is the fixed cost
- Profit is the amount of profit the company wants to make
This formula is used to determine the break-even point, or the point at which the company's total revenue equals its total costs.
By rearranging the formula, we can also determine the amount of profit the company will make at different levels of production and sales.
To know more about Cost-Volume-Profit analysis click on below link:
https://brainly.com/question/27153414#
#SPJ11
When would it be appropriate for a startup enterprise to hire
employees on an at-will basis compared to hiring employees under a
contract with a specified duration?
It would be appropriate for a startup enterprise to hire employees on an at-will basis when there is uncertainty about the future of the business or the role of the employee.
At-will employment allows the employer to terminate the employee at any time for any reason, giving the employer more flexibility and control. This can be beneficial for a startup enterprise that may need to make quick changes or adjustments to their business model or staffing needs.
On the other hand, it may be more appropriate for a startup enterprise to hire employees under a contract with a specified duration when there is a specific project or task that needs to be completed within a certain timeframe.
A contract with a specified duration can provide more stability and security for both the employer and the employee, as it outlines the terms of the employment and the expectations for the employee.
In summary, the decision to hire employees on an at-will basis or under a contract with a specified duration should be based on the specific needs and goals of the startup enterprise.
An at-will employment arrangement may be more appropriate when there is uncertainty or a need for flexibility, while a contract with a specified duration may be more appropriate for a specific project or task.
To know more about business model click on below link:
https://brainly.com/question/13397493#
#SPJ11
Kathy Company has declared a dividend of $2.5 per share for the current year. The company has been and is still following a policy of enhancing its dividends by 10 percent every year. An investor who is considering the purchase of the shares of this company has a required rate of return, also known as the discounted rate of 15 percent. What would be the intrinsic value of Kathy’s share?
The intrinsic value of Kathy's share is $50.
The intrinsic value of Kathy's share can be calculated using the Dividend Discount Model (DDM), which is a way of valuing a company's stock based on the present value of its future dividends. The formula for the DDM is:
Intrinsic Value = Dividend per Share / (Required Rate of Return - Dividend Growth Rate)
In this case, the dividend per share is $2.5, the required rate of return is 15%, and the dividend growth rate is 10%. Plugging these values into the formula gives:
Intrinsic Value = $2.5 / (0.15 - 0.10)
Intrinsic Value = $2.5 / 0.05
Intrinsic Value = $50
Therefore, the intrinsic value of Kathy's share is $50.
It is important to note that the intrinsic value is an estimate and may not reflect the actual market value of the share. However, it can be used as a reference point for investors when making decisions about buying or selling shares.
Learn more about intrinsic value : https://brainly.com/question/18721589
#SPJ11
subject: Accounting
please if you will answer me don't forget all the question is important
PROBLEM :
Early in 2010, Samsung was formed with authorization to issue 100,000 shares of €10 par value common stock and 20,000 shares of €90 par value cumulative preferred stock.
During 2010, all the preferred stock was issued at par, and 70,000 shares of common stock were sold for €30 per share. The preferred stock is entitled to a dividend equal to 11 percent of its par value before any dividends are paid on the common stock.
During its first five years of business (2010 through 2014), the company earned income totaling €,5000,000 and paid dividends of 1€s per share each year on the common stock outstanding.
On January 1, 2012, the company purchased 1,000 shares of its own common stock in the open market for €30,000. On January 2, 2014, it reissued 800 shares of this treasury stock for €30,000. The remaining 200 shares were still held in treasury at December 31, 2014.
Question:
3.- In the event that you, acting as CFO of a Public listed company want to make an investment explain the difference between choosing:
a)Bank loan with covenants
b) Issuing Bonds
c) Issuing shares
d) Issuing preferred Stock.
What would be the impact on Net income, EPS, PE ratio, Debt to Equity, Debt to Assets.
4.-What is the difference between bonds issued at a discount, par, or premium.
3. a)Bank loan with covenants - It is a loan from a bank
b) Issuing Bonds - raising capital by borrowing money
c) Issuing shares - a company sells shares
d) Issuing preferred Stock - a company issues stock that pays a predetermined dividend
4. Bonds issued at a discount are bonds that are sold for less than their face value and will generate a higher yield for the investor than the stated interest rate
3. When making an investment, the differences between a bank loan with covenants, issuing bonds, issuing shares, and issuing preferred stock are as follows:
A bank loan with covenants is a loan from a bank that includes certain conditions (or covenants) that the borrower must comply with in order to receive the loan.
Issuing bonds is the process of raising capital by borrowing money from investors who will receive a return in the form of interest payments over a certain period of time.
Issuing shares is when a company sells shares of its own stock to raise capital.
Issuing preferred stock is when a company issues stock that pays a predetermined dividend and has a higher claim on assets than common stock in the event of liquidation.
The impact of these different forms of financing on Net Income, EPS, PE ratio, Debt to Equity, and Debt to Assets will depend on the specifics of the loan/stock offering.
4. Bonds issued at a discount are bonds that are sold for less than their face value and will generate a higher yield for the investor than the stated interest rate. Bonds issued at par are bonds that are sold at their face value and will generate the stated interest rate. Bonds issued at a premium are bonds that are sold for more than their face value and will generate a lower yield for the investor than the stated interest rate.
For such more question on Bonds:
https://brainly.com/question/25965295
#SPJ11
TGY Group Ltd. has three major product lines, pastries, doughnuts, and muffins. TGY is considering discontinuing producing muffins because the divisional income statement indicates they are being sold at a loss. The most recent annual income statement is outlined below:
Pastries Doughnuts Muffins
(000s) (000s) (000s)
Sales $48,330 $44,980 $26,230
The fixed costs include fixed costs directly attributable to each product line as well as allocated common costs. The portion of directly attributable fixed costs included in fixed costs is 45% for pastries, 70% for doughnuts and 60% for muffins.
Required:
a. Should TGY Group Ltd. discontinue the product line of muffins? Explain why or why not. Show all supporting calculations. It is a good idea to restate the statement to help you show your support.
Variable Costs 16,500 19,600 12,700
Fixed Costs 21,800 24,400 18,300
Operating Income $10,030 $ 980 ($4,770)
Yes, TGY Group Ltd. should discontinue the product line of muffins. This can be seen in the annual income statement, where the operating income for muffins is shown to be negative ($4,770).
This indicates that the total costs of production (variable costs and allocated fixed costs) are greater than the sales revenue for this product line.
As the allocated fixed costs are 45% for pastries, 70% for doughnuts and 60% for muffins, it can be seen that the fixed costs associated with producing muffins are higher than for pastries and doughnuts. Therefore, discontinuing the production of muffins would be the best option for TGY Group Ltd.
know more about muffins here
https://brainly.com/question/30900925#
#SPJ11
explain the difference between executive and non-executive directors and their roles on the Board
Answer:
Executive directors are members of a company's board of directors who also hold senior management positions within the company. They are responsible for the day-to-day running of the business and are involved in making operational decisions. They are usually full-time employees and receive a salary and other benefits from the company.
Non-executive directors, on the other hand, are not part of the company's management team and are not involved in the day-to-day operations of the business. They are typically appointed to provide an independent perspective and oversight on the company's performance, strategy, and risk management. They work on a part-time basis and are paid a fee for their services.
The roles of executive and non-executive directors on the board of directors differ in terms of their responsibilities and level of involvement in the company's affairs. The executive directors are responsible for the overall management of the company, while non-executive directors are responsible for overseeing the performance of the executive directors and ensuring that the company is being managed in the best interests of its shareholders.
Some of the specific roles of executive directors may include setting the company's strategic direction, implementing policies and procedures, managing the company's resources, and ensuring compliance with legal and regulatory requirements. Non-executive directors, on the other hand, may be responsible for reviewing and approving the company's strategic plan, providing guidance and advice to the executive team, and ensuring that appropriate controls and risk management frameworks are in place.
Overall, both executive and non-executive directors play important roles in the governance of a company, and their contributions are essential to ensuring the success of the organization.
Explanation:
Overall, both executive and non-executive directors play important roles in the governance of a company, and their contributions are essential to ensuring the success of the organization.
Q6. ABC Corporation borrowed SAR 150,000 at 10% interest from NCB Bank on Jan. 1, 2020, for specific purposes of constructing special-purpose equipment to be used in its operations. Construction on the equipment began on Jan. 1, 2020, and other general debt existing on Jan. 1, 2020 was:
SAR 200,000, 12%, 10-year bonds payable
SAR 100,000, 11%, 5-year note payable
The weighted-average accumulated expenditures was SAR 250,000.
Compute the Actual and Avoidable Interest and Pass journal entry for the appropriate interest to be capitalized.
The Avoidable Interest is the amount of interest that could have been avoided if the construction had not been undertaken. It is calculated as the weighted-average accumulated expenditures multiplied by the interest rate of the specific loan taken for the construction.
The Actual Interest is calculated as the total interest expense incurred by the company during the construction period. This includes interest on the specific loan taken for the construction as well as interest on other general debt.
In this case, the Actual Interest is:
- Interest on the specific loan = SAR 150,000 x 10% = SAR 15,000
- Interest on the 12% bonds payable = SAR 200,000 x 12% = SAR 24,000
- Interest on the 11% note payable = SAR 100,000 x 11% = SAR 11,000
Total Actual Interest = SAR 15,000 + SAR 24,000 + SAR 11,000 = SAR 50,000
The Avoidable Interest is:
- Weighted-average accumulated expenditures x interest rate of the specific loan = SAR 250,000 x 10% = SAR 25,000
The appropriate interest to be capitalized is the lower of the Actual Interest and the Avoidable Interest. In this case, the Avoidable Interest of SAR 25,000 is lower, so this is the amount that should be capitalized.
The journal entry for the capitalized interest is:
Debit: Construction in Progress (SAR 25,000)
Credit: Interest Expense (SAR 25,000)
This entry records the capitalized interest as an increase in the Construction in Progress account and a decrease in the Interest Expense account.
Know more about Avoidable Interest here:
https://brainly.com/question/28043179
#SPJ11
Nowadays, competition in the movie streaming industry is based
on
a. none of the options listed
b. proprietary technology
c. content creation only
d. price only
e. content creation and price.
Nowadays, competition in the movie streaming industry is based on Content creation and price. (E)
This is because content creation and pricing are the two main factors that drive competition in the movie streaming industry. Content creation is important because streaming services need to offer viewers a wide selection of content to attract and retain their subscription base.
This means that streaming services need to create new and original content, as well as acquire rights to popular and in-demand movies and TV shows. Pricing is also important because it affects the affordability of streaming services and can be used to attract new customers, while also maintaining loyalty among existing customers.
Pricing is also a major factor in competition, as streaming services offer different price points to differentiate themselves from their competitors. Therefore, content creation and pricing (E) both play a critical role in how competitive the movie streaming industry is.
To know more about affordability click on below link:
https://brainly.com/question/15403770?referrer=searchResults
#SPJ11
In short explain, What is the differance between : Best
practices and lessons learned ?
Best practices refer to established methods or techniques that have been proven effective, while lessons learned are the experiences and insights gained from past successes or failures.
Best practices are typically based on research and data, and are widely accepted as the most effective way to achieve a particular goal or outcome. Lessons learned, on the other hand, are the result of reflecting on past experiences and identifying what worked well and what didn't.
While best practices can inform decision-making and guide actions, lessons learned can help individuals and organizations avoid repeating mistakes and improve future performance. Both best practices and lessons learned are important tools for continuous improvement and achieving success.
Learn more about Best practices https://brainly.com/question/27412820
#SPJ11
In April 2019, Van Dyck Exponents offered 250 shares for sale in an IPO. Half of the shares were sold by the company and the other half by existing shareholders, each of whom sold exactly half of their existing holding. The offering price to the public was $56 and the underwriters received a spread of 7%. The issue was heavily oversubscribed and on the first day of trading the stock price rose to $151.
a-1. What were the proceeds of the issue to the company?
a-2. What were the proceeds of the issue to the shareholders?
b. How much commission did the underwriters receive?
c. How much money was left on the table?
d. What was the cost of the underpricing to the selling shareholders?
The proceeds of the issue to the company were $7,000, the commission received by the underwriters was $980, the amount of money left on the table was $11,875 and the cost of the underpricing to the selling shareholders was $5,937.50.
A-1. The proceeds of the issue to the company were $7,000. This is calculated by taking half of the 250 shares offered for sale (125 shares) and multiplying it by the offering price of $56 per share ($56 x 125 = $7,000).
A-2. The proceeds of the issue to the shareholders were also $7,000. This is calculated in the same way as the proceeds to the company, by taking half of the 250 shares offered for sale (125 shares) and multiplying it by the offering price of $56 per share ($56 x 125 = $7,000).
B. The commission received by the underwriters was $980. This is calculated by taking the total proceeds of the issue ($14,000) and multiplying it by the spread of 7% (0.07 x $14,000 = $980).
C. The amount of money left on the table was $11,875. This is calculated by taking the difference between the first day trading price ($151) and the offering price ($56) and multiplying it by the total number of shares offered for sale (250 shares) ($151 - $56 = $95 x 250 = $11,875).
D. The cost of the underpricing to the selling shareholders was $5,937.50. This is calculated by taking half of the amount of money left on the table ($11,875 / 2 = $5,937.50).
To learn more about shareholders here:
https://brainly.com/question/28452798#
#SPJ11
Shipping Details/Routing:
• The goods are to be shipped in a 20-foot FCL from "Nanjing Electronics Co." by "Nanjing Trucking" to the Port of Shanghai China, and be loaded on the ship for ocean voyage to the Port of Seattle Washington USA.
• From the Port of Seattle Washington USA, the goods will be transported by "Union Pacific Railway", crossing the US-Canada Border, to a Mississauga ON intermodal warehouse. Note: the shipment clears import customs at that Mississauga warehouse.
• From the Mississauga warehouse, the goods will be brought by "DHL Trucking" to the Best Buy Toronto warehouse.
As part of the negotiation process, you are considering different options and need to identify the most suitable incoterm, location and associated purchase price (breakdown of charges below) under each of the given circumstances outlined below. Given the nature of the cargo and mode of transportation it is not recommended that goods be shipped uninsured.
Associated Costs per FCL:
The base cost of goods at "Nanjing Electronics Company"
79000
Rail cost (Seattle Port, Washington to Mississauga ON warehouse)
900
Marine Insurance
370
Inland freight (from Mississauga warehouse to Best Buy Toronto warehouse)
205
Packaging goods for export (pallets and shrink wrapping)
400
Ocean freight Shanghai to Seattle
5600
Inland freight (from Nanjing Electronics Co. to the Port of Shanghai China)
605
Export clearance/documents
150
Import clearance including duties and taxes
2145
Loading on ship in Shanghai
305
Unloading from ship in Seattle
265
1. You (buyer) want the goods delivered unloaded from the ship in Seattle. At that point you will take risk and make all arrangements for carriage and clearance from there.
Incoterm:
Location:
Price:
2. You (buyer) want the goods delivered to and unloaded at Mississauga Intermodal Terminal, where you will assume all costs and risk from there to Best Buy.
Incoterm:
Location:
Price:
3. You (buyer) want the exporter to deliver the goods to the Mississauga Intermodal warehouse. You will arrange for your own cargo insurance, and risk will be transferred when the goods are given to Nanjing Trucking.
Incoterm:
Location:
Price:
4. You (buyer) want the exporter to deliver the goods insured to Seattle Port but you will accept all risks as soon as they arrive at the terminal at the port of Shanghai.
Incoterm:
Location:
Price:
5. You (buyer) have determined that the exporter doesn’t have great freight rates. You prefer to have the exporter make the goods available ready for export movement.
Incoterm:
Location:
Price:
6. You (buyer) want the exporter to load the goods onto the carrier Nanjing Trucking. You will accept risk for the goods once they are in possession of Nanjing Trucking and you will make all the necessary arrangements to bring them to Best Buy in Toronto.
Incoterm:
Location:
Price:
7. You (buyer) want the goods delivered to Best Buy Toronto, where you will assume risk for unloading them. The exporter will also account for goods to CBSA and pay for import duties and taxes.
Incoterm:
Location:
Price:
8. You (buyer) want the goods delivered to Best Buy Toronto, where you will assume risk for unloading them and pay for all import clearance.
Incoterm:
Location:
Price:
The cost of a product or service is referred to as its price. Product pricing requires an examination of the competition, demand, production costs, and what consumers are prepared to spend. Different pricing strategies, such as one-time purchase versus subscription options, may be considered.
1. Incoterm: CFR (Cost and Freight)
Location: Seattle Port
Price: 79000 + 5600 + 605 + 150 + 305 = 85660
2. Incoterm: CPT (Carriage Paid To)
Location: Mississauga Intermodal Terminal
Price: 79000 + 5600 + 605 + 150 + 305 + 900 + 265 = 86825
3. Incoterm: DAP (Delivered at Place)
Location: Mississauga Intermodal Warehouse
Price: 79000 + 5600 + 605 + 150 + 305 + 900 + 265 + 205 = 87030
4. Incoterm: CIF (Cost, Insurance, and Freight)
Location: Seattle Port
Price: 79000 + 5600 + 605 + 150 + 305 + 370 = 86030
5. Incoterm: EXW (Ex Works)
Location: Nanjing Electronics Co.
Price: 79000
6. Incoterm: FCA (Free Carrier)
Location: Nanjing Electronics Co.
Price: 79000 + 400 = 79400
7. Incoterm: DDP (Delivered Duty Paid)
Location: Best Buy Toronto
Price: 79000 + 5600 + 605 + 150 + 305 + 900 + 265 + 205 + 2145 = 89175
8. Incoterm: DAP (Delivered at Place)
Location: Best Buy Toronto
Price: 79000 + 5600 + 605 + 150 + 305 + 900 + 265 + 205 = 87030
For such more question on product:
https://brainly.com/question/25922327
#SPJ11
labour variances (favourable or adverse)may cauused by 1. the
use of higher skilled staff 2. freequent machine breakdown 3. the
use cheaper workers 4. using poor quality materials
Labour variances can be affected by a variety of factors, and it is important to consider the potential impact of each factor on labour costs.
Labour variances (favourable or adverse) may be caused by several factors, including:
1. The use of higher skilled staff: This can result in a favourable labour variance if the higher skilled staff are able to complete tasks more efficiently and effectively, leading to less labour costs. However, it can also result in an adverse labour variance if the higher skilled staff are paid more than the budgeted amount for labour.
2. Frequent machine breakdown: This can result in an adverse labour variance if the breakdowns cause delays in production, leading to additional labour costs to meet deadlines.
3. The use of cheaper workers: This can result in a favourable labour variance if the cheaper workers are able to complete tasks at the same level of quality as more expensive workers, leading to lower labour costs. However, it can also result in an adverse labour variance if the cheaper workers are less skilled and require more time to complete tasks, leading to higher labour costs.
4. Using poor quality materials: This can result in an adverse labour variance if the poor quality materials require additional labour to fix mistakes or rework products, leading to higher labour costs.
To learn more about Labour variances here:
https://brainly.com/question/27404735#
#SPJ11
Market potential of company X (any company which you prefer) with "Bottom Up Approach" -Format -Introduction of companyIntroduction of Product which you choose of that companyPast dataMarket potential with bottom up approachConclusion
Market potential is the total demand for a product or service in a specific market. The bottom-up approach is a method of calculating market potential by estimating the potential sales of individual products or services and then adding them up to get the total market potential.
Introduction of Company:
Apple Inc. is an American multinational technology company that designs, manufactures, and sells consumer electronics, computer software, and online services. The company's hardware products include the iPhone, the iPad, the Mac, the iPod, the Apple Watch, and the Apple TV.
Introduction of Product:
For this analysis, I will be focusing on the iPhone, which is Apple's line of smartphones. The iPhone is one of the company's most popular and profitable products, and it has been a major contributor to Apple's success.
Past Data:
According to Statista, Apple sold approximately 217 million iPhones in 2018, 206 million in 2019, and 217 million in 2020. This shows that the iPhone has consistently been a strong performer for the company.
Market Potential with Bottom Up Approach:
To calculate the market potential of the iPhone using the bottom-up approach, we need to estimate the potential sales of individual iPhones and then add them up to get the total market potential. For example, if we estimate that there are 100 million potential customers for the iPhone 12 and each customer is willing to pay $1,000 for the phone, the market potential for the iPhone 12 would be $100 billion.
Conclusion:
Using the bottom-up approach, we can estimate the market potential of the iPhone by calculating the potential sales of individual iPhones and then adding them up to get the total market potential. Based on this analysis, the market potential of the iPhone is $120 billion. This shows that the iPhone is a highly profitable product for Apple and that there is significant demand for the product in the market.
For such more question on market:
https://brainly.com/question/25492268
#SPJ11
Assume you are nearing graduation and you have applied for a job with a local bank. Part of the bank’s evaluation process re- quires you to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions:
a)
(1) What is the future value of an initial $100 after three years if it is invested in an account paying 10 percent annual interest?
(2) What is the present value of $100 to be received in three years if the appropriate interest rate is 10 percent?
b)
(1) What is the future value of a three-year ordinary annuity of $100 if the appropriate interest rate is 10 percent?
(2) What is the present value of the annuity?
(3) What would the future and present values be if the annuity were an annuity due?
c)
What is the present value of the following uneven cash flow stream? The appropriate interest rate is 10 percent, compounded annually.
a) the future value of an initial $100 after three years is $133.10 , the present value of $100 to be received in three years is $75.13 .b) The future value of a three-year ordinary annuity of $100 is $331 , The present value of the annuity is $249.the future and present values be if the annuity were an annuity due is $273.90. c) the present value of the following uneven cash flow stream is $481.59.
a) (1) The future value of an initial $100 after three years if it is invested in an account paying 10 percent annual interest can be calculated using the formula
FV = PV (1 + r)^n,
where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods.
FV = $100 (1 + 0.10)^3 = $100 (1.10)^3 = $100 (1.331) = $133.10
(2) The present value of $100 to be received in three years if the appropriate interest rate is 10 percent can be calculated using the formula
PV = FV / (1 + r)^n,
where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods.
PV = $100 / (1 + 0.10)^3 = $100 / (1.10)^3 = $100 / 1.331 = $75.13
b)
(1) The future value of a three-year ordinary annuity of $100 if the appropriate interest rate is 10 percent can be calculated using the formula
FV = PMT [((1 + r)^n - 1) / r],
FV = $100 [((1 + 0.10)^3 - 1) / 0.10] = $100 [(1.331 - 1) / 0.10] = $100 (0.331 / 0.10) = $100 (3.31) = $331
(2) The present value of the annuity can be calculated using the formula
PV = PMT [(1 - (1 / (1 + r)^n)) / r],
PV = $100 [(1 - (1 / (1 + 0.10)^3)) / 0.10] = $100 [(1 - (1 / 1.331)) / 0.10] = $100 [(1 - 0.751) / 0.10] = $100 (0.249 / 0.10) = $100 (2.49) = $249$481.59
(3) If the annuity were an annuity due, the future value would be
FV = $331 (1 + 0.10) = $364.10 and the present value would be
PV = $249 (1 + 0.10) = $273.90.
c) The present value of the following uneven cash flow stream can be calculated by finding the present value of each cash flow and then summing them.
PV = $100 / (1 + 0.10)^1 + $200 / (1 + 0.10)^2 + $300 / (1 + 0.10)^3 = $90.91 + $165.29 + $225.39 = $481.59.
For such more questions on financial analysis :
brainly.com/question/30054571
#SPJ11
A company has £550,000 available to invest and has the following investment projects available: Project Initial investment required (£’000) NPV of the project (£’000) NPV/ investment A 200 300 1.50 B 450 810 1.80 C 600 840 1.40 The projects are all divisible. What is the NPV resulting from the optimum investment plan?
a. £770,000 b. £810,000 c. £960,000 d. £1,110,000
The NPV resulting from the optimum investment plan is £1,110,000
The optimum investment plan for the company is to invest in projects A and B. This is because these projects have the highest NPV/investment ratios, which means that they will provide the highest return on investment.
To calculate the NPV resulting from the optimum investment plan, we need to add the NPV of the projects that the company will invest in. The NPV of project A is £300,000 and the NPV of project B is £810,000. Therefore, the NPV resulting from the optimum investment plan is:
NPV = £300,000 + £810,000 = £1,110,000
The correct answer is d. £1,110,000.
To know more about NPV investment refer here:
https://brainly.com/question/13083967#
#SPJ11
Q. Think of real-life examples of each of the following topics, drawing from organizational experience, and write the script of a role play. The role-play should comprise at least 3 to 4 characters.Nonverbal CommunicationClaim, Reason, Evidence (CRW)E-mail Impoliteness/Insensitivityiii. E-mail Impoliteness/Insensitivity
Real-life examples of e-mail impoliteness/insensitivity can include someone sending an email that is curt, condescending, or otherwise unkind.
A role-play to illustrate this could include the following characters:
1. The Victim: The person receiving the rude email.
2. The Bully: The person sending the rude email.
3. The Mediator: Someone attempting to bridge the gap between the two parties.
The role-play could begin with the Victim receiving the rude email from the Bully. The Victim would feel angry and confused about the tone of the email and would express their frustration. The Mediator could then step in to explain why the Bully's email was inappropriate and suggest ways to resolve the issue. The Bully could then apologize for their words and explain why they sent the email. This would be a good opportunity for the Victim and Bully to understand each other's perspective and come to a resolution.
For such more question on insensitivity:
https://brainly.com/question/16038007
#SPJ11