the actual annual simple interest rate for this loan is 6.11%.
To find the actual annual simple interest rate for the loan, we need to first calculate the interest on the loan and then add the processing fee to get the total interest. Then, we can use the formula for simple interest to find the actual annual interest rate. The formula for simple interest is:
I = P × r × t
Where I is the interest, P is the principal, r is the interest rate, and t is the time in years.
Given:
P = $7640
r = 6% = 0.06
t = 7/12 (since the loan is for 7 months)
First, calculate the interest:
I = P × r × t
I = $7640 × 0.06 × (7/12)
I = $266.80
Now, add the processing fee to get the total interest:
Total interest = I + processing fee
Total interest = $266.80 + $200
Total interest = $466.80
Finally, use the formula for simple interest to find the actual annual interest rate:
Total interest = P × r × t
$466.80 = $7640 × r × 1 (since we want to find the annual interest rate)
r = $466.80 / ($7640 × 1)
r = 0.0611
Therefore, the actual annual simple interest rate for this loan is 6.11%.
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Your company requires that all planned investment projects should have a positive net present value at the company cost of capital of 15%. Explain how this policy can lead to wrong investment decisions for the company.
The policy of requiring all planned investment projects to have a positive net present value at the company cost of capital of 15% can lead to wrong investment decisions for the company because it may reject projects that could potentially be profitable at a lower cost of capital.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. If the NPV is positive, it indicates that the project is expected to generate profits. However, the cost of capital plays a crucial role in calculating the NPV. The higher the cost of capital, the lower the NPV will be.
Therefore, if the company only accepts projects with a positive NPV at a cost of capital of 15%, it may reject projects that could be profitable at a lower cost of capital. For example, a project may have a positive NPV at a cost of capital of 10%, but a negative NPV at a cost of capital of 15%. In this case, the company would reject the project, even though it could be profitable at a lower cost of capital.
This policy can also lead to the company accepting projects that may not be profitable at a higher cost of capital. For example, a project may have a positive NPV at a cost of capital of 15%, but a negative NPV at a cost of capital of 20%. If the company's cost of capital increases in the future, the project may no longer be profitable.
In conclusion, the policy of requiring all planned investment projects to have a positive net present value at the company cost of capital of 15% can lead to wrong investment decisions for the company, as it may reject potentially profitable projects at a lower cost of capital and accept projects that may not be profitable at a higher cost of capital.
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Laurie Peterson
Founder of Build & Imagine toys
When Peterson started working for big toy companies more than 10 years ago, she wanted to get young girls excited about science. Somewhere along the way, she forgot her mission and found herself—like most in the industry—advocating for toys catering to boys simply because they’re more profitable. "The thinking was that if we design it for boys, then girls will just play too," she says. "But if we do the reverse and design it for girls, we don’t know if boys will play. The thing to do was, by default, design the toys for boys.
"I found that to be morally not right, but I absolutely advocated what I thought was right for the business, to lead with boys, because we found that to be a more sound business decision," continues Peterson. "There I was, year after year, representing this position that the best business decision we can make is to design toys for boys. I was never my authentic self because of that." Peterson has since founded her own toy company aimed at teaching STEM skills to both girls and boys, and featuring "adventurous leading female characters." "I now have the opportunity with my own startup to making up the rules, and we get to decide what’s important," she says. "We decided to take our industry’s standard and flip it on its head. Instead of designing products for boys and then looking for opportunities to invite girls to play, we’re designing for girls and then looking for opportunities to invite boys to play." The lesson: You need to be the change you want to see.Identify
- The Ethical Issue the leader faced
- Identify 2 negative outcomes of the Ethical Dilemma Analyse and provide your opinion.As a leader, what would you do differently to solve the dilemma?
1. The ethical issue that Laurie Peterson faced was the decision to prioritize profit over the mission to get young girls excited about science.
2. Two negative outcomes of this ethical dilemma were that Peterson was not able to be her authentic self and that she was perpetuating the gender bias in the toy industry by advocating for toys designed for boys.
This decision led her to advocate for toys catering to boys simply because they were more profitable, even though she found it morally wrong.
In my opinion, Peterson made the right decision in the end by starting her own toy company and focusing on designing toys for girls while also inviting boys to play. This decision not only allowed her to stay true to her mission and values, but also addressed the gender bias in the toy industry.
As a leader, I would have also tried to find a way to stay true to my values and mission while still making a sound business decision. This could include advocating for the creation of toys that appeal to both boys and girls or finding a way to market toys designed for girls in a way that also appeals to boys.
It is important for leaders to prioritize their values and mission while also making sound business decisions.
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2. Describe what a supply curve looks like.
A supply curve is a graphical representation of the relationship between the quantity of a good or service that producers are willing to sell and the price of that good or service. The curve is typically upward-sloping, meaning that as the price of the good or service increases, the quantity supplied by producers also increases.
How does the supply curve shift?Supply curve shift: Modifications in manufacturing costs and related variables might result in a whole supply curve moving to the right or left. This results in the supply of a higher or lower quantity at a specific price. The ceteris paribus premise states that supply curves link prices and quantities delivered under the premise that nothing else changes.
The curve is typically drawn on a graph with price on the vertical axis and quantity on the horizontal axis. The specific shape of the curve can vary depending on the characteristics of the market and the nature of the good or service being sold. In some cases, the curve may be relatively flat or steep, indicating a more or less elastic supply, respectively.
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Which do you prefer: a bank account that pays 5.6% per year (EAR) for three years ora. An account that pays 2.9%every six months for three years? b. An account that pays 8.2% every 18 months for three years? c. An account that pays 0.36% per month for three years?
(Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)
The account that pays 8.2% every 18 months for three years would be the most profitable option.
To compare the different accounts, we need to calculate their equivalent annual rate (EAR), which takes into account the compounding effect of the interest. Here are the calculations:
a. The bank account that pays 5.6% per year (EAR) for three years has an effective rate of 1.0188^3 - 1 = 0.1757 or 17.57%.
a. The account that pays 2.9% every six months for three years has an effective rate of (1+0.029/2)^6 - 1 = 0.0595 or 5.95% per half-year. To get the EAR, we need to compound this rate twice: (1+0.0595)^2 - 1 = 0.1213 or 12.13%.
b. The account that pays 8.2% every 18 months for three years has an effective rate of (1+0.082)^2 - 1 = 0.1722 or 17.22%.
c. The account that pays 0.36% per month for three years has an effective rate of (1+0.0036)^12 - 1 = 0.0448 or 4.48% per month. To get the EAR, we need to compound this rate twelve times: (1+0.0448)^12 - 1 = 0.6088 or 60.88%.
Therefore, b. the account that pays 8.2% every 18 months for three years has the highest effective rate among the four options, making it the most profitable choice.
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If there is a price ceiling of $150, deadweight loss is, in numerals, ______. (do not include the dollar sign in your answer. )
In reference to what the graph shows the market for bicycles. If there is a price ceiling of $150, then, the deadweight loss is, in numerals, $200.
What does dead-weight loss means and its use?In economic, deadweight loss is used to describe the loss of economic efficiency that occurs when the allocation of resources is not optimized. Specifically, it refers to the reduction in total societal welfare that results from market inefficiencies, such as taxes or subsidies, that distort the price signals between buyers and sellers.
The concept of deadweight loss is important because it highlights the economic cost of market distortions and can inform policymakers on the potential impacts of interventions. For example, a tax on a good may increase revenue for the government, but it may also create a deadweight loss by reducing the quantity of the good that is bought and sold in the market.
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URGENT!!!
A partnership requires a $830,000 investment today, and will generate a one-time cash flow of $961,566 after one year. The business will be financed with 35% equity and 65% debt. If the firm can borrow at 8%, what is the pre-tax WACC?
a.) 17.06%
b.) 15.85%
c.) 15.25%
d.) 16.45%
e.) 14.65%
A partnership requires a $830,000 investment today, and will generate a one-time cash flow of $961,566 after one year. The business will be financed with 35% equity and 65% debt. If the firm can borrow at 8%, then the pre-tax WACC is 15.85 %. Therefore the correct option is option B.
The pre-tax WACC (weighted average cost of capital) can be calculated using the following formula:
WACC = (E/V) * Re + (D/V) * Rd * (1 - Tc)
Where: E = market value of equity V = total market value of the firm's financing (equity + debt)Re = cost of equity D = market value of debt Rd = cost of debt Tc = corporate tax rate
In this case, the values are as follows: E = $830,000 * 0.35 = $290,500V = $830,000Re = unknown D = $830,000 * 0.65 = $539,500Rd = 8%Tc = 0 (since the question asks for pre-tax WACC)
Plugging these values into the formula, we get: WACC = ($290,500/$830,000) * Re + ($539,500/$830,000) * 8% * (1 - 0)WACC = 0.35Re + 0.65 * 8%WACC = 0.35Re + 0.052
To find the value of Re, we can use the formula:
Re = (expected return - initial investment) / initial investment
Re = ($961,566 - $830,000) / $830,000 Re
= 0.1585 or 15.85%
Plugging this value back into the WACC formula, we get:
WACC = 0.35 * 15.85% + 0.052WACC = 0.055475 + 0.052WACC = 0.107475 or 10.7475%Therefore, the pre-tax WACC is 10.7475%.
The closest answer choice to this value is (b) 15.85%, but this is not the correct answer.
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TGA Processing plans to produce and sell an industrial product (can be consumed by human/animal) to its customers in West Malaysia. The factory consists of 5 departments: Storage, Production, Maintenance, Quality Control and Warehouse. The functions of the departments are as followed:
a. Storage: receiving, storing and preparing raw materials before production.
b. Production: carrying out different stages of processes in converting raw materials to competed product.
c. Maintenance: focusing mainly on the machines/tools/equipment used in Storage and Production departments.
d. Quality Control: checking the completed product to meet customer expectation/quality standard.
e. Warehouse: receiving approved completed product from production department and preparing for shipment.
TGA Processing plans to produce and sell an industrial product to customers in West Malaysia. The factory consists of 5 departments: Storage, Production, Maintenance, Quality Control, and Warehouse.
Here is an overview of each department of factory and its functions:
Storage: The Storage department receives, stores, and prepares raw materials before production.
Production: The Production department carries out different stages of processes in converting raw materials to the completed product.
Maintenance: The Maintenance department focuses mainly on the machines/tools/equipment used in the Storage and Production departments.
Quality Control: The Quality Control department checks the completed product to meet customer expectation/quality standards.
Warehouse: The Warehouse department receives approved completed product from the Production department and prepares for shipment.
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______ is the usual starting point for budgeting.
Select one:
a. The production budget
b. The estimated net income
c. The revenues budget
d. The cash budget
The revenues budget is the usual starting point for the budgeting. The correct answer is c. The revenues budget.
The revenues budget is the usual starting point for budgeting because it outlines the expected income for the company during the budget period. Once the revenues budget is established, other budgets, such as the production budget, can be created based on the expected income. The estimated net income and is the cash budget are also important aspects of the budgeting process, but they typically come after the revenues budget has been established. Therefore, the correct answer is c. The revenues budget.
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You have $100,000 in a brokerage account, and you plan to deposit an additional $20,000 at the end of every future year until your account totals $600,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal?
You have $100,000 in a brokerage account, and you plan to deposit an additional $20,000 at the end of every future year until your account totals $600,000. You expect to earn 14% annually on the account. It will take approximately 11.37 years to reach your goal
To reach your goal of $600,000, you will need to calculate the number of years it will take for your initial deposit of $100,000 and annual deposits of $20,000 to grow at a rate of 14% annually. This can be done using the future value of an annuity formula:
FV = PMT * (((1 + r)ⁿ - 1) / r)
Where FV is the future value, PMT is the annual payment, r is the annual interest rate, and n is the number of years. Rearranging the formula to solve for n gives us:
n = log((FV * r) / PMT + 1) / log(1 + r)
Plugging in the given values:
n = log(($600,000 * 0.14) / $20,000 + 1) / log(1 + 0.14)
n = log(4.2) / log(1.14)
n = 11.37
Therefore, it will take approximately 11.37 years to reach your goal of $600,000. However, since you cannot have a fraction of a year, you will need to round up to the nearest whole number. So, it will take 12 years to reach your goal.
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1)What are the differences between human resource managementprocess in some bank and in some manufactoring company?2)What is the most critical in personal management process?
1)The differences in human resource management processes between a bank and a manufacturing company depend largely on the size and type of the organization.
2)The most critical aspect of personal management process is the effective communication between managers and employees.
For example, a bank may focus on hiring, training, and evaluating employees in customer service, whereas a manufacturing company might emphasize more on production and quality control. Additionally, the management processes used in each industry may vary depending on the regulations or standards of the field.
Communication should be timely, clear, and concise in order to foster collaboration and efficiency within the workplace. Additionally, managers should be aware of their employees’ needs, abilities, and preferences in order to best support them.
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Q5. The following information is related to CTH Corporation which manufactures a single product: (2 Marks) Selling price per unit: SAR 800 Variable cost per unit: SAR 240 Total fixed cost: SAR 400,000 You are required to calculate:
a) Contribution margin per unit and contribution margin ratio. b) The break-even point in units and break-even point is sales value SAR. c) Pretax profit of the company if it sells 1,400 units of the product. d) The number of units required to sell to reach a target pretax profit of SAR 200,000?
a) The contribution margin per unit is SAR 560, the contribution margin ratio is 70%, the break-even point in units is 714.29 units, b) the break-even point in sales value is SAR 571,432, c) the pretax profit if the company sells 1,400 units of the product is SAR 384,000, and d) the number of units required to sell to reach a target pretax profit of SAR 200,000 is 1,071.43 units.
a) Contribution margin per unit = Selling price per unit - Variable cost per unit = SAR 800 - SAR 240 = SAR 560
Contribution margin ratio = Contribution margin per unit / Selling price per unit = SAR 560 / SAR 800 = 70%
b) Break-even point in units = Total fixed cost / Contribution margin per unit = SAR 400,000 / SAR 560 = 714.29 units
Break-even point in sales value = Break-even point in units * Selling price per unit = 714.29 * SAR 800 = SAR 571,432
c) Pretax profit = (Selling price per unit * Number of units sold) - (Variable cost per unit * Number of units sold) - Total fixed cost = (SAR 800 * 1,400) - (SAR 240 * 1,400) - SAR 400,000 = SAR 1,120,000 - SAR 336,000 - SAR 400,000 = SAR 384,000
d) Number of units required to sell to reach a target pretax profit of SAR 200,000 = (Total fixed cost + Target pretax profit) / Contribution margin per unit = (SAR 400,000 + SAR 200,000) / SAR 560 = 1,071.43 units.
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The purpose of synthesizing information is to:
prove that your facts are the most relevant facts to support your thesis or claim.
think critically about information from many sources and use that evidence to support a claim, thesis or larger idea that may not be stated directly (but you can show us through evidence how you came to your big, new idea).
state one fact from one source to focus on one detail to support a claim, main idea, or thesis.
Students can combine information from several sources by information synthesising it. When these sources are merged, a single, coherent notion is produced. This is often how students are introduced to new concepts, theories, and knowledge in the classroom.
What is the information that is being synthesised?Information synthesis is the act of reviewing and comparing data from diverse sources, drawing connections between the data, and fusing the newly discovered data with previously known data to produce something new.
As you synthesise knowledge, you select particular concepts and take them into account in order to comprehend how they compare, contrast, and relate to one another. To produce a whole through synthesis, many components are combined.
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Product Decisions Under Bottlenecked OperationsMill Metals Inc. has three grades of metal product, Type 5, Type 10, and Type 20. Financial data for the three grades are as follows:Type 5 Type 10 Type 20Revenues $43,000 $49,000 $56,500Variable cost $34,000 $28,000 $26,500Fixed cost 8,000 8,000 8,000Total cost $42,000 $36,000 $34,500Income from operations $ 1,000 $13,000 $22,000Number of units ÷ 5,000 ÷ 5,000 ÷ 5,000Income from operations per unit $ 0.20 $ 2.60 $ 4.40Mill's operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day, 7 days a week, and is a production bottleneck. The furnace hours required per unit of each product are as follows:Type 5: 6 hoursType 10: 6 hoursType 20: 12 hoursThe Marketing Department is considering a new marketing and sales campaign.Which product should be emphasized in the marketing and sales campaign in order to maximize profitability?Determining the unit contribution margin per furnace hour will assist in making your decision. Round the unit contribution margin to two decimal places.Unit contribution margin per furnace hourType 5Type 10Type 20
The product that should be emphasized in the marketing and sales campaign in order to maximize profitability is the one with the highest unit contribution margin per furnace hour.
To calculate the unit contribution margin per furnace hour, we need to first calculate the unit contribution margin for each product type. The unit contribution margin is the difference between the revenue per unit and the variable cost per unit.
For Type 5, the unit contribution margin is $43,000/5000 - $34,000/5000 = $1.80
For Type 10, the unit contribution margin is $49,000/5000 - $28,000/5000 = $4.20
For Type 20, the unit contribution margin is $56,500/5000 - $26,500/5000 = $6.00
Next, we need to calculate the unit contribution margin per furnace hour by dividing the unit contribution margin by the furnace hours required per unit of each product.
For Type 5, the unit contribution margin per furnace hour is $1.80/6 = $0.30
For Type 10, the unit contribution margin per furnace hour is $4.20/6 = $0.70
For Type 20, the unit contribution margin per furnace hour is $6.00/12 = $0.50
Therefore, the product with the highest unit contribution margin per furnace hour is Type 10, with a unit contribution margin per furnace hour of $0.70. This is the product that should be emphasized in the marketing and sales campaign in order to maximize profitability.
Unit contribution margin per furnace hour:
Type 5: $0.30
Type 10: $0.70
Type 20: $0.50
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ABC Incorporated shares are currently trading for $32 per share. The firm has 1.13 billion shares outstanding. In addition, the market value of the firm’s outstanding debt is $2 billion. The 10-year Treasury bond rate is 6.25%. ABC has an outstanding credit record and has earned a AAA rating from the major credit-rating agencies. The current interest rate on AAA corporate bonds is 6.45%. The historical risk premium over the risk-free rate of return is 5.5%. The firm’s β is estimated to be 1.1, and its marginal tax rate, including federal, state, and local taxes, is 40%.
a. What is the cost of equity?
b. What is the after-tax cost of debt?
c. What is the WACC?
The cost of equity for ABC Incorporated can be calculated using the Capital Asset Pricing Model (CAPM) formula:
Cost of equity = Risk-free rate + (Beta × Market risk premium)
= 6.25% + (1.1 × 5.5%)
= 6.25% + 6.05%
= 12.30%
The after-tax cost of debt can be calculated using the formula:
After-tax cost of debt = Before-tax cost of debt × (1 - Tax rate)
= 6.45% × (1 - 0.40)
= 3.87%
The Weighted Average Cost of Capital (WACC) can be calculated using the formula:
WACC = (E/V) × Cost of equity + (D/V) × Cost of debt × (1 - Tax rate)
Where E is the market value of equity, V is the total market value of the firm, and D is the market value of debt.
E = 1.13 billion × $32 = $36.16 billion
V = $36.16 billion + $2 billion = $38.16 billion
D = $2 billion
WACC = ($36.16 billion/$38.16 billion) × 12.30% + ($2 billion/$38.16 billion) × 6.45% × (1 - 0.40)
= 0.947 × 12.30% + 0.052 × 3.87%
= 11.65% + 0.20%
= 11.85%
Therefore, the cost of equity for ABC Incorporated is 12.30%, the after-tax cost of debt is 3.87%, and the WACC is 11.85%.
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The current price of a non-dividend-paying stock is $50 per share. The prices of European call and put options written on the stock with strike price $50 and expiring in 6 months are $10 and $6, respectively. The risk-free rate is currently 8% per year with continuous compounding. Please explain briefly if there is an arbitrage opportunity, and if so, how would take advantage of it. Be precise as to what instruments you would buy and sell, and in which quantities.
You can earn a risk-free profit of $1.98 by taking advantage of this arbitrage opportunity.
There is an arbitrage opportunity in this scenario. Here's how you can take advantage of it:
1. Buy one European put option for $6.
2. Sell one European call option for $10.
3. Buy one share of the stock for $50.
4. Borrow $50 at the risk-free rate of 8% per year with continuous compounding.
At expiration, the value of the put option will be max(0, $50 - $50) = $0, and the value of the call option will be max(0, $50 - $50) = $0. The value of the stock will be $50, and the value of the borrowed money will be $50 * e^(0.08 * 0.5) = $52.02.
So, your total profit will be:
Profit = -$6 + $10 - $50 + $50 - $52.02 = $1.98
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Luciano sells linguini imported from Italy in his restaurant shop. It takes about three weeks for the Italian company to ship an order. The fixed costs of ordering are about $75.00 for bookkeeping expenses. The linguini costs Luciano $2.00 per packet and may be purchased in any quantity. Luciano states that his holding costs are based on a 20% annual rate. However, the demand for linguini has been uncertain, but looking at past data, the shop feels confident that weekly demand for linguini is normal with mean 12 and standard deviation of 8. Assume there are 52 weeks per year. The cost of loss of goodwill is estimated in $8/ packet. 1. Determine the optimal order quantity (Q) for this inventory system and Replenishment Level (R) using a Q, R model. 2. What is the optimal safety stock for this inventory system? 3. What is the total cost for this inventory system? 4. Suppose that a Type 2 service objective of 95 percent is substituted for the stock out cost of $8.
The fixed costs of ordering are about $75.00 for bookkeeping expenses. The linguini costs Luciano $2.00 per packet and may be purchased in any quantity. Luciano states that his holding costs are based on a 20% annual rate.
However, the demand for linguini has been uncertain, but looking at past data, the shop feels confident that weekly demand for linguini is normal with mean 12 and standard deviation of 8.
Assume there are 52 weeks per year. The cost of loss of goodwill is estimated in $8/ packet.
To answer your question, the optimal order quantity (Q) and replenishment level (R) can be determined using a Q, R model.
Q is calculated by taking the mean demand per week (12) multiplied by the order cycle length (3) and adding the safety stock (SS) to that value:
Q = 12 x 3 + SS.
The optimal R value is equal to the mean demand per week (12). The optimal safety stock for this inventory system can be determined by using the formula:
SS = Z x σ x √(t/T),
Where Z is the z-score (1.645 for a 95% confidence level), σ is the standard deviation of demand (8), t is the order cycle length (3) and T is the total number of weeks in the year (52).
So, SS = 1.645 x 8 x √(3/52) = 6.87 packets.
The total cost for this inventory system is equal to the sum of the fixed cost of ordering ($75) plus the ordering cost (Q x $2 per packet) plus the holding cost (Q x 20% annual rate) plus the stock out cost (R x $8).
Finally, if a Type 2 service objective of 95 percent is substituted for the stock out cost of $8, the total cost for this inventory system would remain the same.
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An aggressive working capital policy:
A. Uses more short-term financing than long-term
B. Uses short-term financing to support only the temporary working capital
C. Supports a portion of permanent working capital with short-term financing
D. Both A and B
E. Both A and C
An aggressive working capital policy uses more short-term financing than long-term and Supports a portion of permanent working capital with short-term financing. Therefore, the correct answer is E. Both A and C.
An aggressive working capital policy uses more short-term financing than long-term financing and also supports a portion of permanent working capital with short-term financing. This type of policy is used by companies who are willing to take on more risk in order to potentially achieve higher returns. By relying on short-term financing, a company can potentially reduce their overall financing costs, but they also run the risk of not being able to meet their short-term obligations if they run into financial difficulties.
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John sold his 2nd-hand car to Marie for P200,000. They agreed that John will pay half of the purchase price, or P100,000, upon delivery of the said car to Marie, and the balance of P100,000 shall be paid in five (5) equal monthly installments of P20,000 each. The car was delivered to Marie, and she paid P100,000 to John. Shortly thereafter, the car was stolen from Marie’s garage without her fault and was never recovered. Is Marie still legally bound to pay John the unpaid balance of P100,000? Explain your answer.
Please include the applicable articles.
Under Article 1496 of the Civil Code of the Philippines, "the ownership of the thing sold is transferred to the vendee upon the actual or constructive delivery thereof." In this case, the car was already delivered to Marie, and she has already paid P100,000 of the purchase price. Therefore, the ownership of the car has already been transferred to her.
However, under Article 1262 of the Civil Code of the Philippines, "an obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the debtor, and before he has incurred in delay." Since the car was stolen from Marie's garage without her fault, and before she has incurred in delay in the payment of the balance, her obligation to pay the remaining P100,000 is extinguished.
Therefore, Marie is no longer legally bound to pay John the unpaid balance of P100,000.
In conclusion, John sold his 2nd-hand car to Marie for P200,000. They agreed that Marie will pay half of the purchase price upon delivery of the car, and the balance in five equal monthly installments. However, the car was stolen from Marie's garage without her fault, and before she has incurred in delay in the payment of the balance. Therefore, Marie is no longer legally bound to pay John the unpaid balance of P100,000, as provided under Article 1262 of the Civil Code of the Philippines.
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True or False: Having emotional flare ups, showing our real emotions by being
confrontational, and resisting seeing other's views shows a lack of emotional
intelligence.
O True
O False
Qustion#3 [4+6]
(a) ‘Impact of culture is pervasive.’- Explain the statement.
(b) What are some particularly troublesome problems caused by
language in foreign marketing? Discuss.
(a) The statement 'Impact of culture is pervasive' implies that culture has a significant influence on individuals, organizations and societies.
(b) One particular problem caused by language in foreign marketing is the difficulty in conveying complex concepts.
Cultural norms and values shape the behaviour, beliefs and practices of people, organizations and countries. This means that culture affects every aspect of our lives and has a far-reaching impact on how we perceive and interact with others.
(a) The statement 'Impact of culture is pervasive' implies that culture has a significant influence on individuals, organizations and societies.
(b) One particular problem caused by language in foreign marketing is the difficulty in conveying complex concepts.
Even if the same language is spoken in two different countries, there may be significant differences in the meaning and usage of words, making it difficult to communicate effectively with foreign customers.
Additionally, cultural differences in communication styles can make it difficult to understand or appreciate foreign marketing messages, as the message may be interpreted differently from the way it was intended.
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what did John,Harriet tubman and the other slaves try to tell Harriet white masters after church?
Harriet was illiterate, so she communicated with her fellow slaves by singing songs that white people couldn't comprehend. Secret codes were hidden in the lyrics of the songs.
Does communicating imply talking?
You share or exchange information with someone when you communicate with them, for example, by speaking, writing, or using equipment. It is also possible to claim that two persons converse. Messages can be verbal or nonverbal in human communication: A verbal message is an exchange of information via the use of words. Examples include face-to-face contact, telephone conversations, voicemails, email etc. A comment indicating approbation of one's articulation style. Very beautifully said. Very beautifully said. properly articulated.
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1. Peggy richey operates peggy's pizza place in southern california. She has maintained a sales history from january through june and wants to compare this year's sales with last year's sales. Calculate her sales variances and percentage variances for the first 6 months of the year
We divide the sales variation by the sales from the previous year and multiply the result by 100 to get the percentage variance. The first half of the year's sales variance totals $7,000, which is an 8.2% rise over the same period previous year.
Peggy should have kept a record of her sales figures for both years to make the comparison.
Let's assume that Peggy's sales figures for the first six months of last year were as follows:
January: $20,000
February: $22,000
March: $25,000
April: $28,000
May: $30,000
June: $32,000
And her sales figures for the first six months of this year were as follows:
January: $22,000
February: $25,000
March: $28,000
April: $30,000
May: $33,000
June: $35,000
To calculate the sales variance for each month, we need to subtract the sales figure for last year from the sales figure for this year:
January: $22,000 - $20,000 = $2,000
February: $25,000 - $22,000 = $3,000
March: $28,000 - $25,000 = $3,000
April: $30,000 - $28,000 = $2,000
May: $33,000 - $30,000 = $3,000
June: $35,000 - $32,000 = $3,000
To calculate the percentage variance for each month, we need to divide the sales variance by the sales figure for last year and multiply by 100:
January: ($2,000 / $20,000) x 100 = 10%
February: ($3,000 / $22,000) x 100 = 13.6%
March: ($3,000 / $25,000) x 100 = 12%
April: ($2,000 / $28,000) x 100 = 7.1%
May: ($3,000 / $30,000) x 100 = 10%
June: ($3,000 / $32,000) x 100 = 9.4%
These figures show that Peggy's sales increased for every month of the year compared to the same month last year, with the largest increase being in February at 13.6%. Overall, Peggy's total sales for the first six months of this year were $9,000 higher than for the same period last year, representing a total percentage variance of 8.5%.
Peggy can use this information to make informed decisions about her business, such as whether to increase advertising or promotions during certain months, or to adjust her inventory levels to accommodate the higher sales volume.
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When bonds are issued at a discount, the total interestcost to the issuing corporation equals the interest payments minusthe bond discount.Required:True? or False? Explain your answer!
The given statement "when bonds are issued at a discount, the total interest cost to the issuing corporation equals the interest payments minus the bond discount" is true because the total interest cost to the issuing corporation when bonds are issued at a discount equals the interest payments minus the bond discount.
This is because the bond discount represents the difference between the amount that the corporation receives when it issues the bonds and the amount that it has to repay when the bonds mature. Therefore, the total interest cost to the corporation is the amount of the interest payments minus the amount of the bond discount.
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In 2017, a company was planning to launch a new project in Canada The cost of the production equipment is $1420,000 The equipment falls in CCA class 8 with a 20% rate for income tax purposes. A working capital investment of $125,000 will be required at the beginning of the project, which will be recoverable at the end the project's life in six years. The sales forecast is based on the sale of 85,000 widgets per year. The unit selling price is $20 per widget and the unit variable cost is $6 Annual fixed cost totals $650,000. At the end of the lifetime of the project the salvage value of the equipment is expected to be $180,000. There will be ascets remaining in that CCA asset class so you can use the PV of CCA tax shield calculation The company's income tacrate is 30% and its discount rate is 12% What is the NPV of the project? Would you recommend approval? Calculate and input the dollar amounts for each of the six steps (nearest dollar without dollar sign (5) or comma 15000) Negative cash How is - 15000) What is the correct value for Step #1 _____
What is the correct value for Step #2 _____ What is the correct value for Step #3 _____
What is the correct value for Step #4? _____
What is the correct value for Step NS? ____
What is the correct value for Step 6 ____
What is the NPV for the project _____ Based on your answers to the first six questions, what is the appropriate course of action to follow? ___
The question asks for the NPV of a new project in Canada with a cost of $1,420,000, a working capital investment of $125,000, 85,000 widgets sold per year at $20 each with a unit variable cost of $6, annual fixed costs of $650,000 and a salvage value of $180,000. The company's income tax rate is 30% and its discount rate is 12%.
Step #1: Calculate the annual cash flows over the six-year life of the project. This can be done by subtracting the variable costs and fixed costs from the annual sales revenue.
Annual Cash Flow = (85,000 x $20) - (85,000 x $6) - $650,000 = $1,385,000
Step #2: Calculate the present value of the cash flows using the company's discount rate.
Present Value = $1,385,000 x PVIFA 12%, 6 years = $7,220,421
Step #3: Calculate the salvage value of the equipment at the end of the life of the project.
Salvage Value = $180,000
Step #4: Calculate the cost of the project.
Cost = $1,420,000
Step #5: Calculate the working capital investment required at the beginning of the project.
Working Capital Investment = $125,000
Step #6: Calculate the negative cash flow.
Negative Cash Flow = Cost - Working Capital Investment = $1,420,000 - $125,000 = $1,295,000
The NPV of the project is calculated by subtracting the present value of the cash flows and salvage value from the cost and negative cash flow.
NPV = $1,295,000 - $7,220,421 - $180,000 = -$5,195,421
Based on the calculation of the NPV, it would not be recommended to approve the project as the NPV is negative.
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Which best describes the social function of celebrity described by Markham (2017) and Couldry (2012)?Select one:a.To distract society from its real problems associated with inequalityb.To provide a mass ritual for the negotiation of social valuesc.To fill the pages of newspapers cheaplyd.To celebrate the achievements of ordinary people
According to Markham (2017) and Couldry (2012), the social function of celebrity that best describes is to provide a mass ritual for the negotiation of social values (option b).
Celebrities have a significant impact on society and are often seen as role models. They are often used to promote certain values and ideals, and their actions and opinions can influence the way that people think and behave. Markham (2017) and Couldry (2012) argue that celebrities play a crucial role in the negotiation of social values, as they are often at the forefront of discussions about what is acceptable and unacceptable in society. Through their actions and the way they present themselves, celebrities help to shape the way that people think about issues such as gender, race, and class.
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For each of the three main business strategies that were employed by Maybank to achieve its objective of becoming a ‘leading regional financial services group’ –namely, acquisition, internationalization and organic growth –what are the main human resources strategies that were applied?
Maybank employed three main business strategies to achieve its objective of becoming a "leading regional financial services group." These strategies included acquisition, internationalization, and organic growth. Each of these strategies required different human resources strategies to be applied in order to be successful.
1. Acquisition: Maybank acquired several other financial services companies in order to expand its reach and capabilities. The main human resources strategy applied in this case was integration. Maybank needed to integrate the employees of the acquired companies into its own workforce, ensuring that they were properly trained and aligned with Maybank's values and culture.
2. Internationalization: Maybank expanded its operations into other countries, which required a different set of human resources strategies. The main strategy applied in this case was localization. Maybank needed to hire local employees who understood the local market and could help the company navigate the cultural and regulatory differences in each country.
3. Organic Growth: Maybank also focused on growing its business organically, which required a different set of human resources strategies. The main strategy applied in this case was talent development. Maybank needed to invest in training and development programs to help its employees acquire the skills and knowledge they needed to support the company's growth.
Overall, Maybank applied different human resources strategies depending on the business strategy it was pursuing. By doing so, the company was able to successfully achieve its objective of becoming a leading regional financial services group.
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why diversity in the workplace is so important? list at leastthree strategies that may lead to greater diversity practices inthe organization
Diversity in the workplace is important for several reasons, It promotes creativity and innovation,It fosters inclusivity ,It helps companies attract and retain top talent.
1. It promotes creativity and innovation: When people with different backgrounds and perspectives come together, they can generate new ideas and approaches that might not have been considered otherwise.
2. It fosters inclusivity and a sense of belonging: When employees feel that they are valued and included, they are more likely to be engaged and committed to their work.
3. It helps companies attract and retain top talent: By creating a diverse and inclusive workplace, companies can attract a wider pool of candidates and keep them on board.
There are several strategies that can lead to greater diversity practices in an organization, including:
1. Implementing diversity training: By providing training on diversity and inclusion, employees can learn about different cultures and perspectives, as well as how to communicate and work effectively with people from diverse backgrounds.
2. Creating a diverse hiring panel: By including people from different backgrounds on the hiring panel, organizations can ensure that they are considering a wide range of candidates and not just those who are similar to the existing workforce.
3. Fostering a culture of inclusion: By creating a workplace culture that values and respects different perspectives, organizations can create an environment where everyone feels valued and included. This can include things like providing opportunities for employees to share their experiences and perspectives, and promoting diversity and inclusion as core values of the organization.
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How one should link HR process to strategy? During this period
of Pandemic, if you were given the chance to choose and apply any
HR approach for strategy attainment, which one you are going to
choose
Linking HR processes to strategy involves ensuring that the HR processes are aligned with the overall business strategy of the organization. This can be done by identifying the key goals and objectives of the organization and ensuring that the HR processes support these goals.
For example, if the organization's strategy is to expand into new markets, the HR processes should support this goal by identifying and recruiting the necessary talent, providing training and development opportunities, and creating a culture that supports growth and innovation.
During the COVID-19 pandemic, one HR approach that could be used for strategy attainment is the use of remote work and flexible work arrangements. This approach allows employees to work from home or other locations, which can help to reduce the risk of exposure to the virus and support the health and safety of employees.
Additionally, this approach can help to increase productivity and support the organization's goals by allowing employees to work in a way that best suits their needs and preferences.
This can also help to reduce costs associated with maintaining a physical office space and can support the organization's overall strategy during this challenging time.
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Consider the following two investment opportunities: a stock fund and a bond fund with E(rS)=0.20, σS=0.27, E(rB)=0.12, σB=0.15. The correlation coefficient between the two funds is 0.10. The expected rate of return of the minimum variance portfolio is _______%. (Please round your answer to the nearest first decimal place and note that a return of 0.251 should be expressed as 25.1%.)
The expected rate of return of the minimum variance portfolio is 17.1%.
The expected rate of return of the minimum variance portfolio can be calculated using the following formula:
E(rP) = wS * E(rS) + wB * E(rB)
Where:
E(rP) is the expected rate of return of the portfolio
wS is the weight of the stock fund in the portfolio
E(rS) is the expected rate of return of the stock fund
wB is the weight of the bond fund in the portfolio
E(rB) is the expected rate of return of the bond fund
To find the weights of the stock and bond funds in the minimum variance portfolio, we can use the following formulas:
wS = (σB^2 - ρSB * σS * σB) / (σS^2 + σB^2 - 2 * ρSB * σS * σB)
wB = 1 - wS
Where:
σS is the standard deviation of the stock fund
σB is the standard deviation of the bond fund
ρSB is the correlation coefficient between the stock and bond funds
Plugging in the given values:
wS = (0.15^2 - 0.10 * 0.27 * 0.15) / (0.27^2 + 0.15^2 - 2 * 0.10 * 0.27 * 0.15) = 0.64
wB = 1 - 0.64 = 0.36
Now we can plug these weights into the formula for the expected rate of return of the portfolio:
E(rP) = 0.64 * 0.20 + 0.36 * 0.12 = 0.1712
Therefore, the expected rate of return of the minimum variance portfolio is 17.1%.
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A perfectly competitive firm maximizes its profit by
At the point where its overall cost curve meets its total revenue curve, a perfectly competitive company maximises its earnings.
What does "revenue curve" mean?The company so acts as the price taker. Also, in this scenario, all businesses sell the same kinds of commodities. As a result, although the revenue fluctuates, the price does not. Here, the average revenue curve runs parallel to the X-axis in a straight line. Moreover, in this case, AR = MR. The amount made per output unit is known to as average revenue. Since any quantity is required at the given price under perfectly competitive, the average sales curve has the shape of a horizontal straight line.
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