W-4 is a type of certificate that is used while hiring an employee.
W-4 is a type of certificate that is used while hiring an employee. This form tells multiple information about the employee like deductions, amounts of credit, job adjustments, etc.
It includes worksheets to help with the adjustments of the employee.Employees' status of fillingIt can be used to calculate employee's income taxIf an employee cannot fill and give this form he or she may get deductions in their wages. An employee can also change the details supplied by him due to various reasons or depending upon his or her financial situation. An employee must keep a copy of this form for at least 4 years as this form is a part of the verification of one's federal income tax.
Thus, the W-4 is a type of certification used while hiring an employee.
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Question You own a bond with a par value of $1.000 and a coupon rate at man couponi. You know it has a content yield of 2.75%. What is to ol yield to maturity? The bond has 10 years to maturity Current Yield annual payment/pricel hint solve for price to answer the question
A. 12.93%
B. 92.68%
C. 9.88
D. 12.739
E. 8.75
The yield to maturity of the bond is 3.89%, or 12.93% when expressed as an annualized rate. The correct answer is A. 12.93%.
To calculate the yield to maturity of a bond, you need to know the par value, coupon rate, current yield, and the number of years to maturity. In this case, the par value is $1,000, the coupon rate is 10%, the current yield is 2.75%, and the bond has 10 years to maturity.
The formula for yield to maturity is:
YTM = (C + (F - P) / N) / ((F + P) / 2)
Where C is the annual coupon payment, F is the face value of the bond, P is the price of the bond, and N is the number of years to maturity.
Plugging in the values from the question:
YTM = (100 + (1000 - P) / 10) / ((1000 + P) / 2)
Solving for P:
P = 1000 - (100 - 2.75 * 10) / YTM
P = 1000 - (100 - 27.5) / YTM
P = 1000 - 72.5 / YTM
P = 927.5 / YTM
Now we can plug this value of P back into the original equation and solve for YTM:
YTM = (100 + (1000 - 927.5 / YTM) / 10) / ((1000 + 927.5 / YTM) / 2)
YTM = (100 + 7.25 / YTM) / (1963.5 / YTM)
YTM = (100 * YTM + 7.25) / 1963.5
YTM = 0.051 * YTM + 0.00037
YTM - 0.051 * YTM = 0.00037
0.949 * YTM = 0.00037
YTM = 0.00037 / 0.949
YTM = 0.000389
YTM = 0.0389
YTM = 3.89%
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why would the stock exchange insist that all companies abide by a strict code of rules and procedures??
To guarantee honest and open trading methods for all investors, the stock market requires that all businesses adhere to a stringent code of regulations and rules.
How does stock exchange market works?To guarantee honest and open trading methods for all investors, the stock market requires that all businesses adhere to a stringent code of regulations and rules. This supports market confidence and preserves the credibility of the stock market. Companies that adhere to these guidelines and practises give investors accurate and timely information, ensuring that all stakeholders have the same access to information. This aids in preventing market manipulation and other unethical actions that can endanger investors. Additionally, by regulating the behaviour of businesses and their leaders, these rules and processes serve to ensure that they behave in the most beneficial way for shareholders and the marketplace as a whole.
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Fran Jefferson began her job as the supervisor of the training department of Metro Bank and Trust Company almost four years ago, she was generally pleased with the four trainers and one secretary in her unit. Indeed, Fran took pride in her ability to create a high morale and high-performance unit. This was particularly pleasing to Fran because they were constantly busy and barely able to keep up with the volume of training expected from them. Then early on Wednesday morning Fran’s secretary, Judy Martin knocked on Fran’s door and asked to see her. Fran Liked Judy and considered the secretary to be one of her "stars." Indeed, in an effort to develop Judy’s talents and abilities, Fran had gone out of her way to give Judy special assignments, including her in all the major planning activities of the department and entrusting her with the administration of certain departmental programs, such as tuition assistance and evaluation follow-through. By now Judy functioned more as an administrative aide than as a secretary. It was clear that Judy was upset about something as she seated herself in the chair next to Fran’s desk. Slowly, Judy placed a job-posting application form in front of Fran. She would not look her supervisor in the eyes. Fran was surprised, to say the least. As far as Fran knew, Judy liked both her hob and working in the Training Department. In turn, everyone else in the department liked and respected Judy. Fran looked over the form and said casually, "so you want to post for the executive secretary job in the Branch Management Division." She paused. Could I ask you for some additional information, Judy? I‘m kind of surprised." Judy looked at her clasped hands, thinking. Fran waited. Finally, Judy looked up and said: "I noticed in last week’s job posting that the executive secretary position is graded as a 14. Now that’s two grades higher than my job!" She caught her breath. "You know my friend Mary Johnson works over there. She told me that half the time the secretary sits around doing nothing." Judy continued, Gathering some anger in her look and resentment in her voice. "Look, Fran, you know how hard I work, how hard we all work, around here. I mean. I’m always busy. I don’t see why I should work in a job graded at a 12 and work twice as hard and yet not be paid the same as that secretary. The job requirements for the job are just a little higher than mine and the merit raise you gave me last month hardly helped at all." Fran listened; then she replied: "It sounds to me, Judy, that you’re feeling angry because you think you should be paid more for the work you do and that you want to switch jobs rather than put up with things as they are. Am I right?" Judy nodded her head in agreement. Fran knew, though, that the Metro hob evaluation system was up to date and that the executive secretary position to which Judy referred did require additional background experience, skills, and responsibilities beyond what was needed in Judy’s current hob. Because her secretary was such a good employee and nice person, Fran was quite concerned. She felt strongly that moving to the executive secretary job would not be what Judy really wanted, and she hated to lose Judy, especially her decision was based on faulty reasoning and the move would not be good for her.
Help me to answer these 3 questions, please.
1. What is/ are the problem/s presented in the case?
2. What HR responsibility/ responsibilities of a line manager does Fran need to focus on to solve the problem/s in this case?
3. What HR activities/ programs can you recommend to be implemented in the organization in order to prevent these problems from happening again?
1. The problem in the case Judy, feels that she is not being paid fairly for the amount of work that she does.
2. Fran needs to focus on the HR responsibility of compensation management in order to solve the problem.
3. The HR activities include pay fairly, create opportunities, create a transparency etc.
The problem presented in the case is that Judy, Fran's secretary, feels that she is not being paid fairly for the amount of work that she does and wants to switch jobs to a higher paying position that she believes requires less work. Additionally, Fran is concerned about losing Judy as an employee and wants to prevent her from making a decision based on faulty reasoning.
She needs to ensure that Judy understands how the job evaluation system works and why the executive secretary position is graded higher and requires additional background experience, skills, and responsibilities. Fran also needs to focus on employee development and career planning in order to help Judy find a position that would be a good fit for her.
Some HR activities and programs that can be implemented in the organization to prevent these problems from happening again include conducting regular compensation reviews to ensure that employees are being paid fairly, providing training and development opportunities and advance their careers, and creating a transparent job evaluation system.
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Which of the following is a way to track your spending?
A. Spreadsheet budget
B. Envelope method
C. An app
D. All of the above
All of the above that is spreadsheet budget, envelope method and an app is a way to track your spending.
What is a budget?
A budget is a calculation plan, typically money but not always, for a specific time frame, typically one year or one month. Predicted sales and revenue amounts, resource quantities (such as time, costs, and expenditures), environmental impacts (such as greenhouse gas emissions), other impacts, assets, liabilities, and cash flows are all possible inclusions in a budget. Budgets are a measurable way for businesses, governments, families, and other organizations to communicate their strategic plans of action. Although budgets are used by both businesses and governments to keep track of revenues and expenses, you may be most acquainted with them as a tool for managing your personal finances.
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According to the cas study 'the engineering team finds the best combination of equipments and producibility,jointly with supply management.What does that mean,which supply chain term best describe this statement?
The engineering team is engaging in a process of supplier selection and evaluation. This is a term often used in supply chain management and is an important part of any company’s operations.
According to the case study, the engineering team is working closely with supply management to find the best combination of equipment and producibility. This means that they are collaborating to ensure that they have the right resources and processes in place to efficiently and effectively produce their products.
The supply chain term that best describes this statement is "collaboration." Collaboration is the process of working together to achieve a common goal. In this case, the engineering team and supply management are collaborating to find the best combination of equipment and producibility in order to produce their products efficiently and effectively.
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What should be the current price of a stock if the expected dividend is $5, the stock has a required return of 20%, and a constant dividend growth rate of 6%? A. $19.23 B. $25.00 C. $35.71 D. $37.86
The current price of the stock should be $35.71.
The correct answer is C. $35.71.
The current price of a stock can be calculated using the dividend discount model (DDM). The DDM is a formula that is used to determine the intrinsic value of a stock based on its dividend, required return, and dividend growth rate. The formula is:
P₀ = D₁ / (r - g)
Where:
- P₀ is the current price of the stock
- D₁ is the expected dividend
- r is the required return
- g is the constant dividend growth rate
Plugging in the values from the question, we get:
P₀ = $5 / (0.20 - 0.06)
P₀ = $5 / 0.14
P₀ = $35.71
Therefore, the current price of the stock should be $35.71. The correct answer is C. $35.71.
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You are a financial advisor. Each week on Wednesday, you mail out a financial advisory letter to your clients outlining predictions for the coming week. Some of your clients pay an additional fee to receive the letter as a pdf attachment to an email. These clients will get the information 24 to 48 hours before the clients who do not subscribe to this premium service. Is this policy consistent with Standard III (B) Fair Dealing?
A. Yes, because it is your information and you may disclose it to whomever you want and however you want.
B. No, because you charge the premium candidates more.
C. No, because the premium service candidates are treated better than others.
D. Yes, so long as you disclose the service to all clients and permit all clients to subscribe to the higher cost service.
Yes, so long as you disclose the service to all clients and permit all clients to subscribe to the higher cost service.
The correct answer is option d.
Standard III (B) Fair Dealing of the CFA Institute Code of Ethics and Standards of Professional Conduct states that members and candidates must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities. This means that all clients should have equal access to information and opportunities. In this case, the financial advisor is offering a premium service that allows clients to receive information earlier than other clients. This is acceptable as long as the advisor discloses the service to all clients and allows all clients the opportunity to subscribe to the higher cost service. Therefore, the correct answer is D. Yes, so long as you disclose the service to all clients and permit all clients to subscribe to the higher cost service.
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The TecOne Corporation is about to begin producing and selling its prototype product. Annual cash flows for the next five years are forecasted as:
year cash flow
1 -$50.000
2 -$20.000
3 $100.000
4 $400.000
5 $800.000
A. Assume annual cash flows are expected to remain at the $800,000 level after Year 5 (i.e., Year 6 and thereafter). If TecOne investors want a 40 percent rate of return on their investment, calculate the venture’s present value.
B. Now assume that the Year 6 cash flows are forecasted to be $900,000 in the stepping-stone year and are expected to grow at an 8 percent compound annual rate thereafter. Assuming that the investors still want a 40 percent rate of return on their investment, calculate the venture’s present value.
C. Now extend Part B one step further. Assume that the required rate of return on the investment will drop from 40 percent to 20 percent beginning in Year 6 to reflect a drop in operating or business risk. Calculate the venture’s present value.
D. Let’s assume that TecOne investors have valued the venture as requested in Part C. An outside in- vestor wants to invest $3 million in TecOne now (at the end of Year 0). What percentage of owner- ship in the venture should the TecOne investors give up to the outside investor for a $3 million new investment?
The TecOne Corporation is about to begin producing and selling its prototype product. Annual cash flows for the next five years are forecasted . Following answers are:
A. The present value of the venture can be calculated using the formula:
PV = CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + CF4/(1+r)^4 + CF5/(1+r)^5 + CF6/(1+r)^6 + ...
Where PV is the present value, CF is the cash flow, r is the rate of return, and n is the year.
Plugging in the given values:
PV = -$50,000/(1+0.4)^1 + -$20,000/(1+0.4)^2 + $100,000/(1+0.4)^3 + $400,000/(1+0.4)^4 + $800,000/(1+0.4)^5 + $800,000/(1+0.4)^6 + ...
PV = -$35,714.29 + -$10,204.08 + $51,020.41 + $204,081.63 + $327,210.98 + $260,073.26 + ...
PV = $796,467.91
B. The present value of the venture with the new cash flow and growth rate can be calculated using the same formula, but with the new values plugged in:
PV = -$50,000/(1+0.4)^1 + -$20,000/(1+0.4)^2 + $100,000/(1+0.4)^3 + $400,000/(1+0.4)^4 + $800,000/(1+0.4)^5 + $900,000/(1+0.4)^6 + $972,000/(1+0.4)^7 + ...
PV = -$35,714.29 + -$10,204.08 + $51,020.41 + $204,081.63 + $327,210.98 + $286,592.56 + $246,939.96 + ...
PV = $1,069,926.17
C. The present value of the venture with the new required rate of return can be calculated using the same formula, but with the new rate plugged in for Year 6 and beyond:
PV = -$50,000/(1+0.4)^1 + -$20,000/(1+0.4)^2 + $100,000/(1+0.4)^3 + $400,000/(1+0.4)^4 + $800,000/(1+0.4)^5 + $900,000/(1+0.2)^6 + $972,000/(1+0.2)^7 + ...
PV = -$35,714.29 + -$10,204.08 + $51,020.41 + $204,081.63 + $327,210.98 + $358,491.94 + $340,553.19 + ...
PV = $1,235,439.78
D. The percentage of ownership that the TecOne investors should give up to the outside investor can be calculated using the formula:
% ownership = investment / post-money valuation
Where investment is the amount of money the outside investor is putting in, and post-money valuation is the value of the venture after the investment is made.
Plugging in the given values:
% ownership = $3,000,000 / ($1,235,439.78 + $3,000,000)
% ownership = 0.708
Therefore, the TecOne investors should give up 70.8% of ownership to the outside investor for a $3 million new investment.
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Assignment Question(s): (Marks 10) Q1. Examine with suitable examples, how"organization strategy provides a valuable contribution in achieving organization vision?" Give an example of a Saudi company and assess two examples of organizational strategies and operating plans. (2 Marks) Answer: Q2. X Ltd. manufactures plastic products and sells them for SAR 350 per unit. The firm's variable cost per unit is SAR 90, while its total fixed costs are SAR 110,000. The company expects to sell 1,800 units in the coming year. Calculate the following: (2 Marks) a) Degree of operating leverage b) Margin of safety in units c) Margin of safety in SAR value d) Margin of safety in percentage Answer: Q3. What is regression analysis and how does it help in estimating a cost function? Interpret your results with a numerical example. (2 Marks) Answer:
Organization strategy plays a crucial role in achieving an organization's vision by providing a roadmap for achieving the desired goals.
Q1. A well-defined strategy helps in aligning the company's resources and efforts in the right direction to achieve the vision. For example, a Saudi company, Saudi Aramco, has a vision to be the world's leading integrated energy and chemicals company. To achieve this vision, the company has adopted two organizational strategies - expanding its downstream business and investing in renewable energy. These strategies provide a valuable contribution in achieving the company's vision by diversifying its business and reducing its dependence on oil.
Q2. a) Degree of operating leverage = Contribution margin / Operating income = (350-90)/[(350*1800)-(90*1800)-110000] = 260/520000 = 0.0005
b) Margin of safety in units = Expected sales - Break-even sales = 1800 - (110000/260) = 1800 - 423.08 = 1376.92 units
c) Margin of safety in SAR value = Margin of safety in units * Selling price = 1376.92 * 350 = SAR 481922
d) Margin of safety in percentage = (Margin of safety in units / Expected sales) * 100 = (1376.92/1800) * 100 = 76.49%
Q3. Regression analysis is a statistical technique used to estimate the relationship between two or more variables. In cost accounting, regression analysis is used to estimate a cost function by analyzing the relationship between cost and activity level. The cost function can be used to predict the cost at different levels of activity. For example, if we have data on the cost of production and the number of units produced for a particular product, we can use regression analysis to estimate the fixed cost and variable cost per unit. The estimated cost function can be used to predict the cost at different levels of production.
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You are a financial analyst at Bank of America and you have collected following information for Lotus Tech Company. The company has beta of 1.25 and a ROE of 20%. The dividend payout ratio is 50%. Last twelve month earnings were $4 per share. The annual dividend was just paid. The consensus estimate of the coming year’s market return is 13%, and T-bills currently offer a 5% return.
1a. What is the intrinsic value of the stock? (input format: $15.32)
1b. What is PVGO? (input format: $15.32)
1c. Suppose your research convinces you that company will announce momentarily that it will immediately change its dividend payout ratio to 40%. Find the intrinsic value of the stock. (input format: $15.32)
1a. The intrinsic value of the stock can be calculated using the Dividend Discount Model (DDM) formula:
Intrinsic Value = (Dividend / (Required Rate of Return - Dividend Growth Rate))
Given the information provided, we can calculate the required rate of return using the Capital Asset Pricing Model (CAPM) formula:
Required Rate of Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)
Required Rate of Return = 5% + 1.25 * (13% - 5%) = 15%
We can also calculate the dividend growth rate using the formula:
Dividend Growth Rate = ROE * (1 - Dividend Payout Ratio)
Dividend Growth Rate = 20% * (1 - 50%) = 10%
Now we can plug in the values into the DDM formula:
Intrinsic Value = ($4 * 50% / (15% - 10%)) = $40
Therefore, the intrinsic value of the stock is $40.
1b. PVGO (Present Value of Growth Opportunities) is the difference between the intrinsic value of the stock and the no-growth value of the stock. The no-growth value of the stock can be calculated using the formula:
No-Growth Value = (Earnings / Required Rate of Return)
No-Growth Value = ($4 / 15%) = $26.67
PVGO = Intrinsic Value - No-Growth Value = $40 - $26.67 = $13.33
Therefore, the PVGO is $13.33.
1c. If the company changes its dividend payout ratio to 40%, we need to recalculate the dividend growth rate and intrinsic value.
New Dividend Growth Rate = 20% * (1 - 40%) = 12%
New Intrinsic Value = ($4 * 40% / (15% - 12%)) = $53.33
Therefore, the new intrinsic value of the stock is $53.33.
Explain the inventory conversion period and the payables
conversion period with an example. (50 marks).
The inventory conversion period and the payables conversion period are important metrics used to analyze a company's cash conversion cycle.
The inventory conversion period is the time it takes for a company to convert its inventory into sales. It is calculated by dividing the average inventory by the cost of goods sold and multiplying by 365.
For example, if a company has an average inventory of $100,000 and a cost of goods sold of $200,000, its inventory conversion period would be (100,000/200,000) x 365 = 182.5 days. This means it takes the company approximately 182.5 days to convert its inventory into sales.
The payables conversion period is the time it takes for a company to pay its suppliers. It is calculated by dividing the average accounts payable by the cost of goods sold and multiplying by 365.
For example, if a company has an average accounts payable of $50,000 and a cost of goods sold of $200,000, its payables conversion period would be (50,000/200,000) x 365 = 91.25 days. This means it takes the company approximately 91.25 days to pay its suppliers.
Both the inventory conversion period and the payables conversion period are important for a company to manage in order to maintain healthy cash flow. By reducing the inventory conversion period and increasing the payables conversion period, a company can improve its cash conversion cycle and increase its liquidity.
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You are a residential construction contractor considering forming a partnership with two other individuals. This partnership would support a larger marketing program and the possibility of qualifying for larger government contracts. What might be a consideration(s) that would discourage you from forming this partnership? Note: this is not a limited partnership or a S-Corp. (MARK ALL THOSE THAT APPLY)
A. A financial loss incurred by one member of the partnership becomes a shared liability
B. Illegal activities conducted by one of the other partners could increase my legal exposure because a costly legal action is shared by all partners
C. A financial loss incurred by one member of the partnership will not impact the other partner
D. Decision making could be more complex, getting agreement on major financial decisions could be an issue.
A. financial loss incurred by one member of the partnership becomes a shared liability, B. Illegal activities conducted by one of the other partners could increase my legal exposure because a costly legal action is shared by all partners,C. financial loss incurred by one member of the partnership will not impact the other partner is not a correct answer. D. Decision making could be more complex, getting agreement on major financial decisions could be an issue.
In a partnership, all members share the profits and losses of the business, meaning that if one member incurs a financial loss, it becomes a shared liability for all members. Finally, decision making could be more complex in a partnership, as all members must agree on major financial decisions, which could lead to disagreements and delays.
financial loss incurred by one member of the partnership will not impact the other partner is not a correct answer, as all members of a partnership share the profits and losses of the business.
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Chapter 5 Case StudyRequired: Book journal entries for the following transactions in both the Capital Projects Fund ledger and Government-Wide/Governmental Activities ledger.Background: The Town of Susanville voters approved a measure to add an extension to the local fire station expected to cost $2,520,000. To pay for this project, the town council authorized an issue of $2,320,000 of 5% bonds as partial financing of the fire station extension, and the $200,000 additional financing will be contributed by the state government.1. Purchase orders were signed and issued for supplies, materials, minor equipment, and labor required for the project to be performed by the town’s employees amounting to $500,000.Capital Projects Fund:Governmental Activities:2. A contract, in the amount of $1,925,000 was signed for certain work to be done by a private contractor.Capital Projects Fund:Governmental Activities:3. Special engineering and miscellaneous costs that had not been encumbered were paid in the amount of $75,000. These costs are deemed to be properly capitalized as part of the fire station.General Fund:Governmental Activities:4. The Town of Susanville received a progress billing from a contractor for work completed in the amount of $970,000. This contract had been encumbered for at the inception of the contract.General Fund:Governmental Activities:5. Payment in full ($200,000) was received from the state government that had agreed to pay part of the cost of the new fire station.General Fund:Governmental Activities:6. The Town of Susanville issued a bond at par value in the amount of $2,320,000 (with the issue date and the bond date June 15, 2022).General Fund:Governmental Activities:7. Upon inspection of the contractor’s performance, the liability to the contractor was paid for the first progress billing of $970,000.General Fund:Governmental Activities:8. Actual invoices for the encumbered supplies/materials (from entry 1 above) amounted to $495,000 and were paid in full.General Fund:Governmental Activities:9. The Town of Susanville received the final progress billing from the contractor for work completed in the amount of $955,000. This contract had been encumbered for at the inception of the contract.General Fund:Governmental Activities:10. Upon inspection of the contractor’s performance, the liability to the contractor was paid for the final progress billing of $955,000.General Fund:Governmental Activities:11. The project is now complete. All requirements and obligations related to the project have been fulfilled and the operating statement accounts were closed in the capital projects fund to Fund Balance - Restricted.General Fund:Governmental Activities:
Dr. Fund Balance - Restricted $3,005,000; Cr. Encumbrances $2,425,000; Cr. Expenditures $580,000
Capital Projects Fund:
1. Dr. Encumbrances $500,000; Cr. Fund Balance - Restricted $500,000
2. Dr. Encumbrances $1,925,000; Cr. Fund Balance - Restricted $1,925,000
3. Dr. Expenditures $75,000; Cr. Cash $75,000
4. Dr. Expenditures $970,000; Cr. Accounts Payable $970,000
5. Dr. Cash $200,000; Cr. Revenues - State Contributions $200,000
6. Dr. Cash $2,320,000; Cr. Other Financing Sources - Bond Issue $2,320,000
7. Dr. Accounts Payable $970,000; Cr. Cash $970,000
8. Dr. Expenditures $495,000; Cr. Accounts Payable $495,000
9. Dr. Expenditures $955,000; Cr. Accounts Payable $955,000
10. Dr. Accounts Payable $955,000; Cr. Cash $955,000
Dr. Accounts Payable $955,000; Cr. Cash $955,000. No entry needed.
Governmental Activities:
1. Dr. Construction in Progress $500,000; Cr. Accounts Payable $500,000
2. Dr. Construction in Progress $1,925,000; Cr. Accounts Payable $1,925,000
3. Dr. Construction in Progress $75,000; Cr. Cash $75,000
4. Dr. Construction in Progress $970,000; Cr. Accounts Payable $970,000
5. Dr. Cash $200,000; Cr. Capital Contributions - State Government $200,000
6. Dr. Cash $2,320,000; Cr. Bonds Payable $2,320,000
7. Dr. Accounts Payable $970,000; Cr. Cash $970,000
8. Dr. Construction in Progress $495,000; Cr. Accounts Payable $495,000
9. Dr. Construction in Progress $955,000; Cr. Accounts Payable $955,000
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What is LIBOR?:A. the interest rate commonly charged for loans between Eurobanks.B. the average inflation rate in European countries.C. the maximum loan rate ceiling on Eurocurrency loans.D. the maximum deposit rate ceiling on Eurocurrency depositsE. the maximum interest rate offered on bonds that are issued in London.
The LIBOR is "the interest rate commonly charged for loans between Eurobanks". Therefore, the correct answer is A.
LIBOR, or the London Interbank Offered Rate, is the average interest rate at which leading banks in London are willing to lend to one another. It is used as a benchmark for setting interest rates on loans and other financial products, and is considered one of the most important interest rates in the global financial market. It is calculated daily for five currencies (US dollar, Euro, British pound, Japanese yen, and Swiss franc) and seven borrowing periods, ranging from overnight to one year.
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Task 10. check your understanding by answering the following questions. 1. what is personal letter 2. what are the main parts of a personal letter 3. what is included in the heading 4. what do people normally write in the greeting section 5. where do we wrute our personal message 6. write an example of a complimentary close 7. what does p.s in a letter stand for 8. mention three common things that people normally write in a personal letter 9. mention five types of personal letter 10. can you guess the difference between personal letter and business letters
1. A personal letter is a type of letter that is written and sent to a specific individual or group of individuals for personal reasons, such as expressing gratitude, congratulations, condolences, or just to keep in touch.
2. The main parts of a personal letter are the heading, the greeting, the body, the closing, and the signature.
3. The heading of a personal letter typically includes the sender's address and the date the letter was written.
4. In the greeting section of a personal letter, people normally write a salutation such as "Dear [recipient's name]," or "Hello [recipient's name]."
5. The personal message of a personal letter is typically written in the body section of the letter.
6. An example of a complimentary close is "Sincerely," "Best wishes," or "Warm regards."
7. The abbreviation "P.S." in a letter stands for "postscript," and is used to add a brief additional message after the main body of the letter has been completed.
8. Three common things that people normally write in a personal letter are expressions of gratitude, updates on personal events or news, and expressions of support or encouragement.
9. Five types of personal letter are thank-you letters, condolence letters, congratulations letters, apology letters, and invitation letters.
10. The main difference between personal letters and business letters is that personal letters are typically more informal and conversational in tone, while business letters are more formal and professional in tone. Additionally, personal letters are usually written to friends, family, or acquaintances, while business letters are typically written to clients, colleagues, or other professional contacts.
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Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $6,000 is deposited initially at 9% annual interest for 7 years, and (2) determine the effective annual rate (EAR). Annual Compounding (1) The future value, FVn, is $ 10968.2. (Round to the nearest cent.) (2) If the 9% annual nominal rate is compounded annually, the EAR is 9 %. (Round to two decimal places.) Semiannual Compounding (1) The future value, FVn, is $ 9075.5. (Round to the nearest cent.)
The Annual Compounding of future value = $10968.2, EAR = 9%
The Semiannual Compounding of future value = $11242.0, EAR = 9.2%
The Quarterly Compounding of future value = = $11365.5, EAR = 9.38%
To answer this question, we need to calculate the future value (FVn) and effective annual rate (EAR) for each compounding period (annual, semiannual, and quarterly) using the formula FVn = P(1+r/n)^(nt) and EAR = (1+r/n)^(n)-1, where P is the initial deposit, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.
Annual Compounding:
(1) FVn = 6000(1+0.09/1)^(1*7) = 6000(1.09)^7 = 10968.2 (Round to the nearest cent.)
(2) EAR = (1+0.09/1)^(1)-1 = (1.09)^1-1 = 0.09 = 9% (Round to two decimal places.)
Semiannual Compounding:
(1) FVn = 6000(1+0.09/2)^(2*7) = 6000(1.045)^14 = 11242.0 (Round to the nearest cent.)
(2) EAR = (1+0.09/2)^(2)-1 = (1.045)^2-1 = 0.092025 = 9.2% (Round to two decimal places.)
Quarterly Compounding:
(1) FVn = 6000(1+0.09/4)^(4*7) = 6000(1.0225)^28 = 11365.5 (Round to the nearest cent.)
(2) EAR = (1+0.09/4)^(4)-1 = (1.0225)^4-1 = 0.093807 = 9.38% (Round to two decimal places.)
In conclusion, the future value and effective annual rate for each compounding period are as follows:
Annual Compounding: FVn = $10968.2, EAR = 9%
Semiannual Compounding: FVn = $11242.0, EAR = 9.2%
Quarterly Compounding: FVn = $11365.5, EAR = 9.38%
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Discussion Topic:-How do LEGO products get from their manufacturer in Denmark totoy stores in the United States? Describe your answer clearly andspecifically.
Lego products from their manufacturer in Denmark to toy stores in the United States go through a complex supply chain process. As the products are manufactured in Denmark, they are shipped to various distribution centers throughout Europe.
Then, the products are taken by boat or plane to distribution centers in the US. From there, the Lego products are shipped to the various toy store distributors throughout the US. The toy store distributors then deliver the Lego products to the individual toy stores.
The entire process from the manufacturer in Denmark to the toy stores in the US involves a well-coordinated effort by a variety of different parties involved in the supply chain process. This includes the manufacturer, transportation companies, distribution centers, and toy store distributors. Without these entities working together, it would be impossible to get the Lego products to the toy stores in the US in a timely manner.
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Choose one of the following firms and examine their digital presence (website, mobile, social):Micro CenterMuscle Maker GrillValley Forge CasinoWhole FoodsPhiladelphia 76ersNew York KnicksIn about 500-600 words, how can your chosen firm can improve CXM and overall user experience.
To improve customer experience management (CXM) and overall user experience, the firm Micro Center can focus on developing a comprehensive digital presence. This can include optimizing their website for mobile devices, investing in social media channels, and optimizing their website design.
Creating a mobile-friendly website is a key part of improving customer experience. Mobile-friendliness is essential for online businesses, as more people are using mobile devices to access online content. The website should be optimized to fit any device, including both smartphones and tablets. This can be done by designing with a mobile-first approach and focusing on creating an intuitive user interface.
Investing in social media channels is also essential for improving customer experience. By engaging with customers on social media, the firm can build trust and rapport.
Finally, the firm should optimize their website design. This includes making sure that all the pages are easy to find and navigate, that content is clearly organized, and that the overall aesthetic is attractive.
In conclusion, to improve customer experience management and overall user experience, the firm Micro Center should focus on creating a comprehensive digital presence.
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Question 1 of 27 1 Point Cost structure Select the correct response: a. refers to the relative proportion of fixed versus variable costs that a company incurs. b. generally has little impact on profitability. c. refers to the relative proportion of operating versus nonoperating costs that a company incurs. d. cannot be significantly changed by companies.
A Point Cost structure refers to the relative proportion of fixed versus variable costs that a company incurs. The Option A is correct.
What does Point Cost structure means?Point cost structure refers to a pricing model used by businesses to determine the cost of their products or services based on individual units or points. In this model, each unit or point is assigned a cost, which is determined by the business based on various factors such as production costs, overhead expenses, and profit margins.
It is commonly used in industries such as online gaming, where players purchase points to access various features or benefits within the game. It allows businesses to offer flexible pricing options to customers while also ensuring profitability by controlling costs and maximizing revenue. In overall, it is a valuable tool for businesses to determine their pricing strategies and to optimize their profitability in a competitive market.
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It has identified an indication of impairment and is conducting an impairment review. The carrying amounts of cash generating unit is as follows on 31 Dec, 2021:
£
Goodwill
500,000
Property
800,000
Plant and equipment
400,000
Computers
200,000
Patents
200,000
Net current assets
300,000
2,400,000
The whole of the company is considered to be a single cash-generating unit (CGU). Net selling price of CGU is estimated to be £1,220,000.
If a company continues its operations, it is estimated to receive £355,000 net cash-flows annually at the end of the year for the duration of next 4 years. The discount rate is calculated to be 7%.
The net current assets will be recovered in full and the net realizable value of the property is £750,000. Patents have no resale value and are considered worthless now.
Required
Calculate whether an impairment loss has occurred and, if so, prepare a revised schedule for Bambi Ltd as at 31 March 2019. Explain your workings fully clearly showing impairment allocation and revised carrying values.
An impairment loss occurs when the carrying amount of a cash-generating unit exceeds its recoverable amount. The recoverable amount is the higher of the CGU's fair value less costs of disposal and its value in use.
To determine if an impairment loss has occurred, we must first calculate the recoverable amount of the CGU. The fair value less costs of disposal is the net selling price of the CGU, which is £1,220,000. The value in use is the present value of the future cash flows generated by the CGU, which can be calculated using the following formula:
Value in use = CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + CF4/(1+r)^4
Where CF is the net cash flow, r is the discount rate, and the exponent represents the year.
Value in use = £355,000/(1+0.07)^1 + £355,000/(1+0.07)^2 + £355,000/(1+0.07)^3 + £355,000/(1+0.07)^4
Value in use = £331,776.64 + £309,968.18 + £289,590.35 + £270,549.85
Value in use = £1,201,884.02
The recoverable amount of the CGU is the higher of the fair value less costs of disposal and the value in use, which is £1,220,000.
Since the carrying amount of the CGU (£2,400,000) exceeds the recoverable amount (£1,220,000), an impairment loss has occurred. The impairment loss is the difference between the carrying amount and the recoverable amount, which is £1,180,000.
The impairment loss must be allocated to the assets of the CGU in the following order: goodwill, property, plant and equipment, and computers. The patents have no resale value and are considered worthless, so they are not included in the impairment allocation.
Goodwill: £500,000 - £500,000 = £0
Property: £800,000 - £680,000 = £120,000
Plant and equipment: £400,000 - £0 = £400,000
Computers: £200,000 - £0 = £200,000
The revised carrying values of the assets are as follows:
Goodwill: £0
Property: £120,000
Plant and equipment: £400,000
Computers: £200,000
Patents: £0
Net current assets: £300,000
The total carrying amount of the CGU is now £1,020,000.
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Please post detailed answers to the following questions. Please use complete sentences. Why is money management important? How would you rate your own money management?
One of the most crucial aspects of you financial life is money management.
Why is proper money management important?Reaching your financial objectives, paying off debt, and increasing your savings can all be facilitated by understanding how to budget, spend, and save.It is strongly advised that students create a budget for each category, such as food, phone, travel, etc. Any person should be very aware of where their funds are coming from and going. You may find out where you overspend and where you waste money by keeping track of your costs. Your money remains in good shape if you consistently spend less as you make.
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As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows:
Year Project X Project Z
0 -$100,000 -$100,000
1 $50,000 $10,000
2 $40,000 $30,000
3 $30,000 $40,000
4 $10,000 $60,000
If Denver's cost of capital is 15 percent, which project would you choose?
As the director of capital budgeting for Denver Corporation If Denver’s cost of capital is 15 percent, it will choose neither project
Option A is correct.
Net present value :Net present value (NPV) is a financial metric that seeks to capture the total value of an investment opportunity. The idea behind NPV is to project all of the future cash inflows and outflows associated with an investment, discount all those future cash flows to the present day, and then add them together.
Evaluating :[i] NPV X = -100,000 + (50,000/1.15) + (40,000/1.15²) + (30,000/1.15³) + (10,000/1.5⁴ )
= -50,803.31
NPV Y = -100,000 + (10,000/1.15) + (30,000/1.15²) + (40,000/1.15³) + (60,000/1.5⁴)
= -56,998.65[/i]
What cost of capital?Capital costs is the cost of a company's money (debt and stock), or from the perspective of an investor, "the necessary return on a holdings company's existing securities," is what economic experts and accountants refer to as the cost of capital. It is utilized to assess a company's main new ventures.
Incomplete question :
As The Capital Budgeting Director For Denver Corporation, You Are Evaluating Two Mutually Exclusive Projects With The Following Net Cash Flows: Project X Project Z Year Cash Flow Cash Flow 0 -$100,000 -$100,000 1 50,000 10,000 2 40,000 30,000 3 30,000 40,000 4 10,000 60,000 If Denver's WACC Is 15%, Which
As the capital budgeting director for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows: Project X Project Z Year Cash Flow Cash Flow 0 -$100,000 -$100,000 1 50,000 10,000 2 40,000 30,000 3 30,000 40,000 4 10,000 60,000 If Denver's WACC is 15%, which project would you choose?
A.Neither project.
B.Project X, since it has the higher IRR.
C.Project Z, since it has the higher NPV.
D.Project X, since it has the higher NPV.
E.Project Z, since it has the higher IRR.
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Question 17 3 pts What is the coupon rate for a bond with 6 years until maturity, a price of $984.32, and a yield to maturity of 7%? Interest is paid semi-annually. Enter your answer as a number with 4 decimals.
The Annual coupon rate of the coupon rate for a bond with 6 years until maturity, is $47.3455 .
The coupon rate for a bond can be calculated using the following formula:
Coupon rate = (Annual coupon payment / Par value) * 100
In this case, we are given the price of the bond ($984.32), the yield to maturity (7%), and the number of years until maturity (6). However, we are not given the annual coupon payment or the par value. Therefore, we cannot directly calculate the coupon rate using the formula.
Instead, we can use the following formula to calculate the annual coupon payment:
Annual coupon payment = (Price * Yield to maturity) / (1 + (Yield to maturity / 2))^(2 * Years until maturity)
Plugging in the given values, we get:
Annual coupon payment = ($984.32 * 0.07) / (1 + (0.07 / 2))^(2 * 6)
Annual coupon payment = $69.9024 / 1.476173
Annual coupon payment = $47.3455
Now, we can use this value to calculate the coupon rate:
Coupon rate = ($47.3455 / Par value) * 100
Unfortunately, we are still missing the par value. Without this information, we cannot calculate the coupon rate. Therefore, the answer to this question is "cannot be determined."
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Some theorists have emphasized the dual influence of ----- and ----- on personality development. *Heredity and Early childhood experiencesSocial and Political influencesEarly childhood experiences and SocietyHeredity and environmental influencesWhen researchers use counting or video recording devices to capture customers' behaviors or responses, they use ----research. *Mechanical observationPhysiological observationExperimentsProjective techniqueIndividuals are somewhat more aware of their ----- needs than they are of their ----- needs. *Physiological, PsychologicalPsychological, PhysiologicalExtrinsic, PhysiologicalIntrinsic, Psychological
Some theorists have emphasized the dual influence of Heredity and environmental on personality development.
When researchers use counting or video recording devices to capture customers' behaviors or responses, they use Mechanical observation research.
Individuals are somewhat more aware of Physiological needs than they are of Psychological needs.
Theorists have emphasized the dual influence of heredity and environmental influences on personality development. Heredity influences an individual's personality through genetic factors, while environmental influences include factors such as social interactions, cultural norms, and personal experiences.
Researchers use mechanical observation when they use counting or video recording devices to capture customers' behaviors or responses. This type of research allows for objective and accurate data collection without the potential biases of human observation.
Individuals are somewhat more aware of their physiological needs, such as hunger, thirst, and sleep, than they are of their psychological needs, such as belonging, self-esteem, and self-actualization. This is because physiological needs are essential for survival and are therefore more immediately apparent, while psychological needs may be less obvious and more difficult to fulfill.
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What are the drawbacks of not agreeing to a lease appearing in the statement of assets（Please explain in relation to IFRS16 and in your own words, please do not copy and paste the definition from Wikipedia.)
The drawbacks of not agreeing to a lease appearing in the statement of assets in relation to IFRS16 are lack of transparency, understatement of liabilities, inaccurate representation of assets and non-compliance with IFRS16.
1. Lack of transparency: Not agreeing to a lease appearing in the statement of assets can lead to a lack of transparency in the financial statements. This can make it difficult for investors, creditors, and other stakeholders to accurately assess the financial position of the company.
2. Understatement of liabilities: Not including a lease in the statement of assets can result in an understatement of liabilities. This can create a misleading impression of the company's financial health and can lead to incorrect decision making by stakeholders.
3. Inaccurate representation of assets: Not including a lease in the statement of assets can also result in an inaccurate representation of assets. This can lead to an overstatement of assets, which can create a false impression of the company's financial health.
4. Non-compliance with IFRS16: Not agreeing to a lease appearing in the statement of assets can result in non-compliance with IFRS16, which requires companies to recognize leases on their balance sheets. This can lead to penalties and other negative consequences for the company.
Overall, not agreeing to a lease appearing in the statement of assets can have significant drawbacks. It is important for companies to accurately reflect leases in their financial statements to ensure that they are providing accurate and transparent information to stakeholders.
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Golden Eagle Company has the following balances at the end of November:
November 30
Debit Credit
Supplies $1,650 Prepaid Insurance 6,600 Salaries Payable $10,300
Deferred Revenue 0
The following information is known for the month of December:
Purchases of supplies for cash during December were $3,800. Supplies on hand at the end of December equal $3,150.
No insurance payments are made in December. Insurance expired in December is $1,650.
November salaries payable of $10,300 were paid to employees in December. Additional salaries for December owed at the end of the year are $15,300.
On December 1, Golden Eagle received $3,450 from a customer for rent for the period December through February. By the end of December, one month of rent has been provided. For each item, (a) record any transaction during the month of December, and (b) prepare the related December 31 year-end adjusting entry. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. )
A. Purchases of supplies for cash during December were $3,800. Supplies on hand at the end of December equal $3,150. Record the entry made during the month of December.
B. Purchases of supplies for cash during December were $3,800. Supplies on hand at the end of December equal $3,150. Record the adjusting entry on December 31.
C. No insurance payments are made in December. Insurance expired in December is $1,650. Record the entry made during the month of December.
D. No insurance payments are made in December. Insurance expired in December is $1,650. Record the adjusting entry on December 31.
E. November salaries payable of $10,300 were paid to employees in December. Additional salaries for December owed at the end of the year are $15,300. Record the entry made during the month of December.
F. November salaries payable of $10,300 were paid to employees in December. Additional salaries for December owed at the end of the year are $15,300. Record the adjusting entry on December 31.
G. On December 1, Golden Eagle received $3,450 from a customer for rent for the period December through February. By the end of December, one month of rent has been provided. Record the entry made during the month of December.
H. On December 1, Golden Eagle received $3,450 from a customer for rent for the period December through February. By the end of December, one month of rent has been provided. Record the adjusting entry on December 31
A. debit: supplies $3,800 Credit: Cash $3,800. Golden Eagle Company has the following balances at the end of November.
What is Golden Eagle ?A golden eagle is a large bird of prey found in North America, Europe, and parts of Asia. The golden eagle has a wingspan of up to 7 feet and can weigh up to 15 pounds. It is distinguished from other eagles by its golden-brown plumage and white tail feathers. Golden eagles are apex predators, meaning they are at the top of the food chain, and their diet consists mainly of small mammals and birds. Golden eagles use a combination of speed, agility, and sharp talons to capture their prey.
B. Debit: Supplies $650 Credit: Supplies Expense $650
C. No Journal Entry Required
D. Debit: Prepaid Insurance $1,650 Credit: Insurance Expense $1,650
E. Debit: Salaries Expense $10,300 Credit: Cash $10,300
F. Debit: Salaries Payable $15,300 Credit: Salaries Expense $15,300
G. Debit: Cash $3,450 Credit: Deferred Revenue $3,450
H. Debit: Deferred Revenue $2,900 Credit: Revenue $2,900
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1. As we have discussed, understanding the consumers in a target market is critical to creating an effective value proposition. Assume you are the Vice President of Marketing for Regal Cinemas. What do you think the demographic profile (including the age, income, and life cycle stage) of your largest target market is? As part of a "mini" market research project, visit a movie theatre on a weekend and track the people entering the theatre for a show. How old are they? Are they families or people meeting friends?
The demographic profile of the largest target market for Regal Cinemas is likely to be young adults in the age range of 18 to 24 years old, with a median income of around $30,000 to $40,000, and in the early life cycle stage. This demographic is more likely to have disposable income and the desire to spend it on entertainment, such as going to the movies.
In conducting a mini market research project, I would visit a movie theatre on a weekend and track the people entering the theatre for a show. I would observe their age, whether they are with families or friends, and their general demeanor.
From my observations, I would expect to see a majority of young adults in the 18 to 24 age range, with a mix of both families and groups of friends. I would also expect to see a mix of income levels, as the movies are a relatively affordable form of entertainment for most people.
Overall, my observations would likely support the demographic profile of the largest target market for Regal Cinemas as being young adults with disposable income and a desire for entertainment.
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Asset A has an expected return of 0.05 with a standard deviation of 0.1. Asset B an expected return of 0.08 with a standard deviation 0.12. The covariance between their returns is 0.006. The risk free rate is 0.01. What is the expected return of a portfolio that has 0.5 of A, 0.25 of B, and 0.25 of the riskfree asset? 0.03 0.04 0.05 0.06
The expected return of the portfolio is 0.0475 or 4.75%. The closest answer to this value is 0.05 or 5%, so the correct answer is 0.05.
The expected return of a portfolio is calculated by multiplying the weights of each asset in the portfolio by their respective expected returns and then summing them up. Therefore, the expected return of the given portfolio can be calculated as follows:
Expected return of portfolio = (0.5 x 0.05) + (0.25 x 0.08) + (0.25 x 0.01) = 0.025 + 0.02 + 0.0025 = 0.0475
Therefore, the expected return of the portfolio is 0.0475 or 4.75%. The closest answer to this value is 0.05 or 5%, so the correct answer is 0.05.
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the dominant view in management theory and society, in general, is that managers are directly responsible for an organization's success or failure. This view is called the Omnipotent view of management.in contrast to this view,is the perspective that managers only have a limited effect on substantive organizational outcomers because of the large number of factors outside their control.this is called symbolic view of management.
With practical examples make a justification of your view chosen from these two
In contrast to this view, is the perspective that managers only have a limited effect on substantive organizational outcomes because of the large number of factors outside their control. This is called the Symbolic view of management.
The dominant view in management theory and society is that managers are directly responsible for an organization's success or failure. This view is called the Omnipotent view of management.
For example, an organization's success can be greatly influenced by external factors such as changes in the economy, customer preferences, technological advances, and political and social changes. If the external environment is unfavorable for an organization, it may be difficult for managers to produce positive outcomes, no matter how effective their management techniques may be.
On the other hand, if the external environment is favorable, the organization may be successful even if the managers are not particularly effective. This highlights the importance of considering the external environment when assessing an organization's success or failure.
Overall, the Symbolic view of management better reflects reality than the Omnipotent view. While effective managers can certainly contribute to an organization's success, there are also a number of factors outside of their control that can have a significant impact.
It is therefore important to recognize the limitations of managers and the importance of external factors in assessing organizational performance.
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Note: Remember to write in your answer IN YOUR OWN WORDS. Copy/paste from any source, including your peers in the class that is identifiable by SIMILAR narrative, will earn zero mark and may lead to some additional penalty. In answering the questions, for better marks, incorporate ideas/concepts you have learnt in chapters 1 and 2
1. Explain the role of the financial system and its importance to the economy as a whole as well as to individuals
2. Discuss the key differences between money and capital markets and the differentiated role they play as part of the financial system. [2 marks] 3: What is information asymmetry? How financial markets and institutions are affected by such asymmetry, explain with specific examples.[6 marks] 4. What is moral hazard and how it relates to the problem of adverse selection?
1. The financial system is responsible for the efficient transfer of funds from those with surplus funds (savers) to those who need funds (borrowers).
It facilitates economic activities through the efficient allocation of resources and contributes to economic growth and stability.
Additionally, it provides individuals with an array of services such as savings, investments, insurance and loans.
2. Money markets are financial markets for short-term funds, usually up to one year, and typically involve instruments such as treasury bills, commercial paper, and certificates of deposit.
Capital markets are long-term markets for the purchase and sale of financial instruments such as stocks and bonds, which are generally held for more than one year. Money markets typically provide short-term liquidity while capital markets provide long-term capital.
3. Information asymmetry occurs when one party has more or better information than the other. In financial markets, information asymmetry can lead to mispricing and misallocation of resources.
For example, when a lender has access to more information about the borrower's creditworthiness, the lender may be able to charge a higher rate of interest than is justified.
Similarly, in the stock market, an investor with more information about the prospects of a company may be able to profit from their knowledge by buying or selling shares at a price which is not reflected in the underlying value of the company.
4. Moral hazard is the risk that a borrower will not act in their best interest once they have borrowed funds. This is in contrast to adverse selection, which occurs when borrowers with bad creditworthiness are able to borrow funds.
Moral hazard can lead to lenders demanding higher interest rates, or even denying credit altogether, as they are unable to judge the risk of default.
Moral hazard can also occur in other areas of finance, such as insurance, where the insured party may take more risks knowing they are covered.
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