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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I invested on January 1st 2013 10.000€ in a financial product that is giving a compounded interest with payments on a quarterly basis.
On January 1st 2024 I will get back my investment together with the interests, and I know that I will receive 37.411€.
It was a good investment, but I can´t remember the rate.
Could you tell me?
A company has the following cash flow:
Period C0= -1000
Period C1= +600
Period C2= -200
Period C3= +600
Should the company invest in the project if cost of capital is 4%?
For the first question, we can use the formula for compound interest with quarterly payments to find the rate:
A = P(1 + r/4)^(4n)
Where A is the final amount, P is the principal, r is the rate, and n is the number of years. Plugging in the given values:
37,411 = 10,000(1 + r/4)^(4*11)
3.7411 = (1 + r/4)^44
Taking the 44th root of both sides:
1.0213 = 1 + r/4
Solving for r:
r/4 = 0.0213
r = 0.0852
So the rate of the investment is 8.52%.
For the second question, we can use the net present value (NPV) formula of the cash flows to determine if the company should invest in the project:
NPV = C0 + C1/(1 + r)^1 + C2/(1 + r)^2 + C3/(1 + r)^3
Plugging in the given values:
NPV = -1000 + 600/(1 + 0.04)^1 + (-200)/(1 + 0.04)^2 + 600/(1 + 0.04)^3
NPV = -1000 + 576.92 + (-184.66) + 528.14
NPV = -79.6
Since the NPV is negative, the company should not invest in the project.
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Fatma is your boss at a new Law firm in Dammam. She is traditional in her management style, and unhappy with the performance of the junior lawyers. Explain four [4] HR practices to her, that could support high-performance work systems.
Four HR practices that could support high-performance work systems are Performance management , Training and development , Employee engagement , Compensation and benefits.
1. Performance management: Setting clear goals and objectives for junior lawyers and providing regular feedback on their performance can help them understand what is expected of them and how they can improve.
2. Training and development: Providing opportunities for junior lawyers to develop their skills and knowledge can help them perform better in their roles.
3. Employee engagement: Engaging employees and seeking their input can help improve morale and motivation, leading to better performance.
4. Compensation and benefits: Offering competitive compensation and benefits can help attract and retain high-performing employees.
Implementing these HR practices can help Fatma improve the performance of the junior lawyers and create a high-performance work system at the law firm.
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Goldman Sachs and other investment firms are examples of: a.
Primary markets. b. Bond markets. c. Commodity markets. d.
Secondary Markets.
Goldman Sachs and other investment firms are examples of secondary Markets.
The correct answer is d. Secondary Markets.
Goldman Sachs and other investment firms are examples of secondary markets. A secondary market is a marketplace where previously issued securities, such as stocks and bonds, are traded among investors. These markets are important because they provide liquidity, meaning that investors can easily buy and sell securities.
Primary markets, on the other hand, are where new securities are issued and sold to the public for the first time. Bond markets are where bonds, which are a type of debt security, are traded. Commodity markets are where commodities, such as agricultural products and natural resources, are traded.
Goldman Sachs and other investment firms are examples of secondary markets, where previously issued securities are traded among investors.
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Nixon Limited manufactures and sells a single product. The following data have been extracted from the current year budget.
Selling Price £20/unit
Variable Cost £12/unit
Weekly Profit £22,000
Total weekly fixed cost £10,000
Required:
a. Calculate weekly sales units to generate the profit of £22,000?
b. Calculate break even sales units?
c. Calculate margin of safety?
Nixon Limited needs to sell 4,000 units per week to generate a profit of £22,000, Nixon Limited needs to sell 1,250 units per week to break even and the margin of safety for Nixon Limited is 2,750 units.
a. To calculate the weekly sales units needed to generate a profit of £22,000, we can use the formula:
Profit = (Selling Price - Variable Cost) x Sales Units - Fixed Cost
Rearranging the formula to solve for Sales Units:
Sales Units = (Profit + Fixed Cost) / (Selling Price - Variable Cost)
Plugging in the given values:
Sales Units = (£22,000 + £10,000) / (£20 - £12) = 4,000 units
Therefore, Nixon Limited needs to sell 4,000 units per week to generate a profit of £22,000.
b. To calculate the break-even sales units, we can use the formula:
Break Even Sales Units = Fixed Cost / (Selling Price - Variable Cost)
Plugging in the given values:
Break Even Sales Units = £10,000 / (£20 - £12) = 1,250 units
Therefore, Nixon Limited needs to sell 1,250 units per week to break even.
c. To calculate the margin of safety, we can use the formula:
The margin of Safety = Actual Sales Units - Break Even Sales Units
Plugging in the values from part a and b:
Margin of Safety = 4,000 - 1,250 = 2,750 units
Therefore, the margin of safety for Nixon Limited is 2,750 units.
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Board ""roles"" generally include all the following except:LeadershipAdvisorLawyerAccountantCorporate social responsibility (CSR) primarily includes each of the following except:Ethical responsibilitiesLegal responsibilitiesEconomic responsibilitiesEcological responsibilities
Board "roles" generally include all the following except: Lawyer. Board members typically have leadership, advisory, and financial responsibilities, but they do not usually serve as lawyers for the organization. That role is typically filled by outside legal counsel.
Corporate social responsibility (CSR) primarily includes each of the following except: Economic responsibilities. CSR generally focuses on ethical, legal, and ecological responsibilities. While economic responsibilities are important for any organization, they are not typically considered a part of CSR.The Board of Directors supervises and controls the management and operations of the company. The duty of the Board is to promote the interests of shareholders and the Group by overseeing the administration and proper organization of operations.
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Given: Selling price per unit, $48; total fixed expenses, $106,000; variable expenses per unit,
$36. Assume that variable expenses are reduced by 25% per unit, and the total fixed expenses are
increased by 15%. Find the sales in units to achieve a profit of $23,000, assuming no change in
selling price
The sales in units to achieve a profit of $23,000, assuming no change in selling price, is 346 units.
The sales in units to achieve a profit of $23,000, assuming no change in selling price, can be calculated by using the following equation:
Profit = Sales (units) x (Selling Price - Variable Expenses - Fixed Expenses)
In this case, $23,000 = S x ($48 - $36 - $106,000)
Substituting the given values and reducing the variable expenses by 25%, we have:
$23,000 = S x ($48 - (0.75 * $36) - (1.15 * $106,000))
Simplifying the equation, we get:
$23,000 = S x (-$67,000)
Solving for S, we get:
S = 346 units
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As a cemetery manager, you are considering offering perpetual care contracts. You estimate that maintenance will cost you $200 during the first year and will increase by 2% every year thereafter.
If the appropriate discount rate is 5.5%, how much do you need to charge to break even on a perpetual care contract?
Please draw the timeline
You need to charge $3,709.09 to break even on a perpetual care contract.
To determine how much to charge to break even on a perpetual care contract, we need to use the present value of a perpetuity formula. The formula is PV = C / r, where PV is the present value, C is the annual cash flow, and r is the discount rate. In this case, C is the maintenance cost and r is the discount rate.
First, we need to determine the annual cash flow, which is the maintenance cost that will increase by 2% every year. We can use the formula C = C0 * (1 + g) [tex]x^{2}[/tex] n, where C0 is the initial maintenance cost, g is the growth rate, and n is the number of years. In this case, C0 is $200, g is 2%, and n is 1.
C = $200 * (1 + 0.02) [tex]x^{2}[/tex] 1
C = $200 * 1.02
C = $204
Next, we can plug in the values into the present value of a perpetuity formula:
PV = C / r
PV = $204 / 0.055
PV = $3,709.09
The timeline would look like this:
Year 0: Charge $3,709.09
Year 1: Maintenance cost $200
Year 2: Maintenance cost $204 (2% increase from year 1)
Year 3: Maintenance cost $208.08 (2% increase from year 2)
And so on, with the maintenance cost increasing by 2% every year.
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Malaysia is known as the only country in this world that has a complex, dynamic, and effective regulations for conventional and Islamic financial systems. Explain the main objective of the Malaysian government having a separate legislation for both systems. (5 marks)
The main objective of the Malaysian government in having separate legislation for both conventional and Islamic financial systems is to cater to the different needs and beliefs of the Malaysian population, promote financial stability, and protect the rights of consumers.
The Malaysian government recognizes that there are significant differences between the two systems and therefore, separate legislation is necessary to ensure that each system is regulated effectively.
The conventional financial system is based on the principles of capitalism and operates on the basis of interest rates. On the other hand, the Islamic financial system is based on the principles of Shariah law and prohibits the charging of interest.
As a result, the Malaysian government has created separate legislation to ensure that each system operates in accordance with its respective principles.
Additionally, the Malaysian government aims to promote financial stability and protect the rights of consumers by having separate legislation for both systems. This ensures that both systems are regulated effectively and that consumers are protected from any potential risks.
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A company has the following cash flow:
Period C0= -1000
Period C1= +500
Period C2= -100
Period C3= +600
Should the company invest in the
project if cost of capital is 5%?
Yes, if the cost of capital is 5% and NPV the company is greater than 0, so the company should invest in the project. This is because the return on investment is positive.
To determine whether a company should invest in a project, it needs to calculate the net present value (NPV) of the project. NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
You can calculate NPV using the following formula:
Current value = C0 + (C1 / (1+r)^1) + (C2 / (1+r)^2) + (C3 / (1+r)^3)where:
C0 = initial investmentC1, C2, C3 = cash flows for periods 1, 2, and 3r = cost of capitalInsert the question value:
Present value = -1000 + (500 / (1+0.05)^1) + (-100 / (1+0.05)^2) + (600 / (1+0.05)^3)Present Value = -1000 + 476.19 + (-90.70) + 518.71NPV = -95.80.
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Suppose that the index model for stocks A and B is estimated from excess returns with the following results:
RA = 2.0% + 0.40RM + eA
RB = –1.8% + 0.90RM + eB
σM = 15.0%; R-squareA = 0.30; R-squareB = 0.22
What is the covariance between each stock and the market index?
The covariance between stock A and the market index is 0.9% and the covariance between stock B and the market index is 2.025%.
The covariance between each stock and the market index can be calculated using the formula:
Cov(RA, RM) = βA * σM^2 and Cov(RB, RM) = βB * σM^2.
For stock A, we have βA = 0.40 and σM = 15.0%. So the covariance between stock A and the market index is:
Cov(RA, RM) = 0.40 * (15.0%)^2 = 0.40 * 0.0225 = 0.0090 or 0.9%
Similarly, for stock B, we have βB = 0.90 and σM = 15.0%. So the covariance between stock B and the market index is:
Cov(RB, RM) = 0.90 * (15.0%)^2 = 0.90 * 0.0225 = 0.02025 or 2.025%
Therefore, the covariance between stock A and the market index is 0.9% and the covariance between stock B and the market index is 2.025%.
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(a) Your company is offering a new highly branded perfume in the market targeting both males
and females. Present detail strategies for any THREE (3) promotional tools suitable for it.
(15 marks)(b) Based on the above question, provide your justification towards any TWO (2) of the chosen
tools. Evaluate the effectiveness of both tools in attracting customers to try it.
(10 marks)
(a) The promotional tools suitable for a highly branded perfume are televisions ads, social media, and print ads. (b) Television ads are effective in reaching customers through wide audience. Social media platforms are effective in reaching customers through targeted campaigns.
(a) The three promotional tools suitable for a highly branded perfume in the market targeting both males and females are:
1. Television Ads: Television ads have the potential to reach a wide audience, helping to build brand awareness quickly.
2. Social Media: Utilizing social media platforms are an effective way to reach customers. These platforms can be used to create campaigns that can target users based on age, location, and interests.
3. Print Ads: Print ads in newspapers, magazines, and other publications are still an effective way to reach potential customers.
(b) 1. Television Ads: Television ads are an effective way to reach customers, both male and female, as they have the potential to reach a wide audience. They can help build brand awareness quickly and can be used to show off the unique features of the product.
Evaluation: Television ads are effective in attracting customers to try the product as they are visual and can make an emotional connection with viewers.
2. Social Media: Social media platforms are an effective way to reach customers, both male and female, as they allow for targeted campaigns to reach users with the specific features of the product.
Evaluation: Social media campaigns can be effective in attracting customers to try the product as they can be tailored to reach users with the unique features of the product and allow for easy sharing among friends and family.
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The public company "GQ ball pen industries ltd" Term paper.
Part 1:
Each group will be assigned one company by the course instructor to work with. Groups
will test the financial performance of the assigned company for the most recent 3 years
(using the published annual reports). For example, if a group is assigned Beximco
Pharmaceuticals Ltd, they must do ratio analysis for Beximco for the most recent 3 years.
Ratio Analysis should be made based on the following ratios-
I. Profitability Ratio – Gross Profit Margin, Net Profit Margin, Return on Asset and
Return on Equity
II. Asset Management Ratio – Average Age of Inventory, Average Collection Period,
Average Payment Period and Total Asset Turnover
III. Liquidity Ratio – Current Ratio and Quick Ratio.
IV. Debt Management Ratio – Debt-Equity Ratio and Interest Coverage Ratio
V. Market Ratio – P/E Ratio and EPS
VI. DuPont analysis – Decomposition of Return on Equity (ROE)
*** Calculation must be supported by relevant interpretation. Students have to show
and interpret each type of ratio containing the last 3 years’ performance of the
company. Without a logical and rich interpretation of the ratios, your assignment will
have no value. ***
Ratio Analysis must be done and submitted in PDF file. A detailed breakdown of the
calculation must be shown. Ex.-
Inventory + Trade Debtors + Advances Deposits and Payments + Short term Loan (Unsecured) + Cash Equivalents
Trade Creditors + Liabilities for Expenses + Liabilities for other Finance
3730808243 + 2204014900 + 1450936735 + 21386290 + 15768683854
843937277 + 27576542 + 1489930233
Part 2:
Students will have to show a one year trend analysis of the stock price for their assigned
company. The selected year (for the trend analysis) should be the latest year based on
which the financial ratios for the company were calculated. Furthermore they must follow
the accounting period (ex- Jul-Jun) of their assigned company.
Students need to do a thorough interpretation of the trend analysis of the stock price
movement. Stock price fluctuation must be graphically displayed through line-chart.
Interpretation of the fluctuation should be based on news archive, economic factors.
Trend Analysis should be performed using Excel.
Part 3:
As a reference to the work, each group must provide screenshots of pages from where
the amount/figures were derived and provide them in the appendix. Also an excel file
containing daily stock price for the entire year with trend analysis should be included in
the appendix. In addition to that, a reference page should also be included.
A separate findings section in the paper should take the reader in detail through the
companies’ performance over the same time period based on financial ratio and stock
price. Charts and graphs (explaining the financial performance) incorporated is a must.
This report will carry 10% Marks.
Use the online consultation hours of your respective faculty member if you need any
clarification.
V. Term Paper Structure:
Cover Page
Table of Content
Executive Summary
Background of the assigned company (Maximum half page)
Ratio Analysis: Calculation of financial ratios for the assigned company. It should be
submitted in a PDF file
Trend Analysis of Stock Price: Daily stock price of the assigned company with line charts
to show fluctuation. It should be submitted in Microsoft excel.
Analysis and findings: This section should have a detailed interpretation of company’s
financial position based on the all the ratios calculated in the previous section. Major
factors impacting the stock price fluctuation with citation (provided in reference).
Conclusion
References
Appendix
The term paper for the public company "GQ ball pen industries ltd" requires students to analyze the financial performance of the assigned company for the most recent 3 years using ratio analysis.
The analysis should be based on the following ratios: profitability ratio, asset management ratio, liquidity ratio, debt management ratio, market ratio, and DuPont analysis. Each ratio should be calculated and supported by relevant interpretation.
Students should also show a one year trend analysis of the stock price for their assigned company and provide a thorough interpretation of the trend analysis. Additionally, students should include screenshots of pages from where the amount/figures were derived, an excel file containing daily stock price for the entire year with trend analysis,
And a reference page in the appendix. The term paper should also include a separate findings section that takes the reader in detail through the companies’ performance over the same time period based on financial ratio and stock price.
The term paper should be structured with a cover page, table of content, executive summary, background of the assigned company, ratio analysis, trend analysis of stock price, analysis and findings, conclusion, references, and appendix.
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QUESTION 1 Financial Institution XY has assets of $1 million Invested in a 30-year, 10 percent annual coupon. Treasury bond selling at par.
The duration of this bond has been estimated at 9.94 years.
The assets are financed with equity and a $900.000, year, annual coupon bond selling at par with duration 1.8975
a.What is the leverage-adjusted duration gap?
What risk is the Fl facing? Explain
b. What is the impact on equity value if the relative change in market interest rates is a decrease of 20 basis points? NOTE, The relative change in Interest rates is a ΔR/(I+R)
c Using the information calculated in parts (a) and (b), what can be said about the desired duration gap for a financial institution if interest rates are expected to increase or decrease.
d. Verify your answer to part (c) by calculating the change in the market value of equity assuming that the relative change in all market interest rates is an increase of 30 basis points.
e. What would the duration of the assets need to be to immunize the equity from changes in market interest rates?
f. The Fl wants to bedge its interest rate risk exposure using bond futures. Suppose the current futures price quote is $95 per $100 of face value for the benchmark 20-year, bond underlying the nearby futures contract, the minimum contract size is $100,000, and the duration of the deliverable bond is 9 years.
i. How can futures be used to hedge the risk faced by the FI?
ii. Calculate number of futures contracts to be used to fully hedge the balancesheet
g. What is the meaning of the basis risk adjustment ratio? Calculate the number futures contracts should have been used using the 20-year bond contracts if the ratio were b = 1.32. Calculate the optimal hedge ratio in this case and explain its meaning
a. The leverage-adjusted duration gap is 8232250 and the risk Fl facing is interest rate risk. b. The impact on equity value is 14967.73. c. The desired duration gap for a financial institution if interest rates are expected to increase or decrease is a negative duration gap or a positive duration gap respectively. d. The change in the market value of equity is -22453.10. e. The duration of the assets need to be 1.8975. f. i. FI can sell bond futures to hedge its interest rate risk exposure. ii. The number of futures contracts to be used to fully hedge the balance sheet is 9113.42. g. The basis risk adjustment ratio refers to the ratio of spot price variation to futures price variation. The number futures contracts is 12025.72. Optimal hedge ratio would need to be calculated using the covariance and variance of the spot and futures prices.
a. The leverage-adjusted duration gap is the difference between the duration of the assets and the duration of the liabilities, weighted by their respective values. In this case, the leverage-adjusted duration gap is:
LADG = (1 million)(9.94) - (900,000)(1.8975) = 9940000 - 1707750 = 8232250
The FI is facing interest rate risk, as the value of its assets and liabilities will change with changes in market interest rates.
b. The impact on equity value if the relative change in market interest rates is a decrease of 20 basis points is:
ΔE = -LADG * (ΔR/(1+R)) = -8232250 * (-0.002/(1+0.10)) = 14967.73
c. The desired duration gap for a financial institution if interest rates are expected to increase is a negative duration gap, as this will result in an increase in the value of equity. Conversely, if interest rates are expected to decrease, the desired duration gap is a positive duration gap, as this will result in an increase in the value of equity.
d. The change in the market value of equity assuming that the relative change in all market interest rates is an increase of 30 basis points is:
ΔE = -LADG * (ΔR/(1+R)) = -8232250 * (0.003/(1+0.10)) = -22453.10
e. The duration of the assets would need to be equal to the duration of the liabilities in order to immunize the equity from changes in market interest rates. In this case, the duration of the assets would need to be 1.8975.
f. i. Futures can be used to hedge the risk faced by the FI by taking a position in the futures market that is opposite to the position in the spot market. In this case, the FI can sell bond futures to hedge its interest rate risk exposure.
ii. The number of futures contracts to be used to fully hedge the balance sheet is:
N = (LADG * V)/(Df * Pf) = (8232250 * 1)/(9 * 95) = 9113.42
g. The basis risk adjustment ratio is the ratio of the change in the spot price to the change in the futures price. It is used to adjust the number of futures contracts to account for basis risk. If the ratio were b = 1.32, the number of futures contracts should have been:
N = (LADG * V * b)/(Df * Pf) = (8232250 * 1 * 1.32)/(9 * 95) = 12025.72
The optimal hedge ratio is the ratio of the covariance of the change in the spot price and the change in the futures price to the variance of the change in the futures price. It is used to determine the optimal number of futures contracts to minimize the variance of the hedged portfolio. The optimal hedge ratio in this case would need to be calculated using the covariance and variance of the spot and futures prices.
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1. What is the difference between a change in accounting policy
and a change in accounting estimate?
2. What is the meaning of retrospective application versus
prospective application in IAS 8?
3. If
1. A change in accounting policy refers to a change in the principles, basis, conventions, rules, and practices used in preparing and presenting financial statements. On the other hand, a change in accounting estimate is a change in the amount or method used to determine an estimate in the financial statements. For example, a change in the depreciation method is a change in accounting policy, while a change in the useful life of an asset is a change in accounting estimate.
2. Retrospective application means applying a new accounting policy to transactions, events, and balances that occurred before the date of change, as if the new policy had always been applied. Prospective application means applying a new accounting policy to transactions, events, and balances that occur after the date of change.
3. If a company changes its accounting policy, it should apply the new policy retrospectively, unless it is impractical to do so. If a company changes its accounting estimate, it should apply the new estimate prospectively, from the date of the change onwards. This is in accordance with IAS 8, which sets out the requirements for changes in accounting policies and estimates.
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Suppose you bought a bond with a coupon rate of 7.9 percent one year ago for $902. The bond sells for $936 today.
Required:
(a) Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?
Total dollar return $
(b) What was your total nominal rate of return on this investment over the past year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Total nominal rate of return %
(c) If the inflation rate last year was 4.4 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Total real rate of return %
(a) The total dollar return on this investment over the past year is $113
(b) The total nominal rate of return on this investment over the past year is 12.53%
(c) The total real rate of return on this investment is 7.78%
(a) The total dollar return on this investment over the past year can be calculated as follows:
Total dollar return = (Selling price - Purchase price) + Coupon payment
Total dollar return = ($936 - $902) + ($1,000 x 7.9%)
Total dollar return = $34 + $79
Total dollar return = $113
(b) The total nominal rate of return on this investment over the past year can be calculated as follows:
Total nominal rate of return = (Total dollar return / Purchase price) x 100%
Total nominal rate of return = ($113 / $902) x 100%
Total nominal rate of return = 12.53%
(c) The total real rate of return on this investment can be calculated as follows:
Total real rate of return = [(1 + Total nominal rate of return) / (1 + Inflation rate)] - 1
Total real rate of return = [(1 + 12.53%) / (1 + 4.4%)] - 1
Total real rate of return = 7.78%
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Snowblowers Ltd has five identical snow blowers in its warehouse available for sale. The company recently agreed to sell three of the snow blowers. Using the average cost method, what is the cost of goods sold for three snow blowers? a. $1,208 b. $1,770 c. $1,800 d. $1,812
The cost of goods sold for three snow blowers using the average cost method is $1,812. This is calculated by dividing the total cost of all five snow blowers ($9,060) by the number of snow blowers (5), giving an average cost of $1,812 each.
The average cost method calculates the cost of goods sold by dividing the total cost of goods available for sale by the total number of goods available for sale. In this case, the total cost of goods available for sale is the cost of the five identical snow blowers in the warehouse. To find the cost of goods sold for three snow blowers, we simply multiply the average cost of one snow blower by the number of snow blowers sold:
Average cost of one snow blower = Total cost of goods available for sale / Total number of goods available for sale = $1,812 / 5 = $362.40Cost of goods sold for three snow blowers = Average cost of one snow blower x Number of snow blowers sold = $362.40 x 3 = $1,087.20Learn more about average cost method: https://brainly.com/question/28840751
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Describe the opportunities and challenges franchisors face whenentering emerging markets such as the nations of Africa.
Franchisors entering emerging markets such as the nations of Africa face both opportunities and challenges. On the one hand, there is significant potential for franchisors to reach a large, untapped customer base and capitalize on their growing purchasing power.
Additionally, lesser developed markets often do not have established competitors, creating an opportunity for franchisors to become the market leader. On the other hand, there are also numerous challenges associated with entering new markets.
These include a lack of knowledge of local laws and regulations, cultural differences, and the need to establish a supply chain. Furthermore, underdeveloped infrastructure and limited access to financing can make it difficult to establish a successful franchise.
Despite these challenges, the potential rewards make the effort worthwhile, and many franchisors have found success in African markets.
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Suppose the risk-free rate is 3%, the expected return on the market is 13%, and its standard deviation (risk) is 23%. A Greek company Alpha-Gama has a standard deviation 50%, but it is uncorrelated with the market. Calculate Alpha-Gama’s beta and expected return. Comment on your findings and explain your answer.
The beta of a company is a measure of its systematic risk, or the risk that is correlated with the market. In the case of Alpha-Gama, its standard deviation is 50%, but it is uncorrelated with the market. This means that its beta is 0, as it has no systematic risk. Alpha-Gama’s beta and expected return is 3 percent.
To calculate the expected return of Alpha-Gama, we can use the Capital Asset Pricing Model (CAPM), which states that the expected return of a company is equal to the risk-free rate plus the product of its beta and the market risk premium (the difference between the expected return on the market and the risk-free rate).
Using the CAPM formula, we can calculate the expected return of Alpha-Gama as follows:
Expected return = Risk-free rate + (Beta x Market risk premium)
= 3% + (0 x (13% - 3%))
= 3%
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Are synthetic CDOs a legitimate business investment, or are they pure gambling? If the former, what are their benefits? If the latter, should banks and other companies be allowed to wager on whatever they want if they like the odds and think they can make money that way?
Synthetic CDOs (collateralized debt obligations) are a legitimate business investment, but they are also considered to be a form of gambling due to the high levels of risk involved.
Synthetic CDOs are a type of structured financial product that allow investors to bet on the performance of a particular market or asset without actually owning it.
The benefits of synthetic CDOs include the ability to diversify risk and potentially earn high returns. However, the downside is that they can also result in significant losses if the market or asset does not perform as expected.
While banks and other companies are allowed to invest in synthetic CDOs, it is important that they do so responsibly and with a thorough understanding of the risks involved. It is also important that they are transparent about their investments and the potential risks to their clients and shareholders. Ultimately, it is up to each individual company to decide if they want to take on the risks associated with synthetic CDOs in pursuit of potential profits.
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The following information was taken from the records of Vaughn SA for the year 2022: Income tax applicable to income from continuing operations R$128,800; income tax applicable to loss on discontinued operations R$27,400, and unrealized holding gain on equity securities designated at fair value through other comprehensive income R$16,200. Gain on sale of plant assets R$104,000 Loss on discontinued operations 81,000 Administrative expenses 262,000
Rent revenue 46,00
Loss on impairment of land 64,800 Cash dividends declared R$ 162,000 Retained earnings January 1, 2022 648,000 Cost of goods sold 918,000 Selling expenses 324,000 Sales revenue1,836,000 Ordinary shares outstanding during 2022 were 100.000
The retained earnings for Vaughn SA for the year 2022 is R$643,400.
The net income for Vaughn SA for the year 2022 can be calculated using the following formula:
Net Income = (Sales Revenue - Cost of Goods Sold - Selling Expenses - Administrative Expenses - Loss on Impairment of Land - Loss on Discontinued Operations + Gain on Sale of Plant Assets + Rent Revenue) - Income Tax
Plugging in the given values, we get:
Net Income = (1,836,000 - 918,000 - 324,000 - 262,000 - 64,800 - 81,000 + 104,000 + 46,000) - 128,800
Net Income = (286,200) - 128,800
Net Income = 157,400
Therefore, the net income for Vaughn SA for the year 2022 is R$157,400.
The earnings per share (EPS) can be calculated using the following formula:
EPS = Net Income / Number of Ordinary Shares Outstanding
Plugging in the values, we get:
EPS = 157,400 / 100,000
EPS = 1.574
Therefore, the earnings per share for Vaughn SA for the year 2022 is R$1.574.
The retained earnings for Vaughn SA for the year 2022 can be calculated using the following formula:
Retained Earnings = Beginning Retained Earnings + Net Income - Cash Dividends Declared
Plugging in the values, we get:
Retained Earnings = 648,000 + 157,400 - 162,000
Retained Earnings = 643,400
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Ann found an apartment that costs $800,000 to buy. She will make a $100,000 down payment and will get a mortgage for $700,000. The mortgage will be a fully amortizing 30-year fixed rate mortgage at 4.25% with monthly payments and monthly compounding.
If Ann's house price grows 4.5% per year (compounded annually) and Ann continues making her mortgage payments, what will Ann's home equity be in 10 years (after her 120th payment)?
(round answer 2 decimal places, do not include commas or dollar signs in response)
Ann's home equity after 10 years if Ann's house price grows 4.5% per year is 684162.56.
Ann's home equity in 10 years can be calculated by finding the future value of the house price and subtracting the remaining mortgage balance.
First, we will calculate the future value of the house price using the formula FV = PV(1+r)^n, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of years.
FV = [tex]800,000(1+0.045)^{10}[/tex]
FV = $1,234,397.84
Next, we will calculate the remaining mortgage balance after 10 years. We will use the formula B = P[(1+r)^n - (1+r)^p]/[(1+r)^n - 1], where B is the remaining balance, P is the principal, r is the monthly interest rate, n is the total number of payments, and p is the number of payments made.
B = [tex]700,000[(\frac{1+0.0425}{12})^{360} - (\frac{1+0.0425}{12})^{120}]/[(\frac{1+0.0425}{12})^{360} - 1][/tex]
B = $550,235.28
Finally, we will subtract the remaining mortgage balance from the future value of the house price to find Ann's home equity.
Home Equity = $1,234,397.84 - $550,235.28
Home Equity = $684,162.56
Therefore, Ann's home equity in 10 years will be $684,162.56.
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5. If the return of a mutual fund investment in 2018 was
$165,500, Suppose we invest 156200 in dec. 2016. what was the
average annual growth rate over the two years?
According to the question, the return of a mutual fund investment in 2018 was $165,500, Supposing that we have invested 156200 in dec. 2016, the average annual growth rate of the mutual fund investment over the two years is 0.0293, or 2.93%
To find the average annual growth rate of a mutual fund investment, we can use the formula:
AAGR = (Ending value/Beginning value)^(1/Number of years) - 1
In this case, the ending value is $165,500, the beginning value is $156,200, and the number of years is 2. Plugging these values into the formula, we get:
AAGR = ($165,500/$156,200)^(1/2) - 1
AAGR = 1.0595^(1/2) - 1
AAGR = 1.0293 - 1
AAGR = 0.0293
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What is the difference between a strength, a competitive advantage, and a sustainable competitive advantage? What makes an ability (or set of abilities) a core competency? Why is it necessary to perform an external and internal analysis before the firm can a Delphi it's true core competencies?
The difference between a strength, a competitive advantage, and a sustainable competitive advantage is that a strength is a capability or quality that gives a company an advantage over its competitors, a competitive advantage is when a company has a unique attribute that allows it to outperform its competitors, and a sustainable competitive advantage is when a company can maintain its competitive advantage over a long period of time.
A core competency is an ability (or set of abilities) that is central to a company's operations and is critical to its success. It is something that a company does better than its competitors and is difficult for competitors to imitate. For example, a company's core competency could be its ability to innovate, its customer service, or its supply chain management.
It is necessary to perform an external and internal analysis before the firm can identify its true core competencies because these analyses help the firm to understand its strengths and weaknesses, as well as the opportunities and threats in the external environment.
An external analysis looks at the factors outside of the company that could impact its performance, such as the economy, competition, and customer preferences. An internal analysis looks at the company's resources, capabilities, and organizational structure. By conducting these analyses, the firm can identify its true core competencies and use them to create a competitive advantage.
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There are possible actions a company can take to improve the quantity and quality of its marketing intelligence.a): 7 b): 8 c): 9 d): 10A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment.a): True b): FalseFraming occurs when customers are given a perspective or point of view that allows the seller to "put its best foot forward".a): Yes b): NoThere are categories _________ of classification of buyer–supplier relationships.a): 6 b): 7 c): 8 d): None of the aboveThere are 4 steps in customer value analysis. a): Yes b): No
a) The correct answer is 8. There are 8 possible actions a company can take to improve the quantity and quality of its marketing intelligence.
b) The correct answer is True. A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment.
c) The correct answer is Yes.
d)The correct answer is 7.There are 7 categories of classification of buyer–supplier relationships. e) The correct answer is No.
For first question,There are 8 possible actions a company can take to improve the quantity and quality of its marketing intelligence. These include:
Motivating distributors, Networking externally, Setting up a customer advisory panel, Utilizing government data sources, Purchasing information from outside suppliers,
Collecting competitive intelligence, and 8) Conducting online research.
b) The correct answer is True. This includes information about customers, competitors, and any other factors that may affect the company's performance.
c) The correct answer is Yes. Framing occurs when customers are given a perspective or point of view that allows the seller to "put its best foot forward".
d) There are 7 categories of classification of buyer-supplier relationships.
e) The correct answer is No. There are 5 steps in customer value analysis. 4) Examining how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis, and 5) Monitoring customer values over time.
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Briefly state which candidate you selected. List the five benefits you selected to be included in this employee’s total rewards package. For each benefit you selected, explain why you selected it and how you believe it will impact organizational effectiveness and the employee (considering aspects like company size, organizational culture, budget, the position itself, as well as the employee). Your initial post must be a minimum of 300 words. Cite at least one scholarly source to support your response.
I have selected Candidate A for the position. For the total rewards package, I selected the following benefits: health insurance, flexible work hours, tuition reimbursement, and vacation days. Each of these benefits was chosen for their potential to impact organizational effectiveness, as well as for the positive impact it would have on the employee.
1. Select a candidate: Choose a hypothetical candidate for a specific position within an organization. Consider the qualifications and skills that this candidate possesses and how they align with the needs of the organization.
2. Select five benefits: Choose five benefits that you believe will be most beneficial to the employee and the organization. Consider the size of the company, the organizational culture, the budget, the position itself, and the employee when making your selections.
3. Explain the benefits: For each benefit you selected, explain why you chose it and how you believe it will impact organizational effectiveness and the employee. Consider how the benefit will support the employee's needs and how it will contribute to the overall success of the organization.
4. Cite a scholarly source: Use at least one scholarly source to support your response. This could be a journal article, book, or other reputable source that provides evidence or research related to employee benefits and organizational effectiveness.
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In connection with your audit of Caloocan Corporation for the year ended December 31, 2006, you gathered the following: 1. Current account at Metrobank P2,000,000
2. Current account at BPI (100,000) 3. Payroll account 500,000 4. Foreign bank account – restricted (in equivalent pesos) 1,000,000 5. Postage stamps 1,000
6. Employee’s post dated check 4,000 7. IOU from controller’s sister 10,000 8. Credit memo from a vendor for a purchase return 20,000 9. Traveler’s check 50,000 10. Not-sufficient-funds check 15,000 11. Money order 30,000 12. Petty cash fund (P4,000 in currency and expense receipts for P6,000) 10,000 13. Treasury bills, due 3/31/07 (purchased 12/31/06) 200,000 14. Treasury bills, due 1/31/07 (purchased 1/1/06) 300,000 Question: Based on the above information and the result of your audit, compute for the cash and cash equivalent that would be reported on the December 31, 2006 balance sheet. a. P2,784,000 b. P3,084,000 c. P2,790,000 d. P2,704,000
Based on the information provided and the result of the audit, the cash and cash equivalent that would be reported on the December 31, 2006 balance sheet is P2,784,000. This is computed as follows:
Current account at Metrobank: P2,000,000
Current account at BPI: (P100,000)
Payroll account: P500,000
Foreign bank account – restricted (in equivalent pesos): P1,000,000
Postage stamps: P1,000
Employee’s post dated check: P4,000
IOU from controller’s sister: P10,000
Credit memo from a vendor for a purchase return: P20,000
Traveler’s check: P50,000
Not-sufficient-funds check: P15,000
Money order: P30,000
Petty cash fund (P4,000 in currency and expense receipts for P6,000): P10,000
Treasury bills, due 3/31/07 (purchased 12/31/06): P200,000
Treasury bills, due 1/31/07 (purchased 1/1/06): P300,000
Total: P2,784,000
Therefore, the correct answer is a. P2,784,000.
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The following costs and inventory data were taken from the accounts of Malik Company for the year 2021: 1 January 2021 31 December 2021
Inventories: (RM) (RM) Raw materials 8,000 7,000 Work in process 15,000 13,000 Finished goods 16,000 12,000 Costs incurred: Raw materials purchases 98,000
Direct labor 42,000 Factory rent 8,000 Factory utilities 10,000 Indirect materials 6,000
Indirect labor 9,000
Operating expenses 17,000 Instructions: (a) Prepare a schedule of Cost of Goods Manufactured for Malik Company for the year ended 31 December 2021. (b) Prepare the Cost of Goods Sold section of the Statement of Profit or Loss for Malik Company for the year ended December 2021.
Cost of Goods Manufactured for Malik Company for the year ended 31 December 2021, total cost of goods manufactured = 191,000 a.nd Ending inventory of finished goods 12,000 = 195,000
Raw materials: Beginning Inventory 8,000 + Raw materials purchases 98,000 = 106,000
Less: Ending inventory 7,000 = 99,000
Work in process: Beginning inventory 15,000 Less: Ending inventory 13,000 = 2,000
Direct labor 42,000 Factory rent 8,000 Factory utilities 10,000 Indirect materials 6,000 Indirect labor 9,000 Operating
expenses 17,000 = 92,000
Total cost of goods manufactured = 191,000
(b) Cost of Goods Sold section of the Statement of Profit or Loss for Malik Company for the year ended December 2021:
Beginning inventory of finished goods 16,000 + Cost of goods manufactured 191,000 = 207,000
Less: Ending inventory of finished goods 12,000 = 195,000
Cost of Goods Sold = 195,000
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Explain the four types of interpersonal conflicts and provide anappropriate workplace example for each.
Interpersonal conflict is a disagreement between two individuals or groups that occurs due to opposing beliefs or needs. The four types of interpersonal conflict are Intrapersonal ,Interpersonal ,Group ,Organizational .
1. Intrapersonal Conflict: Conflict that occurs within an individual, such as conflicting beliefs or desires. Example: A supervisor disagrees with their own decision and must decide whether to change their mind or remain with the initial decision.
2. Interpersonal Conflict: Conflict between two or more people due to a difference in opinions, beliefs, or values. Example: Two coworkers disagree about the best way to complete a project and must come to a compromise.
3. Group Conflict: Conflict that occurs between groups, such as within a team or between departments. Example: A department is trying to complete a task but is having difficulty deciding which resources to use due to competing interests between departments.
4. Organizational Conflict: Conflict between two or more organizations that affects business operations. Example: Two companies are trying to acquire the same resources and must negotiate an agreement that works for both organizations.
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Why did Europeans and not Asians undertake the voyages of discovery connecting the old world with the new?
Europeans undertook the voyages of discovery connecting the old world with the new because they were driven by a variety of factors, including economic, religious, and technological motivations.
Economically, European powers were interested in finding new trade routes to Asia and new sources of wealth, such as gold and spices. Religious motivations included the desire to spread Christianity to new lands and to find Christian allies against the Islamic powers in the Middle East. Technological advancements, such as the development of the compass and the astrolabe, allowed Europeans to navigate the open seas more accurately and effectively.
While Asian powers, such as China, did undertake some voyages of exploration, they did not have the same economic, religious, and technological motivations as the Europeans. As a result, they did not undertake the same level of exploration and colonization as the Europeans.
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Business Analytics:
Discuss why is predictive analytics analysis the next logical step in any business analytics (BA) process?
Discuss why would one use logic-driven models to aid in developing data-driven models?
Predictive analytics is the next logical step in a business analytics process while logic-driven models can be used to help develop data-driven models by allowing the underlying logic to be identified, such as relationships between variables, cause-effect scenarios, and thresholds.
Predictive analytics is the next logical step in any business analytics process because it provides insight into potential future outcomes. By using historical data and statistical algorithms, predictive analytics can help businesses anticipate customer behavior, forecast demand, identify potential risks, and optimize decision making. This can result in increased profitability and competitive advantage for a business.
Logic-driven models are used to aid in developing data-driven models because they provide a framework for understanding the relationships between variables. By using logic-driven models, businesses can identify the key drivers of performance and develop data-driven models that accurately reflect the underlying dynamics of the business. This can help businesses make more informed decisions and improve their overall performance.
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