A bond with 10 years to maturity has a face value of $1,000. The bond pays an 8 percent semiannual coupon, and the bond has a 9 percent nominal yield to maturity. What is the price of the bond today?
a. $908.71
b. $934.96
c. $935.82
d. $952.37
e. $960.44
f. None of the above

Answers

Answer 1

The price of the bond today is $934.96.(B)

To find the price of the bond, we need to calculate the present value of both the semiannual coupon payments and the face value. First, let's find the present value of the semiannual coupon payments:

1. Determine the coupon payment: $1,000 x 0.08 / 2 = $40.
2. Find the semiannual yield: 0.09 / 2 = 0.045.
3. Calculate the present value of the coupon payments using the annuity formula: PV = Pmt * [(1 - (1 + r)⁻ⁿ) / r], where PV = present value, Pmt = payment, r = interest rate, and n = number of periods. In this case: PV = $40 * [(1 - (1 + 0.045)⁻²⁰) / 0.045] ≈ $595.99.

Next, find the present value of the face value:

4. Calculate the present value of the face value using the discounting formula: PV = FV / (1 + r)ⁿ, where FV = face value. In this case: PV = $1,000 / (1 + 0.045)²⁰ ≈ $338.97.

Finally, add the present values of the coupon payments and face value to find the price of the bond today:

5. Bond price = PV of coupon payments + PV of face value = $595.99 + $338.97 ≈ $934.96.(B)

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Related Questions

our uncle is going to give you $1,500 at the end of each month for the next 5 years. If the interest rate is 3% what is today's value of this promise and how much money will be accumulated at the end of the period?.

Answers

Today's value of this promise is $6,816.87. This is the present value of the stream of payments of $1,500 for a period of 5 years at an interest rate of 3%.

The present value calculation takes into account the time value of money, which holds that a given amount of money today is worth more than the same amount in the future because of the opportunity to earn a return on it in the interim.

At the end of the 5 year period, the total amount accumulated would be $7,500. This is the total of the payments of $1,500 each month for 60 months at the 3% interest rate. The interest earned would be $683.13 over the 5 year period, which is the difference between the present value and the future value.

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problem 10-36 (lo. 3, 6, 7, 8, 9, 11) marcus and madison are equal members of an llc. on january 1 of the current year, to acquire a one-third interest in the entity, nora contributed a parcel of land she had held for investment. (at this time, the entity was renamed mmn, llc.) nora had purchased the land for $120,000; its fair market value was $90,000 at the contribution date. a few years later, the llc sells nora's land for $84,000. at the beginning of that year, nora's tax basis capital account was $200,000 and marcus and madison's tax basis capital accounts were $170,000. question content area a. regarding the land sale, how much gain or loss is recognized and how is it allocated?

Answers

Nora's tax basis capital account was worth $200,000 at the start of that year, while Marcus and Madison's tax basis capital accounts were worth $170,000 each. Marcus, Madison, and Nora each face a $12,000 loss from the $36,000 loss associated with the land transaction. This loss is divided equally among the three of them.

In Problems 10-36, Marcus and Madison are equal members of an LLC, and Nora contributes a parcel of land to acquire a one-third interest in the entity. Nora's tax basis in the land is $120,000, while the fair market value at the contribution date is $90,000. Later, the LLC sells Nora's land for $84,000. At the beginning of that year, Nora's tax-basis capital account was $200,000, and Marcus and Madison's tax-basis capital accounts were $170,000.

To determine the gain or loss recognized from the land sale, you must first calculate the difference between the sale price and Nora's tax basis in the land:

Gain or loss = Sale price - Tax basis

Gain or loss = $84,000 - $120,000

Gain or loss = -$36,000

Since the result is negative, the LLC recognizes a loss of $36,000 from the land sale.

Now, to allocate the loss among the LLC members, you must consider their respective ownership interests in the entity. Marcus and Madison each have a one-third interest, while Nora has a one-third interest as well. Therefore, the $36,000 loss should be allocated equally among the three members:

Allocated loss per member = Total loss / Number of members

Allocated loss per member = $36,000 / 3

Allocated loss per member = $12,000

So, regarding the land sale, a $36,000 loss is recognized, and it is allocated equally among Marcus, Madison, and Nora, with each member bearing a $12,000 loss.

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Abby also has a $400/month car loan payment and a $150/month student loan payment. If her lender requires that her Debt-to-Income ratio not exceed 43%, what does her annual gross income need to be to qualify for this loan?

Answers

Abby's annual gross income needs to be at least $41,860.44 to qualify for the loan, assuming she has no other debts.

To calculate the annual gross income required for Abby to qualify for this loan, we need to use the Debt-to-Income (DTI) ratio formula:

DTI ratio = (Total monthly debt payments / Monthly gross income) x 100%

We know that Abby's total monthly debt payments are $1,500 ($1,000 for the proposed mortgage, $400 for the car loan, and $150 for the student loan), and her DTI ratio cannot exceed 43%. So we can write:

43% = ($1,500 / Monthly gross income) x 100%

Solving for Monthly gross income:

Monthly gross income = $1,500 / (43% / 100%) = $3,488.37

To calculate the required annual gross income, we simply multiply the monthly gross income by 12:

Annual gross income = $3,488.37 x 12 = $41,860.44

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Garrett Industries turns over its inventory 7 times each​ year; it has an average collection period of 38 days and an average payment period of 31 days. The​ firm's annual sales are ​$3.2
million. Assume there is no difference in the investment per dollar of sales in​ inventory, receivables, and​ payables; and a 365​-day year.
a. Calculate the​ firm's cash conversion cycle​, its daily cash operating​ expenditure, and the amount of resources needed to support its cash conversion cycle.
b. Find the​ firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously. ​(1) Shortens the average age of inventory by 6 days. ​(2) Speeds the collection of accounts receivable by an average of 10 days. ​(3) Extends the average payment period by 8 days.
c. If the firm pays 17​% for its resource​ investment, by how​ much, if​ anything, could it increase its annual profit as a result of the changes in part b​?
d. If the annual cost of achieving the profit in part c is ​$36,000​, what action would you recommend to the​ firm? ​ Why?

Answers

a)The amount of resources needed to support the cash conversion cycle is:

Resources needed = $8,767.12 x 59.14 days = $517,898.63

b) The new cash conversion cycle and resource investment is:

Cash conversion cycle = 46.14 days + 28 days - 39 days = 35.14 daysNew resources needed = $8,767.12 x 35.14 days = $307,959.63

c) The increase in annual profit is the difference between the cost saved and the cost of achieving the changes:

Increase in annual profit = $35,689.63 - $36,000 = -$310.37

d) The firm may consider other options to improve profitability.

Calculate the cash conversion cycle using the following formula?

a. The cash conversion cycle can be calculated using the following formula:

Cash conversion cycle = Inventory conversion period + Receivables collection period - Payables deferral period

The inventory turnover is 7 times a year, so the inventory conversion period is:

Inventory conversion period = 365 days / 7 = 52.14 days

The receivables collection period is given as 38 days, and the payables deferral period is given as 31 days. Therefore:

Cash conversion cycle = 52.14 days + 38 days - 31 days = 59.14 days

The daily cash operating expenditure can be calculated by dividing the annual sales by 365:

Daily cash operating expenditure = $3.2 million / 365 = $8,767.12

The amount of resources needed to support the cash conversion cycle is the product of the daily cash operating expenditure and the cash conversion cycle:

Resources needed = $8,767.12 x 59.14 days = $517,898.63

Calculate the new cash conversion cycle and resource investment requirement?

b. To calculate the new cash conversion cycle and resource investment requirement, we need to adjust the inventory conversion period, receivables collection period, and payables deferral period as follows:

Inventory conversion period = 52.14 days - 6 days = 46.14 days

Receivables collection period = 38 days - 10 days = 28 days

Payables deferral period = 31 days + 8 days = 39 days

Cash conversion cycle = 46.14 days + 28 days - 39 days = 35.14 days

New resources needed = $8,767.12 x 35.14 days = $307,959.63

If the firm pays 17% for its resource investment how much is the annual cost of the resources saved?

c. The reduction in resources needed is:

Reduction in resources = $517,898.63 - $307,959.63 = $209,939

If the firm pays 17% for its resource investment, the annual cost of the resources saved is:

Annual cost = $209,939 x 0.17 = $35,689.63

The increase in annual profit is the difference between the cost saved and the cost of achieving the changes:

Increase in annual profit = $35,689.63 - $36,000 = -$310.37

How is the cost of achieving the changes is greater than the cost saved?

d. Based on the calculations above, the cost of achieving the changes is greater than the cost saved, resulting in a small decrease in annual profit. Therefore, it may not be worthwhile for the firm to make these changes. Instead, the firm may consider other options to improve profitability.

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historically, what pattern of reporting was used by private not-for-profit entities? the same as used with respect to for-profit entities. reporting that utilizes a fund accounting approach. a pattern of reporting that does not consider the entire entity.

Answers

Historically, private not-for-profit entities have used a pattern of reporting that utilizes a fund accounting approach.

This approach segregates the organization's financial resources into different funds, each with its own set of accounting records, in order to track and report on the organization's various programs and activities separately.

Unlike for-profit entities, which report primarily on their profitability, private not-for-profit entities are more focused on the effectiveness of their programs and services in achieving their mission. As a result, fund accounting provides a better way to report on the financial resources and activities of a not-for-profit entity in a way that is meaningful to its stakeholders, including donors, grantors, and regulators.

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Q28. Equity as an Option and NPV - A company has a single zero-coupon bond outstanding that matures in 5 years with a face value of $28 million. The current value of the company’s assets is $25 million, and the standard deviation of the return on the firm’s assets is 45 percent per year. The risk-free rate is 3 percent per year, compounded continuously.
a) The company has a new project available. The project has an NPV of $2.7 million. If the company undertakes the project, what will be the new market value of equity? Assume volatility is unchanged.
b) Assuming the company undertakes the new project and does not borrow any additional funds, what is the new continuously compounded cost of debt?

Answers

The new continuously compounded cost of debt is 3%.

a) To calculate the new market value of equity, we need to consider the current value of assets, the value of the bond, and the NPV of the new project. The market value of equity is equal to the market value of assets minus the value of the bond.

The NPV of the new project needs to be added to the market value of equity to calculate the new market value of equity. The market value of equity = Market value of assets - Value of the bond

= $25 million - $28 million = -$3 million

b) Assuming the company undertakes the new project and does not borrow any additional funds, the total value of assets will be $25 million + $2.7 million = $27.7 million. The company has no other debt, so the value of the bond remains $28 million.

The cost of debt is the risk-free rate plus a premium for default risk. Since the company has no additional debt, the premium for default risk is zero, and the new continuously compounded cost of debt is equal to the risk-free rate.

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establishing career paths or planned sequences of advancement for workers through different positions represents what type of recruiting?

Answers

Establishing career paths or planned sequences of advancement for workers through different positions represents internal recruiting

What's internal recruiting

Internal recruiting involves promoting current employees to fill open positions within the organization. This approach has several advantages, such as increased employee loyalty, improved retention rates, and reduced training costs.

Career pathing is a strategy that involves developing a series of job roles that employees can progress through within the organization. This approach enables employees to acquire the skills, knowledge, and experience required for higher-level positions, and it provides a clear path for advancement.

Career pathing also helps organizations to identify and develop future leaders, which can enhance their long-term success.

Overall, internal recruiting and career pathing can be effective strategies for organizations that prioritize employee development and retention. c

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Compute the price of a $1,000 par value, 16 percent (semi-annual payment) coupon bond with 6 years remaining until maturity assuming that the bond's yield to maturity is 9 percent? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).

Answers

The price of the coupon bond with is $1,332.02.

1. Since the coupon bond has semi-annual payments, divide the coupon rate and yield to maturity by 2:

16% / 2 = 8% and 9% / 2 = 4.5%.

2. Convert the percentages to decimals:

8% = 0.08 and 4.5% = 0.045.

3. Calculate the coupon payment per period:

$1,000 * 0.08 = $80.

4. Determine the number of periods until maturity:

6 years * 2 (semi-annual) = 12 periods.

5. Calculate the present value of the coupon payments using the annuity formula:

PV_Coupon = C * [(1 - (1 + r)^(-n)) / r],

where C is the coupon payment, r is the yield to maturity (in decimal form), and n is the number of periods.

PV_Coupon = $80 * [(1 - (1 + 0.045)^(-12)) / 0.045] ≈ $727.24.

6. Calculate the present value of the par value at maturity:

PV_Par = FV / (1 + r)^n,

where FV is the face value of the bond.

PV_Par = $1,000 / (1 + 0.045)^12 ≈ $604.78.

7. Finally, compute the bond price by adding the present values of the coupon payments and the par value:

Bond Price = PV_Coupon + PV_Par ≈ $727.24 + $604.78 ≈ $1,332.02.

The price of the $1,000 par value, 16 percent (semi-annual payment) coupon bond with 6 years remaining until maturity, assuming a yield to maturity of 9 percent, is approximately $1,332.02 (rounded to 2 decimal places).

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suppose the market risk premium is currently 6%. if investors were to become more risk-averse, the market risk premium might increase to 8%. what effect would you expect this to have on the prices of most financial assets?

Answers

If the market risk premium were to increase from 6% to 8%, we would expect to see a decrease in the prices of most financial assets.

This is because a higher market risk premium indicates that investors are demanding a higher return for taking on additional risk.

Therefore, the cost of borrowing increases for businesses and individuals, which in turn reduces their spending and investment.

As a result, companies may experience a decrease in revenue and profitability, leading to a decline in stock prices. Bonds may also be affected as investors demand higher yields to compensate for the increased risk, resulting in a decrease in bond prices.

In general, an increase in the market risk premium leads to a decrease in demand for financial assets, resulting in a drop in their prices.

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the walls of arteries and veins are composed of three layers called tunics. place the tunics in order (top to bottom), starting with the innermost layer, and ending with the outermost layer. true or false

Answers

The given statement "the walls of arteries and veins are composed of three layers called tunics. place the tunics in order (top to bottom), starting with the innermost layer, and ending with the outermost layer." is true they are arranged in a cylindrical manner.

The tunica intima, also known as the intima, is the innermost layer of the arterial or venous wall. It is composed of a single layer of endothelial cells that are in contact with the blood flow and facilitate the exchange of nutrients and waste products between the blood and the surrounding tissues.

The tunica media, also known as the media, is the middle layer of the arterial or venous wall. The vessel's strength, elasticity, and contractility are provided by the smooth muscle cells, elastic fibers, and collagen fibers that make up the vessel. Atherosclerotic and venous arteries and veins have varying media layer thicknesses depending on their function and location in the body.

The outermost layer of the arterial or venous wall is the tunica adventitia, also referred to as the adventitia or externa. It is made up of blood vessels and nerves that supply the vessel wall, as well as connective tissue like collagen and elastic fibers. The adventitia aids in anchoring the vessel to the surrounding tissues and offers structural support and protection to the vessel.

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e19.10 (lo 1, 2) clydesdale corporation has a cumulative temporary diff erence related to depreciation of $580,000 at december 31, 2020. this diff erence will reverse as follows: 2021, $42,000; 2022, $244,000; and 2023, $294,000. enacted tax rates are 17% for 2021 and 2022, and 20% for 2023. compute the amount clydesdale should report as a deferred tax liability at december 31, 2020.

Answers

The total deferred tax liability that Clydesdale Corporation should report at December 31, 2020 is:

$98,600 + $89,060 + $58,800 = $246,460

To compute the amount that Clydesdale Corporation should report as a deferred tax liability at December 31, 2020, we need to first calculate the taxable income and the deferred tax liability for each year.

Taxable income for 2021 = $42,000

Taxable income for 2022 = $244,000

Taxable income for 2023 = $294,000

Deferred tax liability for 2021 = $580,000 x 17% = $98,600

Deferred tax liability for 2022 = ($580,000 - $42,000) x 17% = $89,060

Deferred tax liability for 2023 = ($580,000 - $42,000 - $244,000) x 20% = $58,800

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in the decision-making unit, the most important role determining whether your product sells is:

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In the decision-making unit, there are multiple roles that influence whether or not a product sells. However, one of the most important roles is the decision maker.

The decision maker is the individual who ultimately makes the final decision about whether to purchase the product or not. This person is typically the most influential member of the decision-making unit, and their opinion can make or break a sale.
To effectively sell a product, it is crucial to understand the decision maker's needs, preferences, and decision-making process. This involves understanding their role in the decision-making unit and identifying what factors influence their decision-making process. Factors that may influence the decision maker's decision can include personal preferences, budget constraints, the needs of the organization, and the opinions of other members of the decision-making unit.
To effectively target the decision maker, companies must employ a targeted marketing strategy that speaks directly to the decision maker's needs and preferences. This may involve creating content that is tailored to their specific industry or interests, using persuasive language and compelling visuals, and highlighting the unique benefits and features of the product.
Ultimately, the success of a product depends on a variety of factors, including the quality of the product, the strength of the marketing strategy, and the overall effectiveness of the sales team. However, by understanding the role of the decision maker in the decision-making unit and targeting them with a targeted marketing strategy, companies can significantly increase their chances of success.

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The customer. Their preferences and needs drive the decision-making process. Understanding and catering to these factors is crucial for product success.

The decision-making unit (DMU) is a group of individuals who participate in the purchase decision process. While each member has a role to play, the most critical factor in determining whether a product sells is the customer. Ultimately, it is their preferences, needs, and motivations that drive the decision-making process. Understanding and catering to these factors is crucial for product success. Marketers must consider factors such as demographic and psychographic characteristics, pain points, and purchasing behaviors to craft a compelling value proposition that resonates with the customer. By doing so, they can effectively communicate the benefits of their product and increase the likelihood of a successful sale.

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Problem 1.8. Suppose you own 5,000 shares that are worth $25 each. How can put options be used to provide you with insurance against a decline in the value of your holding over the next four months? Y

Answers

One possible way to use put options to insure against a decline in the value of the shares you own is to buy put options with a strike price of $25 or slightly below that level.

How to put the options

A put option gives you the right, but not the obligation, to sell the underlying asset (in this case, your shares) at the strike price.

If the share price falls below the strike price, the put option would become more valuable, as it allows you to sell the shares at a higher price than the market value.

The premium paid for the put option would act as a cost for the insurance, but it would limit your potential losses in case of a significant decline in the share price.

It's important to note that put options have expiration dates, so you would need to select an option with a time frame that matches your expected holding period.

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Due to a regulatory change, earnings and dividends in a telecom company are expected to grow at a rate of 10% for the next 2 years. After this period, the form is expected to resume growth at the Industry average of 6% thereafter. The firm recently paid a dividend of $2 and the required return is 12%. What is the most you should pay for the company's stock? 
a. $19.91 
b. $6.56 
c. $28.05 
d. $37.98 
e. None of the listed items is correct

Answers

The most you should pay for the company's stock is $36.2524. Therefore, the correct option is (e) None of the listed items is correct.

To find the most you should pay for the company's stock, you can use the dividend discount model (DDM) which is:

Stock price = Dividend / (Required return - Dividend growth rate)

For the first 2 years, the dividend growth rate will be 10%, and then it will drop to 6%. So, we need to calculate the present value of dividends for the next 2 years and the present value of the stock price at the end of the second year when the growth rate drops to 6%.

Present value of dividends for the next 2 years:

Year 1 dividend = $2 * (1 + 10%) = $2.20

Year 2 dividend = $2.20 * (1 + 10%) = $2.42

To calculate the present value of these dividends, we need to discount them back to the present using the required return of 12%.

Present value of Year 1 dividend = $2.20 / (1 + 12%) = $1.9643

Present value of Year 2 dividend = $2.42 / (1 + 12%)² = $1.9611

Next, we need to find the present value of the stock price at the end of Year 2 using the constant growth DDM formula, which is:

Stock price at the end of Year 2 = (Dividend at Year 3) / (Required return - Growth rate)

Dividend at Year 3 = $2.42 * (1 + 6%) = $2.57

Stock price at the end of Year 2 = $2.57 / (12% - 6%) = $42.83

Finally, we need to discount the stock price at the end of Year 2 back to the present using the required return and the number of years until the end of Year 2, which is 2 years.

Present value of the stock price at the end of Year 2 = $42.83 / (1 + 12%)² = $32.327

Therefore, the most you should pay for the company's stock is the sum of the present value of the dividends for the next 2 years and the present value of the stock price at the end of Year 2, which is:

$1.9643 + $1.9611 + $32.327 = $36.2524.Therefore, the correct option is (e).

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In a table for customers, the information about a single customer would reside in a single: a.) table b.) row c.) column d.) field

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The information about a single customer in a table would reside in a single row. A table is made up of rows and columns, with each row representing a unique record and each column representing a specific attribute or piece of information about that record. The correct answer is option b.

In the case of a customer table, each row would represent a single customer and the columns would contain information such as their name, address, phone number, email, and any other relevant details.
The row is the basic unit of organization in a table and contains all of the information about a single record. This means that all of the customer's information, including their name, address, phone number, and any other details, would be stored in a single row. The columns in the table would contain the specific pieces of information about the customer, such as their name in the "Name" column and their address in the "Address" column.
It is important to keep the information for each customer in a single row to ensure that it is easy to access and manage. This also allows for efficient searching and sorting of the information in the table. By organizing the information in this way, it is easier to identify and analyze patterns and trends in the data, which can be useful for making business decisions and improving customer service.The correct answer is option b.

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b.) row. A single row in a table would contain all the information pertaining to a single customer, such as their name, address, email, phone number, and any other relevant details.

Each column in the row would correspond to a specific piece of information about the customer, such as their first name, last name, street address, city, state, zip code, etc. Together, all the rows in the table would contain information about multiple customers, with each row representing a unique customer. The fields within each row would represent individual pieces of data, such as the customer's name, address, or phone number.

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allison dated jacob, her supervisor, for three months. when allison told jacob that she did not want to see him anymore, he became obsessed with her. he started e-mailing her at work, dropping by her house, and stalking her after work. jacob gave allison a poor review, and eventually, she was fired. in this situation: group of answer choices allison can file a claim with the equal employment opportunity commission (eeoc) for sexual harassment because at the time the activity was no longer consensual. allison cannot file a claim with the equal employment opportunity commission (eeoc) for sexual harassment because the harassment was not severe. allison can file a claim with the equal employment opportunity commission (eeoc) for sexual harassment even if the activity was consensual. allison cannot file a claim with the equal employment opportunity commission (eeoc) for sexual harassment because she had been in a consensual relationship with jacob.

Answers

In this situation, Allison can file a claim with the Equal Employment Opportunity Commission (EEOC) for sexual harassment.

What's The claim by Allison

Allison can file a claim with the Equal Employment Opportunity Commission (EEOC) for sexual harassment because the activity was no longer consensual.

Even though she dated Jacob, her supervisor, for three months, when she told him she did not want to see him anymore, his behavior became obsessive and harassing.

Jacob's actions of emailing her at work, dropping by her house, and stalking her after work, were unwanted and created a hostile work environment.

Additionally, the fact that Jacob gave Allison a poor review and she was eventually fired, indicates that his behavior was affecting her employment.

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what is the treynor ratio of a portfolio comprised of 45% portfolio a and 55% portfolio b? a b weight 45 % 55 % avg return 13.60 % 8.40 % std dev 17.20 % 6.40 % beta 1.38 0.87 the risk-free rate is 3.12% and the market risk premium is 8.5%. multiple choice .041 .058 .069 .114 .136

Answers

The Treynor ratio of a portfolio comprised of 45% portfolio a and 55% portfolio b is 0.69.

The Treynor ratio measures the excess return of a portfolio per unit of systematic risk, or beta. It is calculated as the portfolio's excess return over the risk-free rate divided by the portfolio's beta. Mathematically,

Treynor Ratio = (Portfolio Return - Risk-Free Rate) / Portfolio Beta

To calculate the Treynor ratio for the given portfolio:

Portfolio Return = (0.45 x 0.136) + (0.55 x 0.084) = 0.1132 or 11.32%

Portfolio Beta = (0.45 x 1.38) + (0.55 x 0.87) = 1.1155

Excess Return = Portfolio Return - Risk-Free Rate = 11.32% - 3.12% = 8.20%

Therefore, the Treynor Ratio = Excess Return / Portfolio Beta = 8.20% / 1.1155 = 7.34%

Rounding to two decimal places, the Treynor Ratio of the portfolio is 0.07 or 7%.

The closest answer choice is 0.069.

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when a motorist who is involved in an automobile accident is covered under two or more liability insurance contracts, the following is true a. the insured person and the covered auto would share the coverage. b. the primary coverage is the coverage on the automobile and the other coverage is secondary. c. the primary coverage is the coverage on the insured person and the other coverage is secondary. d. it would depend on whether the motorist involved in the accident was at fault

Answers

When a motorist who is involved in an automobile accident is covered under two or more liability insurance contracts, primary coverage typically depends on terms of insurance policies, Correct answer is option B

In general, if the accident was caused by the insured person, the primary coverage would be the liability coverage on the automobile, and the other coverage would be secondary.

This means that the insurance company for the automobile would be responsible for paying the damages up to the policy limits, and the insurance company for the insured person would only be responsible for paying any damages that exceed the limits of the primary policy.

On the other hand, if the accident was not caused by the insured person, the primary coverage would be the liability coverage on the insured person, and the other coverage would be secondary.

In this case, the insurance company for the insured person would be responsible for paying the damages up to the policy limits, and the insurance company for the automobile would only be responsible for paying any damages that exceed the limits of the primary policy.

However, it is important to note that the specific terms of the insurance policies may vary, and some policies may have different rules for determining primary and secondary coverage. It is important for motorists to carefully review their insurance policies to understand their coverage in the event of an accident.

Additionally, if there is any confusion or disagreement between insurance companies regarding which policy is primary or secondary, it may be necessary for the insured person to seek legal advice to resolve the issue. Correct answer is option B

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if team members have opposite or conflicting goals, the efficiency of the total unit is likely to be energized.

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The effectiveness conflicting goals of the entire team is likely to be boosted if team members have opposing or competing aims. False.

Perceiving a connection between a new task and a task already mastered is often required for logical verification to raise self-efficacy. The majority of educational ideas were created specifically with children and teens in mind. The model outlines a systematic, step-by-step method for designing training.

Self efficacy is a self-evaluation of one's ability to successfully learn new information or abilities, and it is a key indicator of one's preparedness to learn. The development of your course material may be streamlined and organized with the use of the Addie model, an instructional design technique. The ADDIE paradigm, which was created in the 1970s, is still the most popular one for instructional design.

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Correct Question:

State true or false: If team members have opposite or conflicting goals, the efficiency of the total unit is likely to be energized.

It is important for team members to have a shared understanding of what the team is working towards and to communicate openly to ensure that conflicting goals are identified and addressed. This can help to ensure that the team is working towards a common objective and that the team's efficiency and productivity is maximized.

If team members have opposite or conflicting goals, it is likely that the efficiency of the total unit will be impacted negatively. This is because when team members have conflicting goals, they may be working against each other instead of working towards a common objective. This can lead to a lack of coordination, misunderstandings, and tension within the team.In order for a team to be efficient and effective, all team members need to be aligned towards a common goal.

This ensures that everyone is working towards the same objective and that there is a clear understanding of what needs to be achieved. When team members have conflicting goals, this can lead to confusion and a lack of focus, which ultimately hinders the team's performance.Additionally, conflicting goals can lead to unhealthy competition among team members. This can create a negative work environment, with team members competing against each other rather than working collaboratively towards a common goal. This can ultimately impact team morale and productivity.

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MM Model with Zero Taxes Qulipen Company is unlevered and has a value of $25 billion. An otherwise identical but levered firm finances 45% of its capital structure with debt. Under the MM rero-tax model, what is the value of the levered firm? Enter your answer in billions. For example, an answer of $1 billion should be entered as 1, not 1,000,000,000. Round your answer to the nearest whole number 5.

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The value of the levered firm under the MM zero-tax model is approximately $36 billion.

According to the MM zero-tax model, the value of the levered firm is equal to the value of the unlevered firm plus the tax shield value of debt. Since the tax rate is assumed to be zero in this scenario, the tax shield value of debt is simply the amount of debt multiplied by the cost of debt.

Let's assume that the cost of debt for the levered firm is 6% and the cost of equity for both the unlevered and levered firms is 10%. The capital structure of the levered firm is 45% debt and 55% equity. Therefore, the value of debt is:

Value of debt = 45% x Total value of levered firm

= 0.45 x ($25 billion + Value of debt)

Simplifying this equation, we get:

Value of debt = $11.11 billion

The tax shield value of debt is then:

Tax shield value of debt = Value of debt x Cost of debt

= $11.11 billion x 6%

= $0.67 billion

Therefore, the value of the levered firm is:

Value of levered firm = Value of unlevered firm + Tax shield value of debt

= $25 billion + $0.67 billion

= $25.67 billion

Rounding this to the nearest whole number 5, we get approximately $30 billion.

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assume that catherine has the preferences shown in the above table. also assume that the price of a can of pepsi is $3.00 and that the price of a slice of pizza is $2.00. if she has $16 available to spend, what combination of pepsi and pizza will be her consumer optimum?

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Based on the preferences shown in the table, Catherine has a diminishing marginal rate of substitution between Pepsi and pizza, meaning she is willing to give up fewer slices of pizza for an additional can of Pepsi as she consumes more of each.

To find her consumer optimum, we need to find the combination of Pepsi and pizza that maximizes her utility given her budget constraint.

Let x be the quantity of Pepsi and y be the quantity of pizza that Catherine consumes. Then, we can set up the following optimization problem:

Maximize U(x,y) = 3x + 2y

Subject to 3x + 2y = 16

Solving this problem using Lagrange multipliers, we find that the optimal consumption bundle is (4,4), meaning Catherine should buy 4 cans of Pepsi and 4 slices of pizza to maximize her utility given her budget constraint. This combination costs $24, which is more than her available budget, so Catherine will need to make a trade-off between consuming less of each good or spending more than her budget.

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Project Evaluation Kolby's Korndogs is looking at a new sausage system with an installed cost of $655,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $85,000. The sausage system will save the firm $183,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 22 percent and the discount rate is 8 percent, what is the NPV of this project?

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Steps to calculate the NPV of this project: 1. Yearly Depreciation = 655,000 / 5 = $131,000; 2. 2. After-Tax Salvage Value to MV* (1 - Tc), 3. The salvage value after taxes is zero and equals 85,000* (1-.34), 4. After-Tax Salvage Value to $0 is $56,100.

Briefing:-

5. OCF equals (Sales - Costs)(1 - TC) + (Depreciation).

\s6. OCF = (183,000.66) + (131,000.34) (131,000.34)

Cost to Start Production = Fixed Asset Investment - Net Working Capital Investment 7.

8. The cost to start production is $655,00 minus 35,000, or $690,000.

9. nap(8,-690000,{165320,165320,165320,165320,165320} = -$29,925.2

10. NPV is equal to -29,925.2 + [(Salvage Value + NWC) / (1 + r)t

11. NPV = -29,925.2 + [(56,100 + 35,000) / (1 + .08)^5]

12. NPV = -29,925.2 + 62,001.1

13. NPV = -29,925.2 + 62,001.1 = $32,075.90

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Suppose that the total debt on credit cards in 2019 was $1,088 billion, and that this was an increase from the year before. This would cause the M1 money supply to ____ and the M2 money supply to ______.
Group of answer choices
A. increase; increase
B. decrease; decrease
C. remain unchanged; remain unchanged
D. remain unchanged; increase

Answers

The correct answer is (A) increase; increase.

The terms "total debt," "M1," and "M2" are related to money supply in an economy.
If the total debt on credit cards in 2019 was $1,088 billion and this was an increase from the year before, this would cause the M1 money supply to increase and the M2 money supply to increase as well.

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The correct answer is A. increase; increase.

The M1 money supply includes cash, checking account deposits, and traveler's checks. Credit card debt is not included in M1, so an increase in credit card debt would not directly affect M1. However, an increase in credit card debt would likely lead to an increase in spending and therefore an increase in deposits in checking accounts, which are part of M1. As a result, M1 would increase.

The M2 money supply includes M1 plus savings account deposits, money market securities, and other time deposits. An increase in credit card debt would also likely lead to an increase in savings account deposits, as individuals may use savings to pay off their credit card balances. This would result in an increase in M2.

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The cost of basket of goods in Year 1 is $200 and the cost of the basket of goods in Year 2 is $225. If Year 1 is used as base year, the Year 2 price index is: a) 80 b) 112.5 c) 66.67 d) 150

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If Year 1 is used as base year, the Year 2 price index is 112.5. The correct option is b) 112.5.

To calculate the Year 2 price index, we need to use the formula:

Price index = (Cost of basket of goods in Year 2 / Cost of basket of goods in base year) x 100

Using the information given in the question, the cost of the basket of goods in Year 1 is $200 (base year) and the cost of the basket of goods in Year 2 is $225.

Substituting these values in the formula, we get:

Price index = ($225 / $200) x 100
Price index = 1.125 x 100
Price index = 112.5

Therefore, the Year 2 price index is 112.5, which means that the cost of the basket of goods has increased by 12.5% compared to the base year.  The correct answer is b) 112.5.

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Maggie has a bond and a stock with a combined value of $1,500. The bond makes annual coupons starting next year and has a coupon rate of 16.24%. The bond also has a yield to maturity of 18%, a par value of $1,000, and matures in a decade. The stock is expected to make quarterly dividend payments that grow forever. The first payment of $2 is expected in one year, and the rate of return is 20%. What is the quarterly growth rate of the stock’s dividends?

Answers

The quarterly growth rate of the stock's dividends is 4.35%.

The current value of the bond can be calculated using the formula:

PV = C/(1+r)^1 + C/(1+r)^2 + ... + C/(1+r)^n + F/(1+r)^n Where: PV = present value (unknown) C = coupon payment r = yield to maturity n = number of periods Substituting the values given: PV = 162.40/(1+0.18)^1 + 162.40/(1+0.18)^2 + ... + 162.40/(1+0.18)^10 + 1000/(1+0.18)^10 PV = $547.66

we can use the formula for perpetuity: PV = C/r Where:PV = present value (unknown) C = dividend payment r = rate of return Substituting the values given: PV = 2/(0.20/4) PV = $40 Therefore, the current value of the stock is $40. The combined value of the bond and stock is given as $1,500. Therefore, $547.66 + $40 = $1,500 - X Where X is the total amount of dividends paid by the stock. Solving for X, we get: X = $912.34 This means that the stock will pay a total of $912.34 in dividends over the next decade.

we can use the formula: r = (1 + g)^4 - 1 Where: r = rate of return g = quarterly growth rate Substituting the values given: 0.20 = (1 + g)^4 - 1 g = 0.0435 Therefore, the quarterly growth rate of the stock's dividends is 4.35%.

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A company decides to issue 1,000,000,000 shares of common stock and sells 500,000,000 of these shares to the public in an initial offering. The remainder of the shares are held as Treasury Stock. After the first day of trading, the shares are selling in the stock market for $8 per share. If the company immediately decides to split its common stock, 2 for 1:a. How many shares will be outstanding after the split?b. What will be the share price of the common?c. What will be the market value of the company after the split?

Answers

The number of shares outstanding after the split will be 1,000,000,000 outstanding shares.

The share price of the common shares would be $ 4 per share.

The market value of the compare after the split would be $ 8 billion.

How to find the number of shares ?

After the split, the number of outstanding shares will double, since the split is 2 for 1. Therefore, there will be 500,000,000 x 2 = 1,000,000,000 outstanding shares.

After the split, the share price will be halved, since the total value of the company is still the same but the number of shares has doubled. Thus, the share price will be $8 / 2 = $4 per share.

The market value of the company will remain the same after the split, since the total value of the company is still $8 billion (1,000,000,000 shares x $8 per share). Therefore, the market value of the company after the split will still be $8 billion.

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Blossom Appliances Corporation has reported its financial results for the year ended December 31, 2017. Blossom Appliances Corporation Income Statement for the Fiscal Year Ended December 31, 2017 Net sales $6,492,712,000 Cost of goods sold 3,390,963,940 Gross profit $3,101,748,060 Selling general, and administrative expenses 983.558,423 Depreciation 292.671.116 Operating income $1,825,518,521 Interest expense 40,099,500 EBT $1,785,419,021Income taxes 473.184,956 Net earnings $1,312,234,065 Calculate these liquidity ratios: current and quick ratios. (Round answers to 2 decimal places, eg. 12.25.) Liquidity Ratios Current Ratio ______times Quick Ratio______ times Calculate these coverage ratios: times interest earned cash coverage. (Round answers to 2 decimal places, eg, 12.25.) Coverage Ratios Times interest earned ________ times Cash coverage ______times

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The liquidity ratios are 4.46 times for the current ratio and 4.25 times for the quick ratio. The coverage ratios are 44.47 times for the times interest earned ratio and 51.69 times for the cash coverage ratio.

Current Ratio = Current Assets / Current Liabilities

Current Assets = Net Sales

Current Liabilities = Selling, general and administrative expenses + Current portion of long-term debt + Income taxes payable

Current Liabilities = $983,558,423 + $0 + $473,184,956

Current Ratio = $6,492,712,000 / $1,456,743,379

Current Ratio = 4.46 times

Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Inventory = Cost of goods sold - Gross profit

Inventory = $3,390,963,940 - $3,101,748,060

Inventory = $289,215,880

Quick Ratio = ($6,492,712,000 - $289,215,880) / $1,456,743,379

Quick Ratio = 4.25 times

Times Interest Earned = Earnings Before Taxes / Interest Expense

Times Interest Earned = $1,785,419,021 / $40,099,500

Times Interest Earned = 44.47 times

Cash Coverage = (Earnings Before Taxes + Depreciation) / Interest Expense

Cash Coverage = ($1,785,419,021 + $292,671,116) / $40,099,500

Cash Coverage = 51.69 times.

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the responsible management (use and conservation) of the earth's resources indefinitely is called .

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The responsible management (use and conservation) of the earth's resources indefinitely is called sustainable development. Sustainable development involves meeting the needs of the present without compromising the ability of future generations to meet their own needs, ensuring a balance between economic growth, environmental protection, and social well-being.

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managers of international companies that are attempting to develop a competitive advantage faec a formidable challenge because

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Managers of international companies that are attempting to develop competitive advantage face a formidable challenge because time, talent, and money are scarce.

An international company is an offshore entity created in accordance with the laws of some jurisdictions as a tax-neutral business that is typically restricted in terms of the activities it may engage in within the jurisdiction in which it is incorporated, though this is not always the case. An IBC or its owners may be subject to taxation in other jurisdictions even though they are not subject to taxation in the country where they were formed, for example, if they live in a nation with "controlled foreign corporation" laws.

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Ordinary shares in Company S are listed on the London Stock Exchange. Company T has announced a dividend of 32p per ordinary share for the current year. There will be only one dividend payable for the year. It is forecast that Company T will announce a dividend of 34p per ordinary share for next year and that there will be only one dividend payable for the year. Company T's shares have a market price of 274.56p Calculate Company T's cost of equity capital based on the information above. Give your answer as a percentage, without the percent sign, to 2 decimal places. For example, for 8.333% enter 8.33

Answers

The investors would require a return of at least 12.38% in order to invest in Company T's shares

To calculate Company T's cost of equity capital, we need to use the dividend discount model. This model assumes that the current market price of a share is equal to the present value of all future dividends. Therefore, we can use the following formula: Cost of Equity = (Dividend for next year / Market Price per share) + Growth Rate


Using the information provided, we can calculate the cost of equity as follows: Cost of Equity = (0.34 / 2.7456) + (0.034 / 2) ,Cost of Equity = 0.1238 or 12.38%

Therefore, Company T's cost of equity capital is 12.38%. This means that investors would require a return of at least 12.38% in order to invest in Company T's shares.

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