When a multinational enterprise (MNE) chooses option C, expecting that consumers in the host country will mistake it for a local business, it is considered to be following a multidomestic strategy.
MNE is made up of a number of international entrepreneurial businesses. The core of this company's approach is local responsiveness. These companies' shared financial governance and the identities and interests of the founders and owners are the only things keeping them together.
The multicenter MNE should ultimately be seen as a portfolio of essentially independent and autonomous firms. Businesses with a high degree of global integration aim to cut costs as much as possible by achieving economies of scale through a more uniform product offering globally. Businesses with a strong focus on local needs also aim to tailor their goods and services to meet those demands.
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Complete question is:
A multinational enterprise (MNE) is said to be pursuing a multidomestic strategy when it:
A. Is pursued in response to low pressure for local responsiveness and low pressure for cost reduction.
B. attempts to reap significant economies of scale by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost.
C. attempts to maximize local responsiveness, hoping that the host country consumers will perceive it to be a local company.
D. operates on the assumptions made in the globalization hypothesis in order to lower costs.
When a multinational organization (MNE) concentrates on customizing its operations, services, and products to fit the unique requirements and preferences of each local market where it conducts business, it is said to be following a multi-domestic strategy.
A sort of worldwide business strategy known as a multi domestic strategy is adjusting a company's operations, services, and products to suit the particular requirements and preferences of each local market in which it competes. As choices are made by local managers who have a greater awareness of the local market conditions and consumer needs, this method places an emphasis on local responsiveness and decentralization. Multinational businesses (MNEs) that operate in extremely fragmented and diversified marketplaces, where standardized products or services may not be effective or competitive, frequently employ multi-domestic strategies. MNEs can expand their market share and profitability by catering to the particular demands and preferences of local clients by adjusting to local markets.
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1. Assume you have started a manufacturing business 2. List down at least 10 assets acquired during the period with date of acquisition, cost, residual value and useful life 3. These 10 assets should be from at least 3 of the following categories: 1. Land 2. Machinery 3. Furniture 4. Computer 5. Vehicles Explain which model (cost or revaluation) you would pick for each of the categories above for your company at the end of the year. Justify this choice 5. Prepare depreciation schedule for THREE of the assets you have acquired 5. Assume one asset is disposed of, assume a date of disposal and value for sale proceeds and prepare journal entry for its disposal Assume that there is an accident with ONE of the 10 assets you have acquired. With assumed figures explain how you would run an impairment test at the end of the rear me that there is a sharp increase in land prices so you decide to revalue at year sure to show all journal entries and extracts of p&l and balance sheet at year
Assuming a manufacturing business was started, at least 10 assets acquired during the period should be listed.
These assets should be from at least 3 of the following categories: land, machinery, furniture, computer, and vehicles. For land, the revaluation model should be used as it is a long-term asset. Machinery and vehicles should use the cost model, while furniture and computers can use either model.
A depreciation schedule should be prepared for 3 of the assets acquired. In case of disposal of an asset, a journal entry should be prepared based on the date of disposal and value for sale proceeds.
An impairment test should be run in case of an accident with one of the acquired assets. In case of a sharp increase in land prices, revaluation should be done, and all relevant journal entries and extracts of P&L and balance sheet at year-end should be shown.
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true or false the higher the percentage of a firm's total costs that are fixed, the higher the degree of operating leverage and the lower the operating breakeven point.
True. Operating leverage is the relationship between fixed costs and total costs within a business. The higher the percentage of fixed costs, the higher the degree of operating leverage and the lower the operating breakeven point.
Higher fixed costs will generate higher profits with a given level of sales because the fixed costs are not affected by changes in the sales volume. Therefore, with a higher fixed cost percentage, a company only needs to make a lower volume of sales to reach the breakeven point and make a profit. This is because the fixed costs remain the same even when the sales volume changes.
Overall, the higher the fixed cost percentage, the higher the degree of operating leverage and the lower the operating breakeven point.
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T/F A job description is a narrative statement of the major activities involved in performing a job and conditions under which these duties are performed
True. A job description outlines job duties, qualifications, and conditions. It helps attract candidates, set expectations, and prevent conflicts.
A job description is a document that outlines the key duties, responsibilities, and requirements of a particular job. It typically includes information about the job title, duties, qualifications, experience, and skills required for the position. The job description also describes the conditions under which the job is performed, such as working hours, physical demands, and necessary equipment or tools. The purpose of a job description is to provide a clear understanding of what is expected of an employee in a particular role. It can help attract qualified candidates, set expectations for performance evaluations, and provide a basis for developing job training programs.
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A stock will pay no dividends for the next 9 years. Ten years from now, the stock is expected to pay its first dividend in the amount of $2.8. It is expected to pay a dividend of $3.5 exactly eleven years from now. The dividend is expected to grow at a rate of 4% per year forever after that point. The required return on the stock is 10%. The stock's estimated price per share exactly twelve years from now, P12. should be $
The stock's estimated price per share exactly twelve years from now, P12 should be $55.15.
To find the stock's estimated price per share exactly twelve years from now (P12), we'll first calculate the dividend paid in year 12 (D12) using the dividend growth formula:
D12 = D11 * (1 + g) = $3.5 * (1 + 0.04) = $3.5 * 1.04 = $3.64
Next, we'll use the dividend discount model to find the price per share at year 11 (P11):
P11 = D12 / (r - g) = $3.64 / (0.10 - 0.04) = $3.64 / 0.06 = $60.67
Finally, we'll discount P11 back to year 12 using the required return:
P12 = P11 / (1 + r)^1 = $60.67 / (1 + 0.10)^1 = $60.67 / 1.10 = $55.15
So, when a stock pays $3.5 in dividend exactly eleven years from now and is expected to grow at a rate of 4% and required return is 10%, then exactly twelve years from now, P12, stock's estimated price per share should be approximately $55.15.
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you expect whirlpool corporation (whr) to have earnings per share of $6.10 over the coming year. if whirlpool stock is currently trading at $87.00 per share, then whirlpool's p/e ratio is closest to: group of answer choices
Based on the information provided, we can calculate Whirlpool's P/E ratio using the formula P/E ratio = Price per share / Earnings per share.
Using the expected earnings per share of $6.10 and the current stock price of $87.00 per share, we get a P/E ratio of approximately 14.26.
Therefore, the closest answer choice would be 14.
The P/E ratio is an important metric used by investors to determine the relative value of a company's stock. A high P/E ratio can indicate that the market has high expectations for a company's future earnings potential, while a low P/E ratio may suggest that a company is undervalued or facing challenges.
In the case of Whirlpool, a P/E ratio of 14.26 suggests that the market is reasonably optimistic about the company's future earnings prospects, but not excessively so. However, it is worth noting that the P/E ratio is just one of many factors that investors should consider when evaluating a stock.
Other factors such as the company's financial health, competitive position, and industry trends can also have a significant impact on its performance over time.
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the conceptual model group of answer choices explores the effects of changing model parameters. helps in organizing the data requirements. controls the model inputs. has tools defined to identify the optimal solution.
"Helps in organizing the data requirements." So the correct option is A. A conceptual model is a simplified representation of a system or phenomenon that helps in understanding and analyzing its behavior.
In the context of modeling, a conceptual model is developed to identify the relevant variables, relationships, and assumptions that are needed to simulate the real-world system. It is usually developed at the initial stage of the modeling process and serves as a guide for data collection, model construction, and analysis.
The purpose of a conceptual model is to provide a clear and concise description of the problem domain and its key features, without going into too much detail. It helps in organizing the data requirements by identifying the relevant variables and data sources, and specifying the data types, formats, and quality requirements. By doing so, it enables the modeler to focus on the essential aspects of the problem and avoid unnecessary complexity.
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ABC Corp has an average inventory period (production process time + time before sale) of 36 days. Accounts receivables are outstanding an average of 14 days. Gross margins for the firm average 8%. What is the average length of the firm's short-term operating cycle
The average length of ABC Corp's short-term operating cycle is 50 days.
This is calculated by adding the average inventory period of 36 days to the average accounts receivables outstanding of 14 days. The short-term operating cycle is the length of time it takes for a firm to convert its current assets into cash.
It is one of the primary measures of a firm's liquidity. The operating cycle for ABC Corp begins when it acquires raw materials to produce its products and ends when its customers pay their outstanding accounts receivables.
In between these two points in time, ABC Corp has to invest in inventory, pay its suppliers, and spend money to produce its products. The firm must generate enough revenue to cover these costs and still maintain a gross margin of 8%.
The length of the operating cycle is important since it is an indication of the firm's ability to meet its short-term obligations. Knowing the average length of the cycle allows ABC Corp to plan its operations accordingly and make sure it is not overextending itself financially in the short-term.
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A company has the following capital structure: $5 million from bonds, $25 million from preferred stock, and $100 million from common stock. The cost of each source of funding is as follows: Bonds = 7.00%; Common = 9.75%; Preferred = 6.50%. Compute the company's WACC.
The company's WACC is 7.73%. To compute the company's weighted average cost of capital (WACC), we need to first calculate the proportion of each source of funding in the capital structure.
The total capital structure is $5 million + $25 million + $100 million = $130 million.
Proportion of bonds = $5 million / $130 million = 0.0385
Proportion of preferred stock = $25 million / $130 million = 0.1923
Proportion of common stock = $100 million / $130 million = 0.7692
Next, we need to calculate the cost of each source of funding adjusted for its proportion in the capital structure.
Cost of bonds = 7.00%
Cost of preferred stock = 6.50%
Cost of common stock = 9.75%
WACC = (0.0385 x 0.07) + (0.1923 x 0.065) + (0.7692 x 0.0975) = 0.0773 or 7.73%
Therefore, the company's WACC is 7.73%.
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Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid.
Date Price Dividend
Jan 1 $ 33.27 -
Feb 5 $ 30.55 $ 0.19
May 14 $ 29.64 $ 0.22
Aug 13 $ 30.35 $ 0.21
Nov 12 $ 39.42 $ 0.17
Dec 31 $ 41.54 -
Return for the entire period is____ %
The return for investing in the stock from January 1 to December 31 is 24.23%.
To calculate this, we need to take the final price of the stock on December 31 ($41.54) and subtract the initial price of the stock on January 1 ($33.27).
We then need to add the sum of all dividends ($0.19 + $0.22 + $0.21 + $0.17) to get the total return, which is $9.24. We then divide this total return by the initial price ($33.27) and multiply by 100 to get the return expressed as a percentage. This gives us 24.23%, which is the return for investing in the stock from January 1 to December 31.
In brief, by investing in the stock from January 1 to December 31, we would have seen a return of 24.23%.
This return is calculated by subtracting the initial price of the stock from the final price and adding the cumulative dividends received to get a total return, which is then divided by the initial price and expressed as a percentage.
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A corporation may alternate between S corporation and C corporation status each year, depending on which results in more tax savings. Section 1244 ordinary loss treatment on the sale of small business corporation stock is available to shareholders in both C corporations and S corporations.
The first statement is incorrect. A corporation cannot alternate between S corporation and C corporation status each year based on which results in more tax savings.
Once a corporation elects S corporation status, it must meet specific eligibility criteria and comply with ongoing requirements to maintain its status. The decision to elect or revoke S corporation status should be based on a variety of factors beyond just tax savings, such as liability protection, ease of administration, and ownership restrictions.
The second statement is partially correct. Section 1244 of the Internal Revenue Code provides ordinary loss treatment for individual shareholders who sell qualifying small business corporation (QSBC) stock.
This treatment is available to shareholders of both C corporations and S corporations that meet the eligibility requirements, such as having a total capitalization of $50 million or less at the time of issuance and using at least 80% of their assets in an active trade or business.
However, there are some differences in the application of Section 1244 for C corporations and S corporations, particularly regarding the treatment of losses upon liquidation or dissolution.
It is important to consult with a qualified tax professional to fully understand the implications of electing S corporation or C corporation status, as well as the eligibility requirements and tax treatment of Section 1244 for small business corporation stock.
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assuming that product differentiation is successful, which of the statements best describes how advertising can affect the demand curve for the monopolistically competitive firm?
Additionally, advertising can make the demand curve more inelastic as consumers become more brand loyal and less sensitive to price changes.
Assuming that product differentiation is successful, advertising can shift the demand curve for the monopolistically competitive firm to the right. This is because advertising can create brand awareness and loyalty, which can increase consumer demand for the product. However, it is important to note that the extent to which advertising affects the demand curve will depend on the effectiveness of the advertising campaign and the degree of competition in the market.
Assuming that product differentiation is successful, the statement that best describes how advertising can affect the demand curve for a monopolistically competitive firm is:"Advertising can shift the demand curve to the right and make it more inelastic."In this scenario, successful advertising promotes the unique features and benefits of the product, making it more attractive to consumers. This leads to an increase in demand for the product, shifting the demand curve to the right.
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hat amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $300?
If the allowance account had a year-end unadjusted debit balance of $300, it means that more money was debited to the account than credited throughout the year.
To correct this imbalance, a year-end adjusting entry would need to be made, which would credit the allowance account by the same amount that was debited to bring it back to a zero balance. Therefore, the amount that would have been used in the year-end adjusting entry would be $300, which would be credited to the allowance account to bring it back to its proper balance.
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"Help with following. will upvote
You just purchased a share of SPCC for 596. You expect to receive a dividend of 57 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have eamed over the year? What was your dividend yield? Your capital gain rate? The total retum you will have earned over the year is % Round to two decimal places. Your dividend yield will be | %, (Round to two decimal places.) Your capital gain rate will bol. (Round to two decimal places)
The total return earned over the year is 28.19%. The dividend yield is 9.57%, and the capital gain rate is 17.62%.
To calculate the total return, you need to add the capital gain and the dividend yield.
The capital gain is calculated as the difference between the expected price after the dividend is paid and the initial purchase price, divided by the initial purchase price.
So, (110 - 57 - 596) / 596
= 0.1762 or 17.62%.
The dividend yield is calculated as the dividend amount divided by the initial purchase price.
So, 57 / 596
= 0.0957 or 9.57%.
Therefore, the total return is 17.62% + 9.57% = 28.19%.
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The total return earned over the year is 28.19%. The dividend yield is 9.57%, and the capital gain rate is 17.62%.
To determine the overall return, sum the capital gain and dividend yield.
The capital gain is computed by dividing the difference between the projected price once the dividend is paid by the initial purchase price.
So, (110 - 57 - 596) / 596
= 0.1762 or 17.62%.
The dividend yield is calculated as the dividend amount divided by the initial purchase price.
So, 57 / 596
= 0.0957 or 9.57%.
Therefore, the total return is 17.62% + 9.57% = 28.19%.
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I purchased 100 IBM stock shares one year ago for $5.0 per share. I received a dividend payment of $0.5 per share from IBM yesterday and the current IBM stock price is $6.0 per share. What is my investment return from the IBM shares over the past year (keep two decimal places such as 0.12)?
Your investment return from the IBM shares over the past year is 30%.
Here's a step-by-step explanation to calculate your investment return from the IBM shares over the past year:
1. Initial purchase cost: You bought 100 shares at $5.0 per share, so the total cost was 100 x $5.0 = $500.
2. Dividend payment: You received $0.5 per share in dividends, so the total dividend amount is 100 x $0.5 = $50.
3. Current value of shares: The current stock price is $6.0 per share, so the total value of your shares is now 100 x $6.0 = $600.
4. Calculate the total return: To find the total return, add the current value of the shares and the dividend payment, and then subtract the initial purchase cost: ($600 + $50) - $500 = $150.
5. Calculate the investment return as a percentage: Divide the total return by the initial purchase cost and multiply by 100 to get the percentage return: ($150 / $500) x 100 = 30%.
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you buy an seven-year bond that has a 5.00% current yield and a 5.00% coupon (paid annually). in one year, promised yields to maturity have risen to 6.00%. what is your holding-period return?
Your holding-period return would be 8.33%
How to calculate the holding-period returnThe holding-period return of your seven-year bond would be calculated as follows:
- First, calculate the purchase price of the bond. Assuming a face value of $1,000, the bond's price would have been $1,000 * 5.00% = $50 (the annual coupon payment) / 5.00% (the current yield) = $1,000.
- After one year, the promised yield to maturity has risen to 6.00%. This means that if you were to sell the bond at that point, its price would have decreased.
Using the bond pricing formula, we can estimate that the new price of the bond would be $50 / 6.00% + $1,000 = $1,083.33.
- Therefore, your holding-period return would be ($1,083.33 - $1,000) / $1,000 = 8.33%, or the percentage increase in the bond's price over the one-year period.
However, it's important to note that this calculation doesn't take into account any reinvestment of the coupon payments or the effect of taxes or fees bond's.
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emotional intelligence is important for and may spell the difference between effective and ineffective order-getting salespeople. multiple choice question. adaptive selling sales quotas key account management the workload method
Emotional intelligence is a crucial skill for effective adaptive selling, which is the ability of a salesperson to adapt their sales approach to fit the needs and preferences of the customer. The Correct option is A
Salespeople who possess high emotional intelligence can understand and manage their emotions, recognize the emotions of the customer, and use emotional information to build rapport and influence the buying decision. This ability to empathize and connect with the customer can make the difference between effective and ineffective order-getting salespeople.
Sales quotas, key account management, and the workload method are important concepts in sales, but emotional intelligence is particularly important for adaptive selling, as it allows salespeople to build long-term relationships based on trust and mutual understanding with their customers.
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Complete Question:
Which of the following sales-related concepts is emotional intelligence important for and may spell the difference between effective and ineffective order-getting salespeople?
a) Adaptive selling
b) Sales quotas
c) Key account management
d) The workload method
which statement about product excellence is true? multiple choice question. it is primarily achieved through efficient operations and efficient production. it generally does not result in meaningful competitive advantage. it is achieved by having products with high perceived value and effective branding and positioning. it yields cost savings through economies of scale.
The statement that is true about product excellence is that it is achieved by having products with high perceived value and effective branding and positioning. The correct answer is C.
Product excellence refers to the quality and superiority of a product relative to its competitors. It is achieved through various means such as innovation, superior design, exceptional customer service, and effective branding and positioning.
Having products with high perceived value and effective branding and positioning can help a company differentiate its products from those of its competitors, and this can result in a meaningful competitive advantage. It can also enable a company to charge a premium price for its products, which can lead to increased profitability.
Efficient operations and production can help a company achieve cost savings through economies of scale, but they are not the only factors that contribute to product excellence.
Therefore, the correct answer is C. It is achieved by having products with high perceived value and effective branding and positioning.
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You are evaluating a project with an initial investment of $13.8 million dollars, and expected cash flows of $7 million dollars each for years 1-3. What is the project's simple payback? The corporate WACC is 7% Express your answer in years, rounded to 2 decimals. So, if your answer is 2.7654, then just enter 2.77
it is just 2.7654 then 2,77
Answer:the simple payback period for this project is 4.03 years.
Explanation:
2. An individual with zero initial wealth and the utility function U(Y) = Y.4 is confronted with the gamble Li (16,4;.40). Answer the following: (a) What is the certainty equivalent for the gamble? (b) What is the maximum he would pay for an insurance policy that guarantees the expected payoff of the gamble? (c) What is the probability premium? The probability premium is the increase in the probability of good state that matches the U(E(L1)). (d) Now assume the individual is confronted with the gamble L2 = (36, 16;.50). What is the certainty equivalent, maximum insurance payment, and probability premium for L2?
For the gamble L1 with outcomes (16,4; 0.4), the certainty equivalent is $11.42, the maximum insurance payment is $6.57, and the probability premium is 0.07. For the gamble L2 with outcomes (36, 16; 0.5), the certainty equivalent is $22.68, the maximum insurance payment is $13.32, and the probability premium is 0.05.
(a) To find the certainty equivalent for the gamble L1(16,4;.40), we need to find the amount of certain money that gives the same level of utility as the expected utility of the gamble. The expected utility of the gamble is:
EU(L1) = (.40)×(16)^.4 + (.60)×(4)^.4 = 6.73
To find the certainty equivalent, we set U(CE) = EU(L1) and solve for CE:
CE^.4 = 6.73
CE = (6.73)^2.5 = $27.22
Therefore, the certainty equivalent for the gamble is $27.22.
(b) The maximum amount the individual would pay for an insurance policy that guarantees the expected payoff of the gamble is the expected value of the gamble minus the certainty equivalent:
Max insurance payment = E(L1) - CE = (.40)×16 + (.60)×4 - 27.22 = $2.78
(c) The probability premium is the increase in the probability of the good state that matches the certainty equivalent of the gamble. Since the certainty equivalent is $27.22, we need to find the probability of the good state that gives a utility of $27.22:
(16)^.4 × (p) + (4)^.4 × (1-p) = 27.22
Solving for p, we get:
p = 0.787
Therefore, the probability premium is 0.787 - 0.40 = 0.387 or 38.7%.
(d) For the gamble L2 = (36, 16;.50), the expected utility is:
EU(L2) = (.50)×(36)^.4 + (.50)×(16)^.4 = 13.32
To find the certainty equivalent, we solve U(CE) = EU(L2) for CE:
CE^.4 = 13.32
CE = (13.32)^2.5 = $48.72
Therefore, the certainty equivalent for the gamble L2 is $48.72.
The maximum amount the individual would pay for an insurance policy that guarantees the expected payoff of the gamble is:
Max insurance payment = E(L2) - CE = (.50)×36 + (.50)×16 - 48.72 = $1.28
The probability premium is:
(36)^.4 × (p) + (16)^.4 × (1-p) = 48.72
Solving for p, we get:p = 0.943
Therefore, the probability premium is 0.943 - 0.50 = 0.443 or 44.3%.
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Task 1. Find up to 5 REITS, collect the data for them and choose 2. To choose, conduct the analysis. (use the links for the data provided in class. Use PDF slides or recorded lectures)
Choose the sector to invest. Explain your choice (10 points)
Choose among mutual funds and EFTs. Explain your choice (10 points)
Get the data for REITs price, returns, dividends, calculate historical dividend growth rates. Very briefly explain what your analysis show and what you conclude (10 points)
Task 2. Briefly explain the notion of Real Estate Notes (10 points)
Task 3. Explain the difference between Active Funds (for example mutual funds) and Passive (Index) funds. Be specific – list at least 3 major differences. (10 points)
Task 4. Explain in which cases we want to use "cash-on-cash" return, IRR, and equity multiple, respectively. Be specific. (10 points)
The equity analysis for this investment as presented in the lecture. What an investor can learn from an equity study.The most loan you would be able to receive, assuming a lender offers a 30-year self-amortizing loan structure with a 7% annual interest rate, is roughly $1,076,200.
The debt coverage ratio is calculated as net operating income divided by total debt service. For the full debt service.
Task 1: 1.3 = $111,700.Total debt service comes to $85,923.0769 ($117,000 divided by 1.3).Total debt service divided by 12 equals the monthly payment of 7160.25641, or 85,923.0769.
Task 2: Rate/12 (7%/12) is the same as the periodic rate, which is 0.5833%.Years are the sum of all periods; 12 = 30 * 12 = 360.These steps are used to calculate present value: Monthly payment *
Task 3: (1- (1/ (1+ rate time) /rate 0.5833 (1.005833 )360)/0.O05833 0.005833 = 7160.25641 *
(1-(1/ = 7160.25641 (1-(1/ 8.116497 borrowed. =7160.25641* (1- 0.1232 )
Task 4: As=7160.25641 (0.876794)
As= $1,076,240.7269.A loan from one or more people, businesses, or other entities to other people, companies, or other entities is known as a "iloan." The recipient accrues a debt that must typically be paid.
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what is the approximate present value of receiving $5,000 per year for 10 years if the first receipt is 7 years from today and interest is discounted at 5% annually?
The approximate present value of receiving $5,000 per year for 10 years, with the first receipt 7 years from today and interest discounted at 5% annually, is $33,585.
Calculate the present value of each of the 10 annual payments using the formula for present value of an annuity.
PV = C × [(1 - (1 + r)^-n) / r]
where PV is the present value, C is the annual payment, r is the discount rate, and n is the number of periods.
In this case, C = $5,000, r = 5%, and n = 10.
Using the formula, the present value of each annual payment is:
PV = $5,000 × [(1 - (1 + 0.05)^-10) / 0.05] = $35,487.67
Calculate the present value of the annuity starting in year 7 by discounting each of the 10 annual payments to its present value at year 7.
To discount each annual payment to its present value at year 7, we need to use the formula for present value of a single amount:
PV = FV / (1 + r)^n
where FV is the future value, r is the discount rate, and n is the number of periods.
In this case, n is the number of years from the year of the payment to year 7.
The present value of each annual payment at year 7 is:
PV = $35,487.67 / (1 + 0.05)^7 = $22,281.73
Calculate the total present value by summing the present values of all 10 annual payments.
Since there are 10 annual payments, the total present value is:
Total PV = $22,281.73 × 10 = $222,817.33
However, this value is in year 7 dollars, so we need to convert it to present value in today's dollars by discounting it by 5% for 7 years using the same formula for present value of a single amount.
The present value in today's dollars is:
Present Value = $222,817.33 / (1 + 0.05)^7 = $33,585.08
Therefore, the approximate present value of receiving $5,000 per year for 10 years, with the first receipt 7 years from today and interest discounted at 5% annually, is $33,585.
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#27 Suppose the risk-free rate is 3.78% and an analyst assumes a market risk premium of 7.37%. Firm A just paid a dividend of $1.47 per share. The analyst estimates the ß of Firm A to be 1.38 and estimates the dividend growth rate to be 4.32% forever. Firm A has 270.00 million shares outstanding. Firm B just paid a dividend of $1.53 per share. The analyst estimates the ß of Firm B to be 0.71 and believes that dividends will grow at 2.08% forever. Firm B has 185.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
Using the dividend discount model (DDM) formula, the value of Firm A yield to $48.81 billion.
The Dividend Discount Model (DDM) is a method used to estimate the intrinsic value of a stock by calculating the present value of expected future dividends. The model assumes that the value of a stock is the sum of all its future cash flows, in this case, the expected future dividends.
The DDM formula calculates the value of a stock by dividing the expected dividend per share by the difference between the cost of equity and the dividend growth rate.
To calculate the value of Firm A, we can use the dividend discount model (DDM) formula, which is:
Value of Firm =
[tex]\frac{Dividend~per~share}{Cost~of~equity - Dividend~growth~rate} \times Number~of~shares~outstanding[/tex]
Using the data provided, we can calculate the value of Firm A as:
Value of Firm A = [tex]\(\frac{1.47}{0.0378 + 1.38 \times 0.0737 - 0.0432} \times 270.00 \text{ million}\)[/tex]
Value of Firm A = ($1.47 ÷ 0.12334) × 270.00 million
Value of Firm A = $11.90 billion
Therefore, the value of Firm A is $48.81 billion.
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it is a basic accounting fact that the level of investment for the economy as a whole must equal the level of
The basic accounting fact demonstrates that in a closed and balanced economy, the total amount of savings must be equal to the total amount of investments. This equilibrium ensures that the resources saved by individuals and businesses are effectively allocated towards investments, contributing to the overall growth and stability of the economy.
The basic accounting fact that the level of investment for the economy as a whole must equal the level of savings. Here's a concise explanation:
1. In a closed economy (where there is no international trade), the total income of the economy is equal to the total output, which can be represented as: Y = C + I + G, where Y represents income, C represents consumption, I represents investment, and G represents government spending.
2. The income of the economy is distributed between consumption and savings (S). Therefore, Y = C + S.
3. By substituting the consumption equation (Y = C + S) into the output equation (Y = C + I + G), we can see that C + S = C + I + G.
4. Since C (consumption) is present on both sides of the equation, we can eliminate it, resulting in: S = I + G. 5. In a situation where the government's budget is balanced (meaning government spending equals tax revenue), the equation simplifies to S = I, which shows that the level of investment in the economy must equal the level of savings.
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Sales management, sales automation, and customer service management are key elements of_systems. OA) SRM OB) SCM OC) ERP D) CRM
Sales management, sales automation, and customer service management are key elements of CRM systems. The correct answer is D) CRM (Customer Relationship Management) systems.
Customer relationship management (CRM) refers to the principles, practices, and guidelines followed by an organization when interacting with its customers. From the organization's point of view, this entire relationship encompasses direct interactions with customers, such as sales and service-related processes, forecasting, and the analysis of customer trends and behaviors. Thus, the goal of CRM is to enhance the customer's overall experience.
CRM systems help manage and analyze customer interactions and data throughout the customer lifecycle, improving customer service, enhancing customer retention, and driving sales growth. Thus, sales management, sales automation, and customer service management are key elements of CRM systems. Option D is correct.
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what should a vendor central user update to enable customers to discover their products using the search bar?
To make it possible for consumers to find their items using the search bar, a vendor central user should update the information about their products, such as titles, descriptions, and keywords.
A vendor central user should update their product information, such as titles, descriptions, and keywords, to enable customers to discover their products using the search bar. It is important to ensure that the product information is accurate and relevant to the customer's search query, as this will increase the likelihood of the product being displayed in search results. Additionally, the vendor should optimize their product listings with high-quality images and detailed product specifications to further enhance the customer's shopping experience.
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which of the following is an advantage of using a perpetual inventory system? a. it is effective with hand-written inventory cards. b. it is less time consuming than other methods. c. it is able to detect when errors are made. d. it is relatively easy and inexpensive to set up.
The advantage of using a perpetual inventory system is that it is able to detect when errors are made. This is because the system keeps track of inventory levels in real-time, automatically updating as new inventory is received or sold.
With this constant monitoring, any discrepancies between the recorded inventory levels and the actual levels can be quickly identified and addressed. This helps to prevent stockouts, overstocking, and other inventory-related issues that can negatively impact a business's bottom line.
While the other options listed may also have some advantages, they do not provide the same level of accuracy and efficiency as a perpetual inventory system. For example, using hand-written inventory cards can be error-prone and time-consuming, while other methods may require more manual data entry and reconciliation.
Additionally, while a perpetual inventory system may require some initial setup and investment, it ultimately saves time and money in the long run by streamlining inventory management processes and reducing the risk of costly errors.
Therefore, the most significant advantage of a perpetual inventory system is its ability to provide accurate and up-to-date information on inventory levels, allowing businesses to make informed decisions and optimize their operations.
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78.You are calculating the NPV of one day's sales associated with a given credit policythat does not offer a discount and has an average collection period of 45 days. Youshould discount variable costs _____ days and credit administration and collectionexpenses ______ days.
a.0,0 b.0, 45 *
c.45, 45
d.45, 0
To calculate the Net Present Value (NPV) of one day's sales associated with a credit policy that does not offer a discount and has an average collection period of 45 days.
We need to discount variable costs and credit administration and collection expenses for the appropriate number of days.
Option b. (0, 45) is the correct answer. Variable costs should be discounted for zero days as they are incurred at the time of sale. Credit administration and collection expenses should be discounted for 45 days as they are incurred after the sale and take an average of 45 days to collect.
Discounting the costs for the correct number of days ensures that we are accurately reflecting the time value of money and the cost of financing the credit policy. By calculating the NPV, we can determine whether the credit policy is profitable or not and make informed decisions about whether to continue with it or not.
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Booher Book Stores has a beta of 0.4. The yield on a 3-month T-bill is 3.5% and the yield on a 10-year T-bond is 6.5%. The market risk premium is 7%, and the return on an average stock in the market last year was 13.5%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.
The estimated cost of common equity for Booher Book Stores using the CAPM is 4.9%.
The CAPM formula for estimating the cost of common equity is:Cost of common equity = risk-free rate + beta * market risk premium where beta is the stock's sensitivity to market risk and the market risk premium is the excess return investors demand to hold a risky asset over a risk-free asset.Using the given information, we can calculate the estimated cost of common equity as follows:risk-free rate = 3.5%market risk premium = 7% - 3.5% = 3.5%beta = 0.4Cost of common equity = 3.5% + 0.4 * 3.5% = 4.9%
Therefore, the estimated cost of common equity for Booher Book Stores using the CAPM is 4.9%.
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young employee is buying individual life insurance and is worried about the impact inflation will have on his life insurance coverage. which of the following riders should he consider? a. waiver of premium disability benefit b. accidental death benefit c. guaranteed insurability option d. cost-of-living protection e. accelerated benefits
The rider that the young employee should consider to protect against the impact of inflation on his life insurance coverage is the "cost-of-living protection" rider. So, option (d) is correct.
This rider will adjust the death benefit amount of the policy based on the inflation rate, ensuring that the policy's coverage keeps pace with the rising cost of living over time.
The cost-of-living protection rider is designed to protect the policyholder against the erosion of the policy's purchasing power due to inflation. It provides for an increase in the death benefit amount over time, based on a specified rate of inflation or a consumer price index, without requiring additional underwriting or medical exams.
This rider can help ensure that the policy's benefits will be sufficient to cover the insured's needs, even as the living cost increases.
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Question 2 You have been presented with the following accounts receivable information for Firm months' sales and the accounts receivable balances at the end of June, the pre Use 180 days to calculate average daily credit sales. What is DSO for the 6-me Month Credit Sales January February March April May June June 30 AVR balance $ 119107 50,000 100,000 40,000 45,000 $ 50.000
The DSO for the 6-month period is approximately 30.36 days. To calculate the DSO (Days Sales Outstanding) for the 6-month period, we first need to calculate the average daily credit sales.
We can do this by dividing the total credit sales for the 6 months by 180 days (since there are 30 days in each month).
Total credit sales for 6 months = $119,107 + $50,000 + $100,000 + $40,000 + $45,000 + $50,000 = $404,107
Average daily credit sales = $404,107 / 180 = $2,245.60
Next, we need to calculate the accounts receivable turnover ratio by dividing the total credit sales for the 6 months by the average accounts receivable balance for the same period.
Total credit sales for 6 months = $119,107 + $50,000 + $100,000 + $40,000 + $45,000 + $50,000 = $404,107
Average accounts receivable balance for 6 months = ($119,107 + $50,000 + $100,000 + $40,000 + $45,000 + $50,000) / 6 = $68,184.50
Accounts receivable turnover ratio = $404,107 / $68,184.50 = 5.926
Finally, we can calculate the DSO by dividing the number of days in the 6-month period by the accounts receivable turnover ratio.
DSO = 180 / 5.926 = 30.36 days
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