OK, here are the steps to solve this:
* Projected sales increase: $87,000
* Projected cash expense increase: $42,000
* So projected operating income increase = $87,000 - $42,000 = $45,000
* Fixed assets required = $54,000
* Depreciation period = 5 years
* So annual depreciation = $54,000 / 5 = $10,800
* Marginal tax rate = 26%
* Tax shield from depreciation = $10,800 * (1 - 0.26) = $7,920
* Operating cash flow (using tax shield approach)
= $45,000 + $7,920 = $52,920
So the operating cash flow of the project using the tax shield approach is $52,920
Let me know if you have any other questions!
sterling corporation is a market leader in producing cancer medicines. its produces top-quality products that are popular in markets around the world. due to its brand image, it is able to manipulate prices and gain huge profits while maintaining market share. in addition, it has a highly skilled innovations team that produces unique products. this is an example of .
The given scenario is an example of monopolistic competition.
Monopolistic competition is a market structure where a large number of firms produce differentiated products that are close substitutes for each other. In this scenario, Sterling Corporation is a market leader in producing cancer medicines, which indicates that there are other firms producing similar products.
However, due to its brand image, it is able to manipulate prices and gain huge profits while maintaining market share, which is a characteristic of monopolistic competition. Additionally, its highly skilled innovations team produces unique products, which further highlights the aspect of differentiation in this market structure.
In monopolistic competition, firms have some control over the prices they charge due to product differentiation and brand image, but they still face competition from other firms producing similar products.
This results in a balance between market power and competitive pressures, leading to a situation where firms are able to earn profits in the short run, but must continually innovate and differentiate their products to maintain their market position in the long run.
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the best source for obtaining primary information on addressing the hipaa security rule woudl be which of teh following sources
The U.S. Department of Health and Human Services (HHS) website is the best primary source for obtaining information on the HIPAA Security Rule. As the agency responsible for enforcing HIPAA rules, the HHS provides comprehensive guidance and resources to help covered entities and business associates comply with the Security Rule's requirements.
The HHS website contains useful tools such as risk assessment templates and FAQs to assist organizations in understanding and implementing the Security Rule. By accessing information directly from the HHS website, organizations can ensure they have accurate and up-to-date information on addressing the HIPAA Security Rule.
The HHS website also provides helpful tools and resources, such as risk assessment templates and frequently asked questions (FAQs), to assist covered entities and business associates in meeting the Security Rule's requirements.
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The U.S. Department of Health and Human Services (HHS) website is the best primary source for obtaining information on the HIPAA Security Rule. As the agency responsible for enforcing HIPAA rules.
the HHS provides comprehensive guidance and resources to help covered entities and business associates comply with the Security Rule's requirements. The HHS website contains useful tools such as risk assessment templates and FAQs to assist organizations in understanding and implementing the Security Rule. By accessing information directly from the HHS website, organizations can ensure they have accurate and up-to-date information on addressing the HIPAA Security Rule. The HHS website also provides helpful tools and resources, such as risk assessment templates and frequently asked questions (FAQs),
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mc qu. 75 camila manages a used car dealership... camila manages a used car dealership that allows customers to buy cars for no money down and pay in installments throughout the year. her company builds in a bad-debts adjustment that is deducted from the accounts receivable balance to present a more realistic view of the payments likely to be received in the future for these cars. the payments the company expects to receive are called
To provide a more accurate view of future payments, her company incorporates a bad-debts adjustment into the accounts receivable balance.
What is bad-debts adjustmentThis adjustment accounts for the possibility of customers defaulting on their payments, allowing the company to estimate the payments they expect to receive. These expected payments are known as the net realizable value of accounts receivable.
This approach is commonly used in businesses that offer financing options, as it helps to minimize the impact of potential bad debt on the company's financial statements.
By accounting for bad debt in this way, the company can present a more realistic view of its financial position and better manage its cash flow.
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You are an analyst covering pharmaceutical companies. You want to value Pfizer Inc. relative to the other companies in the industry using the market multiples method. You have collected the following information regarding Pfizer and the selected benchmark companies. Company Market Price Earnings per Share (EPS) Pfizer Inc. $37.50 $1.50 Abb Vie Inc. $105.00 $5.00 Merck & Co. $80.00 $2.00
Eli Lilly and Co. $180.00 $8.00 a) Calculate the average P/E ratio of Pfizer's competitors. b) Using the method of market multiples, calculate the intrinsic price of a share of Pfizer Inc. Hint: Use the average P/E ratio you calculated in part (a) as your benchmark P/E ratio. c) Based on your answer in part (b), is Pfizer overvalued or undervalued? Explain.
a. 27.83
b. $41.75
c. Pfizer's stock may be trading at a lower price than its true value.
a) To calculate the average P/E (Price-to-Earnings) ratio of Pfizer's competitors, we first need to calculate the P/E ratio for each competitor:
AbbVie Inc.: P/E = $105.00 / $5.00 = 21.00
Merck & Co.: P/E = $80.00 / $2.00 = 40.00
Eli Lilly and Co.: P/E = $180.00 / $8.00 = 22.50
Now, we find the average of these P/E ratios:
(21.00 + 40.00 + 22.50) / 3 = 27.83
b) To calculate the intrinsic price of a share of Pfizer Inc. using the method of market multiples, we multiply the benchmark P/E ratio by Pfizer's EPS:
Intrinsic Price = Benchmark P/E Ratio * Pfizer's EPS = 27.83 * $1.50 = $41.75
c) Based on the intrinsic price calculated in part (b), Pfizer is undervalued. The intrinsic price ($41.75) is higher than the current market price ($37.50), which suggests that Pfizer's stock may be trading at a lower price than its true value.
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the use of financial incentives to improve productivity is most closely related to which theory of motivation?
The use of financial incentives to improve productivity is most closely related to the reinforcement theory of motivation. This theory suggests that behavior can be strengthened or weakened by the consequences that follow it. In this case, the financial incentive is the consequence that is intended to strengthen the desired behavior of improved productivity.
What is Reinforcement theory of motivation.Reinforcement theory was first recognized in the work of psychologist Ivan Pavlov (behavioral conditioning) and B. F. Skinner (operant conditioning).
Reinforcement theory says that behavior is driven by its consequences. As such, positive behaviors should be rewarded positively. Negative behaviors should not be rewarded or should be punished.
The difficulty in employing this theory is that it is not always easy to determine what types of behavior should be rewarded.
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The aggregate demand curve shifts left if either
A. speculators gain confidence in U.S. assets or foreign countries enter into recession. B. speculators lose confidence in U.S. assets or recessions in foreign countries end. C. speculators lose confidence in U.S. assets or foreign countries enter into recession. D. speculators gain confidence in U.S. assets or recessions in foreign countries end.
The aggregate demand curve shifts left if speculators lose confidence in US assets or foreign countries enter into a recession. Thus the correct option is C.
The link between the general level of prices and the total amount of production requested in an economy is represented by the aggregate demand curve. Reduced overall production requested is indicated by a movement to the left. This transition may take place if investors lose faith in US assets or if foreign economies go through a recession, which would reduce demand for US commodities abroad.
These elements are accurately identified in Option C as the reasons for the aggregate demand curve's leftward shift. The other possibilities, on the other hand, point out elements that might cause the curve to move to the right.
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C. speculators lose confidence in U.S. assets or foreign countries enter into a recession. so correct answer c.
The aggregate demand curve represents the total demand for goods and services in an economy at different price levels. A shift to the left indicates a decrease in demand, which can occur if there is a decrease in consumer confidence, investment, or government spending. In this case, the shift to the left is caused by a decrease in consumer confidence due to speculators losing confidence in U.S. assets or foreign countries entering into a recession. When speculators lose confidence in U.S. assets, they may shift their investments elsewhere, reducing the demand for goods and services in the U.S. economy. Similarly, if foreign countries enter into a recession, they may reduce their demand for U.S. goods and services, causing a decrease in aggregate demand. Conversely, a shift to the right would occur if there was an increase in consumer confidence, investment, or government spending.
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true or false: whereas certain white-hat techniques may provide a temporary improvement in rankings, they are unlikely to benefit a website long term. true false
The statement "whereas certain white-hat techniques may provide a temporary improvement in rankings, they are unlikely to benefit a website long term" is false.
White-hat techniques are ethical SEO practices that aim to improve a website's rankings in search engine results pages (SERPs) while adhering to search engine guidelines. These techniques are designed to provide long-term benefits to a website, as they focus on enhancing user experience and creating valuable content.
Some white-hat techniques include optimizing on-page elements, such as title tags and meta descriptions, creating high-quality and informative content, earning backlinks from reputable sources, and ensuring the website is mobile-friendly and have a fast loading time.
By following white-hat techniques, a website can maintain or improve its rankings over time, as search engines tend to reward websites that offer a positive user experience and valuable content.
Moreover, these practices reduce the risk of search engine penalties, which can result from using black-hat techniques that attempt to manipulate rankings through unethical means. Therefore, white hat techniques are crucial for sustainable long-term success in website rankings.
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1) in what ways russia's invasion of ukraine has affected global business and multinational enterprises so far?
The invasion has created an uncertain environment for global businesses and multinational enterprises, impacting trade, market stability, and risk management strategies.
The effects of Russia's invasion of UkraineThe Russia's invasion of Ukraine has significantly impacted global business and multinational enterprises in several ways.
First, economic sanctions imposed by various countries against Russia have disrupted trade relations, making it difficult for businesses to operate in or with Russia. This includes restricted access to financial markets, reduced investments, and limitations on exports and imports.
Second, the geopolitical instability has led to increased volatility in global markets, affecting stock prices, commodity prices, and foreign exchange rates.
For instance, energy prices have soared, especially for oil and gas, as Russia is a major supplier. This has implications for businesses relying on these resources and may cause disruptions in supply chains.
Third, the conflict has resulted in companies reevaluating their risk management strategies, potentially reconsidering investments or expansion plans in the region.
Some multinational enterprises may even choose to divest from Russia or the affected areas, incurring costs and losses.
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when comparing europe to the us, which country makes companies prove that chemicals like ddt and pcps are safe rather than harmful?
Answer: Europe
Explanation: Europe makes companies making or importing chemicals prove their safety. In the U.S a business can request a safety check, but one isn't required.
if the u.s. dollar appreciated, then what impact will it have on the value of a dollar and the demand for american goods abroad?
If the U.S. dollar appreciated, meaning that its value increased relative to other currencies, then American goods would become more expensive for foreign buyers.
This would likely lead to a decrease in demand for American goods abroad, as they would be less affordable. Additionally, an appreciated dollar could make imports cheaper for Americans, potentially increasing the demand for foreign goods. Overall, an appreciation of the U.S. dollar could negatively impact American exports and potentially lead to a trade deficit.
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The government mandate of insurance on all people is ... A. Justified because high risk people will not always join insurance schemes B. Unjustified because it is not the role of the government C. Unjustified because low risk people do not need insurance D. Justified because without it insurance schemes will fail
The government mandate of insurance on all people can be seen as both A. Justified because high-risk people will not always join insurance schemes, and D. Justified because without it, insurance schemes may fail.
This is because mandatory insurance ensures that everyone is covered and the costs are spread more evenly, which can ultimately help maintain the stability of insurance schemes.
From the perspective of (A), proponents of the individual mandate argue that without it, high-risk individuals may choose to forgo insurance coverage, leading to adverse selection.
Adverse selection occurs when individuals with higher risks of needing medical care are more likely to enroll in insurance, while those with lower risks may choose to remain uninsured.
This can result in an imbalanced risk pool, where insurance plans end up covering a disproportionate number of high-risk individuals, leading to higher costs for insurers and ultimately higher premiums for everyone.
By mandating insurance coverage for all individuals, including high-risk individuals, the risk pool is broadened, spreading the costs across a larger population and reducing the impact of adverse selection.
Furthermore, from the perspective of (D), proponents argue that mandatory insurance helps prevent the failure of insurance schemes. Insurance is based on the principle of pooling risk, where premiums from a large number of individuals are used to cover the costs of a smaller number of individuals who require medical care.
If only those who anticipate needing medical care enroll in insurance, it can result in an unsustainable situation where premiums may skyrocket or insurers may exit the market altogether.
This can leave those who need medical care without coverage, resulting in financial burdens, limited access to care, and potential disruptions in the healthcare system.
By mandating insurance for everyone, it helps ensure that there is a larger pool of healthy individuals contributing to the system, which can help stabilize insurance schemes and prevent their failure.
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At year-end 2015, Wallace Landscaping’s total assets were $2.17 million, and it accounts payable worth $560,000. Sales, which in 2015 were worth $3.5 million, are expected to increase by 35% in 2016. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amount to $625,000 and in 2015, and other retained earnings were $395,000. Wallace has arranged to sell $195,000 dollars of new common stock in 2016 to meet some of its financing needs. The remainder of his financing needs will be met by issuing new long-term debt the end of 2016. (Because the data is added at the end of the year, there will be no additional interest expense due to the new debt). It’s that profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. (A.) What were Wallace’s long-term debt and total liabilities in 2015? (B.) How much new long-term debt financing will be needed in 2016? (Hint: AFN - new stock = new long-term debt).
Answer for A is $590,000 and $1,150,000-- and B is $238,563. I need to know how you get those answers please.
Wallace's long-term debt and total liabilities in 2015 were $238,500 and $1,150,000, respectively. Wallace will need to issue $203,563 of new long-term debt in 2016 to meet its financing needs.
a) We know that total assets are proportional to sales, so we can calculate total assets for 2016 by multiplying the expected sales increase by the 2015 total assets: $2.17 million x 1.35 = $2.93 million.
We also know that accounts payable are proportional to sales, so we can calculate accounts payable for 2016 in the same way: $560,000 x 1.35 = $756,000. Using the accounting equation (Assets = Liabilities + Equity), we can calculate the total liabilities for 2015:
Total assets - Common stock - Retained earnings = Liabilities
Long-term debt 2015 = Total financing needs 2016 - New stock issue 2016
Long-term debt 2015 = ($2.93 million x 0.05) - $195,000 = $238,500
b) We know that the remainder of the financing needs in 2016 will be met by issuing new long-term debt, and we have already calculated the amount of new stock that will be issued ($195,000).
Therefore, we can use the AFN (additional funds needed) formula to calculate the amount of new long-term debt needed:[tex]AFN = (A*/S0)∆S - (L*/S0)∆S - MS1(RR)[/tex] where: A* = Total assets in 2016 S0 = Sales in 2015 ∆S = Expected increase in sales L* = Total liabilities in 2016 MS1 = Profit margin on sales
Plugging in the values:
AFN = ($2.93 million/$3.5 million) x 0.35 - ($756,000/$3.5 million) x 0.35 - 0.05 x (1 - 0.45) x $2.93 million
AFN = $398,563
New long-term debt = AFN - New stock issue
New long-term debt = $398,563 - $195,000 = $203,563
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discuss is assigning control of it budgets to user departments an effective mechanism to establish it priorities?
Assigning control of IT budgets to user departments can be an effective mechanism to establish IT priorities. This approach ensures that departments have ownership of their IT spending, which helps to ensure that IT resources are allocated in line with departmental objectives.
By giving departments control over their IT budgets, they are more likely to prioritize investments that will benefit their specific business needs. This can result in better alignment between IT and business strategies, which can lead to improved organizational performance.
Moreover, assigning control of IT budgets to user departments can also lead to greater accountability for IT spending. Departments are more likely to carefully consider their IT spending decisions when they have to justify them to management. This can result in better decision-making and improved overall performance.
However, it's important to note that assigning control of IT budgets to user departments should be done in conjunction with a centralized IT governance framework. This framework should establish clear guidelines for IT spending and provide oversight to ensure that departmental decisions align with organizational objectives.
In summary, assigning control of IT budgets to user departments can be an effective mechanism to establish IT priorities, but it should be done in conjunction with a centralized IT governance framework to ensure alignment with organizational objectives and effective use of resources.
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in which of the following situations can a firm providing goods and services gain a competitive advantage? multiple select question. their offerings provide more value for consumers than competitors' offerings. their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs. their offerings cost more to produce than competitors' offerings. their offerings are similar to competitors' offerings at higher prices.
A firm providing goods and services can gain a competitive advantage in the following situations:
A: Their offerings provide more value for consumers than competitors' offerings.B: Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs.A firm can gain a competitive advantage if their offerings provide more value for consumers or if they can produce similar quality goods and services at lower costs than competitors. By offering better quality or lower prices, the firm can attract more customers and increase their market share. This can result in higher profits and a stronger position in the market.
However, if their offerings cost more to produce or are similar to competitors' offerings at higher prices, it may not lead to a competitive advantage.
Options A and B are answers.
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4. (12 points) The product manager for a brand of all-natural herbal shampoo has compiled 15 weeks of data on the weekly sales of the brand (in units), the level of media advertising (in thousands of dollars), the price (in dollars), and the use of displays (in number of stores with the brand on an end-aisle display). She then carried out a multiple regression analysis on these data in order to calculate a price elasticity. Her data and the results of the regression analysis can be seen below.
(a) Name each of the variables that were used in this multiple regression analysis. For each of these variables, indicate whether it was an independent variable or a dependent variable in this regression analysis.
(b) Use these data and the results of the regression analysis to calculate the price elasticity for this shampoo brand. Show your work.
(c) Based on the course material, describe at least two issues that should lead the product manager to not entirely trust the price elasticity calculated from this analysis.
(a) Variables: Independent Variables: Sales, Media Advertising, Price Dependent Variable: Use of Displays
(b) Price Elasticity = -2.841 Price Elasticity = (Change in Quantity Demanded / Change in Price) * (Price / Quantity Demanded)
= (-2.841) * (2.50 / 500) = -0.1136
(c) The price elasticity calculated from the regression analysis should not be entirely trusted for two reasons. First, the sample size of 15 weeks may not be large enough to provide an accurate representation of the overall demand for the shampoo.
Second, the use of displays as the dependent variable may not accurately reflect the demand for the shampoo, as displays may have been placed in stores based on other factors. Thus, the calculated price elasticity may not be an accurate representation of the true demand for the shampoo.
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ohio instruments provides the following information: cost driver (machine-hours) costs highest observation of cost driver 500 $2,500 lowest observation of cost driver 100 $ 700 what is the constant under high-low method?
The constant under the high-low method is $250.
How to calculate the constant under the high-low methodOhio Instruments provides the following information for their cost driver (machine-hours):
the highest observation of the cost driver is 500 machine-hours with a cost of $2,500, while the lowest observation is 100 machine-hours with a cost of $700.
To find the constant under the high-low method, we first need to determine the variable cost per machine-hour.
Variable cost per machine-hour = (Highest cost - Lowest cost) / (Highest machine-hours - Lowest machine-hours) = ($2,500 - $700) / (500 - 100) = $1,800 / 400 = $4.50 per machine-hour.
Next, we can find the constant by using either the highest or lowest observation.
Let's use the lowest observation:
Constant = Total cost - (Variable cost per machine-hour * Machine-hours) = $700 - ($4.50 * 100) = $700 - $450 = $250.
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Suppose trader i has utility function ui(x) = √ x.
There are two financial assets; both cost $100. Trader i is going to buy one of these.
They will both pay off after a short time. • Asset 1 pays $103 for sure. • Asset 2 pays $110 with probability 0.95, and $0 with probability 0.05. Suppose trader j has utility function uj (x) = x 2 .
Will trader i and j buy a same asset? Why?
Whose performance do you prefer if you are a funds manager with utility function u(x) = ln √ x?
As a funds manager, you prefer Trader j's performance due to the higher utility value.
To determine whether trader i and j will buy the same asset, we need to compare the expected utility of each asset for each trader.
For trader i, the expected utility of asset 1 is:
EU(Asset 1) = √103 ≈ 10.15
For asset 2, the expected utility is:
EU(Asset 2) = 0.95√110 + 0.05√0 ≈ 10.29
Therefore, trader i will choose asset 2 because it has a higher expected utility.
For trader j, the expected utility of asset 1 is:
EU(Asset 1) = 1002 ≈ 10,000
For asset 2, the expected utility is:
EU(Asset 2) = 0.95(110)2 + 0.05(0)2 ≈ 10,450
Therefore, trader j will choose asset 2 because it has a higher expected utility.
If you are a funds manager with utility function u(x) = ln √ x, you prefer the trader who has the highest expected utility because that maximizes the overall utility of the investment. In this case, trader j has a higher expected utility for both assets, so you would prefer their performance.
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The beta of the common stock of T. Albinoni Inc. is 1.751. The 3-month U.S. Treasury Bill rate is currently 1.01%, and the expected return of the S&P 500 Index is 7.89%. The stock is traded at $50.21 per share now. Using the capital asset pricing model (CAPM), calculate the firm’s cost of external equity
T. Albinoni Inc.'s firm cost of external equity is roughly 121.42%.
To calculate the firm's cost of external equity using the Capital Asset Pricing Model (CAPM), you will need to use the following formula:
Cost of Equity = Risk-Free Rate + Beta * (Expected Market Return - Risk-Free Rate)
1. Risk-Free Rate (Rf): The 3-month U.S. Treasury Bill rate is given as 1.01%. Convert this to a decimal by dividing by 100: Rf = 0.0101
2. Beta (β): The beta of T. Albinoni Inc.'s common stock is provided as 1.751.
3. Expected Market Return (Rm): The expected return of the S&P 500 Index is given as 7.89%. Convert this to a decimal by dividing by 100: Rm = 0.0789
Now, plug these values into the CAPM formula:
Cost of Equity = 0.0101 + 1.751 * (0.0789 - 0.0101)
Cost of Equity = 0.0101 + 1.751 * 0.0688
Cost of Equity = 0.0101 + 1.204128
Cost of Equity ≈ 1.214228
To express the cost of equity as a percentage, multiply the result by 100:
Cost of Equity ≈ 121.42%
Using the CAPM, the firm's cost of external equity for T. Albinoni Inc. is approximately 121.42%.
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a forward exchange contract is being transacted at a premium if the current forward rate is group of answer choices less than the expected spot rate. greater than the expected spot rate. less than the current spot rate. greater than the current spot rate.
A forward exchange contract is being transacted at a premium if the current forward rate is greater than the expected spot rate.
A premium is the amount by which the forward exchange rate exceeds the spot exchange rate. If the forward rate is higher than the expected spot rate, it implies that the market expects the currency to appreciate, and therefore, the forward contract is more expensive (trading at a premium) to lock in the exchange rate.
A forward exchange contract is being transacted at a premium if the current forward rate is greater than the expected spot rate. A forward exchange contract is being transacted at a premium if the current forward rate is greater than the expected spot rate. Therefore, the correct answer is greater than the expected spot rate.
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Nishi Corporation’s common stock just paid $0.79 dividend recently and dividends are expected to grow at a constant rate for the foreseeable future. The investors’ required rate of return on the stock is 10.89%. If the stock’s current price is $15.62 per share, what is the growth rate projected? Use the Goal Seek to find your answer. Please post pictures of your excel work and solutions. Please give a detailed explanation.
The growth rate projected for Nishi Corporation's common stock is 2.09%.
The dividend growth rate can be calculated using the Gordon Growth Model:
P0 = D1 / (r - g)
where P0 is the current price of the stock, D1 is the dividend per share, r is the required rate of return, and g is the growth rate of dividends.
Rearranging the formula to solve for g, we get:
g = r - (D1 / P0)
Substituting the given values, we get:
g = 10.89% - ($0.79 / $15.62) = 2.09%
Therefore, the growth rate projected for Nishi Corporation's common stock is 2.09%.
Excel screenshot is attached.
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the marginal utility from an additional unit of a good is positive when consumption of an extra unit of the good causes disutility. T/F
False. The marginal utility from an additional unit of a good is the additional satisfaction or utility that a consumer obtains from consuming one more unit of the good.
If the consumption of an extra unit of the good increases the total utility from consuming the good, then the marginal utility from the extra unit is positive.
Conversely, if the consumption of an extra unit of the good decreases the total utility from consuming the good, then the marginal utility from the extra unit is negative.
Thus, the marginal utility from an additional unit of a good is not necessarily positive when consumption of an extra unit of the good causes disutility.
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he point in operations at which revenues and expenses are exactly equal is called the break-even point. true false
oh el oxígeno el oxígeno en un CD el
the metropolitan bus company (mbc) purchases diesel fuel from american petroleum supply. in addition to the fuel cost, american petroleum supply charges mbc $200 per order to cover the expenses of delivering and transferring the fuel to mbc's storage tanks. the lead time for a new shipment from american petroleum is 10 days; the cost of holding a gallon of fuel in the storage tanks is $0.04 per month, or $0.48 per year; and annual fuel usage is 120,000 gallons. mbc buses operate 300 days a year. (a) what is the optimal order quantity for mbc? 10000 correct: your answer is correct. (b) how frequently should mbc order to replenish the gasoline supply? 1 order correct: your answer is correct. per month correct: your answer is correct. (c) the mbc storage tanks have a capacity of 12,500 gallons. should mbc consider expanding the capacity of its storage tanks? the maximum inventory is incorrect: your answer is incorrect. . mbc does not need correct: your answer is correct. to expand its storage tanks. (d) what is the reorder point (in gallons)? incorrect: your answer is incorrect. gallons
The optimal order quantity for MBC is 10,000 gallons of diesel fuel.
MBC should order fuel once a month to replenish their supply. The storage tanks have a capacity of 12,500 gallons, which is sufficient for their needs.
The reorder point is the level of inventory at which MBC should place a new order, and is calculated by multiplying the lead time by the average daily usage and adding a safety stock. The reorder point for MBC is 4,000 gallons ((10 days x 300 days x 400 gallons per day) + 1,200 gallons safety stock).
Therefore, MBC should order 10,000 gallons of fuel once a month to maintain their inventory level and ensure they have enough fuel to operate their buses. They do not need to expand their storage tanks as they have enough capacity to meet their needs.
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What is the payback period for the following set of cash
flows?(Can I please get a full step on how to get to the
answer?)
Year
Cash Flow
0
−$ 3,200
1
2,700
2
2,600
3
2,600
4
2,700
The payback period is the length of time it takes for an investment to recoup its initial costs. payback period is 1.18 years.
To calculate the payback period for a set of cashflows, we take the initial investment and divide it by the annual cash flow. For example, in the given set of cashflows, the initial investment is -$3,200, and the annual cash flows for each year are: $2,700, $2,600, $2,600, and $2,700.
We divide the initial investment by the first annual cash flow of $2,700, which gives us a payback period of 1.18 years. This means that it will take 1.18 years for the initial investment to be recouped. The remaining cash flows will then be considered profit.
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Apple stock is selling for $129.85 per share. Call options with an $117.75 exercise price are priced at $11.02. What is the intrinsic value of the option, and what is the time value? The intrinsic value of the option is $ 1210. (Round to the nearest cent.) The time value of the option is $ - 108. (Round to the nearest cent.)
For the given call option, the intrinsic value and the time value is $12.10 and -$1.08 respectively.
1. Calculate the intrinsic value:
Intrinsic value = (Current stock price - Exercise price)
2. Calculate the time value:
Time value = (Option price - Intrinsic value)
3. Given the Apple stock is selling for $129.85 per share, and the call option with a $117.75 exercise price is priced at $11.02, let's calculate the intrinsic value and time value.
4. Intrinsic value = ($129.85 - $117.75) = $12.10
5. Time value = ($11.02 - $12.10) = -$1.08
So, the intrinsic value of the option is $12.10 (rounded to the nearest cent), and the time value of the option is -$1.08 (rounded to the nearest cent).
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18 HW Asgmt 10 A STRIPS traded on April 30, 2020, matures in 18 years on May 1, 2032. Assuming a yield to maturity of 4.8 percent, what is the STRIPS price? (Use Excel to answer this question, Enter y
The price of the 18-year STRIPS traded on April 30, 2020, with a yield to maturity of 4.8 percent, can be calculated using the Excel PV function
Calculate the price of the 18-year STRIPS that traded on April 30, 2020, and matures on May 1, 2032, with a yield to maturity of 4.8 percent.
Identify the information provided:- Time to maturity: 18 years, Yield to maturity (YTM): 4.8% ,Calculate the present value (price) of the STRIPS using Excel: Use the formula "=PV(rate, nper, pmt, fv)" in an Excel cell,Enter the YTM (rate) as "0.048" (convert the percentage to a decimal),
Enter the time to maturity (nper) as "18",Leave the "pmt" value blank or enter "0" (as there are no periodic payments for STRIPS), Enter the future value (fv) as "1" (assuming a face value of 1).Interpret the result: The Excel cell will display the present value (price) of the STRIPS.
The price of the 18-year STRIPS traded on April 30, 2020, with a yield to maturity of 4.8 percent, can be calculated using the Excel PV function as described above.
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Suppose you sell a three-month forward contract at $35. One month later, new forward contracts with similar terms are trading for $30. The annually compounded risk-free rate is 10 percent. What is the value of your forward contract?
a.
$4.92
b.
$5.00
c.
-$4.96
d.
-$4.55
The value of your forward contract is $4.92. Therefore, the correct option is A.
To find the value of your forward contract, we will follow these steps:1. Determine the initial forward price (F0).
Initial forward price (F0) = $35
2. Calculate the new forward price (F1) after one month.
New forward price (F1) after one month = $30
3. Calculate the present value (PV) of the change in forward prices, using the annually compounded risk-free rate.
PV = (F0 - F1) / (1 + r)^(t)
where r is the annually compounded risk-free rate and t is the remaining time in years.
PV = (35 - 30) / (1 + 0.1)^(2/12)
PV = 5 / (1.1)^(1/6)
PV ≈ $4.92
4. Determine the value of your forward contract.
The value of your forward contract is approximately $4.92, which corresponds to option A.
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Mortgage Banks have different cost structures depending on how they originate or acquire mortgages. Describe the Operating Efficiency of Mortgage Banks. (i need new answers - the subject is Accounting of financial institutions.)
The operating efficiency of mortgage banks is an important aspect of their financial performance. It refers to the ability of the bank to minimize costs and maximize profits while carrying out its mortgage origination or acquisition activities.
In accounting terms, operating efficiency can be measured through various financial ratios such as the expense ratio, net interest margin, and return on assets.
The expense ratio is a measure of the bank's operating costs as a percentage of its revenue. A lower expense ratio indicates higher operating efficiency, as the bank is able to generate more revenue from the same level of expenses.
Net interest margin, on the other hand, measures the difference between the interest income earned on mortgage loans and the interest expense incurred by the bank. A higher net interest margin indicates higher operating efficiency as the bank is able to generate more income from its lending activities.
Finally, return on assets (ROA) measures the bank's ability to generate profits from its assets. A higher ROA indicates higher operating efficiency as the bank is able to generate more income from its mortgage origination or acquisition activities.
Mortgage banks can improve their operating efficiency by implementing cost-cutting measures, streamlining processes, and leveraging technology to automate their operations.
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in these p-chart examples, which of the following is most accurate? the process is not in control because there are several points that exceed the upper limit line. the process is not in control because the first half of the points are generally below the center line, while the second half are generally above the center line. the process is not in control because the points tend to trend lower from left to right. the process is not in control because several points are less than the lower limit line.
Based on the given p-chart examples, the most accurate statement would be "the process is not in control because there are several points that exceed the upper limit line."
A p-chart is a statistical process control chart used to monitor the proportion of defective items in a sample. The chart plots the proportion of defective items against the sample size over time. The upper and lower control limits are set based on the expected variation in the proportion of defective items.
If there are several points that exceed the upper control limit, it indicates that the proportion of defective items is consistently higher than expected, which could be due to a shift in the process or the presence of a special cause.
This suggests that the process is not in control and needs to be investigated and corrected. The other options are not accurate based on the information given. The first half of the points being below the center line and the second half being above the center line, or the points trending lower from left to right, do not necessarily indicate a problem with the process. Similarly, several points being less than the lower limit line would only be a concern if the proportion of defective items is consistently lower than expected.
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carlos, the manager at a publishing house, heads the editorial team. pallavi, one of his subordinates, belongs to his in-group. this information would be significant for the proceedings of
This information is significant for the proceedings of the team's projects and decision-making processes, as in-group members typically receive more support, resources, and opportunities from their leader.
Understanding team managementCarlos, the manager at a publishing house, leads the editorial team and is responsible for overseeing the work of his subordinates.
In this context, Pallavi is a member of Carlos' in-group, which indicates that they share a close working relationship and mutual trust.
As a result, Pallavi may have a stronger influence on the team's work and outcomes due to her in-group status with Carlos. Understanding these dynamics is crucial for fostering effective collaboration and communication within the team.
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