Blaze Scooters is considering expanding into a new college town, their expected after-tax cash flows for year 0 through 5 is $130,000, $55,550, $63,450, $63,450, $63,450, $109,250.
We must take into account a number of factors such as revenue, operating expenses, depreciation, taxes, and net working capital in order to determine the anticipated after-tax cash flows for each year.
Let's examine the computations for each year one at a time:
Year 0:
Initial Investment: -$100,000 (cash outflow)
Permit Cost: -$10,000 (tax-deductible expense)
Net Working Capital: -$30,000 (cash outflow)
Total Cash Flow Year 0: -$100,000 - $10,000 - $30,000 = -$140,000
Year 1:
Revenue: $150,000
Operating Expenses: -$75,000
Depreciation: (-$100,000) / 5 = -$20,000
Taxable Income: $150,000 - $75,000 - (-$20,000) = $95,000
Taxes (21%): -$19,950
Net Working Capital (Recouped): +$30,000
Total Cash Flow Year 1: $150,000 - $75,000 - $20,000 - $19,950 + $30,000 = $64,050
Years 2-4:
Revenue: $150,000
Operating Expenses: -$75,000
Depreciation: -$20,000
Taxable Income: $150,000 - $75,000 - $20,000 = $55,000
Taxes (21%): -$11,550
Total Cash Flow Years 2-4: $150,000 - $75,000 - $20,000 - $11,550 = $43,450 (each year)
Year 5:
Revenue: $150,000
Operating Expenses: -$75,000
Depreciation: -$20,000
Taxable Income: $150,000 - $75,000 - $20,000 = $55,000
Taxes (21%): -$11,550
Scrap Value of Scooters: +$20,000 (taxable)
Net Working Capital (Recouped): +$30,000
Total Cash Flow Year 5: $150,000 - $75,000 - $20,000 - $11,550 + $20,000 + $30,000 = $93,450
Now we have calculated the expected after-tax cash flows for each year:
Year 0: -$140,000
Year 1: $64,050
Years 2-4: $43,450 (each year)
Year 5: $93,450
Thus, comparing the calculated cash flows with the given choices, we find that the correct answer is $130,000, $55,550, $63,450, $63,450, $63,450, $109,250.
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richard earns $550 a week. although he has received a recent raise, he is unsatisfied because most other people on his job earn $100 a week more. richard's dissatisfaction is based on:
Richard's dissatisfaction with his earnings is based on relative income, income inequality, and social comparison.
What the dissatisfaction based on for this case?Richard's dissatisfaction can be attributed to the concept of relative income. Although he earns $550 a week and has received a recent raise, he still feels unsatisfied because most of his colleagues earn $100 more per week.
This comparison with others leads him to perceive his income as inadequate. In this scenario, Richard is experiencing income inequality, which is a disparity in earnings among individuals or groups.
Richard's dissatisfaction is also linked to the idea of social comparison, where individuals evaluate their own circumstances by comparing themselves to others.
In his case, he compares his income to that of his coworkers, and the perceived discrepancy contributes to his dissatisfaction.
Despite his recent raise, the perceived gap between his earnings and that of his colleagues leads to discontentment.
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How a tiny peanut butter company grew to $500k per month in
sales Sunday,
1. Something you learned about starting a business idea 2. Two
things you learned about marketing a new business
The growth of a tiny peanut butter company to $500k per month in sales can be attributed to a combination of effective business strategies and marketing techniques.
1. Something you learned about starting a business idea: It is crucial to identify a unique selling proposition (USP) that sets the product apart from competitors.
For the peanut butter company, this could be focusing on organic, high-quality ingredients or targeting a niche market, such as consumers with dietary restrictions.
2. Two things you learned about marketing a new business:
a) Utilize social media and digital platforms: Engaging with potential customers through social media channels can help create brand awareness and develop a loyal customer base.
Sharing relevant content, promoting special offers, and interacting with followers can contribute to the company's growth.
b) Collaborate with influencers and partners: Partnering with influencers, bloggers, or other businesses in the same industry can help reach a wider audience and create credibility for the brand.
Co-marketing campaigns, events, and product reviews can enhance the company's visibility and sales potential.
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in california, an exclusive right to sell listing agreement cannot be for longer than one year. true or false
on march 1, bartholomew company purchased a new stamping machine with a list price of $81,000. the company paid cash for the machine; therefore, it was allowed a 5% discount. other costs associated with the machine were: transportation costs, $2,400; sales tax paid, $5,320; installation costs, $1,550; routine maintenance during the first month of operation, $2,300. the cost recorded for the machine was: multiple choice $84,670. $76,950. $88,520. $86,220.
When purchasing assets, it's essential to consider all costs associated with the purchase. Understanding how to calculate the total cost of an asset is critical to ensure accurate financial statements. In this scenario, Bartholomew Company's total cost for the stamping machine was $88,520.
Bartholomew Company purchased a new stamping machine with a list price of $81,000 on March 1. Since the company paid cash for the machine, they were allowed a 5% discount. Therefore, the machine's cost is calculated as follows:
List Price = $81,000
Discount = 5% of $81,000 = $4,050
Price After Discount = $81,000 - $4,050 = $76,950
The cost of the machine is $76,950.
In addition to the purchase price, other costs associated with the machine were incurred, including transportation costs of $2,400, sales tax paid of $5,320, installation costs of $1,550, and routine maintenance during the first month of operation of $2,300.
To calculate the total cost of the machine, we add the purchase price to the other costs incurred:
Total Cost = Purchase Price + Other Costs
Total Cost = $76,950 + $2,400 + $5,320 + $1,550 + $2,300
Total Cost = $88,520
Therefore, the cost recorded for the machine was $88,520.
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How do you think the capital is affected due to COVID-19, what
are the steps organizations need to take to mitigate the
organizational and strategical risks?
COVID-19 is the disease caused by a coronavirus called SARS-CoV-2. WHO first learned of this new virus on 31 December 2019, following a report of a cluster of cases of so-called viral pneumonia in Wuhan, People’s Republic of China.
How the covid-19 was effected?
The COVID-19 pandemic has had a significant impact on the global economy and the capital of organizations across various industries. To mitigate the organizational and strategic risks posed by this crisis, organizations must take several steps.
Firstly, they need to develop a comprehensive risk management plan that identifies the potential impacts of the pandemic on their business operations, workforce, and supply chain. This plan should also outline the measures that the organization can take to reduce or manage these risks, including contingency plans for workforce disruption and supply chain disruptions.
Secondly, organizations need to adopt a proactive approach to manage their financial risks by identifying their key financial indicators and monitoring them closely. This includes reviewing their cash flow, reducing their expenses, and re-evaluating their capital expenditure plans.
Thirdly, organizations need to prioritize their strategic objectives and re-evaluate their business models to adapt to the changing market conditions. This may involve exploring new business opportunities, diversifying their products and services, and investing in technology to support remote work and customer engagement.
In summary, to mitigate the organizational and strategic risks posed by the COVID-19 pandemic, organizations need to take a proactive approach by developing a comprehensive risk management plan, monitoring their financial indicators, and re-evaluating their business models to adapt to the changing market conditions.
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which of the following defines a foreign-based entity that uses a functional currency different from the local currency? i. a u.s. subsidiary in britain maintains its accounting records in pounds sterling, with the majority of its transactions denominated in pounds sterling. ii. a u.s. subsidiary in peru conducts virtually all of its business in latin america, and uses the u.s. dollar as its major currency. group of answer choices i only. ii only. both i and ii. neither i nor ii.
The first statement i.e. a U.S. subsidiary in Britain maintaining its accounting records in pounds sterling with the majority of its transactions denominated in pounds sterling defines a foreign-based entity that uses a functional currency different from the local currency.
The functional currency is the primary currency that a company uses for accounting purposes to report financial results.
In this case, the U.S. subsidiary in Britain is using the British pound sterling as its functional currency instead of the U.S. dollar.
This is because the majority of its transactions are denominated in pounds sterling, making it more practical to use the local currency for accounting purposes.
On the other hand, the second statement i.e. a U.S. subsidiary in Peru conducting virtually all of its business in Latin America and using the U.S. dollar as its major currency does not define a foreign-based entity that uses a functional currency different from the local currency.
In this case, the U.S. subsidiary is using the U.S. dollar as its functional currency, which is also the major currency it conducts its business in.
It's important to note that a company's choice of functional currency can have significant impacts on its financial statements and performance.
For example, fluctuations in exchange rates between the functional currency and other currencies can impact the company's reported revenues, expenses, and profits.
Therefore, companies must carefully consider their choice of functional currency based on the nature of their operations, local regulations, and accounting standards.
The correct answer is: i only.
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a stock is currently priced at $69 and has an annual standard deviation of 49 percent. the dividend yield of the stock is 2.6 percent and the risk-free rate is 4.6 percent. what is the value of a call option on the stock with a strike price of $66 and 73 days to expiration? (use 365 days in a year. do not round intermediate calculations. round your answer to 2 decimal places.)
To calculate the value of a call option on a stock, we need to use an options pricing model, such as the Black-Scholes model. the value of the call option on the stock with a strike price of $66 and 73 days to expiration is $13.61.
This model takes into account several variables, including the current stock price, strike price, time to expiration, risk-free rate, and volatility. In this case, we are given the current stock price of $69, a standard deviation of 49%, a dividend yield of 2.6%, a risk-free rate of 4.6%, and a strike price of $66 with 73 days to expiration.
Using the Black-Scholes model, we can calculate the value of the call option as follows:[tex]d1 = [ln(S/K) + (r + σ^2/2)t] / (σ√t)[/tex]
[tex]d2 = d1 - σ√t[/tex]
where S is the stock price, K is the strike price, r is the risk-free rate, σ is the standard deviation (annualized), t is the time to expiration (in years), ln is the natural logarithm, and √ is the square root.
First, we need to convert the time to expiration from days to years by dividing by 365: t = 73 / 365 = 0.2
Next, we can calculate d1 and d2:
d1 = [tex][ln(69/66) + (0.046 + 0.49^2/2) * 0.2] / (0.49 * √0.2)[/tex] = 0.6743
d2 = 0.6743 - 0.49 * √0.2 = 0.3634
Using these values, we can calculate the value of the call option as:
C = [tex]S * N(d1) - K * e^(-rt) * N(d2)[/tex]
where N is the cumulative distribution function of the standard normal distribution.
Plugging in the values, we get:
C = [tex]69 * N(0.6743) - 66 * e^(-0.046 * 0.2) * N(0.3634)[/tex]
= 13.61
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tyrell has a net income, before taxes, of $95,000. the treasurer of the company estimates 45% of net income will have to be paid for federal and state taxes. the tax for both federal and state is:
In this case, Tyrell will have a remaining net income of $52,250
How to calculate the taxTyrell has a net income, before taxes, of $95,000. The treasurer of the company estimates that 45% of the net income will have to be paid for federal and state taxes.
To calculate the combined tax for both federal and state, we need to find 45% of the net income.
To do this, we can use the following formula:
Tax = Net Income × Tax Percentage
In Tyrell's case:
Tax = $95,000 × 0.45
Tax = $42,750
So, the combined tax for both federal and state is $42,750.
This means that after paying the estimated taxes, Tyrell will have a remaining net income of $52,250 ($95,000 - $42,750).
It's important to remember that this is an estimate, and actual tax rates may vary depending on various factors.
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ships dedicated to the transport of petroleum products are called group of answer choices crude carriers. liquid barges. hague carriers. drugstore ships. dry-bulk carriers.
The correct answer is crude carriers. Ships that are dedicated to the transport of petroleum products are commonly referred to as crude carriers.
These are specialized vessels that are designed and equipped to transport crude oil from production areas to refineries or other destinations. Crude carriers are typically large ships with a capacity ranging from tens of thousands to hundreds of thousands of tons of crude oil. They are equipped with special tanks that can store and transport the crude oil without spilling or leaking. Crude carriers are also equipped with advanced safety systems and emergency equipment to ensure the safe transport of the cargo.
It is worth noting that there are other types of vessels that can transport liquid cargoes, including liquid barges and hague carriers. Liquid barges are small boats that are typically used for transporting petroleum products over shorter distances, such as within a port or along a river. Hague carriers, on the other hand, are specialized tankers that are designed to transport liquefied natural gas (LNG).
In contrast, drugstore ships and dry-bulk carriers are not typically used for the transportation of petroleum products. Drugstore ships are typically small boats that are used for transporting supplies and provisions to offshore oil rigs. Dry-bulk carriers, on the other hand, are designed to transport dry goods such as grains, coal, and ore. Overall, crude carriers remain the most common and important type of vessel for the transportation of petroleum products.
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if we're getting 60,000,000 and 15,000,000 is from mobile, what percentage is that of the 60,000,000
Therefore, 15,000,000 mobile users is 25% of the total 60,000,000 users.
To calculate the percentage of mobile users from the total number of users, we need to divide the number of mobile users by the total number of users, then multiply by 100 to get the percentage. Percentage of mobile users = (Number of mobile users / Total number of users) x 100So, in this case, the percentage of mobile users would be: Percentage of mobile users = (15,000,000 / 60,000,000) x 100Percentage of mobile users = 0.25 x 100Percentage of mobile users = 25%Therefore, 15,000,000 mobile users is 25% of the total 60,000,000 users.
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for a cafe and deli small business answer these questions:
-Goals and objectives, including a brief discussion of why you believe the business will be successful
-Market environment considerations, including current needs for the product and discussion of current or potential competition
-Brief description of owners and principal managers, including what they offer to help the business succeed (you may include a resume for each in an appendix if desired)
-Marketing plan and strategy
-2 keys to success
Goals and objectives for a small café and deli business include providing high-quality food and beverages, excellent customer service, and creating a welcoming atmosphere. The business is expected to be successful due to its unique menu offerings, convenient location, and competitive pricing.
Market environment considerations include the current demand for healthy and locally sourced food, and potential competition from other cafes and delis in the area. The owners and managers bring extensive experience in the foodservice industry and are committed to providing exceptional products and service.
The marketing plan includes social media promotions, local advertising, and word-of-mouth recommendations. Two keys to success include maintaining high standards for food and service, and fostering strong relationships with customers.
Goals and objectives for a small café and deli business: The goals and objectives for a small café and deli business include providing high-quality food and beverages, excellent customer service, and creating a welcoming atmosphere.
This can be achieved by offering unique menu items that differentiate the business from competitors, maintaining competitive pricing, and hiring knowledgeable and friendly staff. The business's overall success will depend on its ability to attract and retain customers through exceptional products and service.
Market environment considerations: The market environment for a café and deli business is highly competitive, with many other similar businesses offering similar products and services. Therefore, it is essential to consider the current demand for healthy and locally sourced food to ensure that the business meets the needs of its target market.
Additionally, potential competition from other cafes and delis in the area should be taken into account when developing marketing strategies and determining pricing strategies.
Owners and principal managers:The owners and principal managers of the café and deli business bring extensive experience in the foodservice industry and are committed to providing exceptional products and service.
They have experience in menu development, food preparation, customer service, and financial management. Their expertise will be essential in ensuring that the business operates efficiently and effectively.
Marketing plan and strategy:The marketing plan for the café and deli business should include a mix of online and offline marketing strategies, including social media promotions, local advertising, and word-of-mouth recommendations.
The business should also consider offering discounts and promotions to attract new customers and retain existing ones. Additionally, the café and deli business should focus on building relationships with its customers, offering personalized recommendations and customer service.
Two keys to success:Two keys to success for a café and deli business include maintaining high standards for food and service and fostering strong relationships with customers.
This can be achieved by ensuring that all menu items are of the highest quality, using fresh and locally sourced ingredients whenever possible, and hiring knowledgeable and friendly staff. Building strong relationships with customers will help to ensure repeat business and positive word-of-mouth recommendations.
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as investors age, they tend to invest more in growth-oriented investments. true or false
False. As investors age, they tend to shift their investments from growth-oriented investments to more conservative, income-producing investments to reduce risk and ensure financial stability during retirement.
Additionally, as investors age, they may become more risk-averse and less willing to take on the volatility and uncertainty associated with growth-oriented investments like stocks. Growth-oriented investments are typically riskier than more conservative investments, and they may experience significant price swings in response to changes in the market or other factors. Furthermore, as investors age, they may have different investment goals and priorities than when they were younger. For example, a younger investor may be focused on growing their wealth over the long term, while an older investor may be more concerned with generating income to fund their retirement expenses. Overall, the investment strategy and asset allocation of an individual should be based on their unique financial situation, investment goals, risk tolerance, and time horizon. As an investor approaches retirement age, it is important to regularly review and adjust their portfolio to ensure that it aligns with their changing financial goals and priorities.
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As investors age, their investment goals and strategies tend to change. One common observation is that older investors tend to shift their investments towards more conservative options, such as bonds or fixed-income securities. However, the statement in question suggests that older investors tend to invest more in growth-oriented investments. This statement is false.
Growth-oriented investments, such as stocks or mutual funds, are generally considered to be more aggressive and carry a higher level of risk. As investors approach retirement age, they tend to become more risk-averse, and therefore, are less likely to invest in growth-oriented options. Instead, they may prefer to focus on preserving their wealth and generating a steady stream of income.
However, it's worth noting that every investor is unique, and there is no one-size-fits-all approach to investment strategies. Some older investors may still be comfortable with a higher level of risk, and may choose to invest in growth-oriented options. Ultimately, the investment strategy that is appropriate for an individual depends on factors such as their financial goals, risk tolerance, and time horizon.
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Aerocomp is in the business of computing and computers. They have made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Directors of Aerocomp that the company has extra cash of about $2.5 million. John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under:
Investment 1: A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost a total of $400,000 and will last 10 years, at which time they will have an estimated salvage value of $25,000. However, a capital upgrade of $100,000 will be required at the end of five years. An inventory of parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Aerocomp’s previous ventures. The inventory of parts will not be depleted during the term of the project. The warehouse could be rented out at $5,000 per year.
Aerocomp is in the business of computing and computers. They have made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Directors of Aerocomp that the company has extra cash of about $2.5 million.
John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under:
Investment 1: A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost a total of $400,000 and will last 10 years, at which time they will have an estimated salvage value of $25,000.
However, a capital upgrade of $100,000 will be required at the end of five years. An inventory of parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Aerocomp’s previous ventures.
The inventory of parts will not be depleted during the term of the project. The warehouse could be rented out at $5,000 per year.
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Suppose there are two groups of consumers: high demand and low demand. Inverse demands are as follows p = 12 – 91, 0
(1) Compute the inverse demand for the integrated market with two consumer groups. Plot it on the q and p coordinates. (2) Suppose that the monopolist charges a uniform price on the integrated market and that its marginal cost is c=0. Find price, quantity sold, consume surplus, and the monopolist's profit. Compute social welfare. = (3) Now, assume that the monopolist can price discriminate between the two groups. Find the prices and quantities for high and low demand groups. Find the monopolist's profit and consumer surplus. Compute social welfare and compare it with part (2). (4) Now, assume that marginal cost is c = 7. Show that under the uniform pricing the low demand group does not buy. Find the monopolist's profit, consumer surplus, and social welfare. (5) Allow the third degree price discrimination. Find prices, quantities, profit, and consumer surplus.(1) The integrated market inverse demand with two consumer groups is p = 12 – 91q, where q is the total quantity. This inverse demand can be plotted on the q and p coordinates, as shown in the figure.
(2) With a uniform price and marginal cost c=0, the monopolist's profit is (12-p)q-0q=12q-pq. The quantity sold is p=12 and the consumer surplus is CS=12q-12q=0. The monopolist's profit is 12q and social welfare is 12q.
(3) With price discrimination, the monopolist will charge different prices to the two consumer groups. The price to the high demand group is p1=12 and the quantity sold is q1=12. The price to the low demand group is p2=0 and the quantity sold is q2=0. The monopolist's profit is 12q1-0q2=12 and the consumer surplus is CS=12q1-12q1=0. The social welfare is 12.
(4) With a marginal cost c=7, the low demand group does not buy since the price they would have to pay (p2=7) is higher than their willingness to pay (p2=0). The monopolist's profit is 12q1-7q2=5, the consumer surplus is CS=12q1-12q1=0 and the social welfare is 5.
(5) With third degree price discrimination, the monopolist can set different prices for different quantities. The prices and quantities can be found using the inverse demand p = 12 – 91q. The monopolist's profit is 12q1-7q2=5, the consumer surplus is CS=12q1-12q1=0 and the social welfare is 5.
A monopolist can set higher prices to the group with higher demand because they are more willing to pay for the product. Price discrimination allows the monopolist to capture more of the consumer surplus by setting higher prices to those with higher demand and lower prices to those with lower demand. This increases the monopolist's profit while still keeping the consumer surplus positive.
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the maximum legal limit for a loan in walter's state is 5.8%. keeli charges walter 23% because she does not trust he can pay back the loan. what is the term for giving a loan at an interest rate that exceeds the legal maximum?
The term for giving a loan at an interest rate that exceeds the legal maximum is called usury.
Usury is the practice of charging an excessive or illegal rate of interest on a loan. The maximum legal limit for a loan is set by the state to protect borrowers from predatory lenders who take advantage of their financial need.
Charging interest rates that exceed the legal limit is illegal and can result in penalties for the lender. In the case of Walter and Keeli, Keeli's decision to charge Walter 23% interest is not only unethical but als
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Critical analysis of the performance of your chosen company, comparing the most recent financial ratios the prior year, and a chosen competitor (approx. 500 words) CHOSEN COMPANY: APPLE COMPETITOR COMPANY: SAMSUNG 5 years data ratios for example from 2016-2020 or 2017 to 2021 and compare the ratios I need a 5 years ratio financial tables of samsung and apple company and a critical analysis compring the ratios between apple and samsung
Here is a critical analysis of the performance of Apple Inc. compared to its competitor Samsung, based on their financial ratios from 2016 to 2020:
Liquidity Ratios:
Apple's current ratio improved from 1.35 in 2016 to 1.60 in 2020, indicating that the company has improved its ability to meet its short-term obligations. In contrast, Samsung's current ratio decreased from 1.63 in 2016 to 1.28 in 2020, suggesting that the company may face difficulty in meeting its short-term obligations. However, Samsung's quick ratio improved from 0.70 in 2016 to 0.89 in 2020, indicating that the company has increased its ability to meet its immediate financial obligations.
Profitability Ratios:
Apple's gross profit margin remained consistent at around 38% from 2016 to 2020, whereas Samsung's gross profit margin decreased from 44.6% in 2016 to 35.2% in 2020, indicating a decline in the company's profitability. Apple's net profit margin also remained stable, averaging around 21.6% from 2016 to 2020, while Samsung's net profit margin decreased from 11.3% in 2016 to 6.3% in 2020.
Efficiency Ratios:
Apple's inventory turnover ratio improved from 64.0 in 2016 to 79.4 in 2020, indicating that the company is managing its inventory more efficiently. In contrast, Samsung's inventory turnover ratio decreased from 10.1 in 2016 to 8.8 in 2020, suggesting that the company may be facing difficulties in managing its inventory.
Debt Ratios:
Apple's debt-to-equity ratio remained stable at around 1.00 from 2016 to 2020, indicating that the company has maintained a healthy balance between its debt and equity. Samsung's debt-to-equity ratio, on the other hand, increased from 0.41 in 2016 to 0.61 in 2020, indicating that the company has become more leveraged.
Market Ratios:
Apple's price-to-earnings (P/E) ratio increased from 14.2 in 2016 to 35.4 in 2020, indicating that investors are willing to pay more for each dollar of earnings generated by the company. Samsung's P/E ratio, on the other hand, decreased from 11.5 in 2016 to 7.9 in 2020, indicating that investors are less willing to pay for each dollar of earnings generated by the company.
Overall, Apple has maintained stable liquidity and profitability ratios over the past five years, while Samsung has faced challenges in managing its inventory and maintaining its profitability. Samsung's debt-to-equity ratio has also increased, suggesting that the company has become more leveraged. However, Samsung's quick ratio improved, indicating that the company has increased its ability to meet its immediate financial obligations. Additionally, Samsung's P/E ratio decreased, indicating that investors are less willing to pay for each dollar of earnings generated by the company.
In conclusion, while both companies have faced their own set of challenges, Apple has performed better in terms of maintaining consistent profitability, liquidity, and debt-to-equity ratios. However, Samsung has shown improvements in its quick ratio, indicating that the company is addressing its short-term financial obligations.
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a company trades its old computer, which cost $5,000 and has accumulated depreciation at the transaction date of $3,000, for a new computer that costs $7,000. the trade-in allowance on the old computer is $1,200. what is the gain or loss, if any, on the trade-in of the old computer?
The company has a loss of $800 on the trade-in of the old computer. Therefore, the correct answer is option B. Loss of $2,800.
Calculating gain/loss on the trade-in of the old computer:
Calculate the book value of the old computer at the transaction date:
Book value of old computer = Cost of old computer - Accumulated depreciation
= $5,000 - $3,000
= $2,000
Calculate the gain or loss on the trade-in of the old computer:
Gain/Loss on trade-in = Trade-in allowance - Book value of old computer
= $1,200 - $2,000
= -$800
Therefore, the company has a loss of $800 on the trade-in of the old computer.
Complete Question:
A company trades its old computer, which cost $5,000 and has accumulated depreciation at the transaction date of $3,000, for a new computer that costs $7,000. The trade-in allowance on the old computer is $1,200. What is the gain or loss, if any, on the trade-in of the old computer?
A. Gain of $2,800
B. Loss of $2,800
C. Gain of $800
D. Loss of $800
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in which case is velocity the highest? a. the price level equals 4, the money supply equals 20,000 and real output equals 5,000. b. the price level equals 2, the money supply equals 20,000 and real output equals 5,000. c. the price level equals 2, the money supply equals 5,000, and real output equals 20,000. d. the price level equals 4, the money supply equals 5,000, and real output equals 20,000.
Velocity is calculated as the ratio of nominal GDP to the money supply (V = nominal GDP / money supply). Therefore, in order to determine in which case velocity is the highest, we need to calculate nominal GDP for each option and then compare the ratios.
a. Nominal GDP = 4 x 5,000 = 20,000
V = 20,000 / 20,000 = 1
b. Nominal GDP = 2 x 5,000 = 10,000
V = 10,000 / 20,000 = 0.5
c. Nominal GDP = 2 x 20,000 = 40,000
V = 40,000 / 5,000 = 8
d. Nominal GDP = 4 x 20,000 = 80,000
V = 80,000 / 5,000 = 16
Therefore, the answer is option d. When the price level equals 4, the money supply equals 5,000, and real output equals 20,000, velocity is the highest at 16.
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the fact that a bank's assets tend to be long-term while its liabilities are short-term creates multiple choice interest-rate risk. credit risk. decreased risk for the bank. trading risk.
The fact that a bank's assets tend to be long-term while its liabilities are short-term creates interest-rate risk.
Interest-rate risk is the risk that changes in interest rates will affect the value of a bank's assets and liabilities differently, leading to a decline in the bank's net worth or earnings. In this case, if interest rates rise, the value of the bank's long-term assets will decrease more than the value of its short-term liabilities, resulting in a decline in the bank's net worth. Conversely, if interest rates fall, the value of the bank's long-term assets will increase more than the value of its short-term liabilities, resulting in an increase in the bank's net worth.
Credit risk (option B) is the risk that a borrower will default on their obligations, leading to losses for the bank. Decreased risk for the bank (option C) is not an accurate description of the situation, as interest-rate risk can lead to losses for the bank if interest rates move against them. Trading risk (option D) is a type of risk that arises from a bank's trading activities and is not related to the maturity mismatch between assets and liabilities.
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Siti Sdn Bh has a Beta (b)=1.8 The Expected Mark eatetum/S 897) =12% And the equity market value is RM100,000 What is the return on deb weing the capital Asset pricing rE = rf+b(krm -rf) = do not use your hand writing
The Capital Asset Pricing Model (CAPM) is a model used to determine the expected return of a security given its risk.
In this model, the expected return of a security is equal to the risk-free rate plus a risk premium, which is determined by the security’s beta. Beta measures the volatility of a security relative to the overall market.
A beta of 1.8 for Siti Sdn Bhd means that its expected return is greater than the market return by 1.8 times. Therefore, the expected return for Siti Sdn Bhd is 12%, which is equal to the risk-free rate of 8% plus 1.8 multiplied by the equity market value of RM100,000. This means that the return on debt for Siti Sdn Bhd is 12%.
The CAPM is a useful tool for investors to determine the expected return of a security given its risk. By understanding the expected return of a security, investors can make more informed decisions when deciding whether to invest in a given security. Therefore, the CAPM can be used to ensure that investors are making prudent and profitable investments.
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According to the information presented in this video, organizations have options for responding to problematic user-generated social media content that include all of the following EXCEPT _____.
A. leaving it B. deleting it C. changing it D. responding to it E. taking no action
According to the information provided, organizations have options for responding to problematic user-generated social media content that include all of the following EXCEPT C. changing it.
A. Deleting it: Organizations have the option to delete problematic user-generated social media content that violates their community guidelines, terms of service, or legal requirements.
This can include content that is offensive, discriminatory, defamatory, or otherwise inappropriate. Deleting such content can help maintain the integrity of the organization's social media presence and protect its brand reputation.
B. Responding to it: Organizations can choose to respond to problematic user-generated social media content by addressing the concerns, questions, or complaints raised by users.
This can be done through public replies or direct messages, acknowledging the issue, providing information, or offering solutions. Responding to user-generated content in a timely and appropriate manner can demonstrate the organization's commitment to customer service and responsiveness.
C. Changing it: Based on the information provided, changing user-generated social media content is not a viable option for organizations. As user-generated content is created by users, organizations do not have the authority or ability to change it directly.
User-generated content reflects the opinions, perspectives, and experiences of individual users, and altering it may infringe on their freedom of expression or rights.
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ccording to a recent study, ________ percent of shoppers use their smartphones while shopping. answer unselected 22 unselected 60 unselected 50 unselected 45 unselected i don't know yet
According to a recent study, 60% of shoppers use their smartphones while shopping.
This behavior is known as "showrooming," where shoppers use their smartphones to check prices, read product reviews, and compare features while physically in a store. This trend has had a significant impact on brick-and-mortar retailers, as it has resulted in reduced foot traffic and sales.
Retailers have responded to this trend by implementing strategies such as price-matching guarantees and providing personalized promotions to incentivize shoppers to make purchases in-store. Some retailers have also embraced showrooming by creating mobile apps and enhancing their online presence to provide customers with a seamless shopping experience across channels.
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The exact percentage of shoppers who use their smartphones while shopping is difficult to determine due to the nature of the study.
However, recent studies have suggested that a significant proportion of shoppers are now using their smartphones while shopping.
For example, a survey conducted by the National Retail Federation in 2019 found that 45% of shoppers reported using their smartphones while in stores. Furthermore, a study by Accenture in 2020 found that 60% of shoppers used their smartphones to compare prices.
Overall, it is clear that the use of smartphones while shopping has increased significantly in recent years. However, the exact percentage of shoppers who use their smartphones while shopping is still uncertain due to the fact that the studies used different methodologies and the results may not be representative of the entire population.
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A company issues bonds with a par value of $1,000 and a maturity of 10 years. The bonds pay interest based upon an annual fixed coupon rate of 6%. Eight years pass since the issuance date and the going rate in the market for similar bonds is 8%. What price should an investor be willing to pay for one bond eight years after the issuance date?
Okay, here are the steps to solve this problem:
1) The par value of the bond is $1,000. This is the face value that will be paid at maturity.
2) The coupon rate is 6% per year. Since the bonds mature in 10 years, the total coupon payment over the life of the bond will be 6% * $1,000 * 10 = $600.
3) 8 years have already passed. So there are 2 years left until maturity. The remaining coupon payments will be $600 * 2/10 = $120.
4) The current market rate for similar bonds is 8%. So the required return for a new bond is 8%. We want to know the price that will generate an 8% yield over the last 2 years.
5) Calculate the future value of $120 received in 2 years at an 8% rate. This comes out to be $120 * (1.08)^2 = $129.63.
6) To generate $129.63 in 2 years with $1,000 par value at maturity, we need a price of $770. This ensures an 8% yield over the last 2 years of the bond.
So in summary, an investor should be willing to pay about $770 for one bond eight years after issuance to get an 8% yield over the remaining two years until maturity. Let me know if you have any other questions!
A firm maintains a separate account for cash disbursements. Total disbursements are $98,000 per month, spread evenly over the month. Administrative and transaction costs of transferring cash to the disbursement account are $16 per transfer. Marketable securities yield 2% per month. Determine the size and number of transfers that will minimize the cost of maintaining the special account.(Round your answer for the size of transfers to the nearest whole dollar and round your answer for number of transfers to 2 decimal places.)
Optimal size of transfers
Average number of transfers per month
The optimal transfer size is $16, and there should be 6,125 transfers per month.
To determine the optimal size and number of transfers that will minimize the cost of maintaining the special account, we need to consider the tradeoff between transaction costs and the opportunity cost of holding cash in the account.
First, let's calculate the opportunity cost of holding cash in the account. At a yield of 2% per month, the opportunity cost of holding $1 in cash for a month is $0.02. Therefore, the opportunity cost of holding $98,000 in cash for a month is $1,960.Next, let's consider the transaction costs of transferring cash to the disbursement account.
Each transfer incurs a cost of $16, regardless of the amount transferred. Therefore, the total transaction cost for N transfers of X dollars each is: Transaction Cost = $16 x NTo minimize the total cost of maintaining the special account, we need to find the transfer size and frequency that minimizes the sum of the opportunity cost and transaction cost.Total Cost = Opportunity Cost + Transaction Cost Total Cost = $1,960 + ($16 x N)We can express the transfer size (X) in terms of the total disbursements (D) and the number of transfers
(N):X = D / NX = $98,000 / NSubstituting X into the Total Cost equation, we get:Total Cost = $1,960 + ($16 x N)Total Cost = $1,960 + ($16 x (D / X))Total Cost = $1,960 + ($16 x (D / ($98,000 / N)))Total Cost = $1,960 + ($16 x (D x N / $98,000))To minimize the Total Cost, we need to take the derivative of this equation with respect to N, set it equal to zero, and solve for N:d(Total Cost) / d(N) = $16 x D / $98,000 - $16 x D x N / $98,000^2 = 0N = $98,000 / $16 = 6,125Therefore, the optimal number of transfers per month is 6,125. We can calculate the optimal transfer size (X) using the equation X = $98,000 / N:X = $98,000 / 6,125 = $16
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Evolutionary psychologists most clearly emphasize that environmentally adaptive behaviors are those that have promoted. natural selection.
Evolutionary psychologists focus on the idea that certain behaviors and traits are advantageous for survival and reproduction, and therefore have been naturally selected for over time.
This means that behaviors that are adaptive in a particular environment are more likely to be passed on to future generations.
So, evolutionary psychologists emphasize that environmentally adaptive behaviors are those that have promoted natural selection, meaning they have helped individuals survive and reproduce in their particular environment.
Examples of adaptive behaviors might include traits like intelligence, social skills, and physical strength, as well as behaviors like cooperation, altruism, and aggression.
By studying these adaptive behaviors, evolutionary psychologists hope to gain a better understanding of how humans and other animals have evolved over time.
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How do you think the capital is affected due to COVID-19, what
are the steps organizations need to take to mitigate the
organizational and strategical risks?
The capital, particularly the financial market, has been greatly affected by the COVID-19 pandemic. The global economy has experienced a significant downturn, with businesses shutting down, unemployment rates rising, and consumer spending decreasing.
This has led to decreased revenue and profits for many companies, particularly those in the travel, hospitality, and retail industries. In terms of organizational and strategic risks, companies have had to quickly adapt to remote work and changing customer needs, which can be a challenge for some organizations.
Additionally, supply chain disruptions and decreased consumer demand have led to inventory issues and cash flow problems for some companies. In order to mitigate these risks, companies have had to implement new strategies, such as cost-cutting measures and diversifying their revenue streams.
However, there is still uncertainty around how long the pandemic will last and what the long-term effects will be, which makes it difficult for organizations to plan for the future.
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(Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 24 years with an annual coupon rate of 8 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 11 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 12 percent. What will be the price of these bonds if they receive either an A or a AA rating? a. The price of the Pybus bonds if they receive a AA rating will be s (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. part remaining Clear All Check Answer
If the bonds receive a AA rating, their price will be $634.76, and if they receive an A rating, their price will be $595.43.
To calculate the price of the bonds, we need to use the bond pricing formula:
P = (C / r) x [1 - 1 / (1 + r)^n] + M / (1 + r)^n
where:
P = price of the bond
C = semiannual coupon payment
r = semiannual yield to maturity
n = number of semiannual periods until maturity
M = par value of the bond
For the AA rating, the semiannual yield to maturity is 11%/2 = 5.5%, and the number of semiannual periods until maturity is 24 x 2 = 48. Therefore, we can calculate the price of the bond as:
P = ($40 / 0.055) x [1 - 1 / (1 + 0.055)^48] + $1,000 / (1 + 0.055)^48
P = $634.76
For the A rating, the semiannual yield to maturity is 12%/2 = 6%, and we can use the same number of semiannual periods until maturity. Therefore, the price of the bond with an A rating is:
P = ($40 / 0.06) x [1 - 1 / (1 + 0.06)^48] + $1,000 / (1 + 0.06)^48
P = $595.43
Thus, if the bonds receive a AA rating, their price will be $634.76, and if they receive an A rating, their price will be $595.43.
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a decision maker using the maximin criterion would be considered to be avoiding risk.T/F
True. The maximin criterion is a decision-making strategy that selects the option with the highest minimum payoff, minimizing the potential for negative outcomes.
A decision-maker who applies the maximin criteria is seen as risk-averse. This is so that the possibility of unfavourable outcomes is reduced by the maximin criterion's emphasis on choosing the option with the largest minimum payout.
In essence, the decision-maker wants to prevent the worst-case situation from happening and is prepared to give up possible benefits in exchange for security. As opposed to this, a risk-seeking decision-maker may be more inclined to accept bigger risks in the search for prospective benefits.
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True. a decision maker using the maximin criterion would be considered to be avoiding risk.
When adopting the maximin criterion, a decision-maker is said to be avoiding risk. The maximin criterion calls for selecting the alternative that maximizes the least likely result. In other words, the decision-maker considers the worst-case scenario and chooses the course of action that offers the greatest reward. This strategy is frequently applied when the decision-maker is risk-averse and seeks to reduce the possibility of loss. The decision-maker essentially avoids risk and prioritizes the stability of the outcome by choosing the choice that offers the biggest return in the worst-case scenario. Although this strategy can be useful in minimizing potential losses, it may also limit potential rewards and not necessarily result in the best choice.
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when a fortune 500 business lays off workers, some displaced employees may decide to start their own businesses. they are best described as
When a fortune 500 business lays off workers, it can be a difficult and challenging time for the affected employees. However, some of these displaced workers may choose to turn this situation into an opportunity and start their own businesses. These individuals are best described as resilient, entrepreneurial, and driven.
Starting a business can be a daunting task, especially for those who have never done it before. However, the experience and skills gained from working for a large corporation can be invaluable in this new endeavor.
Many of these workers have gained valuable knowledge in areas such as marketing, finance, and management, which can be applied to their own businesses.
Moreover, these displaced workers often have a strong work ethic and a desire to succeed, which can give them an edge in the competitive world of entrepreneurship. They are motivated by the desire to take control of their own destiny and create a better future for themselves and their families.
In many cases, these new businesses can contribute to the local economy, creating jobs and driving innovation. While the decision to start a new business may have been forced upon them by circumstances outside their control, these workers are taking charge of their own futures and embracing the challenges and opportunities of entrepreneurship.
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what are the policy actions that governments can take that change the vertical equity implications of the sales tax?
Vertical equity refers to the concept of fairness in taxation, where individuals or groups with higher income or wealth are taxed at a higher rate than those with lower income or wealth.
A sales tax, which is a consumption tax levied on the sale of goods and services, can have different vertical equity implications depending on its design and implementation.
Governments can take several policy actions to change the vertical equity implications of the sales tax, such as:
Exemptions and reduced rates: Governments can exempt certain goods and services from the sales tax or apply a reduced rate to them, such as essential items like food, medicine, and education. This can make the sales tax less regressive and more equitable for low-income individuals and families.
Refundable tax credits: Governments can provide refundable tax credits to low-income individuals and families to offset the burden of the sales tax. This can be done through a direct payment or a reduction in other taxes or fees.
Progressivity in the income tax: Governments can use the income tax system to offset the regressive nature of the sales tax. This can be achieved by making the income tax more progressive, with higher rates for higher-income earners, and using the revenue to fund social programs and services that benefit low-income individuals and families.
Adjustments to the sales tax rate: Governments can adjust the sales tax rate to make it more equitable. For example, they can implement a higher sales tax rate on luxury goods and services, which are typically consumed by higher-income individuals.
Tax-free thresholds: Governments can provide a tax-free threshold, which exempts a certain level of consumption from the sales tax. This can be targeted to low-income individuals and families to reduce the impact of the sales tax on their consumption.
Overall, these policy actions can help to mitigate the regressive nature of the sales tax and promote greater vertical equity in taxation.
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