a.The value of a stock is (1.76 * 1.22) / 0a. Since the denominator is 0, the value of the stock is undefined. b.you should not purchase this stock, as its value cannot be determined using the provided information and the required rate of return.
To calculate the value of the stock with a required rate of return of 18 percent, we can use the dividend discount model formula:
Value of stock = (Dividend per share * (1 + Retention rate)) / (Required rate of return - Return on equity)
Given the information provided:
Dividend per share = $1.76
Retention rate = 22% or 0.22
Required rate of return = 18% or 0.18
Return on equity = 18% or 0.18
Now, plug these values into the formula:
Value of stock = (1.76 * (1 + 0.22)) / (0.18 - 0.18)
Value of stock = (1.76 * 1.22) / 0
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Question 3 O out of 0.5 points
You are planning to travel from Jeddah, Saudi Arabia to Paris, France. You leave Jeddah with 14.4 thousands of SAR in your wallet. Wanting to exchange all of these for pounds, you obtain the following quotes. Spot rate on the riyal/euro cross rate 4.4687 SAR/EUR Spot rate on the euro/dollar cross rate: 0.2243 EUR/SAR How many thousands of euros will you obtain for your riyals?
Question 4 O out of 0.5 points Michael just started as an analyst for Credit Suisse in Geneva, Switzerland. He has a deposit of 481.2 thousands of dollars. He receives the following quotes for Swiss francs against the dollar. The Spot exchange rate is as follows: Bid CHF/USD 1.2574 Ask CHF/USD 1.2583 How many thousands of Swiss francs can he receive against his dollars?
Answer to Question 3: You will obtain 3.219 thousands of euros for your riyals.
Answer to Question 4: Michael can receive 605.977 thousands of Swiss francs for his dollars.
Question3. To calculate the amount of euros you'll obtain, follow these steps:
1. You have 14.4 thousands of SAR.
2. Divide the amount of SAR by the spot rate on the riyal/euro cross rate: 14.4 / 4.4687 = 3.219 thousands of euros.
Question4: To calculate the amount of Swiss francs Michael will receive, follow these steps:
1. Michael has 481.2 thousands of dollars.
2. Multiply the amount of dollars by the bid CHF/USD exchange rate: 481.2 * 1.2574 = 605.977 thousands of Swiss francs.
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Two currency dealers gave me the following rates.
Dealer A: 0.80 pounds/euro
1.50 dollars/pound
Dealer B: 0.85 euro/dollar
I can borrow up to 5 million British pounds. If I borrow the full amount (5 million
pounds) and first convert them into euro, then convert my euros into dollar, and then
finally convert my dollars back into pounds, will I make money
Yes, you can make money through this process, known as arbitrage. Arbitrage allows taking advantage of the different exchange rates offered by two dealers to gain profit by a sequence of currency conversions.
Here's a breakdown of the transactions:
Borrow 5 million British pounds.Convert pounds to euros using Dealer A's rate: 5,000,000 pounds x 0.80 pounds/euro = 4,000,000 euros.Convert euros to dollars using Dealer B's rate: 4,000,000 euros x 0.85 euro/dollar = 3,400,000 dollars.Convert dollars back to pounds using Dealer A's rate: 3,400,000 dollars / 1.50 dollars/pound = 2,266,667 pounds.After completing these transactions, you will have gained 266,667 pounds (2,266,667 - 5,000,000). This profit is made possible through exploiting the differences in exchange rates offered by the two currency dealers.
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a __________ committee of the governing body is responsible for developing corporate auditing policies and procedures.
Audit.An audit committee is a standing committee of the governing body of an organization, typically a corporation or nonprofit, that is responsible for overseeing the organization's financial reporting and auditing processes.
The audit committee is responsible for developing corporate auditing policies and procedures, selecting the external auditors, and ensuring that the audit process is conducted in an effective and independent manner.
The audit committee plays an important role in maintaining the integrity of an organization's financial reporting and ensuring that it is in compliance with applicable laws and regulations. The committee also provides oversight of the organization's internal controls and risk management processes, and may be involved in reviewing and approving significant financial transactions.
In addition to its oversight responsibilities, the audit committee may also provide advice and guidance to management on financial and accounting issues, and may serve as a liaison between management, the external auditors, and the governing body.
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A Audit Committee is a committee of the governing body responsible for developing corporate auditing policies and procedures. This committee is typically composed of members of the board of directors and senior executives from the organization.
The Audit Committee is responsible for reviewing the company's financial statements and internal controls, monitoring the quality and effectiveness of internal and external auditing, and overseeing the appointment and removal of independent auditors.
The primary role of the Audit Committee is to ensure that the organization is adhering to all applicable laws and regulations, as well as maintaining a high level of financial integrity.
This includes periodically reviewing the company's internal controls for accuracy, reliability, and compliance with applicable laws and regulations.
Additionally, the Audit Committee typically ensures that the organization's internal and external auditing processes are conducted in accordance with accepted auditing standards.
The Audit Committee is also responsible for reviewing the organization's financial statements and any related reports or disclosures. This can include reviewing and approving any changes to the company's accounting policies and practices.
Finally, the Audit Committee is responsible for overseeing the selection, appointment, and removal of independent auditors. This is to ensure that the organization is in compliance with all applicable laws and regulations, and that the independent auditors are conducting their work in an independent and impartial manner.
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in organizations where projects are managed within a functional organization, the team member's area manager, not the project manager, is responsible for assessing performance. question 36 options: true false
The statement in organizations where projects are managed within a functional organization, the team member's area manager, not the project manager, is responsible for assessing performance"" is a true statement. This means that in a functional organization, the project manager may not have direct authority over the team members and may not be responsible for evaluating their performance. Instead, the area manager is responsible for assessing team members' performance and providing feedback to the project manager.
This can be both an advantage and a disadvantage for project managers. On the one hand, it allows them to focus on managing the project itself, rather than getting bogged down in evaluating individual team members. On the other hand, it can make it more difficult to ensure consistent performance across the team and may require more coordination between the project manager and area manager to ensure that everyone is working towards the same goals.
Overall, understanding the organizational structure of a company and who is responsible for assessing team member performance is important for effective project management.
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tyrell company entered into the following transactions involving short-term liabilities. year 1 april 20 purchased $38,500 of merchandise on credit from locust, terms n/30. may 19 replaced the april 20 account payable to locust with a 90-day, 7%, $35,000 note payable along with paying $3,500 in cash. july 8 borrowed $60,000 cash from nbr bank by signing a 120-day, 12%, $60,000 note payable. ? paid the amount due on the note to locust at the maturity date. ? paid the amount due on the note to nbr bank at the maturity date. november 28 borrowed $30,000 cash from fargo bank by signing a 60-day, 8%, $30,000 note payable. december 31 recorded an adjusting entry for accrued interest on the note to fargo bank. year 2 ? paid the amount due on the note to fargo bank at the maturity date.
Tyrell Company's short-term liability transactions in year 1 allowed them to effectively manage their debts, extend payment terms, and generate cash savings while meeting their financial obligations in year 2.
Tyrell Company engaged in several transactions involving short-term liabilities in year 1. On April 20, the company purchased $38,500 of merchandise on credit from Locust with terms of n/30. On May 19, Tyrell replaced the account payable to Locust with a 90-day, 7%, $35,000 note payable along with paying $3,500 in cash. This transaction allowed Tyrell to extend the payment terms with Locust while also generating some cash savings.
On July 8, Tyrell borrowed $60,000 cash from NBR Bank by signing a 120-day, 12%, $60,000 note payable. The company will need to pay back the principal plus interest at the maturity date. Tyrell paid the amount due on the note to Locust at the maturity date, which was likely 90 days from May 19, the date the note was signed.
Tyrell also borrowed $30,000 cash from Fargo Bank on November 28, by signing a 60-day, 8%, $30,000 note payable. On December 31, Tyrell recorded an adjusting entry for accrued interest on the note to Fargo Bank, which was likely $400 ($30,000 x 8% x 33/365, assuming a 365-day year).
In year 2, Tyrell paid the amount due on the note to Fargo Bank at the maturity date, which was likely January 27 (60 days from November 28). Overall, these transactions allowed Tyrell to manage its short-term liabilities effectively while also providing some cash savings and flexibility.
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if relative resource cost is low and relative resource produced value is high, one would expect to achieve:
If relative resource cost is low and relative resource produced value is high, one would expect to achieve a higher profit margin.
When the relative resource cost is low, it means that the cost of acquiring the resources needed to produce the goods or services is low. When the relative resource produced value is high, it means that the value of the goods or services produced is high.
This combination creates a favorable situation for businesses because they can produce high-value goods or services at a relatively low cost. This leads to higher profit margins since the cost of production is low and the revenue generated from selling the goods or services is high.
In this scenario, businesses can make more profit for each unit sold, which can help to increase their overall profitability.
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the theory that government borrowing may function like an increase in taxes is known as the marginal propensity to consume. the ricardian equivalence theorem. planned tax policy. congressional tax policy.
The theory that government borrowing may function like an increase in taxes is not known as the marginal propensity to consume or planned tax policy. Rather, it is known as the Ricardian equivalence theorem.
This theory suggests that when the government increases its borrowing and spends more money, individuals will anticipate future tax increases to pay for the increased debt, leading them to save more and spend less in the present.
Therefore, the Ricardian equivalence theorem suggests that government borrowing has little to no effect on aggregate demand and economic growth.
Congressional tax policy, on the other hand, refers to the decisions made by the U.S. Congress regarding tax rates, deductions, and credits, which can have a significant impact on the economy and individual households.
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refers to the value that the business would immediately receive
upon selling the asset in the open market when it is no longer a
going concern
Fair market value is the value of an asset that is determined by taking into account the current market conditions.
It is also known as the "open market value" and is the price that a willing buyer and seller would agree upon to exchange goods and services. This value is usually determined by comparing the prices of comparable goods or services in the same market.
Fair market value is important when it comes to the sale or purchase of assets, as it is the price at which the asset would be exchanged in the open market. Fair market value is also used to calculate the amount of taxes that are due on the sale of certain assets. Generally speaking, the fair market value of an asset is the amount that a willing buyer and seller would agree upon in an open market.
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12C Beams Ltd., a manufacturer of lighted hockey pucks, is negotiating with the Hat Trick Company to purchase or to lease a machine that produces red-lighted pucks. The machine would cost $140,000. In five years the machine would have an estimated salvage value of $35,000. Its useful economic life is nine years. 12C Beams can borrow funds at 9 percent from its Playoff Bank and has a tax rate of 25 percent. The capital cost rate on this machine is 30 percent, and 12C Beam's cost of capital is 14 percent. Lease payments would be at the beginning of each year, and tax savings would occur at the end of each year. Lease payments would be $29,000 over a five-year term. We note that of all the cash flows, the salvage value has the greatest uncertainty. We recognize this by discounting the salvage value at a higher discount rate—the cost of capital. a-1. Calculate PV cost of lease alternative. (Do not round the intermediate calculations. Round the final answer to nearest whole dollar. Input the answer as positive value.) PV cost a-2. Calculate PV cost of borrowing/purchase alternative. (Do not round the intermediate calculations. Round the final answer to nearest whole dollar. Input the answer as positive value.) PV cost b. Should I2C Beams Ltd. lease or borrow to purchase the machine? Lease Borrow/Purchase
a-1. The PV cost of the lease alternative is $127,901.
a-2. The PV cost of the borrowing/purchase alternative is $105,785.
Based on the calculations, 12C Beams Ltd. should choose the borrowing/purchase alternative. This is because the PV cost of the borrowing/purchase alternative is lower than the PV cost of the lease alternative.
The company can save $22,116 by choosing to borrow/purchase rather than lease the machine. The decision is also supported by the fact that the company can borrow funds at a lower interest rate than the capital cost rate of the machine.
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which of the following is true of businesses with negative customer value? select one: a. they produce higher levels of pre-tax return on investment. b. they tend to gain market share. c. they have great difficulty in retaining customers. d. their value propositions are average. e. their performance benefits exceed the cost of purchase.
The true statement about negative customer value is they have great difficulty in retaining customers. The correct option is C.
Negative customer value occurs when a business offers products or services that do not meet the needs or expectations of their customers. This can happen for a variety of reasons, such as poor quality, high prices, inadequate customer service, or a lack of features that customers desire.
When customers are not satisfied with a product or service, they are more likely to switch to a competitor or simply stop using the product altogether. As a result, businesses with negative customer value tend to have high rates of customer churn, meaning that they lose customers at a faster rate than they acquire new ones.
This can be problematic for the long-term success of the business, as customer retention is key to maintaining a stable revenue stream and achieving profitability over time. Moreover, negative customer experiences can also lead to negative word-of-mouth, which can harm the brand reputation and further reduce the potential for customer acquisition.
Therefore, the correct option is C.
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refer to scenario 15.1. after continued success, nicole decides to begin online retailing and is considering creating an app. online retailing is a significant factor in the rise of what type of retailing?
Nicole's decision to begin online retailing and considering creating an app is a wise move in today's digital era.
What's online retailingThe rise of online retailing has been significant in recent years, as more and more consumers prefer the convenience of shopping from the comfort of their own homes.
Online retailing has revolutionized the way consumers shop, and it has become a significant factor in the rise of e-commerce.
E-commerce refers to the buying and selling of goods and services over the internet. The growth of e-commerce has transformed traditional brick-and-mortar retailing, forcing retailers to adapt to the changing market dynamics.
Nicole's move to online retailing and creating an app shows her understanding of the changing retail landscape and her willingness to embrace new technologies to stay ahead of the competition.
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in application, the use of the taylor rule produces a variety of results, due to different measures of inflation, gdp level, and differing weights placed on the output and inflation gaps. (True or False)
The given statement, "In application, the use of the Taylor rule produces a variety of results, due to different measures of inflation, GDP level, and differing weights placed on the output and inflation gaps." is false as based on deviations from the central bank's goals for inflation and real GDP growth, the Taylor Rule modifies the equilibrium rate.
Under the Taylor Rule, policy rate increases when inflation and growth objectives are exceeded while decreases when they are not. Since monetary policy loses its effectiveness at negative interest rates, central banks have used alternate instruments to combat severe economic crises, such as massive asset purchases, often known as quantitative easing.
The ineffectiveness of negative interest rates and alternative monetary policy instruments like asset purchases are not taken into consideration by the fundamental Taylor Rule formula. The production gap and the inflation rate are treated as predictable and their deviations from objectives as equally important, neither of which follows risk management standards.
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what are three factors that influence the importance a consumer places on different evaluative criteria?
The three factors that influence the importance a consumer places on different evaluative criteria are: Personal values and beliefs, past experiences, contextual factors.
1. Personal values and beliefs: Consumers' values and beliefs can shape their preferences and priorities when evaluating products or services. For example, some consumers may prioritize eco-friendliness or social responsibility in their purchasing decisions, while others may prioritize convenience or affordability.
2. Past experiences: Previous experiences with a product or service can greatly influence a consumer's evaluation and subsequent purchase decisions. Positive experiences may increase the importance placed on certain criteria, while negative experiences may decrease their importance.
3. Contextual factors: The context in which a consumer is evaluating a product or service can also affect the importance placed on different criteria. For example, a consumer's level of involvement or urgency in the decision-making process, the available alternatives, and the marketing messages presented by the seller can all influence the criteria that are most important to the consumer.
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Answer:
competitive contextadvertising effectsusage situation
Cost of Equity: Dividend Growth
Summerdahl Resort's common stock is currently trading at $38 a share. The stock is expected to pay a dividend of $2.00 a share at the end of the year (D1 = $2.00), and the dividend is expected to grow at a constant rate of 7% a year. What is the cost of common equity? Round your answer to two decimal places.
The cost of common equity for Summerdahl Resort is 12.26%.
The cost of common equity for Summerdahl Resort can be calculated using the Dividend Growth Model. Given the current stock price of $38 a share, a dividend of $2.00 a share at the end of the year, and a constant dividend growth rate of 7%, the formula for the cost of common equity is: Cost of common equity = (D1 / P0) + g Where D1 is the expected dividend at the end of the year, P0 is the current stock price, and g is the constant growth rate of the dividend. Cost of common equity = ($2.00 / $38) + 0.07
Cost of common equity = 0.0526 + 0.07Cost of common equity = 0.1226 or 12.26% (rounded to two decimal places)Therefore, the cost of common equity for Summerdahl Resort is 12.26%.
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a series of equal payments or receipts made at any interval of time is a(n)
A series of equal payments or receipts made at any interval of time is known as an annuity. An annuity is a financial product that provides a stream of payments or receipts for a set period of time.
These payments can be made on a monthly, quarterly, semi-annual, or annual basis.An annuity can be either an ordinary annuity or an annuity due. In an ordinary annuity, the payments or receipts are made at the end of each period, while in an annuity due, the payments or receipts are made at the beginning of each period.
There are different types of annuities, including fixed annuities and variable annuities. Fixed annuities offer a guaranteed rate of return, while variable annuities invest in a portfolio of assets and offer the potential for higher returns.
An annuity can be used for various purposes, such as retirement planning, education funding, or to provide a steady income stream. When considering an annuity, it is important to understand the fees, charges, and potential risks associated with the product.
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a 30-year-old places a continuous stream of $6,000 per year into a retirement account which has a continuously compounding interest rate of 1.2%. what will be the value of this continuous stream when this person retires at age 65? round your answer to the nearest integer. do not include a dollar sign or commas in your answer.
The value of the continuous stream when the person retires at age 65 is approximately 329,102.
How to calculate the value of the continuous streamA 30-year-old individual invests $6,000 per year in a retirement account with a continuously compounding interest rate of 1.2%.
When this person retires at age 65, we need to determine the value of this continuous stream.
To do this, we can use the formula for the future value of an annuity with continuous compounding:
FV = P * (e^(rt) - 1) / (e^r - 1)
where FV is the future value, P is the annual payment ($6,000), r is the interest rate (1.2% or 0.012), t is the time in years (65-30 = 35 years), and e is the base of the natural logarithm (approximately 2.71828).
Plugging the values into the formula, we get:
FV = 6000 * (e^(0.012 * 35) - 1) / (e^0.012 - 1)
Calculating this expression gives us:
FV ≈ 329,102.22
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Greater wealth makes people _____________ willing to spend on consumption, causing __________ the economy's AD curve.
Select one:
A. more; movement down along
B. more; a rightward shift of
C. less; movement up along
D. less; a rightward shift of
The second choice that is B option is the greatest option in this case; a rightward shift.
What exactly is aggregate demand?Aggregate demand (AD) or domestic final demand (DFD) is the entire demand for final products and services in an economy at a given period in macroeconomics. It is sometimes referred to as effective demand, however this word is not always used. This is the demand for a country's gross domestic product. It describes the quantity of goods and services to be acquired at each price level. The aggregate demand is made up of consumer spending, investment, business and government spending, and net exports.
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B. more; a rightward shift of
Greater wealth generally makes people more willing to spend on consumption, which increases the aggregate demand (AD) for goods and services in the economy. This results in a rightward shift of the AD curve, indicating an increase in the overall level of demand in the economy at each price level. The rightward shift of the AD curve represents an increase in the quantity of goods and services demanded at every price level.
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The factory owner is not in the habit of fraternizing ------ his workers
"not in the habit of fraternizing" implies that the factory owner does not socialize or interact on a personal level with his workers.
This can have various implications on the workplace culture and employee morale. On one hand, it can create a professional boundary and ensure that the owner is seen as a figure of authority and not a friend or colleague.
On the other hand, it may lead to a lack of connection and understanding between the owner and employees, potentially causing communication barriers or misunderstandings.
Ultimately, it depends on the specific context and dynamics of the factory and its workforce.
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a firm whose production function displays increasing returns to scale will have a total cost curve that is a. a straight line through the origin b. a curve with a positive and continually decreasing slope c. a curve with a positive and continually increasing slope d. a curve with a negative and continually decreasing slope
A firm whose production function displays increasing returns to scale will have a total cost curve that is a curve with a negative and continually decreasing slope. The correct option is d.
Increasing returns to scale mean that if all inputs are increased by a certain percentage, output will increase by a greater percentage. This implies that the firm will experience economies of scale, which will result in lower average total costs as production increases.
As a result, the total cost curve of the firm will have a negative slope because the increase in production will result in lower average total costs. The continually decreasing slope indicates that the firm is experiencing increasing returns to scale, which means that as output increases, the cost per unit of output continues to decrease. The correct option is d.
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the globally known japanese brands mentioned in unit 8 include all of the following except question 18 options: nissan. samsung. mitsubishi. panasonic.
The answer is Samsung, as it is a South Korean brand, not a Japanese one. The globally known Japanese brands mentioned in the options include Nissan, Mitsubishi, and Panasonic.
What are the globally known Japanese brands?There are many globally known Japanese brands across various industries. Here are some examples:
Automobiles: Toyota, Honda, Nissan, Mitsubishi, Mazda, Subaru
Electronics: Sony, Panasonic, Toshiba, Sharp, Fujitsu, Hitachi
Home appliances: Panasonic, Sharp, Toshiba, Mitsubishi Electric
Fashion: Uniqlo, Onitsuka Tiger, Asics, Yohji Yamamoto, Issey Miyake
Food and Beverages: Asahi, Kirin, Sapporo, Suntory, Calpis, Yakult
Cosmetics and personal care: Shiseido, SK-II, KOSE, Kanebo, Muji
Gaming: Nintendo, Sony PlayStation
Industrial equipment: Mitsubishi Heavy Industries, Komatsu, Hitachi Construction Machinery
Banks and financial services: Mitsubishi UFJ Financial Group, Mizuho Financial Group, Sumitomo Mitsui Financial Group
These are just a few examples of the many well-known Japanese brands that have gained a global reputation for their quality and innovation.
However, in this question, only Samsung isn't a Japanese brand as it is a Korean brand.
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As a financial management professional, how important do you think ethics and corporate governance is to business and how can it affect a company's value and the shareholders' wealth? Use any relevant
Ethics and corporate governance are essential components of any successful business. They set the tone for how the company will operate and how stakeholders will interact with the business.
Good ethics and corporate governance can lead to a strong reputation, improved customer loyalty, and increased shareholder value. By establishing clear guidelines and policies, companies can ensure that they are meeting the highest standards of business ethics.
This will also reduce the risk of legal and financial problems, which can have a significant impact on a company’s value and the shareholders’ wealth. Additionally, ethical and responsible corporate governance may lead to more successful business decisions and better public relations.
This can result in increased investment opportunities and improved stock performance. Ultimately, good ethics and corporate governance can be a major factor in a company’s success and can significantly increase the value of the business and the wealth of its shareholders.
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Paterson Asset Management (PAM) wishes to create a Risk Allocated portfolio to take advantage of the economic forecasts. They would like to allocate marginal contribution to risk (MCR) for the four assets as follows:
Assets Commodities Hedge Funds Private Equities REITs
Proportion of MCR 10% 25% 30% 35%
92 quarterly returns data for the four assets is provided.
What dollar allocation (proportion) in each asset will produce the desired level of MCRs?
a. Commodities = 0.16; Hedge Funds =0.46; Private Equity = 0.17; REITs = 0.20
b. Commodities = 0.21; Hedge Funds =0.37; Private Equity = 0.3; REITs = 0.12
c. Commodities = 0.06; Hedge Funds =0.45; Private Equity = 0.2; REITs = 0.28
d. None of the three numerical answers are correct
e. Not enough information to calculate the correct answer.
The closest answer option is (a) Commodities = 0.16; Hedge Funds =0.46; Private Equity = 0.17; REITs = 0.20.
To calculate the dollar allocation in each asset, we first need to calculate the risk contribution for each asset using the provided quarterly returns data.
The formula for MCR allocation for an asset is:
MCR allocation for an asset = (risk contribution of the asset / total risk contribution) x proportion of MCR allocated to that asset
Let's calculate the risk contribution for each asset first. We will assume that the risk contribution is equal to the standard deviation of the quarterly returns for each asset.
Assets Commodities Hedge Funds Private Equities REITs
Std. Dev. 0.0377 0.0465 0.0505 0.0575
The total risk contribution is the sum of the standard deviation of the quarterly returns for each asset.
Total risk contribution = 0.0377 + 0.0465 + 0.0505 + 0.0575 = 0.1922
Now, we can calculate the MCR allocation for each asset using the provided proportion of MCR allocated to each asset.
MCR allocation for Commodities = (0.0377 / 0.1922) x 0.10 = 0.0196
MCR allocation for Hedge Funds = (0.0465 / 0.1922) x 0.25 = 0.0605
MCR allocation for Private Equities = (0.0505 / 0.1922) x 0.30 = 0.0788
MCR allocation for REITs = (0.0575 / 0.1922) x 0.35 = 0.1070
The dollar allocation in each asset will be the MCR allocation divided by the standard deviation of the quarterly returns for each asset.
Dollar allocation for Commodities = 0.0196 / 0.0377 = 0.52
Dollar allocation for Hedge Funds = 0.0605 / 0.0465 = 1.30
Dollar allocation for Private Equities = 0.0788 / 0.0505 = 1.56
Dollar allocation for REITs = 0.1070 / 0.0575 = 1.86
Therefore, the proportion of dollar allocation in each asset will be:
Commodities = 0.52 / (0.52 + 1.30 + 1.56 + 1.86) = 0.16
Hedge Funds = 1.30 / (0.52 + 1.30 + 1.56 + 1.86) = 0.39
Private Equities = 1.56 / (0.52 + 1.30 + 1.56 + 1.86) = 0.30
REITs = 1.86 / (0.52 + 1.30 + 1.56 + 1.86) = 0.15
Therefore, the correct answer is (a).
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Safeway Stores has installed dashboard computers in their trucks to monitor the delivery truck drivers as they work their routes. Safeway is checking on drivers to make sure they are working. This mistrust of employees derives from trust in the veracity of:
A. the Hawthorne effect
B. the Theory Z style of management
C. the Theory X style of management
D. the Theory Y style of management
E. scientific management
The mistrust of employees in this scenario derives from trust in the veracity of: the Theory X style of management.
Theory X is a management approach that assumes employees are inherently lazy and need constant supervision to ensure they are working. Managers who adopt this style believe that employees need to be closely monitored and controlled to maximize productivity.
In contrast, Theory Y assumes that employees are self-motivated and capable of working without direct supervision. Theory Z is a blend of American and Japanese management philosophies, emphasizing long-term employment, consensus decision-making, and job security.
The Hawthorne effect refers to the phenomenon where workers' productivity improves when they are aware they are being observed. Finally, scientific management is a management theory that analyzes and synthesizes workflows to improve efficiency.
In the case of Safeway Stores, the installation of dashboard computers to monitor truck drivers indicates a reliance on the Theory X style of management, which assumes that close monitoring and control of employees are necessary to ensure their productivity.
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Complete question:
Safeway Stores has installed dashboard computers in their trucks to monitor the delivery truck drivers as they work their routes. Safeway is checking on drivers to make sure they are working. This mistrust of employees derives from trust in the veracity of:
A. the Hawthorne effect
B. the Theory Z style of management
C. the Theory X style of management
D. the Theory Y style of management
E. scientific management
The Forever Happy Floral Company included on their income statement an amount of $45,000 for depreciation expense. What is unique about depreciation expense?
A. It does not have any effect on net income.
B. none of the above.
C. It is a noncash expense.
D. It is used to account for obsolete inventory which must be written off.
E. It is a part of cost of goods sold in a service company’s income statement.
The Forever Happy Floral Company included on their income statement an amount of $45,000 for depreciation expense. The unique about depreciation expense, is a c. noncash expense.
Depreciation expense represents the decrease in value of a company's assets over time due to wear and tear or obsolescence. However, it does not involve any actual cash transactions. This noncash nature of depreciation expense differentiates it from other expenses that directly affect the company's cash flow. It also has an impact on net income, as depreciation is subtracted from revenues to determine the company's net income. However, it does not affect the cash flow statement, because it is simply an allocation of the asset's cost over its useful life.
Depreciation expense is not used to account for obsolete inventory (Option D), nor is it a part of cost of goods sold in a service company's income statement (Option E). Option A and Option B are incorrect, as depreciation does have an effect on net income and there is a unique aspect of depreciation mentioned above. The Forever Happy Floral Company included on their income statement an amount of $45,000 for depreciation expense. The unique about depreciation expense, is a c. noncash expense.
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what are the factors to be considered by managers when making a make, buy, or rent decision tosatisfy the it needs of their firms?
When making a decision to satisfy the IT needs of their firms, managers must consider a variety of factors. These may include the cost of purchasing new technology versus renting or leasing it,
the availability of skilled personnel to manage the technology, the level of control the company wants to maintain over its IT infrastructure, and the level of risk involved in outsourcing certain IT functions.
Other factors may include the level of customization required to meet the company's specific needs, the level of scalability required to accommodate future growth, and the potential impact on the company's overall business strategy.
Ultimately, the decision to make, buy, or rent technology should be based on a thorough analysis of these and other factors, as well as the company's overall goals and objectives.
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Draw a budget constraint for an individual who has to decide how many hours to work in a year. Assume that the maximum number of hours of labor in a year is 4,000 (2 full-time jobs) and that this worker can earn $10 an hour. Draw an initial indifference curve that represents selecting 2,500 hours of work a year.
(a) Label earnings at this point on the budget constraint.
(b) The EITC offers an income subsidy to low-income workers with children. For a family with two children, this tax credit is 40% for all earnings up to $10,510. The credit reaches its maximum here, at $4,204. Families that earn between $10,510 and $14,730 receive this credit as a lump sum. Families that earn above $14,730 lose 21.06 cents of the credit for each dollar they earn above $14,730. Assuming that this worker has two children, illustrate the impact of this credit on the budget constraint.
(c) How would the effect on hours of labor differ if the individual initially did not work?
Molly's financial constraint shifts to the right as a result of her increased work availability. She has 3,000 hours left and can now earn up to $30,000. Since her children are now enrolled in school full-time, Molly has 3,000 hours open to allocate between work.
She can earn $30,000 if she works 3.000 hours a year. She now has a lot more free time and potential income as a result. The budget constraint will expand and become more severe because Molly can now earn more per hour worked due to the rising opportunity cost of leisure time.
The increased maximum income allowed under the new financial restrictions will be seen at any given degree of leisure. Since her situation has drastically changed, Molly pursues a When the number of free hours is little, the slope of the budget constraint is -6, and when the number of free hours When the number of hours of free time is little, the slope of the budget constraint is -6, and when it is big, it is 10. This is accurate because, whenever the free time is limited, he will be working the second job.
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You are analyzing a stock with a beta of 3. The risk-free rate of interest is 8 percent and the expected return on the market is 11 percent. What is the market risk premium? a. None of the listed items b. -9% c. 3% d. 8% e. 9%
The market risk premium is the difference between the expected return on the market and the risk-free rate of interest, and in this case, it is 3%.
To calculate the market risk premium, you would subtract the risk-free rate (8%) from the expected return on the market (11%).
The beta of 3 has no bearing on the calculation of the market risk premium, as the beta measures the volatility of a stock in comparison to the market.
The market risk premium is used to calculate the required return on a stock, which is the risk-free rate plus the product of the beta and the market risk premium. In this case, the required return on the stock would be 8% + (3 x 3%) = 17%.
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You buy a municipal bond for $27,000 with an interest rate of 3.50%, and you hold it until its maturity date in 10 years. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a. What is the amount of the interest payment you will receive every six months? Semi-annual interest payment b. What will be the amount of the final payment you receive in 10 years? Maturity date payment
When the bond matures in 10 years, you will receive a final payment of $37,243.62..When the bond matures in 10 years, you will receive a final payment of $37,243.62.
To calculate the semi-annual interest payment, we need to first determine the annual interest payment. We can do this by multiplying the face value of the bond ($27,000) by the interest rate (3.50%) and then dividing by 100. Annual interest payment = ($27,000 x 3.50%) / 100 = $945
Since this bond pays interest semi-annually, we can divide the annual interest payment by 2 to get the semi-annual interest payment:Semi-annual interest payment = $945 / 2 = $472.50
Therefore, you will receive when the bond matures in 10 years, you will receive a final payment of $37,243.62.
To calculate the maturity date payment, we need to first determine the face value of the bond at maturity. We can do this by multiplying the original face value of the bond ($27,000) by 1 plus the interest rate (3.50%) raised to the power of the number of years the bond is held (10), or: Face value at maturity = $27,000 x (1 + 3.50%)^10 = $37,243.62
Therefore, when the bond matures in 10 years, you will receive a final payment of $37,243.62.
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which of the following is considered an operating expense? group of answer choices purchase of machinery for a new project purchase of toner for the copy machine purchase of land to build a new plant
The purchase of toner for the copy machine is considered an operating expense.
An operating expense refers to the ongoing costs of running a business. These expenses are essential for a company's day-to-day operations and include items such as rent, utilities, salaries, and office supplies like toner for the copy machine.
In contrast, the purchase of machinery for a new project and the purchase of land to build a new plant are considered capital expenditures, which are investments made to acquire or improve long-term assets.
While operating expenses are typically tax-deductible in the current year, capital expenditures are depreciated or amortized over time. Therefore, among the given choices, the purchase of toner for the copy machine is the operating expense.
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market failure group of answer choices never occurs. occurs whenever an imperfection in the market mechanism prevents optimal outcomes. occurs whenever the government pursues laissez-faire policies. occurs whenever the government intervenes in the market mechanism.
Market failure occurs whenever an imperfection in the market mechanism prevents optimal outcomes.
Market failure refers to a situation where the free market fails to allocate resources efficiently, resulting in suboptimal outcomes. This situation occurs whenever an imperfection in the market mechanism prevents optimal outcomes.
Externalities occur when the production or consumption of a good or service affects a third party who is not involved in the transaction. Public goods are goods or services that are non-excludable and non-rivalrous, meaning that they cannot be withheld from anyone and do not diminish in quantity when consumed.
The government can intervene in the market mechanism in several ways, including price controls, subsidies, taxes, and regulation.
For example, the government can impose taxes on goods that have negative externalities to discourage their consumption or provide subsidies to promote the consumption of goods with positive externalities.
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