Employee talent is relied on most in a primary production system. In this type of production system, products are made in small batches or even one at a time, with a high degree of customization or individualization.
The production process is often complex and requires a high level of skill and expertise from the employees. As a result, the quality and success of the final product depend largely on the talent and abilities of the employees involved in the production process.
Mass production and continuous production, on the other hand, rely more on automation and standardized processes, with less emphasis on individual employee . The matrix structure is a type of organizational structure, not a production system, and does not necessarily affect the reliance on employee talent in production processes.
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Employee talent is relied on most in a unit production system due to the need for specialized skills and knowledge to create customized products. The correct option is a.
Out of the five production types listed, employee talent is relied on most in a unit production system. This is because unit production involves the creation of a customized product that requires specialized knowledge and skills from employees. In this type of production, each product is unique and requires a different set of procedures and techniques to produce. As a result, employees must have a high level of expertise and skill to complete each project successfully.In contrast, mass production relies on standardized processes and machinery to create identical products on a large scale.
Continuous production involves the production of a single product continuously, such as in the case of chemical plants or refineries. These production types rely less on employee talent and more on the efficiency and consistency of the production process.Primary production systems involve extracting raw materials from the environment, such as farming or mining.
While employee talent is still essential in these systems, the skills required are more focused on manual labor and knowledge of the environment.Finally, a matrix structure involves employees with different skills and expertise working together to complete a project. While employee talent is critical in this system, it is spread across various departments and skillsets, rather than concentrated in a single area.The correct option is a.
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eBook Carnes Cosmetics Co.'s stock price is $59, and it recently paid a $1.50 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, 9; and rs = 13%. At what constant rate is the stock expected to grow after year 3? Do not round intermediate calculations. Round your answer to two decimal places, __________%
The constant growth rate of the stock after year 3 is expected to be 13.89%.
How to calculate the expected constant growth rate of a stock using the Gordon Growth Model?To calculate the expected constant growth rate of the stock after year 3, we need to use the Gordon Growth Model. The Gordon Growth Model is given by:
[tex]P = \frac{D }{ (rs - g)}[/tex]
where:
P = current stock price
D = current dividend
rs = required rate of return
g = expected growth rate
Using the values given in the problem, we can calculate the expected dividend for the next 3 years:
Year 1 dividend = $1.50 * 1.25 = $1.875
Year 2 dividend = $1.875 * 1.25 = $2.34375
Year 3 dividend = $2.34375 * 1.25 = $2.92969
We can then calculate the expected stock price after 3 years using the formula:
[tex]P3 = (\frac{D1} { (1 + rs)^1)} + (\frac{D2 } {(1 + rs)^2)} + (\frac{D3 } {(1 + rs)^3)} + (\frac{P3 * (1 + g))} { (1 + rs)^3}[/tex]
where:
P3 = expected stock price after 3 years
D1, D2, D3 = expected dividends for years 1, 2, and 3, respectively
Solving for P3, we get:
P3 = [tex](\frac{\$1.875} { 1.13^1}) + (\frac{\$2.34375 }{ 1.13^2}) + (\frac{\$2.92969} { 1.13^3}) + ({P3 * (1 + g))} { 1.13^3}[/tex]
P3 = [tex]\$5.75 + \$6.76 + \$7.58 +\frac{ (P3 * (1 + g))} { 1.478}[/tex]
1.478P3 = $20.09 + P3 * (1 + g)
0.478P3 = $20.09
P3 = $42.03
Now, we can use the Gordon Growth Model to solve for the expected constant growth rate after year 3:
[tex]\$59 = \frac{\$2.92969 } {(0.13 - 0.25)} + \frac{(\$42.03 * (1 + g))} { (0.13 - 0.09)^1}[/tex]
$59 = $38.44 + $147.12 * (1 + g)
$20.44 = $147.12 * (1 + g)
g = 0.1389 or 13.89%
Therefore, the constant growth rate of the stock after year 3 is expected to be 13.89%.
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(Nonannual compounding using a calculator?) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow ?$31 comma 00031,000 to pay for his new car. How large will? Jesse's monthly car loan payment be if he can get a 55?-year ?(6060 equal monthly? payments) car loan from the? university's credit union at an APR of 5.95.9 percent compounded? monthly? ?Jesse's monthly car loan payment will be ?$nothing. ?(Round to the nearest? cent.)
Jesse Pinkman is thinking about trading cars, and he estimates he will need to borrow $31,000 to cover the cost of the new car.
To finance the purchase, he can take out a 60-month car loan from the university's credit union at an APR of 5.95 percent compounded monthly. To calculate Jesse's monthly car loan payment, he needs to use a calculator to figure out the monthly payments based on the interest rate and the loan term.
The calculator will show the total amount of interest that Jesse will pay over the life of the loan. Additionally, the calculator will also show Jesse's monthly car loan payment, which he can round to the nearest cent. In this case, Jesse's monthly car loan payment will be nothing, as the interest rate is so low that it does not exceed the loan amount.
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Fifteen customers arrive every hour (Poisson distributed) at Andy Johnson's food truck when it parks outside the Orlando Courthouse from 11-2 p.m. on weekdays. It takes Andy a mean time of 2 minutes to fill each order (following a negative exponentialdistribution). The Waiting Line Table is provided below and also we know that
a) What is the average number of customers in the queue? Using the table, the average number of customers in the queue is nothing customers (round your response to four decimal places).
b) How long will a person wait in line on average?
The average time a person spends in the queue is ______ minutes(round your response to two decimal places).
c) If Andy's wife joins him in serving meals (at the same speed as Andy), how will your answers to parts a and bchange?
Using the table, the new average number of customers in the queue is _________ customers (round your response to four decimal places).
The new average time a person spends in the queue is _________ minutes (round your response to two decimal places).
a) The average number of customers in the queue is 1.0351 customers. This means that on average, there will be a little over one customer waiting in line at any given time during the three-hour period.
b) On average, a person will wait in line for 1.9762 minutes. This means that the expected wait time for each customer is less than two minutes.
c) If Andy's wife joins him in serving meals, the average number of customers in the queue will decrease to 0.5176 customers, which is half of the previous value.
The average time a person spends in the queue will also decrease to 0.9881 minutes, which is less than half of the previous value. This is because the two servers can work together to process orders more quickly, reducing the wait time for customers.
In summary, Andy Johnson's food truck sees 15 customers per hour, and each order takes an average of 2 minutes to fill. Using the provided table, we can calculate that the average number of customers in the queue is just over one, and the average wait time is less than two minutes.
If Andy's wife joins him, both the average number of customers in the queue and the average wait time will decrease by more than half.
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Explain why European great powers Germany and Austria did not pursue diplomatic solutions in 1914. What did they each hope to gain through war? [I picked on Germany because it invaded Belgium/France, neither of which had declared war at the time, and because it - like Austria - was acting rather than reacting]
In 1914, the European great powers of Germany and Austria did not pursue diplomatic solutions due to a combination of factors, including nationalism, militarism, and political alliances. Both countries hoped to gain territorial expansion and increased influence in the region through war.
Germany, under the leadership of Kaiser Wilhelm II, sought to assert its dominance in Europe and challenge the balance of power held by the United Kingdom, France, and Russia. By invading Belgium and France, Germany hoped to swiftly defeat France and then turn its attention to Russia, as per the Schlieffen Plan.
This aggressive strategy aimed to minimize the risk of a two-front war and assert German dominance in Europe. Austria, on the other hand, aimed to assert its influence in the Balkans and maintain its status as a major European power.
The assassination of Archduke Franz Ferdinand by a Serbian nationalist provided Austria with an opportunity to punish Serbia and demonstrate its strength. However, diplomatic solutions were not pursued as Austria believed a swift military response was necessary to deter further threats and maintain its authority.
In conclusion, the European great powers Germany and Austria chose not to pursue diplomatic solutions in 1914 due to their desire for territorial expansion, increased influence, and the assertion of their power in Europe. Both nations believed that war would help them achieve these goals more effectively than diplomacy.
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which of the following observations is true of futures contracts? group of answer choices contracted through a dealer, usually a bank. customized to meet contracting company's terms and needs. typically no margin deposit required. traded on an exchange and acquired through an exchange broker.
Futures contracts are typically traded on exchanges, such as commodity exchanges or financial exchanges, and are acquired through exchange brokers.
D) Traded on an exchange and acquired through an exchange broker.
They are standardized contracts with terms and specifications set by the exchange. Futures contracts are not customized to meet the terms and needs of the contracting company, and they usually require margin deposits, which are initial deposits made by the parties to cover potential losses. Futures contracts are not typically contracted through a dealer, such as a bank, but rather through exchange brokers who facilitate the trading of these standardized contracts on the exchange.
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the chapter uses jeff bezos as an example of the creative process. which of the process was bezos in when he kept thinking about the internet for a mail order business while performing his regular work?
Jeff Bezos was in the incubation stage of the creative process when he kept thinking about the internet for a mail-order business while performing his regular work.
In the incubation stage, an individual lets ideas percolate and marinate in their mind without actively working on them. It involves letting ideas develop subconsciously and is often followed by a period of insight or inspiration where a solution or idea suddenly comes to mind.
Bezos' idea eventually led to the creation of Amazon, which revolutionized the retail industry and made him one of the richest people in the world.
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a firm with a price-earnings ratio of 8.39 has earnings per share of $5.38. this firm will have an expected stock price closest to: a. $42.93. b. $43.38. c. $44.16. d. $45.14.
This firm will have an expected stock price closest to d. $45.14.
Price to Earnings Ratio or Price to Earnings Multiple is the ratio of percentage fee of a inventory to its income according to percentage (EPS). PE ratio is one of the maximum famous valuation metric of stocks. It presents indication whether or not a inventory at its modern marketplace fee is steeply-priced or cheap. The better the P/E ratio, the greater you're buying every greenback of income. This makes a excessive PE ratio horrific for investors, strictly from a fee to income perspective.
Price-earnings ratio = Market price / Earnings per share
Earnings per share *price-earnings ratio = Market price
Market price = 8.39 * $ 5.38
= $45.1382
Hence the correct answer is $ 45.14.
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______ A tendency to exhibit modesty and sensitivity is associated with which type of leadership, according to Project GLOBE?
Participative
Self-protective
Humane-oriented
Team-oriented
Autonomous
Participative leadership is a type of leadership style that is characterized by a tendency to exhibit modesty and sensitivity. Participative leadership encourages collaboration among team members, giving everyone the opportunity to contribute ideas and strategies.
This style of leadership allows for a greater sense of ownership in the team, as everyone's input is valued and respected. It also encourages creativity and innovation, as everyone is allowed to express their ideas and thoughts. Furthermore, this type of leadership encourages team members to take responsibility for their own actions and decisions, rather than relying on the leader.
This sense of responsibility can help to create a more cohesive and productive team. Ultimately, participative leadership fosters a sense of trust and respect amongst team members, which can help to create a productive and successful team.
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A questionnaire must translate survey objectives into specific questions to solicit the required information from respondents. True False
True. A questionnaire is a research instrument that is designed to gather information from respondents.
To be effective, a questionnaire must be carefully designed to translate survey objectives into specific questions that will solicit the required information from respondents.
The process of designing a questionnaire typically involves several stages, including defining the research objectives, selecting the target population, identifying the information required, and developing questions that will elicit that information in a clear and unambiguous way.
Good questionnaire design is important to ensure that the resulting data is accurate, reliable, and useful for making informed decisions. Poorly designed questionnaires can lead to biased or incomplete data, or may fail to capture the information that is most important to the research objectives.
Therefore, it is important to carefully consider the design of a questionnaire before administering it to respondents. This may involve pre-testing the questionnaire with a small sample of respondents to identify any potential issues and make necessary adjustments before conducting the full survey.
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True. A questionnaire is a research instrument consisting of a series of questions used to gather information from respondents. It is important to translate survey objectives into specific questions in order to ensure that the questionnaire is effective.
By asking questions that are relevant to the objectives of the survey, the researcher can accurately collect the data they need to draw meaningful conclusions.
Additionally, the questions should be logically grouped and ordered, and they should be clear and concise. It is also important to use language that respondents can easily understand.
By constructing an effective questionnaire, the researcher can ensure that they are able to collect the information they need in order to answer the survey objectives.
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a firm is examining its data requirements to achieve the objectives of its research study. the management team determines that in order to get the needed data, they cannot use an observation method. instead, it will have to do an online survey. the team is most likely in which stage of the questionnaire design process?
The management team is in the stage of data collection method selection.
In this stage of the questionnaire design process, researchers determine the most appropriate method for collecting the data required to achieve the research objectives.
The terms "data" and "observation" are relevant in this context as they represent two possible methods for collecting data.
Observation involves directly observing and recording behaviors or events, while data refers to information collected through various sources, including surveys, experiments, and other forms of data collection.
The management team's decision to use an online survey rather than an observation method suggests that they have determined that survey data is more appropriate for their research objectives.
This decision may be based on a variety of factors, including the nature of the research question, the population being studied, and the feasibility of conducting direct observations.
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when a salesperson responds quickly to a service failure and delights the customer with the outcome, it is called
When a salesperson responds quickly to a service failure and delights the customer with the outcome, it is called "service recovery."
Service recovery is the process of taking action to correct a service failure and make things right with the customer. This can include apologizing for the mistake, finding a solution to the problem, and offering compensation or incentives to the customer.
Service recovery is important because it can help to restore the customer's trust in the company and improve their overall satisfaction with the service. It also provides an opportunity for the company to learn from the mistake and improve their processes to prevent similar issues from happening in the future.
Overall, effective service recovery can have a positive impact on the customer experience and the company's reputation. By responding quickly and taking the necessary steps to resolve the issue, salespeople can turn a negative situation into a positive one and create loyal customers who are more likely to recommend the company to others.
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by dividing its tennis racquet market into three categories, which it labels performance, recreational, and junior tennis players, prince sports is using a marketing strategy called
Prince Sports is using a marketing strategy called market segmentation by dividing its tennis racquet market into three categories: performance, recreational, and junior tennis players.
Market segmentation is a process of dividing a larger market into smaller groups of consumers having similar needs or characteristics. By doing so, a company can tailor its marketing efforts and product offerings to meet the specific needs of each group, rather than trying to appeal to the entire market with a one-size-fits-all approach.
In this case, Prince Sports is segmenting the tennis racquet market based on the specific needs and characteristics of different types of tennis players, such as their skill level, age, and playing style.
By doing so, Prince Sports can develop and market different types of tennis racquets that are designed to meet the specific needs of each segment. This can help the company to more effectively reach and appeal to different types of customers, ultimately driving sales and revenue.
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Preferred stock expected return) You are considering the purchase of 150 shares of preferred stock. Your required return is 14 percent. If the stock is currently selling for $35 and pays a dividend of $4.25 , should you purchase the stock?
a. What is the expected rate of return of the stock? ___% (Round to two decimal places.)
The expected rate of return of the preferred stock is 12.17%.
By calculating the expected return on the stock, we can determine whether or not it is a viable investment option. The calculation is done by dividing the annual dividend of $4.25 by the current stock price of $35, which gives us 0.1217, or 12.17%. This is lower than the required return of 14%, so this investment may not be a good option.
The expected return of 12.17% is not high enough for the investor to feel comfortable with the purchase, because it does not meet the required return of 14%. This means that the investor would not be earning the desired return on their investment. In addition, the preferred stock may not be a good fit for the investor’s portfolio since it does not meet the required return of 14%.
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__________ are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores.
Outdoor malls are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores.
Mall developers create "power centers" which are huge unenclosed shopping centers consisting of a long strip of retail stores, including freestanding anchor stores that cater to various customer needs.
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Strip malls. are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores.
The shopping centers described in the question are known as "strip malls." They are typically located on the outskirts of urban areas or in suburban areas and are designed for easy access by car.
Strip malls are characterized by their linear layout, with stores arranged in a single row along a long strip of land. Often, a few larger anchor stores, such as a grocery store or department store, are located at either end of the strip. Strip malls are popular because they provide a range of retail options in one location and are easily accessible for shoppers.
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Assume Gideon is a commodities trader at Goldman Sachs. On March 10, he had a long position in 100 Nickel Futures. The future contract promises the delivery of 200 tones of Nickel. The future price of Nickel per ton is $64,093.00. March 15 is the maturity date of these futures. Traders believe that if the market were open, the spot price for Nickels would be $100,000 per ton. Please answer the following questions.
a)Estimate Gideon’s paper loss/gain in this position on the maturity date. Show your work fully.
b)Will this gain/loss be realized? Meaning, will Gideon actually lose or gain money on March 15? Explain your answer fully and support your answer with the relevant payoff diagram.
c)Conversely, William, now working for Morgan Stanley, has a long position. Indeed, William is Gideon’s counterparty in this transaction. What would be William’s "realized" and "paper" losses/gains?
a) To estimate Gideon's paper loss/gain, we first need to calculate the total value of his long position in Nickel futures. 100 Nickel Futures promise delivery of 200 tons of Nickel, at a price of $64,093.00 per ton. So, the total value of his position is 100 x 200 x $64,093.00 = $1,281,860.00.
If the spot price for Nickels is $100,000 per ton on March 15, Gideon's paper gain would be (100 x 200 x ($100,000 - $64,093.00)) = $7,813,400.00. However, this is just a paper gain, since he has not yet realized this profit.
b) Whether Gideon will actually gain or lose money on March 15 depends on the spot price of Nickel on that day. If the spot price is below $64,093.00 per ton, Gideon will have a realized loss.
If the spot price is above $64,093.00 per ton, Gideon will have a realized gain. The relevant payoff diagram would show a linear relationship between the spot price and Gideon's profit/loss, with a break-even point at $64,093.00.
c) William's realized and paper losses/gains would be the opposite of Gideon's. If Gideon has a paper gain, William would have a paper loss of the same amount. If Gideon has a realized gain, William would have a realized loss of the same amount.
As the counterparty to Gideon's trade, William's position is a short position, meaning he would profit if the spot price of Nickel falls below $64,093.00 per ton on March 15.
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Which alternative should be selected using incremental rate of return analysis, if MARR = 11.0%? Do-nothing A | В C D First account 0 $8,500 $5,000 $8,500 $6,000
Annual benefit 0 1,474 940 1,566 935
Life 10 yrs ROR 11.5% 13.5% 13.0% 9.0% A. C, because the C-B increment has a ROR of 12.28% and the A-B increment has a ROR of 8.51% B. something other than C, because C costs the most initially C. C because C has the highest annual benefit O D. B, because its ROR is the highest
C. C because C has the highest annual benefit
To determine which alternative to select using an incremental rate of return analysis, follow these steps:
1. Calculate the incremental benefit for each alternative:
- A-B: 0 - $8,500 = -$8,500
- A-C: 0 - $5,000 = -$5,000
- A-D: 0 - $6,000 = -$6,000
2. Calculate the incremental rate of return (ROR) for each alternative:
- A-B: 11.5% - 13.5% = -2.0%
- A-C: 11.5% - 13.0% = -1.5%
- A-D: 11.5% - 9.0% = 2.5%
3. Compare each incremental ROR to the minimum acceptable rate of return (MARR) of 11.0%:
- A-B: -2.0% < 11.0%
- A-C: -1.5% < 11.0%
- A-D: 2.5% < 11.0%
4. Since none of the alternatives have an incremental ROR greater than the MARR, we should choose the alternative with the highest annual benefit, which is alternative C with an annual benefit of $1,566.
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the typical layout strategy for a high-variety, low-volume production is
The layout strategy that deals with low-volume, high-variety production is Process-oriented layout.
In manufacturing engineering, a process layout is a blueprint of a factory floor plan for arranging equipment by function to improve efficiency. A production line should ideally be designed to avoid waste in material flow, inventory handling, and management. In a process layout, workstations and machines are not arranged according to a specific production flow.
Instead, each department (eg, drilling department, painting department, etc.) has a collection of similar operations or similar machines. Also called function layout. In this layout, editing operations are performed together in groups and not arranged in any arbitrary order.
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Complete question:
The typical layout strategy for a high-variety, low-volume production is_______
The typical layout strategy for a high-variety, low-volume production is called a functional layout. In this layout, similar processes or machines are grouped together in the same area. This allows for better utilization of equipment and resources while minimizing unnecessary movement of materials and people.
Functional layouts also allow for flexibility in the production process, as different products can be made using the same equipment and processes. This is important in a high-variety production environment, where there are many different products being produced in small quantities.In addition to functional layouts, high-variety, low-volume production environments may also use cellular layouts. In this layout, machines and workstations are organized into self-contained cells that can produce a specific product or group of products.
This can improve efficiency by reducing the need for material handling and setup time.Overall, the layout strategy for a high-variety, low-volume production environment should prioritize flexibility, efficiency, and organization to ensure that all products can be produced effectively and efficiently.
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the following balance sheet information is provided for duke company for year 2: assets cash $4,400 accounts receivable 10,550 inventory 14,200 prepaid expenses 1,000 plant and equipment, net of depreciation 18,900 land 12,800 total assets $61,850 liabilities and stockholders' equity accounts payable $2,430 salaries payable 8,830 bonds payable (due in ten years) 9,000 common stock, no par 19,500 retained earnings 22,090 total liabilities and stockholders' equity $61,850 what is the company's current ratio? (round your answer to 2 decimal places.) multiple choice 2.68 1.33 1.44 0.74
The company's current ratio is 2.68, which means it has more than double the amount of current assets to cover its current liabilities. This indicates that the company is in a strong financial position to meet its short-term obligations.
The current ratio is calculated by dividing a company's current assets by its current liabilities. Current assets are those that can be easily converted into cash within a year, while current liabilities are those that are due within a year. In Duke Company's case, we can find the current ratio by dividing the total of its current assets by the total of its current liabilities.
Current assets include cash, accounts receivable, inventory, prepaid expenses, plant and equipment, and land. To calculate Duke Company's current assets, we need to exclude plant and equipment, which is not a current asset, but rather a long-term asset. Therefore, the total of Duke Company's current assets is:
Current assets = Cash + Accounts receivable + Inventory + Prepaid expenses = $4,400 + $10,550 + $14,200 + $1,000 = $30,150
Current liabilities include accounts payable, salaries payable, and bonds payable due within a year. The total of Duke Company's current liabilities is:
Current liabilities = Accounts payable + Salaries payable + Bonds payable = $2,430 + $8,830 + $0 = $11,260
Now we can calculate Duke Company's current ratio by dividing its current assets by its current liabilities:
Current ratio = Current assets / Current liabilities = $30,150 / $11,260 ≈ 2.68
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A bond with 22-year maturity was issued 4 years ago. Face value of this 10.69% quarterly coupon paying bond is $3,000. Analysts find that the current yield to maturity of this bond is 12.90 percent. Show your workings and find the value of this bond. Compare this value against the face value of the bond and write your comment to explain the difference, if any. (Use max 100 words for the explanation in the report).
The value of the bond with a face value of $3,000 and a 10.69% quarterly coupon rate, with 22-year maturity and a yield to maturity of 12.90%, is $1,830.16.
To calculate the bond's value, we use the formula for present value of a bond:
PV = [tex]\[\frac{C}{r} \cdot \left[1 - \frac{1}{(1+r)^{n\times t}}\right] + \frac{F}{(1+r)^{n\times t}}\][/tex]
where:
PV = present value of the bond
C = coupon payment
r = yield to maturity
n = number of coupon payments per year
t = number of years until maturity
F = face value of the bond
Plugging in the given values, we get:
PV = [tex]$$(3000\times0.1069/4)\times\left[1-\frac{1}{\left(1+0.129/4\right)^{4\times22}}\right]+3000/\left(1+0.129/4\right)^{4\times22}$$[/tex]
PV = $1,830.16
The bond's value is less than its face value of $3,000 because its yield to maturity is higher than its coupon rate. Investors demand a higher return on investment for holding this bond than the coupon payments it offers, thus driving down its present value.
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Assume that Athens First charged one point in up-front fees on all of the loans originated in the pool, and they have decided to securitize the mortgages by issuing 100 pass-through securities.[1] The mortgage servicing fee will be 50 basis points, and there are no guarantee fees. The current market rate of return used to price the mortgage securities is 12.25%. Assume an annual prepayment rate of 5% (as above, there will be prepayment in years 1-9) and no defaults. In addition to selling off the securities, Athens First will also sell off the mortgage servicing rights (MSR). What is the discount rate for purchasing MSR (OCC for MSR) that would cause Athens First to exactly break even on the entire deal (profit on sale of mortgages + profit on sale of MSR = 0)? If the discount rate for purchasing MSR (OCC for MSR) is 13%, what is the profit (loss) for Athens First on the entire deal?
The break-even discount rate for purchasing MSR (OCC for MSR) for Athens First would be slightly above the market rate of return of 12.25%.
This is because Athens First will earn a fee of 50 basis points from the mortgage servicing, but will also need to cover up-front fees, as well as prepayment costs.
If the discount rate for purchasing MSR is 13%, Athens First will make a small profit on the deal. This is because the mortgage servicing fee will be slightly higher than the additional costs incurred by Athens First, such as the up-front fees and prepayment costs.
The higher discount rate for MSRs will also cause more investors to purchase the securities, which will increase the sale price of the securities and further contribute to the profit of Athens First.
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an opening that is neutral and does not reveal the bad news is called
An opening that is neutral and does not reveal the bad news is called a: buffer statement.
When delivering bad news, it's essential to use a buffer statement to prepare the recipient for the information that follows. The buffer statement should be carefully crafted to maintain a professional and friendly tone while not disclosing the bad news right away.
1. Begin by expressing appreciation or gratitude: This can help establish a positive tone and make the recipient more receptive to the message.
2. Provide context: Briefly mention the situation or issue that has led to the bad news without revealing the negative information yet.
3. Show empathy: Acknowledge the recipient's feelings or concerns and demonstrate your understanding of their perspective.
4. Stay neutral: Avoid using emotionally charged language or opinions. Stick to the facts and maintain a professional tone.
5. Be concise: Keep the buffer statement brief and to the point, as the main purpose is to prepare the recipient for the bad news that follows.
Remember that the goal of a buffer statement is to ease the recipient into the bad news, so it's crucial to strike the right balance between being informative and maintaining a neutral tone. Following these steps will help you create an effective buffer statement when delivering unfavorable information.
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Consider a five-year bond with 12% annual coupon (paid semi-annually). Suppose the yield on the bond is 9% per year with continuous compounding. What is the duration of the bond (in years)? (required precision: 0.01 +/- 0.02)
The bond lasts for approximately 0.64 years, with a +/- 0.02 year accuracy.
To calculate the duration of the bond, we need to use the formula:
Duration = (PV of cash flows * Time of cash flows) / Present value of the bond
First, we need to calculate the present value of the bond. The bond has a face value of $100, and pays a 12% coupon rate annually, so the semi-annual coupon rate is 6% and the semi-annual coupon payment is $6. The bond has a total of 10 semi-annual coupon payments (5 years * 2 payments per year), and a final payment of the face value of the bond.
Using the formula for the present value of an annuity, we can calculate the present value of the semi-annual coupon payments:
PV of coupons = ($6 / 0.09) * (1 - (1 / (1 + 0.09/2)^10)) = $47.264
Using the formula for the present value of a single amount, we can calculate the present value of the face value payment:
PV of face value = $100 / (1 + 0.09/2)^10 = $54.572
Therefore, the present value of the bond is:
PV of bond = PV of coupons + PV of face value = $101.836
Next, we need to calculate the PV of each cash flow multiplied by the time of the cash flow. The time of each semi-annual cash flow is half of a year, and the time of the final cash flow is 5 years.
PV of semi-annual coupon payments * time = ($6 / 0.09) * (1 - (1 / (1 + 0.09/2)^10)) * (0.5) = $23.632
PV of face value payment * time = $100 * 5 / (1 + 0.09/2)^10 = $42.789
Finally, we can calculate the duration of the bond:
Duration = (PV of semi-annual coupon payments * time + PV of face value payment * time) / Present value of the bond
Duration = ($23.632 + $42.789) / $101.836 = 0.6423 years
Therefore, the duration of the bond is approximately 0.64 years, with a precision of +/- 0.02 years.
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Dorex Manufacturing builds an ERP system to streamline its business activities. After being tested, the company implements the system only in the procurement department. This is an example of _____ installation OA) plunge B) parallel C) pilot D) phased
Dorex Manufacturing builds an ERP system to streamline its business activities. After being tested, the company implements the system only in the procurement department. This is an example pilot installation
The scenario described is an example of a pilot installation, where a new system is implemented in a limited area of the organization to test its functionality and effectiveness. In this case, the ERP system was implemented only in the procurement department, which allows the company to evaluate its performance and make necessary adjustments before rolling out the system across the entire organization.
Phased installation involves implementing a new system gradually across different areas of the organization over time.
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The example given in the question is an example of pilot installation. The correct option is c
Pilot installation is a type of installation approach where a new system is implemented in one or more departments or locations of an organization on a trial basis. This is done in order to test the system's functionality and identify any issues before implementing it on a larger scale across the entire organization.In the case of Dorex Manufacturing, they built an ERP system to streamline their business activities.
After testing the system, they implemented it only in the procurement department. This means that they are using the system in a limited capacity in order to test its functionality and identify any issues before rolling it out to the entire organization. This is a common approach taken by organizations when implementing new systems as it helps to reduce the risk of issues arising when the system is implemented on a larger scale.
Other types of installation approaches include plunge installation, parallel installation, and phased installation. Plunge installation is when a new system is implemented all at once, replacing the old system entirely. Parallel installation involves running both the old and new systems side-by-side for a period of time, while phased installation involves implementing the new system in stages over a longer period of time.The correct option is c
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identify the external environmental factors that affect small businesses. (check all that apply.
social and cultural,
natural environment,
political, legal, technological, economic factors.
The external environmental factors that affect small businesses include social and cultural factors, natural environment, political factors, legal factors, technological factors, and economic factors.
These factors can influence a small business's operations, growth, and overall success.
Social and Cultural Factors: Social and cultural factors refer to the beliefs, values, attitudes, and behaviors of the society or community in which a small business operates. These factors can affect a small business in multiple ways.
For example, changing demographics and consumer preferences can impact product demand and customer preferences. Social and cultural factors also influence consumer buying behavior, which can affect a small business's marketing strategies and customer engagement efforts.
Natural Environment: The natural environment encompasses factors such as weather patterns, climate change, natural disasters, and environmental regulations. These factors can impact small businesses, particularly those that are dependent on natural resources or are vulnerable to environmental risks.
For example, businesses in industries such as agriculture, tourism, and construction can be affected by changes in weather patterns, while businesses in environmentally regulated industries need to comply with environmental laws and regulations.
Political Factors: Political factors include government policies, laws, regulations, and stability of the political environment. These factors can impact small businesses through changes in taxation, trade policies, labor laws, and government regulations.
Political instability or changes in government can also affect small businesses by creating uncertainty and changing the business environment.
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5. what are some of the benefits of using dell's triton water cooling technology?higher processor performance during peak loads; a pue of 1.03, far below u.s.average of 1.8; lower operating cost of the data center because of lower powerconsumption; lower electrical consumption, and reduced pollution to the atmosphere
Some of the benefits of using dell's triton water cooling technology is lower operating cost of the data center because of lower power consumption.
Because water can shipping warmness 25 instances extra successfully than air, 'Triton' can run excessive acting additives quicker and extra successfully than conventional air-cooled structures. In water cooled structures a liquid, typically water, is pumped thru pipes. The liquid takes the warmth from the additives and dissipates it in a radiator. It operates at the equal predominant because the engine cooling machine in a vehicle wherein coolant is pumped thru the engine and to the radiator. Possible troubles and maintenance. Liquid cooling is a ways extra complicated than air cooling, which additionally method there are extra regions wherein a liquid cooling tool can fail. Leaks may be catastrophic and failure to nicely keep your tool may want to bring about issue damage.
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All of the following are categories of new products except Multiple Choice brand extensions. O new-to-the market products. O new category entries. O product line extensions. O revamped products.
All of the given choices are categories of new products except multiple Choice brand extensions.
Brand extensions are actually one of the categories of new products. The correct answer is that all of the other options - new-to-the-market products, new category entries, product line extensions, and revamped products - are categories of new products.
New-to-the-market products are entirely new products that have not been offered before by the company or in the marketplace. New category entries are products that are new to a particular product category, but not necessarily to the company or overall marketplace.
Product line extensions are variations or additions to existing product lines, while revamped products are existing products that have been updated or improved in some way.
Brand extensions, on the other hand, are new products that leverage the brand equity of an existing brand to enter a new product category or market. For example, when a soft drink company introduces a line of snack foods under the same brand name as their soft drinks, that is a brand extension.
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how does information collected through online forms differ from site transaction logs? which potentially provides a more complete consumer profile?
Online forms and site transaction logs are two different methods of collecting information about consumers.
Online forms are typically filled out by the consumer themselves and include information such as name, email, address, and other personal details. On the other hand, site transaction logs are generated automatically by the website and track the activities of the consumer on the site, such as pages visited, items purchased, and time spent on the site.
While both methods can provide valuable information about the consumer, they differ in the type of data collected and the level of detail provided. Online forms provide more detailed personal information about the consumer, while site transaction logs provide more detailed information about the consumer's behavior on the website.
In terms of providing a more complete consumer profile, it depends on the purpose of the profile. If the goal is to understand the consumer's personal characteristics and preferences, then online forms are likely to provide more comprehensive information. If the goal is to understand the consumer's behavior and interactions with the website, then site transaction logs would provide a more complete picture. Ultimately, a combination of both methods may provide the most complete consumer profile.
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Alpha and Beta Companies can borrow for a five-year term at the following rates:
Alpha Beta
Moody's credit rating Aa Baa
Fixed-rate borrowing cost 10.5% 12.0%
Floating-rate borrowing cost LIBOR LIBOR + 1%
a. Calculate the quality spread differential (QSD):
b. Develop an interest rate swap in which both Alpha and Beta have an equal cost savings in their borrowing costs. Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. No swap bank is involved in this transaction.
The quality spread differential (QSD) for Alpha and Beta Companies is 1.5%.
To develop an interest rate swap with equal cost savings, Alpha should pay Beta a fixed rate of 11.25% and receive LIBOR, while Beta should pay Alpha LIBOR + 0.5% and receive the fixed rate.
a. Calculate QSD:
QSD = (Beta's Fixed-rate borrowing cost - Alpha's Fixed-rate borrowing cost)
QSD = (12.0% - 10.5%) = 1.5%
b. Develop an interest rate swap:
Step 1: Determine the midpoint of the QSD, which is the equal cost savings for both parties.
Midpoint = QSD / 2 = 1.5% / 2 = 0.75%
Step 2: Adjust the borrowing costs for both companies using the midpoint.
Alpha's new fixed-rate: 10.5% + 0.75% = 11.25%
Beta's new floating-rate: (LIBOR + 1%) - 0.75% = LIBOR + 0.25%
Step 3: Set up the interest rate swap.
Alpha pays Beta a fixed rate of 11.25% and receives LIBOR.
Beta pays Alpha LIBOR + 0.25% and receives a fixed rate of 11.25%.
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trust can be difficult to forge when interactions are limited and people come from different organizations. question 8 options: true false
The given statement "trust can be difficult to forge when interactions are limited and people come from different organizations." is true because trust is built through repeated interactions and shared experiences, which may be limited when people come from different organizations.
When people come from different organizations, they may have different values, goals, and ways of operating, which can make it harder to establish a sense of trust. Additionally, limited interactions can make it harder for people to get to know each other and build a level of comfort and familiarity that can lead to trust. As a result, it can take time and effort to establish trust in these situations.
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Suppose the risk-free retum is 3.1% and the market portfolio has an expected retum of 8.8% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.28. What is its expected return? The expected return is _____ % (Round to two decimal places.)
Expected Return = 3.1% + 1.596% = 4.696%, After rounding to two decimal places, the expected return for Johnson & Johnson Corporation stock is 4.70%.
To calculate the expected return of Johnson & Johnson Corporation stock, we'll use the Capital Asset Pricing Model (CAPM). The CAPM formula is:
Expected Return = Risk-free Rate + Beta * (Market Return - Risk-free Rate)
In this case, we are given the following information
- Risk-free Rate (Rf) = 3.1%
- Market Return (Rm) = 8.8%
- Standard Deviation (σ) = 16% (not required for this calculation)
- Beta (β) = 0.28
Now, let's plug in the values into the CAPM formula:
Expected Return = 3.1% + 0.28 * (8.8% - 3.1%)
First, we'll calculate the difference between the Market Return and the Risk-free Rate:
Difference = 8.8% - 3.1% = 5.7
Next, we'll multiply this difference by the stock's Beta:
Beta Portion = 0.28 * 5.7% = 1.596%
Finally, we'll add the Risk-free Rate to the Beta Portion to find the Expected Return: 4.696%
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