The gain or loss on disposal is -$3,200.
To find the gain or loss on disposal, we need to calculate the asset's book value at the end of the eighth year.
First, we need to determine the annual depreciation expense.
The depreciable cost of the asset is:
Original cost - Residual value = $126,700 - $14,200 = $112,500
Annual depreciation expense is:
Depreciable cost / Estimated life = $112,500 / 10 years = $11,250 per year
After eight years, the accumulated depreciation is:
$11,250 x 8 = $90,000
The book value of the asset at the end of the eighth year is:
Original cost - Accumulated depreciation = $126,700 - $90,000 = $36,700
The cash received from the disposal was $33,500, which is less than the book value of $36,700.
Therefore, the company incurred a loss on the disposal:
Loss on disposal = Cash received - Book value = $33,500 - $36,700 = -$3,200
The gain or loss on disposal is -$3,200.
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Selling accounts receivables to factors and allowing credit terms such as 2/10, n/30 a. represent common business practices. b. represent ways to accelerate receivables collections. c. result in cash collections that are less than the gross accounts receivable. d. All of the above answers are correct.
Selling accounts receivables to factors and allowing credit terms such as 2/10, n/30 represent common business practices and are ways to accelerate receivables collections.
What is business?Business is an activity that involves the exchange of goods and services for money or other goods and services. It is a process of creating value for customers and society by producing, exchanging, and consuming goods and services. Business activities include production, marketing, finance, and human resources. Business can be conducted by individuals, partnerships, corporations, or other entities. Businesses use resources to produce goods and services, and they use these resources to generate revenue.
This practice can result in cash collections that are less than the gross accounts receivable, as the factor may take a discount for the early payment.
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Monster had an average collection period of 31.18 days in 2010, compared with 42.83 days in 2009. Assume bargaining power has not changed. Generally speaking, what can you say about the change in Monster Energy's short-term financial situation from 2009 to 2010?
a. There was likely no change in financial position from 2009 to 2010.
b. Monster is having an easier time collecting from customers, improving its short-term financial position.
c. Monster is having an easier time collecting from customers, worsening its short-term financial position.
d. Monster is having a more difficult time collecting from customers, worsening its short-term financial position.
e. Monster is having a more difficult time collecting from customers, improving its short-term financial position.
The Monster's short-term financial position improved from 2009 to 2010. Option (b) is the correct answer.
The average collection period is a financial ratio that measures the number of days it takes a company to collect its accounts receivable. A lower average collection period indicates that the company is collecting its receivables more quickly, which is generally a positive sign for its short-term financial position.
In this case, Monster's average collection period decreased from 42.83 days in 2009 to 31.18 days in 2010, indicating that the company was able to collect its accounts receivable more quickly in 2010 than in 2009.
The change in Monster Energy's short-term financial situation from 2009 to 2010 improved, as the average collection period decreased from 42.83 days to 31.18 days, indicating that the company was having an easier time collecting from customers and improving its short-term financial position. Therefore, option (b) is correct.
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From 2009 to 2010, The Monster's short-term financial position got better. The correct answer is b. Monster is having an easier time collecting from customers, improving its short-term financial position.
A financial ratio called the average collection time tracks how long it takes a business to collect its accounts receivable. The company is likely collecting its receivables more rapidly if its average collection period is lower.
Which is generally a good sign for its short-term financial position. The fact that Monster's average collection period reduced from 42.83 days in 2009 to 31.18 days in 2010 shows that the business was able to collect its accounts receivable more promptly in 2010 than in 2009. The average collection duration reduced from 42.83 days to 31.18 days between 2009 and 2010, showing that the company was having an easier time collecting from customers and that Monster Energy's short-term financial status had improved.
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What is the bond equivalent yield on a $1 million T-bill that currently sells at 91 750 percent of its face value and is 109 days from maturity? (write your answer in and sound it to a dee mal phoon)
The bond equivalent yield on this $1 million T-bill that currently sells at 91.750 percent of its face value and is 109 days from maturity is 30.1%.
How to determine the bond equivalent yield on a $1 million T-bill that currently sells at 91.750 percent of its face value and is 109 days from maturity?To calculate the bond equivalent yield (BEY) on a $1 million T-bill that currently sells at 91.750 percent of its face value and is 109 days from maturity, follow these steps:
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How many 1 ounce bottles of cough syrup can be made from a 3 liter container of an in-stock syrup? a. 50 bottles b. 100 bottles c. 150 bottles
A 3 liter container of an in-stock syrup can make approximately 96 1 ounce bottles of cough syrup, taking into account a 5% loss during the bottling process. Option b is the correct answer.
To determine how many 1 ounce bottles of cough syrup can be made from a 3 liter container of an in-stock syrup, we need to first convert the 3 liters into ounces. One liter is equivalent to 33.814 ounces, so 3 liters is equal to 101.442 ounces.
Next, we need to divide the total ounces by the amount of syrup used per bottle. Since each bottle is 1 ounce, we will divide 101.442 by 1, which gives us 101.442 bottles.
However, we need to consider that there will be some loss due to spillage and waste during the bottling process. This loss can vary depending on the equipment and techniques used, but typically ranges from 5-10%. For this calculation, we will use a 5% loss.
To account for the 5% loss, we will multiply the calculated number of bottles (101.442) by 0.95, which gives us 96.37 bottles.
Since we cannot have a fraction of a bottle, we will round down to the nearest whole number. Therefore, the answer is 96 bottles, which is option b - 100 bottles.
In summary, a 3 liter container of an in-stock syrup can make approximately 96 1 ounce bottles of cough syrup, taking into account a 5% loss during the bottling process. Option b is the correct answer.
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b. 100 bottles If a 3-liter container of syrup is available, and each bottle of cough syrup needs to be 1 ounce or 0.03 liters, then we can divide the total amount of syrup by the amount required per bottle:
3 liters ÷ 0.03 liters/bottle = 100 bottles Therefore, 100 bottles of cough syrup can be made from a 3-liter container of syrup. To explain this, we use a simple division calculation to determine the number of 1 ounce bottles of cough syrup that can be made from a 3-liter container of syrup. Since 1 ounce is equivalent to 0.03 liters, we can divide the total amount of syrup (3 liters) by the amount required per bottle (0.03 liters) to get the answer of 100 bottles. This means that if each bottle requires exactly 1 ounce of syrup, then a 3-liter container can be used to make 100 bottles of cough syrup.
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with a cost factor of 0.8, a schedule rating of 0.6, a reliability rating of 0.5, and a performance rating of 0.6, the overall consequence of failure was
The overall consequence of failure with the given cost factor, schedule rating, reliability rating, and performance rating is 0.66. Based on the given cost factor of 0.8, a schedule rating of 0.6, a reliability rating of 0.5, and a performance rating of 0.6, the overall consequence of failure can be calculated using a formula that considers the weighted average of these factors.
The formula for calculating the overall consequence of failure is as follows:
Overall consequence of failure = (Cost factor x 0.4) + (Schedule rating x 0.3) + (Reliability rating x 0.2) + (Performance rating x 0.1)
Substituting the given values in the formula, we get:
Overall consequence of failure = (0.8 x 0.4) + (0.6 x 0.3) + (0.5 x 0.2) + (0.6 x 0.1)
Overall consequence of failure = 0.32 + 0.18 + 0.1 + 0.06
Overall consequence of failure = 0.66
Therefore, the overall consequence of failure with the given cost factor, schedule rating, reliability rating, and performance rating is 0.66.
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Carnes Cosmetics Co.'s stock price is $53, and it recently paid a $1.25 dividend. This dividend is expected to grow by 20% for the next 3 years, then grow forever at a constant rate, a; and rs - 15%. At what constant rate is the stock expected to grow after year 37 Do not round Intermediate calculations. Round your answer to two decimal places
The constant growth rate of Carnes Cosmetics Co.'s stock after year 3 is expected to be 10.94%.
To calculate the constant growth rate of Carnes Cosmetics Co.'s stock after year 3, we can use the Gordon Growth Model, which is based on the assumption that the stock price is the present value of all future dividends. The formula for the Gordon Growth Model is:
Price = D1 / (rs - g)
where:
D1 = expected dividend for next year
rs = required rate of return
g = constant growth rate
In this case, we know that:
D0 = $1.25 (the most recent dividend)
g = unknown
rs = 15% (the required rate of return)
We also know that the dividend is expected to grow by 20% for the next 3 years, which means that:
D1 = D0 * (1 + 20%) = $1.25 * 1.20 = $1.50 (for year 1)
D2 = D1 * (1 + 20%) = $1.50 * 1.20 = $1.80 (for year 2)
D3 = D2 * (1 + 20%) = $1.80 * 1.20 = $2.16 (for year 3)
So, for the first 3 years, the dividends are expected to be $1.50, $1.80, and $2.16, respectively. After year 3, the dividend will grow forever at a constant rate, g.
Using the Gordon Growth Model, we can now solve for g:
Price = $53 (given in the problem)
D3 = $2.16 (calculated above)
rs = 15% (given in the problem)
$53 = $2.16 / (15% - g)
$53(15% - g) = $2.16
0.15$53 - $53g = $2.16
$7.95 - $53g = $2.16
-$53g = -$5.79
g = 0.1094 or 10.94%
This means that the company's dividends will continue to grow at a steady rate of 10.94% per year from year 4 onwards, which will increase the stock's price over time.
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Bank A offers you a 10 yehr loan with an annual rate of interest of 6% with continuous compounding. Bank B offers you a 10 year loan with an annual rate of interest of 6% with compounding 4 times per annum. Bank C offers you a 10 year loan with an annual rate of interest of 6% with compounding 12 times per annum. Which of the following is correct? a. You are indifferent between borrowing from Bank A or Bank b. You would choose to borrow from Bank c. You would choose to borrow from Bank d. You would choose to borrow from Bank A.
The correct answer depends on the borrower's individual circumstances and preferences. However, it is important to understand the impact of compounding frequency on effective interest rate when comparing loan options.They should choose Bank A. Correct answer is option D
The difference in the compounding frequency of the interest rates offered by these banks is what sets them apart. Bank A has continuous compounding, which means that interest is calculated and added to the principal amount continuously, resulting in the highest effective interest rate among the three banks.
Bank B, on the other hand, has quarterly compounding, which means that interest is calculated and added to the principal amount four times per annum. Bank C has monthly compounding, which means that interest is calculated and added to the principal amount 12 times per annum.
When comparing these options, it is essential to consider the effective interest rate, which takes into account the compounding frequency. Bank A has the highest effective interest rate, followed by Bank C and Bank B. Therefore, if the borrower is looking for the lowest total cost of borrowing, they should choose Bank A.
However, the borrower's choice may depend on other factors, such as repayment terms, loan amount, and their financial situation. It is also essential to consider the loan's flexibility, including the ability to make prepayments and early repayments without incurring penalties. Thus Correct answer is option D
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3. You have just received a bonus of $100,000 and are looking to deposit the money in a bank account for three years. You investigate the annual deposit rates of several banks and collect the following information: Bank A B С Compounding Frequency APR Annually 20.00% Semiannually 20.00% Daily* 19.40% *Assume there are 365 days in a year a. Calculate the EAR for each option. b. How much will you have at the end of 3 years at each bank?
Compounding frequency refers to the frequency with which interest is calculated and added to the principal amount in a compound interest account.
a. To calculate the Effective Annual Rate (EAR) for each option, we can use the formula:
EAR = (1 + APR/n)^n - 1
where APR is the Annual Percentage Rate and n is the compounding frequency per year.
For Bank A, the APR is 20.00% and the compounding frequency is annually, so:
EAR_A = (1 + 0.20/1)^1 - 1 = 20.00%
For Bank B, the APR is 20.00% and the compounding frequency is semiannually, so:
EAR_B = (1 + 0.20/2)^2 - 1 = 20.25%
For Bank C, the APR is 19.40% and the compounding frequency is daily, so:
EAR_C = (1 + 0.1940/365)^365 - 1 = 20.05%
b. To calculate how much we will have at the end of 3 years, we can use the formula for compound interest:
A = P * (1 + r/n)^(n*t)
where A is the ending amount, P is the principal (initial deposit), r is the annual interest rate, n is the compounding frequency per year, and t is the time in years.
For each bank, assuming that we deposit the full $100,000 and leave it untouched for 3 years:
For Bank A, we have:
A_A = 100,000 * (1 + 0.20/1)^(1*3) = $215,892.32
For Bank B, we have:
A_B = 100,000 * (1 + 0.20/2)^(2*3) = $219,254.93
For Bank C, we have:
A_C = 100,000 * (1 + 0.1940/365)^(365*3) = $219,002.79
Therefore, after 3 years, we would have the following amounts:
Bank A: $215,892.32
Bank B: $219,254.93
Bank C: $219,002.79
Note that Bank B has the highest EAR and therefore provides the highest return on investment, while Bank A has the lowest EAR and provides the lowest return on investment.
However, Bank C has a slightly lower EAR than Bank B but a higher compounding frequency (daily), which results in a slightly lower ending amount.
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how will the importation of chocolate from belgium impact the market for the dollar and the market for the euro?
The importation of Belgian chocolate can impact the market for the US dollar and the Euro in several ways.
When importing chocolate from Belgium, the demand for Euros will increase as importers need to exchange their US dollars for Euros to pay for the chocolate.
This increased demand for Euros may lead to an appreciation of the Euro relative to the US dollar. Simultaneously, the supply of US dollars in the foreign exchange market may increase, leading to a depreciation of the US dollar.
As a result, the market for both currencies may experience fluctuations based on the trade between the two countries.
Foreign Exchange Rates: The importation of Belgian chocolate involves transactions between US importers and Belgian exporters, which typically require currency exchange.
If US importers need to purchase Euros to pay for the imported chocolate, it increases the demand for Euros in the foreign exchange market, which can potentially lead to an appreciation of the Euro against the US dollar.
On the other hand, if Belgian exporters receive payment in US dollars for their chocolate, it increases the supply of US dollars in the foreign exchange market, which can potentially lead to a depreciation of the US dollar against the Euro.
Changes in exchange rates can have significant implications for international trade and investment, as well as for the competitiveness of domestic producers and exporters.
Trade Balance: The importation of Belgian chocolate can also impact the trade balance between the US and Belgium. The trade balance is the difference between a country's exports and imports, and it has an effect on the supply and demand for currencies in the foreign exchange market.
If the US imports a significant amount of Belgian chocolate, it increases the demand for Belgian chocolate, which can potentially lead to a trade deficit for the US with Belgium.
A trade deficit means that the US is importing more than it is exporting, which can put pressure on the US dollar and potentially lead to a depreciation of the currency.
On the other hand, if Belgium imports a significant amount of US dollars from the sale of its chocolate, it increases the supply of US dollars in the foreign exchange market, which can potentially lead to a trade surplus for Belgium and put upward pressure on the Euro.
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Panthers, Inc. has a capital structure of 20% debt and 80% equity. The tax rate is 40%. The firm's bonds currently trade in the market for $950. These face value $1,000 bonds have a coupon rate of 6%, paid semiannually, with 10 years to maturity. The firm's common stock trades for $20 per share. The firm just paid a dividend of S2. Future dividends are expected to grow at 3% per year forever. Panther's WACC is ___ %. Round your answer to 2 decimal places.
The business just distributed an S2 dividend. Dividend growth in the future is predicted to continue at 3% annually WACC of Panther is 14.60% weighted average cost of capital the firm just paid a dividend of S2.
Crimson and Clover's weighted average cost of capital (WACC) is assessed to be 14.60%. The WACC is determined by accounting for the firm's tax rate, cost of debt, and cost of equity. The market price of the bonds.
The coupon rate, and the bond's maturity period are taken into account when calculating the cost of debt.The expected dividend payment, anticipated dividend growth rate, and market price of the common stock are factors that are taken into account when calculating the cost of equity. When computing WACC, the tax rate of 32% is also taken into account.The WACC is a crucial indicator used to evaluate a company's profitability and capacity to provide returns to its owners.
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what types of organization can accept unlimited donations from individuals, corporations, and trade unions?group of answer choices
The type of organization can accept unlimited donations from individuals, corporations, and trade unions are b. Independent Expenditure-Only Committees
Super PACs or Independent Expenditure-Only Committees are the names given to organisations in the United States that are permitted to take an unlimited amount of money from people, businesses, and labour unions. These groups are political action committees, and they are allowed to raise and spend any amount of money they choose in support of political candidates as long as they don't work with campaigns of those running for office.
Following Supreme Court's Citizens United v. Federal Election Commission decision in the year 2010, which lifted prohibitions on corporate and labour political expenditures, super PACs were developed. Super PACs, which have grown to be a potent influence in political elections, particularly at the federal level, were made possible by this judgement.
Complete Question:
what types of organization can accept unlimited donations from individuals, corporations, and trade unions ?
a. Private Firms
b. Independent Expenditure-Only Committees
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Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglas' research indicates that the immediate past returns will serve as reasonable estimates of future returns. A year earlier, investment X had a market value of $20,000, and investment Y had a market value of $55,000. During the year, investment X generated cash flow of $1,500 and investment Y generated cash flow of $6,800. The current market values of investments X and Y are $21,000 and $55,000, respectively.
(a) Calculate the expected rate of return on investments X and Y using the most recent year's data.
(b) Assuming that the two investments are equally risky, which one should Douglas recommend? Why?
(a) Expected rate of return on investment X is 11.5% and for Y is 12.4%. (b) Douglas should recommend investment Y because it has a higher expected rate of return and the two investments are equally risky.
(a) The expected rate of return on investment X can be calculated by dividing the sum of the cash flow and the change in market value by the beginning market value, and multiplying by 100 to convert to a percentage.
Thus, the expected rate of return on investment X is ((1,500 + (21,000 - 20,000)) / 20,000) x 100 = 11.5%. Similarly, the expected rate of return on investment Y is ((6,800 + (55,000 - 55,000)) / 55,000) x 100 = 12.4%.
(b) Assuming that the two investments are equally risky, Douglas should recommend investment Y since it has a higher expected rate of return.
Even though investment Y has a higher market value and generates higher cash flows, the expected rate of return takes into account both the cash flows and the change in market value, and therefore provides a more accurate measure of the return on investment.
Since investment Y has a higher expected rate of return than investment X, it is the better choice for Douglas to recommend to Orange Industries.
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A company has an existing $197358 promissory note facility, which it will roll over in 90 days. It is concerned that interest rates will rise before the roll-over date and enters into a 90-day bank-accepted bill futures contract at 99.10. Three months later, the company closes out its futures position at 98.60. Using the following data, calculate the profit or loss position of the futures transactions. (Disregard margin calls and transaction costs.)
a.
1225.91
b.
241.94
c.
-241.94
d.
-1225.91
The loss position of the futures transactions is -$1225.91. Therefore, the correct option is d.
To calculate the profit or loss position of the futures transactions, we need to follow these steps:1. Determine the face value of the contract:
Face value = 100 - Futures price at the beginning
Face value = 100 - 99.10 = 0.90
2. Calculate the interest rate at the beginning and end of the contract:
Interest rate = (100 - Futures price) / 100
Interest rate at the beginning = (100 - 99.10) / 100 = 0.009
Interest rate at the end = (100 - 98.60) / 100 = 0.014
3. Determine the difference in interest rates:
ΔInterest rate = Interest rate at the beginning - Interest rate at the end
ΔInterest rate = 0.009 - 0.014 = -0.005
4. Calculate the profit or loss on the futures contract:
Profit or Loss = (Face value x ΔInterest rate) x (Promissory note facility / 100)
Profit or Loss = (0.90 x -0.005) x ($197,358 / 100) = -$1225.91
So the profit or loss position of the futures transactions is -1225.91, which corresponds to option d. The negative sign indicates a loss.
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There are tools economists and strategic planners can use to evaluate a nation's progress towards economic development. Which of the following is a true statement with regards to such measurement? Select one: O a GDP is a larger figure and includes a nation's income generated from oxports, imports, and international operations. Ob legal activities such as gambling and black market transactions are considered in GDP and GNP. c. Using gross product figures to compare production across countries accounts for different cost of living in each country, Od. The purchasing power parity is a poor indicator of a people's total well-being.
The true statement with regards to measuring a nation's progress towards economic development using tools like GDP, GNP, and purchasing power parity (PPP) is that these measurements have their limitations.
GDP, for instance, is a larger figure that includes a nation's income generated from exports, imports, and international operations. However, it does not account for the distribution of wealth among the population, nor does it consider the impact of non-economic factors like environmental degradation.
Similarly, GNP includes legal activities like gambling and black market transactions, but again, it does not consider factors like income inequality or social welfare. Comparing production across countries using gross product figures is also flawed as it does not account for the different cost of living in each country.
Lastly, the PPP, while a useful indicator of a people's total well-being, is not a comprehensive measure and may not reflect the true standards of living in a country.
Therefore, while these tools are useful in evaluating a nation's progress towards economic development, they must be used with caution and in conjunction with other measures to paint a more complete picture.
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a supportive supervisor frequently changes communication styles. challenges employees despite their skill level. provides specific feedback to employees. creates goals that are difficult to attain.
Answer: Provides specific feedback to employees
Explanation: All other options inhibit communication and productivity.
how does an increase in the price level affect the position of the c i g x curve and in turn the equilibrium level of real gdp?
An increase in the price level leads to inward movement in the position of the CIGX curve and in turn causing a contraction in the equilibrium level of real GDP.
An increase in the price level typically leads to a decrease in the purchasing power of consumers and businesses, which reduces their consumption (C), investment (I), and net exports (X) expenditures.
As a result, the aggregate demand curve (AD) shifts downward and to the left, causing a contraction in the equilibrium level of real GDP. This means that the position of the CIGX curve moves inward, reflecting the reduction in the total demand for goods and services at all possible price levels.
Conversely, a decrease in the price level usually stimulates spending and boosts economic activity, leading to an upward and rightward shift in the AD curve, and an expansion in the equilibrium level of real GDP.
Therefore, the CIGX curve would shift outward, indicating an increase in the total demand for goods and services at all possible price levels. It is important to note that other factors such as changes in government spending, taxes, and monetary policy can also affect the position of the CIGX curve and the equilibrium level of real GDP.
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if you live in a town or a city that has a single provider of electricity or natural gas, then that natural monopoly provider:
In a town or city with a single provider of electricity or natural gas, this natural monopoly provider holds a unique position in the market.
What is natural monopolyNatural monopolies occur when a single company can efficiently supply the entire market demand due to economies of scale, which results in lower average costs as production increases.
In this scenario, the natural monopoly provider has significant control over the market and can set the price of the service, often leading to higher prices for consumers. However, these monopolies are usually regulated by government agencies to ensure fair pricing and to prevent abuse of market power.
The natural monopoly provider is responsible for the production, distribution, and maintenance of the utility infrastructure, ensuring reliable and continuous service to the community.
While competition is limited, the provider is expected to maintain a high level of service quality and meet regulatory standards. In some cases, the government may provide subsidies to help the provider maintain a stable and affordable service to consumers.
Overall, a natural monopoly provider of electricity or natural gas in a town or city can offer efficient service delivery, but requires regulation to ensure fair pricing and quality service for consumers.
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1. Krystal is a U.S.-based company that manufactures, sells, and installs water purification equipment. On April 11, the company sold a system to the City of Nagasaki, Japan, for installation in Nagasaki's famous Glover Gardens. The sale was priced in yen at ¥25,000,000, with payment due in three months. The exchange rate and interest rate data are shown in the following tables:
Spot exchange rate: ¥117.974/$
1-month forward rate: ¥117.505/$
3-month forward: ¥116.610/$
Money Rates United States Japan
One month 4.9125% 0.09500%
Three months 5.0000% 0.09500%
Krystal can be borrowing yen from Japanese banks at a spread of two percentage points above the Japanese money rate. Krystal's weighted average cost of capital is 15%, and the company wishes to protect the dollar value of this receivable.
Krystal can protect the dollar value of its receivables by entering into a forward contract to sell ¥24,313,747.29 at a forward exchange rate of 116.610, with a cost of hedging of $1,241.39.
How to protect the dollar value of the receivable?To protect the dollar value of the receivable, Krystal needs to hedge against the foreign exchange risk. The company can do this by using a forward contract, which will allow them to lock in a fixed exchange rate for the future payment in yen.
Here's how Krystal can calculate the cost of hedging using a forward contract:
Calculate the present value of the yen receivable using the spot exchange rate:
PV = ¥25,000,000 / 117.974 = $211,797.21
Determine the future value of the yen receivable in three months based on the three-month forward rate:
FV = ¥25,000,000 / 116.610 = $214,121.04
Calculate the forward exchange rate:
Forward exchange rate = ¥25,000,000 / $214,121.04 = 116.610
Calculate the dollar amount of the forward contract:
Dollar amount of forward contract = FV / (1 + US interest rate * 3/12) = $214,121.04 / (1 + 5% * 3/12) = $208,856.99
Calculate the yen amount of the forward contract:
Yen amount of forward contract = Dollar amount of forward contract * forward exchange rate = $208,856.99 * 116.610 = ¥24,313,747.29
Determine the cost of hedging using a forward contract:
Cost of hedging = (Yen borrowing rate + spread) * (3/12) * yen amount of forward contract
= (0.095% + 2%) * (3/12) * ¥24,313,747.29
= ¥146,008.31 or $1,241.39 (using spot exchange rate)
Therefore, Krystal can protect the dollar value of the receivable by entering into a forward contract to sell ¥24,313,747.29 in three months at a forward exchange rate of 116.610. The cost of hedging using a forward contract is $1,241.39.
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which of the following is true?select one:at replacement level fertility, population will definitely stop growingpopulation will grow at a faster rate as fertility rate declinesat replacement level of fertility, couples may have more than 2 childrenfood demand will go down with increased population
The true statement is c. at replacement level fertility, couples may have more than 2 children.
The fertility rate at which a population can replace itself from one generation to the next without migrating is known as replacement level fertility. Due to the fact that not all children live to be of reproductive age, this rate is normally a little higher than 2 children per woman. In order to account for child mortality rates, couples may have somewhat more than 2 children on average at replacement level fertility.
However, because each couple is merely replacing themselves with their children, the population size would eventually remain steady. Further, population growth would not always halt at replacement level fertility because migration and other factors like life expectancy might have an impact on it. Additionally, the pace of population expansion actually decreases as the fertility rate does.
Complete Question:
which of the following is true?
a. at replacement level fertility, the population will definitely stop growing
b. the population will grow at a faster rate as the fertility rate declines
c. at the replacement level of fertility, couples may have more than 2 children
d. demand will go down with increased population
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Neighborly Fence will have a value of $72,000 if the economy does well this next year and a value of $37,000 if the economy does poorly. The probability of a good economy is 76 percent. The firm owes its bondholders $21,000. What is the total market value of the firm if it only operates for one more year? Multiple Choice $42.600 O $63,600 O $45,400 O $24,400 O $84,600 O
The total market value of Neighborly Fence can be calculated using the given probabilities and values for the good and poor economy scenarios. The firm owes its bondholders $21,000.
In a good economy: $72,000 - $21,000 = $51,000
In a poor economy: $37,000 - $21,000 = $16,000
Now, we'll use the probabilities to find the expected value of the firm.
Expected value = (probability of good economy * value in good economy) + (probability of poor economy * value in poor economy)
Expected value = (0.76 * $51,000) + (1 - 0.76) * $16,000)
Expected value = $38,760 + $3,840 = $42,600
So, the total market value of the firm if it only operates for one more year is $42,600.
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Which term refers to the money offered to fund a start-up
company?
a.
private placement
b.
project financing
c.
bought deal
d.
venture capital fund
The term you're looking for is "venture capital." Venture capital is a type of financing provided by investors, often through a venture capital fund, to help fund start-up projects and businesses. The correct answer is D.
These investors typically invest in promising start-ups with high growth potential in exchange for equity, or a share of ownership in the company. The process of securing venture capital typically involves the following step:Preparation: Start-ups create a solid business plan, establish a strong team, and develop their product or service to demonstrate its potential value to investors.Pitching: Start-ups present their business idea, financial projections, and market analysis to potential investors in a formal pitch.Due diligence: If investors are interested, they conduct a thorough review of the start-up's business plan, financials, and overall potential to assess the investment risk.Investment terms negotiation: Both parties negotiate the terms of the investment, including the amount of funding, equity stake, and other conditions.Funding: Once the agreement is finalized, the venture capital fund provides the start-up with the necessary capital to help the business grow.Exit strategy: Eventually, investors aim to exit the investment by selling their shares through an initial public offering (IPO) or a merger/acquisition, allowing them to recoup their investment and potentially earn a return.In summary, the term "venture capital" refers to the money offered to fund a start-up project, often provided through a venture capital fund. This financing plays a crucial role in supporting innovative businesses and promoting economic growth.For more such question on venture capital
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_____ refers to the process of using various methods to reduce the possibility of a loss occurring. multiple choice loss avoidance loss control risk assumption risk transfer
Loss control refers to the process of using various methods to reduce the possibility of a loss occurring.
Loss control is a threat control method that seeks to lessen the opportunity that a loss will arise and decrease the severity of these that do arise. Avoidance is to save you the loss with the aid of using keeping off the threat completely. Prevention is a chain of measures applied to lessen the risk of a loss. Reduction measures are carried out to lessen the severity of loss from a threat. The six standards Prevention, Awareness, Compliance, Detection, Investigation and Resolution. As the circle movements clockwise, every precept has a dating with the subsequent precept, beginning with and circling returned to the number one precept and goal of any loss prevention program – Prevention.
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Loss control refers to the process of using various methods to reduce the possibility of a loss occurring. Loss control is an essential part of risk management, and it involves identifying potential sources of loss and taking steps to minimize or eliminate them.
Loss control measures can include implementing safety procedures, conducting regular inspections and maintenance, and providing training and education to employees.
The goal of loss control is to reduce the frequency and severity of losses, which can have a significant impact on a business's bottom line. By preventing losses, businesses can avoid the financial and reputational damage that can result from accidents, injuries, and other incidents. Loss control can also help businesses comply with regulations and avoid legal liabilities.
There are different approaches to loss control, including loss avoidance, risk assumption, and risk transfer. Loss avoidance involves eliminating activities or situations that could result in a loss, while risk assumption involves accepting the potential for a loss and setting aside funds to cover it. Risk transfer involves transferring the potential for a loss to another party, such as an insurance company, through insurance policies or contracts.
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each potential client may not know the competitors to _________ product.
Each potential client may not know the competitors to a specific product due to a variety of reasons. Firstly, the client may not have done extensive research on the product and its market. Secondly, the client may not be aware of the different types of products that are available in the market.
Thirdly, the client may not have a clear understanding of their own needs and preferences. This can make it difficult for them to evaluate different products and determine which ones are the best fit for their specific requirements. In addition, clients may also have biases or preconceived notions about specific products or brands, which can impact their decision-making process.
To address these challenges, companies can invest in marketing and advertising initiatives that educate clients about their products and their unique selling propositions. This can help clients make informed decisions and identify the key differentiators between different products in the market.
Additionally, companies can leverage customer feedback and reviews to showcase their competitive advantage and position their products as the best option for potential clients. Overall, by addressing these challenges, companies can better position their products in the market and improve their chances of winning over potential clients.
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stock market events in 1929, 1987, and 2008 are most apt to be used as examples in support of which one of these theories?
The stock market events in 1929, 1987, and 2008 are most apt to be used as examples in support of the theory of financial market bubbles.
The theory of financial market bubbles suggests that sometimes financial markets become overvalued due to investors' irrational exuberance or herd behavior, leading to a rapid increase in prices that is not supported by underlying economic fundamentals. This can create a speculative bubble, which eventually bursts as investors begin to realize the market is overvalued and panic sets in, leading to a rapid decline in prices.
The stock market crashes of 1929, 1987, and 2008 were all characterized by a period of rapidly rising stock prices that were not supported by underlying economic fundamentals, followed by a sudden and dramatic decline in stock prices. In each case, investors became overly optimistic and invested heavily in the stock market, leading to a speculative bubble that eventually burst.
While other economic and financial theories may also be relevant in explaining these events, such as monetary policy, fiscal policy, or financial regulation, the theory of financial market bubbles provides a useful framework for understanding the rapid and dramatic rise and fall of stock prices in these events.
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according to the aggregate supply equation in the text, if output does not respond to deviations of the price level from the expected price level, then the aggregate supply curve is:
According to the aggregate supply equation in the text, if the output does not respond to deviations of the price level from the expected price level, then the aggregate supply curve is said to be vertical or perfectly inelastic.
This means that changes in the price level will not have any impact on the level of output produced in the economy. The vertical aggregate supply curve implies that the economy has reached its full employment level of output and any increase in demand will only lead to higher prices without any increase in output. This can occur in the short run when there are fixed factors of production such as capital or labor, which cannot be adjusted easily to changes in demand or prices.
In conclusion, the vertical aggregate supply curve indicates that changes in the price level do not affect the level of output produced in the economy, which is determined by the full employment level of resources. This can occur in the short run due to fixed factors of production and can lead to inflation and reduced consumer purchasing power.
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10) What information is not needed in the cost valuation approach? A) Rent price B) Cost to construct a new home C) Depreciation value D) Land value
Rent price is not needed in the cost valuation approach. Option A.
One piece of information that is not needed in the cost valuation approach is the rent price. Rent price is a factor that is used in determining the income approach to valuation, where the value of the property is estimated based on its potential income stream. In contrast, the cost valuation approach is more focused on the actual costs involved in constructing the property and the value of the property as it currently exists.
Another piece of information that is not needed in the cost valuation approach is the land value. The cost valuation approach focuses on the value of the property's physical structure and does not take into account the value of the land on which it sits. The land value is more relevant in the sales comparison approach, where the value of a property is estimated based on the sale prices of similar properties in the same area.
In summary, the cost valuation approach in real estate does not require information such as the rent price . Instead, it is more focused on the actual costs involved in constructing the property and the current value of the property's physical structure.Therefore option A is correct.
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f investment demand is fixed and the interest rate rises from 6 to 10 percent as a result of servicing the public debt, what happens to private investment?
When the interest rate rises from 6 to 10 percent due to servicing the public debt, there will be a decrease in private investment.
This is because the higher interest rate makes borrowing more expensive, and as a result, individuals and businesses will be less likely to take out loans to invest in new projects or expand their businesses.
Additionally, the higher interest rate will make savings more attractive, as individuals and businesses can earn a higher return on their savings. This means that there will be less money available for investment in the economy.
Furthermore, if investment demand is fixed, this means that there will be no increase in investment to offset the decrease in private investment caused by the higher interest rate.
Therefore, the overall effect will be a decrease in investment in the economy.
Overall, when the interest rate rises due to servicing the public debt, it can have a negative impact on private investment and the economy as a whole.
It is important for policymakers to consider the potential effects of their decisions on interest rates and debt servicing on private investment and the overall health of the economy.
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shannon has worked for an interior design firm for several years. her husband's firm has just promoted him and relocated him to another state, so she resigns from her job to move with him to his new job location. shannon's resignation would be called a
Shannon's resignation would be called a voluntary resignation .
What is a voluntary resignation ?Voluntary resignation is a situation where an employee chooses to terminate their employment voluntarily, for reasons such as personal circumstances, career change, or relocation. In Shannon's case, she is leaving her job to relocate with her husband, which is a personal reason beyond the control of her employer.
Voluntary resignations are common in many workplaces and are generally considered a normal part of the employment cycle. While it may be challenging for the employer to lose a valuable employee like Shannon, they will typically respect her decision and work to ensure a smooth transition for her replacement.
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A company's master budget for October is to manufacture and sell 30,100 units, for a total sales revenue of $272,000, total variable costs of $178,690, and total fixed costs of $25,000. The company actually manufactured and sold 32,100 units, and generated $46,000 of operating income in October. The flexible-budget operating income in October was:
$28,510
$73,439
$74,510
$86,528
$89,489
The flexible-budget operating income in October was $74,510.
How to calculate the flexible-budget operating income for October?To calculate the flexible-budget operating income for October, we will follow these steps:
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what are the advantages and disadvantages of the global minimum corporate tax deal? Will the deal really end the ‘race to the bottom’ and endless jurisdictional arbitrage regarding corporate tax avoidance? Do you think it will ultimately be good or bad for the US? Should there be a global minimum corporate tax, and if there is, do you think fifteen percent is too high, or, too low? Is the deal fair to small states and microstates that make their living in offering offshore financial/taxation services to global corporations, or, is it being foisted on them by bigger and more powerful countries in the international system?
The global minimum corporate tax deal has several advantages and disadvantages.
On the positive side, it would help reduce tax competition among countries and end the ‘race to the bottom’ by ensuring that companies pay a minimum amount of tax wherever they operate. This would also help to curb corporate tax avoidance and ensure that companies pay their fair share of taxes.
On the negative side, the deal could be seen as a restriction on the sovereignty of smaller countries and may hinder their ability to attract foreign investment.
Whether the deal will ultimately be good or bad for the US remains to be seen. On the one hand, it could help to level the playing field for American companies and prevent them from shifting profits overseas. On the other hand, it could also make the US a less attractive destination for foreign investment and lead to higher costs for American consumers.
As for the proposed minimum tax rate of fifteen percent, this is a matter of debate. Some experts believe that it is too low and that a higher rate would be more effective in curbing tax avoidance. Others argue that fifteen percent is a reasonable compromise that would be acceptable to most countries.
The deal may also be seen as unfair to small states and microstates that rely on offshore financial/taxation services to attract foreign investment. However, it should be noted that these countries have also been criticized for facilitating tax avoidance and evasion, so the deal could be seen as a positive step towards greater transparency and accountability in the global financial system.
Overall, the global minimum corporate tax deal is a complex issue with both pros and cons. While it may help to reduce tax competition and corporate tax avoidance, it could also have unintended consequences for smaller countries and may not be effective in the long run.
Ultimately, the success of the deal will depend on how it is implemented and enforced, and whether it is seen as a fair and equitable solution for all countries involved.
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