Policies are sometimes defined as an action Plan. Option B is correct.
Policies are specific guidelines, procedures, or protocols that outline the actions that should be taken in specific situations or circumstances. Policies can be used to guide decision-making, standardize processes, and ensure consistency across an organization.
Policies are usually created by management or leadership teams to provide guidance and direction to employees. They can cover a wide range of areas, including employee conduct, customer service, data security, and more. Policies are an essential component of effective governance, as they help ensure that organizations operate within legal and ethical boundaries and promote a culture of accountability.
By defining specific actions and procedures, policies help organizations respond to challenges and opportunities in a consistent and effective manner. They provide a framework for decision-making that can help reduce risk and improve outcomes. In this way, policies can be seen as an action plan that helps organizations achieve their goals and objectives. Option B is correct.
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a company's next annual dividend will be $12 and that dividends after one year will have a constant growth rate of 5%. if the required rate of return is 9%, then what should the stock price and dividend yield be?
A company's next annual dividend will be $12 and that dividends after one year will have a constant growth rate of 5%. If the required rate of return is 9%. The stock price should be $315 and the dividend yield should be 4%.
To find the stock price and dividend yield:We will need to use the Gordon growth model and the dividend yield formula.
Step 1: Apply the Gordon growth model formula to calculate the stock price.
Stock Price (P) = D1 / (r - g)
Where:
D1 = Dividend in the next year
r = Required rate of return
g = Growth rate of dividends
Step 2: Calculate the dividend in the next year (D1).
D1 = Annual Dividend * (1 + g)
D1 = $12 * (1 + 0.05)
D1 = $12 * 1.05
D1 = $12.60
Step 3: Calculate the stock price using the Gordon growth model formula.
Stock Price (P) = $12.60 / (0.09 - 0.05)
Stock Price (P) = $12.60 / 0.04
Stock Price (P) = $315
Step 4: Calculate the dividend yield.
Dividend Yield = D1 / Stock Price
Dividend Yield = $12.60 / $315
Dividend Yield = 0.04 or 4%
So, the stock price should be $315 and the dividend yield should be 4%.
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In a table for customers, the information about a single customer would reside in a single: a.) table b.) row c.) column d.) field
The information about a single customer in a table would reside in a single row. A table is made up of rows and columns, with each row representing a unique record and each column representing a specific attribute or piece of information about that record. The correct answer is option b.
In the case of a customer table, each row would represent a single customer and the columns would contain information such as their name, address, phone number, email, and any other relevant details.
The row is the basic unit of organization in a table and contains all of the information about a single record. This means that all of the customer's information, including their name, address, phone number, and any other details, would be stored in a single row. The columns in the table would contain the specific pieces of information about the customer, such as their name in the "Name" column and their address in the "Address" column.
It is important to keep the information for each customer in a single row to ensure that it is easy to access and manage. This also allows for efficient searching and sorting of the information in the table. By organizing the information in this way, it is easier to identify and analyze patterns and trends in the data, which can be useful for making business decisions and improving customer service.The correct answer is option b.
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b.) row. A single row in a table would contain all the information pertaining to a single customer, such as their name, address, email, phone number, and any other relevant details.
Each column in the row would correspond to a specific piece of information about the customer, such as their first name, last name, street address, city, state, zip code, etc. Together, all the rows in the table would contain information about multiple customers, with each row representing a unique customer. The fields within each row would represent individual pieces of data, such as the customer's name, address, or phone number.
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effective social media marketing requires engaging fans by . select one or more: a. listening to fans b. being authentic c. learning from fans
Effective social media marketing requires engaging fans by listening to fans, being authentic, and learning from fans.
By actively listening to what your fans have to say, you can better understand their needs and preferences, and tailor your content to meet those needs. Being authentic helps build trust and credibility with your audience, and shows that you are genuinely interested in their opinions and feedback. Learning from your fans allows you to continually improve your social media strategy, and stay ahead of the curve when it comes to emerging trends and best practices. Overall, engaging your fans through these key practices is essential for success in social media marketing.
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our uncle is going to give you $1,500 at the end of each month for the next 5 years. If the interest rate is 3% what is today's value of this promise and how much money will be accumulated at the end of the period?.
Today's value of this promise is $6,816.87. This is the present value of the stream of payments of $1,500 for a period of 5 years at an interest rate of 3%.
The present value calculation takes into account the time value of money, which holds that a given amount of money today is worth more than the same amount in the future because of the opportunity to earn a return on it in the interim.
At the end of the 5 year period, the total amount accumulated would be $7,500. This is the total of the payments of $1,500 each month for 60 months at the 3% interest rate. The interest earned would be $683.13 over the 5 year period, which is the difference between the present value and the future value.
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when a salesperson figures out what the customer's problem is, works with the customer to create a vision of a solution, and then comes up with a plan to realize that vision, it is called:
Consultative selling is an approach that prioritizes understanding the customer's needs, collaborating on a solution, and developing a plan to achieve that solution. It is a customer-centric approach that can lead to more successful sales and long-term customer relationships.
Consultative selling is a sales approach that prioritizes building relationships with customers and understanding their needs. It involves a process of active listening, questioning, and problem-solving, where the salesperson acts as a consultant or advisor rather than just a seller.
In consultative selling, the salesperson starts by identifying the customer's pain points, challenges, and goals. They then work collaboratively with the customer to envision a solution that will meet their specific needs. This involves understanding the customer's unique circumstances, such as their budget, timeline, and other constraints.
Once the vision of the solution is clear, the salesperson creates a plan to realize that vision. This may involve proposing different product or service options, outlining the benefits of each, and helping the customer choose the best one for their situation.
Consultative selling is effective because it puts the customer's needs first, rather than just trying to sell them a product or service. By taking the time to understand the customer's situation and working with them to find the right solution, the salesperson builds trust and credibility, which can lead to long-term customer relationships.
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Compute the price of a $1,000 par value, 16 percent (semi-annual payment) coupon bond with 6 years remaining until maturity assuming that the bond's yield to maturity is 9 percent? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).
The price of the coupon bond with is $1,332.02.
1. Since the coupon bond has semi-annual payments, divide the coupon rate and yield to maturity by 2:
16% / 2 = 8% and 9% / 2 = 4.5%.
2. Convert the percentages to decimals:
8% = 0.08 and 4.5% = 0.045.
3. Calculate the coupon payment per period:
$1,000 * 0.08 = $80.
4. Determine the number of periods until maturity:
6 years * 2 (semi-annual) = 12 periods.
5. Calculate the present value of the coupon payments using the annuity formula:
PV_Coupon = C * [(1 - (1 + r)^(-n)) / r],
where C is the coupon payment, r is the yield to maturity (in decimal form), and n is the number of periods.
PV_Coupon = $80 * [(1 - (1 + 0.045)^(-12)) / 0.045] ≈ $727.24.
6. Calculate the present value of the par value at maturity:
PV_Par = FV / (1 + r)^n,
where FV is the face value of the bond.
PV_Par = $1,000 / (1 + 0.045)^12 ≈ $604.78.
7. Finally, compute the bond price by adding the present values of the coupon payments and the par value:
Bond Price = PV_Coupon + PV_Par ≈ $727.24 + $604.78 ≈ $1,332.02.
The price of the $1,000 par value, 16 percent (semi-annual payment) coupon bond with 6 years remaining until maturity, assuming a yield to maturity of 9 percent, is approximately $1,332.02 (rounded to 2 decimal places).
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allison dated jacob, her supervisor, for three months. when allison told jacob that she did not want to see him anymore, he became obsessed with her. he started e-mailing her at work, dropping by her house, and stalking her after work. jacob gave allison a poor review, and eventually, she was fired. in this situation: group of answer choices allison can file a claim with the equal employment opportunity commission (eeoc) for sexual harassment because at the time the activity was no longer consensual. allison cannot file a claim with the equal employment opportunity commission (eeoc) for sexual harassment because the harassment was not severe. allison can file a claim with the equal employment opportunity commission (eeoc) for sexual harassment even if the activity was consensual. allison cannot file a claim with the equal employment opportunity commission (eeoc) for sexual harassment because she had been in a consensual relationship with jacob.
In this situation, Allison can file a claim with the Equal Employment Opportunity Commission (EEOC) for sexual harassment.
What's The claim by AllisonAllison can file a claim with the Equal Employment Opportunity Commission (EEOC) for sexual harassment because the activity was no longer consensual.
Even though she dated Jacob, her supervisor, for three months, when she told him she did not want to see him anymore, his behavior became obsessive and harassing.
Jacob's actions of emailing her at work, dropping by her house, and stalking her after work, were unwanted and created a hostile work environment.
Additionally, the fact that Jacob gave Allison a poor review and she was eventually fired, indicates that his behavior was affecting her employment.
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Suppose the returns on Asset Y are normally distributed. The average annual return for this asset over 50 years was 12.7 percent and the standard deviation of the returns was 22.1 percent. Based on the historical record, use the cumulative normal probability table (rounded to the nearest table value) in the appendix of the text to determine the probability that in any given year you will lose money by investing in common stock
The probability of losing money by investing in common stock in any given year is 26.11 percent
The given problem provides us with the mean and standard deviation of the returns for Asset Y. It also states that the returns on this asset follow a normal distribution. Based on this information, we can use the cumulative normal probability table to determine the probability of losing money by investing in common stock.
First, we need to determine the z-score for a negative return, which is calculated as:
z = (x - μ) / σ
where x is the negative return we are interested in, μ is the mean return, and σ is the standard deviation of the returns. For this problem, we want to find the z-score for a negative return of -1 percent:
z = (-1 - 12.7) / 22.1 = -0.637
Using the cumulative normal probability table, we can find the probability of a z-score less than or equal to -0.637. From the table, we find that the probability is 0.2611, rounded to the nearest table value.
Therefore, the probability of losing money by investing in common stock in any given year is 26.11 percent. This means that there is a significant chance of incurring losses while investing in Asset Y, based on its historical record. It is important to note that this probability is based on past performance and does not guarantee future outcomes.
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problem 10-36 (lo. 3, 6, 7, 8, 9, 11) marcus and madison are equal members of an llc. on january 1 of the current year, to acquire a one-third interest in the entity, nora contributed a parcel of land she had held for investment. (at this time, the entity was renamed mmn, llc.) nora had purchased the land for $120,000; its fair market value was $90,000 at the contribution date. a few years later, the llc sells nora's land for $84,000. at the beginning of that year, nora's tax basis capital account was $200,000 and marcus and madison's tax basis capital accounts were $170,000. question content area a. regarding the land sale, how much gain or loss is recognized and how is it allocated?
Nora's tax basis capital account was worth $200,000 at the start of that year, while Marcus and Madison's tax basis capital accounts were worth $170,000 each. Marcus, Madison, and Nora each face a $12,000 loss from the $36,000 loss associated with the land transaction. This loss is divided equally among the three of them.
In Problems 10-36, Marcus and Madison are equal members of an LLC, and Nora contributes a parcel of land to acquire a one-third interest in the entity. Nora's tax basis in the land is $120,000, while the fair market value at the contribution date is $90,000. Later, the LLC sells Nora's land for $84,000. At the beginning of that year, Nora's tax-basis capital account was $200,000, and Marcus and Madison's tax-basis capital accounts were $170,000.
To determine the gain or loss recognized from the land sale, you must first calculate the difference between the sale price and Nora's tax basis in the land:
Gain or loss = Sale price - Tax basis
Gain or loss = $84,000 - $120,000
Gain or loss = -$36,000
Since the result is negative, the LLC recognizes a loss of $36,000 from the land sale.
Now, to allocate the loss among the LLC members, you must consider their respective ownership interests in the entity. Marcus and Madison each have a one-third interest, while Nora has a one-third interest as well. Therefore, the $36,000 loss should be allocated equally among the three members:
Allocated loss per member = Total loss / Number of members
Allocated loss per member = $36,000 / 3
Allocated loss per member = $12,000
So, regarding the land sale, a $36,000 loss is recognized, and it is allocated equally among Marcus, Madison, and Nora, with each member bearing a $12,000 loss.
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Project Evaluation Kolby's Korndogs is looking at a new sausage system with an installed cost of $655,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $85,000. The sausage system will save the firm $183,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 22 percent and the discount rate is 8 percent, what is the NPV of this project?
Steps to calculate the NPV of this project: 1. Yearly Depreciation = 655,000 / 5 = $131,000; 2. 2. After-Tax Salvage Value to MV* (1 - Tc), 3. The salvage value after taxes is zero and equals 85,000* (1-.34), 4. After-Tax Salvage Value to $0 is $56,100.
Briefing:-5. OCF equals (Sales - Costs)(1 - TC) + (Depreciation).
\s6. OCF = (183,000.66) + (131,000.34) (131,000.34)
Cost to Start Production = Fixed Asset Investment - Net Working Capital Investment 7.
8. The cost to start production is $655,00 minus 35,000, or $690,000.
9. nap(8,-690000,{165320,165320,165320,165320,165320} = -$29,925.2
10. NPV is equal to -29,925.2 + [(Salvage Value + NWC) / (1 + r)t
11. NPV = -29,925.2 + [(56,100 + 35,000) / (1 + .08)^5]
12. NPV = -29,925.2 + 62,001.1
13. NPV = -29,925.2 + 62,001.1 = $32,075.90
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Garrett Industries turns over its inventory 7 times each year; it has an average collection period of 38 days and an average payment period of 31 days. The firm's annual sales are $3.2
million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and a 365-day year.
a. Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle.
b. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously. (1) Shortens the average age of inventory by 6 days. (2) Speeds the collection of accounts receivable by an average of 10 days. (3) Extends the average payment period by 8 days.
c. If the firm pays 17% for its resource investment, by how much, if anything, could it increase its annual profit as a result of the changes in part b?
d. If the annual cost of achieving the profit in part c is $36,000, what action would you recommend to the firm? Why?
a)The amount of resources needed to support the cash conversion cycle is:
Resources needed = $8,767.12 x 59.14 days = $517,898.63b) The new cash conversion cycle and resource investment is:
Cash conversion cycle = 46.14 days + 28 days - 39 days = 35.14 daysNew resources needed = $8,767.12 x 35.14 days = $307,959.63c) The increase in annual profit is the difference between the cost saved and the cost of achieving the changes:
Increase in annual profit = $35,689.63 - $36,000 = -$310.37d) The firm may consider other options to improve profitability.
Calculate the cash conversion cycle using the following formula?a. The cash conversion cycle can be calculated using the following formula:
Cash conversion cycle = Inventory conversion period + Receivables collection period - Payables deferral period
The inventory turnover is 7 times a year, so the inventory conversion period is:
Inventory conversion period = 365 days / 7 = 52.14 days
The receivables collection period is given as 38 days, and the payables deferral period is given as 31 days. Therefore:
Cash conversion cycle = 52.14 days + 38 days - 31 days = 59.14 days
The daily cash operating expenditure can be calculated by dividing the annual sales by 365:
Daily cash operating expenditure = $3.2 million / 365 = $8,767.12
The amount of resources needed to support the cash conversion cycle is the product of the daily cash operating expenditure and the cash conversion cycle:
Resources needed = $8,767.12 x 59.14 days = $517,898.63
Calculate the new cash conversion cycle and resource investment requirement?b. To calculate the new cash conversion cycle and resource investment requirement, we need to adjust the inventory conversion period, receivables collection period, and payables deferral period as follows:
Inventory conversion period = 52.14 days - 6 days = 46.14 days
Receivables collection period = 38 days - 10 days = 28 days
Payables deferral period = 31 days + 8 days = 39 days
Cash conversion cycle = 46.14 days + 28 days - 39 days = 35.14 days
New resources needed = $8,767.12 x 35.14 days = $307,959.63
If the firm pays 17% for its resource investment how much is the annual cost of the resources saved?c. The reduction in resources needed is:
Reduction in resources = $517,898.63 - $307,959.63 = $209,939
If the firm pays 17% for its resource investment, the annual cost of the resources saved is:
Annual cost = $209,939 x 0.17 = $35,689.63
The increase in annual profit is the difference between the cost saved and the cost of achieving the changes:
Increase in annual profit = $35,689.63 - $36,000 = -$310.37
How is the cost of achieving the changes is greater than the cost saved?
d. Based on the calculations above, the cost of achieving the changes is greater than the cost saved, resulting in a small decrease in annual profit. Therefore, it may not be worthwhile for the firm to make these changes. Instead, the firm may consider other options to improve profitability.
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On April 1, 2022, you purchased the bond corporate bonds with a 6.15% annual coupon rate a maturity date of October 1, 2037. Suppose that you paid $89.11 per share, what was the bond’s yield to maturity on the day you purchased it?
please post excel pictures and explanation
The bond's yield to maturity on the day of purchase was 7.51%.
To calculate the bond's yield to maturity, we can use the YIELD function in Excel. The YIELD function requires several inputs: settlement date, maturity date, annual coupon rate, bond price, face value, and the number of coupon payments per year.
Using the given information, we can input the following values into the YIELD function:
Settlement date: April 1, 2022
Maturity date: October 1, 2037
Annual coupon rate: 6.15%
Bond price: $89.11
Face value: $100
Number of coupon payments per year: 2
After inputting these values into the YIELD function, we get a yield to maturity of 7.51%. This means that if the bond is held until maturity, the investor can expect to earn a total annualized return of 7.51%, taking into account the coupon payments and the difference between the purchase price and face value.
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how is the risk-free interest rate determined? multiple choice it is equal to the interest rate on u.s. government debt. it is equal to the average interest rate over a period of time. it is equal to the rate of inflation. it is equal to the risk premium.
The risk-free interest rate is determined by the interest rate on U.S. government debt. It is equal to the interest rate on U.S. government debt.
The risk-free interest rate is the rate of return an investor can expect from an investment that has zero risk of default. The U.S. government is considered to be the safest borrower in the financial markets and has a near-zero probability of defaulting on its debt obligations. As a result, the interest rate on U.S. government debt, such as Treasury bills, notes, and bonds, is used as a proxy for the risk-free rate.
The U.S. Treasury sets the interest rates on its debt based on a variety of factors, including inflation, economic conditions, and demand for U.S. Treasury securities. Therefore, the risk-free rate is determined by market forces and is an important benchmark for pricing other investments and assessing the risk and return tradeoff of investments.
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the beatrice manufacturing company increased its merchandise inventory by $28,000 over the year. the company also granted its customers more liberal credit terms which increased the accounts receivable by $54,000. sales were $1,030,000 and the accounts payable decreased by $49,500. the gross profit on sales is 45%. marketing and administrative expenses were $167,000; this included depreciation expense of $26,000. what were the cash disbursements for the year?
The cash disbursements for the year were $865,000.To calculate the cash disbursements for the year, we need to use the following formula:
Cash disbursements = Cost of goods sold + Marketing and administrative expenses - Increase in accounts payable + Decrease in merchandise inventory + Increase in accounts receivable
First, we need to calculate the cost of goods sold using the gross profit percentage:
Gross profit = Sales * Gross profit percentage
$1,030,000 * 45% = $463,500
The cost of goods sold can be calcualted as Sales - Gross profit
$1,030,000 - $463,500 = $566,500
Next, we can calculate the cash disbursements using the formula:
Cash disbursements = $566,500 + $167,000 - (-$49,500) + $28,000 + $54,000
Cash disbursements = $566,500 + $167,000 + $49,500 + $28,000 + $54,000
Cash disbursements = $865,000.Therefore, the cash disbursements were $865,000.
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Suppose that the total debt on credit cards in 2019 was $1,088 billion, and that this was an increase from the year before. This would cause the M1 money supply to ____ and the M2 money supply to ______.
Group of answer choices
A. increase; increase
B. decrease; decrease
C. remain unchanged; remain unchanged
D. remain unchanged; increase
The correct answer is (A) increase; increase.
The terms "total debt," "M1," and "M2" are related to money supply in an economy.
If the total debt on credit cards in 2019 was $1,088 billion and this was an increase from the year before, this would cause the M1 money supply to increase and the M2 money supply to increase as well.
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The correct answer is A. increase; increase.
The M1 money supply includes cash, checking account deposits, and traveler's checks. Credit card debt is not included in M1, so an increase in credit card debt would not directly affect M1. However, an increase in credit card debt would likely lead to an increase in spending and therefore an increase in deposits in checking accounts, which are part of M1. As a result, M1 would increase.
The M2 money supply includes M1 plus savings account deposits, money market securities, and other time deposits. An increase in credit card debt would also likely lead to an increase in savings account deposits, as individuals may use savings to pay off their credit card balances. This would result in an increase in M2.
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shirley borrows $3,605 from second national bank. shirley will repay the loan in five equal payments of $1,000 each beginning at the end of year 1. what is the annual interest rate implicit in this agreement? multiple choice question. 27% 11% 10% 14% 12%
The annual interest rate implicit in this agreement is approximately 10%
the yearly interest price implicit in this agreement may be calculated using the present cost formula for an annuity:
present cost = charge x [(1 - (1 + r)^-n) / r]
wherein:
payment = $1,000
r = annual interest rate
n = wide variety of payments = 5
for the reason that Shirley borrowed $3,605 and will repay in 5 same payments, the prevailing price of the annuity is $3,605. therefore, we are able to set up the equation as:
$3,605 = $1,000 x [(1 - (1 + r)^-5) / r]
solving for r, we get:
r = 10.33%
Therefore, the once a year interest charge implicit on this settlement is about 10%
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Julia is a business owner and is worried that one of her suppliers may sue her. She has learned that segregated funds provide creditor protection, so she purchases a contract 3 months prior to placing her company into bankruptcy. Will her segregated funds be protected from creditors in this case?
No because she purchased the contract 3 months before placing her company into bankruptcy
Yes, because the assets are in her name and not in the company name
No because segregated funds' assets are held by the insurance company
Yes, as segregated funds provide creditor protection
Julia, as a business owner, is right to be concerned about the possibility of her suppliers suing her. She has learned that segregated funds provide creditor protection and has decided to purchase a contract 3 months prior to placing her company into bankruptcy. However, her decision to purchase the contract 3 months before the bankruptcy may not provide her with the protection she was hoping for.
Generally, segregated funds provide creditor protection as they are separate from the individual's estate and cannot be seized by creditors. However, in cases where the segregated funds were purchased with the intent of defeating creditors, the funds may not be protected. This is because such actions are seen as fraudulent and can result in the funds being seized by creditors.
In this case, Julia's purchase of the segregated fund contract 3 months prior to bankruptcy may be seen as an attempt to defeat creditors, and as such, the funds may not be protected. It is important to note that the exact circumstances of each case will be examined before a final decision is made. Overall, while segregated funds may provide creditor protection, it is important to consult with a financial advisor and ensure that any actions taken are legal and ethical.
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Maggie has a bond and a stock with a combined value of $1,500. The bond makes annual coupons starting next year and has a coupon rate of 16.24%. The bond also has a yield to maturity of 18%, a par value of $1,000, and matures in a decade. The stock is expected to make quarterly dividend payments that grow forever. The first payment of $2 is expected in one year, and the rate of return is 20%. What is the quarterly growth rate of the stock’s dividends?
The quarterly growth rate of the stock's dividends is 4.35%.
The current value of the bond can be calculated using the formula:
PV = C/(1+r)^1 + C/(1+r)^2 + ... + C/(1+r)^n + F/(1+r)^n Where: PV = present value (unknown) C = coupon payment r = yield to maturity n = number of periods Substituting the values given: PV = 162.40/(1+0.18)^1 + 162.40/(1+0.18)^2 + ... + 162.40/(1+0.18)^10 + 1000/(1+0.18)^10 PV = $547.66
we can use the formula for perpetuity: PV = C/r Where:PV = present value (unknown) C = dividend payment r = rate of return Substituting the values given: PV = 2/(0.20/4) PV = $40 Therefore, the current value of the stock is $40. The combined value of the bond and stock is given as $1,500. Therefore, $547.66 + $40 = $1,500 - X Where X is the total amount of dividends paid by the stock. Solving for X, we get: X = $912.34 This means that the stock will pay a total of $912.34 in dividends over the next decade.
we can use the formula: r = (1 + g)^4 - 1 Where: r = rate of return g = quarterly growth rate Substituting the values given: 0.20 = (1 + g)^4 - 1 g = 0.0435 Therefore, the quarterly growth rate of the stock's dividends is 4.35%.
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when a motorist who is involved in an automobile accident is covered under two or more liability insurance contracts, the following is true a. the insured person and the covered auto would share the coverage. b. the primary coverage is the coverage on the automobile and the other coverage is secondary. c. the primary coverage is the coverage on the insured person and the other coverage is secondary. d. it would depend on whether the motorist involved in the accident was at fault
When a motorist who is involved in an automobile accident is covered under two or more liability insurance contracts, primary coverage typically depends on terms of insurance policies, Correct answer is option B
In general, if the accident was caused by the insured person, the primary coverage would be the liability coverage on the automobile, and the other coverage would be secondary.
This means that the insurance company for the automobile would be responsible for paying the damages up to the policy limits, and the insurance company for the insured person would only be responsible for paying any damages that exceed the limits of the primary policy.
On the other hand, if the accident was not caused by the insured person, the primary coverage would be the liability coverage on the insured person, and the other coverage would be secondary.
In this case, the insurance company for the insured person would be responsible for paying the damages up to the policy limits, and the insurance company for the automobile would only be responsible for paying any damages that exceed the limits of the primary policy.
However, it is important to note that the specific terms of the insurance policies may vary, and some policies may have different rules for determining primary and secondary coverage. It is important for motorists to carefully review their insurance policies to understand their coverage in the event of an accident.
Additionally, if there is any confusion or disagreement between insurance companies regarding which policy is primary or secondary, it may be necessary for the insured person to seek legal advice to resolve the issue. Correct answer is option B
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brewster's is considering a project with a life of 5 years, an initial cost of $120,000, and a discount rate of 12 percent. the firm expects to sell 2,100 units a year at a cash flow per unit of $20. the firm will have the option to abandon this project after three years at which time it could sell the project for $50,000. at what level of sales should the firm be willing to abandon this project at the end of the third year?
The firm should be willing to abandon the project at the end of the third year if the annual sales level falls below 2,372 units.
To determine the sales level at which the firm should abandon the project, we first need to calculate the present value of the project's cash flows for the remaining two years, and then compare it to the abandonment value.
1. Calculate annual cash flows: 2,100 units * $20/unit = $42,000
2. Calculate the present value of cash flows for years 4 and 5:
PV(Year 4) = $42,000 / (1 + 0.12)⁴ = $26,682.07
PV(Year 5) = $42,000 / (1 + 0.12)⁵ = $23,823.26
3. Add the present values: $26,682.07 + $23,823.26 = $50,505.33
4. Since the abandonment value is $50,000, we need to find the sales level that would result in a cash flow with a present value equal to $50,000 over the remaining two years.
5. Solve for the new sales level: ($50,000 / ($26,682.07 + $23,823.26)) * 2,100 units = 2,372 units
Therefore, the firm should abandon the project at the end of the third year if annual sales fall below 2,372 units.
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MM Model with Zero Taxes Qulipen Company is unlevered and has a value of $25 billion. An otherwise identical but levered firm finances 45% of its capital structure with debt. Under the MM rero-tax model, what is the value of the levered firm? Enter your answer in billions. For example, an answer of $1 billion should be entered as 1, not 1,000,000,000. Round your answer to the nearest whole number 5.
The value of the levered firm under the MM zero-tax model is approximately $36 billion.
According to the MM zero-tax model, the value of the levered firm is equal to the value of the unlevered firm plus the tax shield value of debt. Since the tax rate is assumed to be zero in this scenario, the tax shield value of debt is simply the amount of debt multiplied by the cost of debt.
Let's assume that the cost of debt for the levered firm is 6% and the cost of equity for both the unlevered and levered firms is 10%. The capital structure of the levered firm is 45% debt and 55% equity. Therefore, the value of debt is:
Value of debt = 45% x Total value of levered firm
= 0.45 x ($25 billion + Value of debt)
Simplifying this equation, we get:
Value of debt = $11.11 billion
The tax shield value of debt is then:
Tax shield value of debt = Value of debt x Cost of debt
= $11.11 billion x 6%
= $0.67 billion
Therefore, the value of the levered firm is:
Value of levered firm = Value of unlevered firm + Tax shield value of debt
= $25 billion + $0.67 billion
= $25.67 billion
Rounding this to the nearest whole number 5, we get approximately $30 billion.
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in the decision-making unit, the most important role determining whether your product sells is:
In the decision-making unit, there are multiple roles that influence whether or not a product sells. However, one of the most important roles is the decision maker.
The decision maker is the individual who ultimately makes the final decision about whether to purchase the product or not. This person is typically the most influential member of the decision-making unit, and their opinion can make or break a sale.
To effectively sell a product, it is crucial to understand the decision maker's needs, preferences, and decision-making process. This involves understanding their role in the decision-making unit and identifying what factors influence their decision-making process. Factors that may influence the decision maker's decision can include personal preferences, budget constraints, the needs of the organization, and the opinions of other members of the decision-making unit.
To effectively target the decision maker, companies must employ a targeted marketing strategy that speaks directly to the decision maker's needs and preferences. This may involve creating content that is tailored to their specific industry or interests, using persuasive language and compelling visuals, and highlighting the unique benefits and features of the product.
Ultimately, the success of a product depends on a variety of factors, including the quality of the product, the strength of the marketing strategy, and the overall effectiveness of the sales team. However, by understanding the role of the decision maker in the decision-making unit and targeting them with a targeted marketing strategy, companies can significantly increase their chances of success.
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The customer. Their preferences and needs drive the decision-making process. Understanding and catering to these factors is crucial for product success.
The decision-making unit (DMU) is a group of individuals who participate in the purchase decision process. While each member has a role to play, the most critical factor in determining whether a product sells is the customer. Ultimately, it is their preferences, needs, and motivations that drive the decision-making process. Understanding and catering to these factors is crucial for product success. Marketers must consider factors such as demographic and psychographic characteristics, pain points, and purchasing behaviors to craft a compelling value proposition that resonates with the customer. By doing so, they can effectively communicate the benefits of their product and increase the likelihood of a successful sale.
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managers of international companies that are attempting to develop a competitive advantage faec a formidable challenge because
Managers of international companies that are attempting to develop competitive advantage face a formidable challenge because time, talent, and money are scarce.
An international company is an offshore entity created in accordance with the laws of some jurisdictions as a tax-neutral business that is typically restricted in terms of the activities it may engage in within the jurisdiction in which it is incorporated, though this is not always the case. An IBC or its owners may be subject to taxation in other jurisdictions even though they are not subject to taxation in the country where they were formed, for example, if they live in a nation with "controlled foreign corporation" laws.
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assume that catherine has the preferences shown in the above table. also assume that the price of a can of pepsi is $3.00 and that the price of a slice of pizza is $2.00. if she has $16 available to spend, what combination of pepsi and pizza will be her consumer optimum?
Based on the preferences shown in the table, Catherine has a diminishing marginal rate of substitution between Pepsi and pizza, meaning she is willing to give up fewer slices of pizza for an additional can of Pepsi as she consumes more of each.
To find her consumer optimum, we need to find the combination of Pepsi and pizza that maximizes her utility given her budget constraint.
Let x be the quantity of Pepsi and y be the quantity of pizza that Catherine consumes. Then, we can set up the following optimization problem:
Maximize U(x,y) = 3x + 2y
Subject to 3x + 2y = 16
Solving this problem using Lagrange multipliers, we find that the optimal consumption bundle is (4,4), meaning Catherine should buy 4 cans of Pepsi and 4 slices of pizza to maximize her utility given her budget constraint. This combination costs $24, which is more than her available budget, so Catherine will need to make a trade-off between consuming less of each good or spending more than her budget.
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Ordinary shares in Company S are listed on the London Stock Exchange. Company T has announced a dividend of 32p per ordinary share for the current year. There will be only one dividend payable for the year. It is forecast that Company T will announce a dividend of 34p per ordinary share for next year and that there will be only one dividend payable for the year. Company T's shares have a market price of 274.56p Calculate Company T's cost of equity capital based on the information above. Give your answer as a percentage, without the percent sign, to 2 decimal places. For example, for 8.333% enter 8.33
The investors would require a return of at least 12.38% in order to invest in Company T's shares
To calculate Company T's cost of equity capital, we need to use the dividend discount model. This model assumes that the current market price of a share is equal to the present value of all future dividends. Therefore, we can use the following formula: Cost of Equity = (Dividend for next year / Market Price per share) + Growth Rate
Using the information provided, we can calculate the cost of equity as follows: Cost of Equity = (0.34 / 2.7456) + (0.034 / 2) ,Cost of Equity = 0.1238 or 12.38%
Therefore, Company T's cost of equity capital is 12.38%. This means that investors would require a return of at least 12.38% in order to invest in Company T's shares.
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How can a company use the information it has gleaned from benchmarking and value chain analysis?
A. Sabotage the competition
B. Improve profitability
C. Eliminate its own cost or value disadvantages
D. Enhance competitiveness
A company can use the information it has gleaned from benchmarking and value chain analysis: Eliminate its own cost or value disadvantages. The correct option is C
The appropriate ways for a company to utilize this information include:
B. Improve profitability: By comparing its processes, products, and services to those of competitors, a company can identify areas for improvement and implement changes that can enhance profitability.
C. Eliminate its own cost or value disadvantages: Benchmarking and value chain analysis help a company recognize any cost or value disadvantages it might have. This knowledge can then be used to address and eliminate these disadvantages, making the company more competitive in the market.
D. Enhance competitiveness: Benchmarking allows a company to learn from best practices in the industry and apply those findings to its own processes. Additionally, value chain analysis helps a company understand how it can create and deliver more value to customers, ultimately enhancing its competitiveness in the market.
To summarize, a company can use the information gleaned from benchmarking and value chain analysis to improve profitability, eliminate its own cost or value disadvantages, and enhance competitiveness.
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Complete question:
How can a company use the information it has gleaned from benchmarking and value chain analysis?
A. Sabotage the competition
B. Improve profitability
C. Eliminate its own cost or value disadvantages
D. Enhance competitiveness
Abby also has a $400/month car loan payment and a $150/month student loan payment. If her lender requires that her Debt-to-Income ratio not exceed 43%, what does her annual gross income need to be to qualify for this loan?
Abby's annual gross income needs to be at least $41,860.44 to qualify for the loan, assuming she has no other debts.
To calculate the annual gross income required for Abby to qualify for this loan, we need to use the Debt-to-Income (DTI) ratio formula:
DTI ratio = (Total monthly debt payments / Monthly gross income) x 100%
We know that Abby's total monthly debt payments are $1,500 ($1,000 for the proposed mortgage, $400 for the car loan, and $150 for the student loan), and her DTI ratio cannot exceed 43%. So we can write:
43% = ($1,500 / Monthly gross income) x 100%
Solving for Monthly gross income:
Monthly gross income = $1,500 / (43% / 100%) = $3,488.37
To calculate the required annual gross income, we simply multiply the monthly gross income by 12:
Annual gross income = $3,488.37 x 12 = $41,860.44
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Your broker charges $0.0013 per share per trade. The exchange charges $0.0077 per share per trade for removing liquidity and credits $0.0059 per share per trade for adding liquidity. The current best BID price for stock XYZ is $64.97 per share, while the current best ASK price is $64.98 per share. You post an order to buy XYZ at the current best ASK price, and your buy order is executed. Shortly after, the best BID and ASK prices move lower (down) by one cent each. Immediately, you post an order to sell XYZ at the new best ASK price and wait. Shortly after, the best BID and ASK prices move higher (up) by one cent each. Your sell order is executed. What will be your net loss per share to buy and sell XYZ after considering the commissions and any exchange fees or credits?
Your net loss per share to buy and sell XYZ after considering the commissions and any exchange fees or credits is $0.0144.
To calculate the net loss per share, follow these steps:1. Buy XYZ at the best ASK price: $64.98 per share.
Broker's fee: $0.0013 per share.
Exchange fee for removing liquidity: $0.0077 per share.
Total cost to buy one share: $64.98 + $0.0013 + $0.0077 = $64.989 per share.
2. The best BID and ASK prices move lower by one cent each.
New best ASK price: $64.97 per share.
3. Post an order to sell XYZ at the new best ASK price: $64.97 per share.
Exchange credit for adding liquidity: $0.0059 per share.
4. The best BID and ASK prices move higher by one cent each.
Your sell order is executed at the previous ASK price: $64.97 per share.
Broker's fee: $0.0013 per share.
Total amount received for selling one share: $64.97 - $0.0013 + $0.0059 = $64.9746 per share.
5. Calculate the net loss per share.
Net loss = Total cost to buy one share - Total amount received for selling one share
Net loss = $64.989 - $64.9746 = $0.0144 per share.
Your net loss per share to buy and sell XYZ is $0.0144.
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A company decides to issue 1,000,000,000 shares of common stock and sells 500,000,000 of these shares to the public in an initial offering. The remainder of the shares are held as Treasury Stock. After the first day of trading, the shares are selling in the stock market for $8 per share. If the company immediately decides to split its common stock, 2 for 1:a. How many shares will be outstanding after the split?b. What will be the share price of the common?c. What will be the market value of the company after the split?
The number of shares outstanding after the split will be 1,000,000,000 outstanding shares.
The share price of the common shares would be $ 4 per share.
The market value of the compare after the split would be $ 8 billion.
How to find the number of shares ?After the split, the number of outstanding shares will double, since the split is 2 for 1. Therefore, there will be 500,000,000 x 2 = 1,000,000,000 outstanding shares.
After the split, the share price will be halved, since the total value of the company is still the same but the number of shares has doubled. Thus, the share price will be $8 / 2 = $4 per share.
The market value of the company will remain the same after the split, since the total value of the company is still $8 billion (1,000,000,000 shares x $8 per share). Therefore, the market value of the company after the split will still be $8 billion.
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establishing career paths or planned sequences of advancement for workers through different positions represents what type of recruiting?
Establishing career paths or planned sequences of advancement for workers through different positions represents internal recruiting
What's internal recruitingInternal recruiting involves promoting current employees to fill open positions within the organization. This approach has several advantages, such as increased employee loyalty, improved retention rates, and reduced training costs.
Career pathing is a strategy that involves developing a series of job roles that employees can progress through within the organization. This approach enables employees to acquire the skills, knowledge, and experience required for higher-level positions, and it provides a clear path for advancement.
Career pathing also helps organizations to identify and develop future leaders, which can enhance their long-term success.
Overall, internal recruiting and career pathing can be effective strategies for organizations that prioritize employee development and retention. c
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