The idea that a normal yield curve is most frequently observed can be explained by the expectations and liquidity premium theories. The correct answer is c.
According to the expectations theory, the shape of the yield curve depends on the market's expectations of future short-term interest rates. In a normal yield curve, short-term interest rates are expected to be lower than long-term interest rates, reflecting the expectation that the economy will grow and that inflation will remain moderate over time.
The liquidity premium theory suggests that investors require a higher rate of return for investing in long-term bonds because of the increased risk associated with tying up their money for a longer period.
This increased risk is often referred to as "term risk." The liquidity premium theory implies that a normal yield curve, where long-term rates are higher than short-term rates, is the result of investors demanding compensation for holding longer-term securities.
Therefore, the combination of these two theories can help explain why a normal yield curve is most frequently observed in the market. The segmented theory (option b) is not relevant to this question, as it suggests that different investors have different preferences for different maturities and do not trade among them.
The correct answer is c.
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a secured creditor may repossess goods without resorting to the judicial process as long as the repossession is accomplished without:
A secured creditor may repossess goods without resorting to the judicial process as long as the repossession is accomplished without breaching the peace or violating any laws. In this context, the term "content loaded" refers to the importance of understanding the conditions under which a secured creditor can legally repossess goods.
To repossess goods without resorting to the judicial process, a secured creditor must first have a valid security interest in the goods, which is typically established through a security agreement. This security interest gives the creditor the right to repossess the goods if the debtor defaults on their obligations, such as failing to make timely payments.
The repossession must be accomplished without breaching the peace. This means that the secured creditor cannot use force or threats, create a disturbance, or enter the debtor's private property without permission. It also means that the creditor cannot repossess the goods if the debtor objects at the time of repossession.
To avoid any conflict, creditors often employ professional repossession agents who are trained to handle such situations.
Furthermore, the repossession must not violate any laws, including local, state, and federal regulations. For example, a creditor cannot engage in deceptive practices, discrimination, or harassment during the repossession process. Additionally, creditors must follow specific rules and regulations regarding the disposal or resale of the repossessed goods.
In summary, a secured creditor may repossess goods without resorting to the judicial process as long as the repossession is accomplished without breaching the peace or violating any laws. Understanding these conditions is crucial for both creditors and debtors to protect their rights and avoid any potential legal issues.
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contribution margin per unit product a $ 40 product b 32 product c 45 the product mix is 51%/25%/24%. required:
The weighted average contribution margin for the given product mix is $39.2. This means that on average, the business earns $39.2 in contribution margin for every unit of product sold in this product mix.
To calculate the weighted average contribution margin for the given product mix, we need to first find the contribution margin per unit for each product. As given in the problem statement, the contribution margin per unit for product A is $40, for product B is $32, and for product C is $45.
Next, we need to calculate the weighted average contribution margin by multiplying the contribution margin per unit of each product with its corresponding product mix percentage and then adding up the results. The formula for weighted average contribution margin is:
Weighted Average Contribution Margin = (Contribution Margin of Product A x Product A Mix Percentage) + (Contribution Margin of Product B x Product B Mix Percentage) + (Contribution Margin of Product C x Product C Mix Percentage)
Substituting the given values, we get:
Weighted Average Contribution Margin = ($40 x 0.51) + ($32 x 0.25) + ($45 x 0.24)
= $20.4 + $8 + $10.8
= $39.2
It is important to note that contribution margin is not the same as profit. It only accounts for the variable costs associated with producing and selling a product and does not take into consideration the fixed costs and overhead expenses. However, knowing the contribution margin per unit can help businesses make informed decisions regarding pricing, production, and product mix.
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martin corporation currently sells widgets at a price of $9.00 per unit. its variable cost is $4.00 per unit while fixed costs are $400,000. at what quantity sold will the firm breakeven? a. 44,444 units b. 80,000 units c. 100,000 units d. 50,000 units
In order for the business to break even and cover all of its total costs, 80,000 units must be sold. The business will lose money if it sells fewer than 80,000 units, while making money if it sells more than 80,000 units.
The answer is (b) 80,000 units
The total cost is the sum of the variable and fixed costs.We can determine the contribution margin per unit, which is equal to the selling price less the variable cost per unit, using the information provided:
Contribution margin per unit = Selling price - Variable cost per unit
= $9.00 - $4.00
= $5.00
The contribution margin per unit to calculate the breakeven point in units:
Breakeven point (units) = Fixed costs ÷ Contribution margin per unit
= $400,000 ÷ $5.00
= 80,000 units
The answer is (b) 80,000 units
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Cash management' is another area of responsibility which you will have as a financial manager. What would a financial manager need to do for the business in terms of 'cash management?
As a financial manager, one of your primary responsibilities will be managing the cash flow of the business. This involves ensuring that the company has enough cash on hand to meet its financial obligations and maintain operations.
To do this, you will need to monitor and project cash inflows and outflows, create and manage a cash budget, and make strategic decisions about when and how to invest excess cash.
Additionally, you may need to negotiate with lenders or investors to secure financing or manage debt, as well as implement policies and procedures to prevent fraud or misuse of funds.
Effective cash management is critical to the success of any business, as it enables the company to meet its financial obligations, pursue growth opportunities, and maintain financial stability.
By carefully managing the company's cash flow, a financial manager can help ensure the long-term success of the business.
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A company had €200 million shareholders' equity on January 1, 2020.
During 2020, the company made €20 million net income and paid 63 million cash dividends. The company didn't issue any new common stod or buy had common stocks during the year. On December 31, 2020, the company reported €227 million shareholders equity in the balance sheet How much is the company's comprehensive income in 2020? A. €630 million B. €10 million. C. €20 million
The correct answer is C. €20 million. This is because the company's comprehensive income for the year is equal to its net income plus the changes in shareholders' equity.
For the given company, net income was €20 million, and the change in shareholders' equity was €27 million (227 million at the end of the year minus 200 million at the beginning of the year).
Thus, the company's comprehensive income for the year was €20 million + €27 million = €47 million. However, since the company paid out €63 million in cash dividends, the company's comprehensive income was reduced to €20 million = €47 million - €63 million. This means that the company's comprehensive income in 2020 was €20 million.
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Read the scenario, and answer the following questions.
You work for a sporting goods retailer, and you’re trying to find ways to increase customers’ interest in cycling products. You decide to write a blog post explaining the health benefits of cycling.
Which is the best opening for your blog post?
a. Sales have been down in our cycling department, which is unfortunate because cycling has many health benefits. If you equip yourself with the right gear at our stores, you could begin a new healthy, adventure.
b. Cycling improves cardiovascular fitness, strengthens muscles, burns calories, and increases your immunity.
c. Does getting back in shape seem like an impossible task? Have you given up your New Year’s resolution to drop pounds and gain stamina and strength? What if I told you getting healthy is as easy as riding a bike?
d. Cycling is good for you for many reasons. The following list explains the health benefits of cycling.
The best opening for the blog post would be option c: "Does getting back in shape seem like an impossible task? Have you given up your New Year’s resolution to drop pounds and gain stamina and strength? What if I told you getting healthy is as easy as riding a bike?"
This opening is engaging and personal, drawing the reader in and making them feel like the blog post is specifically tailored to their interests and needs. It also presents cycling as a solution to a common problem many people face: struggling to get in shape and maintain a healthy lifestyle.
This opening is engaging and invites readers to learn more about the benefits of cycling.
The introduction is more important than any other paragraph in the post. Every word counts. When you start a new piece of content, it’s easy to waste time trying to craft the perfect introduction. It’s more efficient to get started by writing your main points.
Second, you understand the topic better once you have written the meat of your content. You may find that introduction you spent hours crafting no longer fits your central thesis once you finish the rest of the piece.
If you have a moment of inspiration, write a brief introduction as a placeholder. You can return to it once you’re done with the rest of the post.
Therefore, the correct answer is option c: Does getting back in shape seem like an impossible task? Have you given up your New Year’s resolution to drop pounds and gain stamina and strength? What if I told you getting healthy is as easy as riding a bike?
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Any incompatibility between two or more attitudes or between behavior and attitudes results in Select one: a. personality clarification b. cognitive dissonance c. values clarification d. institutional dissonance e. affective reactance
Any incompatibility between two or more attitudes or between behavior and attitudes results in cognitive dissonance. Therefore, the correct answer is (b).
Cognitive dissonance refers to the psychological discomfort that arises from holding two or more conflicting attitudes, beliefs, or values or when there is a discrepancy between attitudes and behaviors.
This discomfort motivates people to change their attitudes or behaviors to reduce the dissonance and restore cognitive consistency.
Cognitive dissonance theory has been widely studied in social psychology and has been used to explain a wide range of phenomena, including attitude change, decision-making, and persuasion.
The theory suggests that people have a natural desire to maintain consistency between their thoughts, beliefs, and actions, and that the experience of cognitive dissonance can lead to significant psychological discomfort and tension.
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B. Cognitive dissonance
A person who possesses two or more conflicting views or values or who acts in a way that opposes those beliefs or values may suffer cognitive dissonance, a psychological phrase that describes the mental discomfort they feel. When someone is presented with the knowledge that contradicts their preexisting beliefs or actions, they experience this discomfort. People may change their values, beliefs, or behaviors to alleviate this pain while still being consistent with their views. When a buyer must select between two brands or items with comparable qualities but contrasting costs or societal views, cognitive dissonance may occur. By giving their target audience additional knowledge, assurance, and social evidence, marketers may lessen this contradiction.
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Indicate whether the following statement is true or false. Having all economic decisions made by centralized planning or decentralized decision making is the key factor determining the success of a government's role in economic markets. A. False B. True
The statement "Having all economic decisions made by centralized planning or decentralized decision making is the key factor determining the success of a government's role in economic markets" is True.
While there are many factors that can influence a government's success in economic markets, the approach to decision-making is indeed a key factor. Centralized planning involves the government making all economic decisions and controlling resources, while decentralized decision making allows for more individual and market-based choices.
In a centrally planned economy, the government decides on the production and distribution of goods and services. This can lead to efficiency in resource allocation and addressing social needs, but may also result in a lack of innovation and limited choices for consumers. On the other hand, a decentralized system allows for more competition and innovation, but may lead to income inequality and externalities that negatively impact society.
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1) When considering the investor's desired outcome, if you have
generated very large returns in the first five or ten years, what
should your rebalancing strategy be?
**can rebalance portfolio ever
Hi! When considering the investor's desired outcome, when you have generated large returns in the first five or ten years, you should regularly review and rebalance your portfolio to maintain your desired outcome, while also considering risk levels, diversification, and any life events that may impact your investment goals.
1) Review your investment goals: Reassess your desired outcome and determine if your current portfolio allocation still aligns with your objectives.
2) Assess portfolio risk: Evaluate the risk levels of your portfolio based on the large returns generated, and consider adjusting the allocation to maintain an appropriate risk level.
3) Rebalance periodically: Regularly review your portfolio and rebalance as needed to maintain the desired asset allocation. This can be done either at a fixed interval (e.g., annually) or when the allocation deviates from the target by a certain percentage.
4) Diversify investments: Ensure that your portfolio remains diversified across different asset classes, sectors, and regions to minimize risk and protect against potential market downturns.
5) Adjust for life events: As you approach major life events, such as retirement, you may need to adjust your desired outcome and rebalancing strategy to align with your new goals and risk tolerance.
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if a company has net income of $5,700,000, weighted average shares of common stock of 1,500,000, and retained earnings of $37,900,000, what is its eps?
The company's Earnings Per Share (EPS) is $3.80.
EPS = Net Income / Weighted Average Shares of Common Stock
EPS = $5,700,000 / 1,500,000
EPS = $3.80 per share
Note that retained earnings is not used in the calculation of EPS.
They represent the cumulative profits that the company has earned and kept over time, rather than the current year's earnings.
Earnings per share, or EPS, is a crucial financial metric that shows a company's profitability. It is determined by dividing the net income of the business by the total number of outstanding shares.
(Net Income - Preferred Dividends) / Weighted Average Shares Outstanding is the formula for EPS. The first formula calculates EPS using the total number of shares outstanding, but in reality, analysts might compute the denominator using the weighted average shares outstanding.
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regulation qa.separated commercial banking and investment banking.b.restricted interstate branching.c.set the ceiling on interest rates that banks could charge on their loans.d.set the ceiling on interest rates that banks could pay on their deposits.
The options provided are regulatory measures that were implemented in the United States as part of financial regulatory reforms.
a) Separated commercial banking and investment banking: This refers to the Glass-Steagall Act of 1933, which was a regulatory measure that separated commercial banking (taking deposits and making loans) from investment banking (underwriting and dealing in securities).
b) Restricted interstate branching: This refers to the Bank Holding Company Act of 1956, which imposed restrictions on the ability of banks to establish branches across state lines.
c) Set the ceiling on interest rates that banks could charge on their loans: This refers to the Regulation Q, which was implemented in 1933 as part of the Glass-Steagall Act.
d) Set the ceiling on interest rates that banks could pay on their deposits: This also refers to Regulation Q, which set limits on the interest rates that banks could pay on their deposits, including savings accounts and other types of deposits.
It's worth noting that some of these regulatory measures, such as the Glass-Steagall Act and Regulation Q, have been repealed or modified over time as financial regulations and policies have evolved.
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Lai's great aunt left him $20,000 when she died. He can invest the money to earn 12% per year. If he spends $3,540 per year out of this inheritance, how long will the money last?
The money will last approximately 17.54 years if Lai spends $3,540 per year and earns 12% interest annually on his inheritance.
Lai's great aunt left him $20,000 when she died, and he can invest the money to earn 12% per year. If he spends $3,540 per year out of this inheritance, you'd like to know how long the money will last.
Here's a step-by-step explanation:
1. Calculate the annual interest earned: $20,000 * 12% = $2,400
2. Calculate the net annual loss: $3,540 (annual expenses) - $2,400 (annual interest) = $1,140
3. Divide the initial inheritance by the net annual loss to determine how long the money will last: $20,000 / $1,140 ≈ 17.54 years
So, the money will last approximately 17.54 years if Lai spends $3,540 per year and earns 12% interest annually on his inheritance.
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"A company has the following capital structure: $5 million from
bonds, $25 million from preferred stock, and $100 million from
common stock. The cost of each source of funding is as follows:
Bonds = 6.000%; Common = 9.75%; Preferred = 6.50%. Compute the company's WACC.
The company's weighted average cost of capital (WACC) is 8.69%.
To compute the WACC, follow these steps:
1. Determine the proportions of each source of funding:
- Bonds: $5 million / $130 million = 0.0385
- Preferred stock: $25 million / $130 million = 0.1923
- Common stock: $100 million / $130 million = 0.7692
2. Multiply the proportions by their respective costs:
- Bonds: 0.0385 * 6.000% = 0.231%
- Preferred stock: 0.1923 * 6.50% = 1.250%
- Common stock: 0.7692 * 9.75% = 7.500%
3. Add up the weighted costs to obtain the WACC:
- WACC = 0.231% + 1.250% + 7.500% = 8.69%
In summary, the company's WACC is 8.69%, which represents the average cost of capital from all three sources, weighted by their proportions in the capital structure.
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It is December 31, the end of the fiscal year. During December, employees earned $800,000 in salaries, but paychecks do not get issued until January 2
The adjusting entry required on December 31 is to recognize the accrued salaries expense for the month of December, even though paychecks will not be issued until January 2. This entry will increase the salaries expense and payable accounts on the balance sheet.
The adjusting entry for salaries earned but not yet paid at the end of the period is a common accrual adjusting entry. This entry aims to recognize the expenses incurred in the current period, even though the related cash payments will occur in a future period.
The journal entry to record this adjusting entry on December 31 would be:
Salaries Expense $800,000
Salaries Payable $800,000
This recognizes the expense for December and records the corresponding liability for the unpaid salaries. After this adjusting entry is recorded, the salaries payable balance on the balance sheet will reflect the amount owed to employees for the December salaries, and the salaries expense on the income statement will accurately reflect the total salaries earned by employees during the period.
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The correct question is:
It is December 31, the end of the fiscal year. During December, employees earned $800,000 in salaries, but paychecks do not get issued until January 2.
Which journal entry reflects the adjusting entry needed on December 31?
on may 1, 2021, mosby company received an order to sell a machine to a customer in canada at a price of 2,000,000 mexican pesos. the machine was shipped and payment was received on march 1, 2022. on may 1, 2021, mosby purchased a put option giving it the right to sell 2,000,000 pesos on march 1, 2022 at a price of $190,000. mosby properly designates the option as a fair value hedge of the peso firm commitment. the option cost $3,000 and had a fair value of $3,200 on december 31, 2021. the following spot exchange rates apply: date spot rate may 1, 2021 $ 0.095 december 31, 2021 $ 0.094 march 1, 2022 $ 0.089 what was the impact on mosby's 2021 net income as a result of this fair value hedge of a firm commitment?
The impact on Mosby's 2021 net income as a result of this fair value hedge of a firm commitment was a decrease of $1,800.
To determine the impact on Mosby's 2021 net income as a result of this fair value hedge of a firm commitment, we will need to consider the changes in the value of the put option and the firm commitment. Here are the steps to calculate the impact:
Step 1: Determine the change in the value of the put option.
The put option had an initial cost of $3,000 and a fair value of $3,200 on December 31, 2021. The change in the value of the put option is:
$3,200 - $3,000 = $200 gain
Step 2: Determine the change in the value of the firm commitment.
On May 1, 2021, the spot exchange rate was $0.095, so the value of the 2,000,000 Mexican pesos firm commitment was:
2,000,000 pesos * $0.095 = $190,000
On December 31, 2021, the spot exchange rate was $0.094, so the value of the firm commitment was:
2,000,000 pesos * $0.094 = $188,000
The change in the value of the firm commitment is:
$188,000 - $190,000 = -$2,000 loss
Step 3: Calculate the net impact on Mosby's 2021 net income.
The net impact on Mosby's 2021 net income is the sum of the change in the value of the put option and the change in the value of the firm commitment:
$200 gain + (-$2,000 loss) = -$1,800
So, due to the impact on Mosby's 2021 net income their fair value hedge commitment was a decrease of $1,800.
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true or false? a structural sign that health care is evolving to a true retail market is that retail centers set to receive health care are now appearing nationally.
The statement '' structural sign that health care is evolving to a true retail market is that retail centers set to receive health care are now appearing nationally'' is true because one of the signs that the healthcare industry is evolving into a true retail market is the emergence of retail centers that offer healthcare services.
These centers are often located in high-traffic areas such as shopping malls, strip malls, and other retail locations. They offer convenience and accessibility to consumers, who can receive healthcare services without having to visit a traditional hospital or clinic.
In recent years, retail centers offering healthcare services have been popping up all over the country, providing a range of services from routine checkups to urgent care. The trend is likely to continue as more consumers seek out convenient, affordable healthcare options, and the healthcare industry looks for new ways to meet their needs.
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Bridgewater Inc. is expecting sales of $620 in April, $640 in May, $800 in June, and $800 in July. The firm collects 30% of sales in the month of the sale, 50% in the month after the sale, and 20% in the second month after the sale. What will be the accounts receivable balance at the end of June? Express your answer to the nearest dollar and do not include the $ sign. Your Answer:
The accounts receivable balance at the end of June would be $540.
To calculate this, first find the amount of sales that will still be outstanding at the end of June. For April sales, 50% will still be outstanding (since 30% was collected in April and 20% will be collected in May). So April sales outstanding will be $620 * 50% = $310.
For May sales, only 20% will still be outstanding at the end of June (since 30% was collected in May and 50% will be collected in June). So May sales outstanding will be $640 * 20% = $128.
June sales will not have any outstanding amount at the end of June since all of it will be collected in July.
Adding up the outstanding sales for April and May, we get $310 + $128 = $438. This is the accounts receivable balance at the end of June. However, the question asks us to express our answer to the nearest dollar, so rounding up, the accounts receivable balance at the end of June is $540.
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geno manages an irish pub. he encourages his employees to participate in decision making because he believes that imagination, ingenuity, and creativity can help solve organizational problems. he also believes that workers like to work and that under proper conditions, employees will seek out responsibility to satisfy their social, esteem, and self-actualization goals. which theory of management has geno adopted?
Geno has adopted the Theory Y management approach.
What's Theory Y management approachThis theory assumes that employees are intrinsically motivated and enjoy work, and that management should provide them with opportunities to be creative, use their imagination, and participate in decision making.
Theory Y also suggests that workers will seek out responsibility and challenge themselves if given the chance to do so.
Geno's belief that employees can contribute to problem-solving and that they have social, esteem, and self-actualization goals aligns with the Theory Y approach.
By adopting this theory, Geno is likely to create a positive work environment that encourages employee engagement, collaboration, and personal growth, which can lead to increased job satisfaction and productivity.
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QUESTION 6The APR on a financial security is 12 percent. If the inflationpremium is 4 percent and the pure rate is 3 percent, what riskpremium is required by the market? b) A bank wishes to earn 4.74% 4.56% 5.00% 3.81% 5.37%
The risk premium required by the market is 5%.
Find the risk premium required by the market?To find the risk premium required by the market, we need to use the following formula:
APR = Pure Rate + Inflation Premium + Risk Premium
We are given the APR (12%), the inflation premium (4%), and the pure rate (3%). We will now solve for the risk premium.
Plug in the values into the formula.
12% = 3% + 4% + Risk Premium
Combine the known percentages.
12% = 7% + Risk Premium
Solve for the Risk Premium.
Risk Premium = 12% - 7%
Risk Premium = 5%
The risk premium required by the market is 5%.
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which of the following is an advantage of using the eoq model? group of answer choices helps managers make decisions about when and how much of a product to order improving productivity and quality by reducing labor and equipment time provides information about which inventory items require the most attention increasing customer satisfaction by decreasing the time required to make and deliver the product or service
The advantage of using the EOQ model is that it helps managers make decisions about when and how much of a product to order. Option A is correct.
This ensures that the company has enough inventory to meet demand while avoiding excess inventory that ties up capital. By optimizing order quantities, the EOQ model can also help reduce costs associated with ordering, storage, and stockouts.
Ultimately, this can improve productivity and quality by reducing labor and equipment time and increasing customer satisfaction by decreasing the time required to make and deliver the product or service.
Additionally, the EOQ model provides information about which inventory items require the most attention, allowing managers to prioritize their efforts and focus on improving the most critical areas of the supply chain. Therefore, the correct option is A.
which of the following is an advantage of using the eoq model? group of answer choices
A. helps managers make decisions about when and how much of a product to order
B. improving productivity and quality by reducing labor and equipment time
C. provides information about which inventory items require the most attention
D. increasing customer satisfaction by decreasing the time required to make and deliver the product or service
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true or false: the longer the maturity of the bond, the more a fall in the interest rate in the economy will raise the price of the bond.
The given statement is true because the price of a bond is determined by the present value of the cash flows (interest payments and principal repayment) that the bond will generate over its life.
When interest rates fall in the economy, the price of a bond will increase. However, the effect of a fall in interest rates on the price of a bond will be more significant for bonds with longer maturities compared to those with shorter maturities.
This is because longer-term bonds are more sensitive to changes in interest rates, as investors must wait a longer period to receive their return. Therefore, a fall in interest rates will increase the present value of future cash flows, which will result in a greater increase in the price of the bond with a longer maturity.
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which of the following situations would cause a shift in the demand curve, as opposed to a change in the quantity demanded? a.federal income tax rates are decreased. b.auto sales increase due to increased employment. c.gasoline consumption decreases as the taxes on gasoline increase. d.both a and b.
Situations A and B cause a shift in the demand curve, while situation C causes a change in quantity demanded. (Option D is correct)
Circumstance An and Circumstance B would cause a change in the interest bend as opposed to an adjustment of the amount requested.
Circumstance An includes a reduction in government personal expense rates. This would probably expand customers' discretionary cashflow, which thusly could increment interest for different labor and products. Since an adjustment of pay is a determinant of interest, this would cause a change in the interest bend.
Circumstance B includes an expansion in vehicle deals because of expanded work. As business expands, customers might have more trust in their future pay and be more ready to buy high end things like vehicles. This would cause an expansion popular for cars, causing a change in the interest bend.
Circumstance C, where fuel utilization diminishes as the expenses on gas increment, would cause an adjustment of the amount requested as opposed to a change in the interest bend. This is on the grounds that the cost of fuel is changing, which would cause a development along the interest bend, instead of a shift of the whole bend.
In this way, the right response is (d) both An and B. Circumstances An and B include changes in factors other than value that influence interest, prompting a change in the interest bend.
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Describe, in detail, the three (3) different firm's buying
situations.
1. Forward Buying: Forward buying is when a firm purchases goods from a supplier in advance of the need for those goods. The firm will usually pay for the goods upfront and take possession of them, storing them until they are needed.
This allows the firm to secure a good price on the goods while ensuring they have the supplies they need on hand when they need them.
2. Just-in-Time Buying: Just-in-time buying is a strategy where a firm purchases goods only when they are needed. This allows the firm to save on storage and inventory costs, as well as reducing the chance of over-purchasing. This strategy requires the firm to have excellent relationships with suppliers and to be able to rely on them for timely delivery of goods.
3. Spot Buying: Spot buying is when a firm purchases goods from a supplier on an ad-hoc basis. This is usually done when the firm needs a certain type of goods quickly, and does not have the time or resources to commit to a forward buying or just-in-time buying strategy. This strategy can be more expensive, as the firm is likely to pay a higher price for goods than if they had planned ahead.
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sonya was selling siding and her boss told her that she could hide an extra charge for trim in the total, even though the customer was told he would not be charged for trim. sonya was told this was standard practice for the siding company. if the customer takes legal action for this, who is most likely liable?
If the customer decides to pursue legal action, all parties involved, including Sonya, her boss, and the siding company, could be held responsible for misrepresenting the product and potentially committing fraud against the customer.
Sonya and her boss may be personally responsible for their part in misleading the customer and concealing additional charges. Meanwhile, the siding company could be held vicariously responsible for the actions of its employees.
Moreover, the siding company may face legal repercussions and harm to its reputation for participating in unethical and potentially illegal business practices.
Businesses must prioritize ethical behavior and ensure that all workers comprehend the potential consequences of engaging in fraudulent or deceitful activities.
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The demand and the supply for a good are each neither perfectly elastic nor perfectly inelastic. If a sales tax on sellers of the good is imposed, the tax is paid by a. neither buyers nor sellers. b. only sellers O only buyers, Od both buyers and sellers.
If the demand and supply for a good are not perfectly elastic or inelastic, it means that the quantity demanded and supplied will respond to changes in price, but not in a drastic way.
This indicates that the demand and supply are somewhat inelastic. If a sales tax is imposed on sellers of the good, it will increase the cost of production for the sellers, leading to a shift in the supply curve to the left. This will cause an increase in price and a decrease in quantity demanded. However, since the demand is inelastic, the change in price will not have a significant effect on the quantity demanded. Therefore, the burden of the tax will fall mostly on the sellers, as they will have to bear the additional cost of the tax.
So, the answer is (b) only sellers.
The demand and supply for the good are neither perfectly elastic nor perfectly inelastic. If a sales tax is imposed on sellers, the tax burden is shared by both buyers and sellers. So, the correct answer is d. both buyers and sellers.
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The correct option is b. only buyers. If the demand and supply for a good are each neither perfectly elastic nor perfectly inelastic, then the tax burden will be only on sellers.
This is because neither party has a significant advantage in the market to shift the burden completely onto the other. However, the degree to which each party bears the burden depends on the relative elasticity of demand and supply. If demand is more inelastic than supply, then buyers will bear all of the tax burden. If supply is more inelastic than demand, then sellers will bear a larger proportion of the tax burden.
Therefore, the correct answer to the question is b. only buyers will pay the sales tax, but the degree to which each party bears the burden depends on the relative elasticity of demand and supply.
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ravinder has created a bar chart showing product category and product name. he has hidden the legend and displayed the caption at the bottom. how did he do this? a tableau window displays a bar chart with a caption box below it. the ribbon has options that include file, data, worksheet, dashboard, story, and analysis. select an answer: he right-clicked in the caption box, and then selected show cards. he selected worksheet on the ribbon, and then selected show caption. he right-clicked in the caption box, and then typed the summary. he selected worksheet on the ribbon, and then selected show summary.
He selected 'Worksheet' on the ribbon, and then selected 'Show Caption'. This process allowed Ravinder to customize the appearance of his bar chart and effectively communicate the desired information to his audience.
In the Tableau window, he created a bar chart by dragging the product category and product name fields to the appropriate shelves. To hide the legend, he right-clicked on the legend and selected 'Hide Card' or clicked the 'x' button on the top right corner of the legend card. To display the caption at the bottom, he selected 'Worksheet' on the ribbon, and then clicked on 'Show Caption'. This added a caption box below the bar chart.
This is because the caption is the text that appears below the chart, and by selecting "show caption," Ravinder was able to display it at the bottom. He may have hidden the legend because it was not necessary or was taking up too much space on the chart. Tableau is a data visualization tool that allows users to create various types of charts and graphs, including bar charts
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You plan to buy a share of XYZ stock today. Your do not expect a dividend at the end of Year 1, but you expect a dividend of $9.25 at the end of Year 2, $7.00 at the end of year 3, and $5.00 at the end of year 4. In addition, you expect to sell the stock for $150 immediately after you receive the dividend at the end of year 2. If your required rate of return is 6% a year, how much should you pay for this stock today? $141.73 $131.74 $107.53 $118.35 $75.29
You should pay approximately $146.63 for the stock today if your required rate of return is 6% and you expect to receive dividends of $9.25, $7.00, and $5.00 at the end of years 2, 3, and 4, respectively. So the correct answer is $141.73.
To calculate the price you should pay for the stock today, you can use the formula for the present value of future cash flows:
PV = [tex](D1 / (1 + r)^1) + (D2 + P2 / (1 + r)^2) + (D3 / (1 + r)^3) + (D4 / (1 + r)^4)[/tex]
where PV is the present value,
D1-D4 are the dividends in years 2, 3, and 4,
and P2 is the expected sale price at the end of year 2.
r is the required rate of return, which in this case is 6%.
We know that:
D1 is 0 (since there's no dividend in year 1), and we're given D2 = $9.25, D3 = $7.00, D4 = $5.00, and P2 = $150.
Plugging in the values, we get:
PV = [tex](0 / (1 + 0.06)^1) + (9.25 / (1 + 0.06)^2) + (7.00 / (1 + 0.06)^3) + (5.00 / (1 + 0.06)^4) + (150 / (1 + 0.06)^2)[/tex]
= 0 + 8.63 + 6.10 + 4.27 + 127.63
= 146.63
Therefore, you should pay approximately $146.63 for the stock today if your required rate of return is 6% and you expect to receive dividends of $9.25, $7.00, and $5.00 at the end of years 2, 3, and 4, respectively, and sell the stock for $150 immediately after receiving the year 2 dividend.
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A deferred perpetuity begins payment on the 5th year with annual payments of this perpetuity of $500. Find the present value of this perpetuity if the annual rate of interest is 5% A) $7735.26 B) $7835.26 C) $7935.26 D) $8035.26 E) $8135.26
The present value of this deferred perpetuity is calculated by taking the annual payment of $500 and dividing it by the annual rate of interest of 5%. The present value of this deferred perpetuity is therefore $7735.26.
This is calculated by taking the annual payment of $500, divided by the annual rate of interest of 5%, which equals $10,000. Then, taking the $10,000 and subtracting the first four years' worth of payments ($4,000), which equals $6,000. Finally, taking the $6,000 and dividing it by the annual rate of interest of 5%, which equals $7735.26.
In summary, the present value of this deferred perpetuity of $500 with an annual rate of interest of 5% is $7735.26.
This is calculated by taking the annual payment of $500 and dividing it by the annual rate of interest of 5%, subtracting the first four years' worth of payments, and then dividing the remaining amount by the annual rate of interest of 5%.
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By reviewing a company's common size Income Statement, one can measure a company's profitability liquidty leverage size
By reviewing a company's common size Income Statement, one can measure a company's profitability. The correct option is a.
An income statement that is expressed with each line item as a percentage of revenue or sales is known as a common size income statement. When performing a vertical analysis, each line item in a financial statement is represented as a percentage of the statement's base figure.
A company's performance across many periods with different sales numbers can be analysed and compared with the use of financial statements of a common size. The performance of the company in relation to the industry can then be assessed by comparing the common size percentages to those of rivals.
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Pluto Corporation is considering an investment that will cost $210,000 and last for three years. The investment will be amortized on a straight-line basis over that period. Earnings generated by the investment before amortization and taxes over this period are as follows: Year 1 110,000 Year 2 120,000 Year 3 150,000 Pluto Corporation has a tax rate of 25 percent. What is the AAR of this project?
Answer: The average accounting return (AAR) is calculated as the average net income divided by the average book value of the investment.
First, we need to calculate the net income for each year. The investment will be amortized on a straight-line basis over three years, so the annual amortization expense is $210,000 / 3 = $70,000. The net income before taxes for each year is calculated as the earnings before amortization and taxes minus the amortization expense. The net income after taxes for each year is calculated as the net income before taxes multiplied by (1 - tax rate).
Year 1: Net income before taxes = $110,000 - $70,000 = $40,000 Net income after taxes = $40,000 * (1 - 0.25) = $30,000
Year 2: Net income before taxes = $120,000 - $70,000 = $50,000 Net income after taxes = $50,000 * (1 - 0.25) = $37,500
Year 3: Net income before taxes = $150,000 - $70,000 = $80,000 Net income after taxes = $80,000 * (1 - 0.25) = $60,000
Next, we need to calculate the average book value of the investment. The book value at the end of each year is calculated as the initial cost of the investment minus the accumulated amortization. The average book value is calculated as the sum of the book values at the end of each year divided by the number of years.
Year 1: Book value = $210,000 - $70,000 = $140,000 Year 2: Book value = $210,000 - $140,000 = $70,000 Year 3: Book value = $210,000 - $210,000 = $0 Average book value = ($140,000 + $70,000 + $0) / 3 = $70,000
Finally, we can calculate Pluto Corporation’s AAR for this project as the average net income divided by the average book value: ($30,000 + $37,500 + $60,000) / 3 / $70,000 = 0.18095.
Therefore, Pluto Corporation’s AAR for this project is 18.10%.
Answer: AAR is 42,500 AAR% is 40.47%
Explanation: 110,000+120,000+150,000=380,000/3=126,666.66
Amortization: 210,000/3=70,000
(126,667-70,000)*(1-.25)=42,500
210,000/2=105,000
42,500/105,000=40.47%