Sure! The New Deal was a significant effort by President Roosevelt to help revive the American economy during the Great Depression. Some of the key programs that he implemented as part of this initiative include:
1. The Civilian Conservation Corps (CCC): This program provided work and training for young men aged 18 to 25 in conservation and natural resource management projects. The CCC employed over 2 million people during its run and helped to improve forests, parks, and other public lands across the country.
2. The Works Progress Administration (WPA): This program provided jobs for millions of Americans in a variety of public works projects, including construction of public buildings, roads, and bridges. The WPA also funded arts and cultural programs, employing artists, writers, and musicians to create new works and promote public events.
3. The Social Security Act: This landmark legislation established a system of retirement benefits for American workers, as well as provisions for unemployment insurance and aid to families with dependent children. Social Security has become a key part of the American safety net and remains a vital program to this day.
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QUESTION 1 The Nagha Railway Company (NRC) is the only rail freight transport company in Nagha with the sole purpose of movement of passengers and freight such as manganese, bauxite, cocoa and timber from the hinterland to the ports for export and the movement of finished products such as cement and flour from the manufacturing enclave in the south of the country to the hinterland. The purpose of the company is accomplished by the use of various rolling stock such as locomotives, wagons, vans and coaches. The major source of financing for the fleet of rolling stock by NRC was through grants from donor countries with each donor country tying the grant to the purchase of locomotives from manufacturers ir their country. The result of the approach culminated in NRC being saddled with a wide variety of locomotives with its attendant challenges. At a point in the history of the company, it had a fleet of six (60) locomotives made up of different makes of locomotives from different manufacturers from the five (5) different countries that provided funding as follows; 1 Quantity 15 Table 1 - Locomotive fleet S/N Make of locomotive Country of origin Quantity
1. Henschel 2-stroke - Germany 15
2. Caterpillar 4-stroke France 15
3. General Motors 2-stroke 4 Canada 15
4 .Brush 4-stroke United Kingdom 8
5. Daewoo 4-stroke South Korea 7 To guarantee adequacy of spare parts for preventive maintenance, breakdown and accident repairs a variety of spares parts in different quantities had to be stocked for the different fleet of locomotives. At some point the company was considered to be a highly valued company according to the stock value in the books but virtually valueless in terms of operations as it could not provide certain very basic low cost consumables such as filters for maintenance of the most active classes of locomotives, meanwhile the company had abundance of similar consumables for lesser utilised fleet of locomotives. Among the stocked items kept were various numbers of expensive spares such as crankshafts & camshafts for the various classes of locomotives. Records indicate some of these spares never get used even after 15yrs of acquiring them and end up being disposed off as scrap. 1 Like any operation, in order to ensure efficiency in operations it is important to identify major elements in its operations in order to tailor strategies to manage them effectively but for GRC, a major challenge in its operations is its inability to prioritize stock in order to have a good balance of inventory to ensure efficient use of its financial resources. A cursory look at the stock of items kept for the highest fleet identified three items with equal usage value but with different unit cost and demand over a period of 1 years as indicated in the table below; Unit price ($) Quantity demanded/year Table 2 - Stock and their usage value S/N Description of stock Unit price quantity demanded/year
1. Camshaft 8,000 10 2. 2 Injectors 500 100 3. Brake blocks 10 4,000
a) For any organization, in order to identify areas of challenges and tailor appropriate solutions, it is important to identify the major elements of its operations. You are required to identify and explain with the aid of a diagram, the major elements of the operations of NRC in terms of the input- transformation process-output model. (14 marks) b) State and explain the strategies that can be employed to address the challenge of multiplicity of fleet of different makes of locomotives. (10 marks) c) What will be the impact in terms of the benefits of the strategies mentioned in (b) on the operations of the company? (8 marks)
d) Explain usage value, how it is used to control inventory (8 marks)
Previous question
Emmett Company sold goods to Paden Company under freight terms of FOB destination. The buyer is responsible for covering the freight charges. The term "freight transport" refers to the actual physical act of moving goods, commodities, and cargo.
Originally referring to sea transport, the term "shipping" has been broadened in American English to now refer to land and air transportation. Depending on where you're delivering from and to, standard shipping in the United States can take anywhere between 2 and 5 business days.
In the US, practically all states may be reached within 5 business days, though it might take a little longer for a product to arrive there. The zone pricing refers to the process of setting prices for various goods and services based on where customers can purchase them. If a customer buys something from Zone A and subsequently something quite similar from Zone B, they will incur different charges under the zone pricing method. A corporation or organisation must employ zone pricing to cover the expense of transportation.Additionally, it is utilised in organisations for pricing methods.
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the biggest obstacle for customers in evaluating service quality is the _____ nature of the service.a.heterogeneousb.intangiblec.perishabled.uniquee.expensive
The biggest obstacle for customers in evaluating service quality is the intangible nature of the service.
Unlike tangible products, services cannot be seen, touched, or felt before consumption, making it difficult for customers to evaluate the quality of the service. Service quality is often assessed based on the customer's experience, which can be influenced by factors such as the behavior of the service provider, the speed of service delivery, and the overall customer experience.
The intangible nature of services creates challenges for both customers and service providers. Customers may have difficulty evaluating service quality before consuming the service, leading to uncertainty and a higher perceived risk of making a poor purchasing decision. This can result in lower customer satisfaction and loyalty, and may make it harder for service providers to attract and retain customers.
On the other hand, service providers may find it challenging to measure and improve service quality, as it is often difficult to assess and manage intangible elements such as customer perceptions and emotions.
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Shares in Growth Corporation are selling for $60 per share. There are 13 million shares outstanding. The stock pays a 45 percent stock dividend. After the dividend: How many shares will be outstanding? What will be the price per share? Please state your answer in millions and to 2 decimal places. Outstanding shares = Number million Price per share = Number
The number of outstanding shares after the dividend is 18.85 million and the price per share is $41.36 (to two decimal places).
A 45 percent stock dividend means that for every 100 shares owned, 45 additional shares will be issued. Therefore, the number of new shares issued will be:45/100 * 13 million = 5.85 millionSo the total number of outstanding shares after the dividend will be:13 million + 5.85 million = 18.85 millionTo calculate the new price per share, we need to consider the total value of the company after the dividend. Since the dividend does not change the overall value of the company, the market capitalization of the company remains the same.
Market capitalization before the dividend = $60 per share * 13 million shares = $780 millionMarket capitalization after the dividend = $780 millionSo the new price per share will be:$780 million / 18.85 million shares = $41.36 per shareTherefore, the number of outstanding shares after the dividend is 18.85 million and the price per share is $41.36 (to two decimal places).
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for the payroll period ended on may 7, 2022, gross pay was $102,000, net pay was $78,000, and various withholdings totaled $24,000. the journal entry to show the effects of the payroll accrual on may 7, 2022 is:
The journal entry on May 7, 2022, would look like this:
Salary Expense - Debit $102,000 Withholdings - Credit $24,000 Cash - Credit $78,000How journal entry show the effects of the payroll accrualFor the payroll period ended on May 7, 2022, the journal entry to show the effects of the payroll accrual can be explained as follows:
The gross pay represents the total earnings of employees before any deductions, which is $102,000.
The net pay is the amount paid to employees after all deductions, amounting to $78,000.
Various withholdings, such as taxes and other deductions, total $24,000.
To record the payroll accrual in the journal entry, the following accounts will be affected:
1. Debit Salary Expense for the gross pay ($102,000).
2. Credit various withholding accounts for the total amount of withholdings ($24,000).
3. Credit Cash for the net pay ($78,000).
The journal entry on May 7, 2022, would look like this:
Salary Expense - Debit $102,000 Withholdings - Credit $24,000 Cash - Credit $78,000This entry accurately reflects the payroll accrual's effects by recording the expense, withholdings, and cash paid to employees during the payroll period.
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1. calculate ending inventory and cost of goods sold at march 31, using the specific identification method. 2. using fifo, calculate ending inventory and cost of goods sold at march 31. 3. using lifo, calculate ending inventory and cost of goods sold at march 31. 4. using weighted-average cost, calculate ending inventory and cost of goods sold at march 31. 5. calculate sales revenue and gross profit under each of the four methods. 6. comparing fifo and lifo, which one provides the more meaningful measure of ending inventory? 7. if george bicycle shop chooses to report inventory using lifo instead of fifo, record the lifo adjustment.
1. Specific Identification: Ending inventory = $18,500; Cost of goods sold = $31,500
2. FIFO: Ending inventory = $19,200; Cost of goods sold = $31,800
3. LIFO: Ending inventory = $18,000; Cost of goods sold = $33,000
4. Weighted-Average Cost: Ending inventory = $18,880; Cost of goods sold = $32,120
5. Sales revenue and gross profit depend on the selling price, which is not provided in the question.
The specific identification method identifies the cost of each item sold, which is then used to calculate the ending inventory and cost of goods sold. The ending inventory is the cost of the remaining items on hand, while the cost of goods sold is the sum of the costs of the items sold during the period.
FIFO assumes that the first items purchased are the first ones sold, while LIFO assumes that the last items purchased are the first ones sold. The ending inventory is calculated by valuing the remaining items at the most recent purchase price for FIFO and the oldest purchase price for LIFO. The cost of goods sold is then calculated by subtracting the ending inventory from the total cost of goods available for sale.
The weighted-average cost method calculates the cost per unit by dividing the total cost of goods available for sale by the total number of units available for sale. The cost of goods sold is then calculated by multiplying the number of units sold by the weighted-average cost per unit, while the ending inventory is valued at the weighted-average cost per unit multiplied by the number of units remaining.
When comparing FIFO and LIFO, the choice depends on the specific circumstances of the business. FIFO tends to result in a higher ending inventory value and lower cost of goods sold, which can lead to higher profits and taxes. LIFO tends to result in a lower ending inventory value and higher cost of goods sold, which can lead to lower profits and taxes.
If George Bicycle Shop chooses to report inventory using LIFO instead of FIFO, a LIFO adjustment will need to be made to reflect the difference between the ending inventory values calculated using the two methods. This adjustment is typically disclosed in the footnotes to the financial statements.
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The ending Retained Earnings balance of Juan's Mexican Restaurant chain increased by $3.2 million from the beginning of the year. The company declared a dividend of $1.3 million during the year. What was the net income earned during the year?
A. $1.9 million
B. $3.2 million
C. $4.5 million
D. $1.3 million
The net income earned during year is $4.5 million, option C.
The net income earned during the year for Juan's Mexican Restaurant chain, given that the ending Retained Earnings balance increased by $3.2 million and the company declared a dividend of $1.3 million. Here's the step-by-step explanation:
1. The formula for calculating Retained Earnings:
Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
2. Rearrange the formula to find the Net Income:
Net Income = Retained Earnings - Beginning Retained Earnings + Dividends
3. Calculating using given values:
Net Income = $3.2 million + $1.3 million
= $4.5 million
So, the net income earned during the year was $4.5 million, which corresponds to option C.
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steve jobs helped the music industry address the problem of illegal downloading by spearheading the creation of:
Steve Jobs helped the music industry address the problem of illegal downloading by spearheading the creation of the iTunes Music Store.
The rise of digital music in the early 2000s led to widespread illegal downloading and piracy, causing significant financial losses for the music industry. In response, Steve Jobs recognized the need for a legal and convenient digital music marketplace.
He negotiated deals with major record labels and created the iTunes Music Store in 2003, allowing users to legally purchase and download individual songs or full albums. The platform also introduced the iPod, which allowed users to carry their entire music library with them.
The success of the iTunes Music Store helped to shift the music industry towards a digital distribution model, reducing the prevalence of illegal downloading and piracy.
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The Zephyr Corporation is contemplating a new investment to be financed 33 percent from debt. The firm could sell new $ 1000 par value bonds at a net price of $910. The coupon interest rate is 12percent, and the bonds would mature in 11 years. If the company is in a 38 percent tax bracket,
what is the after-tax cost of capital to Zephyr for bonds?
To calculate the after-tax cost of capital for Zephyr's bonds, we need to first calculate the annual interest payment that the company would have to make. The coupon interest rate is 12%, which means that Zephyr would have to pay $120 in interest per year (12% of $1000 par value).
Now, since Zephyr is in a 38% tax bracket, the company would be able to deduct the interest payment of $120 from its taxable income. This deduction would result in a tax savings of $45.60 (38% of $120). Therefore, the after-tax cost of capital for Zephyr's bonds would be the net cost of the bond ($910) plus the after-tax interest cost ($120 - $45.60 = $74.40), divided by the par value of the bond ($1000).
So, the after-tax cost of capital for Zephyr's bonds can be calculated as follows:
After-tax cost of capital = ($910 + $74.40) / $1000 = 9.984%
This means that Zephyr's after-tax cost of capital for its bonds is 9.984%. This cost reflects the net cost of the bond as well as the tax savings that the company would receive from deducting the interest payment from its taxable income.
It is important for companies to calculate their after-tax cost of capital because it helps them to determine the true cost of borrowing. By taking into account the tax savings that a company can receive, the after-tax cost of capital provides a more accurate picture of the actual cost of debt financing. This information can then be used to make informed decisions about investment and financing opportunities.
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A growth company expects its dividends to głowth at 10% each year for the next three years, and then maintain a sustainable growth rate of 4% thereafter. The last dividend was $2.00, and the required return is 16%. What is the value of the stock price?
Answer:
$15.38 is the price of the stock.
Explanation:
To calculate the value of the stock price, we can use the dividend discount model (DDM), which states that the present value of a stock is equal to the sum of all future dividends, discounted to their present value at the required rate of return.
First, let's calculate the dividends for the next three years using the expected growth rate of 10%:
Dividend for year 1: $2.00 x (1 + 10%) = $2.20
Dividend for year 2: $2.20 x (1 + 10%) = $2.42
Dividend for year 3: $2.42 x (1 + 10%) = $2.66
Next, let's calculate the terminal value of the stock using the sustainable growth rate of 4%:
Terminal dividend: $2.66 x (1 + 4%) / (16% - 4%) = $23.34
We can now use the DDM formula to calculate the present value of the stock: PV=
[tex]D1 / (1 + r) + D2 / (1 + r)^2 + D3 / (1 + r)^3 + TV / (1 + r)^3[/tex]
where PV is the present value of the stock, D1, D2, and D3 are the dividends for years 1, 2, and 3, respectively, TV is the terminal value of the stock, and r is the required rate of return.
Plugging in the values we calculated above, we get:
PV = $1.89 + $1.75 + $1.62 + $10.12
PV = $15.38
Therefore, the value of the stock price is $15.38.
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You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $905.42 every month for the next 12 months. Since you pay $905.42 * 12 = $10,865 in total, the dealer claims that the loan's annual interest rate is (10,865-10,000)/10,000 = 8.65%.
1. What is the actual effective annual rate?
2. What rate should the dealer quote by law?
1) The actual effective annual rate of the loan is 8.86%, which is calculated by taking the actual cost of the loan, which is $10,865, and dividing it by the principal of $10,000.
What is annual rate?An annual rate is a type of rate that is applied to a given amount over the course of one year. It is used to calculate the interest due on various types of loan and savings accounts. The annual rate is usually expressed as a percentage and is based on the amount of the loan or account balance. It is also used to measure the amount of return on investment and dividends paid to shareholders.The annual rate is determined by the lender or financial institution offering the loan or savings account.
2) By law, the dealer should quote the Annual Percentage Rate (APR), which is a measure of the cost of credit, expressed as a yearly rate. It is the true cost of credit, taking into account all fees and costs associated with the loan. The APR for this loan would be 9.04%.
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q1.Visit Ultimate Garage's website, and analyze its
effectiveness. Which alternative promotional venues would you
recommend?
In general, when analyzing the effectiveness of a website, some key factors to consider are the overall design and layout, ease of navigation, load time, mobile responsiveness, content quality and relevance, and the presence of clear calls to action.
Regarding alternative promotional venues, it would depend on the target audience and marketing goals. Some options to consider could be social media advertising, influencer partnerships, email marketing, search engine optimization (SEO), or even offline events or sponsorships.
It's important to carefully evaluate the potential ROI and cost-effectiveness of each option and tailor the promotional mix to the specific business needs.
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how has the process of economic development been similar in japan, south korea, taiwan, and china since the end of world war ii, and how has it been different in each country?
Like Japan, South Korea is a 'twin economy' — a hybrid of extraordinarily green exporting sectors, and woefully inefficient home production and offerings sectors.
China has a socialist economy, Japan and Taiwan have loose marketplace economies, even as South Korea has a blended economy. The improvement of latest generation and the loyalty and truthful remedy to and in their operating elegance people. Because Japanese and Korean have Chinese roots, there may be quite a few comparable vocabulary among those 3 languages. Linguists trust that round 60% of Korean phrases and 50% of Japanese phrases come from Chinese. So in case you recognize this type of languages, it offers you a huge head-begin whilst getting to know the others. China has overtaken Japan because the world's 2d biggest economy, accounting for sixteen percentage of world GDP in 2015. In a clean function reversal, from 1990-2014, China contributed over 17 percentage to international GDP growth, with Japan including simply over three percentage.
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Which of the following are types of barriers to communication? (Check all that apply.)
Physical. cross-cultural. personal. non-verbal.
gender
cross-cultural and personal are types of barriers to communication that relate to cultural differences and individual characteristics that can affect communication. Non-verbal and physical barriers can also exist, but gender is not necessarily a barrier to communication.
Here's some more information on each type of barrier:
Physical barriers: These can be due to factors such as distance, environmental conditions, or technological issues that prevent effective communication between the sender and receiver.Cross-cultural barriers: These arise when people from different cultures or backgrounds have different communication styles or expectations, such as language differences, body language, or social norms.Personal barriers: These are internal obstacles to effective communication, such as a lack of confidence, fear of speaking up, or emotional issues that may affect how a message is received.Non-verbal barriers: These are communication obstacles that arise from non-verbal cues, such as body language, facial expressions, and tone of voice. If these cues do not match the verbal message, or if the receiver misinterprets them, effective communication can be impeded.Learn more about technological here:
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Physical, cross-cultural, personal, and non-verbal barriers are types of barriers to communication.
The types of barriers to communication are:
Physical barriers: These are barriers related to the environment, such as noise, distance, and lack of privacy.
Cross-cultural barriers: These are barriers related to cultural differences, such as language, customs, and values.
Personal barriers: These are barriers related to personal characteristics, such as emotions, attitudes, and perceptions.
Non-verbal barriers: These are barriers related to body language, gestures, facial expressions, and tone of voice.
Gender barriers: These are barriers related to gender stereotypes, such as assumptions about the communication style of men versus women.
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why is it not a good idea to rely on your income statement to run your business? the income statement records cash when it comes into the business. the income statement adds non-cash expenses back to the business's earnings. the income statement deducts non-cash expenses, such as depreciation, even when no cash is actually flowing out of the business. the income statement usually contains errors that other statements don't have.
The income statement deducts non-cash expenses, such as depreciation, even when no cash is actually flowing out of the business. The correct answer is B .
Relying solely on the income statement to run a business can be problematic because it does not provide a complete picture of a company's financial health. It does not take into account non-cash items such as depreciation, which can significantly impact a company's profitability. Additionally, the income statement only shows a snapshot of a company's performance for a given period and does not provide insights into the company's liquidity, cash flows, or long-term sustainability. Therefore, it is important to use other financial statements such as the balance sheet and cash flow statement to make informed decisions about a company's financial position.
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You have just won a lottery, your payoff will be as follows:receive today Rs.1,000,000, and beginning next year for 19 yearsRs.500,000. The total payoff is Rs.10,500,000. Assuming thediscount rate is 9%. What is the present value of your winnings?Task: Solve this question as soon as possible.
The present value of your winnings is Rs.7,027,000.
To calculate the present value of the winnings, we need to discount each payment to its present value and sum them up.
The first payment is received today, so its present value is simply its face value, which is Rs.1,000,000.
For the 19 payments of Rs.500,000 each, we can use the formula for the present value of an annuity:
PV = C * [(1 - (1 + r)^-n) / r]
Where PV is the present value, C is the periodic payment, r is the discount rate, and n is the number of periods.
Plugging in the numbers, we get:
PV = 500,000 * [(1 - (1 + 0.09)^-19) / 0.09]
PV = 500,000 * [(1 - 0.2145) / 0.09]
PV = 500,000 * 12.054
PV = 6,027,000
So the total present value of the winnings is:
PV = 1,000,000 + 6,027,000
PV = 7,027,000
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The market risk premium for next period is 7.00% and the risk-free rate is 3.00%. Stock Z has a beta of 1.33 and an expected retum of 11.00%. What is the a) Market's reward-to-risk ratio? (1 point): b) Stock Z's reward-to-risk ratio (1 point):
The market's reward-to-risk ratio is 7.00%, and Stock Z's reward-to-risk ratio is approximately 6.02%.
a) To find the market's reward-to-risk ratio, we can use the following formula:
Market Reward-to-Risk Ratio = (Market Risk Premium) / (Market Beta)
In this case, the Market Risk Premium is 7.00%, and the Market Beta is 1 (since it represents the market as a whole). So,
Market Reward-to-Risk Ratio = 7.00% / 1 = 7.00%
b) To find Stock Z's reward-to-risk ratio, we first need to calculate its risk premium. We can do this using the following formula:
Stock Z Risk Premium = Expected Return - Risk-Free Rate
Stock Z Risk Premium = 11.00% - 3.00% = 8.00%
Now, we can use the formula for the reward-to-risk ratio:
Stock Z Reward-to-Risk Ratio = (Stock Z Risk Premium) / (Stock Z Beta)
Stock Z Reward-to-Risk Ratio = 8.00% / 1.33 ≈ 6.02%
So, the market's reward-to-risk ratio is 7.00%, and Stock Z's reward-to-risk ratio is approximately 6.02%.
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An Fl is planning the purchase of a $6 million loan to raise the existing average duration of its assets from 3.7 years to 5.2 years. It currently has total assets worth $23 million, $6 million in cash (O duration), and $17 million in loans. All the loans are fairly priced. a-1. Assuming it uses the cash to purchase the loan, calculate the duration of the existing loan. (Round your answer to 3 decimal places. (e.g., 32.161)) a-2. Assuming the Fl uses the cash to purchase the loan and that the loan has a 7.2 year duration, calculate the resulting duration of the asset portfolio. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) a-3. Should it purchase the loan if its duration is 7.2 years? b. What asset duration loans should it purchase in order to raise its average duration to 5.2 years? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Answer:
a-1. If the FL is planning to purchase a $6 million loan to raise the average duration of its assets, we can use the following formula to calculate the duration of the existing loan:
Weighted average duration before purchase = (Duration of existing loans * Value of existing loans) / Total assets
5.2 = (Duration of existing loans * $17 million) / $23 million
Duration of existing loans = 3.852 years
Therefore, the duration of the existing loans is 3.852 years.
a-2. If the FL uses the $6 million in cash to purchase a loan with a 7.2-year duration, we can calculate the resulting duration of the asset portfolio using the following formula:
Weighted average duration after purchase = [(Duration of existing loans * Value of existing loans) + (Duration of purchased loan * Value of purchased loan)] / (Total assets + Value of purchased loan)
Weighted average duration after purchase = [(3.852 * $17 million) + (7.2 * $6 million)] / ($23 million + $6 million)
Weighted average duration after purchase = 4.847 years
Therefore, the resulting duration of the asset portfolio is 4.847 years.
a-3. Whether the FL should purchase the loan with a 7.2-year duration depends on its investment objectives and risk tolerance. If it believes that the loan will provide a sufficient return to compensate for the increased duration risk, then it may be a good investment. However, if the FL is not comfortable with the increased duration risk, it may choose to look for a loan with a lower duration instead.
b. To raise the average duration of its assets to 5.2 years, the FL needs to purchase a loan with a duration of:
Weighted average duration after purchase = (Duration of existing loans * Value of existing loans + Duration of purchased loan * Value of purchased loan) / Total assets
5.2 = (3.852 * $17 million + Duration of purchased loan * $6 million) / $23 million
Duration of purchased loan = 8.42 years
Therefore, the FL should purchase a loan with a duration of 8.42 years to raise the average duration of its assets to 5.2 years.
anna's antiques expects to get two bidders for the unique china teacup it sells. each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. if anna can only set one price, what price should she set?
Based on the expected value approach, Anna should set the price at $70 to maximize her profit.
To determine the optimal price that Anna should set for the unique china teacup, we can use the expected value approach. Let's denote the price that Anna sets as "p".
If Anna sets the price at p = $100, then she will earn a profit of $100 if both bidders have a high value, a profit of $30 ($100 - $70) if one bidder has a high value and the other bidder has a low value, and a loss of $70 if both bidders have a low value.
Therefore, Anna's expected profit, if she sets the price at $100, is:
[tex](1/2) x $100 + (1/2) x $30 - (1/2) x $70[/tex]
= $30
If Anna sets the price at p = $70, then she will earn a profit of $0 if both bidders have a high value, a profit of $70 if one bidder has a high value and the other bidder has a low value, and a profit of $140 if both bidders have a low value.
Therefore, Anna's expected profit, if she sets the price at $70, is:
[tex](1/2) x $0 + (1/2) x $70 + (1/2) x $140[/tex]
= $105
Thus, based on the expected value approach, Anna should set the price at $70 to maximize her profit.
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given the following information from crane corporation, what price would the capm predict that the company's stock will trade for one year from today? (do not round intermediate calculations. round final answer to 2 decimal places, e.g. 50.75.) risk free rate: 3.1% market risk premium: 9.1% beta: 0.60 current stock price: $65.90 annual dividend: $1.77
To predict the company's stock price one year from today using the CAPM (Capital Asset Pricing Model), we first need to calculate the expected return on the stock. Predicted stock price for Crane Corporation one year from today is $69.60.
The CAPM formula is: Expected Return = Risk-Free Rate + Beta × (Market Risk Premium), Given the information provided, we can plug in the values: Expected Return = 3.1% + 0.60 × (9.1%)
Expected Return = 3.1% + 0.60 × 9.1% = 3.1% + 5.46% = 8.56%
Now that we have the expected return on the stock, we need to determine the expected price of the stock one year from today. We do this by considering the annual dividend and the expected return. The future stock price can be calculated using the following formula
Future Stock Price = (Current Stock Price - Annual Dividend) × (1 + Expected Return), Future Stock Price = ($65.90 - $1.77) × (1 + 8.56%) Future Stock Price = $64.13 × 1.0856 ≈ $69.60. Based on the CAPM model and given information, the predicted stock price for Crane Corporation one year from today is $69.60.
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six months ago, you purchased 2,000 shares of abc stock for $25.83 a share. you have received dividend payments equal to $.50 a share. today, you sold all of your shares for $27.82 a share. what is your total dollar return on this investment?
The total dollar return on this investment is $4,980 when the total Dividend is $1,000 and the Capital gain is $3,980.
To calculate the total dollar return on the investment, we need to calculate the capital gain and total dividend
Total dollar return = capital gain + Total Dividend
Given data:
number of shares = 2,000
purchase price per share = $25.83
selling price per share = $27.82
dividend payments per share = $.50
substuting the given data we get:
The Capital gain = (selling price - purchase price) x number of shares
($27.82 - $25.83) x 2,000
= $3,980
The total Dividend = dividend per share x number of shares
= $0.50 x 2,000 = $1,000
Total dollar return = capital gain + dividend income
= $3,980 + $1,000
= $4,980
Therefore, the total dollar return on this investment is $4,980.
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suppose you purchase ten call contracts on macron technology stock. the strike price is $65, and the premium is $2.10. if, at expiration, the stock is selling for $69 per share, what are your call options worth? what is your net profit?
Net profit from the purchase of ten call contracts on Macron Technology stock is $1,900.
If you purchase ten call contracts on Macron Technology stock, each contract typically represents 100 shares. Therefore, you effectively have the option to purchase 1,000 shares of the stock at the strike price of $65 per share.
The premium for the option contract is $2.10 per share, which means that you paid a total of $2.10 x 100 x 10 = $2,100 for the 10 option contracts.
If at expiration the stock is selling for $69 per share, your call options are worth:
$69 (market price - $65 (strike price) = $4 per share
Since each contract represents 100 shares, your options are worth $4 x 100 x 10 = $4,000.
To calculate your net profit, you need to subtract the initial premium paid from the value of the options at expiration:
Net profit = value of the options at expiration - initial premium
Net profit = $4,000 - $2,100
Net profit = $1,900
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Hagger Sounds has accumulated the cost and net realizable value data on March 31: Cost Net Realizable Value iPods $20,400 Cell phones $24,000 18,000 28,000 19,000 25,600 DVDs Using the lower-of-cost-or-net realizable value, how much is the value of the ending inventory? (Apply LCNRV to each category) $64,000 $65,000 $70,000 $71,000
The value of the ending inventory using lower-of-cost-or-net realizable value (LCNRV) is $65,000.
To calculate the value of the ending inventory using LCNRV, we compare the cost and net realizable value (NRV) of each category and use the lower of the two values.
For the iPods, the cost is $20,400 and the NRV is $18,000, so we use the NRV of $18,000. For the cell phones, the cost is $24,000 and the NRV is $28,000, so we use the cost of $24,000. For the DVDs, the cost is $19,000 and the NRV is $25,600, so we use the cost of $19,000.
Therefore, the total value of the ending inventory using LCNRV is $18,000 + $24,000 + $19,000 = $61,000.
However, we must also add the value of any items that were not written down to their NRV because their cost was already lower than their NRV. In this case, there were no such items.
Thus, the final value of the ending inventory is $61,000.
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[the following information applies to the questions displayed below.] required:1. create a new column in the purchase orders table for state sales tax. use the vlookup function to match supplier st to the state in the sales tax table.2. create a new column in the purchase orders table that provides the calculation for the amount of state sales tax owed on each line item. ask the question: how can we incorporate sales tax into each transaction line item without having to do so manually?master the data: the 4-2 alt data is purchasing data rather than sales, so instead of working with store location, you will work with supplier st. keep in mind there are different columns available in this dataset, so your vlookup and calculation columns will be in columns j and k and will reference different sections of the spreadsheet. software neededexcelscreen capture tool (windows: snipping tool; mac: cmd shift 4) data: lab 4-2 alt data.xlsx. perform the analysis: refer to lab 4-2 alternate in the text for instructions and lab 4-2 steps for each the of lab parts. share the story: you have now worked with connecting data in excel stored in two different tables and retrieving the data from one table into another to add descriptive attributes to your transaction table. required:1. what is the total state tax owed for each line item in the purchase order table? multiple choice 1$8.41$687.21$841.67$5446.16 2. what is the state tax owed on purchase order id 20510? multiple choice 2$95.00$14.29$42.25$21.80 3. what is the state sales tax owed on purchase order id 20525? (note- there are multiple line items on this invoice. round if necessary.) multiple choice 3$31.78$19.50$0.20$14.62 4. what is the state sales tax rate for minnesota? multiple choice 40.0650.040.07250.06875 5. for the second argument in a vlookup function, do you typically select one cell, a full column, or an entire table array? multiple choice 5full columnit dependsone celle
VLookup Function can be used to get the state sales tax on various amounts mentioned.
1. The total state tax owed for each line item in the purchase order table varies and can be found in the newly created column for state sales tax using the vlookup function to match supplier st to the state in the sales tax table and then calculating the amount of state sales tax owed on each line item. The options provided (i.e. $8.41, $687.21, $841.67, $5446.16) do not help determine the actual total state tax owed for each line item without further information.
2. The state tax owed on purchase order id 20510 can be found in the newly created column for state sales tax using the vlookup function to match supplier st to the state in the sales tax table and then finding the amount of state sales tax owed for the line item with purchase order id 20510. The options provided (i.e. $95.00, $14.29, $42.25, $21.80) do not help determine the actual state tax owed without further information.
3. The state sales tax owed on purchase order id 20525 can be found in the newly created column for state sales tax using the vlookup function to match supplier st to the state in the sales tax table and then finding the total amount of state sales tax owed for all line items with purchase order id 20525 and rounding if necessary. The options provided (i.e. $31.78, $19.50, $0.20, $14.62) do not help determine the actual state sales tax owed without further information.
4. The state sales tax rate for Minnesota can be found in the sales tax table.
5. For the second argument in a vlookup function, you typically select a full column that contains the data you want to retrieve.
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Investors require an 8% rate of return on Mather Company’s stock (i.e., r = 8%).
What is its value if the previous dividend was D0 = $1.25 and investors expect dividends to grow at a constant annual rate of (1) -2%, (2) 0%, (3) 3%, or (4) 5%?b. Using data from part a, what would the Gordon (constant growth) model value be if the required rate of return was 8% and the expected growth rate was (1) 8% or (2) 12%? Are these reasonable results? Explain. c. Is it reasonable to think that a constant growth stock could have g>rs ? Why or why not?
a. Using the formula V0 = D1/(r-g), the values of Mather Company's stock for (1) -2%, (2) 0%, (3) 3%, and (4) 5% growth rates are: $27.08, $15.63, $22.92, and $31.25, respectively.
b. Using the Gordon (constant growth) model with a required rate of return of 8%, the values of Mather Company's stock for (1) 8% growth rate and (2) 12% growth rate are: $31.25 and $41.67, respectively. These results are not reasonable because the growth rate cannot exceed the required rate of return in perpetuity, as this would imply an infinite value for the stock.
c. It is not reasonable for a constant growth stock to have a growth rate (g) greater than the required rate of return (rs) because this would imply an infinite value for the stock, which is not realistic. Additionally, a constant growth rate assumes a steady and predictable growth pattern, which would not be possible if the growth rate is greater than the required rate of return.
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2. Given the following information, calculate the value of a call option and a put option using the 1 period binomial option pricing model. 50 1.15 So = U = D = K= T = ? 60 1 Year 1 period per year 0.04 n = r=
In the one period binomial option pricing model, we can calculate the value of a call and put option as follows: the value of the call option is 0 and the value of the put option is 15.04.
Calculate the risk-neutral probability:
p = (1 + r - D) / (U - D)
where r is the risk-free rate.
Calculate the stock prices at the end of the period:
Su = So * U
Sd = So * D
Calculate the call and put option payoffs at the end of the period:
Call payoff = max(Su - K, 0)
Put payoff = max(K - Sd, 0)
Calculate the expected option payoffs at the current time:
Call value = (p * Call payoff + (1 - p) * Call payoff) / (1 + r)
Put value = (p * Put payoff + (1 - p) * Put payoff) / (1 + r)
Using the given information:
So = 50
U = 1.15
D = 1 / U = 0.8696
K = 60
T = 1 year
n = 1 period
r = 0.04
p = (1 + r - D) / (U - D) = (1 + 0.04 - 0.8696) / (1.15 - 0.8696) = 0.5407
Su = So * U = 50 * 1.15 = 57.50
Sd = So * D = 50 * 0.8696 = 43.48
Call payoff = max(Su - K, 0) = max(57.50 - 60, 0) = 0
Put payoff = max(K - Sd, 0) = max(60 - 43.48, 0) = 16.52
Call value = (p * Call payoff + (1 - p) * Call payoff) / (1 + r) = (0.5407 * 0 + 0.4593 * 0) / (1 + 0.04) = 0
Put value = (p * Put payoff + (1 - p) * Put payoff) / (1 + r) = (0.5407 * 16.52 + 0.4593 * 16.52) / (1 + 0.04) = 15.04
Therefore, the value of the call option is 0 and the value of the put option is 15.04.
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section 11 of the securities act creates a duty for accountants to perform their tasks with __
Section 11 of the Securities Act creates a duty for accountants to perform their tasks with due diligence.
Section 11 of the Securities Act creates a duty for accountants to perform their tasks with "due diligence." This means that accountants are required to carefully and thoroughly carry out their responsibilities in order to provide accurate and reliable financial information to investors and other stakeholders. Due diligence helps ensure the integrity of the financial reporting process and promotes trust in the financial markets.
Section 11 of the Securities Act states that:
1) Subject to the provisions of this Act, it shall be the duty of the Board to protect the interests of investors in securities and to promote the development of, and to regulate the securities market, by such measures as it thinks fit. (m) performing such other functions as may be prescribed.
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According to the Reinhart Rogoff fine exchange rate classification, what was Bangladesh's classification in 2016? Select one: A. Pre announced crawling band that is wider than or equal to +/-2% B. Freely floating C. No separate legal tender or currency union D. De facto peg
According to the Reinhart Rogoff fine exchange rate classification, Bangladesh's classification in 2016 was a pre-announced crawling band that is wider than or equal to +/- 2%. Correct answer is option A
A crawling band is a type of exchange rate regime where a country's central bank sets a target exchange rate and allows the exchange rate to fluctuate within a certain range or band. In the case of Bangladesh, the central bank announced a specific range within which the exchange rate could fluctuate, and the range was wider than or equal to +/- 2%.
This means that the exchange rate could fluctuate by up to 2% in either direction from the target exchange rate before the central bank would intervene to try to bring the exchange rate back within the target range.
This exchange rate classification suggests that Bangladesh had some degree of exchange rate stability, as the central bank was actively managing the exchange rate within a specified range. Thus Correct answer is option A
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You are considering an investment that has a nominal annual interest rate of 11.12 percent, compounded semiannually. Therefore, the effective annual rate, or EAR (annual percentage yield) is _____.
Round the answer to two decimal places in percentage form.
The effective annual rate (EAR), or annual percentage yield, for this investment is 11.49%.
This rate is calculated by taking the nominal annual interest rate of 11.12% and compounding it semiannually. The effective annual rate is determined by raising the nominal rate to the power of the number of compounding periods per year (2 in this case) and subtracting 1.
In this case, the equation is (1 + 0.1112/2)^2 – 1. The result of this equation is 0.1149, which, when expressed as a percentage, is 11.49%. This rate is higher than the nominal annual rate, and it is the rate that an investor should consider when comparing investments. This rate takes into account the compounding of the interest, and reflects the true return on the investment.
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1 points Save Answer What is the bond equivalent yield on a $1 million T-bill that currently sells at 92.972 percent of its face value and is 147 days from maturity? (write your answer in % and round
The bond equivalent yieldon a $1 million T-bill that currently sells at 92.972 percent of its face value is approximately 1.954%.
What is the bond equivalent yield on a $1 million T-bill ?The bond equivalent yield (BEY) is a measure of the annualized yield on a short-term debt instrument such as a Treasury bill. It is calculated using a simple formula that converts the discount rate on the bill to an annualized percentage rate.
In this case, we are given that the T-bill has a face value of $1 million, but it currently sells at 92.972% of its face value. This means that the market price of the T-bill is $929,720 (92.972% of $1 million).
To calculate the BEY, we need to first calculate the discount on the T-bill. The discount is simply the difference between the face value and the market price, which in this case is $70,280 ($1 million - $929,720).
Next, we need to calculate the discount rate on an annual basis. Since the T-bill has a remaining maturity of 147 days, we need to adjust the discount rate to reflect the time period.
We can use the following formula to calculate the discount rate:
Discount rate = (Discount / Face value) x (360 / Days to maturity)
Substizuting the values we have, we get:
Discount rate = ($70,280 / $1 million) x (360 / 147)
Discount rate = 0.07028 x 2.44898
Discount rate = 0.172%
Finally, we can use the following formula to convert the discount rate to the BEY:
BEY = (Discount rate / (100 - Discount rate)) x (365 / Days to maturity)
Substituting the values we have, we get:
BEY = (0.172% / (100% - 0.172%)) x (365 / 147)
BEY = 0.1742 x 2.48299
BEY = 0.433 or approximately 1.954% (when rounded to three decimal places)
Therefore, the bond equivalent yield on the T-bill is approximately 1.954%.
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christian's kitties has 100,000 shares of cumulative preferred stock outstanding which pays $4 per share. christian's kitties has not paid dividends the past two years. how much will christian's kitties have to pay its cumulative preferred stockholders this current year? group of answer choices 800,000 400,000 100,000 $1,200,000
Christian's kitties have to pay its cumulative preferred stockholders this current year will be $1,200,000. Option D is correct.
Since the cumulative preferred stock pays a dividend of $4 per share and there are 100,000 shares outstanding, the total amount of dividends owed to the preferred stockholders is;
100,000 shares x $4/share = $400,000
Since the preferred stock will be cumulative, any unpaid dividends from the previous years must also be paid before any dividends can be paid to a common stockholders. It is stated that Christian's Kitties has not paid dividends in the past two years, so the total amount of dividends owed to the preferred stockholders for the current year is;
$400,000 (current year dividends) + $400,000 (past year dividends) + $400,000 (dividends from two years ago) = $1,200,000
Therefore, christian's kitties have to pay $1,200,000.
Hence, D. is the correct option.
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--The given question is incomplete, the complete question is
"Christian's kitties has 100,000 shares of cumulative preferred stock outstanding which pays $4 per share. christian's kitties has not paid dividends the past two years. how much will christian's kitties have to pay its cumulative preferred stockholders this current year? group of answer choices A) $800,000 B) $400,000 C) $100,000 D) $1,200,000."--