Problems associated with debt refinancing can include changes in the mix of outputs, crowding in of deficit-financed private output activity, and reduced access to lendable funds for private investors.
These issues can create inefficiencies and distortions in the economy, which can lead to slower economic growth and reduced competitiveness for private firms.
Changes in the mix of outputs refer to the fact that when a government refinances its debt, it may need to increase the level of government spending or reduce taxes to help support economic growth. This can lead to a shift in the mix of outputs from the private sector to the public sector, which can create inefficiencies and distortions in the economy.
Crowding in of deficit-financed private output activity occurs when the government's deficit spending crowds out private investment. This can occur when the government borrows heavily to finance its spending, which can lead to higher interest rates and reduced access to credit for private investors.
As a result, private firms may scale back investment and reduce output, which can lead to slower economic growth.
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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%
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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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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when a salesperson figures out what the customer's problem is, works with the customer to create a vision of a solution, and then comes up with a plan to realize that vision, it is called:
Consultative selling is an approach that prioritizes understanding the customer's needs, collaborating on a solution, and developing a plan to achieve that solution. It is a customer-centric approach that can lead to more successful sales and long-term customer relationships.
Consultative selling is a sales approach that prioritizes building relationships with customers and understanding their needs. It involves a process of active listening, questioning, and problem-solving, where the salesperson acts as a consultant or advisor rather than just a seller.
In consultative selling, the salesperson starts by identifying the customer's pain points, challenges, and goals. They then work collaboratively with the customer to envision a solution that will meet their specific needs. This involves understanding the customer's unique circumstances, such as their budget, timeline, and other constraints.
Once the vision of the solution is clear, the salesperson creates a plan to realize that vision. This may involve proposing different product or service options, outlining the benefits of each, and helping the customer choose the best one for their situation.
Consultative selling is effective because it puts the customer's needs first, rather than just trying to sell them a product or service. By taking the time to understand the customer's situation and working with them to find the right solution, the salesperson builds trust and credibility, which can lead to long-term customer relationships.
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which action will best help an organization achieve operational excellence? multiple choice question. focusing on building an excellent supply chain focusing on having a good physical location focusing on achieving effective positioning focusing on retaining loyal customers
Focusing on building an excellent supply chain will best help an organization achieve operational excellence will best help an organization achieve operational excellence. Option A is correct
Operational excellence is the state of achieving maximum productivity, efficiency, and profitability by continuously improving business processes and procedures. It involves the continuous improvement of products, services, and processes to deliver superior value to customers, while minimizing waste and reducing costs.
Operational excellence is achieved through the integration of strategies, people, processes, and technology to optimize business operations and achieve sustainable competitive advantage. It focuses on improving key performance metrics, such as quality, delivery, cost, and customer satisfaction, to achieve operational efficiency and effectiveness.
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17. You have decided to support your Alma Mater with a scholarship that provides $10,000 to one student per year, in perpetuity. Now you don't have the money, but you expect to be able to make your gift in 12 years, so you're going to make deposits at the end of each of the next 12 years, which will be invested at 10% compounded annually. Suppose your Alma Mater also invests at that rate.
a. Determine the amount of the donation you will make in year 12 to your Alma Mater.
b. Determine the annuities that will allow you to achieve your goal.
a. We need to make annual deposits of $445.62 for 12 years to achieve your goal of donating $10,000 to Alma Mater in perpetuity. b. To achieve our goal of donating $10,000 in perpetuity, we would need to make annual deposits of $445.62 for 24.02 years, assuming an interest rate of 10% compounded annually.
a. To determine the amoun
t of the donation you will make in year 12, we can use the future value formula:
FV = PV x (1 + r)ⁿ
Where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods.
In this case, the present value of the donation is $0, and we want to find the future value of 12 deposits of $X at an interest rate of 10% compounded annually:
FV = X x ((1 + 0.10)¹²⁻¹) / 0.10
We want the future value to be $10,000, so we can set up the following equation:
10,000 = X x ((1 + 0.10)¹²⁻¹) / 0.10
Solving for X, we get:
X = 10,000 x 0.10 / ((1 + 0.10)¹²⁻¹) = $445.62
b. To determine the annuities that will allow you to achieve your goal, we can use the present value formula for an annuity:
PV = PMT x ((1 - (1 + r)⁻ⁿ) / r)
Where PV is the present value, PMT is the periodic payment (in this case, the annual deposit), r is the interest rate, and n is the number of periods.
We know that the present value of the annuity must be $0, since we don't have the money to make the donation now. We also know that the periodic payment is $445.62 and the interest rate is 10% compounded annually. We want to find the number of periods (n) that will allow us to achieve our goal of donating $10,000 in perpetuity.
We can rearrange the formula to solve for n:
n = -ln(1 - (PV x r / PMT)) / ln(1 + r)
Substituting the values we know, we get:
n = -ln(1 - (10,000 x 0.10 / 445.62)) / ln(1 + 0.10) = 24.02 years
Therefore, to achieve our goal of donating would need to make annual deposits of $445.62 for 24.02 years.
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brenda is the hr manager at core-tech, inc. she is trying to determine the training needs of her company. what is the first question she should consider?
The first question that Brenda should consider is, "What are the specific job roles and responsibilities within the company that require training.
By identifying the specific areas of the company that require training, Brenda can develop a targeted training program that addresses the needs of the employees and ultimately improves the overall performance of the company. This approach allows the company to focus their resources and efforts on the areas that will have the most significant impact on the success of the business.
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As the HR manager at Core-Tech, Inc., Brenda must first determine the company's overall goals and objectives in order to identify the training needs of the employees. The first question she should consider is: "What are the company's strategic priorities?"
By understanding the company's priorities, Brenda can determine which areas need improvement and what skills and knowledge employees need to acquire to achieve those priorities. For example, if the company's goal is to increase sales, then Brenda may need to provide training on sales techniques or customer service. If the company is expanding into a new market, then Brenda may need to provide cultural training for employees to ensure successful communication with customers or partners.
Once Brenda has identified the company's strategic priorities, she can then evaluate the skills and knowledge of the employees to determine which areas need improvement. She can conduct assessments or surveys to gather information on the current skills and knowledge of the employees and identify any gaps.
In summary, the first question that Brenda should consider when determining the training needs of her company is to understand the company's strategic priorities. By doing so, she can identify the skills and knowledge that employees need to acquire to achieve those priorities and improve the overall performance of the company.
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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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to calculate the present value of a business, the firm's should be discounted by the firm's . group of answer choices free cash flows; weighted average cost of capital operating cash flows; weighted average cost of capital free cash flows; cost of equity operating cash flows; cost of equity
To calculate the present value of a business, the firm's should be discounted by the firm's C. weighted average cost of capital free cash flows.
The Discounted Cash Flow (DCF) model considers the future free cash flows a firm is expected to generate and discounts them to their present value using the weighted average cost of capital (WACC). Free cash flows represent the cash available for distribution to investors, including both equity and debt holders, after all operating expenses and capital investments have been covered. This makes it an essential metric for determining the value of a business.
The WACC is a blended cost of capital, which takes into account the proportion of equity and debt in a firm's capital structure and their respective costs. By discounting the free cash flows with the WACC, we can arrive at an estimate of the present value of the firm, which represents the intrinsic value of the business from the perspective of its investors.
In summary, the DCF model involves discounting a firm's future free cash flows by its weighted average cost of capital to estimate the present value of the business. This method provides a comprehensive and accurate valuation based on a firm's cash-generating potential and its cost of capital. Therefore, the correct option is C.
The question was incomplete, Find the full content below:
to calculate the present value of a business, the firm's should be discounted by the firm's . group of answer choices
A. free cash flows
B. weighted average cost of capital operating cash flows
C. weighted average cost of capital free cash flows
D. cost of equity operating cash flows
E. cost of equity
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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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problem 10-36 (lo. 3, 6, 7, 8, 9, 11) marcus and madison are equal members of an llc. on january 1 of the current year, to acquire a one-third interest in the entity, nora contributed a parcel of land she had held for investment. (at this time, the entity was renamed mmn, llc.) nora had purchased the land for $120,000; its fair market value was $90,000 at the contribution date. a few years later, the llc sells nora's land for $84,000. at the beginning of that year, nora's tax basis capital account was $200,000 and marcus and madison's tax basis capital accounts were $170,000. question content area a. regarding the land sale, how much gain or loss is recognized and how is it allocated?
Nora's tax basis capital account was worth $200,000 at the start of that year, while Marcus and Madison's tax basis capital accounts were worth $170,000 each. Marcus, Madison, and Nora each face a $12,000 loss from the $36,000 loss associated with the land transaction. This loss is divided equally among the three of them.
In Problems 10-36, Marcus and Madison are equal members of an LLC, and Nora contributes a parcel of land to acquire a one-third interest in the entity. Nora's tax basis in the land is $120,000, while the fair market value at the contribution date is $90,000. Later, the LLC sells Nora's land for $84,000. At the beginning of that year, Nora's tax-basis capital account was $200,000, and Marcus and Madison's tax-basis capital accounts were $170,000.
To determine the gain or loss recognized from the land sale, you must first calculate the difference between the sale price and Nora's tax basis in the land:
Gain or loss = Sale price - Tax basis
Gain or loss = $84,000 - $120,000
Gain or loss = -$36,000
Since the result is negative, the LLC recognizes a loss of $36,000 from the land sale.
Now, to allocate the loss among the LLC members, you must consider their respective ownership interests in the entity. Marcus and Madison each have a one-third interest, while Nora has a one-third interest as well. Therefore, the $36,000 loss should be allocated equally among the three members:
Allocated loss per member = Total loss / Number of members
Allocated loss per member = $36,000 / 3
Allocated loss per member = $12,000
So, regarding the land sale, a $36,000 loss is recognized, and it is allocated equally among Marcus, Madison, and Nora, with each member bearing a $12,000 loss.
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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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MacKinnon Co. currently has EBIT of $32,000 and is all equity financed. EBIT are expected to grow at a rate of 4% per year. The firm pays corporate taxes equal to 33% of taxable income. The cost of equity for this firm is 20%. What is the market value of the firm? Enter your answer rounded to two decimal places. Number Click "Verify" to proceed to the next part of the question. This question has 3 parts, so you will be clicking verify 3 times. Section Attempt 1 of 1 Verify
The market value of MacKinnon Co. is approximately$134,000.00.
To find the market value of MacKinnon Co., which has an EBIT of $32,000, is all equity financed, and expects EBIT to grow at 4% per year, we need to calculate the after-tax operating income and then use the dividend discount model. First, calculate the after-tax operating income:After-tax operating income = EBIT * (1 - Tax Rate)After-tax operating income = $32,000 * (1 - 0.33)After-tax operating income = $21,440
Next, use the dividend discount model to find the market value:Market value = After-tax operating income / (Cost of Equity - Growth Rate)Market value = $21,440 / (0.20 - 0.04)Market value = $21,440 / 0.16Market value = $134,000Therefore, the market value of MacKinnon Co. is approximately$134,000.00.
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Your broker charges $0.0013 per share per trade. The exchange charges $0.0077 per share per trade for removing liquidity and credits $0.0059 per share per trade for adding liquidity. The current best BID price for stock XYZ is $64.97 per share, while the current best ASK price is $64.98 per share. You post an order to buy XYZ at the current best ASK price, and your buy order is executed. Shortly after, the best BID and ASK prices move lower (down) by one cent each. Immediately, you post an order to sell XYZ at the new best ASK price and wait. Shortly after, the best BID and ASK prices move higher (up) by one cent each. Your sell order is executed. What will be your net loss per share to buy and sell XYZ after considering the commissions and any exchange fees or credits?
Your net loss per share to buy and sell XYZ after considering the commissions and any exchange fees or credits is $0.0144.
To calculate the net loss per share, follow these steps:1. Buy XYZ at the best ASK price: $64.98 per share.
Broker's fee: $0.0013 per share.
Exchange fee for removing liquidity: $0.0077 per share.
Total cost to buy one share: $64.98 + $0.0013 + $0.0077 = $64.989 per share.
2. The best BID and ASK prices move lower by one cent each.
New best ASK price: $64.97 per share.
3. Post an order to sell XYZ at the new best ASK price: $64.97 per share.
Exchange credit for adding liquidity: $0.0059 per share.
4. The best BID and ASK prices move higher by one cent each.
Your sell order is executed at the previous ASK price: $64.97 per share.
Broker's fee: $0.0013 per share.
Total amount received for selling one share: $64.97 - $0.0013 + $0.0059 = $64.9746 per share.
5. Calculate the net loss per share.
Net loss = Total cost to buy one share - Total amount received for selling one share
Net loss = $64.989 - $64.9746 = $0.0144 per share.
Your net loss per share to buy and sell XYZ is $0.0144.
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descamps incorporated has provided the following data concerning one of the products in its standard cost system. variable manufacturing overhead is applied to products on the basis of direct labor-hours. inputs standard quantity or hours per unit of output standard price or rate variable manufacturing overhead 0.20 hours $ 6.10 per hour the company has reported the following actual results for the product for july: actual output 4,200 units actual direct labor-hours 780 hours actual variable overhead rate $ 6.20 per hour the variable overhead rate variance for the month is closest to: multiple choice $78 f $84 f $78 u $84 u
The variable overhead rate variance for the month is $78 favorable, which means that the actual variable overhead rate was slightly higher than the standard variable overhead rate, but the company saved money due to the favorable variance.
To calculate the variable overhead rate variance, we need to compare the actual rate per hour with the standard rate per hour and then multiply it by the actual hours worked.
The standard variable overhead rate per hour is $6.10, and the actual variable overhead rate per hour is $6.20.
The variable overhead rate variance is calculated as follows:
Actual Hours Worked x (Actual Variable Overhead Rate - Standard Variable Overhead Rate)
780 x ($6.20 - $6.10) = $78 favorable
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the stetler model of evidence-based practice consists of four sequential phases. its is?
The Stetler model has five phases: planning, validation, comparison/decision making, translation/application, and assessment.
The Stetler research utilization model aids professionals to decide how to employ research outputs and other pertinent knowledge in practice. This approach looks at both the formal change that can be made within organizations using evidence and the informal use of research by practitioners as part of critical thinking and reflective practice. The paradigm connects research utilization with evidence-informed practice as a first step.
The Stetler model offers a means to consider the connection between the application of research and practice based on evidence. These two ideas are not interchangeable. The general application of research is improved by integrating both ideas.
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a bond is redeemable in eight years at 120% of its par value. the bond pays an annual coupon rate of 6%. calculate the premium as a percent of the par value if the bond is purchased to yield 6% annually.
Using a financial calculator or spreadsheet, we can input the following variables:
- N (number of periods): 8
- I/Y (yield): 6%
- PMT (coupon payment): 6% of the par value
- FV (future value): 120% of the par value
Solving for PV (present value), we get:
PV = $1,000 / (1 + 6%)^1 + $60 / (1 + 6%)^2 + ... + $1,200 / (1 + 6%)^8
PV = $851.36
This means that the bond is worth $851.36 today if it is purchased to yield 6% annually.
To calculate the premium as a percent of the par value, we can subtract the present value from the future value and divide by the par value:
Premium = ($1,200 - $851.36) / $1,000
Premium = 34.86%
Therefore, the premium as a percent of the par value is 34.86% if the bond is purchased to yield 6% annually.
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Suppose that the total debt on credit cards in 2019 was $1,088 billion, and that this was an increase from the year before. This would cause the M1 money supply to ____ and the M2 money supply to ______.
Group of answer choices
A. increase; increase
B. decrease; decrease
C. remain unchanged; remain unchanged
D. remain unchanged; increase
The correct answer is (A) increase; increase.
The terms "total debt," "M1," and "M2" are related to money supply in an economy.
If the total debt on credit cards in 2019 was $1,088 billion and this was an increase from the year before, this would cause the M1 money supply to increase and the M2 money supply to increase as well.
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The correct answer is A. increase; increase.
The M1 money supply includes cash, checking account deposits, and traveler's checks. Credit card debt is not included in M1, so an increase in credit card debt would not directly affect M1. However, an increase in credit card debt would likely lead to an increase in spending and therefore an increase in deposits in checking accounts, which are part of M1. As a result, M1 would increase.
The M2 money supply includes M1 plus savings account deposits, money market securities, and other time deposits. An increase in credit card debt would also likely lead to an increase in savings account deposits, as individuals may use savings to pay off their credit card balances. This would result in an increase in M2.
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suppose the market risk premium is currently 6%. if investors were to become more risk-averse, the market risk premium might increase to 8%. what effect would you expect this to have on the prices of most financial assets?
If the market risk premium were to increase from 6% to 8%, we would expect to see a decrease in the prices of most financial assets.
This is because a higher market risk premium indicates that investors are demanding a higher return for taking on additional risk.
Therefore, the cost of borrowing increases for businesses and individuals, which in turn reduces their spending and investment.
As a result, companies may experience a decrease in revenue and profitability, leading to a decline in stock prices. Bonds may also be affected as investors demand higher yields to compensate for the increased risk, resulting in a decrease in bond prices.
In general, an increase in the market risk premium leads to a decrease in demand for financial assets, resulting in a drop in their prices.
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A company with an external labor orientation would be more likely to acquire a new company to gain employee expertise than would a company with an internal labor orientation. True or False?
The given statement "a company with an external labor orientation would be more likely to acquire a new company to gain employee expertise than a company with an internal labor orientation" is True, because external labor orientation is looking for specific employee expertise.
External labor orientation refers to a company's strategy to seek talent and expertise from outside the organization. This can be done through hiring employees from competitors, recruiting from educational institutions, or acquiring other companies to gain access to their human resources.
In contrast, an internal labor orientation focuses on developing and nurturing talent from within the company. This can involve providing training programs, promoting from within, and retaining employees for long-term growth.
When a company with an external labor orientation is looking for specific employee expertise, they may choose to acquire a new company as a strategic move. This allows them to gain access to a pool of skilled workers that have the desired expertise and integrate them into their existing workforce.
On the other hand, a company with an internal labor orientation is more likely to invest in training and development for their existing employees to build the required expertise. They may be less inclined to acquire another company solely for gaining employee expertise, as they prefer to grow their talent organically within the organization.
In summary, the statement is true, as companies with an external labor orientation are more likely to acquire new companies to gain employee expertise compared to those with an internal labor orientation.
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The British pound (GBP) rises in value relative to the dollar.
This appreciation would benefit/harm British consumers but harm/benefit British producers.
When the British pound (GBP) rises in value relative to the dollar, this appreciation would benefit British consumers but harm British producers.
This is because a stronger GBP allows consumers to purchase more imported goods at lower prices, while it makes British-produced goods more expensive for foreign buyers, potentially reducing demand for these goods in international markets.
Benefits for British Consumers:
When the GBP appreciates, it can lead to lower prices for imported goods for British consumers. This is because when the GBP is stronger, it can buy more of other currencies, such as the USD.
As a result, when British consumers buy goods from countries that use the USD or other currencies, such as the United States, they can purchase more goods for the same amount of GBP.
This can increase the purchasing power of British consumers, allowing them to buy more imported goods at lower prices. This can benefit consumers as they have access to a wider range of goods and potentially better deals on imported products.
Harm for British Producers:
On the other hand, a stronger GBP can negatively impact British producers, especially those who rely on exports. When the GBP is stronger, it makes British-produced goods more expensive for foreign buyers who use other currencies, such as the USD, to purchase these goods.
This can reduce the demand for British goods in international markets as they become relatively more expensive compared to goods produced in countries with weaker currencies.
As a result, British producers may face challenges in maintaining their competitiveness in international markets, which can potentially harm their sales and profits.
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Suppose the returns on Asset Y are normally distributed. The average annual return for this asset over 50 years was 12.7 percent and the standard deviation of the returns was 22.1 percent. Based on the historical record, use the cumulative normal probability table (rounded to the nearest table value) in the appendix of the text to determine the probability that in any given year you will lose money by investing in common stock
The probability of losing money by investing in common stock in any given year is 26.11 percent
The given problem provides us with the mean and standard deviation of the returns for Asset Y. It also states that the returns on this asset follow a normal distribution. Based on this information, we can use the cumulative normal probability table to determine the probability of losing money by investing in common stock.
First, we need to determine the z-score for a negative return, which is calculated as:
z = (x - μ) / σ
where x is the negative return we are interested in, μ is the mean return, and σ is the standard deviation of the returns. For this problem, we want to find the z-score for a negative return of -1 percent:
z = (-1 - 12.7) / 22.1 = -0.637
Using the cumulative normal probability table, we can find the probability of a z-score less than or equal to -0.637. From the table, we find that the probability is 0.2611, rounded to the nearest table value.
Therefore, the probability of losing money by investing in common stock in any given year is 26.11 percent. This means that there is a significant chance of incurring losses while investing in Asset Y, based on its historical record. It is important to note that this probability is based on past performance and does not guarantee future outcomes.
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when the mix of products sold shifts toward the high contribution margin product, the total: a. sales mix variance is favorable b. sales volume variance is favorable c. market mix variance is favorable d. sales mix variance is unfavorable e. sales price variance is favorable
When the mix of products sold shifts toward the high contribution margin product, the total sales mix variance is favorable. The correct option is a.
This is because the sales mix variance measures the effect on profit of changes in the proportion of products sold, holding the total sales volume constant. When a company sells a higher proportion of products with higher contribution margins, the total contribution margin will increase, resulting in a favorable sales mix variance.
The sales volume variance measures the effect on profit of changes in total sales volume, while the market mix variance is not a commonly used variance in accounting. The sales price variance measures the effect on profit of changes in the selling price of a product. The correct option is a.
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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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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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what is the cash realizable value if anderson incorporated estimates that 4% of average short-term notes receivable will be uncollectable when the beginning balance is $62,000 and the year-end balance is $68,000?
The cash realizable value for Anderson Incorporated is $62,400.
How to calculate the cash realizable valueThe cash realizable value represents the amount of money that Anderson Incorporated expects to collect from its short-term notes receivable after accounting for uncollectable amounts.
To calculate this, we first need to determine the average short-term notes receivable and then estimate the uncollectable amount.
1. Calculate the average short-term notes receivable:
(Assuming the beginning and year-end balances are the only data points available)
Average = (Beginning Balance + Year-End Balance) / 2
Average = ($62,000 + $68,000) / 2
Average = $65,000
2. Estimate the uncollectable amount:
Uncollectable Amount = Average Short-Term Notes Receivable x Uncollectable Percentage
Uncollectable Amount = $65,000 x 4%
Uncollectable Amount = $2,600
3. Calculate the cash realizable value:
Cash Realizable Value = Average Short-Term Notes Receivable - Uncollectable Amount
Cash Realizable Value = $65,000 - $2,600
Cash Realizable Value = $62,400
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Today the common stock of Gresham Technology closed at $21.80 per share, down $0.33 from yesterday. If the company has 4.1 million shares outstanding and annual earnings of $10.4 million, what is its P/E ratio today? What was its P/E ratio yesterday?
Yesterday's P/E ratio for Gresham Technology was 8.71.
To calculate the P/E ratio, we need to divide the current stock price by the earnings per share (EPS). The EPS is calculated by dividing the annual earnings by the number of shares outstanding.
EPS = Annual earnings / Number of shares outstanding
EPS = $10.4 million / 4.1 million
EPS = $2.54 per share
Today's P/E ratio can be calculated as:
P/E ratio = Stock price / EPS
P/E ratio = $21.80 / $2.54
P/E ratio = 8.58
Therefore, today's P/E ratio for Gresham Technology is 8.58.
To calculate yesterday's P/E ratio, we need to adjust the EPS based on the earnings and the number of shares outstanding yesterday, as we do not have the stock price yesterday. We assume that the earnings did not change overnight.
If we assume that the number of shares outstanding did not change, then yesterday's EPS would be the same as today's EPS, which is $2.54 per share. If we further assume that the stock price yesterday was $22.13 per share (i.e., $21.80 + $0.33), then yesterday's P/E ratio can be calculated as:
P/E ratio = Stock price / EPS
P/E ratio = $22.13 / $2.54
P/E ratio = 8.71
Therefore, yesterday's P/E ratio for Gresham Technology was 8.71.
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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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On April 1, 2022, you purchased the bond corporate bonds with a 6.15% annual coupon rate a maturity date of October 1, 2037. Suppose that you paid $89.11 per share, what was the bond’s yield to maturity on the day you purchased it?
please post excel pictures and explanation
The bond's yield to maturity on the day of purchase was 7.51%.
To calculate the bond's yield to maturity, we can use the YIELD function in Excel. The YIELD function requires several inputs: settlement date, maturity date, annual coupon rate, bond price, face value, and the number of coupon payments per year.
Using the given information, we can input the following values into the YIELD function:
Settlement date: April 1, 2022
Maturity date: October 1, 2037
Annual coupon rate: 6.15%
Bond price: $89.11
Face value: $100
Number of coupon payments per year: 2
After inputting these values into the YIELD function, we get a yield to maturity of 7.51%. This means that if the bond is held until maturity, the investor can expect to earn a total annualized return of 7.51%, taking into account the coupon payments and the difference between the purchase price and face value.
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mc qu. 48 evelyn, a manager at a small restaurant... evelyn, a manager at a small restaurant, is engaged in conducting the accounting cycle. she begins by examining checks, credit card receipts, sales slips, and other related evidence concerning specific transactions. which step should she follow immediately after this?
Evelyn, as a manager at a small restaurant, is engaged in conducting the accounting cycle. After examining checks, credit card receipts, sales slips, and other related evidence concerning specific transactions, the step she should follow immediately after this is B) The financial transactions must be recorded in a journal.
This step, known as journalizing, involves recording financial transactions in chronological order. The journal helps to maintain a clear and organized record of all business transactions, making it easier to understand and analyze the company's financial position. Journal entries typically include details such as the date, account titles, and amounts of debits and credits associated with each transaction.
After journalizing, the accounting cycle continues with additional steps such as posting transactions to a ledger (Step C), preparing a trial balance, and ultimately preparing financial statements (Step E). It's important to note that Step D, having a hired certified Public Accountant attest that generally accepted accounting principles were used, is not an immediate step following the examination of transaction evidence. This would typically occur after the completion of the accounting cycle and the preparation of the financial statements. Therefore, the correct option is B.
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Evelyn, a manager at a small restaurant, is engaged in conducting the accounting cycle. she begins by examining checks, credit card receipts, sales slips, and other related evidence concerning specific transactions. which step should she follow immediately after this?
A) The annual reports must be prepared.
B) The financial transactions must be recorded in a journal.
C) The information from the journal must be transferred to a ledger.
D) The hired certified Public Accountant must attest that generally accepted accounting principles were used.
E) The information from the trial balance should be used to prepare the financial statements.
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