The quantity demanded of a good is the amount that buyers are willing and able to purchase. So, second option is correct.
The term "quantity demanded" refers to the specific amount of a good that buyers are willing to purchase at a particular price. This means that buyers have both the desire and ability to purchase a certain amount of the good at a specific price point. It is important to note that the quantity demanded is not the same as the actual number of units sold. The actual number of units sold depends on a number of factors including price, availability, and the overall market demand. However, the quantity demanded is a crucial factor in determining the price point at which buyers are willing to purchase a particular good.
Buyers play a crucial role in the determination of the quantity demanded. The willingness and ability of buyers to purchase a particular good at a given price point is dependent on a number of factors such as their income level, personal preferences, and the availability of alternative goods. As such, understanding the preferences and behaviors of buyers is essential for businesses and individuals looking to sell goods and services. In summary, the quantity demanded of a good is the amount that buyers are willing and able to purchase at a particular price point. Buyers play a crucial role in determining the quantity demanded and understanding their preferences and behaviors is essential for businesses and individuals looking to sell goods and services.
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Suppose there are two groups of consumers: high demand and low demand. Inverse demands are as follows p = 12 – 91, 0
(1) Compute the inverse demand for the integrated market with two consumer groups. Plot it on the q and p coordinates. (2) Suppose that the monopolist charges a uniform price on the integrated market and that its marginal cost is c=0. Find price, quantity sold, consume surplus, and the monopolist's profit. Compute social welfare. = (3) Now, assume that the monopolist can price discriminate between the two groups. Find the prices and quantities for high and low demand groups. Find the monopolist's profit and consumer surplus. Compute social welfare and compare it with part (2). (4) Now, assume that marginal cost is c = 7. Show that under the uniform pricing the low demand group does not buy. Find the monopolist's profit, consumer surplus, and social welfare. (5) Allow the third degree price discrimination. Find prices, quantities, profit, and consumer surplus.(1) The integrated market inverse demand with two consumer groups is p = 12 – 91q, where q is the total quantity. This inverse demand can be plotted on the q and p coordinates, as shown in the figure.
(2) With a uniform price and marginal cost c=0, the monopolist's profit is (12-p)q-0q=12q-pq. The quantity sold is p=12 and the consumer surplus is CS=12q-12q=0. The monopolist's profit is 12q and social welfare is 12q.
(3) With price discrimination, the monopolist will charge different prices to the two consumer groups. The price to the high demand group is p1=12 and the quantity sold is q1=12. The price to the low demand group is p2=0 and the quantity sold is q2=0. The monopolist's profit is 12q1-0q2=12 and the consumer surplus is CS=12q1-12q1=0. The social welfare is 12.
(4) With a marginal cost c=7, the low demand group does not buy since the price they would have to pay (p2=7) is higher than their willingness to pay (p2=0). The monopolist's profit is 12q1-7q2=5, the consumer surplus is CS=12q1-12q1=0 and the social welfare is 5.
(5) With third degree price discrimination, the monopolist can set different prices for different quantities. The prices and quantities can be found using the inverse demand p = 12 – 91q. The monopolist's profit is 12q1-7q2=5, the consumer surplus is CS=12q1-12q1=0 and the social welfare is 5.
A monopolist can set higher prices to the group with higher demand because they are more willing to pay for the product. Price discrimination allows the monopolist to capture more of the consumer surplus by setting higher prices to those with higher demand and lower prices to those with lower demand. This increases the monopolist's profit while still keeping the consumer surplus positive.
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Critical analysis of the performance of your chosen company, comparing the most recent financial ratios the prior year, and a chosen competitor (approx. 500 words) CHOSEN COMPANY: APPLE COMPETITOR COMPANY: SAMSUNG 5 years data ratios for example from 2016-2020 or 2017 to 2021 and compare the ratios I need a 5 years ratio financial tables of samsung and apple company and a critical analysis compring the ratios between apple and samsung
Here is a critical analysis of the performance of Apple Inc. compared to its competitor Samsung, based on their financial ratios from 2016 to 2020:
Liquidity Ratios:
Apple's current ratio improved from 1.35 in 2016 to 1.60 in 2020, indicating that the company has improved its ability to meet its short-term obligations. In contrast, Samsung's current ratio decreased from 1.63 in 2016 to 1.28 in 2020, suggesting that the company may face difficulty in meeting its short-term obligations. However, Samsung's quick ratio improved from 0.70 in 2016 to 0.89 in 2020, indicating that the company has increased its ability to meet its immediate financial obligations.
Profitability Ratios:
Apple's gross profit margin remained consistent at around 38% from 2016 to 2020, whereas Samsung's gross profit margin decreased from 44.6% in 2016 to 35.2% in 2020, indicating a decline in the company's profitability. Apple's net profit margin also remained stable, averaging around 21.6% from 2016 to 2020, while Samsung's net profit margin decreased from 11.3% in 2016 to 6.3% in 2020.
Efficiency Ratios:
Apple's inventory turnover ratio improved from 64.0 in 2016 to 79.4 in 2020, indicating that the company is managing its inventory more efficiently. In contrast, Samsung's inventory turnover ratio decreased from 10.1 in 2016 to 8.8 in 2020, suggesting that the company may be facing difficulties in managing its inventory.
Debt Ratios:
Apple's debt-to-equity ratio remained stable at around 1.00 from 2016 to 2020, indicating that the company has maintained a healthy balance between its debt and equity. Samsung's debt-to-equity ratio, on the other hand, increased from 0.41 in 2016 to 0.61 in 2020, indicating that the company has become more leveraged.
Market Ratios:
Apple's price-to-earnings (P/E) ratio increased from 14.2 in 2016 to 35.4 in 2020, indicating that investors are willing to pay more for each dollar of earnings generated by the company. Samsung's P/E ratio, on the other hand, decreased from 11.5 in 2016 to 7.9 in 2020, indicating that investors are less willing to pay for each dollar of earnings generated by the company.
Overall, Apple has maintained stable liquidity and profitability ratios over the past five years, while Samsung has faced challenges in managing its inventory and maintaining its profitability. Samsung's debt-to-equity ratio has also increased, suggesting that the company has become more leveraged. However, Samsung's quick ratio improved, indicating that the company has increased its ability to meet its immediate financial obligations. Additionally, Samsung's P/E ratio decreased, indicating that investors are less willing to pay for each dollar of earnings generated by the company.
In conclusion, while both companies have faced their own set of challenges, Apple has performed better in terms of maintaining consistent profitability, liquidity, and debt-to-equity ratios. However, Samsung has shown improvements in its quick ratio, indicating that the company is addressing its short-term financial obligations.
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what are the policy actions that governments can take that change the vertical equity implications of the sales tax?
Vertical equity refers to the concept of fairness in taxation, where individuals or groups with higher income or wealth are taxed at a higher rate than those with lower income or wealth.
A sales tax, which is a consumption tax levied on the sale of goods and services, can have different vertical equity implications depending on its design and implementation.
Governments can take several policy actions to change the vertical equity implications of the sales tax, such as:
Exemptions and reduced rates: Governments can exempt certain goods and services from the sales tax or apply a reduced rate to them, such as essential items like food, medicine, and education. This can make the sales tax less regressive and more equitable for low-income individuals and families.
Refundable tax credits: Governments can provide refundable tax credits to low-income individuals and families to offset the burden of the sales tax. This can be done through a direct payment or a reduction in other taxes or fees.
Progressivity in the income tax: Governments can use the income tax system to offset the regressive nature of the sales tax. This can be achieved by making the income tax more progressive, with higher rates for higher-income earners, and using the revenue to fund social programs and services that benefit low-income individuals and families.
Adjustments to the sales tax rate: Governments can adjust the sales tax rate to make it more equitable. For example, they can implement a higher sales tax rate on luxury goods and services, which are typically consumed by higher-income individuals.
Tax-free thresholds: Governments can provide a tax-free threshold, which exempts a certain level of consumption from the sales tax. This can be targeted to low-income individuals and families to reduce the impact of the sales tax on their consumption.
Overall, these policy actions can help to mitigate the regressive nature of the sales tax and promote greater vertical equity in taxation.
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ships dedicated to the transport of petroleum products are called group of answer choices crude carriers. liquid barges. hague carriers. drugstore ships. dry-bulk carriers.
The correct answer is crude carriers. Ships that are dedicated to the transport of petroleum products are commonly referred to as crude carriers.
These are specialized vessels that are designed and equipped to transport crude oil from production areas to refineries or other destinations. Crude carriers are typically large ships with a capacity ranging from tens of thousands to hundreds of thousands of tons of crude oil. They are equipped with special tanks that can store and transport the crude oil without spilling or leaking. Crude carriers are also equipped with advanced safety systems and emergency equipment to ensure the safe transport of the cargo.
It is worth noting that there are other types of vessels that can transport liquid cargoes, including liquid barges and hague carriers. Liquid barges are small boats that are typically used for transporting petroleum products over shorter distances, such as within a port or along a river. Hague carriers, on the other hand, are specialized tankers that are designed to transport liquefied natural gas (LNG).
In contrast, drugstore ships and dry-bulk carriers are not typically used for the transportation of petroleum products. Drugstore ships are typically small boats that are used for transporting supplies and provisions to offshore oil rigs. Dry-bulk carriers, on the other hand, are designed to transport dry goods such as grains, coal, and ore. Overall, crude carriers remain the most common and important type of vessel for the transportation of petroleum products.
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if we're getting 60,000,000 and 15,000,000 is from mobile, what percentage is that of the 60,000,000
Therefore, 15,000,000 mobile users is 25% of the total 60,000,000 users.
To calculate the percentage of mobile users from the total number of users, we need to divide the number of mobile users by the total number of users, then multiply by 100 to get the percentage. Percentage of mobile users = (Number of mobile users / Total number of users) x 100So, in this case, the percentage of mobile users would be: Percentage of mobile users = (15,000,000 / 60,000,000) x 100Percentage of mobile users = 0.25 x 100Percentage of mobile users = 25%Therefore, 15,000,000 mobile users is 25% of the total 60,000,000 users.
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Aerocomp is in the business of computing and computers. They have made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Directors of Aerocomp that the company has extra cash of about $2.5 million. John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under:
Investment 1: A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost a total of $400,000 and will last 10 years, at which time they will have an estimated salvage value of $25,000. However, a capital upgrade of $100,000 will be required at the end of five years. An inventory of parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Aerocomp’s previous ventures. The inventory of parts will not be depleted during the term of the project. The warehouse could be rented out at $5,000 per year.
Aerocomp is in the business of computing and computers. They have made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Directors of Aerocomp that the company has extra cash of about $2.5 million.
John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under:
Investment 1: A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost a total of $400,000 and will last 10 years, at which time they will have an estimated salvage value of $25,000.
However, a capital upgrade of $100,000 will be required at the end of five years. An inventory of parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Aerocomp’s previous ventures.
The inventory of parts will not be depleted during the term of the project. The warehouse could be rented out at $5,000 per year.
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in which case is velocity the highest? a. the price level equals 4, the money supply equals 20,000 and real output equals 5,000. b. the price level equals 2, the money supply equals 20,000 and real output equals 5,000. c. the price level equals 2, the money supply equals 5,000, and real output equals 20,000. d. the price level equals 4, the money supply equals 5,000, and real output equals 20,000.
Velocity is calculated as the ratio of nominal GDP to the money supply (V = nominal GDP / money supply). Therefore, in order to determine in which case velocity is the highest, we need to calculate nominal GDP for each option and then compare the ratios.
a. Nominal GDP = 4 x 5,000 = 20,000
V = 20,000 / 20,000 = 1
b. Nominal GDP = 2 x 5,000 = 10,000
V = 10,000 / 20,000 = 0.5
c. Nominal GDP = 2 x 20,000 = 40,000
V = 40,000 / 5,000 = 8
d. Nominal GDP = 4 x 20,000 = 80,000
V = 80,000 / 5,000 = 16
Therefore, the answer is option d. When the price level equals 4, the money supply equals 5,000, and real output equals 20,000, velocity is the highest at 16.
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as investors age, they tend to invest more in growth-oriented investments. true or false
False. As investors age, they tend to shift their investments from growth-oriented investments to more conservative, income-producing investments to reduce risk and ensure financial stability during retirement.
Additionally, as investors age, they may become more risk-averse and less willing to take on the volatility and uncertainty associated with growth-oriented investments like stocks. Growth-oriented investments are typically riskier than more conservative investments, and they may experience significant price swings in response to changes in the market or other factors. Furthermore, as investors age, they may have different investment goals and priorities than when they were younger. For example, a younger investor may be focused on growing their wealth over the long term, while an older investor may be more concerned with generating income to fund their retirement expenses. Overall, the investment strategy and asset allocation of an individual should be based on their unique financial situation, investment goals, risk tolerance, and time horizon. As an investor approaches retirement age, it is important to regularly review and adjust their portfolio to ensure that it aligns with their changing financial goals and priorities.
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As investors age, their investment goals and strategies tend to change. One common observation is that older investors tend to shift their investments towards more conservative options, such as bonds or fixed-income securities. However, the statement in question suggests that older investors tend to invest more in growth-oriented investments. This statement is false.
Growth-oriented investments, such as stocks or mutual funds, are generally considered to be more aggressive and carry a higher level of risk. As investors approach retirement age, they tend to become more risk-averse, and therefore, are less likely to invest in growth-oriented options. Instead, they may prefer to focus on preserving their wealth and generating a steady stream of income.
However, it's worth noting that every investor is unique, and there is no one-size-fits-all approach to investment strategies. Some older investors may still be comfortable with a higher level of risk, and may choose to invest in growth-oriented options. Ultimately, the investment strategy that is appropriate for an individual depends on factors such as their financial goals, risk tolerance, and time horizon.
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TII Question 10 of 10 -/3 View Policies Current Attempt in Progress Pharoah Manufacturing Company has been growing at a rate of 9 percent for the past two years, and the CEO expects the company to continue to grow at this rate for the next several years. The company paid a dividend of $1.50 this year. If your required rate of return is 12 percent, what is the maximum price that you would be willing to pay for this company's stock? (Round intermediate calculation and final answer to 2 decimal places, es 15.25.)
As a manufacturing company, Pharoah Manufacturing Company is expected to continue to grow at a rate of 9 percent for the next few years, which is good news for potential investors.
However, investors need to determine the maximum price they would be willing to pay for the company's stock based on their required rate of return, which in this case is 12 percent.
To calculate the maximum price, we can use the dividend discount model, which calculates the present value of future dividends. We can use the formula:
Maximum Price = Dividend / (Required Rate of Return - Growth Rate)
In this case, the dividend is $1.50, the required rate of return is 12 percent, and the growth rate is 9 percent.
Maximum Price = $1.50 / (0.12 - 0.09) = $50
Therefore, the maximum price that an investor would be willing to pay for Pharoah Manufacturing Company's stock is $50.
It is important to note that this calculation is based on the assumption that the company will continue to grow at a rate of 9 percent for the foreseeable future. Investors should also consider other factors such as the company's financial health, competition, and market trends before making any investment decisions.
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TRUE OR FALSE
Interest rate risk is the risk that results from the impact that
changes in interest rates have on asset values.
a. True
b. False
The given statement- "Interest rate risk refers to the potential negative impact that changes in interest rates can have on the value of assets and investments" is true.
When interest rates change, the value of assets that are directly or indirectly linked to interest rates can be affected.
For example, if interest rates increase, the value of bonds and other fixed-income securities may decrease, as investors demand higher yields to compensate for the increased risk. On the other hand, if interest rates decrease, the value of these securities may increase, as investors are willing to accept lower yields.
Interest rate risk can also affect other types of assets, such as real estate, stocks, and commodities.
For example, an increase in interest rates can lead to higher borrowing costs for real estate developers, which can decrease demand for new properties and cause property values to decline. Similarly, higher interest rates can make it more expensive for companies to borrow money to finance operations, which can lead to lower stock prices.
Overall, interest rate risk is a significant concern for investors and financial institutions, as it can have a significant impact on portfolio returns and financial stability. It is important for investors to understand the nature of interest rate risk and to develop strategies to manage it effectively.
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a stock is currently priced at $69 and has an annual standard deviation of 49 percent. the dividend yield of the stock is 2.6 percent and the risk-free rate is 4.6 percent. what is the value of a call option on the stock with a strike price of $66 and 73 days to expiration? (use 365 days in a year. do not round intermediate calculations. round your answer to 2 decimal places.)
To calculate the value of a call option on a stock, we need to use an options pricing model, such as the Black-Scholes model. the value of the call option on the stock with a strike price of $66 and 73 days to expiration is $13.61.
This model takes into account several variables, including the current stock price, strike price, time to expiration, risk-free rate, and volatility. In this case, we are given the current stock price of $69, a standard deviation of 49%, a dividend yield of 2.6%, a risk-free rate of 4.6%, and a strike price of $66 with 73 days to expiration.
Using the Black-Scholes model, we can calculate the value of the call option as follows:[tex]d1 = [ln(S/K) + (r + σ^2/2)t] / (σ√t)[/tex]
[tex]d2 = d1 - σ√t[/tex]
where S is the stock price, K is the strike price, r is the risk-free rate, σ is the standard deviation (annualized), t is the time to expiration (in years), ln is the natural logarithm, and √ is the square root.
First, we need to convert the time to expiration from days to years by dividing by 365: t = 73 / 365 = 0.2
Next, we can calculate d1 and d2:
d1 = [tex][ln(69/66) + (0.046 + 0.49^2/2) * 0.2] / (0.49 * √0.2)[/tex] = 0.6743
d2 = 0.6743 - 0.49 * √0.2 = 0.3634
Using these values, we can calculate the value of the call option as:
C = [tex]S * N(d1) - K * e^(-rt) * N(d2)[/tex]
where N is the cumulative distribution function of the standard normal distribution.
Plugging in the values, we get:
C = [tex]69 * N(0.6743) - 66 * e^(-0.046 * 0.2) * N(0.3634)[/tex]
= 13.61
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Siti Sdn Bh has a Beta (b)=1.8 The Expected Mark eatetum/S 897) =12% And the equity market value is RM100,000 What is the return on deb weing the capital Asset pricing rE = rf+b(krm -rf) = do not use your hand writing
The Capital Asset Pricing Model (CAPM) is a model used to determine the expected return of a security given its risk.
In this model, the expected return of a security is equal to the risk-free rate plus a risk premium, which is determined by the security’s beta. Beta measures the volatility of a security relative to the overall market.
A beta of 1.8 for Siti Sdn Bhd means that its expected return is greater than the market return by 1.8 times. Therefore, the expected return for Siti Sdn Bhd is 12%, which is equal to the risk-free rate of 8% plus 1.8 multiplied by the equity market value of RM100,000. This means that the return on debt for Siti Sdn Bhd is 12%.
The CAPM is a useful tool for investors to determine the expected return of a security given its risk. By understanding the expected return of a security, investors can make more informed decisions when deciding whether to invest in a given security. Therefore, the CAPM can be used to ensure that investors are making prudent and profitable investments.
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during an interview, you should be honest in your criticisms of past employers or supervisors. true false
False. During a job interview, it is generally not advisable to be overly critical of past employers or supervisors.
While it may be tempting to vent your frustrations or air your grievances, doing so can make you appear unprofessional & reflect poorly on your character.
There are several reasons why it is important to avoid being overly critical during a job interview. First and foremost, criticizing past employers or supervisors can make you seem like a difficult or problematic employee.
Even if you had legitimate complaints about your previous job or boss, dwelling on them during an interview can create the impression that you are a negative or confrontational person.
Additionally, criticizing past employers can suggest that you have poor interpersonal skills or struggle to work effectively with others.
It may also give the impression that you are not capable of taking responsibility for your own mistakes and instead look to blame others for your shortcomings.
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Aukey Inc. pays a dividend of $1.50 on its common stock every quarter. The next dividend is expected exactly one quarter from now. If the required rate return on Aukey’s common stock is 12%, compounded quarterly (r4=12%), what is the intrinsic value of one share?
The intrinsic value of one share of Aukey Inc., we can use the dividend discount model formula:
Intrinsic Value = (Dividend / (Required Rate of Return - Dividend Growth Rate))
Since Aukey Inc. pays a dividend of $1.50 every quarter, we can calculate the annual dividend as follows:
Annual Dividend = $1.50 x 4 = $6.00
We can assume that the dividend growth rate is constant at 0%, since the problem does not provide any information on changes in the dividend.
Therefore, the intrinsic value of one share of Aukey Inc. can be calculated as:
Intrinsic Value = ($6.00 / (0.12/4 - 0%)) = ($6.00 / (0.03)) = $200
This means that the intrinsic value of one share of Aukey Inc. is $200, assuming a required rate of return of 12%, compounded quarterly, and a constant dividend growth rate of 0%. If the current market price of one share is lower than $200, it may be considered undervalued and a good investment opportunity.
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which of the following defines a foreign-based entity that uses a functional currency different from the local currency? i. a u.s. subsidiary in britain maintains its accounting records in pounds sterling, with the majority of its transactions denominated in pounds sterling. ii. a u.s. subsidiary in peru conducts virtually all of its business in latin america, and uses the u.s. dollar as its major currency. group of answer choices i only. ii only. both i and ii. neither i nor ii.
The first statement i.e. a U.S. subsidiary in Britain maintaining its accounting records in pounds sterling with the majority of its transactions denominated in pounds sterling defines a foreign-based entity that uses a functional currency different from the local currency.
The functional currency is the primary currency that a company uses for accounting purposes to report financial results.
In this case, the U.S. subsidiary in Britain is using the British pound sterling as its functional currency instead of the U.S. dollar.
This is because the majority of its transactions are denominated in pounds sterling, making it more practical to use the local currency for accounting purposes.
On the other hand, the second statement i.e. a U.S. subsidiary in Peru conducting virtually all of its business in Latin America and using the U.S. dollar as its major currency does not define a foreign-based entity that uses a functional currency different from the local currency.
In this case, the U.S. subsidiary is using the U.S. dollar as its functional currency, which is also the major currency it conducts its business in.
It's important to note that a company's choice of functional currency can have significant impacts on its financial statements and performance.
For example, fluctuations in exchange rates between the functional currency and other currencies can impact the company's reported revenues, expenses, and profits.
Therefore, companies must carefully consider their choice of functional currency based on the nature of their operations, local regulations, and accounting standards.
The correct answer is: i only.
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on march 1, bartholomew company purchased a new stamping machine with a list price of $81,000. the company paid cash for the machine; therefore, it was allowed a 5% discount. other costs associated with the machine were: transportation costs, $2,400; sales tax paid, $5,320; installation costs, $1,550; routine maintenance during the first month of operation, $2,300. the cost recorded for the machine was: multiple choice $84,670. $76,950. $88,520. $86,220.
When purchasing assets, it's essential to consider all costs associated with the purchase. Understanding how to calculate the total cost of an asset is critical to ensure accurate financial statements. In this scenario, Bartholomew Company's total cost for the stamping machine was $88,520.
Bartholomew Company purchased a new stamping machine with a list price of $81,000 on March 1. Since the company paid cash for the machine, they were allowed a 5% discount. Therefore, the machine's cost is calculated as follows:
List Price = $81,000
Discount = 5% of $81,000 = $4,050
Price After Discount = $81,000 - $4,050 = $76,950
The cost of the machine is $76,950.
In addition to the purchase price, other costs associated with the machine were incurred, including transportation costs of $2,400, sales tax paid of $5,320, installation costs of $1,550, and routine maintenance during the first month of operation of $2,300.
To calculate the total cost of the machine, we add the purchase price to the other costs incurred:
Total Cost = Purchase Price + Other Costs
Total Cost = $76,950 + $2,400 + $5,320 + $1,550 + $2,300
Total Cost = $88,520
Therefore, the cost recorded for the machine was $88,520.
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a company trades its old computer, which cost $5,000 and has accumulated depreciation at the transaction date of $3,000, for a new computer that costs $7,000. the trade-in allowance on the old computer is $1,200. what is the gain or loss, if any, on the trade-in of the old computer?
The company has a loss of $800 on the trade-in of the old computer. Therefore, the correct answer is option B. Loss of $2,800.
Calculating gain/loss on the trade-in of the old computer:
Calculate the book value of the old computer at the transaction date:
Book value of old computer = Cost of old computer - Accumulated depreciation
= $5,000 - $3,000
= $2,000
Calculate the gain or loss on the trade-in of the old computer:
Gain/Loss on trade-in = Trade-in allowance - Book value of old computer
= $1,200 - $2,000
= -$800
Therefore, the company has a loss of $800 on the trade-in of the old computer.
Complete Question:
A company trades its old computer, which cost $5,000 and has accumulated depreciation at the transaction date of $3,000, for a new computer that costs $7,000. The trade-in allowance on the old computer is $1,200. What is the gain or loss, if any, on the trade-in of the old computer?
A. Gain of $2,800
B. Loss of $2,800
C. Gain of $800
D. Loss of $800
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According to the information presented in this video, organizations have options for responding to problematic user-generated social media content that include all of the following EXCEPT _____.
A. leaving it B. deleting it C. changing it D. responding to it E. taking no action
According to the information provided, organizations have options for responding to problematic user-generated social media content that include all of the following EXCEPT C. changing it.
A. Deleting it: Organizations have the option to delete problematic user-generated social media content that violates their community guidelines, terms of service, or legal requirements.
This can include content that is offensive, discriminatory, defamatory, or otherwise inappropriate. Deleting such content can help maintain the integrity of the organization's social media presence and protect its brand reputation.
B. Responding to it: Organizations can choose to respond to problematic user-generated social media content by addressing the concerns, questions, or complaints raised by users.
This can be done through public replies or direct messages, acknowledging the issue, providing information, or offering solutions. Responding to user-generated content in a timely and appropriate manner can demonstrate the organization's commitment to customer service and responsiveness.
C. Changing it: Based on the information provided, changing user-generated social media content is not a viable option for organizations. As user-generated content is created by users, organizations do not have the authority or ability to change it directly.
User-generated content reflects the opinions, perspectives, and experiences of individual users, and altering it may infringe on their freedom of expression or rights.
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liza is currently unemployed and stopped her job search six months back. considering liza's employment status, which of the following is true about the unemployment rate? since liza is not a part of the labor force, the unemployment rate is not affected by her employment status. the unemployment rate is over-estimated. the unemployment rate is under-estimated. the unemployment rate always displays the true position of unemployment in the country. the unemployment rate is not adjusted downward for people who are not looking for job.
Liza's stopped her job search six months ago, the correct statement about the unemployment rate is: "Since Liza is not a part of the labor force, the unemployment rate is not affected by her employment status."
The unemployment rate only considers individuals who are actively seeking employment and does not account for those who have stopped looking for jobs. Since Liza is not actively searching for employment, she is not considered to be a part of the labor force and therefore not included in the calculation of the unemployment rate.
The unemployment rate is the percentage of the labor force that is without a job. The labor force consists of all employed and unemployed people. Unemployed people are those who are willing and available to work and who have actively sought work within the past four weeks. The unemployment rate is calculated by dividing the number of unemployed people by the number of people in the labor force and multiplying by 100.
Therefore, the correct answer is: "Since Liza is not a part of the labor force, the unemployment rate is not affected by her employment status."
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How do you think the capital is affected due to COVID-19, what
are the steps organizations need to take to mitigate the
organizational and strategical risks?
COVID-19 is the disease caused by a coronavirus called SARS-CoV-2. WHO first learned of this new virus on 31 December 2019, following a report of a cluster of cases of so-called viral pneumonia in Wuhan, People’s Republic of China.
How the covid-19 was effected?
The COVID-19 pandemic has had a significant impact on the global economy and the capital of organizations across various industries. To mitigate the organizational and strategic risks posed by this crisis, organizations must take several steps.
Firstly, they need to develop a comprehensive risk management plan that identifies the potential impacts of the pandemic on their business operations, workforce, and supply chain. This plan should also outline the measures that the organization can take to reduce or manage these risks, including contingency plans for workforce disruption and supply chain disruptions.
Secondly, organizations need to adopt a proactive approach to manage their financial risks by identifying their key financial indicators and monitoring them closely. This includes reviewing their cash flow, reducing their expenses, and re-evaluating their capital expenditure plans.
Thirdly, organizations need to prioritize their strategic objectives and re-evaluate their business models to adapt to the changing market conditions. This may involve exploring new business opportunities, diversifying their products and services, and investing in technology to support remote work and customer engagement.
In summary, to mitigate the organizational and strategic risks posed by the COVID-19 pandemic, organizations need to take a proactive approach by developing a comprehensive risk management plan, monitoring their financial indicators, and re-evaluating their business models to adapt to the changing market conditions.
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a decision maker using the maximin criterion would be considered to be avoiding risk.T/F
True. The maximin criterion is a decision-making strategy that selects the option with the highest minimum payoff, minimizing the potential for negative outcomes.
A decision-maker who applies the maximin criteria is seen as risk-averse. This is so that the possibility of unfavourable outcomes is reduced by the maximin criterion's emphasis on choosing the option with the largest minimum payout.
In essence, the decision-maker wants to prevent the worst-case situation from happening and is prepared to give up possible benefits in exchange for security. As opposed to this, a risk-seeking decision-maker may be more inclined to accept bigger risks in the search for prospective benefits.
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True. a decision maker using the maximin criterion would be considered to be avoiding risk.
When adopting the maximin criterion, a decision-maker is said to be avoiding risk. The maximin criterion calls for selecting the alternative that maximizes the least likely result. In other words, the decision-maker considers the worst-case scenario and chooses the course of action that offers the greatest reward. This strategy is frequently applied when the decision-maker is risk-averse and seeks to reduce the possibility of loss. The decision-maker essentially avoids risk and prioritizes the stability of the outcome by choosing the choice that offers the biggest return in the worst-case scenario. Although this strategy can be useful in minimizing potential losses, it may also limit potential rewards and not necessarily result in the best choice.
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ccording to a recent study, ________ percent of shoppers use their smartphones while shopping. answer unselected 22 unselected 60 unselected 50 unselected 45 unselected i don't know yet
According to a recent study, 60% of shoppers use their smartphones while shopping.
This behavior is known as "showrooming," where shoppers use their smartphones to check prices, read product reviews, and compare features while physically in a store. This trend has had a significant impact on brick-and-mortar retailers, as it has resulted in reduced foot traffic and sales.
Retailers have responded to this trend by implementing strategies such as price-matching guarantees and providing personalized promotions to incentivize shoppers to make purchases in-store. Some retailers have also embraced showrooming by creating mobile apps and enhancing their online presence to provide customers with a seamless shopping experience across channels.
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The exact percentage of shoppers who use their smartphones while shopping is difficult to determine due to the nature of the study.
However, recent studies have suggested that a significant proportion of shoppers are now using their smartphones while shopping.
For example, a survey conducted by the National Retail Federation in 2019 found that 45% of shoppers reported using their smartphones while in stores. Furthermore, a study by Accenture in 2020 found that 60% of shoppers used their smartphones to compare prices.
Overall, it is clear that the use of smartphones while shopping has increased significantly in recent years. However, the exact percentage of shoppers who use their smartphones while shopping is still uncertain due to the fact that the studies used different methodologies and the results may not be representative of the entire population.
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A company issues bonds with a par value of $1,000 and a maturity of 10 years. The bonds pay interest based upon an annual fixed coupon rate of 6%. Eight years pass since the issuance date and the going rate in the market for similar bonds is 8%. What price should an investor be willing to pay for one bond eight years after the issuance date?
Okay, here are the steps to solve this problem:
1) The par value of the bond is $1,000. This is the face value that will be paid at maturity.
2) The coupon rate is 6% per year. Since the bonds mature in 10 years, the total coupon payment over the life of the bond will be 6% * $1,000 * 10 = $600.
3) 8 years have already passed. So there are 2 years left until maturity. The remaining coupon payments will be $600 * 2/10 = $120.
4) The current market rate for similar bonds is 8%. So the required return for a new bond is 8%. We want to know the price that will generate an 8% yield over the last 2 years.
5) Calculate the future value of $120 received in 2 years at an 8% rate. This comes out to be $120 * (1.08)^2 = $129.63.
6) To generate $129.63 in 2 years with $1,000 par value at maturity, we need a price of $770. This ensures an 8% yield over the last 2 years of the bond.
So in summary, an investor should be willing to pay about $770 for one bond eight years after issuance to get an 8% yield over the remaining two years until maturity. Let me know if you have any other questions!
If ZZZ Co pays $4 per share forever and the required rate of
return for the stock is 7%, what is the expected price per share?
(Please use at least 5 decimal places and do not use $ symbol in
the answ
The expected price per share for ZZZ Co is approximately 57.14286.
How to calculate the expected price per shareTo calculate the expected price per share for ZZZ Co, you can use the dividend discount model (DDM).
The formula for DDM is:
Price per share = (Dividend per share) / (Required rate of return - Dividend growth rate)
In this case, the dividend per share is $4, the required rate of return is 7% (0.07), and since the dividends are constant, the dividend growth rate is 0%.
Plugging the values into the formula:
Price per share = (4) / (0.07 - 0)
Price per share = 4 / 0.07
Price per share ≈ 57.14286
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A firm maintains a separate account for cash disbursements. Total disbursements are $98,000 per month, spread evenly over the month. Administrative and transaction costs of transferring cash to the disbursement account are $16 per transfer. Marketable securities yield 2% per month. Determine the size and number of transfers that will minimize the cost of maintaining the special account.(Round your answer for the size of transfers to the nearest whole dollar and round your answer for number of transfers to 2 decimal places.)
Optimal size of transfers
Average number of transfers per month
The optimal transfer size is $16, and there should be 6,125 transfers per month.
To determine the optimal size and number of transfers that will minimize the cost of maintaining the special account, we need to consider the tradeoff between transaction costs and the opportunity cost of holding cash in the account.
First, let's calculate the opportunity cost of holding cash in the account. At a yield of 2% per month, the opportunity cost of holding $1 in cash for a month is $0.02. Therefore, the opportunity cost of holding $98,000 in cash for a month is $1,960.Next, let's consider the transaction costs of transferring cash to the disbursement account.
Each transfer incurs a cost of $16, regardless of the amount transferred. Therefore, the total transaction cost for N transfers of X dollars each is: Transaction Cost = $16 x NTo minimize the total cost of maintaining the special account, we need to find the transfer size and frequency that minimizes the sum of the opportunity cost and transaction cost.Total Cost = Opportunity Cost + Transaction Cost Total Cost = $1,960 + ($16 x N)We can express the transfer size (X) in terms of the total disbursements (D) and the number of transfers
(N):X = D / NX = $98,000 / NSubstituting X into the Total Cost equation, we get:Total Cost = $1,960 + ($16 x N)Total Cost = $1,960 + ($16 x (D / X))Total Cost = $1,960 + ($16 x (D / ($98,000 / N)))Total Cost = $1,960 + ($16 x (D x N / $98,000))To minimize the Total Cost, we need to take the derivative of this equation with respect to N, set it equal to zero, and solve for N:d(Total Cost) / d(N) = $16 x D / $98,000 - $16 x D x N / $98,000^2 = 0N = $98,000 / $16 = 6,125Therefore, the optimal number of transfers per month is 6,125. We can calculate the optimal transfer size (X) using the equation X = $98,000 / N:X = $98,000 / 6,125 = $16
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How do you think the capital is affected due to COVID-19, what
are the steps organizations need to take to mitigate the
organizational and strategical risks?
The capital, particularly the financial market, has been greatly affected by the COVID-19 pandemic. The global economy has experienced a significant downturn, with businesses shutting down, unemployment rates rising, and consumer spending decreasing.
This has led to decreased revenue and profits for many companies, particularly those in the travel, hospitality, and retail industries. In terms of organizational and strategic risks, companies have had to quickly adapt to remote work and changing customer needs, which can be a challenge for some organizations.
Additionally, supply chain disruptions and decreased consumer demand have led to inventory issues and cash flow problems for some companies. In order to mitigate these risks, companies have had to implement new strategies, such as cost-cutting measures and diversifying their revenue streams.
However, there is still uncertainty around how long the pandemic will last and what the long-term effects will be, which makes it difficult for organizations to plan for the future.
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tyrell has a net income, before taxes, of $95,000. the treasurer of the company estimates 45% of net income will have to be paid for federal and state taxes. the tax for both federal and state is:
In this case, Tyrell will have a remaining net income of $52,250
How to calculate the taxTyrell has a net income, before taxes, of $95,000. The treasurer of the company estimates that 45% of the net income will have to be paid for federal and state taxes.
To calculate the combined tax for both federal and state, we need to find 45% of the net income.
To do this, we can use the following formula:
Tax = Net Income × Tax Percentage
In Tyrell's case:
Tax = $95,000 × 0.45
Tax = $42,750
So, the combined tax for both federal and state is $42,750.
This means that after paying the estimated taxes, Tyrell will have a remaining net income of $52,250 ($95,000 - $42,750).
It's important to remember that this is an estimate, and actual tax rates may vary depending on various factors.
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Planet Enterprises is purchasing a $10.4 million machine. It will cost $45 000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.2 million per year along with incremental costs of $1.1 million per year. Planet's marginal tax rate is 30%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine? The free cash flow for year 0 will be $ (Round to the nearest dollar.) The free cash flow for years 1–5 will be $ (Round to the nearest dollar.)
The incremental free cash flows associated with the new machine for year 0 are $(-10,445,000) and for years 1-5 are $2,170,000 per year.
To calculate these cash flows, follow these steps:
1. Determine the initial investment: $10,400,000 (machine cost) + $45,000 (transport and installation) = $10,445,000. This is the cash outflow in year 0.
2. Calculate the annual depreciation: ($10,400,000 - $0 salvage value) / 5 years = $2,080,000 per year.
3. Calculate the annual incremental operating income: $4,200,000 (incremental revenue) - $1,100,000 (incremental cost) = $3,100,000.
4. Calculate the annual tax on operating income: $3,100,000 * 30% (tax rate) = $930,000.
5. Calculate the after-tax operating income: $3,100,000 - $930,000 = $2,170,000.
6. Add back the annual depreciation: $2,170,000 + $2,080,000 = $4,250,000.
7. Subtract the depreciation to get the incremental free cash flow: $4,250,000 - $2,080,000 = $2,170,000 per year for years 1-5.
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How a tiny peanut butter company grew to $500k per month in
sales Sunday,
1. Something you learned about starting a business idea 2. Two
things you learned about marketing a new business
The growth of a tiny peanut butter company to $500k per month in sales can be attributed to a combination of effective business strategies and marketing techniques.
1. Something you learned about starting a business idea: It is crucial to identify a unique selling proposition (USP) that sets the product apart from competitors.
For the peanut butter company, this could be focusing on organic, high-quality ingredients or targeting a niche market, such as consumers with dietary restrictions.
2. Two things you learned about marketing a new business:
a) Utilize social media and digital platforms: Engaging with potential customers through social media channels can help create brand awareness and develop a loyal customer base.
Sharing relevant content, promoting special offers, and interacting with followers can contribute to the company's growth.
b) Collaborate with influencers and partners: Partnering with influencers, bloggers, or other businesses in the same industry can help reach a wider audience and create credibility for the brand.
Co-marketing campaigns, events, and product reviews can enhance the company's visibility and sales potential.
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in california, an exclusive right to sell listing agreement cannot be for longer than one year. true or false