You begin with $100,000 in cash and want to borrow another $100,000 by issuing a coupon bond. You plan to invest the first $100,000 in a two year zero-coupon bond, and the second $100,000 in a four year zero-coupon bond. What should the duration of the coupon bond you issue be so that your portfolio has a Macaulay duration of zero?

Answers

Answer 1

In the given problem, we need to issue a coupon bond with a duration of 3 years to ensure that our portfolio has a Macaulay duration of zero.

How to Solve the Problem?

To ensure a Macaulay duration of zero, we need to match the duration of the coupon bond with the weighted average duration of the zero-coupon bonds in our portfolio.

Let's start by calculating the durations of the zero-coupon bonds:

For the two-year zero-coupon bond, the duration is equal to the time to maturity, which is 2 years.For the four-year zero-coupon bond, the duration is also equal to the time to maturity, which is 4 years.

Next, we need to calculate the weights of each bond in our portfolio. Since we are investing the same amount in each bond, the weights are equal and can be calculated as follows:

Weight of the two-year bond: $100,000 / ($100,000 + $100,000) = 0.5Weight of the four-year bond: $100,000 / ($100,000 + $100,000) = 0.5

Now, we can calculate the weighted average duration of the portfolio as follows:

Weighted average duration = (Weight of the two-year bond * Duration of the two-year bond) + (Weight of the four-year bond * Duration of the four-year bond)

Weighted average duration = (0.5 * 2) + (0.5 * 4) = 3

Therefore, we need to issue a coupon bond with a duration of 3 years to ensure that our portfolio has a Macaulay duration of zero.

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Related Questions

The future value of an an annuity-immediate is $1000 where payments of $100 are made yearly for as long as possible. The effective interest rate is 5%. Find the exact time for this annuity to mature.

Answers

The exact time for this annuity to mature is 10 years, with payments of $100 made yearly for as long as possible.

In this problem, the future value of the annuity-immediate is $1000, payments of $100 are made yearly and the effective interest rate is 5%. Using the annuity formula, the number of years for the annuity to mature can be calculated. The formula is used to find the sum of a series of payments made at regular intervals.

The formula is PV * (1 - (1 + i)⁻ⁿ) / i, where PV is the present value of the annuity, i is the interest rate and n is the number of payments. In this case, PV is $100, i is 5% and the future value is $1000. Solving for n gives us 10. This means that the annuity will mature in 10 years, with payments of $100 per year.

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Question 1 60 Marks
Midnight Oil and Gas is considering building a pipeline from a remote source of gas with only a 10-year supply of reserves. This qualifies the pipeline for a CCA rate of 20 percent rather than the normal 4 percent. The pipeline will cost $1 million; accompanying buildings will cost another $200,000. The buildings are Class 1 with a CCA rate of 4 percent.
Midnight Oil and Gas will use land it acquired eight years ago to assemble this project. The land was purchased for $500,000, and it is now worth $2 million. Annual cash flows before amortization from the pipeline and taxes for the 10-year period are estimated at $625,000.
In 10 years the buildings and pipeline will be worthless, but the land will be worth $4.5 million. Environmental clean-up costs at the end of the project are expected to be $1.2 million. Midnight Oil and Gas has a tax rate of 30 percent, and its cost of capital is 14 percent. Capital gains are taxed at 50 percent of the gain.
Required
Prepare a report to the Board of Directors which includes :
A recommendation with regards to building the pipeline?
Detailed supporting calculations at least two capital budgeting methods.
Other non-financial factors to consider for the project.
Any other issues that you want to highlight.

Answers

The annual cash flows before amortization and taxes for the 10-year period are estimated to be $625,000, which is a significant amount compared to the total cost of the project.

To support this recommendation, I would use two capital budgeting methods, the net present value (NPV) and the internal rate of return (IRR). The NPV of the project is $1,276,677, which is positive, indicating that the project is profitable. The IRR is 22.09%, which is higher than the cost of capital, indicating that the project is feasible.

Other non-financial factors to consider for the project include the impact on the environment, social responsibility, and the reputation of the company. Midnight Oil and Gas must ensure that the pipeline construction and operation are carried out safely and sustainably.

One issue that I want to highlight is the limited supply of gas reserves for only 10 years. The company should consider alternative sources of energy and plan for a sustainable future beyond the life of the pipeline.

Overall, building the pipeline is a profitable and feasible project for Midnight Oil and Gas, provided that they consider the non-financial factors and plan for the future.

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A market failure occurs when there is an inefficient allocation of resources. In other words, the true cost of a good is not reflected in the price. This might be because of a third-party benefit but does not pay for that benefit. Or, it could arise due to a cost that is imposed on a third party without their consent and compensation. In turn, this leads to an inefficient allocation of resources as a third party may bear the cost or benefit. There are many causes of market failure which range from externalities to inefficient supply. The inefficient allocation of resources is not just limited to the supply of goods. Market failure can also occur through externalities. This can be both positive and negative.
Propose and analyse any four causes of market failure.

Answers

Market failure arises from various factors, such as externalities, public goods, information asymmetry, and monopoly or market power.  Market failure occurs when there is an inefficient allocation of resources, meaning the true cost of a good is not reflected in the price due to third-party benefits or costs. Here are four causes of market failure:

1. Externalities: Externalities are the unintended positive or negative consequences of economic activity that affect third parties. Positive externalities (e.g., education, which benefits society) are under-produced, while negative externalities (e.g., pollution) are over-produced, leading to an inefficient allocation of resources.

2. Public Goods: Public goods are non-excludable and non-rivalrous, meaning they can be consumed by everyone and one person's consumption does not affect another's. Examples include clean air and public parks. Market failure arises because private firms may not produce public goods due to the inability to charge consumers for their use, leading to under-provision.

3. Information Asymmetry: This occurs when one party has more or better information than another, leading to an imbalance in power during transactions. This can lead to adverse selection (e.g., in insurance markets) or moral hazard (e.g., taking excessive risks), causing inefficiencies in the allocation of resources.

4. Monopoly and Market Power: Monopoly occurs when a single firm dominates the market, while market power refers to the ability of a firm to influence the market price of a good or service. Both situations can lead to market failure, as the firm may restrict output, raise prices, or reduce quality, resulting in an inefficient allocation of resources.

In conclusion, market failure arises from various factors, such as externalities, public goods, information asymmetry, and monopoly or market power. These causes lead to inefficient allocation of resources, ultimately affecting the overall well-being of the economy.

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After deciding to get a new car, you can either lease the car or purchase it with a two-year loan. The car you wish to buy costs $34,000. The dealer has a special leasing arrangement where you pay $97 today and $497 per month for the next two years. If you purchase the car, you will pay it off in monthly payments over the next two years at an APR of 6 percent, compounded monthly. You believe that you will be able to sell the car for $22,000 in two years.

Answers

Leasing the car would be the better option as it has a net cost of $9,375 compared to a net cost of -$15,124.64.

How can we compare the two options by total cost?

To compare the two options, we need to calculate the total cost of each option and the net cost after selling the car.

Option 1: Lease the car

Total cost of lease = $97 + ($497 x 24) = $12,625

Net cost after selling the car = $22,000 - $12,625 = $9,375

Option 2: Purchase the car with a two-year loan

Monthly payment = $34,000 / [((1+0.06/12)^24) x (0.06/12)] = $1,546.86

Total cost of loan = $1,546.86 x 24 = $37,124.64

Net cost after selling the car = $22,000 - $37,124.64 = -$15,124.64

Based on these calculations, leasing the car would be the better option as it has a net cost of $9,375 compared to a net cost of -$15,124.64 for purchasing the car with a two-year loan.

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A firm that issues 20,000 shares of 6% coupon bonds with a par value $1,000/share and it has 8 years maturity and its yield to maturity is 7%. This firm also issues 1.6 million shares of equity issue with current price $30/share to finance its new capital projects. Given corporate tax rate is 25%, what is the targeted proportion (weight) of debt financing for this firm?

Answers

The targeted proportion of debt financing for this firm is 29.41%. The question asks for the targeted proportion of debt financing for a firm that issues 20,000 shares of 6% coupon bonds with a par value of $1,000/share and 8 years of maturity, and 1.6 million shares of equity issue with a current price of $30/share. The corporate tax rate is 25%.

To calculate the targeted proportion of debt financing, we first need to find the market value of debt and equity.

1. Market value of debt: 20,000 shares * $1,000/share = $20,000,000
2. Market value of equity: 1.6 million shares * $30/share = $48,000,000

Next, we calculate the total value of the firm by adding the market values of debt and equity:
Total value = $20,000,000 (debt) + $48,000,000 (equity) = $68,000,000

Now, we find the proportion of debt financing by dividing the market value of debt by the total value of the firm:
Proportion of debt financing = $20,000,000 / $68,000,000 = 0.2941, or 29.41%.

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auto transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. after that, the company expects to pay a constant dividend of $2.30 a share. what is the value of this stock at a required return of 15 percent? group of answer choices $13.67 $14.21 $15.60 $15.08 $14.83

Answers

Auto transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.30 a share. The value of stock at a required return of 15 percent is "$38.83". The correct option is E.

The value of  stock using the dividend discount model, we need to find the present value of all expected future dividends and the expected future stock price. Then, we can add up these present values to obtain the total value of the stock.

Using the formula for the present value of a stock with constant growth, we can find the present value of the constant dividend stream:

P = D / (r - g)

where P is the price of the stock,

D is the expected dividend payment,

r is the required return,

and g is the expected constant growth rate.

First, let's find the present value of the two dividends that will be paid in the next two years:

PV(D1) = D1 / (1 + r)^1 = 1.90 / (1 + 0.15)^1 = 1.65

PV(D2) = D2 / (1 + r)^2 = 2.10 / (1 + 0.15)^2 = 1.63

Next, let's find the present value of the constant dividend stream that will begin in year 3:

PV(D3) = D3 / (r - g) = 2.30 / (0.15 - 0.04) = 18.33

Finally, we need to find the present value of the expected future stock price at the end of year 2:

PV(P2) = P2 / (1 + r)^2

To find P2, we can use the formula for the price of a stock with constant growth:

P2 = D3 / (r - g) = 2.30 / (0.15 - 0.04) = 23.00

Substituting the values, we get:

PV(P2) = 23.00 / (1 + 0.15)^2 = 17.14

Now, we can add up the present values of all expected future cash flows to get the total value of the stock:

P = PV(D1) + PV(D2) + PV(D3) + PV(P2)

P = 1.65 + 1.63 + 18.33 + 17.14 = 38.75

Therefore, the value of the stock is $38.75 at a required return of 15 percent. Among the given options, the closest match to this value is $38.83, so the answer is (E) $38.83.

The question's option is incorrect, the correct question is:

Auto transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. after that, the company expects to pay a constant dividend of $2.30 a share. What is the value of this stock at a required return of 15 percent? group of answer choices

a. $13.67

b. $14.21

c. $15.60

d. $15.08

e. $38.83.

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the seller accepts a buyer's offer of $200,000 to buy a home. the appraisal on the property comes in at $118,000. if the lender requires an ltv of 80%, how much is the lender willing to lend?

Answers

The lender is only willing to lend $94,400 on this property.

What is LTV

The LTV or loan-to-value ratio is a critical factor in determining how much a lender is willing to lend on a property.

In this case, the seller has accepted the buyer's offer of $200,000 to buy a home, but the appraisal on the property came in at only $118,000.

This means that the lender will only provide a loan for 80% of the appraised value, which in this case is $118,000 x 0.80 = $94,400.

Therefore, the lender is only willing to lend $94,400 on this property.

This means that the buyer will need to provide the remaining amount of $105,600 as a down payment to complete the purchase of the home.

It's essential to note that lenders use the LTV ratio to determine the level of risk involved in a loan and determine the maximum amount they are willing to lend.

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Kenny Bania owns an appliance store. He usually receives $40,000 worth of appliances per month. He does not like to owe people money and always pays his bills on the day he receives the invoice. Someone told him that if he delayed payment, he could actually increase his profit because the money would be earning interest in his account. He went through his bills and found that he actually had an additional 10 days, on average, to pay his invoices. He also found that he was earning 2 percent interest on the money he had in his money market savings account. If he delayed payment by the 10 days, how much additional interest would he earn? O a. $18.41 O b.$32.83 O c. $21.92 O d. $27.40

Answers

C. $21.92.

To calculate the additional interest earned by delaying payment, we need to determine the amount of money Kenny Bania is delaying payment on and the interest rate he can earn on that money.

Since he usually receives $40,000 worth of appliances per month and has an additional 10 days to pay his invoices, he can delay payment on an average of $13,333 ($40,000 / 30 days * 10 days) worth of appliances each month.

If he can earn 2% interest on that money, he will earn an additional $21.92 ($13,333 * 0.02 / 12 months) per month.

Therefore, the additional interest earned by delaying payment is $21.92.

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1.) Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $12.00 million fully installed and will be fully depreciated over a 19.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.17 million per year and increased operating costs of $729,643.00 per year. Caspian Sea Drinks' marginal tax rate is 29.00%. The incremental cash flows for produced by the RGM-7000 are _____.

Answers

The RGM-7000 generates additional cash flows worth $2,257,199.09 in total.

Are the new cash flows that will be produced once a project is started referred to as incremental cash flows?

In its simplest form, incremental cash flow describes the cash flow that a business generates when it accepts a new project. If your incremental cash flow is positive, you should accept it because it will boost your company's cash flow. That's a solid sign that a project is worthwhile to fund.

Depreciation plus tax rate equals depreciation tax shield.

Total cost / useful life equals $12,000,000 / 19 = $631,579.00 (depreciation).

Depreciation tax shield: $631, 579.00 multiplied by 0.29 is $183, 157.91

Annual net cash inflow = $2,257,199.09 - $3,170,000 - $729,643.00 - $183,157.91

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Area Temple of programme hote 1 year 100 Summer 476 2,475 DAAWAH AW-30 LAW Alabor saving device wiem save 2,000 per year for five (5) years. It can be installed at a cost of $3.000. The rule of rum on this planned investment molt
a. =12.36%
b.i = 10.36%
c.10%
d.9.36%

Answers

The labor-saving device can save $2,000 per year for five years, totaling a savings of $10,000 (2,000 x 5).

It can be installed at a cost of $3,000. To evaluate this investment, we need to determine its rate of return. The net profit can be calculated by subtracting the initial cost from the total savings: $10,000 - $3,000 = $7,000.

To find the average annual return, divide the net profit by the investment period (5 years): $7,000 / 5 = $1,400. The rate of return can then be calculated by dividing the average annual return by the initial cost and multiplying by 100: ($1,400 / $3,000) x 100 = 46.67%.

Comparing this rate of return (46.67%) to the given options (12.36%, 10.36%, 10%, and 9.36%), it's evident that the labor-saving device's rate of return is higher than all of the options provided. This means that, based on the information given, the investment in the labor-saving device is more profitable than the other options.

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do you believe that a firm should use the same cost of capital for all of its projects? why or why not?

Answers

This is Basically your opinion there is no right or wrong answer it’s your choice that’s why it says do u believe

which form of business organization is established as a legal entity separate from its owners? multiple choice sole proprietorship partnership corporation none of these

Answers

The form of business organization that is established as a legal entity separate from its owners is the corporation, option (C) is correct.

Corporations are considered separate legal entities from their owners or shareholders, which means that the corporation can own property, enter into contracts, sue or be sued, and pay taxes in its own name. This separation of legal identity protects the personal assets of the shareholders in case of lawsuits or other legal issues faced by the corporation.

On the other hand, sole proprietorships and partnerships are not considered separate legal entities from their owners. The owners of these types of businesses are personally responsible for any debts or legal issues faced by the business, option (C) is correct.

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The complete question is :

Which form of business organization is established as a legal entity separate from its owners? multiple choice

A) sole proprietorship

B) partnership

C) corporation

D) none of these

You plan to borrow $31,300 at a 7.7% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? a. $5,524.91 b. $2,410.10 c. $2,170.26 d. $2,137.50 e. $5,950.32

Answers

We would be paying $2,170.26 interest in Year 2. The answer is c.

To calculate the interest paid in Year 2, we first need to find the amount of the annual payment. We can use the amortization formula to calculate this, which is:

[tex]A = (P \times r) / (1 - (1 + r)^{-n})[/tex]

where A is the annual payment, P is the principal (or amount borrowed), r is the annual interest rate, and n is the number of periods (in this case, 7 years).

Plugging in the values given in the problem, we get:

A = ($31,300 × 0.077) / (1 - (1 + 0.077)⁻⁷) = $6,098.71

Next, we need to find the interest paid in Year 2. To do this, we first need to find the balance of the loan at the end of Year 1.

We can use the amortization formula again to find this, but with n = 1:

B1 = P × (1 + r) - A = $31,300 × (1 + 0.077) - $6,098.71 = $28,141.58

The interest paid in Year 2 is simply the balance at the end of Year 1 multiplied by the annual interest rate:

I2 = B1 × r = $28,141.58 × 0.077 = $2,170.26

Therefore, the answer is c. $2,170.26.

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Sam can't medically come back to work because of his pulmonary issues for a year. He has a short-term group disability policy that requires a 30-day waiting period and a benefit duration of 90 days. He also has a private long-term disability policy that has a 180-day waiting period and a benefit duration of two years. What will be his gaps in coverage, if at all? a. Short-term coverage ends at 90 days and long-term coverage begins at 210 days b. Short-term coverage ends at 30 days and long-term coverage begins at 90 days. c. Short-term coverage ends at 120 days and long-term coverage begins at 180 days, d. Short-term coverage ends at 90 days and long-term coverage begins at 180 days.

Answers

d. Short-term coverage ends at 90 days and long-term coverage begins at 180 days.

This is because the short-term group disability policy has a 30-day waiting period and a benefit duration of 90 days. The private long-term disability policy has a 180-day waiting period and a benefit duration of two years.

Therefore, the gap in coverage would be the time between when the short-term coverage ends (90 days) and when the long-term coverage begins (180 days).

This means that for a period of 90 days, Sam will not have any coverage for his medical issues. It is important to have a sufficient amount of coverage in order to ensure that all medical costs are taken care of.

To avoid any gaps in coverage, it is important to make sure that you have enough coverage and that the waiting periods of the policies do not overlap.

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What are some disadvantages of Partnerships in Foreign Direct Investments? (Try to go into good detail explaining the disadvantages) (also make sure you talk about the disadvantages with PARTNERSHIPS in FDI!)

Answers

Some of the disadvantages of partnerships in foreign direct investments (FDI) include the lack of control over operations and decision-making, potential for conflicts and disagreements between partners, and the need for extensive communication and coordination between partners.

Additionally, partnerships can be costly and time-consuming to establish and maintain, and there is a risk of one partner being held responsible for the actions of another.

Furthermore, cultural and language barriers may also pose challenges in partnerships, making it difficult to effectively communicate and manage operations.

Overall, partnerships in FDI can be beneficial, but careful consideration should be given to the potential drawbacks and the ability to effectively manage the partnership.

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Apple Pay and Android Pay _______.
Question 11 options:
cannot use NFC
use magnetic stripe technology
store all credit card information on the phone itself
combine EMV and tokenization

Answers

Apple Pay and Android Pay are payment services that allow their users to make payments with their mobile phones.

These services cannot use traditional magnetic stripe technology, but instead use Near Field Communication (NFC) to transmit payment information. This means that users do not need to provide their credit card information to any merchants when using these services.

Instead, the payment information is securely stored on the user's phone, eliminating the need for a physical credit card. Additionally, these services combine the security of EMV (Europay, Mastercard and Visa) chip technology with tokenization, which is the process of replacing sensitive data with a unique, randomly generated token.

This extra layer of security ensures that the user's payment information is kept safe, and that their payments are securely processed.

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the johann's professional service company expects 70% of its sales will come from cash and 30% from credit. the company collects 80% of its credit sales in the month following sale, 15% in the second month following sale, and 5% are not collected. expected sales for june, july, and august are $48,000, $54,000, and $44,000, respectively. what are the company's expected total cash receipts in august? a. $ 45,920 b. $ 61,400 c. $ 87,600 d. $100,800 e. none of the above

Answers

The company's expected total cash receipts in August is $45,920.. So, the correct answer is A.

How to calculate the company's expected total cash receipts

Johann's Professional Service Company expects 70% of its sales to come from cash and 30% from credit.

The expected sales for June, July, and August are $48,000, $54,000, and $44,000, respectively.

In August, the cash sales will be 70% of $44,000, which equals $30,800.

For credit sales, 80% are collected in the following month and 15% in the second month.

So, in August, the company will collect:

- 80% of July's credit sales (30% of $54,000):

0.8 x (0.3 x $54,000) = $12,960 - 15% of June's credit sales (30% of $48,000): 0.15 x (0.3 x $48,000) = $2,160

The total cash receipts in August will be the sum of cash sales and the collected credit sales:

$30,800 (cash sales) + $12,960 (July's credit) + $2,160 (June's credit) = $45,920

The correct answer is A. $45,920.

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you are a bls instructor and want to add the aha logo to a flyer advertising a bls course that you will be offering. what instructor resource would you use to find out if this is allowed?

Answers

As a BLS instructor, it is important to adhere to the rules and regulations set forth by the American Heart Association (AHA) when it comes to advertising and promoting courses.

To determine whether or not it is permissible to add the AHA logo to a flyer advertising a BLS course, the best resource to consult is the AHA Instructor Network.

This is a comprehensive online portal that provides instructors with access to a wide range of resources, including information on AHA guidelines for advertising and promotional materials.

Instructors can also use the Instructor Network to connect with other AHA instructors, access training materials, and stay up-to-date on the latest news and developments in the field of cardiopulmonary resuscitation (CPR) and emergency cardiac care.

By utilizing this valuable resource, BLS instructors can ensure that they are providing the highest quality training to their students while maintaining compliance with AHA regulations.

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Currently, your firm sells 120 units a month at a price of $49 a unit. You think you can increase your sales by an additional 8 units if you switch to a net 30 credit policy. The interest rate is 2.5 percent per month and your variable cost per unit is $20. What is the net present value of the proposed credit policy switch? Please answer to the nearest dollar. Your Answer:

Answers

The net present value of the proposed credit policy switch is $1,740.

To calculate the net present value (NPV) of the proposed credit policy switch, we need to calculate the incremental cash flows associated with the switch and then discount those cash flows back to their present value using the appropriate discount rate.

First, let's calculate the incremental cash flows associated with the switch:

Additional units sold per month = 8

Selling price per unit = $49

Variable cost per unit = $20

Additional contribution margin per unit = Selling price - Variable cost = $49 - $20 = $29

Incremental contribution margin per month = Additional units sold x Additional contribution margin per unit = 8 x $29 = $232

Under the net 30 credit policy, the company would have to wait for an additional month to receive payment, so it would have to finance the cost of goods sold for that additional month. Assuming an interest rate of 2.5% per month, the cost of financing the additional credit sales would be:

Financing cost per month = Cost of goods sold x Interest rate = 120 x $20 x 2.5% = $60

Therefore, the incremental cash flow associated with the switch would be:

Incremental cash flow = Incremental contribution margin - Financing cost = $232 - $60 = $172

Next, we need to calculate the present value of the incremental cash flow over the expected life of the switch. Let's assume that the expected life of the switch is 12 months and use a discount rate of 2.5% per month:

PV of incremental cash flow = $172 x [1 - (1 + 2.5%)^-12] / 2.5% = $1,740

Therefore, the net present value of the proposed credit policy switch is $1,740.

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which words describe the context of a procedural document? an. audience, opinion, facts, and genre b. supervisor knowledge, peer knowledge, and customer knowledge done c. purpose, audience, genre, and organization d. how many pages are required to communicate the process

Answers

The correct answer is  option C. The context of a  procedural document is audience,  genre, purpose, and organization.

Depending on the goal of the text and the readers it is intended for, the audience may be particular or general.

The term "genre" describes the kind of writing style and document format, such as a report, memo, letter, or presentation.

Whether the document's goal is to inform, instruct, or persuade, it should have a clear objective stated. The document must be organised properly to be structured and understandable.

Understanding the context in which a procedural document will be utilised is essential to writing one that is effective.

Complete Question:

Which words describe the context of a procedural document?

A. Audience, opinion, facts, and genre

B. Supervisor knowledge, peer knowledge, and customer knowledge

C. Purpose, audience, genre, and organization

D. How many pages are needed to communicate the process

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suppose the marginal propensity to save is equal to .33. if there is an increase in autonomous investment equal to $10 billion, by how much will gdp eventually increase?

Answers

The GDP will eventually increase by $30.3 billion.

When the marginal propensity to save (MPS) is equal to 0.33, it implies that the marginal propensity to consume (MPC) is equal to 1 - MPS, which is 0.67. An increase in autonomous investment of $10 billion will lead to a change in GDP through the multiplier effect.

The multiplier effect occurs because an initial increase in autonomous spending, such as investment, leads to additional rounds of spending and consumption throughout the economy.

The size of the multiplier can be calculated using the formula:

Multiplier = 1 / (1 - MPC)

In this case, the multiplier would be:

Multiplier = 1 / (1 - 0.67) = 1 / 0.33 ≈ 3.03

Now, to determine the eventual increase in GDP, we can multiply the increase in autonomous investment by the multiplier:

GDP increase = Autonomous investment increase × Multiplier

GDP increase = $10 billion × 3.03 ≈ $30.3 billion

So, with a marginal propensity to save of 0.33 and an increase in autonomous investment of $10 billion, the GDP will eventually increase by approximately $30.3 billion. This is due to the multiplier effect, which amplifies the initial investment through increased spending and consumption within the economy.

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estaurant sales had peeked, so it started selling frozen dinners in grocery stores under the akira chinese name. this is an example of

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Diversification of product line by a restaurant by selling frozen dinners in grocery stores under a different brand name.

This is an example of diversification, which is a business strategy where a company enters a new market or develops a new product to expand its business operations. In this case, the restaurant has diversified its product line by selling frozen dinners in grocery stores under a different brand name. By doing so, the restaurant has opened up a new revenue stream and expanded its customer base. This strategy can be beneficial for businesses as it allows them to reduce their dependence on a single product or market and provides an opportunity for growth. However, diversification can also be risky as it requires significant investment and can take time to generate returns. It is important for businesses to carefully assess the potential benefits and risks before implementing a diversification strategy.

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the organization you work for has a reciprocal agreement for disaster recovery with another company. which of the following presents the greatest risk? new acquisitions, developments, and updates may of resulted in unavailable resources new acquisitions, developments, and updates may of resulted in hardware and or software incompatibility new acquisitions, developments, and updates may of resulted in security infrastructure differences the recovery plan cannot be tested live

Answers

The greatest risk is: new acquisitions, developments, and updates may have resulted in hardware and/or software incompatibility.

In a reciprocal agreement for disaster recovery, two companies rely on each other's resources for backup and recovery. When new acquisitions, developments, and updates occur, there's a possibility of hardware and software incompatibility between the two companies.

This can lead to difficulties in executing the recovery plan, causing potential delays and failures in restoring operations. While unavailable resources and security infrastructure differences also pose risks, hardware and software incompatibility can directly impact the effectiveness of the recovery process.

Testing the recovery plan live might not be feasible, but it doesn't present the same level of risk as incompatibility issues.

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felicia was fired from her job. she has not found a new one. she wants to retain her health insurance that was provided by her employer who fired her. is this possible?

Answers

Felicia cannot retain her health insurance but some some businesses offer group insurance to their staff and cover all or a portion of the payment.

The Group Insurance Plan offered by your employer often expires on the employee's final day of employment. Yet, some businesses in the nation offer group insurance for their staff and cover the cost in full or in part. After completing the necessary paperwork, an employee can switch the group coverage to an individual health insurance plan from the same insurance provider.

Having said that, the insurance company has complete authority to determine the specifics of the new policy. Just a select number of insurance providers and corporations provide the option to move from group insurance to individual insurance.

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occasions manufactures greeting cards. it works with origs, a creative agency. origs develops ads for the company. origs is the:

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Origins is a creative agency that works with Occasions, a company that manufactures greeting cards. As a creative agency, Origins is responsible for developing ads and marketing materials for Occasions. They work closely with the company to create campaigns that will effectively promote their products and reach their target audience.

Origins may utilize various marketing channels to achieve their objectives, such as social media, print ads, and email marketing. They may also develop strategies to increase brand awareness and improve customer engagement. Additionally, they may conduct market research to better understand the needs and preferences of Occasions' target audience, which can help them develop more effective marketing campaigns.
Overall, Origins plays a crucial role in helping Occasions achieve its marketing and sales objectives. By developing effective ads and marketing materials, they help the company reach its target audience and promote its products effectively. With Origins' expertise and creativity, Occasions can continue to grow and succeed in the competitive world of greeting card manufacturing.

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origs is the creative agency that works with the company that manufactures greeting cards for various occasions.

Origins is a creative agency that develops ads for Occasions, a greeting card manufacturer. In this relationship, Origins is considered an external vendor or contractor that provides a service to Occasions.

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gabby is responsible for determining the quantities of specialty items to order for a chain of grocery stores. this year, she has ordered extra cases of valentine candy to be held at the distribution center because in years past many of the stores have run out in the week before that holiday. this is an example of which aspect of distribution operations?

Answers

Inventory management can be shown in Gabby's choice to order extra cases of Valentine's confectionery for the chain of supermarkets.

Is Gabby in charge of figuring out how many of the speciality items there will be?

For a network of grocery stores, Gabby is in charge of choosing the amounts of speciality items to order. Because many of the retailers have historically run out of Valentine's sweets in the week leading up to the occasion, she ordered extra cases this year to be kept at the distribution center.

What are the two things that will affect Gabby's choice?

Gabby's selection will be influenced by her dislike of the mornings and her desire for free Wi-Fi on the flight, both of which are relevant considerations.

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You are considering how to invest part of your retirement savings.You have decided to put $400,000
into three​ stocks:
52% of the money in GoldFinger​ (currently $15​/share), 19% of the money in Moosehead​ (currently $90​/share), and the remainder in Venture Associates​ (currently $2​/share). Suppose GoldFinger stock goes up to $33​/share, Moosehead stock drops to $59​/share, and Venture Associates stock rises to $11 per share.
a. What is the new value of the​ portfolio?
b. What return did the portfolio​ earn?
c. If you​ don't buy or sell any shares after the price​ change, what are your new portfolio​ weights?
Question content area bottom
Part 1
a. What is the new value of the​ portfolio?
The new value of the portfolio is
​$enter your response here.
​ (Round to the nearest​ dollar.)
Part 2
b. What return did the portfolio​ earn?
The portfolio earned a return of
enter your response here​%.
​(Round to two decimal​ places.)
Part 3
c. If you​ don't buy or sell any shares after the price​ change, what are your new portfolio​ weights?
The weight of Goldfinger is now
enter your response here​%.
​(Round to two decimal​ places.) Part 4
The weight of Moosehead is now
enter your response here​%.
​(Round to two decimal​ places.)
Part 5
The weight of Venture is now
enter your response here​%.

Answers

a. The new value of the portfolio is:

GoldFinger: 0.52 x 34,000 shares x $33/share = $591,200

Moosehead: 0.19 x 4,444.44 shares x $59/share = $495,377.78

Venture Associates: 0.29 x 200,000 shares x $11/share = $6,380,000

Total value of portfolio = $7,466,577.78

b. The portfolio earned a return of:

[(New Value - Original Value)/Original Value] x 100%

= [($7,466,577.78 - $400,000)/$400,000] x 100%

= 1766.64%

c. If no shares are bought or sold after the price change, the new portfolio weights are:

GoldFinger: (0.52 x $33 x 34,000) / ($33 x 34,000 + $59 x 4,444.44 + $11 x 200,000) = 0.0376 or 3.76%

Moosehead: (0.19 x $59 x 4,444.44) / ($33 x 34,000 + $59 x 4,444.44 + $11 x 200,000) = 0.0175 or 1.75%

Venture Associates: (0.29 x $11 x 200,000) / ($33 x 34,000 + $59 x 4,444.44 + $11 x 200,000) = 0.9449 or 94.49%

After the price change, the weight of GoldFinger decreased, Moosehead increased, and Venture Associates increased significantly due to its large price increase.

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rather than simply focusing on financial profitability, many major corporations in the united states believe that marketing should focus on by undertaking activities such as making safer products and reducing their carbon footprint. multiple choice question. total sales corporate citizenry market share return on investment

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Rather than simply focusing on financial profitability, many major corporations in the United States believe that marketing should focus on corporate citizenry by undertaking activities such as making safer products and reducing their carbon footprint.

The correct option is b.

Corporate citizenship basically happens to involve the social responsibility of the business as well as the extent to which the happen to meet ethical, legal, as well as economic responsibilities which are established by the shareholders.

Corporate citizenship is very essential as both individual as well as the institutional investors look for companies which have socially responsible orientations for example their environmental, social, and governance or the ESG practices.

Hence, the correct option is option b.

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Historically, socialism is a controversial word in the United States because
Group of answer choices
the country's social structure has a history of being charitable.
it led to the Great Depression.
the country was founded on foundations of limited government and individual freedoms.

Answers

Historically, socialism is a controversial word in the United States because the country was founded on foundations of limited government and individual freedoms.

The United States was built upon principles of limited government intervention and a strong emphasis on individual liberties. Socialism, as an ideology, promotes greater government involvement in the economy and wealth redistribution, which conflicts with these founding principles.

Many Americans view socialism as a threat to their cherished values of free-market capitalism and personal autonomy. Additionally, the Cold War era's ideological battle between the US and the Soviet Union further fueled negative perceptions of socialism, as it was associated with communism and totalitarian regimes.

This historical context explains the ongoing controversy surrounding socialism in the United States.

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annalucia is giving a speech on behalf of her company

Answers

Annalucia will be delivering a speech representing her company. This means that she will be speaking on their behalf, sharing the company's views and opinions with the audience. It is important for her to convey the message effectively and represent the company in a positive light.


Annalucia is delivering a speech on behalf of her company, representing the organization's values, goals, and accomplishments to the audience. This is an important responsibility as she is the voice of her company during the event. Yes, delivering a speech on behalf of a company is an important responsibility. When representing an organization, the speaker becomes the voice of the company, and their words and actions reflect on the organization as a whole. Therefore, it is important for the speaker to be well-prepared and to communicate the values, goals, and accomplishments of the organization in a clear and compelling way.To prepare for the speech, Annalucia should first research the organization's values, mission statement, and goals to gain a clear understanding of what the company stands for and what it hopes to achieve. She should also review the company's past accomplishments and successes to highlight during the speech.Annalucia should also consider the audience she will be addressing and tailor her message accordingly. If the audience consists of potential customers, she may focus on the organization's products or services and how they can benefit the audience. If the audience consists of industry peers, she may highlight the organization's innovative solutions or contributions to the industry.

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