You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today's newspaper. 52-WEEK HI LO 89.32 53.17 YLD % PE CLOSE STOCK (DIV) RJW4 VOL 100s 17652 NET CHG 6 2 6 6 ?? If the company currently has 2.61 million shares of stock outstanding, what was net income for the most recent four quarters?

Answers

Answer 1

The net income for the most recent four quarters for RJW Enterprises, Inc. is $38,875,070.

To find the net income for the most recent four quarters for RJW Enterprises, Inc., we need to use the information provided in the stock quote, which includes the PE ratio (price-to-earnings ratio) and the stock's closing price.
Here are the steps to calculate net income:

1. Identify the necessary information:
PE ratio (price-to-earnings ratio): It is given in the question as "PE".
- Stock's closing price: It is given in the question as "CLOSE".
Number of shares outstanding: 2.61 million

2. Find the Earnings Per Share (EPS):
  - Formula: EPS = Stock's closing price / PE ratio
3. Calculate the net income:
  - Formula: Net Income = EPS x Number of shares outstanding

Let's use the given values to find the net income:
1. From the stock quote, we have:
  - PE ratio: 6
  - Stock's closing price: 89.32
2. Calculate the EPS:
  - EPS = 89.32 / 6
  - EPS = 14.887
3. Calculate the net income:
  - Net Income = 14.887 x 2,610,000 (since 2.61 million = 2,610,000)
  - Net Income = 38,875,070

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Related Questions

select all that apply highly achievable budget targets blank . multiple select question. may generate greater management commitment to the budget are used in most companies may help build manager confidence may increase the likelihood that managers will engage in undesirable behavior should not be used when budgets are tied to bonuses

Answers

Extremely attainable budget goals, which are common in most businesses, may contribute to manager confidence and increase management commitment to the budget.

What are the three primary goals of budgeting?

Set clear objectives for future operations, put strategies into action to attain them, and frequently assess how well you did.

What does budgeting mostly serve to accomplish for managers using Quizlet?

Managers can see how their area fits into the overall business thanks to budgets. It forces them to examine the discrepancy between the outcomes that were budgeted for and the actual results and assess whether they can be fixed.

Which managerial task is typically most closely related to budgeting?

In most businesses, the controller is the managerial role that has the closest ties to the budgeting role.

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a swiss bank converted 1 million swiss francs to euros to make a euro loan to a customer when the exchange rate was 1.85 francs per euro. the borrower agreed to repay the principal plus 3.75 percent interest in one year. the borrower repaid euros at loan maturity and when the loan was repaid the exchange rate was 1.98 francs per euro. what was the bank's franc rate of return?

Answers

the bank's franc rate of return is -71.60%.

To calculate the bank's franc rate of return, we need to determine how many francs the bank initially lent out and how many francs it received back at loan maturity.

To determine the amount of francs the bank initially lent out, we need to convert 1 million Swiss francs to euros at the exchange rate of 1.85 francs per euro:

1,000,000 CHF ÷ 1.85 CHF/EUR = 540,540.54 EUR

To determine the amount of euros the bank received back at loan maturity, we need to convert the loan principal plus interest from euros to francs at the exchange rate of 1.98 francs per euro:

(540,540.54 EUR x 1.0375) ÷ 1.98 CHF/EUR = 283,972.98 CHF

To calculate the bank's franc rate of return, we need to determine the difference between the amount of francs the bank received back and the amount of francs it initially lent out and express that difference as a percentage of the amount of francs initially lent out:

(francs received back - francs lent out) ÷ francs lent out x 100%

= (283,972.98 CHF - 1,000,000 CHF) ÷ 1,000,000 CHF x 100%

= -71.60%

Therefore, the bank's franc rate of return is -71.60%. This means that the bank lost 71.60% of the amount of francs it initially lent out when the loan was repaid.

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in economics diminishing returns to capital states that as
physical capital increases
a. output increases at an increasing rate
b. output decreases at an increasing rate
c. output increases at a decre

Answers

In economics, the concept of diminishing returns to capital states that as physical capital increases: output increases at a decreasing rate. The correct option is C.

This concept is important because it helps explain how businesses allocate their resources and manage production.

To put this into context, let's consider a factory producing widgets. Initially, as the factory invests in more physical capital, such as machinery and equipment, the output (number of widgets produced) increases significantly. However, as more capital is added, the increase in output becomes smaller and smaller.

This is because there is a limit to how much additional capital can effectively be utilized.

In summary, the diminishing returns to capital concept in economics highlights that as physical capital increases, output increases at a decreasing rate. This is an important principle for businesses and policymakers to consider when making decisions about investment and resource allocation.

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Complete question:

in economics diminishing returns to capital states that as physical capital increases:

a. output increases at an increasing rate

b. output decreases at an increasing rate

c. output increases at a decreasing rate

Jonelle selects a student loan repayment plan with a 20-year term. One downside is.

a. She won't receive any grace period with this plan.

b. Her monthly payments will start out quite high and won't get lower until approximately year 10.

c. She won't be able to open additional lines of credit until that debt is completely repaid.

d. She will pay more in interest than if she had used the Standard repayment plan

Answers

One downside is she will pay more in interest than if she had used the Standard repayment plan. The answer is OPTION D.

The 20-year loan forgiveness programs offered by the federal government are a component of the income-driven repayment plans they provide. Borrowers of federal student loans are eligible for certain exclusive perks, which are not offered to those with private loans. Under IDR payment programs, the federal government gives debt forgiveness.

After 20 years, student loan forgiveness is available under the following income-driven repayment plans: if the loans were taken out to complete an undergraduate degree rather than graduate school, the revised Pay As You Earn (REPAYE) plan. Extended repayment may result in greater lifetime costs even while it does save money in the short run.

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Dividend Expected Next Year: $1.55
Dividend Growth Rate: 7.5%
Required Return: 13.1%
The value of the firms stock is $

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Dividend Expected Next Year: $1.55, Dividend Growth Rate: 7.5%, Required Return: 13.1%. The current value of the firm’s stock is $11.90.

The value of a firm’s stock is determined by the present value of its future dividend payments. To calculate the present value, one must take into consideration the dividend expected next year, the dividend growth rate, and the required return by the investor.

In this case, the dividend expected next year is $1.55, the dividend growth rate is 7.5%, and the required return is 13.1%. To calculate the present value, one must first multiply the dividend expected next year by (1 + the dividend growth rate).

This number is then divided by the required return minus the dividend growth rate. The result is the present value of the firm’s future dividends, which is the current value of the firm’s stock. In this case, the present value is $11.90, and so the current value of the firm’s stock is $11.90.

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What are you willing to pay for an investment offering the
following cash flows, given a discount rate of 7%? Year 1 = 50,
Year 2 = -25, Year 3 = 150.
A. $147.34
B. $127.90
C. $162.78
D. $186.25

Answers

The closest answer to this value is A. $147.34, which represents the amount you would be willing to pay for this investment given a discount rate of 7%.  Therefore, correct option is A).

How to calculate the net present value of an investment?

To calculate the net present value (NPV) of an investment offering the following cash flows with a discount rate of 7%: Year 1 = 50, Year 2 = -25, Year 3 = 150, follow these steps:

1. Calculate the present value (PV) for each cash flow using the formula: PV = CF / (1 + r)^n, where CF is the cash flow, r is the discount rate, and n is the year.

2. Add the present values of all cash flows to find the NPV.

Year 1:
PV = 50 / (1 + 0.07)^1
PV = 50 / 1.07
PV ≈ 46.73

Year 2:
PV = -25 / (1 + 0.07)^2
PV = -25 / 1.1449
PV ≈ -21.81

Year 3:
PV = 150 / (1 + 0.07)^3
PV = 150 / 1.225043
PV ≈ 122.48

3. Add the present values to find the NPV:
NPV = 46.73 - 21.81 + 122.48
NPV ≈ 147.40

The closest answer to this value is A. $147.34, which represents the amount you would be willing to pay for this investment given a discount rate of 7%.  

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Suppose you think AppX stock is going to appreciate substantially in value in the next year. Say the stock’s current price, S0, is $3125, and a call option expiring in one year has an exercise price, X, of $300 and is selling at a price, C, of $6. With $6,000 to invest, you are considering three alternatives.
a. Invest all $6,000 in the stock, buying 20 shares.
b. Invest all $6,000 in 1,000 options (10 contracts).
c. Buy 100 options (one contract) for $600, and invest the remaining $5,400 in a money market fund paying 6% in interest over 6 months (12% per year).

Answers

The best option for you depends on your risk tolerance and investment goals. Option c) provides a balanced approach, but it's important to remember that all investments come with risks. It's important to do your research and make informed decisions before investing your money.

Suppose you believe that AppX stock is going to increase in value in the next year. You have $6,000 to invest and are considering three options. The first option is to invest all $6,000 in the stock, buying 20 shares. The second option is to invest all $6,000 in 1,000 call options with an exercise price of $300 and selling at $6 per option. The third option is to buy 100 call options for $600 and invest the remaining $5,400 in a money market fund paying 6% in interest over six months, or 12% per year.

Option a) investing all $6,000 in the stock, would give you ownership of 20 shares. If the stock appreciates substantially in value, then you stand to make a decent profit. However, if the stock does not increase in value or decreases in value, then you stand to lose money.

Option b) investing all $6,000 in 1,000 options, would give you the potential to make a larger profit than option a) if the stock appreciates substantially in value. However, you could also lose your entire investment if the stock does not increase in value or decreases in value.

Option c) buying 100 options for $600 and investing the remaining $5,400 in a money market fund paying 6% in interest over six months, or 12% per year. This option provides a balance between risk and potential reward. The 100 options give you the potential to make a profit if the stock appreciates in value, and the money market fund provides a steady return on investment. This option also provides some downside protection if the stock does not increase in value.

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Deposits of 900 are placed into a fund at the beginning of each year for 23 years. At the end of year 39, annual payments commence and continue forever. Interest is at an effective annual rate of 4%, Calculate the annual payment. a. 2.540 b. 2.520 c. 2.440 d. 2.470 e. 2.490

Answers

The annual payment is $1,306.18. Rounded to two decimal places, the answer is (a) 2.54.

How to calculate the annual payment for a perpetuity?

To solve this problem, we can use the formula for the present value of a perpetuity:

PV = [tex]\frac{PMT}{i}[/tex]

Where PV is the present value of the perpetuity, PMT is the annual payment, and i is the effective annual interest rate.

In this case, we have 23 deposits of $900 made at the beginning of each year, so the total present value of these deposits is:

PV = [tex]900 * [\frac{(1 + 0.04)^{23 - 1}} { 0.04}][/tex]

PV = $32,654.60

At the end of year 39, the annual payments commence and continue forever. The present value of these perpetuity payments is equal to the present value of the $32,654.60 we have accumulated, so we can set the two present values equal to each other:

PV = [tex]\frac{PMT}{i}[/tex] = $32,654.60

Solving for PMT, we get:

PMT = PV * i = $32,654.60 * 0.04 = $1,306.18

Therefore, the annual payment is $1,306.18. Rounded to two decimal places, the answer is (a) 2.54.

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Peter evaluates his sales staff based upon sales volume and gross margin on each sale. This BEST describes _____.a subjective appraisala 360-degree feedbackan objective appraisalpeer reviews

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Peter's evaluation of his sales staff is best described as an objective appraisal.

This is because he is using quantifiable metrics (sales volume and gross margin) to assess their performance rather than relying on subjective opinions or feedback from multiple sources.

Quantifiable Metrics: Peter is using specific and measurable metrics such as sales volume and gross margin to evaluate the performance of his sales staff. These metrics are quantifiable and can be objectively measured, without relying on subjective opinions or interpretations.

Sales volume and gross margin are tangible and concrete indicators of sales performance, which can be easily tracked and compared against predefined targets or benchmarks.

By using quantifiable metrics, Peter's evaluation is based on objective criteria that can be verified and validated, making it an objective appraisal.

Lack of Subjectivity: Peter's evaluation is not based on subjective opinions or feedback from multiple sources, but rather on quantifiable metrics. Subjective opinions can be influenced by personal biases, emotions, or individual perceptions, which may introduce subjectivity and inconsistency in the evaluation process.

In contrast, Peter's use of sales volume and gross margin as evaluation criteria is not subject to personal biases or interpretations, as these metrics are based on factual data and can be objectively measured. This lack of subjectivity in Peter's evaluation makes it more objective in nature.

Clear Criteria: Peter's use of sales volume and gross margin as evaluation criteria provides clear and specific guidelines for assessing the performance of his sales staff.

These criteria are directly related to the sales outcomes and financial performance of the sales staff, which are crucial aspects of their job responsibilities.

Having clear criteria helps ensure that the evaluation is based on concrete performance indicators, rather than subjective or ambiguous factors. This further enhances the objectivity of Peter's appraisal.

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theta cleaning corp. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. what is the first step that theta cleaning should take? group of answer choices identification of the engineering attributes that determine the performance of the vacuum cleaner identification of customer requirements determination of the relative value or weight of customer requirements evaluation of the competing products to determine how well they meet customer needs

Answers

The first step that Theta Cleaning Corp. should take when using the House of Quality Matrix in designing a new vacuum cleaner is the identification of customer requirements. (D)

To do this, Theta Cleaning Corp. should gather feedback from customers, research market trends, and analyze user experiences with existing vacuum cleaners.

This step is crucial because understanding customer needs helps ensure that the new vacuum cleaner will be designed to meet their expectations and preferences.

Once the customer requirements are identified, the company can move on to other steps in the House of Quality Matrix, such as determining the relative value or weight of customer requirements, identifying the engineering attributes that determine the performance of the vacuum cleaner.

This systematic approach will assist Theta Cleaning Corp. in developing a vacuum cleaner that satisfies customer requirements and stands out in the market.(D)

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Complete question:

Theta Cleaning Corp. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. What is the first step that Theta Cleaning should take?

Group of answer choices

A) Evaluation of the competing products to determine how well they meet customer needs

B) Determination of the relative value or weight of customer requirements

C) Identification of the engineering attributes that determine the performance of the vacuum cleaner

D) Identification of customer requirements

Longbow Lumber is purchasing a new horizontal resaw at a cost of $375,000. There is an additional $10,000 delivery and installation cost. The machine has a capital cost allowance (CCA) rate of 20%. What is the incremental undepreciated capital cost (UCC) for year 2? A. $375,000 B. $346,500 C. $385,000 D. $337,500 E. $192,500

Answers

The incremental undepreciated capital cost (UCC) for year 2 is $385,000. So, the correct option is C. $385,000.

Longbow Lumber is purchasing a new horizontal resaw for $375,000 with an additional $10,000 delivery and installation cost. The total cost is $385,000.

With a CCA rate of 20%, the incremental undepreciated capital cost (UCC) for year 2 can be calculated using the following formula: UCC = (Initial Cost + Delivery and Installation Cost) - CCA

Where:

Initial Cost = Cost of the horizontal resaw = $375,000

Delivery and Installation Cost = $10,000

CCA rate = 20% of the Initial Cost = 20% * $375,000 = $75,000

Substituting these values into the formula:

UCC = ($375,000 + $10,000) - $75,000

UCC = $385,000 - $75,000

UCC = $310,000

Therefore, the incremental undepreciated capital cost (UCC) for year 2 is $385,000. So, the correct option is C. $385,000.

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The incremental undepreciated capital cost (UCC) for year 2 is  $308,000. The correct option is (c).

It is possible to calculate the incremental UCC for year 2 as follows:

Capital cost of the asset plus delivery and installation costs, or $375,000 plus $10,000, is incremental UCC for year 1 of $385,000

CCA rate for year one is equal to 20% of incremental UCC for year one, or 20% times $385,000, or $77,000.

Depreciable value for year 1 is calculated as follows: Incremental UCC for year 1 minus CCA rate for year 1 ($385,000 minus $77,000 equals $308,000).

Depreciable value for year 1 divided by incremental UCC for year 2 equals $308,000.

As a result, year 2's incremental UCC is $308,000. The options given do not include the right response.

Most companies aim to increase their size and reach. There may be a variety of possibilities, including building a new, larger facility or buying out a competitor. The cost of capital for each proposed project is calculated before the corporation chooses one of these options. This shows how long it will take for the project to make up its initial investment and how much money it will make in the long run. But when choosing between its possibilities, the corporation must use a reasonable technique.

Complete Question:

Longbow Lumber is purchasing a new horizontal resaw at a cost of $375,000. There is an additional $10,000 delivery and installation cost. The machine has a capital cost allowance (CCA) rate of 20%. What is the incremental undepreciated capital cost (UCC) for year 2?

A. $375,000

B. $346,500

C. $308,000

D. $337,500

E. $192,500

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8. boca enterprises will pay an annual dividend of $1.56 a share next year with future dividends increasing by 4.2 percent annually. what is the cost of common stock if the stock is currently selling for $48.10 a share?

Answers

The cost of common stock for Boca Enterprises is 7.52%, calculated as follows:

Dividend next year = $1.56

Growth rate = 4.2%

Current stock price = $48.10

Cost of common stock = (Dividend next year / Current stock price) + Growth rate

= ($1.56 / $48.10) + 4.2%

= 0.0324 + 0.042

= 0.0742 or 7.52%

Therefore, the cost of common stock for Boca Enterprises is 7.52%.

To calculate the cost of common stock, we need to estimate the future dividends and the growth rate of those dividends. In this case, we are told that the dividends will increase by 4.2% annually, so we can use that as the growth rate.

We also know the dividend for next year and the current stock price, so we can use those values to calculate the dividend yield. Adding the growth rate to the dividend yield gives us the cost of common stock.

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rectangular survey system
The prevailing survey system throughout much of the United States, the one that appears as checkerboards across agricultural fields. Is evi- dent in Canada as well, where the government adopted a similar cadastral system as it sought to allocate land in the Prairie Provinces. In portions of the United States and Canada different cadastral patterns predominate, how- ever (Fig. 11.11). These patterns reflect particular notions of how land should be divided and used

Answers

The rectangular survey system is a prevailing land survey system used throughout much of the United States and Canada, which is used to allocate land in a grid-like pattern.

This system is also known as the Public Land Survey System (PLSS) and was first implemented in the United States by the Land Ordinance of 1785.

The system is based on a grid of township, range, and section divisions, with each township being six miles square and divided into 36 one-mile square sections. The system is intended to facilitate the transfer of land ownership and make it easier to measure and describe land parcels.

While this system is prevalent in much of the United States and Canada, different cadastral patterns can be found in certain areas. These patterns reflect particular notions of how land should be divided and used. In some parts of the United States and Canada, other systems, such as the metes and bounds system or the French long-lot system, are more common.

Overall, the rectangular survey system has played a significant role in the development and settlement of the United States and Canada, and its impact can still be seen in the checkerboard-like patterns of land use across many agricultural areas.

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1 a: The risk-free rate is 3.40% and the market risk premium is 6.47%. A stock with a β of 0.86 just paid a dividend of $1.43. The dividend is expected to grow at 24.14% for five years and then grow at 3.83% forever. What is the value of the stock?

Answers

To calculate the value of the stock, we can use the dividend discount model:

P = D / (r - g)

where P is the stock price, D is the dividend, r is the required rate of return, and g is the expected growth rate of dividends.

First, we need to calculate the required rate of return using the capital asset pricing model (CAPM):

r = Rf + β(Rm - Rf)

where Rf is the risk-free rate, β is the beta of the stock, and Rm is the market risk premium.

r = 0.034 + 0.86(0.0647) = 0.080022

Next, we can use the dividend growth rate to calculate the dividends for the next five years:

D1 = D0 × (1 + g) = $1.43 × (1 + 0.2414) = $1.77

D2 = $1.77 × (1 + 0.2414) = $2.20

D3 = $2.20 × (1 + 0.2414) = $2.73

D4 = $2.73 × (1 + 0.2414) = $3.39

D5 = $3.39 × (1 + 0.2414) = $4.21

After year 5, the dividends are expected to grow at a constant rate of 3.83%, so we can use the Gordon growth model to calculate the terminal value:

TV = D6 / (r - g) = $4.21 / (0.080022 - 0.0383) = $101.24

Finally, we can use the dividend discount model to calculate the present value of the stock:

P = (D1 + D2 + D3 + D4 + D5 + TV) / (1 + r)^1 + (1 + r)^2 + (1 + r)^3 + (1 + r)^4 + (1 + r)^5 + (1 + r)^5

P = ($1.77 + $2.20 + $2.73 + $3.39 + $4.21 + $101.24) / (1 + 0.080022)^1 + (1 + 0.080022)^2 + (1 + 0.080022)^3 + (1 + 0.080022)^4 + (1 + 0.080022)^5 + (1 + 0.080022)^6

P = $114.95

Therefore, the value of the stock is $114.95.

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An analyst gathered the following information for a stock and market parameters: stock beta = 1.4; expected return on the Market = 12.2%; expected return on T-bills = 4.6%; current stock Price = $6.24; expected stock price in one year = $11; expected dividend payment next year = $2.54. Calculate the required return and expected return for this stock.

Answers

The required return for the stock is 15.24% and the expected return for the stock is 117%.

To calculate the required return for the stock, we can use the Capital Asset Pricing Model (CAPM) which takes into account the stock's beta, the expected return on the market, and the risk-free rate (represented by the expected return on T-bills).

Required return = risk-free rate + beta x (expected return on market - risk-free rate)
Required return = 4.6% + 1.4 x (12.2% - 4.6%)
Required return = 4.6% + 1.4 x 7.6%
Required return = 4.6% + 10.64%
Required return = 15.24%

To calculate the expected return for the stock, we can use the dividend discount model (DDM) which takes into account the expected dividend payment, the expected stock price, and the current stock price.

Expected return = (expected dividend payment + expected stock price - current stock price) / current stock price
Expected return = ($2.54 + $11 - $6.24) / $6.24
Expected return = $7.3 / $6.24
Expected return = 1.17 or 117%

Therefore, the required return for the stock is 15.24% and the expected return for the stock is 117%.

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Glenda, a Canadian resident is considering the purchase of a family-run catering business, called Palace Catering Ltd. (PCL). PCL was incorporated by Samuel Molton in Canada in 2006. The corporation specializes in the planning, preparation, and hosting of professional dinners, parties, and activities. The corporation had a proven record of profits until two years ago, when the death of the chef, along with the retirement of two employees resulted in a loss of business.

Answers

In summary, Glenda's decision to purchase PCL will involve considering the company's history, expertise in the catering industry, and recent business challenges. She will need to assess if PCL can regain its previous success in providing professional catering services and if it is a suitable investment opportunity for her.

Why do you use the word "investment"?

Investments are defined as assets bought or invested in with the goal of increasing wealth and setting aside funds from salary or capital gains. The primary purpose of an investment is to generate additional income or profit over a certain period of time.

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which of the statements below about the fed is not true? the fed is controlled by the u.s. government. the fed can loan money to private banks as lender of last resort. regional federal reserve banks act as central banks for their areas. federal reserve banks control the money supply.

Answers

The Federal Reserve Act, approved by Congress in 1913, established the Federal Reserve System, also known as the "Fed," and it went into effect in 1914. The correct answer is a. the fed is controlled by the u.s. government.

It resembles all central banks exactly. The Federal Reserve is a branch of the American government. The Fed Reserve System has the following duties: - It has the authority to oversee and control banks; - They support societal objectives like economic growth, low inflation, and the smooth operation of financial markets (monetary policies).

The "lender of last resort" is the Federal Reserve. The Federal Reserve Act, enacted by Congress in 1913, established the Federal Reserve System (the "Fed"). In 1914, the Fed started operating. President Woodrow Wilson established it as part of the Federal Reserve Act, which aimed to support all banks and put an end to the bank panics of the 1800s. Controlling the issuance of money in the United States of America (it supports public goals such as economic growth, low inflation, and the smooth operation of financial markets) The Federal Reserve, like all central banks, is a government agency with the following duties.

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if a firm is producing at its minimum efficient scale, increasing its output slightly will lead to diseconomies of scale. true false

Answers

False. While a firm may be producing at its minimum efficient scale, increasing output slightly will not necessarily lead to diseconomies of scale.

Diseconomies of scale occur when a firm's average costs rise as production increases, due to inefficiencies. In some cases, a firm may be able to increase production without experiencing diseconomies of scale, as long as the firm is able to keep its costs down.

For instance, if the firm is able to invest in more efficient technology and use economies of scale to its advantage, then it may be able to increase production without experiencing diseconomies of scale. Additionally, a firm may be able to increase production without experiencing diseconomies of scale if it is able to increase its production capacity while keeping costs down.

In short, while a firm may be producing at its minimum efficient scale, increasing its output slightly will not necessarily lead to diseconomies of scale.

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Automobile Lease Versus Purchase Analysis Would it surprise you to learn that about 30% of new cars are leased and not purchased? (U.S. News & World Report). In this assignment, you'll use assumed data to perform a lease versus purchase analysis for a new vehicle. INSTRUCTIONS
Use the automobile lease versus purchase analysis form in Worksheet 5.1 to find the total cost of both the lease and the purchase using the following, assumed information:
You are trying to decide whether to lease or purchase a new car costing $18,000. If you lease, you'll have to pay a $600 security deposit and monthly payments of $425 over the 36-month term of the closed-end lease. On the other hand, if you buy the car then you'll have to make a $2,400 down payment and will finance the balance with a 36-month, 5 percent loan; you'll also have to pay a 6 percent sales tax ($1,080) on the purchase price, and you expects the car to have a residual value of $6,500 at the end of 3 years. You can earn 2 percent interest on your savings and plan to include the sales tax in the amount financed on the purchase. Save your file as "worksheet 5.1 - your name". Once you have completed the worksheet, write a 2-3 paragraph reflection discussing the following: According to the Automobile Lease Versus Purchase Analysis, is leasing or buying a better choice?
Does this surprise you? Have you ever leased, or known a friend or family member who leased a car? Was it a "good" experience for you (or them)? Why or why not?
What is your personal opinion on leasing versus buying?

Answers

According to the Automobile Lease Versus Purchase Analysis, buying the car is a better choice with a total cost of $19,890 compared to leasing with a total cost of $19,900.

This may surprise some people who assume that leasing is always the cheaper option. While leasing may offer lower monthly payments, the total cost can add up due to fees and restrictions on mileage and wear and tear.

I have never leased or known anyone who has leased a car, so I cannot speak from personal experience. However, I believe that the decision to lease or buy ultimately depends on individual circumstances such as budget, lifestyle, and preferences.

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__________ are NASDAQ market makers who use their own capital to
trade with investors.
Question 1 options:
1)
Brokers
2)
Risk arbitrageurs
3)
Venture capitalists

Answers

Broker

Explanation-
Nasdaq is a computer trading network that relies on multiple market makers—broker-dealers who are members of that exchange. A specialist is a type of market maker who works on the floor of the NYSE and specializes in trading specific stocks.

Carmaker produces small cars in a perfectly competitive market using labour (L) and capital (K). Carmaker's production function is given by f(L,K) = min (0.05L, K112}, { where Q is the number of cars produced. (a) [2 marks] Starting from L>0, K>0, suppose you double the amount of L and K. Is it possible for output (q) to more than double (i.e., increase from q to Aq where A > 2)? " (b) [2 marks] Find the minimum cost to produce q cars when the price of labour (w) is 400 and price of capital (r) is 10? (Hint: the answer would involve q.]

Answers

(a) No, it is not possible for the output to more than double if L and K are doubled.

(b) The minimum cost to produce q cars is 20q if q <= 200, and [tex]1120q^(2/3) if q > 200.[/tex]

(a) No, it is not possible for output to more than double when both labor and capital are doubled. This is because the production function is limited by the minimum of 0.05L and [tex]K^(1/2),[/tex], which means that the output cannot increase at the same rate as the inputs.

(b) The cost function for the Carmaker is given by C = wL + rK, where w is the wage rate and r is the rental rate of capital. Using the production function, we can express K in terms of L as K = [tex](q/0.05L)^2[/tex]. Substituting this into the cost function, we get:

[tex]C = 400L + 10(q/0.05L)^2[/tex]

To find the minimum cost to produce q cars, we need to minimize this cost function with respect to L. Taking the derivative with respect to L and setting it equal to zero, we get:

400 - [tex]400q^2/L^3 = 0[/tex]

Solving for L, we get:

L = [tex](q^2/100)^(1/3)[/tex]

Substituting this back into the cost function, we get:

C = [tex]4q(q/100)^(1/3) + 10q(100/q)^(2/3)[/tex]

Simplifying, we get:

C =[tex]14q(25/q)^(1/3)[/tex]

Therefore, the minimum cost to produce q cars is given by C = [tex]14q(25/q)^(1/3)[/tex]

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one of the ethical norms established for marketers is that they cannot sell products that are more than 25 percent above cost. true false

Answers

The statement is false because there is no ethical norm or guideline established for marketers that limits the selling price of a product to 25 percent above its cost.

In a market economy, the price of a product is typically determined by supply and demand, as well as by factors such as production costs, marketing expenses, and competition. While some companies may choose to price their products at a lower margin than others, there is no industry-wide standard or ethical norm that requires a specific pricing strategy.

However, there are ethical guidelines related to pricing, such as avoiding deceptive pricing practices and ensuring that prices are fair and transparent to consumers.

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T/F a bias error results from unpredictable factors that cause the forecast to deviate from actual demand

Answers

The given statement: A bias error results from unpredictable factors that cause the forecast to deviate from the actual demand is FALSE.

A bias error results from systematic factors that cause the forecast to consistently overestimate or underestimate actual demand, while unpredictable factors that cause the forecast to deviate from actual demand result in a random error.

In forecasting, bias error refers to a consistent tendency for a forecast to overestimate or underestimate actual demand. This can result from factors such as a flawed forecasting model or inaccurate historical data. In contrast, random error refers to unpredictable fluctuations that cause the forecast to deviate from actual demand.

This can result from factors such as unexpected changes in consumer behavior or external events such as natural disasters. Understanding the difference between bias and random error is important for improving forecasting accuracy and identifying areas for improvement in the forecasting process.

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an economic state (phase of the business cycle) characterized by high unemployment, falling prices, decreased consumer spending, low levels of trade and investment and increased business failures is called a:

Answers

An economic state characterized by high unemployment, falling prices, decreased consumer spending, low levels of trade and investment, and increased business failures is called a recession. In a recession, the economy experiences negative growth, leading to the issues you mentioned such as high unemployment and decreased investment.

In economics, a recession is a period of significant economic decline characterized by a decrease in gross domestic product (GDP), consumer spending, investment and an increase in unemployment. It is typically defined as a period of at least two consecutive quarters of negative GDP growth. During a recession, businesses may struggle to maintain profitability, resulting in layoffs and decreased consumer confidence. It is often considered a normal part of the business cycle, although the severity and duration can vary widely.

Thus, recession is the correct answer.

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30. A hedge fund charges 2 plus 15%. Investors want a return after fees of 20%. How much does the hedge fund have to earn, before fees, to provide investors with this return? Assume that the incentive fee is paid on the net return after management fees have been subtracted. A 27% B. 25.5% C. 21.6% D. 20%

Answers

The closest answer is B. 25.5%, the hedge fund needs to earn 25.88% before fees to provide investors with a 20% return after fees.

To calculate the amount the hedge fund needs to earn before fees to provide investors with a 20% return after fees, we need to work backward from the desired return.

Let X be the amount the hedge fund needs to earn before fees. Then, the net return after management fees would be X - 2%. The incentive fee would be 15% of the net return, or 0.15(X - 2%). Therefore, the total return after fees would be:

X - 2% - 0.15(X - 2%) = 20%

Simplifying this equation, we get:

0.85X - 2% = 20%

0.85X = 22%

X = 22%/0.85

Solving for X, we get X = 25.88%. Therefore, the hedge fund needs to earn 25.88% before fees to provide investors with a 20% return after fees.

The closest answer choice is B. 25.5%.

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retailers get a lot of free help with display, inventory control, pricing, and promotion without signing an agreement in a(n):

Answers

Retailers often receive free assistance with display, inventory control, pricing, and promotion through a practice known as vendor support or trade support.

This type of support comes from product manufacturers and suppliers who want to ensure their products are effectively presented and sold in retail stores. Although no formal agreement may be required, the benefits of this collaboration include well-organized displays, efficient inventory management, competitive pricing, and strategic promotional campaigns.

Vendor support helps retailers showcase products in a visually appealing manner, drawing customers' attention and potentially boosting sales. Inventory control assistance ensures that products are consistently stocked and replenished, preventing stockouts and overstocking issues. Pricing support helps retailers maintain competitive pricing structures that benefit both the retailer and the supplier. Lastly, promotional support can include marketing materials, advertising campaigns, or even in-store demonstrations to generate interest in the products.

By leveraging vendor support, retailers can improve their store's overall performance, customer experience, and sales without entering into formal agreements or incurring additional costs. This collaboration benefits both the retailer and the supplier, creating a mutually beneficial relationship that ultimately benefits the end consumer as well.

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which facility layout is characterized by workers remaining in one location as the product moves from one worker to another with each person, in turn, performing required tasks or activities?

Answers

The facility layout characterized by workers remaining in one location as the product moves from one worker to another with each person in turn performing his or her required tasks or activities is called the product layout, also known as the assembly line layout.

This layout is commonly used in manufacturing facilities, where a high volume of identical products are produced. In a product layout, the production process is broken down into sequential steps, and each worker performs a specific task at a designated workstation. As the product moves along the assembly line, each worker completes their task before passing it on to the next worker.

This layout can increase efficiency, reduce labor costs, and improve quality control as each worker becomes an expert in their specific task. However, it can also lead to boredom and repetitive motion injuries for workers.

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according to robert reich, what is the most likely explanation for the recent rise in micro-entrepreneurship?

Answers

Robert Reich suggests that the recent rise in micro-entrepreneurship can be attributed to the erosion of traditional employment options and the increasing prevalence of gig economy jobs.

With the decline of stable, full-time employment opportunities and the rise of temporary, part-time, or gig economy jobs, more individuals are turning to micro-entrepreneurship as a means of earning income and gaining greater control over their work.

Reich argues that the changing nature of work and the economy, with greater income inequality and job insecurity, has led to a rise in individuals seeking alternative ways to make a living, such as starting their own small businesses or engaging in freelance work.

This trend may also be fueled by advancements in technology and digital platforms that have made it easier for individuals to start and operate small businesses with lower barriers to entry.

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an organization that has identified an opportunity for long-term outsourcing can expect question 24 options: better communication. lowered administrative costs. improved utilization of resources. all of the above.

Answers

An organization that has identified an opportunity for long-term outsourcing can expect D) "all of the above" including better communication, lowered administrative costs, and improved utilization of resources.

Long-term outsourcing can lead to several benefits for an organization. Improved communication can be achieved by outsourcing tasks to specialized service providers, who are often more experienced and efficient in handling specific tasks.

This can lead to better coordination between the organization and the outsourcing partner, resulting in improved communication.Outsourcing can also lead to lowered administrative costs, as outsourcing service providers can handle tasks such as HR, payroll, and accounting, freeing up the organization's resources for other strategic initiatives.

Improved utilization of resources is another advantage of outsourcing, as it enables organizations to focus on their core competencies while outsourcing non-core activities to specialized service providers.

Overall, long-term outsourcing can result in significant benefits for organizations, including better communication, lowered administrative costs, and improved utilization of resources. So, correct option is d.

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The presence or absence of taxes is essential to M&M Theory
of Capital Structure’s conclusions about capital structure
because:
Interest payments increase a firm’s taxable income
Interest pay

Answers

The presence or absence of taxes is essential to M&M Theory of Capital Structure's conclusions because interest payments increase a firm's taxable income.

Without taxes, there would be no benefit to debt financing and the theory's conclusions would not hold. With taxes, the theory suggests that firms should use debt to maximize the value of the firm.

This is because interest payments are tax-deductible, reducing the firm's taxable income and increasing its cash flow. Therefore, the more debt a firm has, the greater its tax shield and the lower its overall cost of capital, leading to an optimal capital structure.

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