To calculate the present value of a bond, we need the bond's coupon rate, the number of years to maturity, and the discount rate.
Calculation of the bond price of the Ice Tea Inc: Given, Face value (FV) of the bond = $1000Coupon rate = 9%Payment frequency = Semi-annually, N = 15 years = 30 semi-annual periods, YTM (required rate of return) = 7%.
We can use the below formula to calculate the bond price.
P = C * [1 - (1 + r / n) ^ -nt] / (r / n) + F / (1 + r / n) ^ nt
Calculation of coupon payment per period: We know that the annual coupon payment is $90 (9% of $1000). The periodic coupon payment can be calculated as follows:
Periodic coupon payment = Annual coupon payment / 2Periodic coupon payment = $90 / 2 = $45
Calculation of the bond price: Now, we have all the details required to calculate the bond price using the above formula. We just need to substitute the values in the formula and solve it. P = 45 * [1 - (1 + 0.07 / 2) ^ -30] / (0.07 / 2) + 1000 / (1 + 0.07 / 2) ^ 30P = $1,108.57
Hence, the bond price of Ice Tea Inc. with a 9% coupon rate, 15 years to maturity, and 7% YTM is $1,108.57.
Thus, the calculated price of the bond of IceTea Inc. is $1,108.57, with a 9% coupon rate, 15 years to maturity, and 7% YTM.
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In the context of the Capital Asset Pricing Model (CAPM), the relevant measure of risk is Multiple Choice
unique risk standard deviation of returns. beta. variance of returns.
In the context of the Capital Asset Pricing Model (CAPM), the relevant measure of risk is beta.
CAPM is an acronym for Capital Asset Pricing Model. It is a financial model used to calculate expected investment returns.
CAPM considers an investment's exposure to systematic risk and helps investors calculate how much return they should require from an investment based on that exposure.
The Capital Asset Pricing Model calculates the expected return for an asset or portfolio by comparing it to the expected return of the market.
The expected market return is based on the market premium, which is the difference between the market return and the risk-free rate.
The CAPM formula is: Ri = Rf + ßi (Rm - Rf)
Where: Ri = expected return of investmentRf = risk-free rateßi = beta of the investmentRm = expected market returnßi is the asset's sensitivity to the market's systematic risk and is used as a measure of the risk-return tradeoff.
Therefore, in the context of the Capital Asset Pricing Model (CAPM), the relevant measure of risk is beta.
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You have an investment that in today's dollars returns 15% of your investment in year 1, 12% in year two, 9% in year 3 and the remainder in year 4. What is the duration of this investment?
The term "duration of an investment" describes how long a person intends to retain a particular investment before selling or liquidating it. Depending on the investor's financial objectives, level of risk tolerance, and investing strategy, the duration may change. The duration of this investment is approximately 3.36 years.
To determine the duration of this investment, we need to calculate the weighted average of the time it takes to receive each portion of the return.
Using the formula for the weighted average duration, we get:
Duration = [(1*15) + (2*12) + (3*9) + (4*x)] / (15+12+9+x)
Where x is the percentage return in year 4.
Simplifying the equation, we get:
Duration = (63 + 4x) / (36 + x)
To solve for x, we know that the total return over the 4 years must add up to 100%. So:
15 + 12 + 9 + x = 100
x = 64
Plugging x back into the duration equation, we get:
Duration = (63 + 4(64)) / (36 + 64) = 3.36 years
Therefore, the duration of this investment is approximately 3.36 years.
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A common method for shortening the project time is to Adding resources Schedule overtime O Subcontract an activity Both A and B are corred A, B, and C are all correct
A common method for shortening the project time is to Adding resources, Schedule overtime, Subcontract an activity. All three options A, B, and C are correct. These methods help to reduce the time taken to complete the project and meet the deadline on time.
However, adding resources will add costs to the project, which is not always desirable. The team can also add resources with extra equipment, personnel, or time to the activities. This will reduce the time taken to complete the project, which will reduce the project schedule and ultimately increase the overall project cost.Overtime is an approach that can help shorten the project duration. It can reduce the time taken to complete the project by increasing the number of hours worked by personnel.
It can also increase the productivity of the project team and help meet the project deadline. Subcontracting is another way to shorten the project schedule. Subcontracting an activity can reduce the time taken to complete the project and help meet the project deadline. It involves subcontracting a part of the project work to an outside party. In some cases, subcontracting can reduce the quality of the work or increase costs.
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What are the factors included in a cash flows analysis for evaluating capital investments? O Capital investment amount, operating expenses, revenue generated. O Sunk costs, operating expenses, revenue generated. Capital investment amount, manufacturing overhead, revenue generated. O Capital investment amount, operating expenses, asset turnover.
The factors included in a cash flows analysis for evaluating capital investments typically consist of the capital investment amount, operating expenses, and revenue generated.
When evaluating capital investments, a cash flows analysis is conducted to assess the financial viability of the investment. The factors included in this analysis are as follows:
1. Capital investment amount: This refers to the initial investment required to acquire the capital asset. It includes the purchase cost of the asset, installation costs, and any other expenses related to acquiring and setting up the asset.
2. Operating expenses: These are the ongoing costs associated with operating and maintaining the capital asset. This includes expenses such as labor costs, raw material costs, utilities, maintenance and repair costs, and any other costs directly related to the operation of the asset.
3. Revenue generated: This represents the inflows of cash generated by the capital asset over its useful life. It includes the income generated from the sale of products or services produced by the asset or any other revenue streams associated with its use.
By analyzing the cash flows associated with these factors, businesses can evaluate the profitability and financial feasibility of capital investments. It helps assess the expected returns and whether the investment will generate sufficient cash flows to cover the capital investment amount and operating expenses while generating a positive return on investment.
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Question 26
Fredrick is most focused on gaining the respect of his
work colleagues and being seen as an expert in his field. Which of
Maslow’s hierarchy of needs is Frederick most focused
on?
Therefore, in the given scenario, Frederick is focused on gaining the respect of his work colleagues and being seen as an expert in his field that falls under esteem needs. The answer is esteem needs.
According to Maslow's hierarchy of needs, the basic needs of individuals must be met before they can move on to fulfilling their higher-level needs. In this regard, Frederick is most focused on gaining the respect of his work colleagues and being seen as an expert in his field.What is Maslow's hierarchy of needs?Maslow's hierarchy of needs is a theory that divides human needs into five levels or categories. The five needs are physiological needs, safety needs, love and belongingness needs, esteem needs, and self-actualization needs. The pyramid has been arranged so that the lower levels of the pyramid must be satisfied before the higher needs can be met.
The pyramid suggests that an individual must fulfill his physiological and safety needs before they can move to higher needs, such as love and belongingness needs, esteem needs, and self-actualization needs. According to Maslow's hierarchy of needs, esteem needs include self-respect, achievement, respect from others, and personal worth. Since Frederick is focused on gaining the respect of his work colleagues and being seen as an expert in his field, he is most concerned with his esteem needs. Hence, the answer to the question is esteem needs.
In conclusion, esteem needs are at the core of Maslow's hierarchy of needs theory. Esteem needs are divided into two categories, self-esteem and the esteem we receive from others. Therefore, in the given scenario, Frederick is focused on gaining the respect of his work colleagues and being seen as an expert in his field that falls under esteem needs. The answer is esteem needs.
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Theory of perfect competition does not assume .........
A. Large quantity of sellers and buyers
B. Buyers and sellers to have all relevant information with respect to prices, product quality and sources of supply
C. firms to sell differentiated products
D. easy entry and exit from the market
Theory of perfect competition does not assume firms to sell differentiated products. Option -C is correct answer.
The theory of perfect competition assumes that there is a large number of sellers and buyers in the market, buyers and sellers have all relevant information regarding prices, product quality, and sources of supply, and there is easy entry and exit from the market. However, it does not assume that firms sell differentiated products. In perfect competition, products are homogeneous, meaning they are identical and indistinguishable from one another.
This assumption ensures that all firms in the market are price takers and have no control over the market price.
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Ronnie received a monthly travel allowance of R3 800 per month, for the full year of assessment. During the current year of assessment, he travelled 16 200 kilometres for business purposes and a total of 40 000 kilometres for the current year of assessment. He spent R10 000 on Fuel, R3 000 on Maintenance, R5 000 on Insurance Premiums and R600 on License Fees. You can assume that the deemed cost per kilometre is correctly calculated to be R4.23 YOU ARE REQUIRED to calculate the Actual cost per kilometre.
To calculate the actual cost per kilometer, we need to determine the total expenses incurred for the business travel and divide it by the total distance traveled for business purposes.
Total expenses for business travel = Fuel + Maintenance + Insurance Premiums + License Fees = R10,000 + R3,000 + R5,000 + R600 = R18,600 Distance traveled for business purposes = 16,200 kilometers Actual cost per kilometer = Total expenses for business travel / Distance traveled for business purposes = R18,600 / 16,200 ≈ R1.1481 Therefore, the actual cost per kilometer is approximately R1.1481.
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What is a standard deduction? What is the standard deduction based on?
A standard deduction is a: (Select the best answer below.)
a. varies according to your filing status.
b. is affected by the amount of income you earned during the year.
c. varies according to your filing status and your income.
d. does not vary according to your filing status
The correct answer is c. The standard deduction varies according to your filing status and your income.
The standard deduction is a set dollar amount that reduces the amount of income on which you're taxed. It is determined by the IRS and is adjusted annually for inflation. The standard deduction is based on various factors such as your filing status, age, and whether you are blind or disabled.
For example, in the United States tax system for the tax year 2022, the standard deduction for single filers is $12,950, for married filing jointly is $25,900, for head of household is $18,350, and for married filing separately is $12,950. However, if your deductions exceed the standard deduction, it may be more beneficial for you to itemize your deductions instead.
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Mr. Smith bought a generator worth R 150 000.00 when interest rate was still 8% in 2016. When its lifecycle came to an end in 2020 it was valued at R 35 000.00. Use the following methods to calculate the annual depreciation and book balance for Mr. Smith and where possible, advise him. i. Annual revaluation (3) i. (1) Declining balance. (5) (1) Using Straight Line. (5) iv. Using Sum of the Years Digits (SOYD). (12)
Mr. Smith can use methods like annual revaluation, declining balance, straight line, and sum of the years' digits to calculate the annual depreciation and book balance for his generator.
How can Mr. Smith calculate the annual depreciation?
To calculate the annual depreciation and book balance for Mr. Smith's generator, we can use the following methods:
i. Annual revaluation: In this method, the depreciation is calculated by subtracting the current value from the initial value and dividing it by the number of years. The annual depreciation would be (150,000 - 35,000) / 4 = R 28,750. The book balance would be the initial value minus the accumulated depreciation each year.
ii. Declining balance: This method applies a fixed percentage to the book value each year. Let's assume a depreciation rate of 20%. The annual depreciation would be 20% of the previous year's book value. The book balance would decrease each year based on the declining balance method.
iii. Straight Line: In this method, the annual depreciation is calculated by dividing the difference between the initial value and salvage value by the number of years. Assuming a useful life of 4 years, the annual depreciation would be (150,000 - 35,000) / 4 = R 28,750. The book balance would decrease by the same amount each year.
iv. Sum of the Years Digits (SOYD): This method assigns a weight to each year of the asset's useful life. The annual depreciation is calculated by multiplying the remaining useful life by the initial cost minus the salvage value, divided by the sum of the years' digits. The book balance would decrease each year based on the SOYD method.
Based on the calculations and methods used, Mr. Smith can determine the annual depreciation and book balance for his generator. It is advisable to consider factors such as the useful life, salvage value, and financial implications when choosing the most suitable depreciation method.
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A manager checked production records and found that a worker produced 195 units while working 50 hours. In the previous week, the same worker produced 128 units while working 40 hours.
The manager checked the production records and found that a worker produced 195 units while working 50 hours. In the previous week, the same worker produced 128 units while working 40 hours. In the present week, the worker produced 195 units while working 50 hours.
To calculate the worker's productivity, we need to find the worker's productivity per hour of work. So,195 units produced ÷ 50 hours worked = 3.9 units per hour The worker produced 3.9 units per hour in the current week. In the previous week, the worker produced 128 units while working 40 hours. To calculate the worker's productivity in the previous week, we need to find the worker's productivity per hour of work.So,128 units produced ÷ 40 hours worked = 3.2 units per hour The worker produced 3.2 units per hour in the previous week. Therefore, we can conclude that the worker was more productive in the present week compared to the previous week as the productivity per hour of work increased from 3.2 units per hour to 3.9 units per hour.
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1. Economic indicators analysis, for example: GDP
components, balance of payments, the exchange rate, inflation,
etc.
2. Financial system: banking industry and capital
markets"
Economic indicators analysis: Economic indicators analysis is a useful tool for understanding economic performance. These indicators can be divided into two categories: leading and lagging indicators.
Leading indicators are those that predict future economic trends, while lagging indicators are those that provide information about past economic trends. GDP components: Gross Domestic Product (GDP) measures the total value of goods and services produced within a country's borders during a specified time period. GDP has four main components: consumption, investment, government spending, and net exports. Balance of payments: The balance of payments is a record of all international transactions between a country and the rest of the world. It includes trade in goods and services, investment income, and transfers. Exchange rate: The exchange rate is the price of one currency in terms of another currency. It is determined by the supply and demand for each currency in the foreign exchange market. Inflation: Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It is measured by the Consumer Price Index (CPI), which reflects the prices of a basket of goods and services. Financial system: The financial system comprises of the banking industry and capital markets. It is measured by the Consumer Price Index (CPI), which reflects the prices of a basket of goods and services. The financial system is essential for economic growth and development. The banking industry and capital markets play an important role in promoting economic growth and development. The banking industry is responsible for providing financial intermediation services, such as accepting deposits and providing loans. Capital markets, on the other hand, provide long-term financing through the issuance of equity and debt securities. The capital markets also facilitate secondary trading of securities and provide liquidity to investors.
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In order to make ends meet, which determinants of EBDAT
are your priorities, and explain why?
In order to make ends meet, the determinants of EBDAT (Earnings Before Depreciation, Amortization, and Taxes) that are typically prioritized depend on the specific circumstances and goals of a business.
Revenue Growth: Increasing revenue is a crucial determinant for generating higher EBDAT.Cost Control: Managing and reducing costs is essential for maximizing EBDAT. By closely monitoring expenses, identifying areas of inefficiency, and implementing cost-saving measures, businesses can enhance their bottom line and improve profitability.Gross Margin: Gross margin, which is calculated as the difference between revenue and the cost of goods sold (COGS), is a key determinant of EBDAT.Operational Efficiency: Enhancing operational efficiency can positively impact EBDAT. By streamlining processes, optimizing resource allocation, and improving productivity, businesses can lower operating costs and increase their profitability.Pricing Strategy: Setting appropriate prices for products or services is crucial for generating positive EBDAT.Market Expansion: Exploring new markets and expanding the customer base can provide opportunities for generating additional revenue and improving EBDAT.Financial Management: Effective financial management practices, including budgeting, cash flow management, and prudent financial decision-making, are essential for achieving positive EBDAT.Learn more about tax here : brainly.com/question/12611692
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What is meant by instrumentalization?
Why might humans have evolved a distaste for it? What does this
have to do with anti-market bias?
Instrumentalization refers to the act of using someone or something solely as a means to achieve an end or goal, treating them as a tool or object rather than recognizing their intrinsic value or dignity.
Humans may have evolved a distaste for instrumentalization due to several reasons, including social and ethical considerations. Here are some possible explanations:
Empathy and social bonds: Humans have evolved to form social connections and empathy towards others. Instrumentalizing individuals or objects can undermine these social bonds and lead to feelings of exploitation or dehumanization. Our innate sense of empathy may make us uncomfortable with treating others as mere instruments.Moral principles: Many moral frameworks emphasize the importance of treating others with respect and dignity. Instrumentalization conflicts with these moral principles, as it involves objectifying or exploiting individuals for personal gain or utility. This misalignment between instrumentalization and moral values can result in a distaste for such behavior.Cooperative instincts: Humans have a long history of cooperative behaviors, relying on collaboration and mutual assistance for survival and success. Instrumentalization can undermine cooperative dynamics by creating imbalances of power or compromising trust within social interactions. A distaste for instrumentalization may have evolved as a mechanism to preserve cooperation and maintain healthy social relationships.The connection between instrumentalization and anti-market bias is complex and multifaceted. Anti-market bias refers to a tendency to underestimate the benefits and efficiency of market mechanisms in allocating resources and generating economic outcomes. This bias can arise from various factors, including concerns about fairness, inequality, and negative perceptions of market competition.
Instrumentalization, in the context of anti-market bias, may contribute to negative attitudes towards markets. Critics of markets often argue that market transactions can lead to the instrumentalization of individuals or goods, reducing them to mere commodities to be bought and sold. This perspective sees markets as promoting a purely utilitarian view of human interactions, where everything has a price and value is solely determined by market forces.
However, it is important to note that markets, when functioning properly, also provide opportunities for voluntary exchange, specialization, and the satisfaction of individual preferences. While instrumentalization can be a concern in certain market contexts, a nuanced understanding acknowledges the potential for mutually beneficial transactions and the recognition of individual autonomy and dignity within market interactions.
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Which of the following is not a major barrier to entry into an industry?
Patents
Economies of scale
Diminishing marginal returns
Unfair competition
b. Which of the following is a true statement?
Natural monopolies occur when an industry makes a strong lobbying effort.
Control of essential resources is a barrier to entry that is now illegal.
Unfair competition is a barrier with no social justification.
Barrier to entry refers to the difficulties that an entrepreneur encounters while starting a new business. These barriers can be structural, legal, or market-based.
They usually make it tough or impossible to compete with existing businesses in the same industry. A significant part of the entry barriers can be enforced by governments through legislation. Some of the most common barriers are patents, economies of scale, and unfair competition.Patents, economies of scale, and unfair competition are major barriers to entry into an industry. Diminishing marginal returns are not a barrier to entry. This is because it is a concept that only applies to production processes and not entry into an industry.B. The correct statement is "Control of essential resources is a barrier to entry that is now illegal."Control of critical resources is a significant barrier to entry. This can include control of essential materials or production processes. It could also entail control of resources like water, land, and labor. These can make it impossible for new businesses to compete effectively. However, control of necessary resources is no longer a barrier to entry. This is because it is against the law to monopolize essential resources or use them to prevent entry into the market.
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Transcribed image text: 2. ABC LTD company looking to measure its productivity. If the output of last month's production was 500,000 units, and the total employees working in the organization are 500 and each employee work for 100 hours to complete this production. Price of per unit is SR 50. Calculate the productivity based on: (i) Production in each hour, (Formula: Production/total hours) (ii) Production from each employee, (Formula: Production/no. of employee) (iii) Revenue in each hour, and (Formula: Revenue/total hours) (iv) Revenue contributed by each employee. (Formula: Revenue/Total employees Answer:
Total revenue = SR 25,000,000 Total employees = 500 Therefore, Revenue contributed by each employee = 25,000,000 / 500 Revenue contributed by each employee = SR 50,000 Thus, each employee contributed SR 50,000 of revenue.
Productivity is defined as the ratio of output to input. It is the amount of production produced by a company in a specific period in response to a specific quantity of inputs, such as labor hours or machine hours. ABC LTD needs to evaluate its productivity, based on the provided details. The details are:Output of last month's production = 500,000 units Total employees working in the organization = 500 Each employee work for 100 hours to complete this production Price of per unit = SR 50 Based on these details, ABC LTD's productivity can be calculated as follows:Calculation of Productivity The total number of labor hours worked by all employees = Total number of employees × Hours worked by each employee Total labor hours worked by all employees = 500 × 100 = 50,000 hours Production in each hour can be calculated as:Production in each hour = Total Production / Total hours Total hours = Total labor hours worked by all employees = 50,000 hours Total Production = Output of last month's production = 500,000 units Therefore,Production in each hour = 500,000 / 50,000 Production in each hour = 10 units/hourThus, production in each hour was 10 units.For Production from each employee, the formula is:Production from each employee = Total Production / Total employees Total Production = 500,000 units Total employees = 500 Therefore,Production from each employee = 500,000 / 500 Production from each employee = 1,000 units/employee Thus, each employee produced 1,000 units.For Revenue in each hour, the formula is:Revenue in each hour = Total revenue / Total hours Total hours = Total labor hours worked by all employees = 50,000 hours Total revenue = Total Production × Price per unit = 500,000 × SR 50 = SR 25,000,000 Therefore,Revenue in each hour = 25,000,000 / 50,000 Revenue in each hour = SR 500/hourThus, the company generated SR 500 of revenue per hour.For Revenue contributed by each employee, the formula is:Revenue contributed by each employee = Total revenue / Total employees
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the portion of inventory or production not committed to customer orders is called:
Available inventory refers to the portion of inventory not committed to customer orders, ready for sale. Effective management is essential to balance costs and meet customer demand.
The portion of inventory or production not committed to customer orders is called available inventory. It is the stock of goods available for sale and that are not currently reserved for future or current orders. It is the quantity of products that can be sold by a company or entity at any given moment. Available inventory can be used to fulfill new orders from clients that may come in unexpectedly.The management of available inventory is crucial for a company's financial success. A company should always try to optimize its available inventory so that it is neither too high nor too low. A high available inventory can result in excessive carrying costs, while a low available inventory can cause stockouts and customer dissatisfaction.
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sweet acacia commodities company signed a long-term noncancelable purchase commitment with a major vegetable supplier to
Sweet Acacia Commodities Company signed a long-term noncancelable purchase commitment with a major vegetable supplier to ensure a reliable source of raw materials for its new line of organic frozen dinners.
The purchase commitment is classified as an executory contract. An executory contract is a contract where one or both of the parties have not yet performed their contractual obligations. The commitment to purchase vegetables over a long-term means that Sweet Acacia is obligated to buy the minimum specified amount of vegetables at the predetermined price from the vegetable supplier. This contract will continue until the agreement's termination date, unless both parties mutually agree to an early termination. The noncancelable purchase commitment Sweet Acacia Commodities Company signed with the major vegetable supplier is a type of executory contract, where both parties haven't performed their contractual obligations yet.
The purchase commitment will continue until the termination date specified, and the minimum amount of vegetables specified in the contract has to be purchased by Sweet Acacia Commodities Company at the predetermined price.
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2.4 An automotive company uses a kanban system to support its transmission assembly. The following information is known about the component on the assembly: Annual usage = 45 000 (300 days per year) S
The kanban system contributes to the company's overall productivity and cost-effectiveness in managing their transmission assembly process.
An automotive company uses a kanban system for its transmission assembly, with an annual usage of 45,000 components over 300 working days. The kanban system is a lean manufacturing technique designed to manage work-in-progress inventory and production flow. By utilizing visual signals like cards or bins, it communicates to workers when to produce or restock components based on customer demand.
In this case, the company assembles transmissions, with a specific component being used at a rate of 45,000 units per year. The kanban system helps the company maintain an efficient production flow, avoiding excess inventory or stockouts.
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Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags.
Demand = 90 bags/week
Order Cost= $54/0rder
Annual Holding cost = 27% of cost
Desired cycle-service level = 80%
Lead time = 3 weeks (18 working days)
Standard deviation of weekly demand = 15 bags
Current on-hand inventory is 320 bags, with no open orders or backorders.
a. What is the EOQ? What would the average time between orders (in weeks)?
b. What should R be?
c. An inventory withdraw of 10 bags was just made. Is it time to reorder?
D. The store currently uses a lot size of 500 bags (i.e., Q=500). What is the annual holding cost of this policy? Annual ordering cost? Without calculating the EOQ, how can you conclude lot size is too large?
e. What would be the annual cost saved by shifting from the 500-bag lot size to the EOQ?
a. Average Time Between Orders = 510 bags / 4,680 bags/week ≈ 0.109 weeks
b. The reorder point should be approximately 289 bags.
c. Current Inventory Level = 320 bags + 0 bags - 10 bags = 310 bags
d. Annual Ordering Cost = (4,680 / 500) * $54/order ≈ $504.48
To solve these inventory To solve these inventory management questions, we can use the following formulas and calculations:
a. EOQ
Given:
Annual Demand = 90 bags/week * 52 weeks = 4,680 bags
Order Cost = $54/order
Annual Holding Cost = 27% of $11.70 = $3.16/bag
Plugging in the values:
EOQ = sqrt((2 * 4,680 * 54) / 3.16) ≈ 509.52 (rounded to the nearest whole number)
The EOQ is approximately 510 bags.
Average Time Between Orders = EOQ / Annual Demand
Average Time Between Orders = 510 bags / 4,680 bags/week ≈ 0.109 weeks
b. R (Reorder Point) can be calculated using the formula:
R = Lead Time Demand + Safety Stock
The desired cycle-service level is 80%, so the Z-score corresponding to that level can be found using a standard normal distribution table. Let's assume it is 1.28.
Standard Deviation of Weekly Demand = 15 bags
Lead Time Demand = Weekly Demand * Lead Time = 90 bags/week * 3 weeks = 270 bags
Plugging in the values:
Safety Stock = 1.28 * 15 bags ≈ 19.2 bags (rounded to the nearest whole number)
R = 270 bags + 19 bags ≈ 289 bags (rounded to the nearest whole number)
The reorder point should be approximately 289 bags.
c. After an inventory withdrawal of 10 bags, we need to check if it is time to reorder.
Current Inventory Level = On-Hand Inventory + Open Orders - Backorders
Current Inventory Level = 320 bags + 0 bags - 10 bags = 310 bags
d. we can use the following formulas:
Annual Holding Cost = (Q / 2) * Holding Cost per bag
Annual Ordering Cost = (Annual Demand / Q) * Order Cost
Plugging in the values:
Annual Holding Cost = (500 / 2) * $3.16/bag = $790
Annual Ordering Cost = (4,680 / 500) * $54/order ≈ $504.48
e. The annual cost saved by shifting from the 500-bag lot size to the EOQ can be calculated by finding the difference in annual holding and ordering costs.
Annual Cost Savings = Annual Holding Cost (500-bag lot size) - Annual Holding Cost (EOQ) + Annual Ordering Cost (500-bag lot size) - Annual Ordering Cost (EOQ)
a. EOQ (Economic Order Quantity) can be calculated using the formula:
EOQ = sqrt((2 * Annual Demand * Order Cost) / Annual Holding Cost)
Given:
Annual Demand = 90 bags/week * 52 weeks = 4,680 bags
Order Cost = $54/order
Annual Holding Cost = 27% of $11.70 = $3.16/bag
Plugging in the values:
EOQ = sqrt((2 * 4,680 * 54) / 3.16) ≈ 509.52
The EOQ is approximately 510 bags.
Average Time Between Orders = EOQ / Annual Demand
Average Time Between Orders = 510 bags / 4,680 bags/week ≈ 0.109 weeks
b. R (Reorder Point) can be calculated using the formula:
R = Lead Time Demand + Safety Stock
The desired cycle-service level is 80%, so the Z-score corresponding to that level can be found using a standard normal distribution table. Let's assume it is 1.28.
Standard Deviation of Weekly Demand = 15 bags
Lead Time Demand = Weekly Demand * Lead Time = 90 bags/week * 3 weeks = 270 bags
Plugging in the values:
Safety Stock = 1.28 * 15 bags ≈ 19.2 bags
R = 270 bags + 19 bags ≈ 289 bags
c.
Current Inventory Level = On-Hand Inventory + Open Orders - Backorders
Current Inventory Level = 320 bags + 0 bags - 10 bags = 310 bags
If the current inventory level falls below the reorder point (R), it is time to reorder. In this case, 310 bags < 289 bags, so it is not yet time to reorder.
d. we can use the following formulas:
Annual Holding Cost = (Q / 2) * Holding Cost per bag
Annual Ordering Cost = (Annual Demand / Q) * Order Cost
Plugging in the values:
Annual Holding Cost = (500 / 2) * $3.16/bag = $790
Annual Ordering Cost = (4,680 / 500) * $54/order ≈ $504.48
calculated by finding the difference in annual holding and ordering costs.
Annual Cost Savings = Annual Holding Cost (500-bag lot size) - Annual Holding Cost (EOQ) + Annual Ordering Cost (500-bag lot size) - Annual Ordering Cost (EOQ)
Substituting the values:
Annual Cost Savings = $
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$9000 coupon bond with a $400 coupon payment every year for 5 years has a coupon rate of A) 5 percent B) 8 percent C) 9 percent D) 4.4 percent
The coupon rate for a $9000 coupon bond with a $400 coupon payment every year for 5 years is D) 4.4 percent.
A coupon rate refers to the annual interest rate paid to a bondholder by a bond's issuer. It's the interest rate paid on a bond's face value in the form of an annual interest payment.
The formula for calculating the coupon rate is as follows:
Interest payment (coupon payment) every year / Bond's face value
The coupon rate of a $9000 coupon bond with a $400 coupon payment every year for 5 years is calculated as follows:
Interest payment (coupon payment) every year = $400
Bond's face value = $9000
The formula for calculating the coupon rate is:
Coupon rate = Annual coupon payment / Bond face value
Coupon rate = $400 / $9000Coupon rate = 0.044 or 4.4 percent
Therefore, the coupon rate for a $9000 coupon bond with a $400 coupon payment every year for 5 years is 4.4 percent.
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Once the following equation is balanced with the smallest set of whole number coefficients, what is the sum of the coefficients? (Don't forget to include coefficients of one.) Al + H2SO4 Al2(SO4)3 + --- H2 - 5 9 12 6 3
First, we need to balance the equation to get the correct coefficients. The balanced equation is given below.2Al + 3H2SO4 → Al2(SO4)3 + 3H2.
Now, we can see that the sum of the coefficients is 2 + 3 + 1 + 3 = 9.Therefore, the main answer to the given question is 9. Balancing chemical equations is a very crucial and fundamental concept in chemistry. It is necessary for a chemical equation to be balanced to fulfill the law of conservation of mass. Balancing an equation refers to the process of adjusting the coefficients of the reactants and products so that the number of atoms in the reactants is equal to the number of atoms in the products. The coefficients used in balancing the equation should be in the smallest possible whole number ratio.
The equation given in the question is not balanced. To balance this equation, we first need to count the number of atoms on both sides of the equation. The reactants are Al and H2SO4, whereas the products are Al2(SO4)3 and H2. The number of atoms of each element on both sides of the equation are as follows: Reactants: Al: 1, H: 2, S: 4, O: 4Products: Al: 2, S: 3, O: 12, H: 6We can see that the number of atoms of Al, S, and O is not equal on both sides. Therefore, we need to balance these atoms by adjusting the coefficients. To balance the Al, we need to put a coefficient of 2 before Al on the reactant side. This gives us 2 Al.
To balance the S and O atoms, we can put a coefficient of 3 before H2SO4 and 1 before Al2(SO4)3. This gives us 3H2SO4 and Al2(SO4)3. Finally, to balance the H atoms, we put a coefficient of 3 before H2 and 3 before H2SO4. This gives us 3H2 and 3H2SO4.The balanced equation is:2Al + 3H2SO4 → Al2(SO4)3 + 3H2The sum of the coefficients in this equation is 2 + 3 + 1 + 3 = 9. Therefore, the answer to the given question is 9.
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a firm that chooses strategy a, as portrayed in chapter 29, should plan to
Chapter 29 of the book, "Principles of Marketing" by Philip Kotler, presents different strategic options that a firm can choose to achieve its objectives. Specifically, the chapter provides a detailed description of the marketing mix and its different components. Among other things, it discusses how product, price, promotion, and distribution decisions can be used to create a competitive advantage for the company.
A firm that chooses strategy A, as portrayed in chapter 29, should plan to implement a strategy that focuses on achieving a competitive advantage through differentiation. The differentiation strategy is based on creating a unique product or service that offers customers a superior value proposition. By providing a differentiated product, the firm can attract customers who are willing to pay a premium price for the extra features or benefits that are not available from competitors.
Moreover, this strategy also allows firms to reduce price sensitivity and increase customer loyalty, which can lead to higher profits and market share over time.
However, differentiation strategy requires significant investment in research and development, marketing, and branding, which can be expensive and risky for small or new firms.
Therefore, firms that choose strategy A should be prepared to commit the necessary resources and capabilities to execute the strategy effectively.
In conclusion, a firm that chooses strategy A, as portrayed in chapter 29, should focus on differentiation by providing a unique product or service that offers customers superior value. While this strategy can be lucrative, it requires significant investment and commitment to execute effectively.
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4. Netflix's top managers decided to restructure the organization and required immediate implementation. According to the management of the change process, this type of implementation is called ......
The management of change process that is required to immediately implement restructuring within an organization, such as in the case of Netflix's top managers, is called Fast Change.
Fast Change refers to the quick implementation of a management change process, where the process is put into action without the standard delays and proper protocol for change implementation. This process is usually implemented in a crisis or an urgent situation requiring immediate change or action. In Fast Change, the management can decide to make swift changes and may choose to ignore resistance to change from their employees, as the changes have to be put into action urgently. This type of change process can be very disruptive to an organization and may lead to disengagement, low productivity, and confusion if not managed effectively. Therefore, a well-planned strategy is required to ensure that the process is efficient and that employees are well informed about the changes to avoid any misunderstandings.
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Teague Company's working capital was $96,000 and total current liabilities were one-fifth of that amount. What was the current ratio? 4/6/1/5?
The current ratio of Teague Company can be calculated based on its working capital and total current liabilities.
The current ratio is a financial metric used to assess a company's ability to cover its short-term liabilities with its short-term assets. It is calculated by dividing the total current assets by the total current liabilities.
In this case, we are given that Teague Company's working capital is $96,000. Working capital is the difference between current assets and current liabilities. Since the total current liabilities are stated as one-fifth of the working capital, we can determine the value of the current liabilities.
Let's assume the total current liabilities to be "x." According to the given information, x = 1/5 * $96,000 = $19,200.
Now, we can calculate the current ratio using the formula:
Current Ratio = Total Current Assets / Total Current Liabilities
As we are not given the specific value of total current assets, we cannot calculate the current ratio accurately. Without information on the total current assets, we cannot determine whether the current ratio is 4/6/1/5.
Therefore, without additional information about the total current assets, we cannot determine the current ratio for Teague Company.
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Explain the concept of virtue ethics, as found in Chapter 3 of the text. How does this theory shape your understanding of what is considered ethical conduct in the business world? In particular, focus on the virtue theory of loyalty. How is this different than the duty of loyalty? Consider the whistle-blower’s actions in the cases "A Whistle-Blower Accepts a Deal" and "A Whistle-Blower's Quandary." In each, was the whistle-blower in compliance with the duty of loyalty? What about the virtue theory of loyalty? Why or why not?
Virtue Ethics is an approach to moral reasoning that concentrates on character development. It emphasizes the significance of moral principles in individuals' daily lives and focuses on the character traits that one must cultivate to become a good human being. It is founded on the notion that moral requirements can be met if a person cultivates the necessary virtues.
This concept shapes the perception of what ethical behavior is in the business world. In the business world, virtue ethics places an emphasis on character over specific duties or consequences. It is concerned with the kind of person one should be, and a good person possesses all the necessary virtues, such as integrity, honesty, and kindness. Virtue ethics has made an impact on organizational behavior by promoting the importance of developing character and virtues such as loyalty in business relationships.The duty of loyalty implies that a person's responsibility is to act in the best interests of their employer or organization. The virtue theory of loyalty, on the other hand, suggests that loyalty is a positive quality that can contribute to ethical conduct and personal growth.In the cases of "A Whistle-Blower Accepts a Deal" and "A Whistle-Blower's Quandary," the whistle-blower may not have been in compliance with the duty of loyalty but was in compliance with the virtue theory of loyalty. The whistle-blower was not in compliance with the duty of loyalty because the act of whistle-blowing implies that the whistle-blower is revealing sensitive information about their employer or organization. Such an act is against the employer's interests and is, therefore, a violation of the duty of loyalty.However, from the perspective of the virtue theory of loyalty, the whistle-blower's actions can be considered ethical. By exposing any illegal, unethical, or immoral behavior that is contrary to the public's interest, the whistle-blower is demonstrating the character trait of loyalty to the broader society. Therefore, the whistle-blower's actions can be viewed as being in compliance with the virtue theory of loyalty, despite being in violation of the duty of loyalty.
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(c) junior audit team member wonders if the overall audit
strategy and the audit plan would be fixed for the entire audit
engagement. Explain your view to him/her.
No, the overall audit strategy and the audit plan are not fixed for the entire audit engagement. They are subject to adjustments and changes based on new information, emerging risks, and changes in circumstances encountered during the audit process.
The junior audit team member that while the audit strategy offers a structure for audit engagement, the audit plan may change. The audit plan takes into account the client's business, industry, and inherent risks. The audit is guided by it. The audit plan, on the other hand, details the processes, timing, and resources needed to meet audit objectives. The auditor's risk assessment and knowledge of the client's internal controls and processes inform the audit plan. It's vital to note that the audit plan may change during the engagement. As the audit progresses, the auditor may uncover unanticipated concerns or changes in conditions that require plan revisions. The auditor can adjust to new facts or hazards during the audit with this flexibility.
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Please select the term that best completes each of the following sentences If you've experienced groups that were close and loyal and groups that weren't, you know how important cohesiveness performance. can be to group Your teacher asks you to complete a team project. The due date is in 5 weeks, but beyond that, you don't have details on the project deliverables. You are experiencing role ambiguity At The Martin Agency, employees dress casually on most days. But if a client or prospective client will be on site, professional dress is expected that is, except for the creative department. They only appear in jeans. This is an example of norm variation Please select the best answer from the choices provided. The programming team at Zynga has a low level of cohesiveness. What reason might explain this?
The programming team at Zynga has a low level of cohesiveness. The reason that might explain this is the lack of team spirit. Why is the lack of team spirit the reason behind the low level of cohesiveness? A cohesive group is one where all members are united in their objectives and have a high level of loyalty to one another.
It is tough to establish trust among team members if there is no team spirit. In a team with low cohesiveness, members may also avoid open and frank discussions of issues because they are afraid of conflict. This leads to increased stress and lower productivity. To increase cohesiveness, team-building activities, open communication, and fostering a sense of unity should be encouraged.
Why is the lack of team spirit the reason behind the low level of cohesiveness? A cohesive group is one where all members are united in their objectives and have a high level of loyalty to one another. It is tough to establish trust among team members if there is no team spirit. In a team with low cohesiveness, members may also avoid open and frank discussions of issues because they are afraid of conflict. This leads to increased stress and lower productivity.
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Which one of the following is used most frequently for
production employees as a form of goal setting?
1) Central tendency.
2) Halo effect.
3) Regency.
4) Work standards.
The most appropriate answer for the form of goal setting used most frequently for production employees is option 4) Work standards.
Work standards refer to established benchmarks or expectations for performance that are commonly used in production and operational environments. These standards define the desired level of output, quality, efficiency, or other performance metrics that employees are expected to achieve. They provide a clear target for employees to work towards and are frequently used as a form of goal setting in production settings.
Central tendency, halo effect, and recency are not directly related to goal setting methods. Central tendency refers to the tendency to rate employees' performance in the middle range, avoiding extreme ratings. The halo effect occurs when an employee's overall evaluation is influenced by a single positive characteristic or trait. Recency bias is the tendency to give more weight to recent events or performance rather than considering the entire evaluation period. These concepts are more related to performance appraisal or evaluation processes rather than goal setting specifically.
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Section A (40 Marks. Please answer all 1i-iv questions in this section. 1i) What is discretionary fiscal impulse? - (5 marks) ii) Assuming the UK economy taxes and government spending at equilibrium level of output for 2021 is each £10 trillion, use the cyclically adjusted budget deficit formula [G(ye) – T(ye) = [G(yd) – T(y)] – alye - y)] to work out questions ‘a to d' below. (Hint: T = taxes net of transfers; and alpha (a) = 1; consumption and investment are assumed unchanged): ii(a) Derive and explain the kind of budget implemented by the UK government and by how much if actual output generated is £18.0 trillion (show all workings) - (10 marks) ii(b) Derive and explain the kind of budget implemented by the UK government and by how much if actual output generated is £6.Otrillion (show all workings) – (10 marks) (iii) Using the debt dynamics equation: ∆b = d + (r – Yy)b, discuss three options available to the government to balance the question 'ii(b) economy: (12 marks; i.e., 4 marks each) (iv) what is the least painful option in the answer you gave for question 'iii', and why? - (3 marks)
Discretionary fiscal impulse is the use of deliberate changes in taxation, government spending, or transfer payments to influence the direction of the economy.
ii(a)Derive and explain the kind of budget implemented by the UK government and by how much if actual output generated is £18.0 trillion (show all workings):
Cyclically adjusted budget deficit formula is given as: [G(ye) – T(ye) = [G(yd) – T(y)] – alye - y)]
Here,T(ye) = Taxes net of transfers = 10 trillion
Alpha (a) = 1
Consumption and investment are assumed to be unchanged
Y(e) = Ye = 10 trillion
Output generated = 18 trillion
Therefore,G(ye) = [G(yd) – T(y)] – alye - y] + T(ye) = [10-(18-y)]-10+(1*10)-y= -y-8 trillion
This is the budget deficit for the given output level. Since the budget deficit is negative, this implies that there is a budget surplus of 8 trillion by the UK government.
ii(b)Derive and explain the kind of budget implemented by the UK government and by how much if actual output generated is £6.Otrillion (show all workings):
Cyclically adjusted budget deficit formula is given as: [G(ye) – T(ye) = [G(yd) – T(y)] – alye - y)]Here,T(ye) = Taxes net of transfers = 10 trillion
Alpha (a) = 1
Consumption and investment are assumed to be unchanged
Y(e) = Ye = 10 trillion
Output generated = 6 trillion
Therefore,G(ye) = [G(yd) – T(y)] – alye - y] + T(ye) = [10-(6-y)]-10+(1*10)-y= -y+6 trillion
This is the budget surplus for the given output level. Since the budget surplus is positive, this implies that there is a budget deficit of 6 trillion by the UK government.
(iii)Three options available to the government to balance the question 'ii(b) economy are:
Government can increase taxes to balance the economy. It would be painful for the people of the country and would hurt the economic growth of the country. Government can reduce government spending to balance the economy. It would lead to lower investment by the government in the country, but would be less painful for people in the short term. Government can increase the supply of money in the economy. It would lead to inflation and be painful for people in the long term. (iv)The least painful option in the answer given for question 'iii' is to reduce government spending. It would lead to lower investment by the government in the country, but would be less painful for people in the short term. It would not hurt the economic growth of the country in the long term.
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Build a three-step CRR stock price tree using the following information: • maturity: 3 months, i.e. each step is one month annual volatility of the stock: 0.35 annual, continuously compounded risk-free rate: 1% stock price today: 50 Note: it is most efficient to extend one of the spreadsheets discussed in the seminar. (a) What is the risk-neutral probability in the tree? Explain why the risk-neutral probability and not the real probability is used for option pricing. [5 marks] (b) Calculate the price of an American put option with strike K = 50. [10 marks]
The three-step Cox-Ross-Rubinstein (CRR) stock price tree can be constructed using the provided information. Each step in the tree represents one month, and the maturity is 3 months. The annual volatility of the stock is 0.35, and the continuously compounded risk-free rate is 1%. The current stock price is 50.
(a) To calculate the risk-neutral probability in the tree, we can use the following formula:
u = e^(σ√(Δt)), where σ is the annual volatility, Δt is the time step length (in years), and e is the exponential function.
d = 1/u
p = (e^(rΔt) - d) / (u - d), where r is the risk-free rate.
Plugging in the given values, we find that u = e^(0.35√(1/12)) ≈ 1.0308, d = 1/u ≈ 0.9706, and p = (e^(0.01*(1/12)) - 0.9706) / (1.0308 - 0.9706) ≈ 0.5019.
The risk-neutral probability, p, is used for option pricing instead of the real probability because it allows us to value options based on an assumption that the market is risk-neutral. This assumption simplifies the pricing process and makes it consistent with the principle of no arbitrage. Under the risk-neutral probability, the expected return on the option is equal to the risk-free rate. Therefore, by discounting the expected future payoffs at the risk-free rate, we can determine the fair price of the option.
(b) To calculate the price of an American put option with a strike price (K) of 50, we need to traverse the CRR tree and determine the option values at each node. At each node, we compare the intrinsic value of the put option (K - stock price) with the expected future discounted value of the option. If the intrinsic value is higher, we choose to exercise the option; otherwise, we consider the expected discounted value.
Starting at the final nodes of the tree (time step 3), the intrinsic value of the put option is max(50 - stock price, 0) at each node. Moving backward in the tree, we calculate the expected discounted value of the option at each node using the risk-neutral probability.
By applying this process, we can calculate the option price at the initial node (time step 0), which represents the fair price of the American put option.
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