ABC stockbroker offers investors financing to buy stocks with the following requirements:
- Initial margin
- Minimum margin
- Interest rate
- If subjected to a margin call, the investor must deposit some fund to repay part of his
debt and return the position to initial margin.
You buy 100,000 XYZ stocks at the price of Rp 5,000/stock using the margin facility.
a) At what price are you subjected to a margin call?
b) If XYZ stock price drops to Rp 2,500, how much Rp margin do you have to deposit?
c) How much return do you earn if in the next month the stock price is Rp 4,500, and you sell
all your stocks and pay out your debt and its interest?

Answers

Answer 1

When buying 100,000 XYZ stocks at Rp 5,000/stock using a margin facility, certain requirements and conditions apply, such as initial margin, minimum margin, and interest rate. To determine the margin call price, the minimum margin level must be calculated.

If the stock price drops to Rp 2,500, the amount of margin to be deposited can be determined. If the stock price rises to Rp 4,500 in the next month and all stocks are sold to repay the debt and interest, the return can be calculated by considering the initial investment, interest expenses, and the selling price of the stocks.

a) To determine the price at which a margin call is triggered, we need to calculate the minimum margin level. The initial margin is the percentage of the total investment that the investor must initially provide. The minimum margin is a lower threshold below which the equity in the account should not fall. Let's assume the initial margin requirement is 60% and the minimum margin requirement is 40%. The total investment is calculated as 100,000 stocks multiplied by Rp 5,000 per stock. The initial margin is 60% of the total investment, and the minimum margin is 40% of the total investment. The margin call price occurs when the equity in the account falls below the minimum margin level.

b) If the XYZ stock price drops to Rp 2,500, the equity in the account decreases. To calculate the required margin deposit, we need to determine the equity level and compare it to the minimum margin level. The equity is calculated as the market value of the stocks minus the outstanding debt. If the equity falls below the minimum margin level, the investor needs to deposit additional funds to restore the equity to the initial margin level. The required margin deposit can be calculated as the difference between the desired equity and the current equity.

By considering these calculations and requirements, investors can assess the potential margin call price, the margin deposit required in case of a stock price drop, and the potential return if the stock price increases and the stocks are sold to repay the debt and interest. It is important for investors to carefully evaluate these factors and assess the risks and costs associated with using margin facilities.

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Related Questions

2. Sultan Plastic company makes plastic buckets. An analysis of their accounting reveals: Variable cost per bucket- Rs 20 Fixed cost- Rs 50000 for the year Capacity - 2000 buckets Selling price per bu

Answers

The Sultan Plastic company can produce 2000 buckets, and the fixed cost is Rs 50000 for the year. The variable cost per bucket is Rs 20. The total cost of producing 2000 buckets is Rs 90000. So, the company's breakeven point is 2000 buckets at a price of Rs 70.

Sultan Plastic Company makes plastic buckets and has some accounting data. It can produce 2000 buckets per year. The variable cost per bucket is Rs 20. So, the total variable cost for producing 2000 buckets is 2000 x Rs 20 = Rs 40000. The fixed cost of the company is Rs 50000 per year. Therefore, the total cost of producing 2000 buckets will be Rs 90000 (Rs 40000 variable cost + Rs 50000 fixed cost). The selling price of the bucket is Rs 70. So, the revenue generated by selling 2000 buckets is Rs 140000 (2000 x Rs 70). To calculate the breakeven point of the company, we need to find out the number of buckets the company needs to sell to cover the total cost. Breakeven point (in units) = Total fixed cost / Contribution per unit. Here, Contribution per unit = Selling price per unit - Variable cost per unit. Contribution per unit = Rs 70 - Rs 20 = Rs 50. So, the breakeven point of the company is 2000 buckets (Rs 50000 / Rs 50). Hence, the company's breakeven point is 2000 buckets at a price of Rs 70.

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Each of the following is the headline from a recent news story. Which of these violations would not be covered by the For Labor Standards Act! • Noll Rattant was found pulty of Baling to pay the federal minimum wage of $7.25 per hour for all the hours the employees worked • Walmart was found guilty of overtime violations when the employer failed to necond or pay for all of the hours that some employees worked Chipotle Maican Gwas fined over accusations that it routinely voted Marsachusetts child labor laws • The California Department of Industrial Relations cited a retail business in Lawndale for failing to secure were compensation ice for its employees .

Answers

Among the following violations, the one that would not be covered by the Fair Labor Standards Act is the violation by Chipotle Mexican Grill of Massachusetts child labor laws.

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. It covers most employees, except for those in managerial or professional positions.In the given news headlines, Noll Rattant was found guilty of failing to pay the federal minimum wage to his employees. Walmart was found guilty of violating overtime regulations.

The California Department of Industrial Relations fined a retail business in Lawndale for failing to secure workers’ compensation insurance for its employees.Chipotle Mexican Grill, on the other hand, was fined for violating Massachusetts child labor laws. Therefore, this violation would not be covered by the FLSA.

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the entry made by ivanhoe company on january 1 to record the proceeds and issuance of the note is

Answers

The entry made by Ivanhoe Company on January 1 to record the proceeds and issuance of the note is as follows:

Debit: Cash (for the amount of the proceeds of the note)

Credit: Notes Payable (for the face value of the note)

Credit: Discount on Notes Payable (for the difference between the cash received and the face value of the note)The entry is made to record the fact that Ivanhoe Company has received cash in exchange for issuing a note payable.

When a company issues a note payable, it is essentially borrowing money and promising to pay it back at a later date. In this case, the face value of the note represents the amount that the company has borrowed, while the cash received represents the amount that the company has actually received.

The discount on notes payable represents the difference between these two amounts. When the note is repaid, the following entry will be made:Debit: Notes Payable (for the face value of the note) Debit: Discount on Notes Payable (for the amount of the discount that has not yet been amortized)Credit: Interest Expense (for the amount of interest that has accrued on the note)Credit: Cash (for the amount of cash paid to retire the note)Note that the discount on notes payable is treated as a contra-liability account and is gradually amortized over the life of the note.

This means that the discount will be reduced by a certain amount each year until it reaches zero at the time the note is repaid.

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Business Sim Corporation (BSC) entered into the following four transactions: (a) Issued 1,000 common shares to Kelly in exchange for $15,000. (b) Borrowed $36,000 from the bank, promising to repay it

Answers

(a) Issued 1,000 common shares to Kelly in exchange for $15,000: This transaction represents an equity financing activity where Business Sim Corporation issued 1,000 common shares to Kelly in exchange for $15,000 cash. As a result, the company's common stock would increase by 1,000 shares, and the cash balance would increase by $15,000.

(b) Borrowed $36,000 from the bank, promising to repay it: This transaction represents a liability financing activity where Business Sim Corporation borrowed $36,000 from the bank. The company would increase its cash balance by $36,000, and at the same time, it would create a liability for the borrowed amount, which would be recorded as a loan payable.

(c) Purchased equipment for $25,000, paying $5,000 in cash and signing a note payable for the remaining $20,000: This transaction represents an investment activity where Business Sim Corporation acquired equipment for $25,000. The company would decrease its cash balance by $5,000 (paid in cash) and increase the equipment asset by $25,000. Additionally, the company would create a liability of $20,000 by signing a note payable to cover the remaining balance.

(d) Received $10,000 in advance from a customer for services to be provided in the future: This transaction represents a revenue recognition activity where Business Sim Corporation received $10,000 in advance from a customer. The company would increase its cash balance by $10,000, and at the same time, create a liability called unearned revenue to represent the obligation to provide the services in the future.

It is important to note that these transactions impact different aspects of the company's financial statements, including the balance sheet, income statement, and statement of cash flows.

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If your external reinvestment rate is 4.50%, determine the external rate of return for the investment opportunity summarized below. Time Amount 0 You pay 10,000 pesos Year CHEGGSTYY THIS of each year ESTION You received 63,000 pesos at the end End of Year 9 You pay 225,000 pesos Years 11-19 You receive 85,000 pesos at the end of each year End of Year 21 You pay 50,000 pesos End of Year 24 You receive 175,000 pesos.

Answers

To determine the external rate of return for the investment opportunity, we need to calculate the present value of cash inflows and outflows at a discount rate of 4.50%.

To calculate the external rate of return, we need to discount the cash flows to their present values and equate the sum of present values to the initial payment. The discount rate is given as 4.50%.

The cash flows can be summarized as follows:

Time 0: You pay 10,000 pesos (outflow)

End of Year 9: You receive 63,000 pesos (inflow)

End of Year 11-19: You receive 85,000 pesos each year (inflow)

End of Year 21: You pay 50,000 pesos (outflow)

End of Year 24: You receive 175,000 pesos (inflow)

To calculate the present value of each cash flow, we use the discount rate of 4.50%. Once we have the present value of each cash flow, we sum them up.

By comparing the sum of the present values with the initial payment of 10,000 pesos, we can determine if the investment opportunity provides a positive or negative external rate of return. If the sum is higher than the initial payment, the external rate of return is positive, indicating a profitable investment. If the sum is lower, the external rate of return is negative, indicating a loss.

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A bank offers a personal loan at the nominal interest rate of 15.00% per year.
a) What is the effective interest rate if interest is compounded monthly (show interest rate to two places of decimal)?
b) What is the effective interest rate if interest is compounded continuously (show interest rate to two places of decimal)?

Answers

The effective interest rate, when interest is compounded monthly, is approximately 16.

a) to calculate the effective interest rate when interest is compounded monthly, we can use the formula:

effective interest rate = (1 + (nominal interest rate / n))ⁿ - 1

where "n" is the number of compounding periods per year.

in this case, the nominal interest rate is 15.00% per year, which can be expressed as 0.15. since interest is compounded monthly, there are 12 compounding periods in a year.

plugging these values into the formula:

effective interest rate = (1 + (0.15 / 12))¹² - 1                       = (1 + 0.0125)¹² - 1

                      ≈ 0.1646 or 16.46% 46%.

b) when interest is compounded continuously, the formula to calculate the effective interest rate is:

effective interest rate = e⁽- 1

where "e" is the mathematical constant approximately equal to 2.71828.

using the nominal interest rate of 15.00% per year (0.15):

effective interest rate = e⁽⁰.¹⁵⁾ - 1                       ≈ 0.1618 or 16.18%

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as intensity increases, in which order are fibers recruited?

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As the intensity of muscle contractions increase, motor units (which consist of a single motor neuron and all the muscle fibers it innervates) are recruited in a specific order:

Slow-twitch (Type I) fibers: These slow-contracting fibers are recruited first and are used for light activities such as walking or standing.

Fast-twitch oxidative-glycolytic (Type IIa) fibers: These fibers are recruited next and have a moderate contraction speed and use both aerobic and anaerobic metabolism to generate energy. They are used for activities such as jogging or cycling.

Fast-twitch glycolytic (Type IIb/x) fibers: These fast-contracting fibers are recruited last and rely solely on anaerobic metabolism to generate energy. They are used for high-intensity activities such as sprinting or weightlifting.

The recruitment order is based on the size principle, which states that smaller motor units (with fewer muscle fibers) are recruited first before larger motor units (with more muscle fibers). This allows for fine control of movements at low intensities, while higher intensities require more forceful contractions from larger motor units.

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​ (Solving for
i​)
At what annual interest​ rate, compounded​ annually, would
​$480
have to be invested for it to grow to
​$1 comma 949.43
in
11
​years?

Answers

annual interest rate compounded annually for $480 to grow to $1,949.43 in 11 years is approximately 14.19%.

solve for the annual interest rate (i), we'll use the compound interest formula:
A = P(1 + i)^n
Where:
A = final amount ($1,949.43)
P = initial investment ($480)
i = annual interest rate (unknown)
n = number of years (11)
We'll  the formula to solve for i:
i = (A/P)^(1/n) - 1
Substitute  given values:
i = (1,949.43/480)^(1/11) - 1
i ≈ 0.1419 or 14.19%

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According to traditional Economics analysis,
Group of answer choices
human wants are finite
human wants are unlimited
human wants and resources are unlimited
resources are unlimited

Answers

Answer:

According to traditional economics analysis, the correct statement is:

b. Human wants are unlimited.

Explanation:

In traditional economics, it is assumed that human wants and desires for goods and services are unlimited or insatiable. This means that individuals always have more wants and can always desire additional goods and services, regardless of their current level of satisfaction or the availability of resources. The concept of unlimited wants is a fundamental assumption in economics and forms the basis for understanding consumer behavior, demand, and the allocation of resources.

The study of economics involves looking at "unlimited wants and limited resources ", which is why it is also a study of choices and how people make decisions.

Marginal costs refer to the additional cost incurred by producing or consuming one more unit of a good or service. It helps in determining the optimal level of production or consumption by comparing the additional benefit (marginal benefit) with the additional cost (marginal cost).

Average costs, on the other hand, provide an average measure of cost per unit of output. It is calculated by dividing the total cost by the quantity produced. Average costs help in assessing the efficiency and profitability of production processes.

Sunk costs, which are costs that have already been incurred and cannot be recovered, are generally not relevant to current economic decision making in traditional analysis. Only considering sunk costs can lead to irrational decision making as they are irrelevant to the current situation and cannot be changed.

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Krypton Ltd.'s budgeted information relating to the manufacture of two of its products is presented below: Usage Activity Cost Driver Product A Product B Setup $57,650 # of batches 27 12 Machine # of machine $89,100 6,750 11,250 Maintenance hours Direct labour cost $12/hour $360,000 $529,500 Direct materials $128,700 $91,850 10,500 units of product A were produced. What is the cost per unit of Product A using Activity Based Costing? Input your answer as a number with two decimal places (for example, 12.34).

Answers

According to the information given, the cost per unit of Product A using Activity Based Costing can be calculated as follows-

Calculation of Activity Rate: Activity Cost Driver Total Cost Total Activity Activity Rate Setup Number of batches $57,650 27 + 12 1,850Machine Number of machines $89,100 6,750 + 11,250 3.16Maintenance hours Direct Labour cost $360,000 $529,500 10,000 36 52.95Calculation of Cost per unit of Product A:Activity Cost Driver Product A Total Activity Cost Setup Number of batches 27 $31,450Machine Number of machines 6,750 $21,300Maintenance hours Direct labour cost 360 $19,062Direct materials 128,700Total cost per unit of Product A $200,512.

Therefore, the cost per unit of Product A using Activity Based Costing is $200.51 (answer more than 100 words).In conclusion, Activity-Based Costing is a more sophisticated system of costing, which aims to more accurately allocate overheads to the goods or services that are causing them. This system of costing uses activity rates to allocate the overheads to the product by determining the cost drivers.

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Analyse how the S-C-P approach predicts performance (welfare) based on market structure and explain fully how this concept can be used by firms. Use relevant and applied examples in support of your answer.

Answers

The Structure-Conduct-Performance (S-C-P) approach is an economic framework that analyzes the relationship between market structure, firm conduct, and performance outcomes.

According to this approach, the characteristics of a market structure influence the behavior of firms operating within it, which ultimately determines their performance and welfare outcomes.

The S-C-P approach predicts that different market structures will lead to varying levels of firm conduct, competition, and ultimately, performance. It suggests that in more concentrated market structures, where there are fewer firms and barriers to entry are high, firms have greater market power. This allows them to engage in behavior such as price-setting, collusion, or strategic actions to limit competition.

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If you invest $15,000 today, an investment guarantees that 24 years from today you will have $54,750. What annual rate of interest will you earn? Multiple Choice O O O O 5.25% 5.93% 5.68% 5.54% 5.71%

Answers

To determine the annual rate of interest you will earn on the investment, we can use the formula for compound interest:

Future Value = Present Value × (1 + r)^n

Where:

Future Value = $54,750 (the guaranteed amount after 24 years)

Present Value = $15,000 (the initial investment)

r = Annual interest rate

n = Number of years

Rearranging the formula to solve for the interest rate (r):

r = (Future Value / Present Value)^(1/n) - 1

Plugging in the values:

r = ($54,750 / $15,000)^(1/24) - 1

Calculating this expression, the annual rate of interest you will earn is approximately 5.25%.

Therefore, the correct answer is 5.25%.

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After the involution of the corpus luteum, the inactive bit of scar tissue that remains is known as which of the following? O Corpus albicans Corpus callosum Corpus cavernosum O Corpus spongiosum

Answers

After ovulation, the corpus luteum forms in the ovary and plays a crucial role in the reproductive cycle.

The corpus luteum produces hormones, primarily progesterone, which prepares the uterus for potential implantation of a fertilized egg. However, if fertilization does not occur, the corpus luteum undergoes involution and regresses.

During the process of involution, the corpus luteum gradually shrinks and transforms into inactive scar tissue known as the "Corpus albicans." The Corpus albicans appears as a whitish, fibrous structure in the ovary. It represents the remnants of the degenerated corpus luteum.

The Corpus albicans has no functional role in the reproductive process and does not produce hormones like the corpus luteum. It is essentially an inactive structure that persists in the ovary until it eventually dissolves or is absorbed by the surrounding tissues.

The transformation from the active corpus luteum to the inactive Corpus albicans is a natural part of the ovarian cycle and marks the end of the reproductive phase for that particular cycle.

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4-4 If the university's College of Engineering can earn 5% on its investments, how much should be in its savings account to fund one $10,000 scholarship each year for 4 years?

Answers

The university's College of Engineering should have $36,315.79 in its savings account to fund one $10,000 scholarship each year for 4 years.

To determine the amount needed in the savings account, we can use the concept of present value. Each year, the college needs $10,000 to fund the scholarship, and this amount will be paid for 4 years. We need to find the present value of these future cash flows at a 5% interest rate.

Using the formula for the present value of an annuity, we can calculate the present value of the scholarship payments:

PV = [tex]PMT \times \left(1 - (1 + r)^{-n}\right) / r[/tex]

where PV is the present value, PMT is the payment amount, r is the interest rate, and n is the number of periods.

Plugging in the values, we get:

PV = $10,000 x [tex](1 - (1 + 0.05)^{-4})[/tex]/ 0.05

  = $10,000 x (1 - 0.8227) / 0.05

  = $10,000 x 0.1773 / 0.05

  = $1773 x 200

  = $36,315.79

Therefore, the university's College of Engineering should have $36,315.79 in its savings account to fund one $10,000 scholarship each year for 4 years, assuming a 5% return on investments.

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QUESTION 43 is defined as the line of authority in an organization that links all employees and shows who reports to whom. Horizontal differentiation Vertical differentiation Chain of command Task specialization QUESTION 44 According to Vroom, which decision-making style strikes a balance by allowing both managers and subordinates to have some control of the process? consult the group delegative autocratic consult individually QUESTION 45 Which of the following one of the demographic trends in the United States related to sex? The gap in labor force participation for men and women has narrowed. Men are still graduating from college at a higher rate than women. Women now earn the same as men. The labor participation rates of women have now surpassed that of men. QUESTIO 46 Which of the following represents a demographic trend in the United States related to race and ethnicity? There are no significant demographic changes related to race or ethnicity occurring. There is a significant decrease in the percentage of foreign-born workers. There is a significant decrease in the percentage of the majority white population. Baby Boomers are the most racially diverse generational group. QUESTION 47 theory. The principle that suggests all those affected by organizations have right to participate in directing their actions is known as stakeholder corporate social responsibility ethical leadership cognitive moral development QUESTION 48 Beliefs we have about a group of people that are generalized to individual members of that group are known as: stereotypes. crossovers. spillovers. confirmation bias. QUESTION 49 Organizational decisions involving strategy focus on: the big picture. personnel issues. daily procedures. minor problems.

Answers

Organizational decisions involving strategy focus on the big picture. These decisions are important for the long-term success of the organization and help to define the overall direction and goals of the organization.

Question 43 is defined as the line of authority in an organization that links all employees and shows who reports to whom is the chain of command. The chain of command is an aspect of organizational structure that refers to a formal line of authority and communication that helps to define roles and responsibilities within an organization. In this system, each employee is accountable to a higher authority. Horizontal differentiation refers to the separation of employees into groups based on function, while vertical differentiation is the separation of employees into groups based on rank. Task specialization refers to the process of dividing work into smaller, more specialized tasks.Question 44According to Vroom, the decision-making style that strikes a balance by allowing both managers and subordinates to have some control of the process is the consultative decision-making style. In this style, the manager gathers information from subordinates before making the final decision.Question 45One of the demographic trends in the United States related to sex is that the gap in labor force participation for men and women has narrowed. In recent decades, more women have entered the workforce, and as a result, the gap between male and female labor force participation has narrowed.Question 46A demographic trend in the United States related to race and ethnicity is that there is a significant decrease in the percentage of the majority white population. As the country becomes more diverse, the proportion of white Americans is decreasing, while the proportion of other ethnic and racial groups is increasing.Question 47The principle that suggests all those affected by organizations have the right to participate in directing their actions is known as stakeholder theory.Question 48Beliefs we have about a group of people that are generalized to individual members of that group are known as stereotypes. Stereotypes can be harmful and are often based on inaccurate or incomplete information.Question 49Organizational decisions involving strategy focus on the big picture. These decisions are important for the long-term success of the organization and help to define the overall direction and goals of the organization.

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Suppose the economy has slipped into a recession. What potential policy change(s) would Keynes suggest to counteract the recession?
a
Decreased government spending due to decreased government revenue from taxes.
b
Decreased interest rates to offset a decrease in Aggregate Demand.
c
Increased government spending to offset a decrease in Aggregate Demand.
d
Increased interest rates to offset losses to banks.

Answers

In case the economy enters a recession, Keynesian economists would suggest increasing government spending to make up for the decline in aggregate demand.

In the absence of any actions, the economy can enter a recessionary period, which is characterized by a decrease in economic activity, higher unemployment rates, and a decline in demand for products and services. In such a scenario, the government must take measures to prevent the economy from entering a recession.Therefore, option c, Increased government spending to offset a decrease in Aggregate Demand would be the most relevant policy change that Keynes would recommend to counteract the recession. The Keynesian theory recommends that the government should increase spending during recessions to boost demand for goods and services. The increased government spending can also lead to an increase in employment rates, which can further stimulate the economy.Keynes believed that the government had a critical role to play in ensuring that the economy was stable. When the economy is in a recessionary phase, Keynes suggested that the government should reduce taxes and increase spending to boost aggregate demand. This approach is based on the assumption that during periods of recession, individuals and businesses have a lower propensity to consume. Therefore, by increasing government spending, Keynes believed that the government could provide the necessary stimulus to the economy to prevent it from falling into a deeper recession.

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The general manager is recognizing the exceptionally good contribution of employee by choosing the best employee of the month and issuing a recognition certificate. Specify the source of power that this manager has?

Answers

The general manager in this scenario is exercising a form of reward power. Reward power is a type of interpersonal power that stems from an individual's ability to provide rewards or incentives to others. By selecting the best employee of the month and issuing a recognition certificate, the general manager is using their authority and discretion to acknowledge and reward exceptional performance.

Reward power is derived from the ability to offer positive consequences or rewards to individuals or groups. In this case, the general manager has the authority to choose the best employee of the month and provide a recognition certificate, which serves as a form of reward. This recognition and certificate can motivate employees and boost their morale, as it demonstrates that their efforts and contributions are valued by the organization.

Reward power can be an effective tool for managers to recognize and reinforce desired behaviors and performance within the workplace. It helps in promoting a positive work culture, encouraging employee engagement, and fostering a sense of achievement and motivation among employees.

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Exercise #1 (Write the complete procedure) Determine the future value of a $1,500 payment.
deposited in a savings account that pays 10% annual interest compounded quarterly for a period of 4 years.

Answers

We multiply the number of years by the number of times interest is compounded per year, which gives us 16 quarters. Plugging in these values, we can calculate the future value to be $2,236.50.

The future value of a $1,500 payment deposited in a savings account that pays 10% annual interest compounded quarterly for a period of 4 years is given below:First, we need to find the quarterly interest rate. We can use the formula:r = (1 + i/n)^(n/t) - 1where r is the quarterly interest rate, i is the annual interest rate (10%), n is the number of times interest is compounded per year (4), and t is the number of years (4).r = (1 + 0.1/4)^(4/4) - 1= (1 + 0.025)^1 - 1= 0.025 or 2.5%Next, we can use the formula for the future value of a lump sum:FV = PV x (1 + r)^nwhere FV is the future value, PV is the present value (in this case, $1,500), r is the quarterly interest rate (2.5%), and n is the number of quarters (4 x 4 = 16).FV = $1,500 x (1 + 0.025)^16FV = $1,500 x 1.491 = $2,236.50Therefore, the future value of a $1,500 payment deposited in a savings account that pays 10% annual interest compounded quarterly for a period of 4 years is $2,236.50. The process of determining the future value of a payment deposited in a savings account that pays annual interest compounded quarterly for a period of 4 years involves several steps. The first step is to calculate the quarterly interest rate using the formula r = (1 + i/n)^(n/t) - 1, where r is the quarterly interest rate, i is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, the annual interest rate is 10%, the number of times interest is compounded per year is 4, and the number of years is 4. Using these values, we can calculate the quarterly interest rate to be 2.5%. The second step is to use the formula FV = PV x (1 + r)^n to find the future value of the payment. In this formula, FV is the future value, PV is the present value (in this case, $1,500), r is the quarterly interest rate, and n is the number of quarters. To find the number of quarters, we multiply the number of years by the number of times interest is compounded per year, which gives us 16 quarters. Plugging in these values, we can calculate the future value to be $2,236.50.

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The table below shows the demand and marginal cost information for a monopolist with a constant marginal cost. larginal Revenue (dollara) Eginal Coat (dollars) Monopoly Market Price Quantity (dollars) Demanded 5220 0 200 30 180 60 160 90 140 120 120 150 100 180 $200 180 120 BO 40 0 $120 120 120 120 120 120 Instructions: Enter your answers as a whole number and the profit-maximizing quantity is a. For the monopolist, the profit-maximizing price is $ b For the monopolist, the allocatively efficient price is $ and the allocatively efficient quantity is

Answers

The profit-maximizing quantity for the monopolist is 60 units. The profit-maximizing price is $160. The allocative efficient price is $120, and the allocative efficient quantity is 120 units.

To determine the profit-maximizing quantity, the monopolist looks for the quantity where marginal revenue (MR) equals marginal cost (MC). In the given table, the MR and MC columns intersect at a quantity of 60 units. Hence, the profit-maximizing quantity for the monopolist is 60 The profit-maximizing price corresponds to the price at the profit-maximizing quantity. In this case, the price is $160 for a quantity of 60 units. Allocative efficiency occurs when resources are allocated in a way that maximizes overall social welfare. It happens when the price equals the marginal cost. From the table, the allocative efficient price is $120, where the quantity is also 120 units therefore, the profit-maximizing price for the monopolist is $160, the allocative efficient price is $120, and the allocative efficient quantity is 120 units.

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the promotion element of a marketing program can be subdivided into the areas of:

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The promotion element of a marketing program can be subdivided into four areas, known as the "promotional mix."

These are:

Advertising: Paid messages disseminated through various media like television, radio, print, outdoor, and digital to promote a product, service, or brand to a mass audience.

Sales promotion: Short-term incentives offered to customers to encourage purchases or other desired actions like discounts, coupons, contests, and giveaways.

Public relations: A strategic communication process that builds mutually beneficial relationships between an organization and its stakeholders by shaping the public perception of the brand through earned media coverage, events, sponsorships, and other non-paid promotional activities.

Personal selling: Direct communication between a salesperson and a potential customer to persuade them to buy a product or service, typically in a one-to-one interaction.

Each element of the promotional mix has its unique strengths and weaknesses and is suited for different types of products, target audiences, and marketing objectives. An effective promotional mix often involves using a combination of these elements to achieve maximum impact and reach.

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If the Fair Value Adjustment - Trading account for trading debt investments has a debit balance, it is___ Osubtracted from the Trading Debt Investment account to determine carrying value O considered to be a contra account O reported in the other income and expenses section of the income statement O added to the Trading Debt Investment account to determine carrying value

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If the Fair Value Adjustment - Trading account for trading debt investments has a debit balance, it is subtracted from the Trading Debt Investment account to determine the carrying value.

The Fair Value Adjustment - Trading account is used to record changes in the fair value of trading debt investments. The fair value represents the estimated market value of the investments at a given point in time. This account is adjusted periodically to reflect any changes in the fair value of the investments.

When the Fair Value Adjustment - Trading account has a debit balance, it means that the fair value of the trading debt investments has decreased. To determine the carrying value of the trading debt investments, the debit balance in the Fair Value Adjustment - Trading account is subtracted from the balance of the Trading Debt Investment account.

The carrying value represents the net amount at which the trading debt investments are reported on the balance sheet. By subtracting the debit balance in the Fair Value Adjustment - Trading account, the carrying value is adjusted downward to reflect the decrease in fair value.

It is important to note that the Fair Value Adjustment - Trading account is considered a contra account because it offsets the Trading Debt Investment account. A contra account is an account that is used to reduce the balance of another related account. In this case, the Fair Value Adjustment - Trading account is used to adjust the carrying value of the trading debt investments recorded in the Trading Debt Investment account.

The fair value adjustment is not reported in the other income and expenses section of the income statement. Instead, it is reflected in the carrying value of the trading debt investments on the balance sheet. The fair value adjustment is necessary to ensure that the investments are stated at their fair value, reflecting any changes in market conditions.

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the payment of cash dividends is an example of a(n)________.

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The payment of cash dividends is an example of a(n) distribution of corporate earnings. When a corporation distributes cash dividends, it implies that the business has generated sufficient revenue to cover all of its expenditures and has enough cash on hand to make the dividend payments.

In this scenario, cash dividends are commonly distributed by established and reputable firms that have been in operation for an extended period.

What is a dividend? A dividend is a distribution of a portion of a company's profits to its shareholders, typically paid out in cash or additional stock shares. Many corporations, particularly those with a proven track record of producing steady profits, provide dividends to their shareholders as a means of returning a portion of the profits earned during the year.

Generally, dividends are paid to shareholders quarterly, with the amount determined by the corporation's board of directors. The dividends paid to shareholders are also taxable as income for shareholders in the year in which they are paid or distributed. The payment of dividends is a sure sign of a company's financial stability, as it implies that the company has generated adequate revenue to cover its expenditures and still has a surplus of cash on hand.

In general, dividends are distributed to shareholders on a regular basis by reputable and established firms that have been in operation for an extended period. Dividends can take the form of cash or stock dividends.

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EN 04 Question: Consider the following Cost payoff table ($): $1 $2 $3 D₁ 11 8 13 D2 24 12 32 12 D3 34 23 What is the value (S) of best decision alternative under Regret criteria?

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To determine the value (S) of the best decision alternative under the Regret criteria, we calculate the maximum regret for each decision alternative by subtracting the payoffs from the maximum payoff in each column.

The decision alternative with the lowest maximum regret is considered the best alternative. In this case, the best decision alternative is D₂ with a maximum regret of $11.

The value (S) of the best decision alternative under the Regret criteria can be determined by calculating the maximum regret for each decision alternative and selecting the alternative with the minimum maximum regret.

To calculate the maximum regret, we compare the payoffs for each decision alternative to the maximum payoff in each column and subtract the payoffs from the maximum. Then, we select the highest value from these differences.

Looking at the given cost payoff table, we compare the payoffs in each column to find the maximum payoff: $3 in column 1, $23 in column 2, and $32 in column 3.

Next, we calculate the differences between the maximum payoffs and the payoffs for each decision alternative:

For decision alternative D₁:

Maximum regret for D₁ = Maximum payoff - Payoff for D₁ = $3 - $13 = -$10

For decision alternative D₂:

Maximum regret for D₂ = Maximum payoff - Payoff for D₂ = $23 - $12 = $11

For decision alternative D₃:

Maximum regret for D₃ = Maximum payoff - Payoff for D₃ = $32 - $34 = -$2

The decision alternative with the lowest maximum regret is D₂, with a maximum regret of $11. Therefore, the value (S) of the best decision alternative under the Regret criteria is $11.

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Will a company dividend payable be negative? In what situation
company dividend payable become negative? Thanks.

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A company dividend payable is not expected to be negative, as it represents the amount of money a company owes to its shareholders as a result of declaring a dividend.

However, there may be situations where the dividend payable can become negative. This may occur if a company declares a dividend but does not have enough funds to cover the payment, or if there is a mistake in the accounting system. In some cases, a negative dividend payable may occur due to changes in the company's financial position, such as a decrease in earnings or cash flow. In such situations, the company may need to reduce or suspend its dividend payments until its financial position improves. Overall, a negative dividend payable is not a desirable situation for any company, as it can impact the company's financial stability and reputation among investors.

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CORONADO COMPANY Income Statement For the Year Ended December 31, 2022 $18,675 6,225 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income Additional data: Y5 4 $242,500 175,200 67,300 24,900 42,400 2,700 39,700 7,940 $31,760 8.25 Net Income Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $25,960. 3. During the year, equipment was sold for $6,600 cash. This equipment originally cost $18,000 and had accumulated depreciation of $11,400 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account. $31,700 Presented here are the financial statements of Coronado Company. CORONADO COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $36,000 $21,000 Accounts receivable 32,700 18,900 Inventory 30,100 20,100 Property, plant, and equipment 59,600 77,600 Accumulated depreciation (29,400) (23,300) Total $114,300 Liabilities and Stockholders' Equity Accounts payable $ 16,800 Income taxes payable 8,400 Bonds payable 32,100 Common stock 13,400 Retained earnings 13.600 $129,000 $28,000 7,200 26,700 17,700 19.100. Prepare a statement of cash flows for Coronado Company using the direct method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) CORONADO COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Cash Receipts from Customers 31760 Less ✓cash payments: To Suppliers For Operating Expenses For Interest For Income Taxes 3700 Net Cash Provided by Operating Activities ✓ 35460 -1000 11200 -1200 $ CORONADO COMPANY Comparative Balance Sheets December 31 2022 $36,000 32,700 30,100 59,600 (29,400) $129,000 $2 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 7,200 26,700 17,700 49,400 $129,000 2021 $21,000 18,900 20,100 77,600 (23,300) $114,300 6,80 8,400 32,100 13,400 43,600 $114,300

Answers

CORONADO COMPANY Statement of Cash Flows

For the Year Ended December 31, 2022

Cash Flows from Operating Activities:

Cash Receipts from Customers $31,760

Less Cash Payments:

To Suppliers ($18,675)

For Operating Expenses ($6,225)

For Interest ($2,700)

For Income Taxes ($7,940)

Net Cash Provided by Operating Activities $ (4,780)

Cash Flows from Investing Activities:

Cash received from the sale of equipment $6,600

Net Cash Provided by Investing Activities $6,600

Cash Flows from Financing Activities:

Cash received from issuance of common stock $13,400

Cash paid for dividends ($25,960)

Net Cash Used in Financing Activities ($12,560)

Net Increase in Cash $ (10,740)

Cash at Beginning of Year $21,000

Cash at End of Year $10,260

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the contribution margin is select one: a. total sales minus total cost of goods sold.

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Therefore, the contribution margin cannot be defined as total sales minus total cost of goods sold. It is a more specific calculation that helps businesses understand how much of their sales revenue is available to cover fixed costs and generate profits.

The contribution margin is the amount of revenue remaining after deducting variable costs associated with producing a product or providing a service. It is calculated by subtracting the total variable costs from the total sales revenue. This means that the contribution margin only takes into account costs that vary based on production or sales volume, such as direct materials, direct labor, and variable overhead expenses. Fixed costs, such as rent and insurance, are not included in the calculation of contribution margin.

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The Law affects the five business forces; what are the five
business forces and explain how each has an effect on a
business.

Answers

The five business forces are the following:1. Competitive rivalry2. Bargaining power of buyers3. Bargaining power of suppliers4. Threat of new entrants5.

Threat of substitutesThe Law affects the five business forces and how each has an effect on a business:1. Competitive rivalry- When there are a significant number of competitors, the competitive rivalry increases, which puts pressure on the business to provide better prices, quality and services to attract more customers.2. Bargaining power of buyers- This is the level of control that customers have over the company. If the business only has a few customers that purchase a lot of the company’s products, the bargaining power of buyers can increase because they can dictate prices, quality, and delivery times.3. Bargaining power of suppliers- This is the level of control that suppliers have over the company. If there are only a few suppliers and the company relies heavily on their products or services, the bargaining power of suppliers can increase.4. Threat of new entrants- This occurs when new businesses enter the market, which increases competition and can lower profits for existing businesses.5. Threat of substitutes- This occurs when there are alternative products or services available, which can be a threat to existing businesses if customers switch to the substitute product or service.Thus, it can be concluded that the Law affects the five business forces and how each has an effect on a business.

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What kind of profit are we using in the long run behavior for
markets?

Answers

In the long run, profit in markets is typically measured in terms of economic profit. Economic profit considers both explicit and implicit costs, providing a more comprehensive measure of profitability.

Economic profit is a measure of the total revenue earned by a firm minus the total cost incurred, including both explicit costs (such as wages, rent, and materials) and implicit costs (such as the opportunity cost of the owner's time and capital).

It takes into account all costs associated with running a business. The formula for calculating economic profit is:

Economic Profit = Total Revenue - Total Cost

To calculate economic profit, you need to determine the total revenue and total cost of the business over a specific period. Total revenue is the sum of all the money earned from selling goods or services. Total cost includes all the expenses incurred in the production process.

For example, let's say a company's total revenue is $500,000 and its total cost is $400,000. The economic profit would be calculated as follows:

Economic Profit = $500,000 - $400,000 = $100,000

In the long run, businesses aim to maximize economic profit by optimizing their production and cost structures.  Economic profit considers both explicit and implicit costs, providing a more comprehensive measure of profitability.

By analyzing economic profit, firms can make informed decisions regarding resource allocation, pricing strategies, and overall business performance.

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Which assertion is most likely being tested when an auditor
traces transactions from the shipping log to the sales
journal?
a.
existence assertion
b.
valuation assertion
c.
completen

Answers

The assertion most likely being tested when an auditor traces transactions from the shipping log to the sales journal is the "completeness assertion."

The completeness assertion in auditing refers to ensuring that all transactions and events that should be recorded in the financial statements are actually included. By tracing transactions from the shipping log to the sales journal, the auditor is verifying that all sales transactions, as recorded in the shipping log, are properly recorded in the sales journal. This helps ensure that no sales are omitted or missed, thereby supporting the completeness assertion.

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In a time-series forecasting problem, if the seasonal indices for quarters 1, 2, and 3 are 0.80, 0.90, and 0.95 respectively. What can you say about the seasonal index of quarter 4?
a. Data is insufficient
b. Seasonality does not exist
c. It will be greater than 1
d. It will be less than 1
e. It will be equal to 1

Answers

Option c is Correct. It will be greater than 1. In a time-series forecasting problem, the seasonal index represents the average level of the time-series over a seasonal period.

If the seasonal indices for quarters 1, 2, and 3 are 0.80, 0.90, and 0.95 respectively, it indicates that the average level of the time-series is higher in the second and third quarters than in the first quarter.

Since the seasonal index for quarter 4 is not provided, we cannot determine whether it will be greater than 1 or not. However, based on the seasonal indices for quarters 1, 2, and 3, it is reasonable to assume that the seasonal index for quarter 4 will also be higher than 1, since the time-series is showing an upward trend in the second and third quarters.  

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