Answer: 14.28%
Explanation:
Effective Annual Rate is the rate that takes the periodic rates and converts it to an annual rate if compounding the periodic rate was taken into account.
The formula is;
EAR = (1 + r/m)^m - 1
Where;
r is the Annual nominal rate of interest and,
m is Number of compounding periods in a year
EAR = ( 1 + 13.8/2)² - 1
= 1.142761 - 1
= 0.142761
= 14.28%
Worldwide Logistics provides the following information: Operating income $ 1 comma 550 comma 000 Net sales $ 14 comma 000 comma 000 Average total assets $ 2 comma 000 comma 000 Management's target rate of return 30% What is the company's residual income?
Answer:
The company's residual income is $950,000.
Explanation:
Residual Income is calculated as Operating Income less Cost of Investment.
Calculation of Residual Income :
Operating income $1,550,000
Less Cost of Investment ($2,000,000 × 30%) ($600,000)
Residual Income $950,000
Conclusion :
The company's residual income is $950,000.
has 10 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.8 percent of par. What is the current yield on the bonds?
Answer:
4.62%
Explanation:
we need to calculate the yield to maturity of the bond:
YTM = [coupon + (face value - market value)/n] / [(face value + market value)/2]
coupon = $50face value = $1,000market value = $1,078n = 38 semiannual paymentsYTM = [$50 + ($1,000 - $1,078)/38] / [($1,000 + $1,078)/2]
YTM = $47.95 / $1,039 = 4.615 ≈ 4.62%
In the development of a SFAS matrix, the first step is to:____________.
A) enter the ratings of how the company's management is responding to each of the strategic factors.
B) calculate the weighted scores.
C) list the most important EFAS and IFAS items.
D) indicate short-term goals for the duration.
E) enter the weights for all of the internal factors.
Answer:
its A
Explanation:
I promise trust me
When longer-term employees' salaries are lower than those of workers entering the firm today, ______ has occurred.
Answer: Salary compression
Explanation:
Salary compression is a situation that occurs when there is a negligible differences in pay between the workers in an organization despite the experience and skills level.
It usually occurs when the pay of the current employees that are working with a company does not keep up with the rise in market pay rate thereby giving rise to a situation whereby new employees are employed at a identical pay or better pay to those that have been at the organization.
Tru-U stock is selling for $41 a share. A 6-month call on Tru-U stock with a strike price of $45 is priced at $1.60. Risk-free assets are currently returning .29 percent per month. What is the price of a 6-month put on Tru-U stock with a strike price of $45?
Answer:
$4.82
Explanation:
Calculation for the price of the 6-month put on Tru-U stock
To find the price of a 6-month put on Tru-U stock with a strike price of $45 we are going to use Put-call parity formula to calculate it
Using this formula
Put-call parity: S + P = C + PV(E) P
Let plug in the formula
Put-call parity= $1.60 + ($45 / 1.0029^⁶) - $41 = Put-call parity=$1.60+($45/1.01752)-$41
Put-call parity=$1.60+(44.22517)-$41
Put-call parity=$45.82517-$41
Put-call parity=$4.82
Therefore the price of a 6-month put on Tru-U stock with a strike price of $45 will be $4.82
Two partners, Small and Big, form a partnership in which Small invested $40,000 and Big invested $60,000 for a total capital of $100,000. But Small devotes more time to the business and earns more from the firm. They have agreed to share the profits as follows:
1. The first $20,000 is allocated on the partner's capital balances.
2. The next $30,000 is allocated based on service: Small gets $20,000, and Big gets $10,000.
3. Any remaining profits are allocated equally.
4. The partnership's net income is $100,000.
Requried:
a. What is Small's portion of the net income?
b. What is Big's portion of the net income? Make the entry for this allocation.
c. What would be the right parts to the journal entry for this question?
Answer:
a. What is Small's portion of the net income?
$53,000b. What is Big's portion of the net income? Make the entry for this allocation.
Big's portion = $47,000Dr Income Summary 47,000 Cr Big, capital 47,000c. What would be the right parts to the journal entry for this question?
Debit Income summary and credit capital accountsExplanation:
partnership's net income $100,000
first $20,000
Small $8,000Big $12,000next $30,000
Small $20,000Big $10,000Remaining $50,000
Small $25,000Big $25,000total Small = $53,000
total Big = $47,000
Patricia Nall was approved for a $3,000, two-year, 11 percent loan with the finance charges figured using the discount method. How much cash will Patricia receive from this loan?
Answer:
$2,340
Explanation:
The computation of cash received from this loan is shown below:-
cash received from this loan = Approved amount - (Approved amount × Two year × Percentage of loan )
= Approved amount - ($3,000 × 2 × 11% )
= $3,000 - ($3,000 × 2 × 0.11 )
= $3,000 - $660
= $2,340
Therefore, for computing the cash will Patricia receive from this loan we simply applied the above formula.
On May 10, Monty Corp. issues 1,900 shares of $4 par value common stock for cash at $13 per share. Journalize the issuance of the stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
May 10, 2020, 1,900 shares issued at $13
Dr Cash 24,700
Cr Common stock 7,600
Cr Additional paid in capital 17,100
The common stock account increases using the pay value as reference. For example, if the common stock account = $200,000 and the par value of the stocks = $4, then we know that the company has 50,000 common stocks outstanding.
If investors pay any amount over the stocks' par value, that amount must be reported as additional paid in capital, in this case for common stock.
A bank has excess reserves of $1 million and makes a new loan for $500,000. If the bank faces a 10% required reserve ratio, by how much could the money supply increase when the loan is made
Answer:
With a 10% required reserve ratio, the money supply could increase by $500,000/r when the loan is made.
This equals $5,000,000 ($500,000/0.1) where r = 10%
Explanation:
a) The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend.
b) The formula for the money multiplier is simply 1/r, where r = the reserve ratio.
c) The reserve ratio, also known as Cash Reserve Ratio, is the percentage of deposits which commercial banks are required to keep as cash according to the directions of the central bank. It is used by the central bank to control the supply of money in the economy. When the central bank wants to increase the money supply, it lowers the reserve ratio and vice versa.
d) According to wikipedia.com, "the money supply is the total value of money available in an economy at a point of time." It is usually defined as currency in circulation plus demand deposits. It is the demand deposits that give commercial banks the ability to create money using the reserve ratio.
You are considering two mutually exclusive projects. Both projects have an initial cost of $52,000. Project A produces cash inflows of $25,300, $37100, and $22,000 for years 1 through 3, respectively. Project B produces cash inflows of $43,600, $19,800 and $10,400 for years 1 through 3, respectively. The required rate of return is 14.2 percent for Project A and 13.9 percent for Project B. Which project should you accept and why? a) Project A because it has the higher required rate of return b) Project A because it has the larger NPV c) Project 8, because it has the largest cash inflow in year 1. d) Project B; because it has the lower required rate of return
Answer:
b) Project A because it has the larger NPV
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Project A
Cash flow in year 0 = $-52,000
Cash flow in year 1= $25,300,
Cash flow in year 2 = $37100
Cash flow in year 3= $22,000
I = 14.2
NPV = $13,372.95
Project B
Cash flow in year 0 = $-52,000
Cash flow in year 1= $43,600
Cash flow in year 2 =, $19,800
Cash flow in year 3= $10,400
I = 13.9
NPV = $8,579.62
The NPV of project A is larger than that of project B, so, project A is more suitable
A company has net income of $7.10 million. Stockholders' equity at the beginning of the year is $35.05 million and, at the end of the year, it is $43.15 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately:
Answer:
Return on equity ratio 18.16%
Explanation:
Calculation for the return on equity ratio
This first step is to find the Average stock holder equity.
Using this formula
Average stock holder equity =Beginning stock holder equity + ending stock holder /2
Let plug in the formula
Average stock holder equity=$35.02+$43.15/2
Average stock holder equity =$78.17/2
Average stock holder equity =$39.085
Second step is to calculate for the return on equity ratio
Using this formula
Return on equity ratio=NET INCOME/STOCKHOLDERS EQUITY
let plug in the formula
Return on equity ratio=$7.10/$39.085
Return on equity ratio=0.18165 ×100
Return on equity ratio=18.16%
Therefore The return on equity ratio is approximately 18.16%
1) In the previous problem, suppose Ferguson has announced it is going to repurchase $15,600 worth of stock. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend.
Answer:
1. Equity reduces to $372,300
2. 11,517 shares
3. $32.33
Explanation:
1. Effect on Equity
The company will use $15,600 cash to buy the equivalent amount of shares.
Cash Balance will reduce by;
= 52,900 - 15,600
= $37,300
Equity will reduce by the amount of stock repurchased;
= 387,900 - 15,600
= $372,300
2. Shares Outstanding
Current Stock Price = [tex]\frac{Equity Value}{Number of shares outstanding}[/tex]
= 387,900/12,000
= $32.33
Number of shares repurchased = 15,600/32.33
= 483 shares
New Shares Outstanding = 12,000 shares - 483 shares
= 11,517 shares
3. Price per share after repurchase
= [tex]\frac{New Equity Value}{New Number of shares outstanding}[/tex]
= 372,300 / 11,517
= $32.33
4. Dividends declared reduces the equity value.
= 32.33 - 1.30
= $31.03
The share repurchase is the same as the cash dividend because the stock price after the repurchase is the same as the stock price if dividends are declared less the cash dividends.
Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,400 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today
Answer:
$3,315.13
Explanation:
To determine the amount of inheritance Marshall should invest today, we have to calculate the present value of $5,400.
PV = FV (1 + r)^-n
FV = Future value = $5,400
P = Present value
R = interest rate 5%
N = number of years 10
$5400(1.05^-10) = $3,315.13
I hope my answer helps you
ctivity-Based Costing and Conventional Costs Compared Chef Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker. The Cooker is a premium product sold in upscale outdoor shops; the Smoker is sold in major discount stores. Following is information pertaining to the manufacturing costs for the current month. Gas Cooker Charcoal Smoker Units 1,000 4,000 Number of batches 60 10 Number of batch moves 80 20 Direct materials $20,000 $100,000 Direct labor $20,000 $27,000 Manufacturing overhead follows: Activity Cost Cost Driver Materials acquisition and inspection $288,000 Amount of direct materials cost Materials movement 16,900 Number of batch moves Scheduling 42,000 Number of batches $346,900 Rounding instructions: Do not round until your final answers. Round total cost answers to the nearest dollar and per unit answers to the nearest cent. (a) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead is assigned on the basis of direct labor dollars. HINT: Use 7.3809 for overhead rate calculations. Total cost Answer Gas Cooker Answer per unit Charcoal Smoker Answer per unit (b) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming manufacturing overhead is assigned using activity-based costing. Total cost Answer Gas Cooker Answer per unit Charcoal Smoker Answer per unit PreviousSave AnswersNext
Answer:
(a) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead is assigned on the basis of direct labor dollars.
Gas Cooker:
total cost = $20,000 + $20,000 + $147,618 = $187,618
cost per unit = $187.62
Charcoal Smoker
total cost = $20,000 + $27,000 + $199,284 = $246,284
cost per unit = $61.57
(b) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming manufacturing overhead is assigned using activity-based costing.
Gas Cooker:
total cost = $20,000 + $20,000 + $48,000 + $13,520 + $36,000 = $137,520
cost per unit = $137.52
Charcoal Smoker
total cost = $100,000 + $27,000 + $240,000 + $3,380 + $6,000 = $376,380
cost per unit = $94.10
Explanation:
Gas Cooker Charcoal Smoker
Units 1,000 4,000
Number of batches 60 10
Number of batch moves 80 20
Direct materials $20,000 $100,000
Direct labor $20,000 $27,000
Manufacturing overhead follows:
Activity Cost Cost Driver
Materials acquisition $288,000 Amount of direct
and inspection materials cost
$48,000
$240,000
Materials movement $16,900 Number of batch moves
$13,520
$3,380
Scheduling $42,000 Number of batches
$36,000
$6,000
In your opinion which causes of work stress, or organizational stressors, are likely to be among the most common experienced by air traffic controllers? Explain your reasoning.
Answer:
There are four types of organizational stressors: task demands, physical demands, role demands, and interpersonal demands.
For air traffic controllers, task demands are probably the most common organizational stressor that they experience.
Among the task demands, we have the need of quick decisions, critical decisions, and the fact that some information may be incomplete.
The job of an air traffic controller is complex, difficult, requires taking quick, and specially, critical decisions all the time. A bad decision by a traffic controller can be very problematic, and even prove fatal, because of the delicate nature of the job. For all these reasons, air traffic controllers are likely to be subjected to this specific organizational stressor.
Bonner Corp.'s sales last year were $345,000, and its year-end total assets were $355,000. The average firm in the industry has a total assets turnover ratio (TATO) of 2.4. Bonner's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant? Use the year-end balance in your calculations. Select the correct answer. a. $211,325 b. $211,175 c. $211,101 d. $211,250 e. $211,026
Answer:
d. $211,250
Explanation:
The TATO is the ratio of sales to assets:
TATO = sales/assets
Filling in the desired numbers, we can find the desired level of assets:
2.4 = 345,000/assets
assets = 345,000/2.4 = 143,750
Starting with assets of 355,000 the reduction necessary to bring assets down to 143,750 is ...
$355,000 -143,750 = $211,250 . . . . matches choice D
Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:
1. Andrea invested $13,500 cash in the business.
2. Andrea contributed $20,000 of photography equipment to the business.
3. The company paid $2,100 cash for an insurance policy covering the next 24 months.
4. The company received $5,700 cash for services provided during January.
5. The company purchased $6,200 of office equipment on credit.
6. The company provided $2,750 of services to customers on account.
7. The company paid cash of $1,500 for monthly rent.
8. The company paid $3,100 on the office equipment purchased in transaction #5 above.
9. Paid $275 cash for January utilities.
Based on this information, the balance in the A. Apple, Capital account reported on the Statement of Owner's Equity at the end of the month would be:__________.
a. $31,400.
b. $39,200.
c. $31,150.
d. $40,175.
e. $30,875.
Answer:
2356
Explanation:
3546478967654322 321
Chad, a sole proprietor of a private boat charter business, purchased and placed into service ten boats for $260,000 each on May 1, Year 1. These were the only assets Chad placed into service in Year 1. Assume the boats have a 10 year MACRS recovery period. What is the maximum amount, if any, that Chad can deduct in Year 1 if he does not elect out of bonus depreciation
Answer:
The maximum amount that Chad can depreciate in yer 1 if he decides not to elect bonus depreciation is $26,000
Explanation:
MACRS 10 year depreciation rate of recovery half year convention:
Year Depreciation % Purchase cost Depreciation
1 10% $260,000 $26,000
2 18% $260,000 $46,800
3 14.40% $260,000 $37,440
4 11.52% $260,000 $29,952
5 9.22% $260,000 $23,972
6 7.37% $260,000 $19,162
7 6.55% $260,000 $17,030
8 6.55% $260,000 $17,030
9 6.56% $260,000 $17,056
10 6.55% $260,000 $17,030
11 3.28% $260,000 $8,528
"In your opinion, how has social media affected customer service in a broad sense? Provide evidence that supports your opinion."
Explanation:
Social media directly impacted the relationship between consumer and company.
First, you need to consider how the internet and social media are widely used by thousands of people around the world as a way to connect with others and exchange information.
Realizing this phenomenon, companies decided to use social media as a way to interact with their customers and attract more audiences. Social media works as a space where the construction of the relationship takes place more instantly and a little less formally, which allows for more in-depth interaction and the creation of a valuable relationship between company and customer.
Through the social media it is possible that the time of an answer for example is drastically reduced, which alters the consumer perception in a positive way.
It is also possible that companies use social media as a tool to improve relationship marketing, which is the creation of value for the customer through content, photos and posts, which generate engagement, approximation, loyalty and connection with consumers.
Suppose the entire banking system has $50 million in excess reserves and a required reserve ratio of 10 percent. The deposit-creation potential of the banking system is:
Answer: $500 million
Explanation:
The required reserve ratio is the fraction of the total deposit that a bank recieves which is mandated by the central bank to be kept and should not be given out.
If the entire banking system has $50 million in excess reserves and a required reserve ratio of 10 percent. The deposit-creation potential of the banking system will be:
= $50million/10%
= $50million/0.1
= $500 million
J.C Coats Inc. carefully develops standards for its coat making operation. Its specifications call for 2 square yards of wool per coat. The budgeted price of wool is $50 per square yard. The actual price for the wool was $38 and the usage was only 1.6 yards of wool per coat. What would be the standard cost per output for the wool?
Answer:
$100 per coat
Explanation:
Standard ;
Wool required = 2 yard square per coat
Budgeted price = $50 per square yard
Therefore,
We will need to multiply the total direct material quantity per unit for its unitary cost in order to arrive at the standard cost per unit.
Total standard cost per coat = Wool per coat × Cost per square yard,
= 2 × $50
= $100 per coat
Mary makes monthly deposits of $450 at the end of each month over 25 consecutive years to support her retirement. If the account earns an interest rate of 7.5%, which amount comes closest to the value of the deposits at the end?
a. $120,938
b. $343,343
c. $382,667
d. $394,767
e. $367,100
Answer:
d. $394,767
Explanation:
For computing the amount of deposit at the end we need to apply the future value formula i.e to be shown in the attachment
Given that,
Present value = $0
Rate of interest = 7.5% ÷ 12 months = 0.625%
NPER = 25 years × 12 months = 300 months
PMT = $450
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after applying the above formula, the future value is $394,767
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $345,000 investment for new machinery with a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Project Y Project Z
Sales $ 360,000 $ 288,000
Expenses
Direct materials 50,400 36,000
Direct labor 72,000 43,200
Overhead including depreciation 129,600 129,600
Selling and administrative expenses 26,000 26,000
Total expenses 278,000 234,800
Pretax income 82,000 53,200
Income taxes (38%) 31,160 20,216
Net income $ 50,840 $ 32,984
Compute each projectâs annual expected net cash flows.
Project Y Project Z
Determine each projectâs payback period.
Payback Period
Choose Numerator: / Choose Denominator: = Payback Period
/ = Payback period
Project Y =
Project Z =
Compute each projectâs accounting rate of return.
Accounting Rate of Return
Choose Numerator: / Choose Denominator: = Accounting Rate of Return
/ = Accounting rate of return
Project Y
Project Z
Determine each projectâs net present value using 6% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.)
Project Y
Chart values are based on:
n =
i =
Select Chart Amount x PV Factor = Present Value
=
Net present value
Project Z
Chart values are based on:
n =
i =
Select Chart Amount x PV Factor = Present Value
=
Net present value
Answer:
Project Y Project Z
(6 years) (5 years)
investment: -$345,000 -$345,000
cash flows:
net income after taxes $50,840 $32,984
+ depreciation expense $57,500 $69,000
net cash flow per year = $108,340 $101,984
payback period:
investment / NCF = 3.18 years 3.38 years
accounting rate or return:
net income / investment = 14.74% 9.56%
net present value:
NCFs discounted at 6% = $187,743 $84,594
Project Y lasts for 6 years, while project Z lasts for only 5 years, that is the reason why there NPVs are so different.
Currently, a U.S. trader notes that in the 6-month forward market, the Japanese yen is selling at a premium (that is, you receive more dollars per yen in the forward market than you do in the spot market), while the British pound is selling at a discount. Which of the following statements is correct?
a) If interest rate parity holds among the three countries, the United States should have the highest 6-month interest rates and Britain should have the lowest rates.
b) If interest rate parity holds among the three countries, the United States should have the highest 6-month interest rates and Japan should have the lowest rates.
c) If interest rate parity holds among the three countries, Japan should have the highest 6-month interest rates and Britain should have the lowest rates.
d) If interest rate parity holds, 6-month interest rates should be the same in the U.S., Britain, and Japan.
e) If interest rate parity holds among the three countries, Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
Answer:
Hence correct answer is option e) If interest rate parity holds among the three countries, Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
Explanation:
The gift from Rebecca Smith (see previous question) earned $50,000 this year. The city council decides that these resources should be used to construct new sand volleyball courts for public use. Which fund should be used to account for the construction of the courts
Answer: a. Capital Projects Fund
Explanation:
This is a fund that is used by the Government in it's accounting records to record the various transactions related to embarking on a capital project.
It includes how the funds were sourced and how they will be disbursed.
Once the project is finished this fund is usually terminated.
At the level of output at which a single-price monopolist maximizes profit, price is Group of answer choices
Answer:
Greater than marginal cost.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. It is also known as oligopoly, wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
Also, a single-price monopolist is an individual or seller that sells each unit of its products to all its customer at the same price. Hence, a single-price monopolist doesn't engage in price discrimination among its customers (buyers).
At the level of output at which a single-price monopolist maximizes profit, price is greater than marginal cost because the marginal revenue would be below the demand curve.
However, if the marginal cost is greater than the price, the monopolist will not make any profit.
In a nutshell, profit maximization for the single-price monopolist occurs at the point where marginal cost is equal to marginal revenue (MC = MR) on the graph of price (P) against quantity (Q) of goods.
Characteristics of competitive markets The model of competitive markets relies on these three core assumptions:
1. There must be many buyers and sellersâa few players can't dominate the market.
2. Firms must produce an identical productâbuyers must regard all sellers' products as equivalent
. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers.
While the third is not necessary for price-taking behavior, assume for this problem that a market cannot maintain competition in the long run without free entry.
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Scenario Competitive?
The government has granted the U.S. Postal Service the exclusive right to deliver mail.
There are hundreds of high school students in need of algebra private teachers services in Dallas. Dozens of companies offer private teaching services, and the parents who seek out private teachers view the quality of the at the different companies to be largely the same.
There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which enables students with diverse preferences to find schools that match their needs.
A few major airlines account for the vast majority of air travel. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.
Answer:
The correct answers are:
First Scenario: It is not a perfect competitive market
Second Scenario: It is a perfect competitive market
Third Scenario: It is not a perfect competitive market
Foruth Scenario: It is not a perfect competitive market
Explanation:
First Scenario: The fact that the government has interfere with the market and make it impossible for other companies to operate in there then that market refers to a monopoly where the only seller is the U.S. Postal Service and therefore there can not be another companies selling in the market and that is why it is not a perfect competitive market.
Second Scenario: The fact that there are a lot of buyers and sellers and that the product is perceived as the same and therefore that this one is homogeneous to every consumer makes this market a perfect competitive one.
Third Scenario: The fact that the colleges vary on many variables such as location, size and educational quality makes it impossible to be a competitive market because there is not a homogenoues product but instead the buyers can choose among those colleges due to their differences and needs.
Fourth Scenario: The fact that there are only a few airlines and not many makes it impossible for the market to a be a perfect competitive one and therefore that this market is actually an oligopoly preferently because the buyers will choose mostly by price.
Why would a large publically traded corporation likely prefer issuing bonds as a way to raise new money as opposed to issuing more shares
Answer: B. more shares will dilute the existing value of the stock, causing its market price to fall
Explanation:
The company is already Publicly traded. If it were to issue more stock it would increased the amount of stock it has in the market which will lead to the prices reducing from a high amount of supply.
Companies generally do not want their stock prices to decrease as it sends negative signals to investors as well as the fact that management's role is to try to increase Shareholder wealth.
They will therefore rather issue bonds than risk their stock prices reducing in price.
Which senior managers may assume a greater deal of transferability between domestic and international HRM practices?
Answer: d. All of the Above
Explanation:
All the above senior managers are more likely to apply more Domestic HRM practices to make them International HRM practices when they are put into a situation where International practices will be needed.
This is because they have been with the Domestic companies for much of their time and so know more about Domestic practices than international.
The first options refers to senior managers in firms with large domestic markets. To be a senior manager demands experience in the market they are in so it is not far fetched to say that they are more knowledgeable in domestic practices than international.
The second option speaks of managers with little International experience meaning they are more likely to engage in transferability between domestic and International practices.
The third option speaks of managers who built their careers on domestic experience. They will find it hard letting go of what has brought them such success so will more likely apply domestic practices on an international scale.
If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money.1. True2. False
Answer:
2. False
Explanation:
The market for money is like the market for any other good: if demand is higher than supply, then, the price of money (the interest rate), will have to be lowered, so that money becomes cheaper and more abundant, and supply and demand become equal and reach equilibrium.
In this case, the centrla bank needs to lower the interest rates by buying bonds. When the central bank buys bonds, it prints more money that is put in the market, effectively increasing the supply of money, and lowering the interest rate in the meantime.