The framework (draw graphs) to describe the current situation and illustrate how energy crisis like this could trigger inflation.
In response to an increase in energy costs, the economy experiences a leftward shift of its aggregate supply (AS) curve. The price level is rising, and the equilibrium GDP is decreasing due to the decrease in production.
When energy prices rise, producers' expenses rise, and they pass on their expenses to consumers in the form of higher prices. This type of inflation is referred to as cost-push inflation.
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Martin Company purchases $4,200 of merchandise on March 1, with credit terms of 3/10, n/30. lf Martin pays on March 9, what is the cost of this purchase?
$4,074
$3,780
$4,200
$3,864
It is essential to understand the dates and the related percentages. The credit terms of 3/10, n/30 mean that the buyer can get a discount of 3% if they pay the purchase price within ten days of the purchase date.
The total amount must be paid within 30 days of the purchase date. In this scenario, Martin Company purchased 4,200 worth of merchandise on March 1 with credit terms of 3/10, n/30.
If the company pays on March 9, it is within ten days of the purchase date and can get a 3% discount. Therefore, the cost of the purchase will be calculated as follows:
Purchase price = 4,200
Discount = 3% of 4,200 = 126
Amount to be paid = Purchase price - Discount = 4,200 - 126 = 4,074
the cost of the purchase when Martin Company pays on March 9 is 4,074.
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Is there evidence for Poverty Traps? (50) - Collect data on PPP adjusted Real GDP per capita for as many countries as available for two years-1960 and 2010 . - Which countries in your dataset are in the lowest quintile of the income distribution in 1960? Which countries are in the highest quintile? - Generate a scatter plot of the relationship between log Real GDP per capita in 1960 and log Real GDP per capita in 2010 - Add a 45 ∘
line - Use the color orange for the points in the scatterplot that indicate the countries in the lowest quintile of the income distribution in 1960, and yellow for the countries in the highest quintile. - Does your graph support the idea of a poverty trap at the country-level? Why or why not?
Collect GDP per capita data for 1960 and 2010, calculate log values, create a scatter plot, and analyze clustering relative to the 45° line to assess poverty traps.
To assess the existence of poverty traps, you would need to examine the relationship between initial income levels and subsequent economic growth. Here's a step-by-step approach:
1. Obtain the data: Collect PPP-adjusted real GDP per capita for as many countries as available for the years 1960 and 2010. You can refer to sources like the World Bank, IMF, or other reputable economic databases.
2. Calculate the log of real GDP per capita: Take the logarithm (base 10 or natural logarithm) of the real GDP per capita values for both 1960 and 2010. This transformation helps in comparing growth rates across different income levels.
3. Identify quintiles: Divide the countries into quintiles based on their real GDP per capita in 1960. The lowest quintile would represent the countries with the lowest incomes, while the highest quintile would include countries with the highest incomes.
4. Create a scatter plot: Plot the log real GDP per capita in 1960 on the x-axis and the log real GDP per capita in 2010 on the y-axis. Each data point represents a country.
5. Add a 45° line: Include a line with a 45° angle on the scatter plot to represent equal growth rates between the two years.
6. Color coding: Use the color orange for data points representing countries in the lowest quintile of the income distribution in 1960 and yellow for countries in the highest quintile.
7. Analyze the graph: Examine the distribution of the data points in relation to the 45° line. If countries in the lowest quintile tend to cluster below the line, while countries in the highest quintile tend to cluster above the line, it suggests the presence of a poverty trap. Conversely, if there is a wide dispersion of points and no clear clustering, it would indicate a weaker association between initial income levels and subsequent growth.
Remember, conducting this analysis requires access to the data and appropriate tools for visualization. Once you have generated the graph, you can interpret the results and draw conclusions on whether the graph supports the idea of a poverty trap at the country level.
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Second attempt at a Celcom-Digi merger
The year saw another merger attempt between Axiata Bhd and Telenor Asia. But this time around, it is on a smaller scale involving only Malaysian operations.
In short, DiGi.Com Bhd’s subsidiary Digi Telecommunications Sdn Bhd is merging with Celcom Axiata Bhd’s mobile telecommunication network operations, the second try after previous plans were terminated in September 2019.
Telenor owns a 49% stake in DiGi.Com while Khazanah Nasional Bhd holds a 36.74% in Axiata.
The merger plan was announced in April — Axiata said it was in advanced discussions with Telenor Asia, with each to have equal ownership of about 33.1% in the merged entity, dubbed Celcom Digi Bhd.
Axiata, along with Malaysian institutional funds, would own over 51% of the merged company.
The merged entity was touted to be a "leading telecommunications service provider in Malaysia", Axiata said, with a pro forma revenue of about RM12.4 billion, pre-synergy earnings before interest, taxes, depreciation, and amortisation of RM5.7 billion and an estimated 19 million customers.
The fate of the planned merger now lies in the regulator’s hands, as both parties have completed their side of the proposal.
The Malaysian Communications and Multimedia Commission formally received the merger application in November, although no timeline has been given yet on when the authorities would make a decision.
The completion of the exercise, amongst others, will also be subject to the approval of the Securities Commission Malaysia (SC) and the shareholders of Axiata and DiGi.Com.
Discussion question
1-Describe the HR activities in the phases of a cross-border M&A and the respective HR implications.
In the phases of a cross-border merger and acquisition (M&A), HR activities are important and need to be dealt with due diligence to make the merger successful. In this respect, the following are HR activities in the phases of a cross-border M&A and the respective HR implications:
Pre-deal HR activities in the pre-deal stage involve preparing for the transaction, analyzing the human resources of the target company, and developing a plan for the integration of both companies. HR implications at this stage include reviewing employment contracts, gcollective bargainin agreements, and workforce policies to identify the potential risks and opportunities during the merger and acquisition. Besides, HR may also have to identify the key employees in both companies, manage retention issues, and ensure that the cultural differences in both companies are managed properly. Post-deal HR activities in the post-deal stage involve integrating the workforce, communicating the changes to the employees, and managing the cultural differences between the two companies. HR implications at this stage include developing a plan for the retention, training, and development of the workforce. HR may also have to manage the compensation and benefits programs of both companies, integrate the workforce, and handle the legal and regulatory issues related to the merger and acquisition process. Conclusion The success of a cross-border merger and acquisition depends largely on how well HR activities are planned and executed. Therefore, companies need to ensure that HR activities are integrated into the overall merger and acquisition process to ensure that employees are well taken care of during and after the merger.
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how can organized labor gain from these negative statements
last week, you found out that one of the employees in your company has trouble with his vision. in fact, he has cataracts, a visual impairment that us protected by the Americans with disabilites Act. which are the following actions would you take with that employee.
Organized labor can gain from negative statements by creating an opportunity for them to act as a mediator and voice for the employees.
The Americans with Disabilities Act (ADA) is a federal law that prohibits discrimination against individuals with disabilities in all aspects of employment. The following actions are the steps you should take with the employee with cataracts:
Step 1: Schedule a meeting with the employee, the supervisor, and the HR representative to discuss the issue and determine what reasonable accommodations the employee might require.
Step 2: Determine what reasonable accommodations are required to accommodate the employee's visual impairment.
Step 3: Once the necessary accommodations have been determined, the employer should implement them as soon as possible to ensure that the employee can perform his or her job duties without undue hardship.
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If the nominal wages of carpenters rose by 3 percent in 2019 and the price level increased by 5 percent, then the real wages of carpenters Multiple Choice a. decreased by 3 percent.
b. decreased by 2 percent. c. increased by 2 percent. d. increased by 8 percent.
If the nominal wages of carpenters rose by 3 percent in 2019 and the price level increased by 5 percent, then the real wages of carpenters nt is: b. decreased by 2 percent.
What is the Change in Real Wages?Using this formula to calculate the change in real wages is:
Change in Real Wages = Percentage change in nominal wages - Percentage change in price level
Let plug in the formula
Change in Real Wages = 3% - 5%
Change in Real Wages = -2%
Therefore the real wages is option b.
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The December 31, Year 4, balance sheet for Zachary Corporation is presented here. These are the only accounts on Zachary's balance iheet. Amounts indicated by question marks (?) can be calculated using the following additional information: Required a. Compute the balance in trade accounts payable as of December 31 , Year 4. b. Compute the balance in retained earnings as of December 31 , Year 4. c. Compute the balance in the inventory account as of December 31, Year 4 . (Assume that the level of inventory did not change from last year.) Note: For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
The balance in the inventory account as of December 31, Year 4 is $28,200.
How to find?Let us compute the balance in trade accounts payable as of December 31, Year 4. Calculation of Trade Accounts Payable = Accounts payable from the balance sheet - Notes payable
Accounts payable = $12,550
Notes payable = $4,350
Trade Accounts Payable = $12,550 - $4,350
= $8200
Now, let us calculate the balance in retained earnings as of December 31, Year 4
Calculation of Retained Earnings = Common stock + Additional paid-in capital + Retained earnings (Beginning) - Dividends - Net income
Common stock = $17,500
Additional paid-in capital = $27,500
Retained earnings (Beginning) = $55,250
Dividends = $11,500
Net income = $22,500
Retained Earnings = $17,500 + $27,500 + $55,250 - $11,500 + $22,500
= $111,250
Finally, let us compute the balance in the inventory account as of December 31, Year 4.
Assuming that the level of inventory did not change from last year.
Inventory = $28,200
Therefore, the balance in the inventory account as of December 31, Year 4 is $28,200.
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There are 3 categorles of suppliers. Which of the following is not one of them? Tracesactional Strategc Professional Preferred
There are 3 categories of suppliers. The following is not one of them: Transactional, Strategic, Professional, and Preferred.
Correct Answer: Transactional
Transactional, strategic, professional, and preferred are the four categories of suppliers that are commonly used in procurement to segment suppliers based on their importance and impact on the organization's business.
The term "Transactional" is not a category of the supplier; therefore, the correct answer is transactional.
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which of the following facts refers to life in 2017 compared with 1965?
In 2017, there was a notable increase in the use of technology and social media, which is not true of 1965. People in 2017 are generally more connected and informed than those in 1965.
Social media and the internet, in general, have revolutionized the way people communicate and share information. Today, people can connect with others around the world in a matter of seconds, whereas in 1965, communication was limited to phone calls, letters, and in-person interactions. Additionally, there has been a significant increase in the amount of time spent working, commuting, and using technology. In 1965, people had more free time to pursue leisure activities such as reading books, watching TV, and playing sports. Overall, life in 2017 is marked by greater connectivity and technological advancements, which have both positive and negative implications.
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Identify some SAMSUNG practices that specifically fulfill a motivation theory. Be sure to explain which theory and how SAMSUNG'S practices fulfill it.
EXAMPLES:
Intrinsic and Extrinsic Motivators
Fulfillment Need Theories – Maslow’s, Hertzberg, or McClelland
Goal Setting – Examples of goals & how they are determined. Are they SMART?
Expectancy Theory – Are choices & motivators offered to enhance effort and outcomes?
Sam sung fulfills Maslow's hierarchy of needs by providing competitive salaries and a safe working environment, fostering teamwork and a positive work environment. They use SMART goals and offer incentives to enhance effort and outcomes, aligning with motivation theories and promoting employee motivation and satisfaction.
One motivation theory that can be applied to Samsung's practices is the fulfillment of need theories, specifically Mas low's hierarchy of needs. Maslow's theory suggests that individuals have a hierarchy of needs that must be met in order to achieve motivation and satisfaction.
Sam sung fulfills the physiological needs of its employees by providing competitive salaries, benefits, and a safe working environment. By offering a stable income and ensuring the basic needs are met, Samsung motivates employees to focus on higher-level needs.
Additionally, Sams ung addresses the social needs of its employees by promoting teamwork, collaboration, and a positive work environment. They foster a sense of belonging through team-building activities, employee recognition programs, and open communication channels.
Moreover, Sams ung incorporates elements of goal setting theory. The company sets specific, measurable, achievable, relevant, and time-bound (SMART) goals for its employees.
For instance, employees may be given sales targets or project deadlines that are clearly defined and attainable. By providing employees with clear goals, Samsung enhances motivation by giving individuals a sense of direction and purpose.
Furthermore, Sam sung embraces the expectancy theory by offering choices and motivators to enhance effort and outcomes. The company provides various performance incentives, such as bonuses, promotions, and career development opportunities.
These rewards create a link between individual effort, performance, and desired outcomes, increasing employees' motivation to excel in their roles.
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During the COVID-19 pandemic, the Australian government said China was responsible for the outbreak of the disease. The Chinese government was offended, and decide to reduce the quantity of coal China imported from Australia. This resulted in shortage of coal, needed to run energy power plants. To shield the public from the impact of the Coal Shortage (which includes high and rising energy prices), the government mandated price controls. In particular, the government froze retail prices of energy, including petrol and diesel. a. What type of price control has China imposed, according to the information above? [2 marks] Explain the impact of China's price controls policy on the markets for coal, petrol, and diesel. Does the impact of the price control policy depend on the elasticity of demand and supply? Illustrate your answer with the demand and supply diagram. [5 marks] b. Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal, petrol, and diesel. [8 marks] c. Is the outcome of China's price control policy fair and efficient? Critically discuss. [5 marks
Inelastic supply and elastic demand will lead to a reduction in the price of products. Deadweight loss increases as price control is imposed. Price control creates a deadweight loss, resulting in an inefficient allocation of resources.
a) The type of price control that China imposed is a retail price freeze on energy, including petrol and diesel. The impact of China's price control policy on the markets for coal, petrol, and diesel: It will lead to a shortage of coal, petrol, and diesel in the market and it will be hard for producers to maintain their supply level due to the imposed price control. The price control policy depends on the elasticity of demand and supply. Inelastic demand and elastic supply will lead to a shortage of products in the market. Whereas, inelastic supply and elastic demand will lead to a reduction in the price of products. A graph of demand and supply is shown below:
b) Producer Surplus: As a result of price control, the producer's surplus has decreased in all three markets (Coal, Petrol, and Diesel).Consumer Surplus: The impact of price control on consumer surplus can be both positive and negative. For consumers who were already buying at the maximum retail price, there will be no effect on them. For the consumers who were buying at a price higher than the retail price, there will be a positive effect as they are now getting at a lower price. Total Surplus: Total Surplus is the sum of Producer surplus and Consumer surplus. Due to price control, the Producer surplus has decreased in all three markets, but the impact on the Consumer surplus depends on the elasticities of demand and supply. Deadweight Loss: Deadweight loss increases as price control is imposed.
c)The outcome of China's price control policy is neither fair nor efficient. The retail price freeze will lead to a shortage of products in the market, and the consumers who are willing to pay more are restricted from buying it. The lower price will create excess demand, leading to a black market where the price will be higher than the market price. Therefore, price control creates a deadweight loss, resulting in an inefficient allocation of resources.
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Rohan purchased a Critical Illness (CI) policy on his own life. A few months later he was diagnosed with a covered illness. Rohan died of the covered illness 40 days after the 30 day survival period. Will the insurer pay the benefit and to whom will it be paid out? Select one: a. Yes the insurer will pay the benefit to his beneficiary b. No because he had to survive 90 days from the date of diagnosis c. The insurer will not pay since critical illness is a living benefit product d. Yes the insurer will pay the benefit to Rohan's estate
Rohan died of the covered illness 40 days after the 30 day survival period. Therefore, the-A. insurer will pay the benefit, and it will be paid out to Rohan's beneficiary.
What is the reason?The insurer will pay the benefit and it will be paid out to Rohan's beneficiary.
Rohan purchased a Critical Illness (CI) policy on his own life and was later diagnosed with a covered illness.
The policyholder selects the beneficiary when he purchases the policy. The beneficiary is the person who will receive the benefit amount in the event of the policyholder's death.
A critical illness policy is a contract in which the insurer pays a lump sum if the policyholder is diagnosed with a covered illness, such as cancer, stroke, or heart attack, and meets the policy's survival period requirements.
However, the benefit amount is paid out only if the policyholder survives the survival period as defined in the policy, which is usually 30 to 90 days after the date of diagnosis.
Therefore, in this case, Rohan met the survival period requirements.
Hence, option a. is correct.
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Which of the following is an example of indirect financial distress costs for firms in financial distress? Loss of customers and suppliers Costs of hiring legal experts, appraisers, and auctioneers Interest payment All of the given choices
Financial distress refers to a condition where a company or individual has a hard time meeting its financial commitments such as debt payments. Financial distress occurs when the amount of money spent exceeds the amount of money generated in terms of revenue and cash flow.
As a result, the firm may experience a lack of funding to cover the costs of its obligations.
Indirect financial distress costs are expenses that arise as a result of the company's deteriorating financial condition. These costs are not immediately evident, but they can have a long-term impact on the company's financial situation.
Examples of indirect financial distress costs include:
Loss of customers and suppliers Costs of hiring legal experts, appraisers, and auctioneers Interest payment (as the company is forced to pay higher interest rates on future loans and borrowing)
Reduced credit rating and higher interest rate on future loans and borrowing. Opportunity costs, such as lost investment opportunities, and lost opportunities for growth.
Conclusion: In conclusion, All of the given choices are examples of indirect financial distress costs for firms in financial distress. Indirect financial distress costs can be more costly than direct financial distress costs, but they are not immediately apparent.
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True or False. Organizational issues are often the least difficult part of working on and managing projects.
The given statement that organizational issues are often the least difficult part of working on and managing projects is false.
Organizational issues refer to the problems that arise within a project's team structure or the organization's culture, policies, or processes that may impede a project's progress.
Managing projects has become a significant aspect of modern-day businesses. Projects involve several challenges and complexities that demand expert project management skills, including the ability to manage organizational issues.
These organizational issues are often a significant source of difficulty for project managers. As projects grow in size, complexity, and duration, so do organizational challenges that require management.
Project managers must address and manage these challenges to ensure that the project is successful. Therefore, organizational issues are considered one of the most challenging parts of working on and managing projects.
To conclude, Organizational issues can significantly impact a project's success, and ignoring them can lead to project failure. Therefore, it is essential to manage these issues to ensure successful project outcomes.
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The company made a cash purchase of stationery items worth $1,050 (plus GST). They decided to capitalise this expenditure.
Required:
Prepare the relevant journal entry to recognise this purchase.
Journal entry to recognize purchase of stationery items. Capitalizing an expenditure means recording it as an asset rather than as an expense. Thus, we will need to increase the value of the asset account of the stationery items, while decreasing the value of cash.
Here's the journal entry to recognize the purchase of stationery items: Debit, Credit, Stationery items; 1,050, Cash 1,155, Accounts Payable (GST)105
Explanation: Debit to Stationery items: $1,050, which is the cost of the stationery items purchased
Credit to Cash: $1,155, which is the cost of stationery items ($1,050) plus GST ($105)
Credit to Accounts Payable (GST): $105, which is the amount of GST paid for the stationery items purchased.
Hopefully, the given explanation helps.
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If a company formed a different company to avoid being liable
for rent what law would they be breaking?
Forming a separate company to avoid liability for rent payments may potentially raise legal concerns depending on the specific circumstances and the applicable laws in your jurisdiction. While it is not inherently illegal to establish separate legal entities, using this approach solely for the purpose of evading rent liability may be considered fraudulent or an abuse of corporate structures, which could be illegal.
One legal concept that may be relevant in this context is piercing the corporate veil. Piercing the corporate veil is a legal doctrine that allows a court to disregard the separate legal entity of a corporation and hold the individuals behind it personally liable for the corporation's actions or debts.
If the court determines that the separate company was formed with the primary intent of avoiding rent liability and that the new company is merely a sham or alter ego of the original company, they may "pierce the corporate veil" and hold the individuals responsible.
It's important to consult with a qualified legal professional who can provide advice specific to your situation and the laws of your jurisdiction. They will be able to analyze the facts and circumstances in detail and provide you with accurate guidance based on the relevant laws and legal principles.
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The Peridot Company purchased machinery on January 2, 2019, for $970,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $194,000 in depreciation in 2019 and 2020. Early in 2021, the company revised the total estimated life of the machinery to eight years.
Required:
1. What type of change is this?
2. Is Peridot required to revise prior years’ financial statements as a result of the change?
3. Is Peridot required to provide a disclosure note to report the change?
4. Determine depreciation for 2021.
1. The change in the estimated life of the machinery from five years to eight years is a change in accounting estimate.
2. Peridot is not required to revise prior years' financial statements as a result of the change in accounting estimate. Changes in accounting estimates are applied prospectively, meaning they affect future periods and do not require restatement of prior periods.
3. Peridot is required to provide a disclosure note to report the change in accounting estimate. According to accounting standards, significant changes in accounting estimates should be disclosed in the financial statements to provide transparency and enable users to understand the impact of such changes on the financial results and future periods.
4. To determine the depreciation for 2021, we need to calculate the annual depreciation expense for the remaining useful life of the machinery.
The original estimated life was five years, and depreciation of $194,000 was recorded in 2019 and 2020. Therefore, the total depreciation recorded so far is $194,000 + $194,000 = $388,000.
To calculate the annual depreciation expense for the remaining three years (2021, 2022, and 2023), we can subtract the accumulated depreciation from the initial cost of the machinery:
Initial cost of the machinery: $970,000
Accumulated depreciation: $388,000
Remaining book value: $970,000 - $388,000 = $582,000
Depreciation expense for 2021 and subsequent years will be allocated over the remaining useful life of the machinery, which is now eight years. Therefore, the annual depreciation expense for 2021 would be:
Depreciation expense for 2021 = Remaining book value / Remaining useful life
Depreciation expense for 2021 = $582,000 / 3 years
Depreciation expense for 2021 = $194,000
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A trader is considering purchasing several Arrow-Debreu securities which all have the same maturity time, but provide a payoff of $1 at all possible states of the maturity time. The trader thinks that this is a very clever investment plan, and is possibly an arbitrage opportunity because it ensures there is always a payoff of $1. Here we investigate the trader's investment plan using a two-step binomial pricing model. Assume that the return on an investment over one time-step is constant R and the risk-neutral probability of the upstate is π. (a) In a two-step binomial pricing model, how may different ArrowDebreu securities must the trader purchase in order to always receives $1 at maturity. Explain your answer. (b) In a two-step model, derive a formula for the total premium of all the Arrow-Debreu securities (that is, derive formulas for the premiums of each Arrow-Debreu security and then add them together). (c) Given your answer in Question (2b), describe a portfolio which is a replicating portfolio of the sum of all Arrow-Debreu securities. Confirm that this portfolio is a replicating portfolio by showing that at each node it equals the sum of all ArrowDebreu securities. (d) Does the trader have a 'very clever' investment plan and is it an arbitrage opportunity? Explain why or why not. In your answer, discuss whether or not your conclusions would change if we considered a general N-step binomial pricing model.
(a) In a two-step binomial pricing model, the trader must purchase 4 different Arrow-Debreu securities to always receive $1 at maturity.
Since there are 3 possible states at the maturity time, and each Arrow-Debreu security provides a payoff of $1 for each state, the trader needs to purchase a security for each possible combination of up and down states. Therefore, the trader would purchase the following securities: $1/(1 + R), $1/(1 + R), $1/(1 + R), and $1/(1 + R).(b) The premium for each Arrow-Debreu security can be calculated using the following formula
: Pi = 1 / [(1 + R) ^ (2 - i)], where i = 1, 2, 3, 4. Therefore, the total premium of all Arrow-Debreu securities can be calculated by adding the premiums of each security, which is: P = P1 + P2 + P3 + P4 = 1 / (1 + R) + 1 / [(1 + R) ^ 2] + 1 / [(1 + R) ^ 2] + 1 / [(1 + R) ^ 3].(c) A replicating portfolio of the sum of all Arrow-Debreu securities is a portfolio of one stock and one bond. The stock has a price of $1 and pays out $1 at maturity if the stock price increases, while the bond pays $1 at maturity regardless of the stock price.
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a coffee retailer sells 100 bags of coffee per day. the manager wants to keep sufficient inventory for 2 days of supply. what is the number of inventory?
The term inventory number refers to a serial number or a lot number.
The goods and supplies that a company keeps on hand to resell, produce, or using them are referred to as inventory or stock. The position and form of stocked commodities are the key concerns of inventory management.
Inventory refers to all the products, services, and supplies that a business keeps on hand to resell them for a profit. Example: Only the newspaper itself will be regarded as inventory if a newspaper vendor utilizes a vehicle to distribute newspapers to clients.
Along with unfinished works in progress and any raw materials needed to produce commodities, inventory also comprises finished units of a product that is kept for sale. On the balance sheet of the corporation, it is listed as a current asset.
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Demand for Australian salmon is given by Q=24−P, and its supply by Q=8P. Suppose the government imposes a $4 per-unit tax on consumers. What would be the final price that consumers pay?
The final price that consumers pay is $8.
The equilibrium price and quantity of Australian salmon are $6 per unit and 18 units respectively.
Let's examine how to calculate the final price that consumers pay when the government imposes a $4 per unit tax on consumers.
Calculation of price after imposition of tax:P - $4 = 24 - 8PP - 8P
= 20P
= $4P
= $4/2
= $2.00
The equilibrium price was $6 and the tax imposed was $2 so the final price that consumers pay is:
$6 + $2 = $8
Therefore, the final price that consumers pay is $8.
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Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?
A.the theory of efficiency
wages
B.the marginal-productivity theory
C.human-capital theory
D.signaling theory
The theory that explains the fact that some firms may choose to pay their employees more than they would earn as determined by equilibrium in the labor market is known as signaling theory.
Here, the firms pay their employees more to signal that their employees are of high quality. By paying their employees more, firms aim to hire and retain the most qualified workers in the industry.
Signaling theory is the concept of employers sending signals to the labour market with the aim of attracting highly qualified job seekers.
They do this by paying wages higher than market wages. The firms believe that the extra pay would encourage only high-quality workers to apply for and keep the job.Firms need to hire employees with the right skills and abilities, and they can do so by offering higher salaries than other firms.
The signal suggests that the employee has desirable qualities. It is easier to signal employees' abilities in occupations with subjective, not objective, measures of success. The extra wage, in this case, serves as a signal of quality, which helps the employee find the job that best matches their abilities, and the employer to hire the best workers.
Signaling theory is a crucial concept in job search and recruitment. It describes how individuals and companies communicate their abilities to each other, which is a crucial factor in hiring and job performance.
In conclusion, it is the signaling theory that explains the fact that some firms may choose to pay their employees more than they would earn as determined by equilibrium in the labor market.
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ABC Co. shares are currently trading for $54. Assume t ere is no new information about the company. If the company does a 10 percent bonus slare issue, what will the approximate price of the share be after the issued?
Select one:
O a. $49.09 per share
b.
$54.00 per share
c. $47.80 per share
d. $48.60 per share
Bonus Share issue is when a company distributes its accumulated earnings as shares among its shareholders. The number of shares increases but their value per share decreases. For instance, if a company has issued 100,000 shares with a total value of 5.4 million (54 per share), and it issues 10,000 bonus shares,
It will have a total of 110,000 shares. Each share's value, on the other hand, will be 49.09 (i.e., the total value divided by the number of shares, i.e., 5.4 million divided by 110,000 shares).Therefore, the approximate price of the share will be 49.09 after the company does a 10% bonus share issue (option A).Formula used:Number of shares after the bonus issue = Total shares before the bonus issue * (100%+ bonus%)
Therefore, the number of shares after the bonus issue= 100,000 * (100% + 10%) = 110,000 shares New share price = Total value after bonus issue / Number of shares after the bonus issue New share price = 5.4m / 110,000 shares New share price= 49.09 per share.
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What are the government policies to attract the foreign investment called?
The government policies designed to attract foreign investment are commonly referred to as "investment promotion policies" or "foreign direct investment (FDI) policies".
These policies are implemented to encourage foreign companies and individuals to invest in a country's economy. your question is that investment promotion policies can take various forms and can include: Tax incentives: Governments may offer tax breaks or exemptions to foreign investors to make their investments more attractive. This can include reductions in corporate income tax, import duties, or value-added tax (VAT). For example, a government might provide a tax holiday for a certain period or offer a lower tax rate for foreign investors compared to domestic companies.
Special economic zones: Governments may establish special economic zones (SEZs) or free trade zones to attract foreign investment. These zones offer various incentives, such as tax breaks, simplified regulations, and infrastructure support, to encourage foreign companies to establish their operations within the designated areas. It is important to note that the specific policies and incentives can vary from country to country and depend on the government's economic development goals and priorities. Additionally, investment promotion policies should be accompanied by measures to ensure transparency, protection of intellectual property rights, and a stable and predictable business environment to attract and retain foreign investors.
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Elasticities that are equal to one everywhere along a supply or demand curve are referred to as __________.
Elasticities that are equal to one everywhere along a supply or demand curve are referred to as unitary elasticities.
Unitary elasticity indicates a proportional relationship between price and quantity, where a percentage change in price leads to an equal percentage change in quantity. When the price elasticity of demand or supply is exactly one, it signifies that the responsiveness of quantity to price changes is exactly balanced, resulting in no net effect on total revenue or expenditure.
In the case of demand, a unitary price elasticity suggests that consumers' responsiveness to price changes is moderate. A price increase or decrease will not significantly alter the total expenditure on the product since the percentage change in quantity demanded matches the percentage change in price.
Similarly, for supply, unitary elasticity implies that producers are capable of adjusting their quantity supplied in proportion to price changes. As a result, the total revenue earned by suppliers remains constant as the price and quantity change in tandem.
Unitary elasticities are important concepts in economics as they represent a state of balance where changes in price have no net effect on total revenue or expenditure.
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a.) Please show the calculation to find the present value of an annuity that will pay $4,000 annuity for five years. The interest rate is 3.8% compounded annually. b.) Please show the calculations needed to find the amount of annuity with $1500 deposited quarterly at 7% compound quarterly for 5 years
a.) Calculation to find the present value of an annuity that will pay $4,000 annuity for five years. The interest rate is 3.8% compounded annually.
To calculate the present value of the annuity, we can use the following formula:PV = A x (1 - (1 + r)^-n)/rWhere, A = annuity payment, r = interest rate per compounding period, n = number of compounding periodsFor this problem, the annuity payment is $4,000, the interest rate is 3.8% compounded annually, and the annuity payment is made for 5 years.Therefore, the present value of the annuity can be calculated as follows:PV = $4,000 x (1 - (1 + 0.038)^-5)/0.038= $17,726.09 (rounded to the nearest cent)b.) Calculations needed to find the amount of annuity with $1500 deposited quarterly at 7% compound quarterly for 5 years.We can use the following formula to calculate the future value of the annuity:FV = PMT x ((1 + r)^n - 1)/rWhere, PMT = annuity payment, r = interest rate per compounding period, n = number of compounding periodsFor this problem, the annuity payment is $1,500, the interest rate is 7% compounded quarterly, and the annuity payment is made for 5 years or 20 quarters.Therefore, the future value of the annuity can be calculated as follows:FV = $1,500 x ((1 + 0.07/4)^20 - 1)/(0.07/4)= $105,596.64 (rounded to the nearest cent)
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The budget components for Sheffield Company for the quarter ended June 30 appear below. Sheffield sells high performance coolers for $120 each, Budgeted sales and production for the next three months are: Sheffield desires to have coolers on hand at the end of each month equal to 30 percent of the following month's budgeted sales in units. On March 31, Sheffield had 6,090 completed units on hand. Five' pounds of plastic are required for each cooler. At the end of each month, Sheffield desires to have 10 percent of the following month's production material needs on hand. At March 31. Sheffield had 13.250 pounds of plastic on hand. The materials used in production cost $0.50 per pound. The production of each cooler requires 0.10 hours of direct labor. Determine the budgeted cost of direct materials purchases for the month of April. Budgeted cost of direct materials purchases for April
We must first calculate the material requirements for April before estimating the cost based on the available data in order to determine the budgeted cost of direct materials purchases for the month of April.
Let's start by figuring out how many coolers Sheffield expects to manufacture and sell in April. 5,400 coolers (or 45% of 12,000) are the budgeted sales for April. The production goal for April will be 6,750 coolers (5,400 + 30% of 5,400) since Sheffield wants to have ending inventory equal to 30% of the following month's sales in units. Let's now determine the amount of material needed in April. It takes five pounds of plastic to make one cooler. The material need for April will be because Sheffield wishes to have 10% of the production material requirements for the following month on hand. 33,750 pounds of plastic are used for every one of the 6,750 coolers, or 5 pounds each cooler. The budgeted cost of direct material purchases for April can now be determined. Materials are listed as being $0.50 per pound. Therefore, 33,750 pounds of plastic multiplied by $0.50 per pound will make up the $16, 875 estimated cost of direct material purchases for April. As a result, $16, 875 has been allocated as the cost of direct material purchases for the month of April.
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Terri is a friend of yours who knows you are taking a Business Law at Niagara College. She wants to check with you before she speaks to the general partner of the limited partnership in which she is a limited partner. - Specifically, she attended a conference, and she saw some new office furniture/storage systems that she feels would help the business, and she would like to be able to tell management of the limited partnership about these systems. Because she receives information of this nature regularly, and she is a very empowered lady, she wonders if she can provide advice to management from time to time. She does not like to hear the word "no." Based on the material in Chapter 10, advise her in your own words, on this matter while considering the following: The nature of legal relationships in a limited partnership (4) The legal significance/risks re: the division of responsibilities in partnerships. (4) The legal significance of providing advice/participating in management decisions in partnerships. (4) From a business perspective, what is the best course of action overall for Terri? (4)
Terri wants to know if she can provide advice to the management of the limited partnership from time to time. She wonders whether she should approach the general partner of the limited partnership.
She attended a conference where she saw some new office furniture/storage systems that she feels would help the business. She receives information of this nature regularly, and she is a very empowered lady.
However, she is not sure about the nature of legal relationships in a limited partnership. She also wonders about the legal significance/risks re: the division of responsibilities in partnerships and the legal significance of providing advice/participating in management decisions in partnerships.
Lastly, from a business perspective, she wants to know what is the best course of action overall for her.Legal relationships in a limited partnershipThe nature of legal relationships in a limited partnership is such that a partnership is defined as an association of two or more people engaged in business for profit. Each partner shares in the management of the business and has an equal right to its profits and losses.
The partnership is a legal entity, which means that it can sue or be sued, own property, and enter into contracts. However, a limited partnership is a type of partnership where there are two types of partners: general partners and limited partners.The legal significance/risks re: the division of responsibilities in partnershipsThe division of responsibilities in a limited partnership is such that general partners are responsible for the day-to-day management of the business, while limited partners are passive investors who do not participate in the management of the business.
Limited partners have limited liability, which means that they are only liable for the debts of the business up to the amount of their investment. However, if they participate in the management of the business, they lose their limited liability protection.
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The DuPont System of Analysis is a diagnostic tool that uses financial ratios to evaluate a company’s financial health. It can be used to identify the primary driver(s) behind an increase or a decrease in the ROA (or ROE). The end result is a breakdown of the components that make up the ROA (or ROE). Which of the following is false?
Group of answer choices
The net profit margin can be viewed as the product of operating profit margin, a ratio that measures the impact of interest expenses on profits, and a ratio that measures the impact of taxes on profits.
A firm’s ROA is indicative of its profitability and efficiency.
A firm with a leverage of 3 would indicate that $3 in assets have been financed by $1 in liabilities.
For any given ROA, the greater the use of debt in the firm’s capital structure, the greater the ROE.
The false statement related to the DuPont System of Analysis is "A firm with a leverage of 3 would indicate that $3 in assets have been financed by $1 in liabilities.
"The DuPont System of Analysis is a diagnostic tool that uses financial ratios to evaluate a company’s financial health. It can be used to identify the primary driver(s) behind an increase or a decrease in the ROA (or ROE). The end result is a breakdown of the components that make up the ROA (or ROE).
This tool is named after DuPont Corporation because of its widespread use at the corporation.The true statements related to the DuPont System of Analysis are:Firms use the DuPont analysis to decompose the return on assets (ROA) into net profit margin and asset turnover.ROA is indicative of a firm’s profitability and efficiency.
ROE measures how much profit a company makes for each dollar of equity.Leverage is the ratio of assets to equity. The greater the use of debt in the company’s capital structure, the greater the ROE. An increase in leverage raises the risk of default, which lowers the company's stock price.
The net profit margin is the profit margin that is viewed as the product of operating profit margin, a ratio that measures the impact of interest expenses on profits, and a ratio that measures the impact of taxes on profits.In conclusion, the false statement is "A firm with a leverage of 3 would indicate that $3 in assets have been financed by $1 in liabilities." as a leverage of 3 would indicate that $3 in assets have been financed by $2 in liabilities.
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A lease agreement that qualifies as a finance lease calls for annual lease payments of $40,000 over a frve-year lease term falso the asset's useful life), with the first payment at January 1 , the beginning of the lease. The interest rate is 4%. (FV of $1, PV of $1. EVA of $1. PVA of \$1. EVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.) Required: a. Complete the amortization schedule for the first two payments. b. If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable? Complete this question by entering your answers in the tabs below. If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable? (Round your answers to the nearest whole dollar.)
The lease payments will be recorded as an account payable by the lessee, and the leased asset will be recorded as an asset by the lessee.
a. Amortization schedule for the first two payments:
Payment #1: The present value of annuity due (5 years, 4%) is 4.48685. The lease liability (present value of lease payments) will be $179,474 ($40,000 × 4.48685).
Interest expense is $7,179 ($179,474 × 4%) in the first year. Principal reduction is $32,821 ($40,000 - $7,179).
Lease Liability Interest Expense Lease Payment Principal Reduction Balance Sheet Opening
$179,474$7,179$40,000$32,821$146,652
Payment #2: The present value of annuity due (4 years, 4%) is 3.62144. The lease liability (present value of lease payments) will be $144,857 ($40,000 × 3.62144).
Interest expense is $5,794 ($144,857 × 4%) in the second year. Principal reduction is $34,206 ($40,000 - $5,794).
Lease Liability Interest Expense Lease Payment Principal Reduction Balance Sheet Opening
$144,857$5,794$40,000$34,206$112,446b.
At the end of the first year, the lease liability would be the present value of the remaining four lease payments: $126,719 ($40,000 × 3.16745). The interest payable would be $5,069 ($126,719 × 4%).
Explanation: Finance lease is the lease agreement where the lessee is provided with all the risks and rewards of ownership.
A lease is considered a finance lease if the present value of lease payments is equal to the fair value of the asset, the lease term is for a major part of the useful life of the asset, or the lease agreement provides the lessee with an option to purchase the asset at a price which is lower than its fair value.
The lessor records the lease payments as revenue and records the leased asset as an account receivable.
In this question, the lease qualifies as a finance lease as the lease term is for a major part of the asset's useful life, and the present value of lease payments is equal to the fair value of the asset.
The lease payments will be recorded as an account payable by the lessee, and the leased asset will be recorded as an asset by the lessee.
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which of the following is true about an open-end mutual fund? multiple choice question. shares are issued and redeemed by the investment company at the request of investors. it needs no professional management. a fixed number of shares are issued at the launch of the fund. the shares are bought and sold on a major stock exchange.
The true statement about an open-end mutual fund is that shares are issued and redeemed by the investment company at the request of investors.
An open-end mutual fund is a type of investment fund that is continuously open to new investors. In an open-end mutual fund, shares are issued and redeemed by the investment company at the request of investors. This means that investors can buy shares in the fund directly from the investment company and also sell their shares back to the company when they want to exit the investment. These shares are then bought and sold on a major stock exchange, just like stocks.Therefore, the statement that shares are issued and redeemed by the investment company at the request of investors is the true statement about an open-end mutual fund. This liquidity is an important advantage for investors who may need to access their funds quickly.
When it comes to open-end mutual funds, there are several characteristics that set them apart from other types of investment funds. The true statement about an open-end mutual fund is that shares are issued and redeemed by the investment company at the request of investors.Unlike closed-end mutual funds, which have a fixed number of shares issued at the launch of the fund, open-end mutual funds do not have a fixed number of shares. Instead, the investment company continuously creates new shares or cancels existing shares based on the demand from investors.
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Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 25,000 bottles of wine were sold every week at a price of \( \$ 5 \) per bottle. After the tax, 20,000 bottles
A tax on wine producers would lead to an increase in the price of the wine. In this case, before the tax, 25,000 bottles of wine were sold every week at a price of $5 per bottle.
The supply curve, which represents the cost of producing wine, is perfectly elastic, meaning that the price of wine is directly proportional to the cost of production. The demand curve, which represents the quantity of wine consumers are willing and able to buy at each price point, is downward sloping. At the original price of $5 per bottle, the market is in equilibrium, with 25,000 bottles sold per week.
Suppose that the tax is imposed. The new price of wine is $6 per bottle. At this higher price, demand falls from 25,000 bottles to 20,000 bottles per week. On the supply side, producers will be less willing to produce wine because the price they receive is now only $4 per bottle, down from $5 per bottle. As a result, supply falls from 25,000 bottles to 20,000 bottles per week.
This is shown in the diagram below: The imposition of the tax leads to a deadweight loss, which is the reduction in economic efficiency that results from the tax. In this case, the deadweight loss is the triangle between the original equilibrium, the new equilibrium after the tax, and the supply and demand curves.
It represents the lost gains from trade that result from the reduction in production and consumption of wine due to the tax. Overall, the imposition of a tax on wine producers leads to a decrease in both the quantity of wine produced and the quantity of wine consumed. This reduction in production and consumption represents a reduction in economic efficiency. The deadweight loss from the tax represents the lost gains from trade that result from this inefficiency.
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