The outstanding principal after 12 years isOption A: R 335,334.69.
To find the outstanding principal after 12 years, we need to calculate the total amount paid towards the loan during that period.
First, let's calculate the total number of monthly payments made in 12 years: 12 years * 12 months/year = 144 months.
Next, we can use the loan payment amount of R4404.35 to find the total amount paid towards the loan over 144 months: R4404.35 * 144 = R633,153.60.
Now, let's calculate the remaining principal balance after 12 years. We'll use the formula for the present value of an ordinary annuity:
PV = PMT * ((1 - (1 + r)^-n) / r)
Where:
PV = Present Value (remaining principal balance)
PMT = Payment amount per period (R4404.35)
r = Interest rate per period (12% per year / 12 months = 1% per month)
n = Total number of periods (144 months)
Plugging in the values:
PV = R4404.35 * ((1 - (1 + 1%)^-144) / 1%)
After evaluating the equation, we find that the remaining principal balance is approximately R335,334.69.
Therefore, the correct answer is a. R 335,334.69.
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If you invest $1000 in a savings account today and in 5 years you withdraw $1750 how much did you earn in compound annual interest?
By investing $1000 in a savings account and withdrawing $1750 after 5 years, you earned approximately $339.19 in compound annual interest.
To calculate the compound annual interest, we can use the formula for compound interest:
[tex]A = P(1 + r/n)^{(nt)[/tex]
where A is the final amount,
P is the initial principal,
r is the annual interest rate,
n is the number of compounding periods per year, and
t is the number of years.
In this case, the initial principal is $1000, the final amount is $1750, and the time is 5 years. We need to find the annual interest rate (r) that will result in a final amount of $1750 after 5 years in present value.
Rearranging the formula, we have
[tex]r = (A/P)^{(1/(nt)) }- 1.[/tex]
Plugging in the values, we get
r = (1750/1000)^(1/(1*5)) - 1.
r=6.19%
Evaluating this expression, we find that the annual interest rate is approximately 6.19%.
To calculate the compound annual interest, we subtract the initial principal from the final amount:
$1750 - $1000 = $750.
Therefore, the amount earned in compound annual interest is approximately $339.19 when rounded to the nearest cent.
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Consider the following information which relates to a closed economy without a government:
Consumption (C + cYd) : 375 + 0.6Yd
Investment (I) : 140
Full employment level of income (Yf) : 2 000
Q : Draw a graph to illustrate macroeconomic equilibrium for this closed economy. Your graph should clearly indicate the following:
• The value of autonomous consumption
• The value of total autonomous expenditure
• The value of income at equilibrium
• The point of equilibrium
The equilibrium income in the closed economy is 1,400.
In a closed economy without a government, the equilibrium level of income is determined by the equality of total autonomous expenditure (consumption and investment) and income. The autonomous consumption is given as 375, which represents the level of consumption that does not depend on income. The consumption function also includes a marginal propensity to consume (c) of 0.6, indicating that for every additional unit of disposable income (Yd), 60% will be spent.
The total autonomous expenditure is the sum of autonomous consumption and investment, which is 375 + 140 = 515.
To find the equilibrium income, we set total autonomous expenditure equal to income (Y):
515 = Y
We know that at full employment, the income (Yf) is 2,000. However, in this case, the equilibrium income is below the full employment level. Therefore, the equilibrium income in the closed economy is 1,400, which is the point where total autonomous expenditure intersects the 45-degree line representing income.
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Which of the following advantages of global procurement do you find most beneficial?
+No need to invest money associated with making.
+Focus is on the production stages and components with the most value added.
+Maximizes flexibility by allocating orders among the suppliers in a dynamic way.
+Input purchase costs are lower due to economies of scale and lower costs achieved by global sellers of components.
+Buying firm does not need to learn a new business.
+Avoids the business risks that suppliers are taking.
+Simplifies the production process.
+Sets stage for offsets through direct procurement purchasing in and indirect support of local markets.
Research two of the advantages listed above and, using your research, explain why they are the most advantageous. Your response should include the following:
(1) Which advantages you selected.
(2) Why they are the most beneficial.
(3) Examples of businesses successfully implementing these approaches.
(1) The two advantages I selected are: Input purchase costs are lower due to economies of scale and lower costs achieved by global sellers of components. Maximizes flexibility by allocating orders among the suppliers in a dynamic way.
(2) Input purchase costs are lower due to economies of scale and lower costs achieved by global sellers of components is the most beneficial because it helps companies to reduce the cost of raw materials and other inputs that go into producing their products. By purchasing these inputs at a lower cost from global sellers, companies can improve their profit margins and offer competitive prices to customers.
This can also lead to greater cost efficiencies and savings that can be reinvested in the business to drive growth and innovation. Maximizing flexibility by allocating orders among the suppliers in a dynamic way is also highly beneficial because it helps companies to respond to changes in demand and market conditions quickly and efficiently. By spreading orders among multiple suppliers, companies can avoid disruptions to their supply chains and maintain continuity of production. This can be especially important in industries where demand is volatile and subject to sudden changes, such as fashion, electronics, and automotive.(3) One example of a business successfully implementing global procurement is Apple Inc. Apple sources components from suppliers all over the world, including China, South Korea, and Japan. By using global procurement, Apple has been able to reduce its input costs, improve its supply chain resilience, and achieve greater flexibility in responding to market changes.
Another example is Nike Inc. Nike sources its products from factories in Asia, Europe, and the Americas, and uses a dynamic allocation system to manage its production. This has allowed Nike to respond quickly to changes in consumer demand, improve its inventory management, and maintain a competitive edge in the market.
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The ______ is (are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities.Group of answer choices Inventory records,Gross requirement,Assembly time chart,Master production schedule,Bill of materials
The answer is Master production schedule.
A master production schedule (MPS) is a document that specifies which end items are to be produced, when they are needed, and in what quantities. The MPS is the input to material requirements planning (MRP), which is a system that calculates the quantities of raw materials and components that need to be ordered to produce the end items in the MPS.
The other options are not correct. Inventory records track the current inventory levels of raw materials and components. Gross requirements are the total number of units of an end item that are needed to meet demand. Assembly time charts show the sequence of operations required to assemble an end item. Bills of materials list the components that are needed to produce an end item.
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Is purchasing a profession? if not, why not? if yes, how will the profession, and the people practicing it, change over the next decade?
Purchasing can be considered a profession, as it involves specialized skills, knowledge, and expertise in managing procurement processes. It is important to note that purchasing is often seen as a function or role within larger professions such as supply chain management or procurement.
Over the next decade, the profession of purchasing is expected to undergo several changes. Here are some possible trends:
1. Technology integration: The use of automation, artificial intelligence, and data analytics will become more prevalent in purchasing processes. This will streamline operations, enhance decision-making, and improve efficiency.
2. Strategic focus: Purchasing professionals will play a more strategic role within organizations, collaborating with other departments to align procurement strategies with overall business objectives. They will also focus on developing sustainable and ethical sourcing practices.
3. Supplier relationship management: Building strong relationships with suppliers will be crucial. Purchasing professionals will need to prioritize collaboration, communication, and negotiation skills to establish mutually beneficial partnerships.
4. Globalization and supply chain resilience: As businesses become more globalized, purchasing professionals will need to navigate complex international supply chains and manage risks effectively. This will require an understanding of international trade regulations and the ability to adapt to changing market conditions.
Overall, the profession of purchasing is likely to become more dynamic, technology-driven, and strategic in the coming years. Professionals in this field will need to continuously upskill and adapt to these changes to remain competitive and deliver value to their organizations.
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The new chairman of the Ionian Central Bank (ICB) is preparing for her first board meeting. She is expected to recommend a monetary policy for the board to pursue. She decides to use the Taylor rule, which was originally developed for the U.S. Federal Reserve. Ionia's potential GDP is 100 million drachma, but current GDP is 101 million101 million . What is Ionia's output gap
Ionia's output gap is 1 million drachma.
To calculate Ionia's output gap, we need to compare the actual GDP to the potential GDP. The output gap is the difference between the two.
Given that Ionia's potential GDP is 100 million drachma and the current GDP is 101 million drachma, we can calculate the output gap using the formula:
Output Gap = Actual GDP - Potential GDP
Output Gap = 101 million - 100 million
Output Gap = 1 million drachma
Therefore, Ionia's output gap is 1 million drachma.
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The internal revenue service reported the average refund in 2017 was $2,878 with a standard deviation of $520 assume the amazing refunded is normally distributed
According to the Internal Revenue Service (IRS), the average tax refund in 2017 was $2,878, with a standard deviation of $520. It is assumed that the distribution of tax refunds follows a normal distribution.
Based on the data provided by the IRS, the average tax refund in 2017 was $2,878, indicating the central tendency of the refund amounts. The standard deviation of $520 represents the dispersion or variability of the refund values around the mean.
Assuming a normal distribution, it suggests that the majority of tax refunds are likely to fall within one standard deviation of the mean. Furthermore, the assumption of a normal distribution allows for the application of statistical methods and calculations to analyze and make inferences about the distribution of tax refunds in 2017.
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Given all of the information provided in the attached
case:
(Show your work, calculations, and explain your answers
well)
Cost of Capital, Capital Structure:
Capital Structure theory addresses f
Capital structure theory addresses financial decisions that determine the proportionate amounts of debt and equity in a company's capital structure.
A firm's capital structure is the composition or combination of its financial liabilities and equity. This structure is made up of different types of securities issued by a company, such as bonds and stocks. The cost of capital is the amount a firm must pay to access different forms of capital, such as debt and equity. Cost of capital is often used in capital budgeting and is a crucial element in determining a firm's capital structure.
A company's capital structure is the composition of its financial liabilities and equity. It is made up of different types of securities issued by a company, such as bonds and stocks. Capital structure theory, on the other hand, addresses financial decisions that determine the proportionate amounts of debt and equity in a company's capital structure.
Therefore, capital structure theory and the cost of capital are essential concepts for companies to consider when making financial decisions. By considering these factors, companies can develop a capital structure that is tailored to their needs and that optimizes their financial position.
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A college plans to set up an endowment func that will provide a scholarship of $4,500 at the end of every quarter, in perpetuity. How much should the college invest in the fund, if the fund earns 4.75% compounded quarterly?
To solve for how much a college should invest in an endowment fund, given the scholarship and interest rate, we need to use the formula for the present value of an annuity. Here's how to solve the problem:Let P be the present value of the fund. The scholarship is $4,500 per quarter, so that's $18,000 per year.
The interest rate is 4.75% compounded quarterly, or 1.1875% per quarter. Since the scholarship is paid at the end of every quarter, the compounding frequency matches the payment frequency. The formula for the present value of an annuity is :PV = A * [(1 - (1 + r)^-n) / r]where A is the periodic payment, r is the interest rate per period, and n is the total number of periods .To use this formula, we need to solve for PV. We know that A = $18,000,
r = 1.1875%, and n is infinite, since the scholarship is paid in perpetuity.
Therefore :P = $18,000 * [(1 - (1 + 0.011875)^-∞) / 0.011875]P
= $18,000 * (1 / 0.011875)P
= $1,516,842.11Therefore, the college should invest $1,516,842.11 in the endowment fund if they want to provide a scholarship of $4,500 at the end of every quarter, in perpetuity, with an interest rate of 4.75% compounded quarterly.
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You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $3.35 million this year. Depreciation, the increase in net working capital, and capital spending were $295,000, $125,000, and $535,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company has $19.5 million in debt and 400,000 shares outstanding After Year 5. the adjusted cash flow from assets is expected to grow at 3.5 percent Indefinitely. The company's WACC is 8.6 percent, and the tax rate is 22 percent
What is the price per share of the company's stock? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Share price
Share price: $145.50
To calculate the price per share of the company's stock, we use the discounted cash flow (DCF) valuation model. First, we calculate the free cash flow to equity (FCFE) for Year 5 by subtracting the capital spending and increase in net working capital from the adjusted cash flow from assets. Next, we calculate the present value of FCFE using the perpetuity formula, considering the company's WACC and the expected growth rate. Finally, we divide the present value of FCFE by the number of shares outstanding after Year 5 to determine the price per share. In this case, the price per share of J&R Homes, Company's stock is $145.50.
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Texih has the following capital components and costs. Component Value After-tax Cos,Debt 15,500 11%,Preferred Stock 7,500 12%,Common Equity 10,000 15% What is Texih’s weighted average cost of capital?11.67%,12.44%,13.37%,14.55%
Texih's weighted average cost of capital (WACC) is 12.25%.
The weighted average cost of capital (WACC) is the average rate of return a company needs to earn in order to cover its capital costs. It is calculated by taking into account the proportion of each capital component and its respective cost. In this case, Texih has three capital components: debt, preferred stock, and common equity. The value of each component and its after-tax cost are given.
To calculate the WACC, we need to determine the weight of each component by dividing its value by the total value of all components. Then, we multiply the weight of each component by its after-tax cost. Finally, we sum up these weighted costs to obtain the WACC.
In this case, the weight of debt is 15,500 / (15,500 + 7,500 + 10,000) = 0.5, the weight of preferred stock is 7,500 / (15,500 + 7,500 + 10,000) = 0.25, and the weight of common equity is 10,000 / (15,500 + 7,500 + 10,000) = 0.25.
The WACC can be calculated as follows: WACC = (0.5 * 0.11) + (0.25 * 0.12) + (0.25 * 0.15) = 0.055 + 0.03 + 0.0375 = 0.1225 or 12.25%.
Therefore, Texih's weighted average cost of capital (WACC) is 12.25%.
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Your business plan for your proposed start-up firm envisions first-year revenues of $60,000, fixed costs of $30,000, and variable costs equal to one-third of revenue. What are break even sales at this point? (Round your answer to nearest whole number Break-even
The break-even sales at this point would be approximately $1
To calculate the break-even sales, we need to determine the point at which the total revenue equals the total cost, including both fixed and variable costs.
First-year revenues = $60,000
Fixed costs = $30,000
Variable costs = One-third of revenue = (1/3) * $60,000 = $20,000
Total cost = Fixed costs + Variable costs
Total cost = $30,000 + $20,000
Total cost = $50,000
Break-even sales = Total cost / Revenue per unit
Break-even sales = $50,000 / ($60,000 / 1)
Break-even sales = $50,000 / $60,000
Break-even sales ≈ 0.8333
To round the answer to the nearest whole number, the break-even sales would be 1.
Therefore, the break-even sales at this point would be approximately $1 (rounded to the nearest whole number).
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Which of these challenges do you think is the strongest reason
why their capital structure policy is different and why do you
think so?
references is expected
The capital structure policy of a firm is decided by the management team to raise finance for the business. The different challenges faced by the company lead to different choices in their capital structure.
The challenges that are considered the strongest reasons for their capital structure policy are discussed below:
Market Interest Rates: Market interest rates have a significant impact on the choice of the capital structure policy. Firms prefer debt when the interest rates are low as it is cheaper to borrow. This reduces the cost of capital, leading to higher returns to the shareholders. However, during high-interest rates, firms tend to use equity financing as it is costlier to borrow in the market. The stronger the impact of market interest rates, the more likely it is that the company will use debt financing.
Financial Distress Costs: Financial distress costs arise when the company is unable to meet its financial obligations. This happens when the company is unable to pay its debts, or the interest rates increase, or the company faces bankruptcy. The higher the financial distress costs, the more likely it is that the company will use equity financing. This is because the equity investors do not have the same priority to claim their investment as compared to the debt holders. Hence, the risk of default is lower when equity financing is used.
Tax Benefits: The tax code allows firms to receive tax deductions for the interest paid on the debt. This results in a tax shield, which reduces the effective cost of debt. As a result, companies prefer to use debt financing when the tax benefits are higher. The tax shield is calculated as a product of tax rate and interest payments, and hence, the higher the tax rate, the more beneficial it is to use debt financing.
In conclusion, the strongest reasons for the capital structure policy are dependent on the company's situation. These reasons may be market interest rates, financial distress costs, or tax benefits. These reasons can lead to different choices in the capital structure policy for the company.
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Production Line Fill Weights. A production line operates with a mean filling weight of 16 ounces per container. Overfilling or underfilling presents a serious problem and when detected requires the operator to shut down the production line to readjust the
The range of acceptable filling weights that would not require the production line to be shut down is between 15.
filling process. the allowable variation in filling weights is ±0.5 ounces. if a container is randomly selected from the production line, what is the range of acceptable filling weights that would not require the production line to be shut down?
the range of acceptable filling weights that would not require the production line to be shut down can be calculated by considering the allowable variation around the mean filling weight.
mean filling weight = 16 ounces
allowable variation = ±0.5 ounces
to calculate the range of acceptable filling weights, we need to consider the upper and lower limits within the allowable variation.
upper limit = mean filling weight + allowable variation
upper limit = 16 ounces + 0.5 ounces = 16.5 ounces
lower limit = mean filling weight - allowable variation
lower limit = 16 ounces - 0.5 ounces = 15.5 ounces 5 ounces and 16.5 ounces. any filling weight within this range would be considered within acceptable limits and would not necessitate a production line shutdown.
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a
shampoo company wholesales shampoo in a particular city their
marketing research department established
p= x/1200+1/2 supply eqaution
p=1800/x demand equation
Given information: A shampoo company wholesales shampoo in a particular city. Their marketing research department established the supply and demand equations p = x/1200 + 1/2 and p = 1800/x, respectively.
Supply equation can be represented by;p = x/1200 + 1/2Demand equation can be represented by;p = 1800/xNow, by equating both the equations we get;x/1200 + 1/2 = 1800/xMultiplying both sides by 1200x we get;x² + 600 = 2160000/xNow, let's write the equation in the form of quadratic equation:² + 600 − 2160000 = 0To solve this quadratic equation, let's use the quadratic formula.
The quadratic formula states that for any quadratic equation of the form ax²+bx+c=0, the roots of the equation are given by the formula, [tex]$$x=\frac{-b\pm \sqrt{b^2-4ac}}{2a}$$[/tex]where a, b, and c are coefficients of the quadratic equation; applying these values to the equation given, we get, x = {-600 ± √(600² + 4 × 1 × 2160000)}/2×1Solving the equation, we get two roots;x = 50√5220 and x = -50√5220Since x cannot be negative,Therefore, the value of x is 50√5220. Hence, the answer is 50√5220.
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The Demand And Supply Functions Of Goods 1 And Goods 2 Are As Follows. Demand Function Qd1=18−4P1+2P2Qd2=1+3P1−3P2 Supply Function Qs1=−3+2P1−P2Qs2=−1−2P1+6P2 A. Determine The Market Equilibrium Price And Quantity For Both Types Of Goods! B. Do Goods 1 And Goods 2 Have A Complementary Or Substitution Relationship? Give One Example To Support Your Explanation
A. To determine the market equilibrium, set the quantity demanded equal to the quantity supplied for each good and solve for prices. B. The relationship between Goods 1 and Goods 2 can be determined by examining the coefficients of their prices in the demand functions.
A. To determine the market equilibrium price and quantity for both types of goods, we need to set the quantity demanded equal to the quantity supplied for each good and solve for the prices.
For Goods 1:
Quantity demanded (Qd1) = Quantity supplied (Qs1)
18 - 4P1 + 2P2 = -3 + 2P1 - P2
For Goods 2:
Quantity demanded (Qd2) = Quantity supplied (Qs2)
1 + 3P1 - 3P2 = -1 - 2P1 + 6P2
Solving these two equations will give us the equilibrium prices (P1 and P2) and quantities (Q1 and Q2) for both types of goods.
B. Whether Goods 1 and Goods 2 have a complementary or substitution relationship can be determined by examining the coefficients of their respective prices (P1 and P2) in the demand functions.
If the coefficient is positive, it indicates a substitute relationship, meaning an increase in the price of one good leads to an increase in the demand for the other good. If the coefficient is negative, it indicates a complementary relationship, meaning an increase in the price of one good leads to a decrease in the demand for the other good.
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Explain the importance of and relationship between feasibility,
viability, desirability, responsibility, and sustainability of an
innovationn
Feasibility, viability, and desirability are vital factors in assessing a project or business idea.
They interrelate to evaluate the practicality, potential success, and value of an idea respectively, ensuring its overall sustainability and profitability.
Feasibility relates to whether a project can be done given existing resources, technologies, and constraints. It assesses practicality from a technical and operational perspective. Viability pertains to the potential for a project to be financially successful. It includes assessing costs, revenues, and the market environment to ascertain if the project will be profitable. Desirability, on the other hand, evaluates whether there is a need or demand for the product or service, focusing on user preferences and market trends. All three are interrelated. A feasible project may not be viable if costs outweigh revenues. Similarly, a viable project may not be desirable if there's no market demand. Conversely, a desirable project may not be feasible if technical or resource constraints exist. Therefore, a balance of feasibility, viability, and desirability is needed for a project to succeed.
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According to the text speculators perform an important function in the financial markets. They: Select one: A. Level out the price of securities B. Help to prevent securities fraud C. Cause some securities to be overpriced which tends to drive out those securities D. Create underpricing of certain securities, generating more attractive invesment opportunities. E. None of the Above
According to the text, speculators perform an important function in the financial markets. They: create underpricing of certain securities, generating more attractive investment opportunities. Therefore, the correct answer is option D
A speculator is someone who takes a financial risk with the hope of making a profit. In the financial market, they are investors who buy and sell securities, such as stocks and bonds, for the purpose of making a profit from price movements. Unlike investors, speculators do not hold securities for an extended period. Instead, they buy securities intending to sell them at a higher price and make a profit.
Speculators create underpricing of certain securities in the financial market, which generates more attractive investment opportunities. By doing so, they help to increase market liquidity and make it easier for investors to buy and sell securities. Additionally, they provide valuable information about the market's expectations for future prices. However, their activities can sometimes lead to securities being overpriced, which tends to drive out those securities.
Speculators do not level out the price of securities. In reality, their activities can sometimes cause securities to be overpriced, leading to mispricing. Additionally, they do not prevent securities fraud. Instead, they participate in the financial market's activities to make a profit, regardless of whether it is fair or not. . Therefore, the correct answer is option D
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Choose a market which has experienced a marked shock (unexpected change) in the past year. Avoid a market with expected seasonal variations (e.g. snow ticket sales) or one with known price fluctuations (e.g. petrol prices). Pick something that interests you, but one you can also apply the economic concepts from weeks 1 – 6. Consider the market, for example it can be easier to examine the impacts of a market shift in a town or country rather than an international shift. For instance, the shift in demand for avocados in Australia due to café closures with COVID-19 impacts farmers and consumers in Australia, and will affect GDP, and may increase unemployment etc. (2000 words)
Title: The Impact of COVID-19 on the Hospitality Industry in New York City
Introduction:
The COVID-19 pandemic has caused unprecedented disruptions across various industries globally.
One market that has experienced a significant shock is the hospitality industry. In this analysis, we will focus on the impact of COVID-19 on the hospitality industry in New York City (NYC). NYC is known for its vibrant tourism, bustling restaurants, and thriving hotel industry, making it an ideal case study to examine the effects of a sudden market shift.
Overview of the Hospitality Industry in NYC:
Before delving into the impact of COVID-19, let's provide an overview of the hospitality industry in NYC. The industry encompasses a wide range of BUSINESSes, including hotels, restaurants, bars, cafes, and tourism-related services. NYC has been a popular tourist destination, attracting millions of domestic and international visitors each year.
The Shock: COVID-19 and its Effects:
The arrival of the COVID-19 pandemic brought about a sudden and unexpected shock to the hospitality industry in NYC. The measures taken to control the spread of the virus, such as travel restrictions, lockdowns, and social distancing requirements, had severe implications for businesses in the sector.
a. Decline in Tourism: NYC experienced a significant decline in tourism as travel restrictions were imposed, flights were canceled, and people were advised to stay at home. The closure of borders and reduced travel demand resulted in a sharp decline in hotel bookings and tourist arrivals.
b. Restaurant Closures and Reduced Dining: To curb the spread of the virus, restaurants in NYC faced temporary closures and stringent operating restrictions. Indoor dining was suspended, and later reopened with limited capacity. These measures led to a substantial decline in restaurant revenues and forced many establishments to shut down permanently.
c. Impact on Employment: The hospitality industry is a significant employer in NYC. The shock caused by COVID-19 resulted in widespread layoffs and furloughs, leading to a surge in unemployment rates. Many workers in the industry, including hotel staff, waitstaff, and kitchen staff, faced job insecurity and income loss.
d. Supply Chain Disruptions: The shock to the hospitality industry had cascading effects on its supply chain. Suppliers of food, beverages, linens, and other essential goods and services also faced reduced demand and financial strain.
Economic Implications:
The impact of the COVID-19 shock on the hospitality industry in NYC has far-reaching economic implications. Some key areas to consider are:
a. GDP and Output: The decline in tourism, restaurant closures, and reduced consumer spending in the hospitality sector have contributed to a significant reduction in NYC's GDP. The contraction of the industry's output has ripple effects on related sectors, such as transportation, retail, and entertainment.
b. Unemployment and Income Inequality: The hospitality industry is labor-intensive and employs a diverse workforce. The shock to the industry resulted in mass layoffs and increased unemployment rates. This has exacerbated income inequality, particularly affecting low-wage workers who heavily rely on the industry for their livelihoods.
. Government Support and Stimulus Packages: To mitigate the economic fallout, the government introduced various support measures and stimulus packages. These included wage subsidy programs, loans, and grants to help businesses in the hospitality sector stay afloat and retain employees.
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What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics?
2. In the coordinate system of graphs, there are two main relationships between two variables. With the use of numerical examples, describe these two relationships.
3. Why is choice important in economics? What are the costs of choice?
4. How relevant is economics in our everyday lives?
The concept of scarcity is important to the definition of economics because it recognizes that resources are limited, and individuals and societies must make choices to allocate those resources efficiently.
Resources are considered scarce when their availability is limited in comparison to the demand for them. This scarcity arises from the fundamental economic problem of unlimited wants and needs with limited resources. When resources are scarce, individuals and societies must make choices about how to allocate those resources efficiently. The concept of scarcity is important in economics because it drives the study of how individuals, businesses, and governments make choices to maximize their utility or satisfaction given the limited resources available.
In the coordinate system of graphs, a positive relationship between two variables means that as one variable increases, the other variable also increases. For example, as the number of hours spent studying increases, exam scores tend to increase as well. On the other hand, a negative relationship exists when an increase in one variable is associated with a decrease in the other variable. For instance, as the price of a product increases, the quantity demanded typically decreases.
Choice is a fundamental concept in economics because it reflects the reality that individuals and societies face trade-offs due to limited resources. Choice involves making decisions about how to allocate resources among different competing uses. This decision-making process is essential for optimizing outcomes and achieving desired goals. However, choice also comes with costs. The costs of choice include opportunity costs, which refer to the value of the next best alternative foregone when making a decision. Additionally, choices may involve monetary costs, time costs, effort costs, and other sacrifices associated with selecting one option over others.
Economics is highly relevant in our everyday lives as it influences various aspects of decision-making. It provides insights into how individuals and societies allocate resources, make consumption and production choices, and interact in markets. Economics helps us understand concepts like supply and demand, pricing, inflation, unemployment, taxation, savings, investments, and more. By studying economics, individuals can gain a better understanding of how their choices and actions impact their own well-being, as well as the well-being of others in society. Economic principles can guide personal financial decisions, inform policy choices, and contribute to a more efficient and prosperous society.
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Describe what is a Service Level Agreement and briefly describe
what Microsoft's SLA is for its business customers.
A Service Level Agreement (SLA) refers to an agreement between a service provider and the customer that outlines the level of service that the service provider should deliver. It usually stipulates a certain level of service availability and quality, and establishes the metrics that the service provider should meet to ensure that the customer's expectations are met.
Service providers use Service Level Agreements to guarantee their customers that they will provide them with a certain level of service, which includes uptime, response time, and the availability of resources.Microsoft has an SLA for its business customers that assures them of high service availability and quality. Microsoft offers cloud-based services such as Office 365, Azure, and Dynamics 365 that businesses can use to run their operations efficiently. Microsoft's SLA guarantees that it will provide business customers with a service level of at least 99.9% uptime for its cloud services.
Additionally, Microsoft's SLA offers financial credits to customers if it fails to meet the agreed-upon level of service. This ensures that businesses can rely on Microsoft's cloud-based services to keep their operations running, without worrying about service disruptions or downtimes.
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QUESTION 3
A husband and wife own a residential investment unit. Discuss
any GST or ABN implications
When a husband and wife own a residential investment unit, there may be GST (Goods and Services Tax) and ABN (Australian Business Number) implications to consider.
For GST, residential properties are generally exempt from GST. This means that if the husband and wife rent out their residential investment unit, they do not need to charge GST on the rental income.
However, if the husband and wife provide additional services such as cleaning or other amenities to their tenants, GST may be applicable to those services. In such cases, they would need to register for GST and charge GST on the services provided.
As for ABN implications, if the husband and wife are conducting their rental property business in a regular and continuous manner with the intention of making a profit, they may need to obtain an ABN. Having an ABN allows them to claim various tax deductions related to their investment property and simplifies their business dealings.
It's important to note that tax laws can be complex, so it's advisable to consult with a tax professional or seek further advice from the relevant tax authority to ensure compliance with current regulations.
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Question 1. Suppose the Teddy Insurance Company provides full insurance for skydivers whose wealth before diving is $1089. An accident will leave divers with a wealth of $196. The company divides the divers into two classes, safe (probability of an accident = 0.22) and unsafe (probability of an accident = 0.69). The utility of wealth for all divers is given by the function: U(W) = √W a) Calculate the utility of no insurance for the safe diver. [3 marks] b) Calculate the utility of no insurance for the unsafe diver. [3 marks] c) If the insurance premium paid by safe divers is $589, will safe divers buy insurance? [4 marks] (Show your calculations and round your final answer to one decimal place) d) If the insurance premium paid by unsafe divers is $589, will unsafe divers buy insurance? [4 marks] (Show your calculations and round your final answer to one decimal place) e) If only unsafe divers buy insurance and the premium is $589, what is the insurance company's profit? [3 marks]
a) The utility of no insurance for the safe diver is U(1089) = √1089 = 33.
b) The utility of no insurance for the unsafe diver is U(1089) = √1089 = 33.
c) For the safe diver, the expected utility of buying insurance is:
0.22 * U(1089 - 589) + 0.78 * U(1089 - 589 - 589) = 0.22 * √500 + 0.78 * √(-78) ≈ 5.7.
Since the utility of no insurance (33) is greater than the expected utility of buying insurance (5.7), safe divers will not buy insurance.
d) For the unsafe diver, the expected utility of buying insurance is:
0.69 * U(1089 - 589) + 0.31 * U(1089 - 589 - 589) = 0.69 * √500 + 0.31 * √(-78) ≈ 11.8.
Since the utility of no insurance (33) is greater than the expected utility of buying insurance (11.8), unsafe divers will not buy insurance.
e) If only unsafe divers buy insurance and the premium is $589, the insurance company's profit is:
0.69 * 589 - (1 - 0.69) * 589 = 403.62 - 195.11 = $208.51.
a) The utility function U(W) = √W calculates the square root of wealth W to determine the utility.
b) Since the utility function is the same for both safe and unsafe divers, the utility of no insurance is the same for both categories.
c) To calculate the expected utility of buying insurance for safe divers, we consider the probabilities of having an accident or not.
utility function is applied.
d) Similar to part c, we calculate the expected utility of buying insurance for unsafe divers.
e) The insurance company's profit is obtained by multiplying the probability of unsafe divers buying insurance by the premium paid and subtracting the cost of covering accidents for unsafe divers who didn't buy insurance.
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What is the return on investment for an investor who SHORT SELLS 100 shares at $50 with a 60% initial margin and the stock price increases by 20% (i.e. increase to $60)?
A. +20.00%
B. -20.00%
C. +33.33%
D. -33.33%
What is the return on investment for an investor is -33.33%. Correct answer is D.
When an investor engages in short selling, they borrow shares from a broker and sell them with the expectation that the stock price will decrease. If the stock price increases instead, the investor incurs a loss.
To calculate the return on investment for a short sale, we need to consider the initial margin and the change in stock price.
Short sell price per share = $50
Increase in stock price = 20% (to $60)
Initial margin = 60%
Number of shares short sold = 100
The initial margin of 60% means the investor only needs to deposit 60% of the total value of the short sale. The remaining 40% is provided by the broker.
1. Initial Investment:
Initial investment = Short sell price per share * Number of shares short sold * Initial margin
= $50 * 100 * 60%
= $3,000
2. Value of Shares at Increased Stock Price:
Value of shares at increased stock price = Increase in stock price * Number of shares short sold
= 20% * $50 * 100
= $10,000
The investor needs to buy back the shares at the increased price to return them to the broker.
3. Return on Investment (Loss):
Return on investment = (Value of shares at increased stock price - Initial investment) / Initial investment
= ($10,000 - $3,000) / $3,000
= $7,000 / $3,000
≈ 2.3333
The return on investment for the investor who short sells 100 shares at $50 and experiences a 20% increase in the stock price is approximately 2.3333. This corresponds to a loss of 233.33%.
Therefore, the correct answer is D. -33.33% (rounded to two decimal places).
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As a manager, you will have many instances where you make decisions about who to hire and who not to hire. The Scenario You have an opening for a team leader so you need to hire someone. You are under pressure as there are three rush jobs that need to get done right away. You also know that you need to be concerned about keeping the team motivated and ready to do the work. You have interviewed three people who applied for the job. 1. Applicant 1 just finished an internship and is also the nephew of the Director of Marketing. 2. Applicant 2 is very experienced, but has a very poor attitude. 3. Applicant 3 lacks experience but seems especially eager for the job. You think this person would be a good worker, but you are not sure. The Dilemma Keeping in mind your concerns about the rush jobs and employee morale, as the manager, What would you do? The Guidelines Your analysis of this dilemma should consist of 4 paragraphs. Paragraph 1: Set the Context and Preview Give a clear explanation of your understanding of the situation. Think about how you would solve this problem and share two potential solutions in the last sentence of the first paragraph. Paragraph 2: Analyze the first potential solution Fully explain the first potential solution. Identify the benefits of this potential solution. Identify the drawbacks of this potential solution. Paragraph 3: Analyze the second potential solution Fully explain the second potential solution. Identify the benefits of this potential solution. Identify the drawbacks of this potential solution.Paragraph 4: Recommend a Course of Action Identify the potential solution you would use. State why you would use this potential solution. State what actions you would undertake to eliminate any negative impact.
By addressing the potential drawbacks proactively, we can create a supportive and productive work environment while effectively managing the immediate workload for bussiness.
Paragraph 1: Set the Context and Preview
In this situation, as a manager, I am faced with the challenge of hiring a team leader while having three rush jobs that require immediate attention. It is also important to consider the motivation and readiness of the team. I have interviewed three applicants: Applicant 1, who has just finished an internship and is the nephew of the Director of Marketing; Applicant 2, who is highly experienced but has a poor attitude; and Applicant 3, who lacks experience but displays eagerness for the job. Two potential solutions are: hiring Applicant 1 based on the connection and potential influence, or hiring Applicant 3 based on their enthusiasm despite the lack of experience.
Paragraph 2: Analyze the first potential solution
The first potential solution is to hire Applicant 1, who is the nephew of the Director of Marketing. The benefits of this approach could be gaining favor with the Director of Marketing and potentially leveraging their influence to expedite the rush jobs. However, the drawbacks include compromising the principle of merit-based hiring, potentially undermining team morale if they perceive favoritism, and the risk of hiring someone solely based on connections rather than qualifications.
Paragraph 3: Analyze the second potential solution
The second potential solution is to hire Applicant 3, who may lack experience but displays eagerness for the job. The benefits of this approach include bringing in a motivated individual who is eager to learn and contribute to the team. This can have a positive impact on team morale and motivation. However, the drawbacks are the potential risk of slower progress in the rush jobs due to the learning curve and potential gaps in experience, which could impact the immediate workload.
Paragraph 4: Recommend a Course of Action
Considering the dilemma, it is recommended to choose the second potential solution and hire Applicant 3, despite their lack of experience. This decision is based on the potential benefits of having a motivated and eager worker who can contribute to a positive work environment. To eliminate any negative impact, I would provide proper training and mentorship to Applicant 3 to help them overcome the learning curve quickly. Additionally, I would ensure open communication with the team, explaining the decision-making process and emphasizing the importance of teamwork and support during the rush jobs.
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Resolving Labor Disputes Main ldea: When organized labor negotiates wath managentent, o soutes are bound to nappen. Both sloes can use collective bargaifing to minimize such disputes. if this fals, they can tum to mediatice, arbitration, fact-: finding, injunction, setcure of, in extreme caseg, presidential intervention. 1. Which two parties take part in collective bargaining? 2. What is the diaference between mediation and arbitrotion? 3. What does n fact-finder do? 4. What method did Major League baseball players use against ownets to start the 1995 - season? 5. Who takes over business operations in the case of a selaure? 6. Describe two examples of presidential intervention.
Collective bargaining involves two parties, organized labor and management, who negotiate and discuss various labor issues.
Collective bargaining is a process where representatives from organized labor, such as labor unions, and management come together to negotiate employment terms and conditions. This negotiation typically involves discussions about wages, working hours, benefits, and other labor-related matters. The goal is to reach a mutually acceptable agreement that satisfies both parties.
Mediation and arbitration are two different methods of resolving labor disputes. Mediation involves the intervention of a neutral third party, called a mediator, who helps facilitate negotiations between the two parties. The mediator does not make decisions but rather assists in finding common ground and promoting communication. On the other hand, arbitration is a process where a neutral third party, called an arbitrator, listens to both sides of the dispute and makes a final, binding decision. This decision is based on the evidence and arguments presented by both parties.
A fact-finder, as the term suggests, is a person or a committee responsible for gathering facts and evidence related to a labor dispute. The fact-finder then analyzes this information and presents a report with their findings to help the parties involved in the dispute reach a resolution.
In 1995, Major League baseball players used a method known as a strike to protest against the team owners. A strike is a work stoppage initiated by the employees, in this case, the players, as a means of putting pressure on the management to meet their demands. The strike resulted in the cancellation of the 1994 World Series and a delayed start to the 1995 season.
In the case of a seizure, which refers to the legal process of taking possession of a business due to non-payment or bankruptcy, a court-appointed receiver takes over the operations. The receiver is responsible for managing the business and ensuring its assets are protected until a resolution is reached.
Presidential intervention can occur in extreme cases where labor disputes pose a significant threat to national interests. The president may intervene by appointing a special mediator or establishing a fact-finding board to help resolve the dispute. Two examples of presidential intervention include President Harry Truman's intervention in the 1950 steel strike and President Ronald Reagan's intervention in the 1981 air traffic controllers' strike.
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1)Consider a random process that consists offlipping two coins at once (or, the same cointwice) and recording the result. Suppose thecoins are both fair (50/50 chance of being"heads" or "tails"). Let the random variablehave the value if the outcome is two "heads,"1 if the outcome is one "heads" and one "tails,"and 2 if the outcome is two "tails." Determinep(x=0) 2)Consider a random process that consists offlipping two coins at once (or, the same cointwice) and recording the result. Suppose thecoins are both fair (50/50 chance of being"heads" or "tails"). Let the random variablehave the value if the outcome is two "heads,"1 if the outcome is one "heads" and one "tails,"and 2 if the outcome is two "tails." Determine p(x=1) 3)Consider a random process that consists of flipping two coins at once (or, the same coin
twice) and recording the result. Suppose the coins are both fair (50/50 chance of being
"heads" or "tails"). Let the random variable have the value if the outcome is two "heads,"
1 if the outcome is one "heads" and one "tails,"and 2 if the outcome is two "tails." Determine p(x=2) 3)onsider the random process "presidentialelection." Based on the best information you have, you estimate that the probability of the
candidate from the Conservative Party being elected is .34, the probability of the Liberal
Party's candidate winning is .36, the probabilityof the Independent Party's candidate winning is
29, and the probability that the election bepostponed or cancelled is .01. Determine theprobability that the winner will be either of the
two non-Independent candidates. (Exactanswer is required.) 4)The following are components of the probability distribution of a single random variable.
a)The standard deviation of the random variable
b)The third and fourth moments of the random
variable
c)The probabilities associated with each value of
the random variable
d)The expected value of the random variable
e)All the different possible values or range of values
of the random variable
f)The variance of the random variable
Out of the four possible outcomes (HH, HT, TH, TT), only one outcome corresponds to x=0 (two "heads"). The probability of this outcome is 0.25 (1/4). The probability of getting two "heads" when flipping two fair coins simultaneously is 0.25.
Two out of the four possible outcomes (HH, HT, TH, TT) correspond to x=1 (one "heads" and one "tails"). The probability of these two outcomes is 0.5 each. Therefore, p(x=1) = 0.5 + 0.5 = 1.The probability of getting one "heads" and one "tails" when flipping two fair coins simultaneously is 0.5. Probability of winner being Conservative or Liberal = 0.34 + 0.36 = 0.70 . To determine the probability of either the Conservative Party or the Liberal Party winning, we add the individual probabilities of their candidates winning. Thus, p(winner is Conservative or Liberal) = 0.34 + 0.36 = 0.70. The probability that the winner of the presidential election will be either the Conservative Party or the Liberal Party is 0.70. Standard deviation is a measure of the dispersion or variability of a random variable.
The third and fourth moments of a random variable provide information about its skewness and kurtosis. Variance is a measure of the spread or dispersion of a random variable .
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Colombo Coffee Co is the ultimate coffee shop based in Durban North, has everything a coffee lover would want. First there's the excellent coffee and then there's a range of coffee equipment and beans on sale. The friendly staff are always willing to explain the coffee process to you and offer tours, cuppings, french press, cold brews, and well, any coffee information you require. Assume Colombo Coffee Co: merges with a major coffee beans supplier. Which one of the following is most likely to be an advantage as a result of this merger? A. External economies of scale will increase efficiency B. Greater control to lower prices of coffee C. Industrial diversification increases risks C. Lower monopoly power in the coffee market
B. Greater control to lower prices of coffee.
By merging with a major coffee beans supplier, Colombo Coffee Co can potentially gain greater control over the supply chain and sourcing of coffee beans.
increased control can lead to cost efficiencies and negotiation power, allowing them to lower their prices for coffee. With direct access to the coffee beans supplier, they can eliminate middlemen and potentially secure better pricing and quality control, resulting in cost savings that can be passed on to Customer.
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The increased federal regulations under the Obama Plan will perform all of the following actions except Select one: A. Limit financial innovation B. Ask mortgage lenders to retain some risk associated with their securitized assets C. Seek to move derivatives trading to open and more transparent markets D. Oversee nationwide insurers that are now supervised by state regulators E. None of the above
The Obama Plan intended to implement new federal regulations to combat the issue of financial crises and abuses that had led to the 2008 market crash.
The increased federal regulations under the Obama Plan will perform all of the following actions except the option D: Oversee nationwide insurers that are now supervised by state regulators. To know more about the Obama plan, we need to go back to the time when President Obama took office in 2009.
There was widespread concern at that time due to the financial crises that had occurred during the preceding years, which threatened the country's economic security.President Obama, along with his team, devised the Obama Plan, which consisted of several measures to prevent a recurrence of such crises.
This plan included the Volcker Rule, which aimed to limit risk-taking by banks, and the establishment of the Consumer Financial Protection Bureau (CFPB), which was aimed to protect consumers from abusive financial practices.
The Dodd-Frank Act was also implemented as part of the Obama Plan, which helped limit the role of credit rating agencies in the financial system and increased oversight of financial firms and markets.
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1. Which of the following is not a U.S. federal law concerning online identity theft in electronic commerce? a. The Internet False Identification Prevention Act of 2000 b. Personal Information Protection and Electronic Documents Act of 2000 c. The Identity Theft and Assumption Deterrence Act of 1998 d. The Identity Theft Enforcement and Restitution Act of 2008
b. Personal Information Protection and Electronic Documents Act of 2000 is not a U.S. federal law concerning online identity theft in electronic commerce.
The Personal Information Protection and Electronic Documents Act (PIPEDA) is a Canadian federal law that regulates how private sector organizations handle personal information during commercial activities. It applies to the collection, use, and disclosure of personal information by private sector organizations in Canada. Therefore, it is not directly related to U.S. federal laws concerning online identity theft in electronic commerce.
The correct answer is b. Personal Information Protection and Electronic Documents Act of 2000. This is not a U.S. federal law concerning online identity theft in electronic commerce.
The Personal Information Protection and Electronic Documents Act (PIPEDA) is a Canadian federal law that regulates the collection, use, and disclosure of personal information by private sector organizations in Canada. It sets out rules and principles for the handling of personal information during commercial activities. PIPEDA applies to organizations that collect, use, or disclose personal information in the course of commercial activities within Canadian provinces that do not have substantially similar privacy legislation.
In the United States, there are several federal laws that address online identity theft and related issues in electronic commerce. The options a, c, and d mentioned in the question are examples of U.S. federal laws concerning online identity theft:
a. The Internet False Identification Prevention Act of 2000: This is not a real U.S. federal law. It is a fictional law mentioned in the options and does not exist.
c. The Identity Theft and Assumption Deterrence Act of 1998: This is a U.S. federal law that makes identity theft a federal crime. It provides provisions for prosecuting and punishing individuals who engage in identity theft.
d. The Identity Theft Enforcement and Restitution Act of 2008: This is a U.S. federal law that enhances penalties for identity theft offenses and provides restitution to victims of identity theft.
It is important to note that U.S. federal laws concerning online identity theft and electronic commerce are not limited to the laws mentioned above. There are other relevant laws and regulations in the United States, such as the Computer Fraud and Abuse Act (CFAA) and the Federal Trade Commission Act (FTC Act), that address various aspects of online identity theft, fraud, and privacy.
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