a) Calculation of value of a RIC share using the constant growth model:Given, Next period's dividend (D1) = Current dividend × (1 + growth rate) = 0.45 × 2 = $0.9r = Required rate of return - growth rate = 14% - 2.5% = 11.5%.
Now,Constant growth model formula is: P0 = D1 / (r - g)Where, P0 = Current share priceD1 = Next period's dividend= $0.9r = Required rate of return - growth rate= 11.5%-0.45 = 11.05%Putting the values, P0 = $0.9 / (0.1105) ≈ $8.14b) Calculation of the value of Ridley's using the industry P/E1 ratio:Industry P/E1 ratio = 15Where,E1 = next period earningsTherefore,[tex]P0 = E1 × P/E ratioP0 = (EPS1 × N) × P/E ratio= [(EPS1 / D1) × D1 × N] × P/E ratio= [Payout ratio × (1 - g) × EPS1 / (r - g)] × N × P/E ratio= [0.45 × (1 - 0.045) × 0.75 / (0.11 - 0.045)] × 319490 × 15≈ $6.18c)[/tex]
Justification for the difference between the two values calculated in parts a and b, if any:The difference between the values calculated in parts a and b is $1.96 ($8.14 - $6.18), which indicates that the constant growth model results in a higher valuation compared to the industry P/E1 ratio model. The difference could be because the constant growth model assumes that dividends grow at a constant rate indefinitely, while the industry P/E1 ratio model calculates the share price based on the earnings and P/E ratio in the next period.
The constant growth model is best suited for mature companies with stable growth, while the industry P/E1 ratio model is best suited for companies in the growth phase.d) Calculation of the weighted average cost of capital:WACC = [E / (E + D)] × Re + [D / (E + D)] × Rd × (1 - t)Where,E = market value of equity= $2 × 319490= $638,980D = market value of debt= $290,000Re = required rate of return on equity=[tex]rRF + β × (rM - rRF)= 2.5% + 0.60 × 14%= 11.3%[/tex]Rd = required rate of return on debt= 8.5%t = corporate tax rate= 30%Putting the values, WACC [tex]= [(638980 / (638980 + 290000)) × 11.3%] + [(290000 / (638980 + 290000)) × 8.5% × (1 - 0.30)]= 7.45% + 2.75%≈ 10.20%e) .[/tex]
Calculation of the initial outlay for the expansion project adjusted for floatation costs:Initial outlay = Amount raised × (1 - floatation cost)Putting the values, Initial outlay = $15,000,000 × (1 - 1.5%)≈ $14,775,000f) Calculation of the price of one bond, assuming a face value of $1000:YearCouponPayment DiscountFactor Present Value[tex]01221(11/2)% $55 0.9524 $52.43152324(11/2)% $55 0.9070 $49.88632526(11/2)% + $1000 0.8638 $1,065.7926[/tex]Total $1,168.11Price of one bond = $1,168.11Therefore, the price of one bond, assuming a face value of $1000 is $1,168.11.
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Selma Shalom had the following income for the year of assessment ending 28 February 2022.
Item
Salary
Amount N$
84 000
Director's Fee
60 000
Interest from FNB
11 000
Interest from ABSA (SA)
23 000
45 000
Dividends
35 000
Legacy received
15 000
Gift from a friend
40 000
18 000
Profit on sale of a house Share premium receipt
Subsidy on soil erosion
30 000
Annuity from a UK Insurance company
10 000
Lump sum from employer
50 000 22 000
Profit from business branch Kenya
Compensation for damages to office block
120 000
Owned by a property investor Sale of shares held as:
Investment
80 000
Trading Stock
65 000
Bet win on results of a soccer match
7 500
15 000
Interest from Bank Windhoek
Restraint of trade payment received
Profit from Namibian Business branch
25.00
Gross income
55 000
?
Calculate the gross income of Selma Shalom for the year of assessment ending at 28 February 2022. As part of your answer provide a reason for every item excluded from gross income.
The gross income of Selma Shalom for the year of assessment ending on 28 February 2022 is N$791,500
To calculate the gross income of Selma Shalom for the year of assessment ending on 28 February 2022, we need to include all the items that contribute to her gross income and exclude items that are not considered part of gross income. Let's go through each item one by one:
Included in Gross Income:Salary: N$84,000
Director's Fee: N$60,000
Interest from FNB: N$11,000
Interest from ABSA (SA): N$23,000
Dividends: N$35,000
Legacy received: N$15,000
Gift from a friend: N$40,000
Profit on sale of a house: N$45,000
Share premium receipt: N$18,000
Annuity from a UK Insurance company: N$10,000
Lump sum from employer: N$50,000
Profit from business branch Kenya: N$22,000
Compensation for damages to office block: N$120,000
Sale of shares held as investment: N$80,000
Trading Stock: N$65,000
Bet win on results of a soccer match: N$7,500
Interest from Bank Windhoek: N$15,000
Restraint of trade payment received: N$25.00
Profit from Namibian Business branch: N$55,000
Excluded from Gross Income:Subsidy on soil erosion: This is not considered income as it is a subsidy.
Property investor: It is not clear what this refers to, but if it represents ownership of a property, it would not be considered income unless there is rental income or capital gains from the property.
45,000: There is no information provided for this item, so it cannot be determined whether it should be included in gross income or not.
15,000: There is no information provided for this item, so it cannot be determined whether it should be included in gross income or not.
N$25.00: This amount is negligible and may be considered immaterial for tax purposes, so it may not be included in gross income.
Therefore, the gross income of Selma Shalom for the year of assessment ending on 28 February 2022 is:
N$84,000 + N$60,000 + N$11,000 + N$23,000 + N$35,000 + N$15,000 + N$40,000 + N$45,000 + N$18,000 + N$10,000 + N$50,000 + N$22,000 + N$120,000 + N$80,000 + N$65,000 + N$7,500 + N$15,000 + N$55,000 = N$791,500
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What are the features of federal deposit insurance? A. One bank experiences a reduction in funds that is matched by the increase in funds by another bank. B. Depository institutions' premiums are base
Federal Deposit Insurance (FDI) is a program offered by the federal government to protect depositors from potential losses arising from a depository institution's insolvency. In the case of a bank failure, the FDIC guarantees bank deposits for up to $250,000 per account holder.
Here are the features of federal deposit insurance:
1. Safe and Secure Deposits: FDIC guarantees bank deposits of up to $250,000 per account holder. This limit applies to individual, joint, trust, and retirement accounts at FDIC-insured banks. The insurance coverage helps to safeguard depositors' funds.
2. Protects Banks: FDI protects the banks and other depository institutions from potential financial crises by ensuring that depositors' funds are safe and secure.
3. Premium-Based System: Depository institutions' premiums are based on their deposit insurance fund's risk level. The system charges higher premiums to the institutions that pose a higher risk of defaulting. Conversely, institutions with lower risks pay lower premiums.
4. Reduction of Risk: The federal deposit insurance system helps to reduce the risk of bank runs. During a bank run, depositors may withdraw their funds from a bank due to fears of insolvency. However, with FDI, depositors have insurance coverage and are more likely to leave their funds in the bank.
5. Protects the Economy: The FDIC plays a crucial role in the overall financial system and the economy. It ensures that depositors' funds are safe and secure, thereby maintaining confidence in the financial system. In turn, this helps to prevent financial crises and economic downturns.
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Select the formula reference in the last column of the table and compute the profit margin ratio for all five years. (Enter your answers as percentages rounded to the nearest tenth percent, X.X\%.) (C
The profit margin ratio for all five years is computed to determine the profitability of company.
Profit Margin Ratio = (Net Income / Net Sales) * 100
Compute the profit margin ratio for each year by dividing the net profit by the net sales.
To calculate the net profit, subtract the cost of goods sold and operating expenses from the net sales.
To find the net sales, subtract any sales returns or discounts from the gross sales.
To determine the cost of goods sold, subtract the opening inventory from the closing inventory and add any purchases made during the year.
Add up all operating expenses, including salaries, rent, utilities, and other expenses.
Divide the net profit by the net sales and multiply by 100 to get the profit margin ratio.
Repeat the calculations for each year.
Compare the profit margin ratios across the years to assess the company's profitability trend.
Identify the net income and net sales figures for each year from the table.
Substitute the values into the formula for each year to calculate the profit margin ratio.
Divide the net income by net sales, then multiply by 100 to express the ratio as a percentage.
Round the results to the nearest tenth percent.
By following these steps, you can calculate the profit margin ratio for each year in the table.
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Economic activity declines during these two stages of the
business cycle:
Select one:
a.
Stages 1 and 2
b.
Stages 2 and 3
c.
Stages 3 and 4
d.
Stages 1 and 4
e.
Stages 1 and 3
The answer to the question is stages 1 and 2.
There are four stages of the business cycle.
These stages are the boom, recession, trough, and expansion.
The business cycle is a graph that depicts the fluctuations of economic activity over time. These fluctuations are a normal part of an economic system.
The first stage of the business cycle is known as the expansion stage.
It's characterized by a rise in economic activity. During this stage, businesses are expanding, employment rates are increasing, and consumer spending is rising.
The second stage is called the peak.
This is the point when the economy reaches its maximum point before it begins to decline. Economic activity starts to decrease during this stage, and businesses start to reduce their output and employees.
The third stage of the business cycle is known as the recession stage.
It's characterized by a decrease in economic activity. During this stage, businesses are reducing their output and employees, and consumer spending is falling.
The fourth stage is the trough.
This is the lowest point in the business cycle. It's characterized by low economic activity. The economy is at a standstill during this stage, and businesses are not expanding or hiring employees.
economic activity declines during the first two stages of the business cycle.
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prime costs include direct material and group of answer choices direct labor factory overhead work in process period costs
Prime costs specifically include direct material and direct labor, while factory overhead, work in process, and period costs are distinct concepts with different implications in cost accounting.
Prime costs are the direct costs directly associated with the production of goods or services. They typically consist of the cost of direct materials, which are the raw materials or components directly used in the production process, and direct labor, which is the cost of the workforce directly involved in the production process. Factory overhead, also known as manufacturing overhead, refers to indirect costs that are not directly tied to specific units of production, such as the cost of utilities, rent, equipment maintenance, and indirect labor. While factory overhead is an essential component of overall production costs, it is not included in prime costs. Work in process refers to goods that are currently in the production process but not yet completed. It is a term used in the context of inventory and production management but does not directly relate to prime costs.
Period costs, on the other hand, are non-production costs that are not directly tied to the manufacturing process. They include selling and administrative expenses, such as sales commissions, marketing expenses, and office rent. Period costs are not considered part of prime costs.
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DO NOT COPY FROM OTHER CHEGG ANSWER
Refer to the Chapter 23 textbook reading, which discusses the aggregate demand curve and reasons it might shift.
Additionally, find an article using your subscription to the Wall Street Journal pertaining to the shift in aggregate demand for some product or service.
In your post, summarize the article and discuss the following:
Review Section 23-3b, Table 1 in the textbook, which lists four specific factors that might cause a shift in aggregate demand. Which of the four factors explain the shift occurring in the WSJ article?
Discuss what aggregate demand factors are seen at work in today's economy?
What might this mean for prices? For quantity of output?
The aggregate demand curve refers to the quantity of total output, which the economy is willing and able to purchase at different price levels. The curve slopes downwards as the price of output increases, all other things constant. This is due to the income effect and the substitution effect:
the income effect states that when prices rise, consumers have less disposable income, so they reduce their purchasing power. The substitution effect is the process of finding cheaper alternatives as prices rise, which causes people to switch away from the more expensive goods and services.In the WSJ article "Amid Covid-19 Surge, Arizona and Texas Orders More Restrictions," it explains how the rise in Covid-19 cases and hospitalizations has led to the imposition of further restrictions on economic activity. Many individuals and companies are unable or unwilling to travel, engage in entertainment activities, and engage in other discretionary spending as a result of the pandemic.
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Investing in sectors or companies whose ESG performance is better relative to their peers is referred to as: a. Impact investing. b. Best-in-class sustainable investing. c. Thematic investing. d. Norms-based sustainable investing. e. Greenwashing
Best-in-class sustainable investing is referred to investing in sectors or companies whose ESG performance is better relative to their peers.What is Best-in-Class Sustainable Investing?
Best-in-class sustainable investing is a strategy that selects investments based on a company's environmental, social, and governance (ESG) rating relative to its peers. The approach seeks to identify the best-performing companies in terms of ESG criteria within their sectors or industries. Best-in-class investing takes a more qualitative approach, considering a variety of factors, including the quality of a company's governance practices, its labor standards, environmental impact, and management of social and community relationships.Among the five options given, the right option for the answer is b. Best-in-class sustainable investing.What is Impact Investing?
Impact investing refers to investments made in companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return. Impact investing can target a range of returns from below market to market rate, depending on investors' strategic goals.A Thematic InvestingThematic investing is an investment strategy that focuses on identifying and investing in particular themes or trends that the investor believes will perform well in the market.
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9. Medicare pays hospital outpatient claims using the APC methodology. a. What are the two portions of the payment for each APC? What percentage share of the total payment is attributable to each? b. How does the wage index impact the APC payment rate?
a. Two portions of the payment for each APC:
1. Facility - related payment:
This portion of payment covers the cost of the hospital outpatient department to provide resources such as drugs, supplies, equipment, and staff. This percentage is between 40% to 70% of the total APC payment, depending on the APC code.
2. Professional payment:
This portion of payment covers the cost of physician and other healthcare providers' time and resources involved in the patient's care. This percentage is between 30% to 60% of the total APC payment, depending on the APC code.
b. The wage index is an adjustment to APC payment rates to account for regional differences in labor costs. Each hospital is assigned a wage index value based on the labor costs in their specific geographic location.
Higher-wage regions have higher wage index values, which increase the payment rate for each APC. Lower-wage regions have lower wage index values, which decrease the payment rate for each APC.
The wage index can impact the APC payment rate by either increasing or decreasing it depending on the geographic location of the hospital.
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if a sale agreement contains a financing contingency,
under what circumstances can the buyer back out of the contract
If a sale agreement contains a financing contingency, the buyer can back out of the contract under some circumstances. The buyer may be able to cancel the contract if they are unable to secure financing within the stipulated time frame, or if the lender has approved a loan with conditions that the buyer is unable to satisfy within the prescribed period.
A contingency provision in a real estate contract specifies that the transaction is conditional upon a particular circumstance. These contingency provisions may contain one or more conditions that must be met for the deal to go through. In the case of a financing contingency, the transaction is conditional upon the buyer obtaining financing.There are various situations in which a buyer may be able to back out of a real estate transaction due to financing contingency provisions. If the buyer is unable to get the necessary financing to buy the property, for example, the deal can be terminated. A buyer could also back out if the lender approves a loan but with conditions that the buyer is unable to meet within the specified time frame.
Furthermore, if the buyer is unable to provide proof of financing within the time frame specified in the contingency provision, the deal could also be terminated. Finally, if the buyer decides not to purchase the property due to the loan's terms and conditions, the contingency provision could also be used to terminate the deal. Therefore, a financing contingency provision provides a buyer with the opportunity to back out of a real estate deal if they are unable to obtain the necessary financing.
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On October 7, 2022 (Friday), you purchased $100,000 of the
following T-bill: Maturity Bid Asked Chg Asked Yld
1/26/2023 3.408 3.398 +0.015 ??? Calculate your purchase price,
and the Asked Yield.
The purchase price and asked yield of T-bills worth $100,000 with maturity dates of January 26, 2023, bid of 3.408, asked of 3.398, and an increase of 0.015 are to be calculated.
The asked yield is the percentage yield at which a dealer is willing to sell a Treasury bill. The difference between the bid and ask prices is the bid-ask spread. The bid price is the price that a dealer is willing to pay for a Treasury bill.The purchase price of the T-bill can be calculated using the following formula
:P = (FV x (1 - R x T/360))where,
P = Purchase Price
FV = Face Value
R = Interest Rate
T = Number of Days until MaturitySubstituting the values:
P = (100000 x (1 - 3.398 x 111/360))
= 98,757.30.
Therefore, the purchase price of the T-bill is 98,757.30.The yield can be calculated as follows:
Yield = ((FV-P)/P) x (360/T)) x 100Substituting the values:
Yield = ((100000-98757.30)/98757.30) x (360/111)) x 100Yield
= 2.39%Therefore, the asked yield is 2.39%.
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Suppose there are two firms in a market who each simultaneously choose a quantity. Firm 1’s quantity is q1, and firm 2’s quantity is q2. Therefore the market quantity is Q = q1 + q2. The market demand curve is given by P = 150 - 4Q. Also, each firm has constant marginal cost equal to 30. There are no fixed costs.
The marginal revenue of the two firms are given by:
MR1 = 150 – 8q1 – 4q2
MR2 = 150 – 4q1 – 8q2.
A) How much output will each firm produce in the Cournot equilibrium?
B) What will be the market price of the good?
C) What is the deadweight loss that results from this duopoly?
D) How much profit does each firm make?
E) Suppose Firm 2 produced 20 units of output. How much output should Firm 1 produce in order to maximize profit?
Understanding the concept of Cournot equilibrium and the calculations involved in a duopoly market can provide insights into firm behavior and market outcomes.
Let's explore the solutions to the given problems.
In a Cournot duopoly, two firms simultaneously choose the quantity of output to produce. Firm 1's quantity is denoted as q₁, and Firm 2's quantity is denoted as q₂. The market quantity is the sum of the individual quantities, Q = q₁ + q₂.
The market demand curve represents the relationship between price (P) and market quantity (Q) and is given as P = 150 - 4Q. Both firms have a constant marginal cost equal to 30, and there are no fixed costs. The marginal revenue (MR) of each firm is provided as follows:
MR₁ = 150 – 8q₁ – 4q₂
MR₂ = 150 – 4q₁ – 8q₂
Let's address each question:
A) How much output will each firm produce in the Cournot equilibrium?
In the Cournot equilibrium, each firm maximizes its profit by choosing its quantity while taking the competitor's quantity as given. To find the equilibrium quantities, we need to set each firm's marginal revenue equal to its marginal cost (MC), which is 30 in this case.
For Firm 1:
MR₁ = MC
150 – 8q₁ – 4q₂ = 30
For Firm 2:
MR₂ = MC
150 – 4q₁ – 8q₂ = 30
Solving these two equations simultaneously will provide the equilibrium quantities q₁ and q₂.
B) What will be the market price of the good?
To find the market price in the Cournot equilibrium, we substitute the equilibrium quantities (q₁ and q₂) into the market demand curve equation:
P = 150 - 4Q
Substitute Q = q₁ + q₂ into the equation and solve for P.
C) What is the deadweight loss that results from this duopoly?
Deadweight loss refers to the loss of economic efficiency that occurs when the equilibrium quantity deviates from the socially optimal quantity. It is the difference between the social surplus in the Cournot equilibrium and the social surplus in the efficient outcome. Calculating deadweight loss involves comparing the areas under the demand curve and the marginal cost curve.
D) How much profit does each firm make?
To calculate the profit for each firm, we need to subtract the total cost from the total revenue. The total revenue for each firm can be obtained by multiplying the market price by its respective quantity. The total cost is the product of the marginal cost and the firm's quantity.
E) Suppose Firm 2 produced 20 units of output. How much output should Firm 1 produce to maximize profit?
In this scenario, Firm 2's quantity is fixed at 20 units. Firm 1 aims to maximize its profit. To achieve this, Firm 1 needs to determine the quantity that maximizes its profit given Firm 2's output level. Firm 1 can do this by setting its marginal revenue equal to its marginal cost and solving for q₁.
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Andres, a selfeemployed thowidual, whes to accurnulate a retarement fund of $450,000. How much should she deposit each month into her retirement account, which psys interest at a rate of 5. Whilveor compounded monthiy, to resch her goal woen retirement 25 years from now? (Round your answer to the nexest eent.) TANFN12 53.046 12. [-7.69 Points) ROLFFM8 5.024. 13. [−17.72 Doints ] BOUFFMS 5.3.028
The monthly deposit required for Andres to accumulate a retirement fund of $450,000 in 25 years, with an interest rate of 5% compounded monthly, is approximately $637.62.
To calculate the monthly deposit required to accumulate a retirement fund of $450,000, we can use the formula for the future value of an ordinary annuity:
Monthly Deposit = (Future Value / Present Value Factor) x (Interest Rate / Number of Compounding Periods)
Where:
Future Value = $450,000
Interest Rate = 5% or 0.05 (expressed as a decimal)
Number of Compounding Periods = 12 (compounded monthly)
Present Value Factor is calculated using the formula: Present Value Factor = (1 - (1 + Interest Rate)^(-Number of Compounding Periods)) / Interest Rate
Let's calculate the monthly deposit:
Present Value Factor = (1 - (1 + 0.05)^(-12)) / 0.05
Present Value Factor ≈ 7.03598
Monthly Deposit = ($450,000 / 7.03598) x (0.05 / 12)
Monthly Deposit ≈ $637.62
Rounded to the nearest cent, the monthly deposit required for Andres to accumulate a retirement fund of $450,000 in 25 years, with an interest rate of 5% compounded monthly, is approximately $637.62.
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store managers at kids clothing, inc. are required to conduct weekly audits of the returns the store has processed. this requirement is a
The term "More than 200" does not seem to be relevant to the question you have asked. However, to answer your question, the requirement for store managers at Kids Clothing.
Conduct weekly audits of the returns processed by the store is a policy put in place by the company to maintain a high level of customer satisfaction and ensure proper inventory management. By conducting these audits, the store can keep track of the reasons behind returns, identify trends, and develop strategies to reduce the number of returns.
Additionally, the audits can help the store identify any issues with the quality of the products or the effectiveness of the sales staff, allowing them to take corrective action where needed. Overall, this requirement is an important part of the company's customer service and inventory management policies.
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Which of the following is the best example of a pure public good?
1. Social security payments
2. National mail delivery
3. Imported oil
4. National defense
Pure public goods are defined as those goods which are not available to individual consumers, but are instead provided collectively by the government and enjoyed by everyone. These goods are indivisible and non-excludable,
which means that once they are produced and made available, they are accessible to all, regardless of whether they pay for them or not.
National defense is the best example of a pure public good. National defense is a public good that is produced collectively by the government and enjoyed by everyone. National defense is a good that is not divisible, which means that once it is produced, it is available to everyone, and it is not possible to exclude anyone from enjoying it.
National defense is also a non-excludable good, which means that once it is produced, it is available to everyone, regardless of whether they have paid for it or not. This is because national defense is a good that benefits the whole society, and it is not possible to exclude anyone from enjoying the benefits of national defense.
In contrast, social security payments are not pure public goods because they are available only to those who have contributed to the social security system. National mail delivery is not a pure public good because it is excludable, and people have to pay for it.
Imported oil is also not a pure public good because it is rivalrous, which means that once it is consumed, it cannot be consumed by someone else. In conclusion, the best example of a pure public good is national defense.
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On May 3, 2020, Leven Corporation negotiated a short-term loan of $930,000. The loan is due October 1,2020 , and carries a 7.20% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay on the maturity date? (Use Days in a year table.) Note: Do not round intermediate calculations. Round your answer to the nearest cent.
The total amount Leven would pay on the maturity date is $964,450.28.
1. Calculate the number of days the loan is outstanding. The loan was negotiated on May 3, 2020 and is due October 1, 2020. There are 31 days in May, 28 days in June, 31 days in July, 30 days in August, 31 days in September, and 1 day in October for a total of 161 days.
2. Calculate the interest using the following formula:
Interest = Principal * Interest Rate * Number of Days / 365
Principal = $930,000
Interest Rate = 7.20% = 0.072
Number of Days = 161
Interest = 930,000 * 0.072 * 161 / 365 = $34,450.28
3. Calculate the total amount Leven would pay on the maturity date by adding the interest to the principal.
Total Amount = Principal + Interest
Principal = $930,000
Interest = $34,450.28
Total Amount = 930,000 + 34,450.28 = $964,450.28
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Case Study
Economy Hotels Limited owned certain 5-star hotel properties across India. After the COVID situation improved the company wanted to start its operations. However, the directors also felt that the Company should now focus on some more diversified business venture that can be easily carried on with the hotel business. Some of the promoter director proposed to start a travel business where they could rent out car fleets to their own hotels as well as to other offices and hotels. One director proposed to start/promote a professionally managed laundry business that would not only cater to all the properties of Economy Hotels Limited but also to other Hotels, Hospitals, Schools, Hostels etc. It would however not render its services to retail clients or individuals. One of the director’s Son has returned from US and wanted to automate the entire systems of Economy Hotels Limited and he has created his own software. He has absolute one-man ownership and has the required Intellectual Property rights in the same. But he is not sure what type of company he should set up so that no one else other than him has any ability to control the affairs. He wants to earn something by selling his intellect to Economy Hotels Limited and other hotel companies. The Daughter of one of the directors has completed her MBA from IMT Nagpur and wanted to join the family business. She needs to apprise the Board about her role or legal provisions which she could use to get into the Board. In order to expand the business of the Company, the Board decided to borrow money against the security of some property from the State Bank of India. But as the bank was not so optimistic about new ventures it wanted to have some control over the decisions made at the Board level and appoint a Nominee Director. Lastly, the Board decided to bring on board a new Director who had completed his studies at IIT Bombay and would lead the Company in business analytics and automation. However, as he is from a science background he has no idea about the role, expectations, and responsibility of a director. The CHRO was requested to make a small presentation for him to acquaint him with the aspects associated with the position of director especially related to disclosure of interest and position of trust.
Q) As the daughter of one of the Directors how will you place yourself before the Board establishing your utility and role? Are there any legal requirements to support you?
As the daughter of one of the Directors, I would place myself before the Board by highlighting my educational qualifications and work experience that could be useful to the company.
I would discuss how my skills and knowledge could contribute to the growth of the company and support the Board's vision for the business. I would also emphasize my commitment to the company and my willingness to work hard and learn from experienced colleagues. By demonstrating my eagerness to learn and contribute, I hope to convince the Board that I would be an asset to the company and deserving of a role.
In terms of legal requirements, the Companies Act 2013 allows for the appointment of a Director who is related to another Director, subject to certain conditions. For example, a Director who is related to another Director must disclose his or her relationship with the Board and refrain from participating in any Board meetings where there is a conflict of interest.
Therefore, I would assure the Board that I would adhere to all legal requirements and ethical practices in the performance of my role.
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T/F: a progression is a measurement of current performance against which future performance will be compared.
The following statement is true:
A progression is a measurement of current performance against which future performance will be compared.
What is progression?
The term progression refers to the act of moving forward or developing towards a better or more advanced stage.
Progression is frequently employed in the context of professional or athletic pursuits, where it is used to evaluate a person's growth and development as well as their present status.
Progression aids in the development of a goal. A progression is a collection of benchmarks that demonstrate progress toward a goal.
Progression in this context allows someone to set targets and track progress in a more specific manner, rather than simply assessing performance against a static measure such as a test score or award.
Therefore, a progression is a way to gauge present performance in order to compare it to future performance.
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The XYZ Company manufactures wicker chairs. With its present machines, it has a maximum yearly output of 500 units. If it makes x
chairs, it can set a price of p(x)=200−0.15x
dollars each and will have a total yearly cost of C(x)=5000+6x−0.002x2
dollars. The company has the opportunity to buy a new machine for $4000
with which the company can make up to an additional 250 chairs per year. The cost function for values of x
between 500 and 750 is thus C(x)=9000+6x−0.002x2.
Basing your analysis on the profit for the next year, answer the following questions. (a) Should the company purchase the additional machine? (b) What should be the level of production?
The XYZ Company manufactures wicker chairs. With its present machines, it has a maximum yearly output of 500 units. If it makes x
chairs, it can set a price of p(x)=200−0.15x
dollars each and will have a total yearly cost of C(x)=5000+6x−0.002x2
dollars. The company has the opportunity to buy a new machine for $4000
with which the company can make up to an additional 250 chairs per year. The cost function for values of x
between 500 and 750 is thus C(x)=9000+6x−0.002x2.
Basing your analysis on the profit for the next year, answer the following questions.
(a) Should the company purchase the additional machine?
(b) What should be the level of production?
(a) The company should purchase the additional machine. As the current cost function is C(x)=5000+6x−0.002x^2, we need to calculate the new cost function to compare both.
For that, we will use the values of C(x) given for
x = 500 and x = 750. C(500) = 9000+6(500)−0.002(500)^2 = 10,000
and C(750) = 9000+6(750)−0.002(750)^2 = 11,625.
The new machine will give a lower cost of production, and it will result in a higher profit for the company. The additional cost of buying the machine is $4,000, but it will lead to a profit increase that is greater than the cost. Therefore, purchasing the additional machine will be a profitable investment.
(b) The level of production should be 625 units. To calculate the level of production, we need to find the x value that maximizes the profit function. The profit function is given by
P(x) = R(x) - C(x), where R(x)
We know that
R(x) = xp(x) = x(200-0.15x) = 200x - 0.15x^2.
We also know that C(x) = 5000 + 6x - 0.002x^2.
Substituting these values in the profit function, we get
P(x) = 200x - 0.15x^2 - (5000 + 6x - 0.002x^2) = 194x - 0.148x^2 - 5000.
To find the value of x that maximizes P(x), we take the derivative of P(x) and equate it to zero:
P'(x) = 194 - 0.296x = 0 => x = 656.08.
Since we can only produce whole units of chairs, we must round x down to 625.
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Problems may rise as a result of inadequate or lack of human
resources planning. Analyse these problems in an organization of
your choice?
Human resources planning refers to the development of strategies for matching the size and skills of the workforce with the demands of the organization. This may include workforce planning, succession planning, recruitment and selection, training and development, performance management, and employee retention.
Problems may arise as a result of inadequate or lack of human resources planning, and these problems can have significant implications for the success of the organization. Inadequate human resource planning can cause significant problems for an organization, including the following:
1. Poor workforce planning
2. Difficulty in recruiting and retaining qualified staff
3. Reduced employee morale and job satisfaction
4. Increased employee turnover
5. Reduced productivity and efficiency
6. Reduced quality of work
7. Inability to respond to changes in the business environment
8. Increased costs associated with recruitment and training
9. Difficulty in maintaining a competitive advantage in the marketplace.
An example of an organization that has experienced problems as a result of inadequate human resources planning is British Airways (BA).
In 2017, the airline was forced to cancel hundreds of flights after a computer system failure caused by a lack of investment in IT systems and human resources planning.
The incident caused significant disruption for passengers, and BA faced significant criticism for its handling of the situation. The incident highlighted the importance of effective human resources planning and the potential consequences of inadequate planning.
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the project management institute (pmi) argues that, ideally, the project charter should be authored by:
The Project Management Institute (PMI) recommends that the project charter be ideally authored by the project sponsor or the project manager. The project charter serves as a formal document that establishes the project's existence, defines its objectives, and provides the authority to initiate the project.
Here are some reasons why the project sponsor or the project manager should be involved in authoring the project charter Authority and Responsibility: The project sponsor is typically a senior executive who has the authority and accountability for the project's success. They have the necessary organizational influence and resources to support the project. The project manager, on the other hand, is responsible for the day-to-day management and execution of the project. By involving them in the chartering process, they can ensure that the project aligns with the organization's strategic objectives and has the necessary support.
Stakeholder Involvement: The project charter defines the project's stakeholders, their roles, and their expectations. The project sponsor and project manager are key stakeholders who can provide valuable input and insights into the project's goals, scope, and requirements. By involving them in the authoring process, the project charter can accurately capture the needs and expectations of all stakeholders. Alignment with Organizational Strategy: The project charter outlines the project's alignment with the organization's strategic objectives. The project sponsor, being a senior executive, can provide insights into the organization's strategic priorities and how the project contributes to them.
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A divided interest in a unit where a participating owner has exclusive use to the unit during designated period of time is referred to as a:
a. periodic lease
b. time share
c. mobile home residency
d. all answers are correct
A divided interest in a unit where a participating owner has exclusive use to the unit during a designated period of time is known as a time share. The correct answer to the question is b. time share.
In a time share arrangement, multiple owners share ownership of a property, typically a vacation property, and each owner has the right to use the property for a specified period, such as a week or two, every year.
Here's an example to help illustrate the concept: Let's say there is a beachfront condo that is a time share property. There are 52 owners, and each owner is allocated one week of exclusive use of the condo per year. Owner A may have the rights to use the condo during the first week of January, while Owner B may have the rights to use it during the second week, and so on.
During their designated week, each owner has the right to use the condo as if they were the sole owner. This means they can stay in the unit, enjoy the amenities, and treat it as their own during that specific time period.
It's important to note that time shares often come with additional costs, such as maintenance fees and annual dues, to cover the expenses associated with the property's upkeep and management. Additionally, owners may have the option to exchange their designated time share week for a different week or location within the time share network.
To summarize, a divided interest in a unit where a participating owner has exclusive use to the unit during a designated period of time is referred to as a time share.
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In 5 paragraphs or less: 1.) Explain the differences between Greenfield and Brownfield market entry strategies. 2.) Explain within which market entry situations Greenfield strategy is more suitable than Browfield. 3.) Explain within which market entry situations Brownfield strategy is more suitable than Greenfield. Please use examples.
Market entry strategies are the techniques a company uses to enter a new market. Greenfield and Brownfield strategies are the two primary market entry strategies. The following are the key differences between the Greenfield and Brownfield market entry strategies:
Differences between Greenfield and Brownfield market entry strategies Greenfield is a new entry strategy in which a company enters a new market by creating a new business from scratch. The firm constructs a new facility or plant, acquires the necessary equipment, and hires staff.
In contrast, Brownfield is a strategy in which an existing firm enters a new market by acquiring an existing facility or plant. The acquired firm may need significant upgrades, refurbishments, or new machinery to suit the acquiring company's requirements.
In situations where Greenfield is more suitable than Brownfield Greenfield entry strategy is a suitable choice when a firm wants to enter a market with no prior presence. For example, the entry of Walmart into India is a perfect example of a greenfield investment.
Walmart had no existing facilities, personnel, or market knowledge in India when it first entered the market. In situations where Brownfield is more suitable than Greenfield Brownfield entry strategy is the preferred choice when a firm has limited time and resources.
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those persons employed by a financial industry regulatory authority (finra)-registered broker-dealer to do nothing other than provide training for its associated persons
Financial Industry Regulatory Authority (F I N R A)-registered broker-dealers, in order to comply with its obligations under federal securities laws and F I N R A rules, are expected to provide education and training
Firms usually employ individuals who are responsible for providing this education and training. These persons are usually required to have relevant experience and expertise to perform their tasks effectively. The role of these individuals is to design, develop, and deliver the training programs that are necessary for the firm's associated persons to conduct their business activities
They must stay current with new developments and changes in the securities laws and regulations, as well as changes in the business practices of the firm, and ensure that the training materials are updated accordingly. These persons should also ensure that the training programs are accessible to all the firm's associated persons, including those who are not physically present in the office.
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Mr Moshokoa wants to start investing for his son's tertiary studies. He has R350 per week available to invest in an account which returns 8,5% interest per year, compounded weekly. How many years, to the second decimal digit accurately, will it take for him to have R400 000 in the investment?
[1] 53,76 years
[2] 26,00 years
[3] 6,00 years
[4] 12,41 years
[5] None of the above.
It will take approximately 26.00 years for Mr Moshokoa to have R400,000 in the investment.
To find out how many years it will take for Mr Moshokoa to have R400,000 in the investment, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value (R400,000)
P = the principal amount (R350)
r = the annual interest rate (8.5% or 0.085)
n = the number of times the interest is compounded per year (52, since it's compounded weekly)
t = the number of years
Plugging in the values into the formula
R400,000 = R350(1 + 0.085/52)^(52t)
Dividing both sides of the equation by R350:
1142.857 = (1 + 0.085/52)^(52t)
Taking the natural logarithm of both sides:
ln(1142.857) = ln[(1 + 0.085/52)^(52t)]
Using the logarithmic properties, we can bring down the exponent:
52t * ln(1 + 0.085/52) = ln(1142.857)
Dividing both sides by 52 * ln(1 + 0.085/52):
t = ln(1142.857) / (52 * ln(1 + 0.085/52))
Using a calculator to evaluate the expression, we find:
t ≈ 26.00 years
Therefore, it will take approximately 26.00 years for Mr Moshokoa to have R400,000 in the investment. The correct answer is [2] 26.00 years.
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QUESTION 6 Suppose the economy is in long-run equilibrium and the government decreases taxes. What causes the economy to move from the new short-run equilibrium eventually to a long-run equilibrium? A. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the left B. LRAS will shift to the left C. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the right D. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the left E. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right
Previous question
In the short-run, the economy moves from the short-run equilibrium to the long-run equilibrium because of the changes in nominal wages, prices, and perceptions (that affect the short-run aggregate supply). The correct option in the given question is "E.
Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right."The long-run equilibrium is achieved when the long-run aggregate supply (LRAS) intersects the aggregate demand (AD) curve. In the short-run, the SRAS curve is upward sloping, which indicates that the changes in nominal wages, prices, and perceptions affect the short-run aggregate supply. Therefore, when the government decreases taxes, it reduces the firms' costs of production and encourages them to increase their output.
The increase in production leads to higher employment and output levels and a decrease in the prices level. This short-run equilibrium shifts the SRAS curve to the right.However, as the prices level decreases, the real value of the money supply increases. It leads to an increase in the demand for goods and services, shifting the AD curve to the right.
The rightward shift in the AD curve continues until it intersects the new LRAS curve, establishing the long-run equilibrium. Thus, nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right. The correct option in the given question is "E.
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2. The Go-Blue Company has common stock outstanding that has a current price of $20 per share and the most recent dividend $1.50/ share. G0-Blue's dividends are expected to grow at a rate of 5% per year, forever. The expected risk-free rate of interest is 4%, and the expected market Risk premium is 8%. The beta on Go-Blue 's stock is 1.2. a. What is the cost of equity for Go-Blue using the constant dividend growth model? b. What is the cost of equity for Go-Blue using the capital asset pricing model? c. Calculate the overall cost of equity. (Average of the two methods).
The cost of equity for Go-Blue using the constant dividend growth model The constant dividend growth model is also known as the Gordon Model. It is used to calculate the cost of equity of a firm that pays dividends and grows at a constant rate.
The formula to calculate the cost of equity for Go-Blue using the constant dividend growth model is as follows:
Cost of equity using the constant dividend growth model (Ke) = (Expected dividend/ Current stock price) + growth rate [tex]Ke = (1.5/20) + 5% Ke = 12.5%b[/tex]
The cost of equity for Go-Blue using the Capital Asset Pricing Model The Capital Asset Pricing Model (CAPM) is a financial model that is used to calculate the cost of equity of a company. The formula to calculate the cost of equity for Go-Blue using the Capital Asset Pricing Model is as follows:
[tex]CAPM = Rf + Beta × (Rm - Rf)CAPM = 4% + 1.2 × 8%CAPM = 13.6%c[/tex]
The overall cost of equity (Average of the two methods)To calculate the overall cost of equity, we need to take the average of the two methods.
[tex]Overall cost of equity = (Ke using constant dividend growth model + Ke using CAPM)/ 2[/tex]
[tex]Overall cost of equity = (12.5% + 13.6%)/ 2[/tex]
[tex]Overall cost of equity = 13.05%[/tex]
Thus, the [tex]overall cost of equity of Go-Blue is 13.05%.[/tex]
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risks that have been identified and may or may not happen are referred to as known unknowns, and a should be established to cover them if they are triggered.
known unknowns are risks that are identified but uncertain in their occurrence. To prepare for these risks, a contingency plan should be established to address them if they do happen.
The risks that have been identified but may or may not happen are known as known unknowns. These are uncertainties that we are aware of, but we cannot determine whether they will occur or not.
To address these known unknowns, a contingency plan should be established. A contingency plan is a set of predetermined actions or measures that can be implemented if the identified risks are triggered. Its purpose is to minimize the negative impact of these risks and provide a way to respond effectively if they occur.
The contingency plan should outline the specific steps to be taken if a known unknown becomes a reality. It should include clear guidelines, responsibilities, and resources needed to address the risk. By having a well-prepared contingency plan in place, an organization or individual can mitigate the potential consequences of the identified risks.
In conclusion, known unknowns are risks that are identified but uncertain in their occurrence. To prepare for these risks, a contingency plan should be established to address them if they do happen. This plan provides a framework for effective response and minimizing the impact of the risks.
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Company Chosen is APPLE Apple WACC: 8.3% -Please use this rate. Apple Inc. currently has property and equipment as $39,245,000,000 The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.) The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost. The annual EBIT for this new project will be 18% of the project's cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 25% as the tax rate in this project. Calculate The following capital budgeting results for the project:
1. Net present value
2. Internal rate of return
3. Discounted payback period
4. Should Purchase?
Given Data; Apple Inc.WACC: 8.3%Property and Equipment: $39,245,000,000Expected Expansion in Operations: 10%Estimated life of PPE: 12 yearsSalvage Value: 5%Annual EBIT: 18%Method of Depreciation:
Straight LineIncrease in Net Working Capital: 0%Tax Rate: 25%1) Calculating the Projected Cost of New Property, Plant, and Equipment;Property, Plant and Equipment = $39,245,000,00010% of Property, Plant and Equipment = 10% × $39,245,000,000= $3,924,500,000Projected cost of New PPE = $3,924,500,0002) Calculating the Annual Depreciation of the New Equipment;
Depreciation per year = (Cost of PPE - Salvage value) / Life of PPE= ($3,924,500,000 - 5% of $3,924,500,000) / 12= $326,541,6673) The reasons are;NPV > 0, which implies that the project is expected to generate positive returns.IRR > WACC, which means that the project will generate returns that are higher than the company’s cost of capital.The discounted payback period is less than the projected life of the PPE.
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How did Leadership Through Quality radically change the way
Xerox did business?
Leadership Through Quality radically changed the way Xerox did business in a number of ways.The first way in which LQ changed Xerox was by encouraging employees to work collaboratively across departments.
Xerox was able to develop a more comprehensive understanding of its customers' needs and expectations, which helped the company design products and services that better met those needs.The second way in which LQ changed Xerox was by introducing a more systematic approach to quality management. Instead of relying on ad hoc methods for ensuring quality, Xerox began to use statistical techniques to monitor and improve its production processes. This helped the company identify problems earlier and make improvements more quickly.The third way in which LQ changed Xerox was by introducing a new culture of innovation. By encouraging employees to take risks and experiment with new ideas, Xerox was able to develop a number of breakthrough products, including the first desktop computer.
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if+workers'+nominal+wages+have+risen+by+50%+over+10+years,+and+prices+have+increased+by+40%+during+that+period,+then+we+can+safely+conclude+that+the+goods+and+services+workers+can+buy+have:
without information about the inflation rate, we cannot safely conclude whether the goods and services workers can buy have increased or decreased in real terms.
If workers' nominal wages have risen by 50% over 10 years, and prices have increased by 40% during that period, we cannot make a definitive conclusion about the purchasing power of workers based solely on these figures. The relationship between nominal wages and prices does not directly determine the change in the real purchasing power of workers.
To determine the change in real purchasing power, we need to consider the inflation-adjusted or real wages. Real wages take into account the changes in nominal wages and adjust them for the effects of inflation. If nominal wages have increased by 50% and prices have increased by 40%, the real wage increase would depend on the inflation rate over the same period.
If the inflation rate is lower than 40%, it is possible that workers' purchasing power has increased. On the other hand, if the inflation rate is higher than 40%, workers' purchasing power may have decreased despite the nominal wage increase.
Therefore, without information about the inflation rate, we cannot safely conclude whether the goods and services workers can buy have increased or decreased in real terms.
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