Let X be the purchase amount of the property. The down payment of 15% of the purchase price can be represented as:X * 0.15 = $18,000 Divide both sides by 0.15 to solve for X:X = $18,000/0.15X = $120,000 Therefore, the purchase amount of the property is $120,000.
To know more about payment visit
https://brainly.com/question/33246670
#SPJ11
The market price is $1,200 for a 17-year bond ($1,000 par value) that pays 8 percent annual interest, but makes interest payments on a semiannual basis (4 percent semiannually). What is the bond's yield to maturity?
First, we should find the semi-annual interest payment. Semi-annual interest payment = (4/100) x $1,000 = $40Now we can calculate the price of the bond using the formula for the price of the bond,
PVB= C1/(1+r)1 + C2/(1+r)2 + C3/(1+r)3 +…+ Cn/(1+r)n + Par value/(1+r)n
where, C = Interest payment, r = Yield to maturity, PVB = Present value of the bond, Par value = $1,000, n = number of years, and semiannual periods = 17 x 2 = 34
Now let's plug in the values in the above equation
Price of bond = $1,200 = ($40/(1+r)^1) + ($40/(1+r)^2) + …+ ($40/(1+r)^34) + ($1,000/(1+r)^34)
Now, we can find the Yield to Maturity (YTM) by using the trial and error method. Let's start with the initial guess of YTM as 4% as the interest is given as 8% per year but semi-annual interest is 4% and increase the value in the next steps to find the
YTM.$1,200 = ($40/1.02^1) + ($40/1.02^2) +…+ ($40/1.02^34) + ($1,000/1.02^34)
YTM = 4.084% approx.
The bond's yield to maturity is 4.084%. Therefore, the bond's yield to maturity is approximately 4.084%.
To know more about Semi-Annual Interest Payment visit:
https://brainly.com/question/31790302
#SPJ11
Common retention rates include which of the following?
10%
5%
50%
A and B
Common retention rates include A and B, which are 10% and 5%. Retention rate refers to the percentage of customers or users who continue to engage with a product, service, or platform over a specific period.
It is an important metric for businesses to measure customer loyalty and the effectiveness of their retention strategies.
In the given options, A and B are mentioned. Option A represents a retention rate of 10%, and option B represents a retention rate of 5%. These percentages indicate the proportion of customers or users who remain active or retained within a given timeframe. Higher retention rates are generally favorable for businesses as they indicate a higher level of customer satisfaction and loyalty.
Therefore, the correct answer is option D: A and B, as they represent common retention rates of 10% and 5%, respectively.
To know more about retention rates click here: brainly.com/question/30100220
#SPJ11
click and drag on elements in order place the five steps of the stakeholder impact analysis in order, with the first step at the top.
The five steps of the stakeholder impact analysis in order, with the first step at the top is as follows:
1. Who are our stakeholders?
2. What are our stakeholders' interests?
3. What opportunities and threats do our stakeholders present?
4. What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders?
5. what should we do to effectively address the stakeholder concerns?
To place the five steps of the stakeholder impact analysis in order, you can follow these steps:
1. Identify Stakeholders: The first step is to identify all the individuals or groups that are affected by or have an interest in the project or decision being analyzed. These stakeholders can include employees, customers, suppliers, shareholders, and the community.
2. Determine Stakeholder Interests: Once the stakeholders have been identified, it is important to understand their interests and concerns. This step involves gathering information about their needs, expectations, and potential impacts that the project may have on them.
3. Assess Stakeholder Power: In this step, you need to assess the influence and power that each stakeholder holds. This helps determine the level of impact they can have on the project and their ability to shape the outcome.
4. Analyze Stakeholder Impact: The next step is to analyze the potential impact that the project can have on each stakeholder. This involves evaluating both positive and negative consequences, including economic, social, environmental, and ethical impacts.
5. Develop Mitigation Strategies: The final step is to develop strategies to address the concerns and interests of the stakeholders. This may involve adjusting the project plan, implementing policies or practices, or engaging in dialogue and collaboration to find mutually beneficial solutions.
By following these steps and placing them in the correct order, you can effectively conduct a stakeholder impact analysis to ensure that the interests of all relevant stakeholders are taken into consideration.
Learn more about Stakeholders from the given link.
https://brainly.com/question/32720283
#SPJ11
Complete question:
Click and drag on elements in order Place the five steps of the stakeholder impact analysis in order, with the first step at the top.
What opportunities and threats do our stakeholders present?What are our stakeholders' interests?Who are our stakeholders?What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders?what should we do to effectively address the stakeholder concerns?QUESTION 4
"Natural ingredients skincare is a new skin care range that entrepreneurs Tumi and Melissa are planning to open. They are planning to do online sales and have three stores located in Cape Town, Durban and Johannesburg to accommodate walk in customers. They are aware that they are entering a market with large competitors, and that there is a lot of activity in the market. They have approached in in helping them analyse their new business
Illustrate and analyse Porter's five forces model for "Natural ingredients skincare"
Porter's Five Forces Model is a strategic framework used to understand the competitive environment of an industry or market. The following are Porter's Five Forces and an analysis of how they might relate to Natural ingredients skincare:
1. Bargaining power of suppliers - the bargaining power of suppliers is typically high in the personal care products market. As a result, Natural ingredients skincare will be forced to pay more for quality natural ingredients.
2. Bargaining power of buyers - the bargaining power of customers is also high because of the number of competitors in the market, as well as the availability of substitute products.
3. Threat of new entrants - the threat of new entrants is significant in the personal care industry due to the ease of access to ingredients and the increasing demand for natural products.
4. Threat of substitutes - natural ingredients skincare will compete with other natural and organic products, as well as conventional chemical-based skincare products.
5. Rivalry among competitors - the personal care industry has a lot of competition, and natural ingredients skincare will face significant competition from established firms and new entrants.
Analysis of Porter's Five Forces indicates that Natural ingredients skincare will face high competition from existing players, significant competition from new entrants, and the bargaining power of suppliers. As a result, it will be critical for the brand to develop a competitive advantage and create a strong brand image to attract customers. The firm may also consider forming strategic partnerships with suppliers to improve their bargaining power.
To know more about bargaining power visit
https://brainly.com/question/28499756
#SPJ11
are these statements true or false? give reason for your answer.
18. Monopolists over-converse resources from a dynamic efficiency perspective.
19. When the growth rate in demand exceeds the discount rate, the efficient outcome in a competitive industry will result in a larger amount of oil available for the future period than the current period.
20. Biofuels is a back-stop technology for oil and would cause more present production of oil.
8. Static efficiency is the appropriate measure of efficiency when time considerations do not play a significant role.
6. Market failure always justifies the involvement of the government.
18. False. Monopolists may not necessarily over-conserve resources from a dynamic efficiency perspective.
19. False. When the growth rate in demand exceeds the discount rate, it implies a higher value is placed on current consumption.
20. False. Biofuels are considered an alternative to oil and can reduce the dependence on fossil fuels.
8. True. Static efficiency measures efficiency based on a specific point in time, considering the allocation of resources at that moment.
6. False. Government intervention should be carefully considered, taking into account the costs and benefits, potential unintended consequences, and the feasibility of alternative solutions.
18. Monopolists have the incentive to maximize their profits, which may involve inefficient resource allocation, but it does not necessarily mean over-conversion of resources.
19. In a competitive industry, the efficient outcome would allocate resources to meet the current demand, resulting in a larger amount of oil available for the current period rather than the future period.
20. Biofuels are considered an alternative to oil and can reduce the dependence on fossil fuels. It does not necessarily cause more present production of oil but rather aims to replace or supplement it with renewable energy sources.
8. Time considerations, such as changes over time or dynamic effects, are not taken into account in static efficiency analysis.
6. Government intervention should be carefully considered, taking into account the costs and benefits, potential unintended consequences, and the feasibility of alternative solutions.
Learn more about Monopolists here:
https://brainly.com/question/28940085
#SPJ11
Dairies make low-fat milk from full-cream milk, and in the process, they produce cream, which is made into ice cream.
Explain the effect of each event on the supply of low-fat milk and draw one curve for each event that supports your conclusion.
The following events occur one at a time:
1.1. The wage rate of dairy workers rises. (0.25)
1.2. The price of cream rises. (0.25)
1.3. The price of low-fat milk rises. (0.25)
1.4. With a drought forecasted, dairies raise their expected price of low-fat milk next year. (0.25)
1.5. New technology lowers the cost of producing ice cream. (0.25)
1.1. The wage rate of dairy workers rises: This event would increase the cost of production for dairies. As a result, the supply of low-fat milk is likely to decrease because higher wages would lead to higher production costs, making it less profitable for dairies to produce low-fat milk. The supply curve for low-fat milk would shift to the left.
1.2. The price of cream rises: Since cream is a byproduct of producing low-fat milk, an increase in the price of cream would make it more lucrative for dairies to produce cream instead of low-fat milk. This would reduce the supply of low-fat milk as dairies allocate more resources to producing cream. The supply curve for low-fat milk would shift to the left.
1.3. The price of low-fat milk rises: If the price of low-fat milk increases, it would incentivize dairies to produce more of it. This would result in an increase in the supply of low-fat milk as dairies aim to take advantage of the higher prices. The supply curve for low-fat milk would shift to the right.
1.4. With a drought forecasted, dairies raise their expected price of low-fat milk next year: Anticipating a future increase in the price of low-fat milk, dairies may reduce their current supply to ensure they have enough inventory for the expected higher prices. This would lead to a decrease in the supply of low-fat milk in the present. The supply curve for low-fat milk would shift to the left.
1.5. New technology lowers the cost of producing ice cream: When the cost of producing ice cream decreases due to new technology, dairies may shift their focus towards producing more ice cream as it becomes more profitable. This would reduce the supply of low-fat milk as resources are reallocated to ice cream production. The supply curve for low-fat milk would shift to the left.
Therefore, various events can impact the supply of low-fat milk in the market. Changes in production costs, input prices, future expectations, and technological advancements all play a role in shaping the supply curve for low-fat milk.
Learn more about wage rate visit:
https://brainly.com/question/29603429
#SPJ11
Your client, PortfolioCo holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers these assets. What is the expected return on the portfolio of risky assets P ? Select one: A. 14.0% B. 16.1% C. 12.5% D. 6.3% E. None of the options are correct
The expected return on the portfolio of risky assets P is not matches with mentioned options So, the correct option is E. None of the options are correct.
To determine the expected return on the portfolio of risky assets P, we need to calculate the weighted average of the expected returns of each asset in the portfolio, considering the proportion of each asset in the portfolio.
Since the provided information does not include the expected returns of the individual assets or the weights of each asset in the portfolio, it is not possible to directly calculate the expected return on the portfolio of risky assets P. Without this crucial information, none of the provided options (A, B, C, D) can be deemed correct.
To calculate the expected return on the portfolio of risky assets P, we would need to know the expected returns of each asset in the portfolio (P) as well as the proportion or weight of each asset in the portfolio. With this information, we can use the formula:
Expected Return on Portfolio = Σ(Expected Return of Asset i * Weight of Asset i)
Without additional details, it is not possible to determine the correct answer.
Learn more about risky assets from below link
https://brainly.com/question/32916682
#SPJ11
States and communities have provided subsidized higher education to ensure quality mass education. Has that rationale for a public subsidy to ensure an educated electorate changed in the last 20 years? To what degree is the stronger justification now an economic competitiveness argument or a fairness argument? Should subsidies to community colleges be decreased?
States and communities have provided subsidized higher education to ensure quality mass education.
Has that rationale for a public subsidy to ensure an educated electorate changed in the last 20 years?To a large extent, the rationale for public subsidies to ensure an educated electorate has changed over the past two decades. In the past, mass education was viewed as an end in itself. To educate all citizens was considered critical to ensuring an educated populace that could effectively participate in a democratic society.Today, the argument is mostly on economic competitiveness rather than on the need for an educated electorate. Employers require highly educated employees, and without this, the economy cannot grow. As a result, subsidies to higher education are now viewed as a means to increase productivity, rather than as a means to guarantee an educated electorate.While a public subsidy to community colleges may be appropriate for individual states, the way in which subsidies are offered must be consistent across all states to avoid inequality. The government should also consider implementing programs that provide low-income students with an equal opportunity to receive higher education, even if it means cutting subsidies to community colleges.Subsidies to community colleges should not be decreased. Instead, they should be increased, particularly for those who cannot afford to pay for college.
To know more on communities visit:
https://brainly.com/question/28391723
#SPJ11
Answer all parts of the following; explain your answers in detail: Define the legal doctrine of "judicial review." Explain the importance of the doctrine of judicial review in the American legal system; include a discussion of the Marbury v. Madison U.S. Supreme Court decision.
The power of a court, especially a protected court, to look at the constitutionality of authoritative and executive department laws, acts, or activities is alluded to as the legitimate tenet of "legal survey."
Courts can assess whether these laws or activities comply with the structure through legal survey, which permits them to announce them invalid on the off chance that found to be unconstitutional. It is a key guideline of sacred regulation and fills in as a keep an eye on the powers of different parts of government.
The concept of judicial review plays a critical part within the American legitimate framework. It guarantees that the three branches of government—legislative, official, and judicial—are in a control adjust which the supremacy of the Structure remains intact.
The doctrine's most important aspects and significance are as follows:
Sacred Matchless quality: The U.S. Constitution is the preeminent rule that everyone must follow, and legal audit guarantees that any regulation or government activity conflicting with the Constitution can be struck down. Individual rights and freedoms enshrined within the Constitution are shielded by this rule, which maintains the power of constitutional provisions.Governing rules: In order to maintain the power balance among the various branches of government, judicial review is incredibly important. It grants the legal authority to look at the authoritative and official branches' activities to guarantee that they are inside the bounds of the Structure and don't abuse their specialist. This arrangement of governing rules keeps any single branch from turning out to be excessively strong and safeguards against likely maltreatments of force.Individual Rights Security: Individual rights and civil liberties are protected by judicial review. Courts can audit regulations and government activities that encroach upon protected privileges, like right to speak freely, religion, or fair treatment. Judicial review safeguards individuals from potential government violations of their rights by overturning unconstitutional laws.Marbury v. Madison (1803), a pivotal decision that established the U.S. Supreme Court's authority to exercise judicial review, was a pivotal case. The Court dealt with the issue of a political appointment that President John Adams made during his final days in office in this case. When Secretary of State James Madison denied to hand over the commission, William Marbury, the individual who was gathered to get it, recorded a claim against Madison.
Boss Equity John Marshall, composing the consistent assessment of the Court, made a few critical decisions in Marbury v. Madison. First, he proved, in accordance with the applicable law, that Marbury was entitled to the appointment. Notwithstanding, Marshall then resolved whether or not the Court had the ability to implement Marbury's on the right track to the commission.
Marshall stated that the Judiciary Act of 1789, which gave the Court the specialist to issue writs of mandamus in such instances, was unlawful in his conclusion. He argued that by expanding the Court's jurisdiction beyond what the Constitution permitted, Congress exceeded its authority. As a result, the Court needed the authority to issue a summons in Marbury's favor.
Marshall's thinking in Marbury v. Madison was essential in laying out the rule of legal survey. The decision established the legal basis for judicial review by asserting the Court's authority to declare acts of Congress unconstitutional. The Supreme Court's authority as the extreme authority of the legality of laws and activities was set up by this point of interest case, building up the legal audit tenet within the American lawful framework.
know more about Marbury v. Madison
https://brainly.com/question/30856133
#SPJ4
The John Marshall Company, Inc., which provides consulting services to major utility companies, was formed on January 2 of this year. Transactions completed during the first year of operations were as follows: January 3 - Issued 500,000 shares of šock for $1,000,000. January 8 - Acquired equipment in exchange for $800,000 cash and a $2,500,000 note payable. The note is due in ten years. February 1 - Paid $24,000 for a business insurance policy covering the two-year period beginning on February 1. February 12 - Purchased $300,000 of supplies on account March 1 - Paid wages of $6,200 April 23 - Billed $360,000 for services rendered on account May 8 - Received bill for $12,000 for utilities. June 1 - Made the first payment on the note issued January 8 . The payment consisted of $40,000 interest and $160,000 applied against the principal of the note. December 15 - Collected $125,000 in advance for services to be provided in December and January. December 30 - Declared and paid a $50,000 dividend to shareholders. The chart of accounts that Marshall Company, Inc. uses is as follows (you may not need all accounts): Assets: 101 Cash 102 Accounts receivable 103 Supplies 104 Prepaid insurance 110 Equipment 112 Accumulated depreciation Liabilities: The chart of accounts that Marshall Company, Inc. uses is as follows (you may not need all accounts): REQUIRED: Utilizing the information provided above, complete the following steps in an Excel workbook (Template provided): 1. Journalize the transactions for the year. 2. Post the journal entries to a T account. 3. Prepare an unadjusted trial balance as of December 31. 4. Journalize and post adjusting entries to the T accounts based on the following additional information: a. Eleven months of the insurance policy expired by the end of the year. b. Depreciation for equipment is $200,000. c. The company provided $45,000 of services related to the advance collection of December 15 . d. There are $210,000 of supplies on hand at the end of the year. 5. Prepare an adjusted trial balance as of December 31. 6. Prepare a single-step income statement and statement of retained earnings for the year ended December 31 and a classified balance sheet as of December 31 . REQUIRED: Utilizing the information provided above, complete the following steps in an Excel workbook (Template provided): 1. Journalize the transactions for the year. 2. Post the journal entries to a T sccount. 3. Prepare an unadjusted trial balance as of December 31 . 4. Journalize and post adjusting entries to the T accounts based on the following additional information: a. Eleven months of the insurance policy expired by the end of the year. b. Depreciation for equipment is $200,000. c. The company provided $45,000 of services related to the advance collection of December 15. d. There are $210,000 of supplies on hand at the end of the year. 5. Prepare an adjusted trial balance as of December 31 . 6. Prepare a single-step income statement and statement of retained earnings for the year ended December 31 and a classified balance sheet as of December 31 . 7. Journalize and post the closing entries 8. Prepare a post-closing trial balance as of December 31 . Submit your completed Excel workbook in Blackboard under assignments no later than Sunday, October 30, 2022.
Here are the steps to complete the accounting work for John Marshall Company, Inc.
1. Journalize the transactions for the year and post them to a T account.
2. Prepare an unadjusted trial balance as of December 31.
3. Journalize and post adjusting entries based on the following information:
* Eleven months of the insurance policy expired by the end of the year.
* Depreciation for equipment is $200,000.
* The company provided $45,000 of services related to the advance collection of December 15.
* There are $210,000 of supplies on hand at the end of the year.
4. Prepare an adjusted trial balance as of December 31.
5. Prepare a single-step income statement and statement of retained earnings for the year ended December 31 and a classified balance sheet as of December 31.
6. Journalize and post the closing entries.
7. Prepare a post-closing trial balance as of December 31.
Learn more about Solution here:
https://brainly.com/question/18270440?referrer=searchResults
#SPJ11
Following these steps will help you complete the required tasks in an organized manner.
Steps:
1. Journalize the transactions for the year:
- January 3: Debit Cash $1,000,000, Credit Common Stock $1,000,000
- January 8: Debit Equipment $800,000, Credit Cash $800,000
- January 8: Debit Equipment $2,500,000, Credit Note Payable $2,500,000
- February 1: Debit Prepaid Insurance $24,000, Credit Cash $24,000
- February 12: Debit Supplies $300,000, Credit Accounts Payable $300,000
- March 1: Debit Wages Expense $6,200, Credit Cash $6,200
- April 23: Debit Accounts Receivable $360,000, Credit Service Revenue $360,000
- May 8: Debit Utilities Expense $12,000, Credit Accounts Payable $12,000
- June 1: Debit Interest Expense $40,000, Debit Note Payable $160,000, Credit Cash $200,000
- December 15: Debit Cash $125,000, Credit Unearned Revenue $125,000
- December 30: Debit Retained Earnings $50,000, Credit Dividends $50,000
2. Post the journal entries to a T account.
3. Prepare an unadjusted trial balance as of December 31.
4. Journalize and post adjusting entries:
- Debit Insurance Expense $2,000 (11/24 * $24,000), Credit Prepaid Insurance $2,000
- Debit Depreciation Expense $200,000, Credit Accumulated Depreciation $200,000
- Debit Unearned Revenue $45,000, Credit Service Revenue $45,000
- Debit Supplies Expense $90,000 ($300,000 - $210,000), Credit Supplies $90,000
5. Prepare an adjusted trial balance as of December 31.
6. Prepare a single-step income statement and statement of retained earnings for the year ended December 31.
7. Prepare a classified balance sheet as of December 31.
8. Journalize and post the closing entries.
9. Prepare a post-closing trial balance as of December 31.
Learn more about unadjusted trial balance from a given link :
https://brainly.com/question/33314177
#SPJ11
Common stock value-Constant growth Personal Finanoe Problem Over the past 6 yearn, Eik County Talephione has patid the dividends shown in the following table, The firmis divider per share in 2020 is expected to be $5.36. a. If you can earn 14% on similar-riak investments. What is the most you would be wiling to pay per share in 2019 , just affer the $5.11 didend? b. If you can eam only 11% on simiar-risk investments, what is the moat you would be willing to pay per share? c. Compare your findings in parts a and b, what is the impact of changing risk on share value? a. It you can earn 14% on similar-hisk invesinents, the most you would be witing to pay per share is 3 (Round to the nearest cent.) Common stock value-Constant growth. Personal Finanee Problem Over the past 6 years, Elk County Teleptone has paid the dividends ahown in ze batowny tanlef The then syidend per share in 2020 is expected to be $5.36. a. If you can eam 14% on similar-liak imestments; what is the most you would be wiling to pay per share in 2019 , just after the $5.11 dvidenc? b. If you can bam anly 11% on similarrisk investments, what is the most you would be witing to pay per share? c. Consare your tinaings in parts a and b, what is the impact of changing risk on share value? a. If you can eam 14% on simliar tisk investments, the most you would be wiling to pay per share is 1 (Round to the nearest cert) a. If you can eam 14% on similar-risk investments, what is the most you would be wiling to poy per share in 2010 , fust after the 35,11 dividend? b. If you can eam only 11% on similar-risk investments, what is the most you would be willing to pay per share? c. Compare your findings in parts a and b, What is the impact of changing risk on share value? Data table a. If you can eam 14% st cant.) (Click on the icon here [ h in order to copy the contents of the data tablo below
a. The most you would be willing to pay per share in 2019, just after the $5.11 dividend, if you can earn 14% on similar-risk investments, is $36.50.
To calculate this, you can use the formula for the present value of a constant growth stock: PV = D1 / (r - g), where PV is the present value, D1 is the dividend expected in the next period, r is the required rate of return, and g is the constant growth rate of dividends.
In this case, D1 is $5.11 (the dividend in 2020), r is 14% (the required rate of return), and g is the constant growth rate. Since the dividends have been increasing over the past 6 years, we can assume that the growth rate will continue. Using the dividends from the table, we can calculate the growth rate as follows: g = (5.11 - 2.15) / 2.15 = 1.3767.
Plugging in the values, we get: PV = 5.11 / (0.14 - 0.13767) = $36.50 (rounded to the nearest cent).
b. If you can earn only 11% on similar-risk investments, the most you would be willing to pay per share is $42.96.
Using the same formula as before, we can calculate the present value. D1 is still $5.11, r is 11%, and g is the same constant growth rate of 1.3767. Plugging in the values, we get: PV = 5.11 / (0.11 - 0.13767) = $42.96 (rounded to the nearest cent).
c. The findings in parts a and b show that changing the risk (represented by the required rate of return) has a significant impact on the share value. When the required rate of return is higher (14%), the present value of the stock decreases to $36.50. On the other hand, when the required rate of return is lower (11%), the present value increases to $42.96. This demonstrates that the higher the risk, the lower the value investors are willing to pay for the stock.
Know more about investments here:
https://brainly.com/question/21617407
#SPJ11
Banks may create money by creating checkable deposits, which are a part of the money supply. True O False
Banks may create money by creating checkable deposits, which are a part of the money supply - is true.
A checkable deposit is an account that allows depositors to write checks or drafts against their bank accounts, allowing the account owner to transfer funds easily for payment. Checking accounts are the most common type of account that has checkable deposits. These deposits make up the majority of the money supply of a nation.
Money creation is the process by which new money enters the economy. Central banks have the authority to create or "print" new money and circulate it throughout the economy. Banks may also create money by issuing new loans or purchasing assets, which increases the money supply by expanding the amount of money in circulation.Checkable deposits are one of the main ways in which banks create money. Banks generate checkable deposits by issuing new loans or buying securities, which increases the amount of money in circulation, and as a result, the money supply increases as well.
So, the statement that "Banks may create money by creating checkable deposits, which are a part of the money supply" is true.
To know more about checkable visit :
brainly.com/question/30714315
#SPJ11
The risk-free rate is 1.94% and the market risk premium is 8.90%. A stock with a B of 1.62 just paid a dividend of $1.64. The dividend is expected to grow at 20.74% for three years and then grow at 3.52% forever. What is the value of the stock? a. $19.67 b. $20.08 c. $21.22 d. $22.95
The best option is option D. The risk-free rate = 1.94%Market risk premium = 8.90%Beta (B) = 1.62Dividend (D0) = $1.64The dividend is expected to grow at 20.74% for three years and then grow at 3.52% forever.
To calculate the value of the stock, we will use the Gordon Growth Model. The Gordon Growth Model is a method of valuing stocks based on the present value of future dividends that grow at a constant rate. Here, the dividend is expected to grow at 20.74% for the first three years and then at a rate of 3.52% forever. So, we can find the dividends for the next three years and then find the value of the stock using the Gordon Growth Model. The formula for the Gordon Growth Model is as follows:
P0 = D1 / (r - g)Where, P0 = Price of the stock, D1 = Dividend next year, r = Required rate of return, g = Growth rate of dividends
We can calculate D1 using the following formula:D1 = D0 × (1 + g)D1 = $1.64 × (1 + 20.74%)D1 = $1.99For the second year:
D2 = D1 × (1 + g)D2 = $1.99 × (1 + 20.74%)D2 = $2.41 For the third year:
D3 = D2 × (1 + g)D3 = $2.41 × (1 + 20.74%)
D3 = > $2.92 Now, we can calculate the value of the stock using the Gordon Growth Model. The required rate of return can be calculated as follows:
r = Risk-free rate + Beta × (Market risk premium)
r = 1.94% + 1.62 × 8.90%r = 16.98%
Now, we can find the value of the stock using the Gordon Growth Model:
P0 = D1 / (r - g)P0 = $1.99 / (16.98% - 20.74%)P0 = $1.99 / (-3.76%)P0 = $52.93
As we have the value of the stock after three years, we need to discount it to the present value. We can use the following formula to find the present value of the stock:
P0 = D1 / (r - g) + D2 / (1 + r)² + D3 / (1 + r)³P0 = $1.99 / (16.98% - 20.74%) + $2.41 / (1 + 16.98%)² + $2.92 / (1 + 16.98%)³P0 = $1.99 / (-3.76%) + $2.41 / (1.1698)² + $2.92 / (1.1698)³P0 = $52.93 + $1.77 + $1.48P0 = $56.18
The value of the stock is $56.18. Hence, option (d) $22.95 is incorrect.
to know about Gordon Growth Model visit:
https://brainly.com/question/30355598
#SPJ11
The French Republic issues a bond with a maturity of 10 years and a coupon of 5%. The bond is issued and repaid at 100%. Assume that the market return for comparable bonds rises from 5% to 7%.
How does that rise in market return affect the coupon and the market value of the bond? Please conduct respective calculations where necessary. What can you say about the relation between market return and market value of a bond in general?
The rise in market return from 5% to 7% does not directly impact the coupon of the bond, which remains at 5%. However, the market value of the bond is inversely related to the market return. As the market return increases, the market value of the bond decreases.
The coupon rate of a bond represents the fixed interest payment based on the bond's face value. It remains unchanged regardless of the market return. In this case, the bond's coupon rate remains at 5%. On the other hand, the market value of a bond is influenced by changes in the market return. When the market return rises, the discounting factor used to calculate the present value of the bond's cash flows increases. As a result, the market value of the bond decreases. To determine the market value, the future cash flows (coupons and principal repayment) are discounted at the new market return of 7%. The higher discounting factor reduces the present value of these cash flows, leading to a decrease in the market value of the bond. In general, the market return and the market value of a bond have an inverse relationship. When market returns increase, the market value of a bond tends to decrease. This is because investors demand higher returns on their investments, making bonds with lower coupon rates less attractive. The market value adjusts to align with the required yield from investors.
Learn more about rise in market return here:
https://brainly.com/question/13054968
#SPJ11
Suppose the demand for eggs is: Q=12,000 2,000P and the supply of eggs is: where quantity is measured in millions (of eggs). Find the market-clearing price and quantity for eggs. (Enter price responses rounded to two decimal places.) The market-clearing price is S and the market-clearing quantity is Q=1,500 + 3,000P, Nex million eggs.
The market-clearing price for eggs is approximately $2.10, and the market-clearing quantity is approximately 7.8 million eggs.
To find the market-clearing price and quantity for eggs, we need to equate the demand and supply equations.
Demand equation: Qd = 12,000 - 2,000P
Supply equation: Qs = 1,500 + 3,000P
At market equilibrium, the quantity demanded (Qd) equals the quantity supplied (Qs). Therefore, we can set Qd equal to Qs:
12,000 - 2,000P = 1,500 + 3,000P
Let's solve this equation for P (the price):
12,000 - 1,500 = 3,000P + 2,000P
10,500 = 5,000P
P = 10,500 / 5,000
P ≈ 2.10 (rounded to two decimal places)
The market-clearing price for eggs is approximately $2.10.
To find the market-clearing quantity (Q), we can substitute the price (P) into either the demand or supply equation. Let's use the supply equation:
Q = 1,500 + 3,000P
Q = 1,500 + 3,000(2.10)
Q = 1,500 + 6,300
Q ≈ 7,800 (rounded to the nearest million)
The market-clearing quantity for eggs is approximately 7.8 million eggs.
Therefore, the market-clearing price for eggs is approximately $2.10, and the market-clearing quantity is approximately 7.8 million eggs.
To learn more about market-clearing prices
https://brainly.com/question/1930477
#SPJ8
3. In A Paper Published In The Journal Of Human Resources (2016), Andrews, Li And Lovenheim Find That At The Top Of The Earnings Distribution, Community College And Non-Flagship Four-Year Graduates Earn The Same Amount. Lower In The Earnings Distribution, Community College Graduates Earn Much Less Than Non-Flagship Four-Year Graduates. Is This Pattern
At the top of the earnings distribution, community college and non-flagship four-year graduates earn the same amount; lower in the earnings distribution, community college graduates earn much less than non-flagship four-year graduates.
Andrews, Li, and Lovenheim's research, published in the Journal of Human Resources in 2016, supports the aforementioned pattern.
Their study reveals that graduates from community colleges and non-flagship four-year institutions earn comparable incomes at the upper end of the earnings spectrum.
However, as one moves down the earnings distribution, community college graduates tend to earn significantly less than their counterparts from non-flagship four-year institutions.
This suggests that while community college graduates can attain similar earnings as non-flagship four-year graduates in higher-paying positions, there may be barriers preventing them from accessing such opportunities in the job market.
Factors like educational resources, social networks, employer biases, and the perceived value of different types of degrees may contribute to this discrepancy.
It is essential to consider the context and time period of the study, as well as individual circumstances and choices that can influence earnings.
learn more about earnings here:
https://brainly.com/question/30702029
#SPJ11
Yes, the pattern described in the question is supported by the findings of Andrews, Li, and Lovenheim's paper published in the Journal of Human Resources (2016).
According to the study conducted by Andrews, Li, and Lovenheim, there is a notable difference in earnings between community college graduates and non-flagship four-year graduates depending on their position within the earnings distribution.
At the top of the earnings distribution, both community college graduates and non-flagship four-year graduates earn the same amount. This suggests that factors such as skills, knowledge, and job opportunities available to individuals at the highest earning levels may outweigh the type of institution they attended.
However, as we move lower in the earnings distribution, the earnings disparity between community college graduates and non-flagship four-year graduates becomes apparent.
Community college graduates in this range tend to earn considerably less than their counterparts who attended non-flagship four-year institutions. This difference could be attributed to various factors, including the perceived prestige of the educational institution, differences in curriculum and program offerings, networking opportunities, and employer biases.
Overall, the study indicates that while community college graduates can achieve earnings parity with non-flagship four-year graduates at the top of the earnings distribution, there is a significant divergence in earnings as we move lower in the distribution.
learn more about Human Resources here:
https://brainly.com/question/29022219
#SPJ11
If In A Closed Economy With No Foreign Trade Marginal Propensity To Consume Is 0,8 And The Tax Rate Is 40% The Value Of The Multiplier Will Be A 1,92 B 2 C 2,08 D 5
The value of the multiplier will be a. 1.92
To calculate the value of the multiplier, we use the formula:
Multiplier = 1 / (1 - (Marginal Propensity to Consume × (1 - Tax Rate)))
Given that the Marginal Propensity to Consume is 0.8 and the Tax Rate is 40%, we can substitute these values into the formula:
Multiplier = 1 / (1 - (0.8 × (1 - 0.4)))
= 1 / (1 - (0.8 × 0.6))
= 1 / (1 - 0.48)
= 1 / 0.52
= 1.92
Therefore, the value of the multiplier in this closed economy with no foreign trade is 1.92.
So, the correct answer is A) 1.92.
To learn more about multiplier, refer below:
https://brainly.com/question/32972644
#SPJ11
ABE Corn. has total revenue of $4 800. depreciation of $319 selling and administrative expenses of $554, Interest expense of $162, dividends of $75, cost of goods sold of $2.354, and taxes of $186. What is the operating Cash flow?
A. $1,706
B.$1.573
C. $1,411
D. $1,225
E. $1,906
Operating cash flow is an essential aspect of financial analysis. It represents the money generated or expended on core operating activities. Operating cash flow can be calculated as follows :OCF = EBIT + Depreciation – Taxes The given information can be used to calculate the operating cash flow as follows :Operating Cash Flow (OCF) = EBIT + Depreciation - Taxes First, we will calculate EBIT :
Revenue = $4,800Cost of goods sold
= $2,354Gross profit
= $2,446Selling and administrative expenses
= $554Depreciation
= $319EBIT
= Gross profit – Selling and administrative expenses – Depreciation
= $2,446 - $554 - $319
= $1,573Now we will calculate the Operating cash flow :Operating Cash Flow
= EBIT + Depreciation - Taxes
= $1,573 + $319 - $186
= $1,706Therefore, the operating cash flow is $1,706.Option A is the correct answer.
To know more about Operating visit:
https://brainly.com/question/30581198
#SPJ11
how
does the cost of chicken poultry affect the supply of chicken on
both globally and in Malaysia.
The cost of chicken poultry has a significant impact on the supply of chicken both globally and in Malaysia.
The cost of chicken poultry directly affects the production and supply of chicken. When the cost of chicken poultry increases, it raises the overall production costs for poultry farmers. This can lead to a decrease in the supply of chicken as farmers may reduce their production or exit the market due to lower profit margins. As a result, the global supply of chicken may decrease, leading to potential shortages and higher prices in the international market.
In Malaysia, the cost of chicken poultry plays a crucial role in determining the domestic supply of chicken. If the cost of chicken poultry rises, it becomes more expensive for poultry farmers to raise and produce chickens. This can lead to a decrease in chicken production and supply within the country. As a result, the domestic supply of chicken in Malaysia may decline, causing potential shortages and higher prices for consumers.
Several factors contribute to the cost of chicken poultry, including the prices of feed, labor, energy, and other inputs involved in chicken farming. Fluctuations in these input costs can directly impact the cost of chicken poultry and subsequently influence the supply of chicken. Additionally, factors such as government regulations, trade policies, and market competition can also affect the cost of chicken poultry and indirectly impact the supply of chicken both globally and in Malaysia.
Overall, the cost of chicken poultry plays a critical role in determining the supply of chicken, and any changes in its cost can have significant implications for the availability and affordability of chicken both on a global scale and within Malaysia.
Learn more about supply of chicken
https://brainly.com/question/32740919
#SPJ11
Real GDP per person is $50,000 in Andromeda, $40,000 in Cosmos, $30,000 in Circinus, and $10,000 in Myall. Saving per person is $4000 in all four countries. Other things equal, what would we expect? All four countries will grow at the same rate. Andromeda will grow the fastest. Cosmos will grow the fastest. Myall will grow the fastest.
All four countries are likely to grow at the same rate, given that their savings per person are equal. (Option A)
Savings per person reflect the capacity for investment and economic growth. Since all four countries have the same savings per person, it suggests a similar ability to invest and generate economic growth. Therefore, we would expect them to grow at the same rate.
Differences in real GDP per person indicate varying levels of economic development among the countries. However, the question states that other things are equal, which suggests that any initial disparities in real GDP per person are not influencing their growth rates. Hence, with equal savings per person, we can infer that all four countries will experience similar growth rates, leading to the expectation that they will grow at the same rate.
Learn more about investment here:
https://brainly.com/question/15105766
#SPJ11
LA 3: Learn about the most popular and successful business transformations from the following source in your library:
Harvard Business Review (2020). The Top Business Transformations of the Past Decade. Harvard Business Review, 98(2), 25.
(Note: Check the list of organizations mentioned in the box, including Netflix, Adobe, etc.). These firms have been able to adapt and the reason for their successful transformation is also mentioned.
Read more about any one of these organizations and discuss the factors that contributed to organizational capacity to change. Do the factors identified align with the dimensions explained by Judge (2012; i.e. chapter from your textbook). Why or why not?
Instructions
Students will post their views in the discussion forum and the peers can comment on the views shared by each student. Peers can contribute to the discussion. As the discussion unfolds, the contributors should discuss how their choices were inspired by the unit reading(s).
The Harvard Business Review article "The Top Business Transformations of the Past Decade" highlights successful business transformations in various organizations, including Netflix, Adobe, and others.
One of the organizations mentioned in the Harvard Business Review article is Netflix. Netflix's successful transformation from a DVD rental service to a leading streaming platform is a notable example. Several factors contributed to Netflix's capacity for change. Firstly, the organization demonstrated strategic foresight by recognizing the shift in consumer preferences toward digital streaming and adapting its business model accordingly. Secondly, Netflix invested heavily in technology and infrastructure to support its streaming platform, ensuring a seamless and user-friendly experience for customers. Additionally, Netflix prioritized content creation and adopted a data-driven approach to personalize recommendations, further enhancing customer satisfaction.
When comparing these factors to Judge's dimensions of organizational change, there is alignment. Judge emphasizes the importance of strategic vision and adaptability in driving organizational change. Netflix's recognition of the industry shift and subsequent strategic pivot aligns with this dimension. Furthermore, Judge highlights the significance of technology and data in facilitating change. Netflix's investments in technology and data-driven decision-making align with this dimension as well.
Overall, the factors contributing to Netflix's successful transformation align with the dimensions explained by Judge, emphasizing the importance of strategic vision, adaptability, technology, and data in driving organizational change.
Learn more about organizations here:
https://brainly.com/question/30955895
#SPJ11
What is the NPV? What are some advantages and disadvantages? How is it computed? What is the decision rule criteria?
Net Present Value (NPV) is a financial metric used to assess the profitability of an investment or project. It represents the difference between the present value of cash inflows and the present value of cash outflows over a specific time period.
If the NPV is positive, it indicates that the investment is expected to generate more cash inflows than outflows and is considered financially favorable. Conversely, a negative NPV suggests that the investment may not be economically viable.
To compute NPV, the following steps are typically followed:
Identify and estimate all cash inflows and outflows associated with the investment over its lifetime.
Determine an appropriate discount rate, which reflects the time value of money and the risk associated with the investment.
Calculate the present value of each cash flow by discounting it using the discount rate.
Sum up the present values of cash inflows and subtract the sum of the present values of cash outflows.
The resulting value is the NPV.
Decision Rule Criteria:
The decision rule for NPV is as follows:
If the NPV is positive, accept the investment/project as it is expected to generate more value than the initial cost.
If the NPV is zero, the investment is considered borderline. Further analysis or consideration of other factors may be necessary.
If the NPV is negative, reject the investment/project as it is anticipated to result in a net loss of value.
Advantages of NPV:
Considers the time value of money: NPV takes into account the fact that a dollar received in the future is worth less than a dollar received today.
Considers all cash flows: NPV considers both cash inflows and outflows, providing a comprehensive assessment of the investment's profitability.
Considers the required rate of return: By discounting cash flows using an appropriate discount rate, NPV incorporates the risk and return expectations of the investor.
Disadvantages of NPV:
Requires accurate cash flow estimation: The accuracy of the NPV calculation depends on the quality and accuracy of cash flow projections.
Sensitivity to discount rate: The choice of discount rate can significantly impact the NPV. Different discount rates may lead to different investment decisions.
Ignores non-monetary factors: NPV focuses solely on financial considerations and may not account for qualitative factors that could affect the success of an investment.
Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project. It considers the time value of money, requires estimation of cash flows, and applies a discount rate to determine the present value of those cash flows.
The decision rule for NPV is to accept an investment if the NPV is positive, reject it if the NPV is negative, and further analyze or consider other factors if the NPV is zero. Advantages of NPV include its consideration of the time value of money and all cash flows, while disadvantages include the need for accurate cash flow estimation and its sensitivity to the discount rate. Additionally, NPV focuses solely on financial aspects and may not capture non-monetary factors that could impact investment success.
To know more about NPV ,visit:
https://brainly.com/question/30404848
#SPJ11
What is a currency board? With specific reference to a recent
currency crisis explain how this arrangement can lead to financial
crisis.
A currency board is an exchange rate system that pegs a country's monetary base to a foreign currency in a fixed proportion. This exchange rate mechanism requires that a country's central bank has to maintain enough foreign currency reserves to cover the country's circulating domestic currency.
Currency boards have a fundamental objective of promoting economic stability and maintaining investor confidence within a country. However, the currency board arrangement has been criticized for causing financial instability and magnifying the impact of financial crises within an economy.In recent years, currency boards have contributed to financial crises within countries due to the lack of flexibility in responding to market shocks. Currency boards can trigger a financial crisis when the central bank cannot meet its foreign exchange obligations to the country's monetary base. For example, suppose a country has a currency board that pegs its currency to a foreign currency, such as the U.S dollar. In that case, the central bank must maintain enough foreign currency reserves to cover its monetary base.
If the country's exports decrease, and the demand for foreign currency increases, the central bank may be unable to meet its foreign exchange obligations, leading to a currency crisis. Explanation:The currency board is a monetary system that pegs a country's domestic currency to a foreign currency in a fixed proportion. This mechanism aims to maintain investor confidence and promote economic stability. The currency board's fundamental objective is to maintain enough foreign currency reserves to cover the country's circulating domestic currency. The board must maintain a fixed exchange rate to prevent currency fluctuations, which can erode investor confidence and cause economic instability.
However, the currency board arrangement has been criticized for causing financial instability and amplifying the impact of financial crises within an economy. Currency boards can trigger financial crises when the central bank cannot meet its foreign exchange obligations to the country's monetary base. For instance, when a country's exports decline, and the demand for foreign currency increases, the central bank may be unable to meet its foreign exchange obligations, leading to a currency crisis. A currency crisis can further deteriorate the economy, leading to more financial instability
In conclusion, a currency board is a mechanism that pegs a country's domestic currency to a foreign currency. The fundamental objective of this exchange rate mechanism is to maintain investor confidence and promote economic stability. However, currency boards can cause financial instability when the central bank cannot meet its foreign exchange obligations to the country's monetary base. Currency crises can deteriorate an economy, leading to more financial instability.
To know more about currency visit
https://brainly.com/question/14695418
#SPJ11
A currency board is a monetary authority that issues notes and coins convertible into a foreign anchor currency at a fixed exchange rate. Currency boards can lead to financial crises if the currency's value is overvalued and the board does not adjust the exchange rate accordingly.
A currency board is a monetary authority that issues notes and coins that can be exchanged for a specified amount of a foreign anchor currency at a fixed exchange rate. The board must hold sufficient reserves of the anchor currency to fully cover the domestic currency issued. Currency boards are meant to provide a stable monetary environment, but if the currency's value is overvalued, the board may not adjust the exchange rate accordingly, leading to a financial crisis.
An example of this occurred in Argentina in 2001, where the currency board pegged the Argentine peso to the US dollar at a rate of 1:1. However, the peso was overvalued and the country was experiencing high levels of inflation. This made Argentine goods uncompetitive, which led to a trade deficit and a shortage of US dollars to back the peso. Eventually, the currency board was forced to devalue the peso, leading to a financial crisis.
Currency boards are monetary authorities that issue notes and coins that can be exchanged for a specific amount of a foreign anchor currency at a fixed exchange rate. They are designed to provide a stable monetary environment, but if the currency's value is overvalued, the board may not adjust the exchange rate accordingly, leading to a financial crisis.
To know more about amount visit.
https://brainly.com/question/32453941
#SPJ11
if the market price is $7, then what is consumer surplus? group of answer choices 700 1300 1500 1000 2600
If the market price is $7, then consumer surplus is Option (b) $1300.
Consumer surplus is a concept in economics that measures the benefit consumers receive when they are able to purchase a product at a price lower than the maximum price they are willing to pay. It represents the difference between what consumers are willing to pay for a good or service and the price they actually pay. In this case, if the market price is $7, we need to determine the consumer surplus.
To calculate consumer surplus, we need to know the demand curve or the willingness to pay of consumers for the product at various price levels. However, since we don't have that information in this question, we'll have to make some assumptions.
Let's assume that at a price of $7, the quantity demanded is 100 units. Now, let's consider the maximum price that each consumer is willing to pay. Suppose there are two consumers: Consumer A and Consumer B.
Consumer A is willing to pay up to $10 for the product, while Consumer B is willing to pay up to $9. Consumer A purchases 50 units, while Consumer B purchases 30 units.
To calculate the consumer surplus for each consumer, we need to find the difference between their willingness to pay and the actual price they pay, and then multiply it by the quantity purchased.
For Consumer A:
Consumer A's consumer surplus = (Willingness to pay - Actual price) x Quantity purchased
= ($10 - $7) x 50
= $3 x 50
= $150
For Consumer B:
Consumer B's consumer surplus = (Willingness to pay - Actual price) x Quantity purchased
= ($9 - $7) x 30
= $2 x 30
= $60
Now, we can sum up the consumer surplus for both consumers to find the total consumer surplus:
Total consumer surplus = Consumer A's consumer surplus + Consumer B's consumer surplus
= $150 + $60
= $210
Since we assumed only two consumers, the total consumer surplus we calculated represents the consumer surplus for the entire market. However, the given options do not include $210, so we need to make another assumption to find the closest answer.
Let's assume that there are more consumers with varying willingness to pay, resulting in a total consumer surplus of $1300. In this case, option (b) $1300 would be the closest answer.
It's important to note that the actual consumer surplus would depend on the specific demand curve and the distribution of willingness to pay among consumers, which we do not have information about in this question. The calculation here is just an illustrative example based on assumptions.
To know more about Consumer Surplus here
https://brainly.com/question/29025001
#SPJ4
You Have Just Received A Windfall From An Investment You Made In A Friend's Business. She Will Be Paying You $25,685 At The End Of This Year, $51,370 At The End Of Next Year, And $77,055 At The End Of The Year After That (Three Years From Today). The Interest Rate Is 6.3% Per Year. A. What Is The Present Value Of Your Windfall? B. What Is The Future Value Of
A. The present value of the windfall is $131,081.59.
B. The future value of the windfall is $157,788.71.
To calculate the present value and future value of the windfall, we need to use the concept of discounting and compounding, respectively.
A. Present Value:
The present value (PV) represents the current worth of future cash flows. We can calculate the present value of the windfall by discounting each cash flow back to the present using the given interest rate of 6.3%.
Using the formula for the present value of a single cash flow:
PV = CF / (1 + r)^n
Where:
PV = Present value
CF = Cash flow
r = Interest rate per period
n = Number of periods
Calculating the present value for each cash flow:
PV1 = $25,685 / (1 + 0.063)^1 = $24,167.95
PV2 = $51,370 / (1 + 0.063)^2 = $45,350.64
PV3 = $77,055 / (1 + 0.063)^3 = $61,562.00
The present value of the windfall is the sum of these present values:
Present Value = PV1 + PV2 + PV3 = $24,167.95 + $45,350.64 + $61,562.00 = $131,081.59
Therefore, the present value of the windfall is $131,081.59.
B. Future Value:
The future value (FV) represents the value of an investment after compounding at a specific interest rate over a given period.
To calculate the future value of the windfall, we can sum up the future value of each cash flow using the formula:
FV = CF * (1 + r)^n
Calculating the future value for each cash flow:
FV1 = $25,685 * (1 + 0.063)^1
= $27,257.16
FV2 = $51,370 * (1 + 0.063)^2
= $58,404.29
FV3 = $77,055 * (1 + 0.063)^3
= $72,127.26
The future value of the windfall is the sum of these future values:
Future Value = FV1 + FV2 + FV3
= $27,257.16 + $58,404.29 + $72,127.26
= $157,788.71
Therefore, the future value of the windfall is $157,788.71.
In conclusion, the present value of the windfall is $131,081.59, representing the current worth of the future cash flows. The future value of the windfall is $157,788.71, indicating the value of the investment after compounding at an interest rate of 6.3% over the given time period. These calculations consider the time value of money, allowing us to assess the current and future worth of the windfall based on the given cash flows and interest rate.
To know more about present value ,visit:
https://brainly.com/question/15904086
#SPJ11
you
know that the cross-price elasticity or demand between your product
and your competitors product is 0.4. what will happen to the demand
for your product if your competitor cuts their price by 20%?
then demand will fall by what %?
The demand for your product will increase by 8% if your competitor cuts their price by 20%. However, your product's demand will fall by 3.2% when your competitor reduces their price.
The cross-price elasticity of demand measures the responsiveness of the demand for one product to changes in the price of another product. In this case, the cross-price elasticity between your product and your competitor's product is 0.4. This positive value indicates that your product and your competitor's product are substitutes, meaning that they are closely related in terms of consumer preferences and usage.
To calculate the percentage change in the demand for your product when your competitor cuts their price by 20%, we can use the formula for cross-price elasticity:
Cross-Price Elasticity = (% Change in Quantity Demanded of Your Product) / (% Change in Price of Competitor's Product)
We know that the cross-price elasticity is 0.4, and we need to find the percentage change in quantity demanded of your product when the price of your competitor's product changes by -20% (a price cut of 20%). Let's denote the percentage change in quantity demanded of your product as ΔQ and the percentage change in price of your competitor's product as ΔP.
0.4 = ΔQ / (-20%)
To solve for ΔQ, we can rearrange the equation:
ΔQ = 0.4 * (-20%) = -8%
Therefore, the demand for your product will increase by 8% when your competitor cuts their price by 20%. This means that consumers will shift some of their demand from your competitor's product to your product due to the price decrease.
Now, let's calculate the percentage change in demand for your product when the price of your competitor's product changes. We can use the following formula:
Percentage Change in Demand for Your Product = Cross-Price Elasticity * Percentage Change in Price of Competitor's Product
Given that the cross-price elasticity is 0.4 and the price of your competitor's product is cut by 20%, we can calculate the percentage change in demand for your product:
Percentage Change in Demand for Your Product = 0.4 * (-20%) = -8%
Therefore, the demand for your product will fall by 3.2% when your competitor cuts their price by 20%. This means that even though some consumers will switch to your product due to the price decrease, the overall demand for your product will decrease by a smaller percentage.
Learn more about percentage change
https://brainly.com/question/31414636
#SPJ11
You are interested in buying the stock of a company. You expect the following annual dividends for the firm over the next three years: $1.39, $2.98, $4.8. After the third payment you expect the firm's growth rate to level of to 3.5% annually. If the discount rate for the firm is 0.077 what is the fair price of the stock?
The fair price of the stock of a company is $44.58. The computation is based on the dividends that will be received over the next three years and the expected growth rate of 3.5% annually.
We can use the dividend discount model formula to calculate the fair price of the stock. The formula for the fair price of the stock is: P = D1 / (1 + r)¹ + D2 / (1 + r)² + D3 / (1 + r)³ + P3 / (1 + r)³ where: D1 = $1.39, D2 = $2.98, D3 = $4.8P3 is the price of the stock after the third dividend payment. The price of the stock after the third payment is:P3 = D3 * (1 + g) / (r - g)where: g = 3.5%The fair price of the stock is:
P = $1.39 / (1 + 0.077)¹ + $2.98 / (1 + 0.077)² + $4.8 / (1 + 0.077)³ + $4.8 * (1 + 0.035) / (0.077 - 0.035) = $44.58
The dividend discount model is a useful tool for determining the fair price of a stock. It is based on the expected dividends that the company will pay out in the future. In this case, we are given the expected dividends for the next three years, which are $1.39, $2.98, and $4.8.
We also know that after the third payment, the expected growth rate of the company will level off to 3.5% annually. The dividend discount model formula is used to calculate the fair price of the stock.
To know more about Stock visit.
https://brainly.com/question/31940696
#SPJ11
A car rental agency in a major city has a total of 2800 cars that it rents from three locations: Metropolis Airport, downtown, and the smaller City Airport. Some weekly rental and return patterns are shown in the table (note that Airport means Metropolis Airport).
Rented from
Returned to AP DT CA
Airport (AP) 90% 10% 10%
Downtown (DT) 5% 80% 5%
At the beginning of a week, how many cars should be at each location so that the same number of cars will be there at the end of the week (and hence at the start of the next week)?
To determine the number of cars that should be at each location at the beginning of the week so that the same number of cars will be there at the end of the week, we need to analyze the rental and return patterns.
Let's denote the number of cars at each location at the beginning of the week as follows:
- AP: Number of cars at Metropolis Airport
- DT: Number of cars at downtown
- CA: Number of cars at City Airport
According to the rental and return patterns given in the table, we can set up the following equations:
For Metropolis Airport (AP):
AP = 0.9 * AP + 0.05 * DT + 0.1 * CA
For downtown (DT):
DT = 0.1 * AP + 0.8 * DT + 0.05 * CA
For City Airport (CA):
CA = 0.1 * AP + 0.05 * DT + 0.9 * CA
Simplifying these equations, we can rewrite them as:
0.1 * AP - 0.05 * DT - 0.1 * CA = 0 (Equation 1)
-0.1 * AP + 0.2 * DT - 0.05 * CA = 0 (Equation 2)
0.1 * AP - 0.05 * DT + 0.1 * CA = 0 (Equation 3)
We can solve this system of equations to find the values of AP, DT, and CA.
By solving the equations, we find that the solution is not unique, and there are multiple possible configurations of cars at each location that will result in the same number of cars at the end of the week.
For example, one possible solution is:
AP = 1000
DT = 1000
CA = 800
This means that at the beginning of the week, there should be 1000 cars at Metropolis Airport, 1000 cars downtown, and 800 cars at City Airport to ensure the same number of cars at each location at the end of the week.
To know more about rental and return patterns here: https://brainly.com/question/29849446
#SPJ11
Which Of The Following Statements Is NOT Correct? The DuPont Identity Analysis Decomposes Return On Equity (ROE) Into Profit Margin, Total Asset Turnover, And Equity Multiplier. The Equity Multiplier Measures The Firm’s Financial Leverage. The Profit Margin Measures The Firm’s Short-Term Liquidity. The Total Asset Turnover Measures The Firm’s Asset Use
The Profit Margin Measures the Firm's Short-Term Liquidity. This statement is NOT correct.
The profit margin is a financial ratio that measures a company's profitability by expressing its net income as a percentage of its revenue. It indicates how much profit a company generates for each dollar of sales.
Profit margin is not directly related to short-term liquidity, which refers to a company's ability to meet its short-term financial obligations. The correct statement is that the profit margin measures the firm's profitability, not its short-term liquidity.
The DuPont Identity analysis decomposes return on equity (ROE) into profit margin, total asset turnover, and equity multiplier, with each component representing a different aspect of the company's performance and financial structure.
To read more about Margin, visit:
https://brainly.com/question/30459935
#SPJ11
Subject: International Human Resource
Management
Please answer & Do not copy and paste answer
from previous chegg answer!
QUESTION 4.
- Explain the selection criteria of an expatriate. (10
marks)
In International Human Resource Management, an expatriate is a professional who is sent by an organization to work in another country on an assignment.
The expatriate is expected to be competent and skilled in their job, able to adapt to the host country's culture and communicate effectively in the local language. The selection of the expatriate is a crucial aspect that can impact the success of the international assignment.Selection criteria of an expatriateThe selection criteria for expatriates may vary depending on the organization's needs, but generally, they should possess the following attributes:1. Technical Competence
They should have experience in cross-cultural communication, ability to handle the new work environment, and the capacity to deal with the challenges of working in a foreign land.2. Adaptability: The expatriate should be able to adapt to the host country's culture, customs, and practices. They should have an open mind to learn new ways of doing things, be flexible, and have the ability to accept the host country's way of life.3. Language skills: Communication is a critical factor in international assignments. The expatriate should have the language skills to communicate effectively with the locals.
To know more about Resource visit:
https://brainly.com/question/32937458
#SPJ11