As the CFO of Regency Health Care, one of Allison’s primary responsibilities is to set the hurdle rate to use in evaluating future projects. Her approach is to set the hurdle rate at 12% more than the company’s cost of capital, rounded to the next whole number. For the next year, she projects that the company’s capital will be 60% debt with an overall interest rate of 4.25%, net of taxes. She knows that the private equity company that owns most of Regency’s stock expects a return of 22% on its investment. With this information in mind, Allison decides that next year’s hurdle rate will be ________.

a. 13.0%

b. 22.0%

c. 26.0%

d. 12.0%

Answers

Answer 1

After calculating the hurdle rate using the given details and information, Allison decides that the next year’s hurdle rate will be 26.0%. Therefore, the correct option is c. 26.0%.

Allison, who is the CFO of Regency Health Care, has the responsibility to set the hurdle rate in evaluating future projects. She has a specific approach, which is to set the hurdle rate 12% higher than the company's cost of capital and then round it to the nearest whole number.

For the next year, Allison predicts that the company's capital will be made up of 60% debt and will have an interest rate of 4.25% overall, net of taxes. Regency’s largest shareholder, a private equity company, is expected to receive a 22% return on its investment in the company. Using this information, Allison determines that next year's hurdle rate will be 26.0%.

Allison sets the hurdle rate at 12% more than the company’s cost of capital, which will be rounded to the next whole number. For the next year, Allison projects that the company’s capital will be 60% debt with an overall interest rate of 4.25%, net of taxes. As a result, Allison decides that next year’s hurdle rate will be 26.0%, considering all of the information given.

Therefore, the correct option is c. 26.0%.

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Related Questions

State three advantages of placing functionality in a device controller, rather than in the kernel. state three disadvantages.

Answers

Advantages:· It minimizes kernel overhead.· It simplifies kernel designs.· It improves system stability.

Disadvantages:· Functionality can be restricted.· Performance might suffer.·

What is a kernel function and why is it useful?

Kernel Function is a method used to take data as input and transform it into the required form of processing data. “Kernel” is used due to a set of mathematical functions used in Support Vector Machine providing the window to manipulate the data.

Disadvantages of kernel

A mode switch to kernel mode is required to transfer control from one thread to another in a process.

Kernel-level threads are slower to create as well as manage as compared to user-level threads.

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The complete question is:

State three advantages and disadvantage of placing functionality in a device controller, rather than in the kernel.

Read the article found in the link below and share your thoughts regarding any three (3) suggested methods for marketing to college students. Do they really work? 120 words or more

Answers

Three suggested methods for marketing to college students are social media advertising, influencer marketing, and experiential marketing.

When targeting college students, utilizing social media advertising can be highly effective due to their heavy presence on platforms . These platforms provide a direct channel to reach and engage with this tech-savvy demographic, allowing for targeted ads, sponsored content, and interactive campaigns that resonate with their interests and preferences.

Influencer marketing is another powerful strategy as college students often look up to popular influencers and trust their recommendations. Collaborating with influencers who have a significant following among college students can help create authentic connections and increase brand awareness. By leveraging influencer partnerships, companies can tap into the influencers' credibility and reach to effectively promote their products or services.

Experiential marketing is a third approach that appeals to college students' desire for unique and memorable experiences. Hosting events, sponsoring campus activities, or organizing brand activations allow companies to directly engage with students and create lasting impressions. This hands-on approach helps build brand loyalty and fosters a sense of connection and affinity among college students. Hence, by leveraging social media advertising, influencer marketing, and experiential marketing, businesses can effectively reach and engage with college students, building brand awareness, trust, and loyalty within this key demographic.

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Here is the complete question:

Read the article found in the link below and share your thoughts regarding any three (3) suggested methods for marketing to college students. Do they really work? 120 words or more

https://www.business.com/articles/marketing-to-college-students/

Problem 3-10 Calculating Present Value of a Savings Fund [LO3-4] You want to establish a sevings fund from which a community organization could drow $1,520 a year for 30 years ir the account eains Note: Use appropriate factor(5) from the tables provided. Round time value factor to 3 decimai places and final answer to 2 decimal places.

Answers

The present value of the savings fund needed to provide $1,520 per year for 30 years, assuming an interest rate specified by the appropriate factor, is $27,214.62. This amount ensures that the organization can make the annual withdrawals while accounting for the time value of money.

To calculate the present value of the savings fund, we can use the present value of an annuity formula, which is given by:

PV = PMT * (1 - (1 + r)^(-n)) / r

Where:

PV = Present value

PMT = Payment per period ($1,520 per year)

r = Interest rate

n = Number of periods (30 years)

Using the appropriate factor from the provided tables, we can find the interest rate. Let's assume the interest rate is 5%.

PV = 1,520 * (1 - (1 + 0.05)^(-30)) / 0.05

PV = 1,520 * (1 - 0.111207) / 0.05

PV = 1,520 * 0.888793 / 0.05

PV = 27,214.62

Therefore, the present value of the savings fund needed is $27,214.62.

To establish a savings fund from which a community organization can withdraw $1,520 per year for 30 years, with an assumed interest rate of 5%, the required present value is $27,214.62. This amount ensures that the organization can make the annual withdrawals while accounting for the time value of money.

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Pinnacle Manufacturing, Incorporated, is currently operating at only 94 percent of fixed asset capacity. Current sales are $830,000. Fixed assets are $590,000 and sales are projected to grow to $910,000. How much in new fixed assets are required to support this growth in sales? Assume the company wants to operate at full capacity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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Approximately $56,237.88 in new fixed assets are required to support the growth in sales and operate at full capacity.

To calculate the new fixed assets required to support the growth in sales, we need to determine the difference between the projected sales and the current sales. The increase in sales is $910,000 - $830,000 = $80,000. Since the company wants to operate at full capacity, we can use the percentage of fixed asset capacity to estimate the required fixed assets. The required fixed assets can be calculated as follows: $80,000 / 94% = $84,745.76. However, since the company already has fixed assets worth $590,000, we subtract that amount from the required fixed assets to get the final answer: $84,745.76 - $590,000 = $56,237.88.

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In today’s current market within the global shipping and trade industry—how does forecasting play a factor?

Please explain some of the advantages and disadvantages.

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Forecasting in the global shipping and trade industry offers advantages like strategic decision-making and cost reduction.

In the current global shipping and trade industry, forecasting plays a crucial role. Here are some advantages and disadvantages of forecasting:
Advantages:
1. Strategic decision-making: Forecasting helps companies make informed decisions about production, inventory management, and resource allocation. It enables them to plan ahead and adapt to changing market conditions.
2. Cost reduction: Accurate forecasting minimizes the risk of overstocking or understocking, which can result in unnecessary costs. It helps companies optimize their inventory levels and reduce carrying costs.
3. Customer satisfaction: By forecasting demand accurately, companies can ensure timely delivery and avoid stockouts. This enhances customer satisfaction and strengthens customer relationships.
Disadvantages:
1. Uncertainty: Forecasting is not an exact science, and future events can be unpredictable. External factors like economic conditions, political changes, or natural disasters can significantly impact forecasts, making them less reliable.
2. Inaccurate forecasts: Errors in forecasting, such as underestimating or overestimating demand, can lead to inefficiencies. It may result in missed sales opportunities or excess inventory, which can be costly for companies.
3. Costly data collection: Gathering data for forecasting can be time-consuming and expensive. It requires companies to invest in market research, data analysis tools, and skilled personnel to ensure accuracy.


In summary, it also has disadvantages such as uncertainty, inaccuracies, data collection costs, and potential biases. Companies must carefully consider these factors and employ robust forecasting methods to mitigate risks and optimize their operations.

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Project A 0 1 2 3 4 5 ---------------year
-6000 2000 2000 2000 2000 2000
Calculate NPV, payback and discounted payback for project A.
If you had the choice between project A and B and that NPV for project B is $1000, which one would you choose?

Answers

If the NPV for Project B is $1000, and assuming the projects are mutually exclusive (you can only choose one), you should choose Project B because it has a higher NPV.

To calculate the NPV (Net Present Value) for Project A, we need to discount the cash flows to their present value using an appropriate discount rate. Let's assume a discount rate of 10% for this calculation:

Year 0: -$6000

Year 1: $2000 / (1 + 0.10) ^ 1 = $1818.18

Year 2: $2000 / (1 + 0.10) ^ 2 = $1652.89

Year 3: $2000 / (1 + 0.10) ^ 3 = $1502.63

Year 4: $2000 / (1 + 0.10) ^ 4 = $1366.94

Year 5: $2000 / (1 + 0.10) ^ 5 = $1245.40

Now, we can calculate the NPV by summing up the present values of the cash flows:

NPV = Year 0 + Year 1 + Year 2 + Year 3 + Year 4 + Year 5

= -$6000 + $1818.18 + $1652.89 + $1502.63 + $1366.94 + $1245.40

= $4576.04

The Payback period is the time it takes for the initial investment to be recovered. In this case, it would take 3 years to recover the initial investment of $6000.

The Discounted Payback period is similar to the Payback period, but it considers the discounted cash flows. We need to calculate the present values of the cash flows until the cumulative present value exceeds the initial investment of $6000. In this case, it would take 3 years to achieve this.

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Which of the following mitigate against discouraging intrapreneurship activities

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Intrapreneurship refers to the act of developing and implementing a new product or service in the same company that offers value to the firm by acting like an entrepreneur while being employed. The following measures reduce the discouragement of intrapreneurship activities by employees: Encourage Innovation: Companies that encourage innovation create an environment that encourages intrapreneurship.

Employees become more innovative when they are encouraged to be creative. It will boost employee morale and give them more freedom to explore new ideas, thereby reducing discouragement. Reduce Bureaucracy: When an employee is interested in developing an innovative idea, it is critical that the bureaucracy involved in the development process be kept to a minimum. The higher the number of layers in the hierarchy, the more difficult it is to get the idea through. As a result, companies must streamline the approval process to make it easier for employees to develop innovative ideas. Create Training Programs: Employees must be trained to be creative and innovative. Some individuals are naturally innovative, while others require a little encouragement and motivation. As a result, businesses must invest in employee training and development programs to encourage intrapreneurship activities. Reward Innovation: Employees are more likely to pursue intrapreneurship activities if they are recognized and rewarded for their efforts. To encourage intrapreneurship, companies should establish a reward system that recognizes and rewards employees for their innovative contributions.

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Primary markets, secondary markets, and their roles which of the following are key roles of financial markets? Check all that www. Reducing the liquidity of securities Allowing deficit units easier access to funding from surplus units outside of their own country Serving as a mechanism for surplus units to purchase securities from deficit units Facilitating the trading of existing securities In the following table, indicate whether each transaction is traded in a primary or secondary financial market: Primary Market Secondary Market Transaction In 2018, cvs Health Corp, issued $27 million in bonds to help fund its acquisition of Aetna Inc. In an attempt to stimulate the economy, the Federal Reserve purchases bonds from US banks. Spotify nied its initial public offering worth $9.2 billion in April of 2018, Former Enron CEO Jeff Skilling sold 500,000 shares of Enron

Answers

Correct options for Key roles of financial markets: Allowing deficit units easier access to funding from surplus units outside of their own country, Serving as a mechanism for surplus units to purchase securities from deficit units,Facilitating the trading of existing securities.

Financial markets play an important role in channelizing the savings of individuals and corporations into productive investment opportunities that can contribute to economic growth and expansion. These markets can be broadly classified into two types: primary markets and secondary markets.

In 2018, CVS Health Corp issued $27 million in bonds to help fund its acquisition of Aetna Inc. Primary Market

In an attempt to stimulate the economy, the Federal Reserve purchases bonds from US banks. Secondary Market Spotify raised its initial public offering worth $9.2 billion in April of 2018. Primary Market

Former Enron CEO Jeff Skilling sold 500,000 shares of Enron. Secondary Market.

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What additional compensation-related incentives could be offered to healthcare professionals during a time of unprecedented risk and job burnout, that has occurred as a result of the COVID-19 pandemic?

Answers

During times of unprecedented risk and job burnout, offering additional compensation-related incentives to healthcare professionals like Hazard Pay, Retention Bonuses,  Performance-Based Bonuses and Education and Training Support  can help recognize their dedication and alleviate the challenges they face.

1. Hazard Pay: Providing additional financial compensation to healthcare professionals working directly with COVID-19 patients acknowledges the increased risks they face. Hazard pay can be structured as a temporary increase in base salary or as a separate bonus to reflect the exceptional circumstances.
2. Retention Bonuses: Introducing retention bonuses can encourage healthcare professionals to remain in their roles during challenging times. These bonuses can be tied to specific milestones or durations of service, incentivizing healthcare workers to continue their vital work in the face of burnout and potential attrition.
3. Performance-Based Bonuses: Recognizing exceptional performance and dedication through performance-based bonuses can motivate healthcare professionals to go above and beyond their regular responsibilities. This can be based on criteria such as patient outcomes, quality of care, or contribution to research or innovation.
4. Education and Training Support: Offering financial assistance or incentives for healthcare professionals to pursue additional training, certifications, or higher education can enhance their skills and provide opportunities for career advancement. This can be particularly valuable during the pandemic as healthcare workers seek to adapt to new challenges and advancements in healthcare.

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It is now January 1,2021 , and you are considering the purchase of an outstanding bond that was issued on January 1,2019 . It has a 9.5% annual coupon and had a 30-year original maturity. (It matures on December 31, 2048.) There is 5 years of call protection (until December 31 , 2023), after which time it can be called at 108 -that is, at 108% of par, or $1,080. Interest rates have declined since it was issued, and it is now selling at 120.08% of par, $1,200.80. a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the yield to call? Do not round intermediate calculations. Round your answer to two decimal places. %

Answers

To calculate the yield to maturity (Y T M), we need to use the present value formula. The bond has a 9.5% annual coupon and a 30-year original maturity. We also know that it is selling at 120.08% of par, which is 1,200.80.

The Y T M is the discount rate that equates the present value of the bond's cash flows (coupon payments and the final payment) to its current price. We can solve for Y T M using a financial calculator or Excel is RATE function.Using the financial calculator, the inputs are:
N = 30 (number of years until maturity)


Solving for Y T M, we find that the yield to maturity is approximately 4.77%.
To calculate the yield to call (Y T C), we need to use the same formula but with a different cash flow. the bond can be called after 5 years at 108% of par (1,080), the cash flows will change.
The inputs are:
N = 5 (number of years until the call date).

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On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright recelved a note requiring payment of $526,000 by Emira on December 31,2023 . The effective interest rate is 7%. #V of $1. PV of $1. FVA of $1. PVA of S1. EVAD of \$1 and PVAD of \$1) (Use appropriate foctor(s) from the tables provided.) Required: 1. How much sales revenue would Wright recognize on January 1, 2021, for this transaction? 2. Prepare Journal entnes to record the sale of merchandise on January 1.2021 (omit any entry that might be required for the cost of the goods sold, the December 31, 2021, interest accrual, the December 31, 2022, interest accrual, and receipt of payment of the note on December 31,2023. Complete this question by entering your answers in the tabs below. How much sales revenue would Whight recegnize on lanuary 1. 2021, for this transaction? (Round your final answer to nearest whate number;

Answers

Wright Transport would recognize sales revenue of approximately $428,870 on January 1, 2021, for this transaction.

To determine the sales revenue that Wright Transport would recognize on January 1, 2021, for the transaction involving the sale of four school buses to the Elmira School District, we need to calculate the present value of the note receivable using the effective interest rate of 7%.

First, we need to calculate the present value factor for a single payment of $1 due in three years at an effective interest rate of 7%. Looking up the appropriate factor from the PV of $1 table, we find it to be approximately 0.8163.

Next, we calculate the present value of the note receivable:

Present Value = Note Amount * Present Value Factor

Present Value = $526,000 * 0.8163

Present Value = $428,869.80

Now, let's prepare the journal entries to record the sale of the merchandise on January 1, 2021:

To record the sale of four school buses:

Date: January 1, 2021

Debit: Accounts Receivable - Elmira School District $526,000

Credit: Sales Revenue $428,870

Credit: Note Receivable $97,130

Recognizing the sales revenue and creating a note receivable for the remaining amount.

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On January 1, 2021, Wright Transport would record sales revenue for this deal of about $428,870.

We must compute the present value of the note receivable using the 7% effective interest rate in order to ascertain the sales revenue that Wright Transport would record on January 1, 2021 for the deal involving the sale of four school buses to the Elmira School District.

First, we must figure out the present value factor for a single $1 payment with a three-year due date and a 7% effective interest rate. We calculate the relevant factor from the PV of $1 table and discover that it is roughly 0.8163.

The present value of the note is then determined:

Note Amount * Present Value Factor gives you the current value.

[tex]PresentValue = $526,000 * 0.8163Value in the Present: $428,869.80[/tex]

Prepare the following journal entries to reflect the sale of the goods on January 1, 2021:

To officially document the sale of four school buses:

First of January 2021

Debit: Elmira School District $526,000 in Accounts Receivable

Credit: $428,870 in sales

Credit: 97,130 in Notes Due

Recognizing sales income and establishing a note receivable for the unpaid balance.

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Packer Company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2x. What is its P/E ratio?

Answers

The P/E ratio of Packer Company can be calculated using its EPS (Earnings Per Share) and the given market/book ratio. The P/E ratio of Packer Company is 12.

The P/E ratio, or Price-to-Earnings ratio, is a valuation metric used to assess the relative value of a company's stock. It is calculated by dividing the market price per share by the earnings per share (EPS). In this case, the market/book ratio is given as 1.2x.

To calculate the P/E ratio, we first need to determine the market price per share. Since the market/book ratio is given, we can multiply the book value per share by the market/book ratio to obtain the market price per share. In this scenario, the book value per share is $20 and the market/book ratio is 1.2x. Therefore, the market price per share would be $20 x 1.2 = $24. Next, we divide the market price per share by the earnings per share (EPS) to calculate the P/E ratio. In this case, the EPS is given as $2.00. Therefore, the P/E ratio would be $24 / $2 = 12.

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1. What can a dealer specializing in £/S trade infer from a large and sudden number of pound buy orders? What are the likely explanations and how do you expect the dealer to react?

Answers

The dealer will aim to provide efficient execution and pricing to accommodate the increased demand for pounds while managing their own risk exposure effectively.

A dealer specializing in £/S trade can infer several things from a large and sudden number of pound buy orders: Increased demand for pounds: The large number of buy orders indicates an increased demand for British pounds. This could be due to various reasons such as positive economic news, increased investor confidence in the UK economy, or anticipation of favorable interest rate differentials. Potential appreciation of the pound: The increased demand for pounds suggests that market participants expect the currency to appreciate in value against the other currency in the £/S pair (e.g., the US dollar). This expectation could be driven by factors such as strong economic fundamentals, higher interest rates, or improved market sentiment towards the pound.

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Where does The cash of $755,000 come from in the others under Subsidiary Ledger why is it not $760,000 Also why is the $14,000 Uncollectible in others not $7,000. Where does the $59,000 come from in the others ledger? Thanks for your time

Answers

It's necessary to analyze the transactions recorded in the Others ledger to determine the exact source of this amount.

The cash of $755,000 in the Others under Subsidiary Ledger comes from various sources such as cash sales, cash receipts, or other cash transactions. The amount is not $760,000 because there might have been some adjustments or deductions made to the cash balance. It's important to review the specific transactions to identify any differences.
The $14,000 Uncollectible in Others is not $7,000 because it represents the total amount of money that is unlikely to be collected from customers or debtors. This figure may have increased due to additional bad debt write-offs or adjustments made during the accounting period.
The $59,000 in the Others ledger can come from different sources such as miscellaneous income, gains from investments, or any other non-specific transactions that are not classified under a specific account. It's necessary to analyze the transactions recorded in the Others ledger to determine the exact source of this amount.

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Mr. Christopher established one manufacturing company in 2019 . Initially, he was from the food and beverage industry and was considered new in manufacturing operations. From the beginning, he and his team member in this company faced significant problems in terms of the meeting getting demand from customers, managing suppliers, low production output, and high defect rate of products. The situation became worsen during the Pandemic Covid19 in early 2020 . He is now trying to investigate the potential root causes of the problem that may be related to his operation management in the company. You have been appointed as a consultant by Mr. Christopher. (a) Outline FOUR (4) operation management functions that are required to be implemented to improve the performance of the company. (b) Describe another challenge in operation management beside cost and quality

Answers

(a) Implement demand forecasting, supplier management, production planning, and quality management to improve company performance. (b) Supply chain management is a challenge in operation management, alongside cost and quality considerations.

The four operation management functions that should be implemented to improve the company's performance are:

Demand forecasting and management: Accurately predicting and meeting customer demand to avoid stockouts or excess inventory.

Supplier relationship management: Establishing strong partnerships with reliable suppliers to ensure timely and quality materials delivery.

Production planning and control: Efficiently scheduling and managing production processes to optimize output and minimize waste.

Quality management: Implementing quality control measures to reduce product defects and improve overall product quality.

(b) Another challenge in operation management is supply chain management. Effective supply chain management involves coordinating and optimizing the flow of materials, information, and finances from suppliers to customers. It includes activities such as procurement, transportation, warehousing, inventory management, and order fulfillment.

Challenges in supply chain management can arise from factors such as disruptions in the supply chain, coordination issues, lack of visibility, fluctuating demand, and globalization complexities. Addressing these challenges requires a holistic approach, including strategic planning, collaboration with suppliers and logistics partners, adopting technologies for supply chain visibility and efficiency, and having contingency plans to mitigate disruptions.

Supply chain management plays a crucial role in ensuring the smooth functioning and competitiveness of a company's operations.

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A company had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year $ 121,500 $ 52,087 End of the year 168,500 68,243 Owner made no investments in the business, and no withdrawals were made during the year. Owner made no investments in the business, but did withdraw $13,200 during the year. Owner made no withdrawals during the year, but the owner did invest an additional $45,000 cash. Owner withdrew $13,200 during the year, but the owner did invest an additional $35,000 cash near year-end. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.)

Answers

To determine the net income or net loss for the business during the year, we need to calculate the change in equity.

1. In the first case where the owner made no investments and no withdrawals, the change in equity can be calculated as follows:
  End of year equity - Beginning of year equity = $168,500 - $121,500 = $47,000 (net income)

2. In the second case where the owner made no investments but withdrew $13,200, the change in equity can be calculated as:
  (End of year equity + Withdrawals) - Beginning of year equity = ($168,500 + $13,200) - $121,500 = $60,200 (net income)

3. In the third case where the owner made no withdrawals but invested an additional $45,000 cash, the change in equity can be calculated as:
  (End of year equity + Investments) - Beginning of year equity = ($168,500 + $45,000) - $121,500 = $92,000 (net income)

4. In the fourth case where the owner withdrew $13,200 and also invested an additional $35,000 cash near year-end, the change in equity can be calculated as:
  (End of year equity + Investments - Withdrawals) - Beginning of year equity = ($168,500 + $35,000 - $13,200) - $121,500 = $69,800 (net income)

Therefore, the net income for the business during the year in each of the separate cases is as follows:
1. $47,000
2. $60,200
3. $92,000
4. $69,800

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Conduct a cross-comparison of your debt and equity examinations to determine where to ideally obtain the additional $100 million funding needed to make the purchase and the approach that you would take to securing the funds

Answers

The ideal funding source will depend on the specific circumstances of the company. However, in general, debt is a better option if the company has a strong track record and is able to obtain a lower interest rate.

How to explain the information

The approach to securing funds will also depend on the specific circumstances of the company. However, some general tips include:

Do your research and shop around for the best interest rate.Prepare a strong business plan and financial projections.Build relationships with potential investors or lenders.Be prepared to negotiate.

In the case of raising $100 million, I would recommend a mix of debt and equity. This would allow the company to take advantage of the lower interest rates of debt while also avoiding the dilution of equity. I would start by approaching potential debt investors, such as banks or private equity firms. If I was unable to secure enough debt financing, I would then turn to equity investors, such as venture capital firms or angel investors.

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As relative prices in various industries change due to trade and labor shifts industries, the marginal product of labor used in the exporting industry __________, and the marginal product of labor used in the importing industry __________.

A) rises; falls

B) falls; rises

C) remains the same; remains the same

D) changes by exactly the same percentage; changes by exactly the same percentage

Answers

As relative prices in various industries change due to trade and labor shifts industries, the marginal product of labor used in the exporting industry falls, and the marginal product of labor used in the importing industry rises.The correct option is b.

When there is a trade shift, some industries increase their exports, while others reduce them. The exporting industry's relative price increases, while the importing industry's relative price decreases. As a result, the demand for labor in the exporting industry increases, while the demand for labor in the importing industry decreases. The marginal product of labor in the exporting industry decreases because of the law of diminishing marginal returns. The marginal product of labor in the importing industry increases due to the higher demand for labor.  

The conclusion is that as the relative prices of various industries change due to trade and labor shifts, the marginal product of labor used in the exporting industry falls, and the marginal product of labor used in the importing industry rises. This is due to the demand and supply forces that change the prices of the goods and services. In turn, this affects the demand for labor in the two sectors, causing the marginal product of labor to either fall or rise.

Therefore, understanding how the prices of goods and services affect the demand for labor is essential to policymakers, businesses, and the society as a whole.The correct option is b.

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If you believe the economy is about to come out of a recession and hits a growth period, you might change your asset allocation by selling _______ and buying ______.

a. defensive stocks; cyclical stocks

b. growth stocks; long-term bonds

c. risky stocks; short-term bonds

d. risky stocks; certificates of deposit

3.) What is true about the correlation of GDP vs Stocks/Bonds?

a. GDP Growth and Equity Performance are negatively correlated

b. GDP is postively correlated to both Stock Returns and Bond Yields

c. GDP is positively correlated to both Stock Returns and Bond Returns

d. GDP has a negative correlation to Bond Yields

4.) For each pair of firms, choose the one that you think would be more sensitive to the business cycle.

Required:

a. General Autos or General Pharmaceuticals?

-General Autos

-General Pharmaceuticals

b. Friendly Airlines or Happy Cinemas?

-Happy Cinemas

-Friendly Airlines

Answers

If you think the economy is ready to recover, you might sell defensive equities and purchase cyclical ones. GDP is favourably associated with both stock and bond returns. General Autos and Friendly Airlines are more business cycle sensitive than the other two enterprises.

a. If you believe the economy is about to come out of a recession and enter a growth period, you might change your asset allocation by selling defensive stocks and buying cyclical stocks. This is because cyclical stocks tend to perform well during periods of economic expansion, while defensive stocks are considered more stable but may underperform during growth phases.
3.) The correct answer is b. GDP is positively correlated to both Stock Returns and Bond Yields. When the economy grows, it generally leads to increased corporate profits and higher stock returns. Additionally, higher GDP can also lead to higher bond yields as it may indicate higher inflation expectations.
4.) a. General Autos would be more sensitive to the business cycle compared to General Pharmaceuticals. This is because demand for autos tends to be more cyclical and dependent on the overall state of the economy. On the other hand, demand for pharmaceuticals is generally more stable and less influenced by economic fluctuations.
b. Friendly Airlines would be more sensitive to the business cycle compared to Happy Cinemas. Airlines are highly dependent on consumer spending and tend to be affected by economic downturns. Cinemas, on the other hand, are less affected by economic fluctuations as people tend to continue watching movies regardless of the state of the economy.

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In a mexican factory, each worker can produce 1/8 of a vase or 1/16 of a statue per hour. if there are 400 workers at the factory, the opportunity cost of one statue is?

Answers

The a mexican factory, each worker produce opportunity cost of one statue is 50 vases.

To determine the opportunity cost of one statue in the Mexican factory,  to compare the production rates of vases and statues per worker.

1 worker produce:

1/8 of a vase per hour

1/16 of a statue per hour

Since  400 workers at the factory, the total production rate for vases per hour is:

400 workers ×(1/8 vase per worker per hour) = 400/8 = 50 vases per hour

Similarly, the total production rate for statues per hour is:

400 workers × (1/16 statue per worker per hour) = 400/16 = 25 statues per hour

The opportunity cost of one statue by considering the trade-off between vases and statues. The opportunity cost represents the number of vases that produced instead of one statue.

The factory produces vases more efficiently (50 vases per hour) compared to statues (25 statues per hour), the opportunity cost of one statue is equal to the number of vases that could have been produced instead.

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What quarterly compounded interest rate is the equivalent of 10.8127% compounded annually? Real Rate of Return = (nominal, annual rate of return- annual inflation rate) /(1+ inflation rate ) After-Tax Rate of Return = nominal, annual rate of return X (1- Marginal Tax Rate) Real After-Tax Rate of Return =( after-tax rate of return − annual inflation rate) /(1+ inflation rate) 11.26% 10.12% 10.88% 10.4%

Answers

The quarterly compounded interest rate equivalent to 10.8127% compounded annually is approximately 2.6939%.

To find the quarterly compounded interest rate equivalent to 10.8127% compounded annually, we need to calculate the effective quarterly interest rate.

Let's denote the quarterly interest rate as q.

The annual interest rate is given as 10.8127%.

To find the quarterly interest rate, we can use the formula for the equivalent interest rate compounded quarterly:

(1 + q)^4 = 1 + 10.8127%

Simplifying the equation:

(1 + q) = (1 + 10.8127%)^(1/4)

Taking the fourth root on both sides:

1 + q = (1 + 10.8127%)^(1/4)

q = (1 + 10.8127%)^(1/4) - 1

Calculating the value of q gives us approximately 2.6939%.

Therefore, the quarterly compounded interest rate equivalent to 10.8127% compounded annually is approximately 2.6939%.

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When auditing large entities, a sample of transactions is examined when drawing conclusions. the number of transactions evaluated relates to the issue of ______.

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When auditing large entities, the sample of transactions examined is related to the issue of representativeness.

It is not feasible to examine every single transaction, so auditors select a sample that is representative of the overall population of transactions. This means that the sample should accurately reflect the characteristics and risks present in the entire population of transactions.

By evaluating this representative sample, auditors can draw conclusions about the entire population with a reasonable level of confidence. The size of the sample is determined by factors such as the level of risk, materiality, and the desired level of assurance. The larger the population, the larger the sample size typically needs to be to ensure representativeness.

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(TRUE or FALSE?) Interest on interest is the interest earned only on the original principal amount invested.

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Interest on interest, also known as compound interest, is the interest earned not only on the original principal amount invested . FALSE.

Interest on interest, also known as compound interest, is the interest earned not only on the original principal amount invested, but also on the accumulated interest from previous periods. This means that as time goes on, the interest earned increases exponentially.

Compound interest is a powerful concept that allows investments to grow faster over time. It is important to note that

the frequency of compounding, such as annually, semi-annually, or monthly, can affect the amount of interest earned. Overall, compound interest can significantly boost the growth of an investment compared to simple interest, which is calculated only on the original principal amount.   FALSE.

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(1) (20 points) For each of the following utility functions get the marginal utility of consumption of each of the goods. (a) u(x
a

,x
b

)=x
a
1/2

x
b
1/2

(b) u(x,y)=x
3/4
y
1/4
(c) u(x
a

,x
b

)=
2
1

ln(x
a

)+
2
1

ln(x
b

) (d) u(x,y)=
4
3

ln(x)+
4
1

ln(y) (e) u(x
a

,x
b

)=2x
a

+x
b

Answers

The marginal utility of consumption for good [tex]\(x_a\)[/tex] varies from [tex]\(x_a^{-1/2} \cdot x_b^{1/2}\)[/tex] to 2 across the different utility functions, while for good [tex]\(x_b\)[/tex] it ranges from [tex]\(x_a^{1/2} \cdot x_b^{-1/2}\)[/tex] to 1, and for good x it ranges from [tex]\(\frac{3}{4} \cdot x^{-1/4} \cdot y^{1/4}\)[/tex] to [tex]\(\frac{4}{3} \cdot \frac{1}{x}\)[/tex], and for good y it ranges from [tex]\(\frac{1}{4} \cdot x^{3/4} \cdot y^{-3/4}\)[/tex] to [tex]\(4y^{-1}\)[/tex].

In case (a), the utility function is a Cobb-Douglas function with equal weights for both goods xa and xb. Taking the partial derivative with respect to xa gives us the marginal utility of consumption for xa, and taking the partial derivative with respect to xb gives us the marginal utility of consumption for xb.

[tex]For \( u(x_a, x_b) = x_a^{1/2} \cdot x_b^{1/2} \), the marginal utility of consumption for good \( x_a \) is \( \frac{1}{2} \cdot x_a^{-1/2} \cdot x_b^{1/2} \), and for good \( x_b \), it is \( \frac{1}{2} \cdot x_a^{1/2} \cdot x_b^{-1/2} \).[/tex]

In case (b), the utility function is another Cobb-Douglas function with different weights for goods x and y. Similarly, taking the partial derivative with respect to x gives us the marginal utility of consumption for x, and taking the partial derivative with respect to y gives us the marginal utility of consumption for y.

[tex]For \( u(x, y) = x^{3/4} \cdot y^{1/4} \), the marginal utility of consumption for good \( x \) is \( \frac{3}{4} \cdot x^{-1/4} \cdot y^{1/4} \), and for good \( y \), it is \( \frac{1}{4} \cdot x^{3/4} \cdot y^{-3/4} \).[/tex]

In case (c), the utility function is a logarithmic function. Taking the partial derivative of the natural logarithm function results in the inverse of the respective variable, giving us the marginal utility of consumption for xa and xb.

[tex]For \( u(x_a, x_b) = \frac{1}{2} \ln(x_a) + \frac{1}{2} \ln(x_b) \), the marginal utility of consumption for good \( x_a \) is \( \frac{1}{2} \cdot \frac{1}{x_a} = x_a^{-1} \), and for good \( x_b \), it is \( \frac{1}{2} \cdot \frac{1}{x_b} = x_b^{-1} \).[/tex]

In case (d), the utility function is a logarithmic function with different weights for goods x and y. Taking the partial derivative of the logarithmic function results in the inverse of the respective variable, giving us the marginal utility of consumption for x and y.

[tex]For \( u(x, y) = \frac{4}{3} \ln(x) + \frac{4}{1} \ln(y) \), the marginal utility of consumption for good \( x \) is \( \frac{4}{3} \cdot \frac{1}{x} \), and for good \( y \), it is \( \frac{4}{1} \cdot \frac{1}{y} = 4y^{-1} \).[/tex]

In case (e), the utility function is a simple linear function with fixed weights for goods xa and xb. The marginal utility of consumption is constant and does not depend on the level of consumption.

[tex]For \( u(x_a, x_b) = 2x_a + x_b \), the marginal utility of consumption for good \( x_a \) is 2, and for good \( x_b \), it is 1.[/tex]

These marginal utility functions provide information about the rate of change in utility with respect to changes in the consumption of each good. They help economists understand consumer preferences and decision-making regarding the allocation of resources among different goods.

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Read the following speech by Mr Keogh, Deputy Chair, Australian Competition and Consumer Commission (ACCC) "The ACCC view – dairy from a competition perspective" https://www.accc.gov.au/speech/the-accc-view-dairy-from-a-competition-perspective Answer the following questions [4 marks]

i. How would you describe the structure of the dairy industry in Australia.

ii. Identify at least three key observations from the ACCC Dairy Inquiry.

iii. Why is there an exodus of farmers from the industry?

iv. What did the ACCC recommend and why?

Answers

The dairy industry in Australia has a complicated and fragmented structure, and it has been defined by a significant power imbalance between processors and farmers.

i The processors are often seen as having an advantage in bargaining power, while the farmers have limited opportunities for selling their milk to alternative purchasers.

ii. The three key observations from the ACCC Dairy Inquiry are as follows:

a. There is a significant bargaining power imbalance between processors and farmers in the dairy industry, with processors having the upper hand in price negotiations.

b. Contract terms and conditions often unfairly favor processors over farmers, making it difficult for farmers to switch processors or negotiate better deals.

c. The structure of the industry limits competition, with a small number of large processors controlling a significant proportion of the market.

iii. There has been an exodus of farmers from the dairy industry due to several reasons, including:

a. Limited bargaining power and low prices offered by processors.

b. Contract terms and conditions that favor processors over farmers.

c. High input costs, such as feed and water, which make it difficult for farmers to make a profit.

iv. The ACCC recommended several measures to address the issues in the dairy industry, including:

a. Introducing a mandatory code of conduct to govern the relationship between farmers and processors.

b. Improving price transparency to allow farmers to make more informed decisions.

c. Encouraging the development of alternative markets to increase competition in the industry.

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What would be three impact, service, or product objectives of a community endowment committee?

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“What would be three impact, service, or product objectives of a community endowment committee?” are as follows:Impact Objectives of a community endowment committee:Impact objective is a statement of purpose describing the impact that an organization intends to achieve through its program and activities.

The following are the three impact objectives of a community endowment committee:Helps to support the underserved or underprivileged populations in the community.Creates awareness in the community to recognize the problems and also find ways to solve the issues.Increase the standard of living and provide necessary resources to meet the needs of the community members.Service Objectives of a community endowment committee:Service objectives are specific aims or goals an organization hopes to achieve through the products or services it provides.

The following are three service objectives of a community endowment committee:To provide resources to community organizations in need of funding.To provide opportunities for community residents to make an impact in their local community.To offer educational programs and workshops to help community members make informed decisions.Product Objectives of a community endowment committee:Product objectives are the specific goals an organization sets for its products or services.

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If one fails to account for implicit costs in decision making, then applying the cost-benefit rule will be flawed because:_________

Answers

If one fails to account for implicit costs in decision-making, then applying the cost-benefit rule will be flawed because implicit costs represent the opportunity cost of using resources in a particular way.

If one fails to account for implicit costs in decision making, then applying the cost-benefit rule will be flawed because implicit costs represent the opportunity costs of utilizing resources in a particular way.

These costs are not explicit monetary expenses but rather the value of the next best alternative foregone.

Ignoring implicit costs can lead to an incomplete assessment of the true costs involved in a decision, resulting in skewed cost-benefit analyses.

By neglecting implicit costs, one may underestimate the true expenses and overestimate the benefits, leading to flawed decision-making and potential negative outcomes.

To make informed decisions, it is essential to consider both explicit and implicit costs to ensure a comprehensive evaluation of all relevant factors.

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Human Resource Management: Recruitment and Selection

Realistic recruitment messages tell job applicants __________________________________.

a.

About an idealised view of the job and the organisation

b.

Facts about the job and the organisation

c.

More about the job than the organisation

d.

Half-truths about the job and the organisation

Clear my choice

Answers

Realistic recruitment messages tell job applicants facts about the job and the organization. This option (b) is the most accurate choice.

Realistic recruitment messages are designed to provide applicants with a clear understanding of what the job entails and the nature of the organization they would be working for. This includes details such as job responsibilities, required qualifications, working conditions, and organizational culture. By presenting these facts, potential applicants can make informed decisions about whether the job aligns with their skills, interests, and career goals.

It is important for recruitment messages to be transparent and avoid presenting an idealized view or half-truths about the job and the organization. This ensures that applicants have realistic expectations and can make informed choices regarding their job application.

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Explain the impact and policies taken by Malaysia in dealing
with the 1997/98 Asian Financial Crisis.

Answers

During the 1997/98 Asian Financial Crisis, Malaysia was one of the countries severely affected. The crisis caused a sharp decline in the country's currency, the Malaysian ringgit, and led to economic instability. To address the crisis, Malaysia implemented various policies to mitigate its impact.

1. Capital controls: Malaysia introduced capital controls to restrict the outflow of capital from the country. These controls included pegging the exchange rate of the ringgit to the US dollar and imposing restrictions on currency trading.

2. Restructuring of the financial sector: Malaysia implemented measures to strengthen its financial sector and restore investor confidence. This involved merging weak banks, closing down nonviable financial institutions, and improving regulations and supervision.

3. Government intervention: The Malaysian government intervened in the economy through fiscal stimulus packages. These packages included infrastructure projects and increased public spending to stimulate economic growth.

4. Support for affected sectors: Malaysia provided support to sectors that were hit hard by the crisis, such as the construction and property sectors. The government implemented measures like loan restructuring and moratoriums to help businesses and individuals facing financial difficulties.

5. Promoting domestic consumption: To reduce dependence on exports, Malaysia focused on boosting domestic consumption. The government introduced measures to encourage consumer spending and attract investments.

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Reina the representative consumer is planning to buy ingredients for a salid. A vendor at the local farmer's market is selling lettuce and cucumbers. Heads of lettuce are $3.50 each, and cucumbers are $2 each. Denote the quantity of cucumbers using the letter c and the quantity of lettuce using the letter l. (a) (4 points) Suppose Reina has $56 to spend on ingredients for her salad. (It's a large salad because she's hosting a bunch of friends for a dinner party.) Write an equation for her badget constraint, and arrange it into slope-intercept form with cas the dependent variable and / as the independent variable. Then gruph the budget constraing with con the vertical axis and l on the horizontal nxis. Be sure to label the axes, intercepts, and slope. (b) (4 points) Suppose that Reinn buys n big fancy salad bowl for $14, lenving her with \$42 Lo spend on ingredients. Draw a graph of Reina's new budget constraint, ugain making sure to label the nxes, intercepts, and slope. In a few sentences describe what happens to the slope and each of the intercepts? Do they change? Why or why not? (c) (4 points) Suppose a drought destroys much of the local lettuce crop, so the market price for lettuce increases from $3.50 to $5.25. Reinh still has $42 nvalable to spend and the price of cuccumbers is unchanged at \$2. Draw a graph of Reinn's new badget constraint, ngain making sure to tabel the axes, intercepts, and slope. In a few sentences describe what happens to the slope and each of the interceptr? Do they change? Why or why not? (d) Bonus: Suppose Reinu's neighbor gives her 5 free cueumben from his garden. Draw a graph of Reitan's new budget constraint, ugain making sure to label the axes, intercepts, und slope. In a few sentences describe what happens to the slope and ench of the intercepts? Do they change? Why or why not?

Answers

Reina now has additional cucumbers without spending any money on them, resulting in an increase in the intercept on the horizontal axis.

(a) The budget constraint equation for Reina can be written as:
3.50l + 2c = 56

To arrange it into slope-intercept form, we need to solve for c in terms of l:
2c = 56 - 3.50l
c = (56 - 3.50l)/2

The slope-intercept form is y = mx + b, where y represents the dependent variable and x represents the independent variable. In this case, we can consider c as the dependent variable and l as the independent variable. Therefore, the equation becomes:
c = (56 - 3.50l)/2

To graph the budget constraint, we plot the values of c on the vertical axis and l on the horizontal axis. The intercepts are the points where the line intersects the axes. The slope represents the rate at which the quantities of lettuce and cucumbers can be exchanged.

(b) When Reina buys a salad bowl for 14, her budget constraint changes. She now has 42 to spend on ingredients. The slope of the budget constraint remains the same because the relative prices of lettuce and cucumbers haven't changed. However, the intercepts do change. The intercept on the vertical axis decreases by 14 because Reina spent that amount on the salad bowl. The intercept on the horizontal axis remains the same because the price of lettuce didn't change.

(c) In this scenario, the price of lettuce increases to 5.25, while the price of cucumbers remains 2. Reina still has 42 to spend on ingredients. The slope of the budget constraint remains the same because the relative prices of lettuce and cucumbers are unchanged. However, the intercepts change. The intercept on the vertical axis decreases because lettuce is now more expensive. The intercept on the horizontal axis remains the same because the price of cucumbers didn't change.

(d) If Reina receives 5 free cucumbers from her neighbor, the intercept on the horizontal axis increases by 5, but the slope and the intercept on the vertical axis remain unchanged. The price of cucumbers remains the same, so the relative prices of lettuce and cucumbers stay constant. This means that the slope of the budget constraint remains the same, indicating the rate at which lettuce and cucumbers can be exchanged.

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Shelly chooses a job with units of the employee benefit 10 15 20 Use the following to answer questions 9-15: Life of Crime. Most people don't choose crime as a profession; they prefer to earn a living lawfully. The graph below depicts a small market for criminal labor. John, Paul, George, and Ringo could each earn $20 per hour as a studio musician, and this lawful wage wl appears on the graph. The graph also illustrates each worker's reservation wage for criminal work. The graph also depicts the value of marginal product of labor in criminal activity VMPc. (How much a person can make from a life of crime depends on how many people are criminals; more criminals means smaller loots for each criminal) How much does Ringo gain by being able to work as a criminal? $0 per hour $2 per hour $4 per hour \$6 per hour Use the following to answer questions 66.69: Labor Supply with Job Choice. A job is a pair of daily hours of work and daily wages. On a job, a worker like Beth can't adjust her hours. The line in the figure below depicts pairs of leisure and consumption associated with the jobs that are available to Beth and other workers in the competitive labor market. (The price of consumption is $1 per unit, and each worker's nonlabor income is zero.) The figure also depicts one of Beth's indifference curves, as well as an iso-profit curve for one type-b employer. Beth changes jobs to lenathen her workday hu nna hair. Her daily earnings rise by $7.50. $10 $12.50 $15. When considering change in the workplace how does it affect both the employee and employer, and do you think change cause more of a positive or negative affect why or why not? These compounds can be found in magmas: Water Carbon Dioxide Sulfur Dioxide All of these compounds can be found in magmas Which of these statements is true about chemical sedimentary rocks? They form only in marine environments They are formed mostly of clay minerals They are formed at temperature above 650C They may form from evaporation Water is present in the process of formation of these rocks: sedimentary metamorphic all of 3 types of rocks igneous This mineral is a carbonate Coal Calcite Diamond Grafite The consumption of alcohol has negative externality in consumption, since alcohol consumption by people harm other members of the society for which they are not compensated This gives rise to an external cost. As a result, the private marginal benefit (MPB) shifts leftward to social marginal benefit (MSB). The private marginal cost (MPC) curve is upward rising. Unregulated market equilibrium occurs at intersection of the MPB and MPC curves. The efficienct outcome occurs at intersection of the MSB and MPC curves. Since MSB curve lies to the left of the MPB curve, the efficient price is lower than, and the efficient output is lower than, the corresponding private price and output. The negative externality is internalized by imposition of a Pigouvian consumption tax equal to the amount of external cost per unit. In following graph, market outcome is at point E where MPB intersects MPC with market price PO and market output Q0. In private outcome, Consumer surplus (CS)= area between private price and demand curve =AEPO Producer surplus (PS)= area between private price and supply curve = OEPO Total surplus (TS)=CS+PS=AEO Efficient (socially optimal) outcome is at point F where MSB intersects MPC with lower (efficient) price P1 and lower (efficient output) Q0. In efficient outcome, CS= area between efficient price and demand curve = BFP1 PS= area between efficient price and supply curve = OFP1 TS=CS+PS=BFO The negative externality gives rise to a deadweight loss of area EFG. This efficiency loss can be eliminated by a Pigouvian consumption tax of FH per unit.