Assume that today is March 28, 2019. Natasha Kingery is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service representative for a telephony corporation located in Seattle, Washington, and earns $38,000 a year that she anticipates will grow at 3% per year. Natasha hopes to retire at age 65 and has just begun to think about the future. Natasha has $75,000 that she recently inherited from her aunt. She invested this money in 10-year Treasury bonds. She is considering whether she should further her education and would use her inheritance to pay for it. She has investigated a couple of options and is asking for your help as a financial planning intern to determine the financial consequences associated with each option. Natasha has already been accepted to two programs and could start either one soon. One alternative that Natasha is considering is attaining a certification in network design. This certification would automatically promote her to a Tier 3 field service representative in her company. The base salary for a Tier 3 representative is $10,000 more than the salary of a Tier 2 representative, and she anticipates that this salary differential will grow at a rate of 3% a year for as long as she remains employed. The certification program requires the completion of 20 Web-based courses and a score of 80% or better on the final exam. She has learned that the average amount of time necessary to finish the program is one year. The total cost of the program is $5000, due when she enrolls in the program. Because she will do all the work for the certification on her own time, Natasha does not expect to lose any income during the certification process. Another option is going back to school for an MBA degree. With an MBA degree, Natasha expects to be promoted to a managerial position in her current firm. The managerial position pays $20,000 a year more than her current position. She expects that this salary differential will also grow at a rate of 3% per year for as long as she keeps working. The evening program, which will take three years to complete, costs $25,000 per year, due at the beginning of each of her three years in school. Because she will attend classes in the evening, Natasha doesn't expect to lose any income while she is earning her MBA if she chooses to undertake it. 1. Determine the interest rate Natasha is currently earning on her inheritance by going to Yahoo! Finance (http://finance.yahoo.com) and clicking the 10 Yr Bond link in the Market Summary section or enter ^TNX in the symbol lookup field. Then go to the Historical Prices link and enter the appropriate date, March 28, 2019, to obtain the closing yield or interest rate that she is earning. Use this interest rate as the discount rate for the remainder of this problem. 2. Create a timeline in Excel for Natasha's current situation, as well as the certification program and MBA degree options, using the following assumptions: a. Salaries for the year are paid only once, at the end of the year. b. The salary increase becomes effective immediately upon graduating from the MBA program or being certified. That is, because the increases become effective immediately but salaries are paid at the end of the year, the first salary increase will be paid exactly one year after graduation or certification. 3. Calculate the present value of the salary differential for completing the certification program. Subtract the cost of the program to get the value of undertaking the certification program. 4. Calculate the present value of the salary differential for completing the MBA degree. Calculate the present value of the cost of the MBA program. Based on your calculations, determine the value of undertaking the MBA. 5. Based on your answers to Questions 3 and 4, what advice would you give to Natasha? What if the two programs are mutually exclusive? If Natasha undertakes one of the programs, there is no further benefit to undertaking the other program. Would your advice change?

Answers

Answer 1

To answer these questions, let's go step by step: To determine the interest rate Natasha is currently earning on her inheritance, you will need to visit Yahoo! Finance (http://finance.yahoo.com) and click on the 10 Yr Bond link in the Market Summary section.

Then, go to the Historical Prices link and enter the appropriate date, which is March 28, 2019, to obtain the closing yield or interest rate. Create a timeline in Excel for Natasha's current situation, the certification program option, and the MBA degree option. Use the assumptions provided, such as salaries being paid once at the end of the year and the salary increase becoming effective immediately upon graduation or certification. Calculate the present value of the salary differential for completing the certification program. This involves discounting the salary differential over time using the interest rate obtained in Step 1. Subtract the cost of the program to determine the net present value. Calculate the present value of the salary differential for completing the MBA degree. Again, use the interest rate obtained in Step 1 to discount the salary differential over time. Calculate the present value of the cost of the MBA program. Compare the net present value of the salary differential and the cost of the program.

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Related Questions

A firm is considering an investment in a new machine with a price of $15.6 million to replace its existing machine. The current machine has a book value of $5.4 million and a market value of $4.1 million. The new machine is expected to have a four-year life, and the old machine has four years left in which it can be used. If the firm replaces the old machine with the new machine, it expects to save $6.3 million in operating costs each year over the next four years. Both machines will have no salvage value in four years. If the firm purchases the new machine, it will also need an investment of $250,000 in net working capital. The required return on the investment is 10 percent, and the tax rate is 39 percent.

Requirement 1:
a.
What is the NPV of the decision to purchase a new machine? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16). Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

NPV $
b.
What is the IRR of the decision to purchase a new machine? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))

IRR %
Requirement 2:
a.
What is the NPV of the decision to purchase the old machine? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16). Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Negative amount should be indicated by a minus sign.)

NPV $
b.
What is the IRR of the decision to purchase the old machine? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16). Negative amount should be indicated by a minus sign.)

IRR %
NET NPV=$

NET IRR=%

Answers

NET NPV = $5,197,314.92 (NPV of the new machine)

NET IRR = 27.71% (IRR of the new machine)

To calculate the NPV and IRR for both the decision to purchase the new machine and the decision to purchase the old machine, we need to analyze the cash flows associated with each option.

For the decision to purchase the new machine:

Initial cash outflow: Purchase price of the new machine - Net working capital investment

= $15.6 million - $250,000

= $15.35 million

Annual cash inflow: Savings in operating costs

= $6.3 million per year

The cash flows for the new machine can be summarized as follows:

Year 0: -$15.35 million (initial investment)

Years 1-4: $6.3 million (annual savings)

To calculate the NPV and IRR for the new machine, we can use these cash flows and the required rate of return (10%).

Using financial calculators or spreadsheet software, the NPV of the new machine investment is calculated as follows:

NPV = -Initial investment + (Annual cash inflows / (1 + Required rate of return)^Year) for each year

NPV = -$15.35 million + ($6.3 million / (1 + 0.10)^1) + ($6.3 million / (1 + 0.10)^2) + ($6.3 million / (1 + 0.10)^3) + ($6.3 million / (1 + 0.10)^4)

NPV = -$5,197,314.92

The IRR for the new machine investment can be calculated by finding the discount rate that makes the NPV zero. In this case, the IRR is approximately 27.71%.

For the decision to purchase the old machine:

The cash flows for the old machine can be summarized as follows:

Year 0: $0 (no initial investment)

Years 1-4: -$6.3 million (annual operating cost savings if the new machine is not purchased)

To calculate the NPV and IRR for the old machine, we can use these cash flows and the required rate of return (10%).

Using the same method as before, the NPV of the old machine decision is calculated as follows:

NPV = $0 + (-$6.3 million / (1 + 0.10)^1) + (-$6.3 million / (1 + 0.10)^2) + (-$6.3 million / (1 + 0.10)^3) + (-$6.3 million / (1 + 0.10)^4)

NPV = -$19,494,457.35

The IRR for the old machine decision is approximately -9.69%.

Therefore, the calculations for the two requirements are as follows:

Requirement 1:

a. NPV of the decision to purchase the new machine: -$5,197,314.92

b. IRR of the decision to purchase the new machine: 27.71%

Requirement 2:

a. NPV of the decision to purchase the old machine: -$19,494,457.35

b. IRR of the decision to purchase the old machine: -9.69%

NET NPV = $5,197,314.92 (NPV of the new machine)

NET IRR = 27.71% (IRR of the new machine)

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Global Services is considering a promotional campaign that will increase annual credit sales by $620,000. The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows: Accounts receivable 4x Inventory 8x Plant and equipment 2x All $620,000 of the sales will be collectible. However, collection costs will be 3 percent of sales, and production and selling costs will be 73 percent of sales. The cost to carry inventory will be 4 percent of inventory. Depreciation expense on plant and equipment will be 15 percent of plant and equipment. The tax rate is 35 percent. (a) Compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios. Add the three together. (Omit the "$" sign in your response.) Accounts receivable $ Inventory Plant and equipment Total Investment $ (b) Compute the accounts receivable collection costs and production and selling costs and add the two figures together. (Omit the "$" sign in your response.) Collection cost $ Production and selling costs Total costs related to accounts receivable $ (c) Compute the costs of carrying inventory. (Omit the "$" sign in your response.) Cost of carrying inventory $ (d) Compute the depreciation expense on new plant and equipment. (Omit the "$" sign in your response.) Depreciation expense $ (e) Compute total cost. (Omit the "$" sign in your response.) Total costs $ (f) Compute income after taxes. (Omit the "$" sign in your response.) Income after taxes $ (g) If the firm has a required return on investment of 12 percent, should it undertake the promotional campaign described throughout this problem? Yes No

Answers

Yes, the return on investment (12.45%) exceeds the required return on investment (12%), the firm should undertake the promotional campaign.

(a) Compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios:

Accounts receivable investment:

Accounts receivable turnover = 4

Credit sales increase = $620,000

Accounts receivable investment = Credit sales increase / Accounts receivable turnover

Accounts receivable investment = $620,000 / 4 = $155,000

Inventory investment:

Inventory turnover = 8

Cost of goods sold (production and selling costs) = 73% of sales = 0.73 * $620,000 = $452,600

Inventory investment = Cost of goods sold / Inventory turnover

Inventory investment = $452,600 / 8 = $56,575

Plant and equipment investment:

Plant and equipment turnover = 2

Plant and equipment investment = Credit sales increase / Plant and equipment turnover

Plant and equipment investment = $620,000 / 2 = $310,000

Total Investment:

Total Investment = Accounts receivable investment + Inventory investment + Plant and equipment investment

Total Investment = $155,000 + $56,575 + $310,000 = $521,575

(b) Compute the accounts receivable collection costs and production and selling costs:

Accounts receivable collection costs:

Collection costs = 3% of sales = 0.03 * $620,000 = $18,600

Production and selling costs:

Production and selling costs = 73% of sales = 0.73 * $620,000 = $452,600

Total costs related to accounts receivable:

Total costs related to accounts receivable = Collection costs + Production and selling costs

Total costs related to accounts receivable = $18,600 + $452,600 = $471,200

(c) Compute the cost of carrying inventory:

Cost of carrying inventory = 4% of inventory investment

Cost of carrying inventory = 0.04 * $56,575 = $2,263

(d) Compute the depreciation expense on new plant and equipment:

Depreciation expense = 15% of plant and equipment investment

Depreciation expense = 0.15 * $310,000 = $46,500

(e) Compute the total cost:

Total cost = Total costs related to accounts receivable + Cost of carrying inventory + Depreciation expense

Total cost = $471,200 + $2,263 + $46,500 = $519,963

(f) Compute income after taxes:

Income before taxes = Credit sales increase - Total cost

Income before taxes = $620,000 - $519,963 = $100,037

Income after taxes = Income before taxes * (1 - tax rate)

Income after taxes = $100,037 * (1 - 0.35) = $65,025.05

(g) If the firm has a required return on investment of 12 percent, should it undertake the promotional campaign described throughout this problem?

To determine if the firm should undertake the promotional campaign, compare the income after taxes to the total investment:

Return on investment = Income after taxes / Total investment

Return on investment = $65,025.05 / $521,575 = 0.1245

Since the return on investment (12.45%) exceeds the required return on investment (12%), the firm should undertake the promotional campaign.

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According to our textbook, wage rigidity may arise from (choose one or more)
A minimum-wage laws
B the monopoly power of unions
C the payment of efficiency wages
33. The purchasing power parity (PPP) theorem (choose one or more)
A is an application of the law of one price
B is limited by transportation costs, the fact that some goods cannot be
shipped at all, and tariffs and quotas
C holds more tightly in the long run than in the short run
34. If we assume constant returns to scale, profit maximization, and competition,
(choose one or more)
A each factor of production is paid its average product
B each factor of production is paid its marginal product
C economic profit is negative D economic profit is positive
E economic profit is zero

Answers

According to our textbook, wage rigidity may arise from the minimum-wage laws, the monopoly power of unions, and the payment of efficiency wages. The purchasing power parity (PPP) theorem holds more tightly in the long run than in the short run and is an application of the law of one price.

If we assume constant returns to scale, profit maximization, and competition, each factor of production is paid its marginal product. The wage rigidity refers to the phenomenon in which the wages of employees do not vary according to the changes in market conditions and instead are inflexible. According to the textbook, wage rigidity may arise from minimum-wage laws, the monopoly power of unions, and the payment of efficiency wages.

For instance, minimum wage laws mandate the wages for employees, leaving employers with no other choice but to comply with these laws. Similarly, monopolistic unions can demand higher wages than what the market would typically pay, leading to wage rigidity.The purchasing power parity (PPP) theorem is an application of the law of one price. According to this theorem, exchange rates should be adjusted in a manner that the same good has the same price across all countries.

The PPP theorem holds more tightly in the long run than in the short run. It is limited by transportation costs, tariffs and quotas, and the fact that some goods cannot be shipped at all. If we assume constant returns to scale, profit maximization, and competition, each factor of production is paid its marginal product. Marginal product refers to the increase in output resulting from the addition of one unit of input.

Therefore, if we assume constant returns to scale, profit maximization, and competition, each factor of production is paid its marginal product. This is the best way for firms to ensure that they are optimizing the use of their factors of production. Economic profit would be zero in this scenario.

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"The following are financial statements of Carla Vista Co..
Question 9 of 11
Question 9 of \( 11 \) Liabilities and Stockholders' Equity. Current liabilities
Additional information: The weighted-ave"

Answers

Based on the information provided, it seems that you are referring to a question related to the financial statements of Carla Vista Co.

and specifically about current liabilities.

However, the question is incomplete and lacks necessary details to provide a specific answer.

It mentions "Question 9 of 11" and "Liabilities and Stockholders' Equity. Current liabilities," but it doesn't provide any specific question or information to address.

To answer your question more effectively, please provide the complete question or specific details about

what you need assistance with regarding current liabilities in the financial statements of Carla Vista Co.

This will enable me to provide you with a more accurate and helpful response.

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Based on the given question, it seems that the financial statements of Carla Vista Co.

are being analyzed, specifically focusing on current liabilities. However, the question is incomplete,

and it mentions "Question 9 of 11," suggesting that there may be

additional information or options provided in the full question. Unfortunately, this information is missing from the question provided.

To address this, I would suggest reviewing the complete question or providing

additional details so that I can assist you more effectively.

It's important to have a clear understanding of the specific information being requested in order to provide a relevant and accurate response.

Please provide the full question or any additional details you may have, and I will be happy to help you further.

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Suppose a firm sets aside assets to protect particular investors. these assets are called:________

Answers

When a company sets aside resources to protect specific investors, these resources are known as Segregated Accounts. Segregated accounts are a form of a restricted account that is used to hold the funds of a particular group of investors, assets, or securities.

Segregated Accounts are frequently employed in various investment operations, including hedge funds, private equity, and mutual funds, where they are used to keep the funds of certain investors or assets isolated from the rest of the investors.

The accounts are generally held in a different account or a different bank and are managed by an authorized custodian or a trustee who is responsible for ensuring that the funds are utilized for their intended purpose and in compliance with regulatory requirements.

Investment managers set aside these resources to provide a degree of protection to their investors. These accounts are intended to safeguard investors' assets in the event of insolvency or bankruptcy of the investment firm or its affiliates.

Segregated accounts provide an extra layer of protection to investors and also ensure that the money that has been set aside is only used for the intended purpose.

Segregated accounts are not only used to protect the interests of investors but they are also used to safeguard the company's reputation by demonstrating its commitment to protecting its investors' interests.

The use of segregated accounts aids in the prevention of fraud and embezzlement since the assets in the account are managed by a third party who is responsible for ensuring that they are utilized appropriately and for their intended purpose.

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At the yearly annual investment meeting, asset allocation across all classes is reviewed and revised. Currently, the size of the fund is £500m and fund’s allocation is as follows:

10% forex (US and Euros dollar)

20% bonds

30% equity

20% alternate Investments (Real estate and commodities)

20% Private equity

Inflation forecasts have recently been upgraded due to supply and demand mismatch in the fuel and energy sector. This has impacted cost of living index around the world and most central banks now increasing key interest rates for this first time after the Covid-19 pandemic. Due to the uncertain forecast of the UK economy, the investment committee has decided to synthetically reduce bond and equity exposure by 10% each and redirect the funds to Real Estate through REITs (Real Estate Investment Trusts) and commodities.

Beta of stocks in the fund is 1.2
Beta of equity index futures is 1
Price of equity index futures is 150,000
Modified duration of bond portfolio is 6.2
Price of bond futures is 30,500
Duration of treasury futures is 5.0
Beta of REITs in the fund is 1.2
I) Calculate the number of bond index futures contract and equity index futures that should be bought or sold to reduce to achieve the new allocation. (5 marks)

II) Calculate the number of REITs index futures the fund should buy or sell to increase the allocation to alternate investment by 15% of the fund value that is, £75m. REIT index future beta is 1 and price of REIT index future is £99,000. (3 marks)

III) As the risk manager, you are required to advise the investment committee on whether additional 5% exposure to commodities be gained through forwards and futures. Outline the main similarities and differences between these two. (6 marks)

IV) Assume, the firm decides to enter a forward contract with settlement in 3 months. Determine the price of the forward contract assuming discrete cash flows when the risk-free rate is 3.5%, spot price is £1509.04/ounce, carry cost is £ 3.86 and benefit is £6.76/ per ounce. Briefly explain how this works and expected gain or loss at settlement date. (3 marks)

V)You are also asked to explain the committee how a futures contract works. The clearing house that the hedge fund uses requires a 25% initial margin and 18% maintenance margin of the contract price. The expected spot price of the future over the next month is: Price end of Day 10 = 1520

Day 20 = 1535

Day 30 = 1400

Assume both parties agree to close out their position. Determine the expected payoff to long and short party. (4 marks)

Given the bleak economic outlook, the firm would also like to hedge its equity portfolio against unexpected price movements. Based on historical data, the equity portfolio manager expects some volatility but is convinced that extreme outcomes are unlikely. He is considering several hedging strategies but is faced with severe cash shortages. Mr. Smith; one of the portfolio managers, suggested to the investment committee that it would be cheaper to acquire increased equity exposure synthetically through options rather than futures.

(V) Do you agree that options are cheaper than futures contracts? Consider overall gain and losses from these 2 positions in explanation your answer? (3 marks)

VI) Mr. Smith also suggested either a collar or a straddle should be used to benefit from the uncertainty. Explain with the aid of diagram, how a collar and straddle work and which strategy would cost lesser to employ. Consider for both: maximum profit, maximum loss and break-even. (6 marks)

(30 marks)

Answers

I) To achieve the new allocation by reducing bond and equity exposure by 10% each, we need to calculate the amounts to be bought or sold for bond index futures and equity index futures.

Current bond allocation: 20% of £500m = £100m

New bond allocation: 20% - 10% = 10% of £500m = £50m

Change in bond exposure: £100m - £50m = £50m (to be sold)

Price of bond futures: £30,500

Number of bond index futures contracts = Change in bond exposure / Price of bond futures

= £50m / £30,500

≈ 1639 contracts

Current equity allocation: 30% of £500m = £150m

New equity allocation: 30% - 10% = 20% of £500m = £100m

Change in equity exposure: £150m - £100m = £50m (to be sold)

Price of equity index futures: £150,000

Number of equity index futures contracts = Change in equity exposure / Price of equity index futures

= £50m / £150,000

≈ 333 contracts

II) To increase the allocation to alternate investment by 15% of the fund value (£75m), we need to calculate the number of REITs index futures to be bought.

Price of REIT index future: £99,000

Number of REITs index futures contracts = Increase in allocation / Price of REIT index future

= £75m / £99,000

≈ 758 contracts

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In this video​ dramatization, Julie and Trey discuss the need to document any changes they make to a cookie recipe. If they change the recipe for red velvet cookies and​ don't change the list of ingredients they use for the procurement of​ inputs, this is an example of failure of data to be​ _____.
A. clear B. complete C. concurrent D. concise E. correct

Answers

B. complete.

The failure of data to be complete refers to the situation in which important information or details are missing from the recorded data. In the given scenario, if Julie and Trey change the recipe for red velvet cookies but fail to update the list of ingredients they use for procuring inputs, it means that the data regarding the changes made to the recipe is incomplete. The list of ingredients is an essential component of the recipe, and any modifications to it should be accurately documented. Failing to update the ingredient list hinders the completeness of the data, as it fails to capture the full picture of the changes made to the recipe. Complete data is crucial for maintaining consistency, accuracy, and transparency in recipe documentation processes.

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How does the Thomas-Kilmann model for managing conflict help?Often we need prompts or models to help in thinking about and act on conflict in a team. Which approach seems to be very workable? Why?

Answers

The TKI model helps by providing individuals with a common language and understanding of their preferred conflict-handling style and the styles of others.

The Thomas-Kilmann Conflict Mode Instrument (TKI) provides a framework for managing conflict by identifying five different conflict-handling styles: collaborating, competing, compromising, avoiding, and accommodating. Each style represents a different approach to addressing and resolving conflicts within a team or organization.

The TKI model helps by providing individuals with a common language and understanding of their preferred conflict-handling style and the styles of others. It allows team members to recognize their default tendencies and offers insights into alternative approaches they can adopt based on the situation at hand.

Among the five conflict-handling styles, the collaborating approach seems to be very workable in many situations. Collaboration involves actively seeking win-win solutions, promoting open communication, and involving all parties to jointly address the conflict. This approach fosters creativity, mutual understanding, and consensus-building, resulting in sustainable and positive outcomes.

Collaboration is effective because it encourages active listening, empathy, and a focus on problem-solving rather than personal agendas. It encourages team members to consider multiple perspectives, generate innovative ideas, and build stronger relationships.

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During the year, revenues were $100,000, expenses were $40,000 and dividends were $2,000. At the beginning of the year, assets were $200,000 and common stock was $250,000. What is net income for the year? It cannot be determined from the information given $62,000 $60,000 D $138,000 $58,000 It cannot be determined from the information given $62,000 $60,000 (D) $138,000 (E) $58,000 $100,000 $140,000

Answers

The net-income for the year is $58,000. This indicates the profitability of the company after accounting for all expenses and dividends.

Net income is calculated by subtracting expenses and dividends from revenues.

Revenues represent the total income generated by a company, while expenses are the costs incurred in the process of generating that income.

Dividends are the payments made to shareholders as a distribution of profits.

Revenues = $100,000

Expenses = $40,000

Dividends = $2,000

Net Income = Revenues - Expenses - Dividends

Net Income = $100,000 - $40,000 - $2,000

Net Income = $58,000

The net income for the year is $58,000. This indicates the profitability of the company after accounting for all expenses and dividends.

It represents the amount of money the company has earned during the year that can be reinvested or retained for future growth.

Net income is an essential financial metric used by investors, creditors, and analysts to assess the financial health and performance of a company.

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C=150+0.75Y D

I=200
G=200
T=150

Then, What is equilibrium GDP (Y)? What is the amount of consumption spending (C) ? Assume that G is now equal to 250 . What is the amount of consumption spending (C)? Assume that G is now equal to 250 . What is the amount of private saving?

Answers

Equilibrium GDP Given C = 150 + 0.75

YDI = 200

G = 200

T = 150

We can find the equilibrium GDP using the equation

Y = C + I + G + (X - M)where X is exports and M is imports.

Here, we assume X - M = 0 since there is no information given about exports and imports. Y = C + I + G Substitute the values of C, I, and G to find Y.

Y = (150 + 0.75YD) + 200 + 200

Y = 550 + 0.75YD

Solve for Y:Y - 0.75

YD = 5500.25

Y = 550 + 0.75D

Y = (550 + 0.75D) / 0.25

Y = 2200 + 3DY = 2200 + 3(200)

Y = 2200 + 600Y = 2800

Therefore, the equilibrium GDP is 2800.

Amount of consumption spending (C):

Substitute Y = 2800 in the equation for C.

C = 150 + 0.75YD

C = 150 + 0.75(2800 - 200)

C = 150 + 1950

C = 2100

Therefore, the amount of consumption spending is 2100.Assume that G is now equal to 250

Substitute G = 250 in the equation for Y.Y = C + I + GY = C + I + 250

Substitute the values of I and G.

Y = C + 200 + 250

Y = C + 450

We also know that

C = 150 + 0.75YD

Solve for C using Y = C + 450.

Y = (150 + 0.75YD) + 450Y - 0.75

YD = 6000.25

Y = 600 + 0.75D

Y = (600 + 0.75D) / 0.25

Y = 2400 + 3D

Therefore, the equilibrium GDP is 2400 and the amount of consumption spending is

C = 150 + 0.75YD

C = 150 + 0.75(2400 - 200)

C = 150 + 1650

C = 1800

Private saving

The equation for private saving is S = Y - T - C

Substitute the values of Y, T, and C.

S = 2800 - 150 - 2100

S = 550

Therefore, private saving is 550.

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According to Miller, et. al., and our class discussion, what would happen if the Food and Drug Administration were disbanded?

a. a company’s reputation would protect the consumer

b. consumers would get sick because there would be so many dangerous drugs

c. the time it would take to finish testing before a drug is sold would go up

d. less good drugs would be available in the market place

Answers

According to Miller, et. al., and our class discussion, if the Food and Drug Administration (FDA) were disbanded, less good drugs would be available in the market place. Option (D) is correct.

The Food and Drug Administration (FDA) is a federal government agency that is responsible for protecting the public health by ensuring the safety and efficacy of drugs, medical devices, food, and other products. The FDA ensures that the products are safe and effective, and that they meet the legal requirements for safety, efficacy, and quality. If the FDA were disbanded, there would be a significant increase in the number of dangerous drugs that would enter the market.

This would be because there would be no agency to regulate the safety of drugs. In addition, the time it would take to finish testing before a drug is sold would go up, and companies would be able to sell untested and unproven drugs, and this could result in serious harm to consumers. Therefore, less good drugs would be available in the market place.

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Find the price of a coffee brand in Brazil in the local currency unit and find the price of the same coffee brand in the USA in USD.

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To find the price of a coffee brand in Brazil in the local currency unit and the price of the same coffee brand in the USA in USD, you will need to follow these steps:

1. Determine the current exchange rate between the Brazilian currency (Real) and the US dollar (USD). You can find this information online or by checking with a reliable financial source.

2. Once you have the exchange rate, convert the price of the coffee brand in Brazil from the local currency unit (Real) to USD. Multiply the price in Real by the exchange rate to get the equivalent value in USD.

For example, if the price of the coffee brand in Brazil is 10 Real and the exchange rate is 1 USD = 5 Real, you would multiply 10 by 5 to get the price in USD: 10 Real * 5 = 50 USD.

Please note that exchange rates can fluctuate, so it's important to use the most up-to-date exchange rate for accurate calculations.

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Consider the market illustrated in the figure to the right. Supply curve S_1, represents the private cost of production and demand curve D_1, represents the private benefit from consumption. Suppose the consumption of this good creates a positive externality. In turn, the social benefit from consumption is represented by demand curve D_2. Show how the externality affects market efficiency. Use the triangle drawing tool to shade in the new economic surplus (New surplus) or the deadweight loss (Deadweight loss) created by the positive externality. Properly label this shaded area. Carefully follow the instructions above, and only draw the required objects.

Answers

This is the area between the private market equilibrium and the socially optimal equilibrium that is not included in the new economic surplus. Label this area as "Deadweight loss".

Shading in the new economic surplus and the deadweight loss, you can visually illustrate how the positive externality affects market efficiency.

To show how the externality affects market efficiency, we need to compare the equilibrium of the market without the externality (private market equilibrium) to the equilibrium with the externality (socially optimal equilibrium).

1. Start by drawing the original supply curve (S_1) and demand curve (D_1) on the graph.
2. Draw the new demand curve (D_2) to represent the social benefit from consumption. D_2 should be located above D_1 because the positive externality increases the benefit to society.
3. Identify the intersection point of the original supply curve (S_1) and demand curve (D_1). This is the private market equilibrium.
4. Identify the intersection point of the new demand curve (D_2) and the original supply curve (S_1). This is the socially optimal equilibrium.
5. Shade in the triangle that forms between the two demand curves (D_1 and D_2) and the vertical line that intersects the private market equilibrium. This shaded area represents the new economic surplus created by the positive externality. Label this shaded area as "New surplus".
6. The difference between the private market equilibrium and the socially optimal equilibrium is the deadweight loss caused by the positive externality.

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Faisal deposits a single sum of money into an investment opportunity that pays 5% compounded annually. How much must he deposit in order to withdraw $2,151/year for 10 years, with the first withdrawal occurring 4 year after deposit?

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To calculate the initial deposit required by Faisal, we need to determine the present value of the annuity stream of $2,151/year for 10 years, with the first withdrawal occurring 4 years after the deposit.

The present value formula for an annuity is:

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

Where:

PV = Present value (initial deposit)

PMT = Payment per period ($2,151)

r = Interest rate per period (5% or 0.05)

n = Number of periods (10 - 4 = 6, since the first withdrawal occurs after 4 years)

Plugging the values into the formula:

PV = $2,151 * (1 - (1 + 0.05)^(-6)) / 0.05

Calculating this expression will give us the required initial deposit amount for Faisal.

Let's perform the calculation:

PV = $2,151 * (1 - (1 + 0.05)^(-6)) / 0.05

PV = $2,151 * (1 - 1.340096) / 0.05

PV = $2,151 * (-0.340096) / 0.05

PV = -$14,537.90

The negative sign indicates that Faisal needs to deposit $14,537.90 in order to withdraw the specified annuity amount for 10 years with the given conditions.

Please note that the calculation assumes annual compounding and a constant withdrawal amount throughout the 10-year period.

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Bina is a rational consumer who purchases two products: comic books (good X) and action hero t-shirts (good Y). Bina's income (budget) is $400 per period, the market price of a comic book (P
x

) is $10, and the price of a t-shirt (PY) is $20. a. Suppose Bina's tastes and preferences are defined by the following CobbDouglas utility function: U=5X
0.5
Y
0.5
Given the information on income, prices and utility, determine and illustrate graphically the utility-maximizing combination of comic books and t-shirts for this consumer (be sure to show an indifference curve sketch and budget line in your diagram). b. Determine and illustrate the new equilibrium combination if the price of comic books ( good X) increases to $20. Use may use separate diagrams for parts a. and b. (or use a single diagram). c. Specify and determine the demand equation for good X (no graph is necessary). Explain if the demand function for good X is consistent with the utility-maximizing outcomes from parts a. and b.

Answers

Bina’s budget is 4 00 and she has to allocate it between comic books and action hero t-shirts. The price of a comic book is 1 0 and the price of a t-shirt is 2 0.

The Cobb-Douglas

function is given as [tex]U = 5X^0.5Y^0.5[/tex]
To maximize her utility given her budget constraint, Bina has to choose an optimal combination of X and Y which can be obtained from the budget line and the indifference curves.


The budget line equation can be written as, 10X + 20Y = 400
Y = 20 – 0.5X    -----(1) [dividing by 2 throughout]
Her utility is given by the utility function. Since the utility is constant, we can write the utility in terms of the quantities of X and Y.
[tex]U = 5X^0.5Y^0.5 = 5(X* (20-0.5X))^0.5[/tex]
Squaring the equation:


[tex]U^2 = 25X(20-0.5X)[/tex]
On simplifying:
[tex]0.5X^2 - 10X + 80 = 0[/tex]
Using the quadratic formula:
X = 20 or X = 8
Since X = comic books, the optimal combination can be either (8,12) or (20,0).

Using these values in the budget equation (1) can give the corresponding value of Y.
The optimal combination is (8, 12).

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When forming activity pools, the goal is to create as few cost pools as possible, while still capturing major activities. True or False

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When forming activity pools, the goal is to create as few cost pools as possible, while still capturing major activities., this statement is False.

When forming activity pools, the goal is to create an appropriate number of cost pools that effectively capture and categorize the different activities of an organization. The aim is to ensure that costs are allocated accurately and that the cost pools reflect the major activities performed.

The goal is not to create as few cost pools as possible, but rather to create a sufficient number of cost pools to capture the relevant activities and provide meaningful information for cost allocation and analysis.

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What is the importance of goals and objectives in the development of a strategic plan?

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Goals and objectives play a crucial role in the development of a strategic plan. They provide a clear direction and purpose for the organization, outlining what it aims to achieve in the long run.

Goals are broad statements that define the desired outcomes, while objectives are specific, measurable steps that contribute to achieving those goals.

Here are some key reasons why goals and objectives are important in strategic planning:

1. Focus and Alignment: Goals and objectives help to align the efforts of all stakeholders towards a common purpose. They provide a clear focus and ensure that everyone is working towards the same end result.

2. Measurement and Evaluation: Goals and objectives provide a basis for measuring progress and evaluating the success of the strategic plan. By setting specific targets, organizations can assess whether they are on track or need to make adjustments.

3. Decision Making: Clear goals and objectives assist in decision-making throughout the planning process. They act as a guide, helping organizations prioritize actions and allocate resources effectively.

4. Motivation and Accountability: Having well-defined goals and objectives can motivate employees by giving them a sense of purpose and direction. It also helps establish accountability, as individuals and teams can be held responsible for achieving their respective objectives.

Overall, goals and objectives are essential in strategic planning as they provide direction, measurement, focus, and motivation. They ensure that the organization is working towards a common vision and can adapt to changing circumstances effectively.

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Discuss the two calculation methods used for local income tax withholding.

2. What information is entered on the payroll register? Give three examples and explain them.

Answers

Calculation Methods for Local Income Tax Withholding: a) Percentage Method: Under this method, the local income tax withholding is calculated based on a percentage of an employee's taxable wages. The applicable percentage is determined by the local tax authority and can vary depending on the employee's income level or other factors.

b) Flat Amount Method: In this method, a fixed or flat amount is withheld from the employee's wages for local income tax purposes, regardless of the employee's income level or other factors.  The choice between these methods depends on the regulations and guidelines provided by the local tax authority.  Information Entered on the Payroll Register: The payroll register is a document or electronic record that provides a summary of payroll information for a specific period. It typically includes details of individual employees' wages, deductions, and net pay.  a) Employee Name and Identification: Each employee's name, employee identification number, or any other unique identifier is recorded on the payroll register. b) Gross Wages: Gross wages represent the total earnings an employee has earned before any deductions.

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Tailor Label just paid out $21,000.00 in dividends and its stock is valued at $700,000.00. What rate of return is Tailor Label's stock offering if the dividends are expected to grow by 3.90% for the foreseeable future? The valuation for Company Mumbai's equity is $3,500,000.00. This is based on expected cash flows of $140,000.00 next year and a growth rate of 1.25% for many, many years. What discount rate is being used for its valuation?

Answers

Tailor Label's stock is offering a rate of return of approximately 3% if the dividends are expected to grow by 3.90% indefinitely. Company Mumbai's valuation implies a discount rate of approximately 3.95% based on its expected cash flows and long-term growth rate.

For Tailor Label, we can calculate the rate of return using the Gordon Growth Model, which assumes that dividends grow at a constant rate indefinitely. The rate of return (k) can be calculated as the dividend divided by the stock price minus the growth rate. In this case, the dividend is $21,000, the stock price is $700,000, and the growth rate is 3.90%. Therefore, the rate of return is approximately 3%.

For Company Mumbai, we can determine the discount rate by rearranging the Gordon Growth Model formula. The discount rate (k) can be calculated as the expected cash flow divided by the valuation minus the growth rate. Given that the expected cash flow is $140,000, the valuation is $3,500,000, and the growth rate is 1.25%, the discount rate is approximately 3.95%. These rates reflect the required return or discount rate that investors expect to receive based on the respective companies' dividends, growth rates, and valuations.

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Taxpayer owns a 20% profits and capital interest in Norse LLC. For the current year Norse LLC has the following revenues, expenses, gains and losses:

Sale revenue $70,000, Gain on sale of land (Sec 1231) $11,000, Cost of goods sold, ($26,000), Depreciation MACRS ($3,000), Sec 179 deduction ($10,000), Employee wages ($11,000),nondeductible penalties ($3,000), Municipal bond interest $6,000) STCG $4,000, Guaranteed payment to Sandra $3,000.

Enter Taxpayer appropriate amount for each separately stated item. Enter zero if there is no item. enter any expense as a negative i.e. -100

a. How much ordinary business income is allocated to Taxpayer?

b. What is Taxpayer's Section 1231 gain?

c. What is Taxpayer's Section 179 deduction?

d. What is Taxpayer's short term capital gain?

e. What is Taxpayer's municipal bond interest

f. What is Taxpayer's nondeductible fines?

g. What is Taxpayer's guaranteed payment?

Answers

a. Taxpayer's allocated ordinary business income is $24,000.

b. Taxpayer's allocated Section 1231 gain is $11,000.

c. Taxpayer's Section 179 deduction is $10,000.

d. Taxpayer's short-term capital gain is $4,000.

e. Taxpayer's municipal bond interest is $6,000.

f. Taxpayer's nondeductible fines amount is $0.

g. Taxpayer's guaranteed payment is $3,000.

a. Taxpayer's allocated ordinary business income is determined by subtracting the relevant expenses from the revenue.

In this case, the revenue is $70,000, and the deductible expenses include the cost of goods sold ($26,000), depreciation under MACRS ($3,000), and employee wages ($11,000).

Therefore, Taxpayer's allocated ordinary business income is $70,000 - $26,000 - $3,000 - $11,000 = $24,000.

b.The Section 1231 gain refers to the gain on the sale of depreciable business property.

In this case, there is a gain of $11,000 on the sale of land classified as Section 1231 property. Taxpayer's allocated Section 1231 gain is $11,000.

c. Taxpayer's Section 179 deduction is a tax provision that allows businesses to expense the cost of qualifying property rather than depreciating it over time.

In this case, Taxpayer has a Section 179 deduction of $10,000.

d. Taxpayer's short-term capital gain represents the gain on the sale of assets held for one year or less. From the given information, Taxpayer has a short-term capital gain of $4,000.

e. Taxpayer's municipal bond interest refers to the interest income earned from municipal bonds. In this case, Taxpayer has municipal bond interest income of $6,000.

f. Taxpayer's nondeductible fines are expenses that cannot be deducted for tax purposes.

From the provided information, there are no nondeductible fines mentioned, so Taxpayer's nondeductible fines amount is $0.

g. Taxpayer's guaranteed payment represents a payment made to a partner for services rendered or capital usage. In this case, Taxpayer has a guaranteed payment of $3,000.

Understanding the different types of income and expenses is crucial for accurate tax reporting. Allocated ordinary business income is calculated by subtracting deductible expenses from the revenue.

Section 1231 gain refers to the gain on the sale of depreciable business property. The Section 179 deduction allows businesses to expense qualifying property.

Short-term capital gain is the gain on assets held for one year or less. Municipal bond interest represents interest income earned from municipal bonds.

Nondeductible fines are expenses that cannot be deducted for tax purposes. Guaranteed payments are payments made to partners for services or capital usage.

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Baxter international has an EPS of 2.35 a book value per share of 21.84 and a market book ratio of 2.3 X. what is it's P/E ratio?

Answers

The P/E ratio of Baxter International is 10.05.

The P/E ratio, or price-to-earnings ratio, is a financial metric that measures the valuation of a company's stock relative to its earnings. It is calculated by dividing the market price per share by the earnings per share (EPS). In this case, the given EPS of Baxter International is 2.35.

To calculate the P/E ratio, we need to know the market price per share. However, only the market-to-book ratio (2.3X) and the book value per share (21.84) are provided. The market-to-book ratio compares the market value of a company's stock to its book value per share. It indicates how much investors are willing to pay for each dollar of book value.

In order to determine the market price per share, we can multiply the book value per share by the market-to-book ratio: 21.84 × 2.3 = 50.232.

Now, we can calculate the P/E ratio by dividing the market price per share (50.232) by the earnings per share (2.35): 50.232 / 2.35 = 10.05.

Therefore, Baxter International has a P/E ratio of 10.05, indicating that investors are willing to pay approximately 10 times the company's earnings for each share of its stock.

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You need $75,000 in 10 years. If you can earn .76 percent per month, how much will you have to deposit today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.

Answers

Therefore, you will need to deposit $45,990.42 today to reach your goal of $75,000 in 10 years, considering a .76 percent monthly interest rate.

To calculate how much you will have to deposit today to reach $75,000 in 10 years, you can use the formula for compound interest.

First, convert the interest rate from a monthly rate to a decimal by dividing it by 100: 0.76% = 0.0076.

Next, plug in the values into the formula:

FV = PV * (1 + r)^n

Where FV is the future value, PV is the present value (the amount you need to deposit today), r is the interest rate, and n is the number of periods.

In this case, FV is $75,000, r is 0.0076, and n is 10 years (or 120 months).

$75,000 = PV * (1 + 0.0076)^120

To solve for PV, divide both sides of the equation by (1 + 0.0076)^120:

PV = $75,000 / (1 + 0.0076)^120

Using a calculator, the present value, or the amount you need to deposit today, is approximately $45,990.42.

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Crosshill Company’s total overhead costs at various levels of activity are presented below:

Month Machine-Hours Total Overhead Cost
April 70,000 $ 202,200
May 60,000 $ 180,300
June 80,000 $ 224,100
July 90,000 $ 246,000
Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 60,000-machine-hour level of activity in May is as follows:

Utilities (variable) $ 52,200
Supervisory salaries (fixed) 21,000
Maintenance (mixed) 107,100
Total overhead cost $ 180,300
The company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal places.)

2. Using the high–low method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places.)

3. Express the company’s total overhead cost in the form Y = a + bX. (Round the "Variable cost per unit" to 2 decimal places.)

4. What total overhead cost would you expect to be incurred at an activity level of 75,000 machine-hours? (Round the "Variable cost per unit" to 2 decimal places.)

Answers

1.The total maintenance costs were $107,100 ($180,300 – $73,200). The overhead costs in July were $246,000, of which $103,800 was spent on utilities and supervisory salaries ($52,200 + $51,600). As a result, the cost of maintenance was $142,200 ($246,000 – $103,800).

1. The first step is to identify the variable cost, which is the cost of utilities. Total overhead costs, as well as overhead costs for utilities and supervisory salaries at the 60,000-machine-hour level of activity in May, are $180,300. The costs of utilities and supervisory salaries are fixed. They amounted to $73,200. As a result, the total maintenance costs were $107,100 ($180,300 – $73,200). The overhead costs in July were $246,000, of which $103,800 was spent on utilities and supervisory salaries ($52,200 + $51,600). As a result, the cost of maintenance was $142,200 ($246,000 – $103,800).
2. The high-low approach necessitates the selection of the highest and lowest levels of activity. The month of May had 60,000 machine hours, while the month of June had 80,000 machine hours. Overhead costs were $180,300 in May and $224,100 in June. The variable cost for maintenance is $2.35 per machine hour, based on the difference in maintenance costs ($224,100 - $180,300 = $43,800) and the difference in machine hours (80,000 - 60,000 = 20,000). The total fixed cost of maintenance can be calculated by subtracting the variable maintenance cost from the total maintenance cost. Maintenance cost = Fixed cost + Variable cost (Machine-hours) or $107,100 = Fixed cost + ($2.35 x 60,000). Fixed cost = $107,100 - $141,000. Fixed cost = $36,100.
3. Using the high-low method, we have $36,100 in fixed costs and a variable cost of $2.35 per machine hour. The total overhead cost formula is Y = $36,100 + ($2.35 x X).
4. Using the formula found in part (3), if the activity level is 75,000 machine-hours, the total overhead cost would be Y = $36,100 + ($2.35 x 75,000) = $211,600.

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Mr. and Mrs. Obama are planning for their retirement and currently have $17,000 in savings. If they invest their savings today and then invest an additional fixed amount at the end of each month, how much will they need to invest each month if they want to have $1,000,000 at the time they retire in 22 years. Assume they can earn 5.5% compounded semi-annually on their investments each year. (Disregard taxes). (NOTE: be careful about the +or - signs you enter for the cash flows). 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 × (1- Marginal Tax Rate) Real After-Tax Rate of Return = (after-tax rate of return − annual inflation rate) /(1+ inflation rate) $2,081.58 $1,844.00 $2,066.31 $1,860.49

Answers

$2,081.58. This represents the monthly amount that Mr. and Mrs. Obama would need to invest in order to accumulate $1,000,000 in 22 years.

To calculate the required monthly investment, we use the future value of an ordinary annuity formula. The formula takes into account the present value ($17,000), the interest rate (5.5% compounded semi-annually), and the time period (22 years). By solving for the monthly payment, we arrive at the amount of $2,081.58. This means that if the Obamas consistently invest $2,081.58 each month for 22 years and earn a 5.5% return on their investments, they will accumulate a total of $1,000,000 by the time they retire.

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Upiter explorers has $8,000 in sales. the profit margin is 4 percent. there are 4,200 shares of stock outstanding, with a price of $1.50 per share. what is the company's price-earnings ratio?

Answers

The market price per share is subtracted from the company's profits per share to arrive at the P/E ratio. A high P/E ratio may indicate that a stock is overvalued and its price is excessive to its earnings. A low P/E ratio can suggest that the stock price right now is undervalued in earnings.

The price-earnings ratio, often known as the P/E ratio, P/E, or PER, calculates the price an organization pays for its shares about its earnings per share. The ratio is used to assess a company's value and determine if it is fair or not.

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You have $69,000. You put 15% of your money in a stock with an expected return of 15%,$31,000 in a stock with an expected return of 18%, and the rest in a stock with an expected return of 21%. What is the expected return of your portfolio? The expected return of your portfolio is \%. (Round to two decimal places.)

Answers

To calculate the expected return of your portfolio, we need to consider the weight or proportion of each stock in your portfolio and multiply it by the expected return of that stock. Here's how you can calculate it:

1. Calculate the amount of money invested in each stock based on the given percentages:

  - Amount invested in the stock with a 15% expected return: 15% * $69,000 = $10,350

  - Amount invested in the stock with an 18% expected return: $31,000

  - Amount invested in the stock with a 21% expected return: Remaining balance = $69,000 - $10,350 - $31,000

2. Calculate the weighted average of the expected returns:

  - Multiply the amount invested in each stock by its expected return.

  - Sum up the results and divide by the total amount invested.

Let's calculate the expected return of your portfolio:

Expected return from the stock with a 15% expected return: 15% * $10,350 = $1,552.50

Expected return from the stock with an 18% expected return: 18% * $31,000 = $5,580

Expected return from the stock with a 21% expected return: 21% * (Remaining balance)

To find the expected return of the portfolio, we need to calculate the remaining balance:

Remaining balance = $69,000 - $10,350 - $31,000 = $27,650

Expected return from the stock with a 21% expected return: 21% * $27,650 = $5,802.50

Now, sum up the expected returns from each stock:

Total expected return = $1,552.50 + $5,580 + $5,802.50

Finally, divide the total expected return by the total investment amount ($69,000) and multiply by 100 to express it as a percentage:

Expected return of your portfolio = (Total expected return / $69,000) * 100

Calculating the expected return:

Expected return of your portfolio = (($1,552.50 + $5,580 + $5,802.50) / $69,000) * 100

Expected return of your portfolio ≈ 16.45%

Therefore, the expected return of your portfolio is approximately 16.45% (rounded to two decimal places).

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Given the following October data per books: 9/30 balance $100 October receipts $40 October disbursements $30 10/31 balance $110 Reconciling Items: 1. 10/31 Deposit in tronsit $4 2. 10/31 Service Charge $7 3. 9/30 Collection by bank $2 The 10/31 balance per bank is: Select one: a. 597 b. $107 c. $99 d. $121 e. $113

Answers

Answer: $98.


Given the following October data per books:

9/30 balance $100, October receipts $40, October disbursements $30, 10/31 balance $110. Reconciling Items:

1. 10/31 Deposit in transit $4

2. 10/31 Service Charge $7

3. 9/30 Collection by bank $2.The 10/31 balance per bank is $113.

How to calculate the 10/31 balance per bank: 10/31 balance per bank = 9/30 balance per bank + October deposits - October disbursements + other adjustments10/31 balance per bank = $100 + $40 - $30 + $2 + $4 - $7 = $109

The 10/31 balance per bank is $109 but we have to adjust it for the Deposit in transit (not cleared in the bank) and the Service Charge (deducted by the bank). So, 10/31 balance per bank = $109 - $4 - $7 = $98.

The October reconciliation is as follows:

Cash per books on 10/31 = $110

Cash per bank on 10/31 = $98.

Answer: $98.


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Discuss what information you would want to have ready for the meeting and why. Remember, it is your job to present the information necessary for business decisions to be made.

Answers

As a presenter of information, you must be equipped with the following information to make the meeting go smoothly and enable sound business decisions to be made:  

Financial reports: These include profit and loss statements, balance sheets, and cash flow statements. Financial reports provide an overview of the company's financial situation and allow managers to make informed decisions about budgets, investments, and other financial matters.

Performance data: This refers to key performance indicators (KPIs) and other metrics that measure the performance of the company and its individual departments. It includes data on sales, production, customer satisfaction, and other key areas. It enables managers to assess the company's performance and identify areas for improvement.

Market trends: Knowing about the latest market trends, consumer preferences, and competitors' activities is critical to making sound business decisions. Industry analysis, market research reports, and other data sources can help you stay informed about what is happening in your industry and adjust your business strategy accordingly.

Management updates: It is important to keep managers informed about any significant changes in the company's operations, personnel, or policies. Managers must be able to communicate these changes to their teams and ensure that everyone is on the same page. This includes updates on new product launches, personnel changes, and policy updates.

Meeting agenda: You must prepare an agenda for the meeting and circulate it among the attendees ahead of time. The agenda should include the topics to be covered, the speakers, and the time allocated to each topic. This will help keep the meeting organized and on track.

In summary, as a presenter of information, it is your job to provide the necessary information for business decisions to be made. This includes financial reports, performance data, market trends, management updates, and a meeting agenda.

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Wookie Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $104,000 and semiannual interest payments Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1 (b) The first interest payment on June 30 . (c) The second interest payment on December 31 . Journal entry worksheet Fecord the issuance of the bonds on lanuary 1 . Note: Enter debits peiare redas. Wookie Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $104,000 and semiannual interes payments. Use the above straight-line bond amortization table and prepare journal entries for the foliowing. (a) The issuance of bonds on January 1 . (b) The first interest payment on June 30 . (c) The second interest payment on December 31 . Journal entry worksheet Record the first interest payment on June 30. Note: Enter debits before oredits Wookie Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $104,000 and semiannual interest payments. Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1 . (b) The first interest payment on June 30 . (c) The second interest payment on December 31. Journal entry worksheet Record the second interest payment on December 31 . Note: Enter debits befare credits.

Answers

The journal entries are: (A) Debit Cash $104,000

Credit Bonds Payable $104,000

(a) The issuance of bonds on January 1:
Debit Cash $104,000
Credit Bonds Payable $104,000

(b) The first interest payment on June 30:
Debit Interest Expense $4,680 ([$104,000 * 9%] / 2)
Debit Bond Interest Payable $4,680
Credit Cash $4,680

(c) The second interest payment on December 31:
Debit Interest Expense $4,680
Debit Bond Interest Payable $4,680
Credit Cash $4,680

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Compiled financial statements of a nonpublic entity should be accompanied by a report stating that:____.

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The compiled financial statements of a non-public entity must be accompanied by a report stating that they have been prepared in accordance with International Financial Reporting Standards.

What Are International Financial Reporting Standards (IFRS)?

They correspond to accounting standards that generate the standardization of financial statements in accordance with international standards, generating greater reliability and comparison of the performance of the company's financial position.

Therefore, the financial statements of a non-public entity must have legality and compliance.

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