The effective annual return Friendly’s earns on this lending business is approximately 40.11%. If you were to ask Friendly’s about the APR, they would say you are paying approximately 2085.72%.
To calculate the effective annual return, we need to find the annual percentage yield (APY). The APY formula is:
APY = (1 + interest rate / number of periods) ^ number of periods - 1
In this case, the interest rate is the difference between the repayment amount and the borrowed amount, which is $8.15 - $6.00 = $2.15. The number of periods is 52 (assuming there are 52 weeks in a year).
Using the formula, we can calculate the APY:
APY = (1 + 2.15 / 6.00) ^ 52 - 1
APY = (1 + 0.3583) ^ 52 - 1
APY = 1.3583 ^ 52 - 1
APY ≈ 40.11
To find the APR, we can use the formula:
APR = APY * number of periods
APR = 40.11 * 52
APR ≈ 2085.72
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(Ratio analysis) The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows: Balance Sheet ($000) Cash $500 Accounts receivable 2,000 Inventories 1,000 Current assets $3,500 Net fixed assets 4,500 Total assets $8,000 Accounts payable $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners’ equity 4,000 Total liabilities and owners’ equity $8,000 Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit 4,700 Operating expenses (includes $500 depreciation) (3,000) Operating profits $1,700 Interest expense (367) Earnings before taxes $1,333 Income taxes (40%) (533) Net income $800 Calculate the following ratios: Current ratio Operating return on assets Times interest earned Debt ratio Inventory turnover Average collection period Total asset turnover Fixed-asset turnover Operating profit margin Return on equity
Certainly! Here are the calculated ratios for the J. P. Robard Mfg. Company:
Current Ratio: 1.75 Operating Return on Assets: 21.25% Times Interest Earned: 3.63 Debt Ratio: 50%.
Current Ratio: The current ratio measures the company's ability to cover its short-term obligations with its short-term assets. A current ratio of 1.75 indicates that the company has $1.75 of current assets for every $1 of current liabilities, suggesting a relatively healthy liquidity position. Operating Return on Assets: This ratio shows the company's profitability in relation to its total assets. With an operating return on assets of 21.25%, it indicates that for every dollar of assets, the company generated a return of 21.25 cents through its operations.
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Which of the following statements correctly describe the influence of different factors on bond or bill values?
Group of answer choices
None of the other statements correctly describe the influence of different factors on bond or bill prices.
Holding other factors constant, a bond with a lower coupon rate will have a higher value.
Holding other factors constant, a bond with a lower yield to maturity will have a lower value.
Holding other factors constant, a treasury bill with a longer term to maturity will have a higher value.
following statements correctly describe the influence of different factors on bond or bill values:
Holding other factors constant, a bond with a lower yield to maturity will have a lower value.
Explanation:
Among the given statements, the correct one describing the influence of different factors on bond or bill values is: "Holding other factors constant, a bond with a lower yield to maturity will have a lower value."
When all other factors are the same, a lower yield to maturity implies that the bond's interest payments are lower, making it less attractive to investors, resulting in a lower value. The other statements are incorrect.
A bond with a lower coupon rate actually has a lower value because it offers lower interest payments. The value of a treasury bill with a longer term to maturity is lower, not higher, as it takes longer for the investor to receive their principal back.
In conclusion, only the statement about the influence of a lower yield to maturity on bond value is correct.
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affiliate broker bill is assisting his buyer client with an offer to purchase a large estate complete with a 10-bedroom, 12-bath mansion, tennis courts, two swimming pools, and 20 acres of forested land. what’s the appropriate tar form for bill to use?
The appropriate TAR form for Bill, the affiliate broker, to use when assisting his buyer client with an offer to purchase a large estate is determined based on the location where the transaction is taking place and the guidelines set by the real estate regulatory body.
The specific form to be used may vary depending on the state or region where the real estate transaction is taking place. In the United States, the most commonly used form for real estate transactions is the Residential Purchase Agreement or Contract. However, the exact name and format of the form may differ from state to state.
Bill, as an affiliate broker, should consult the regulations and requirements of his state's real estate licensing authority or association to determine the appropriate TAR (Transaction Forms) form to use. TAR forms are often specific to a particular state or association and are designed to facilitate real estate transactions and ensure that all necessary information is included in the offer to purchase.
By using the appropriate TAR form, Bill can ensure that all relevant details of the offer are properly documented and legally binding, protecting both the buyer and the seller throughout the transaction process.
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Typically, there are four stages associated in __________ decision making.
After you have identified the problem or opportunity and diagnosed its causes, you need to come up with __________ solutions.
Bounded rationality, the concept suggests that the _________ of decision makers to be rational is limited by numerous constraints.
The ___________ model means that managers seek alternatives until they find one that is satisfactory, not optimal.
Intuition based on feelings is known as __________ experience.
Sadly, it seems that some organizations prefer ___________ over ethics.
The ________ bias is the tendancy of decision makers to be influenced by the way a situation or problem is presented to them..
To reduce the __________ of commitment, researchers recommend that decision makers set minimum targets for performance and then compare their performance results with their targets.
Janis believes that it is easier to prevent _________ than to cure it.
Typically, there are four stages associated in rational decision making. After you have identified the problem or opportunity and diagnosed its causes, you need to come up with alternative solutions. Bounded rationality, the concept suggests that the ability of decision-makers to be rational is limited by numerous constraints.
The satisficing model means that managers seek alternatives until they find one that is satisfactory, not optimal. Intuition based on feelings is known as affective experience.
Sadly, it seems that some organizations prefer profits over ethics.
The framing bias is the tendency of decision-makers to be influenced by the way a situation or problem is presented to them.
To reduce the escalation of commitment, researchers recommend that decision-makers set minimum targets for performance and then compare their performance results with their targets.
Janis believes that it is easier to prevent groupthink than to cure it.
Rational decision-making involves a multi-step approach to making choices that are logically consistent and in line with your best interests.
It involves a systematic process of defining problems, evaluating alternatives, and selecting the best course of action. Rational decision-making models are usually described as a series of sequential steps that include the following:
Define the problem Gather information Develop criteria Generate alternatives Select the best alternative.
Take action Evaluate and modify the solution accordingly.
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Zomato was listed on 23 July 2021 on NSE at 126 INR which has toppled 46 INR on 30 July 2022. There has been a consistent decline in the revenue of Zomato and increase in losses. The customers have raised concerns on poor quality of delivery and extra prices charged by Zomato. The manager is interested in identifying issues related to customer and other stakeholders for decline in the trust in brand. a. Develop a questionnaire to survey the consumer and collect their response on what factors might be responsible for decline in consumers satisfaction?
b. Identify some interview questions that you would use for deriving qualitative responses? Who will be ideal respondent for the interview?
Zomato is an online food delivery and restaurant discovery platform. It operates as a mobile app and website, allowing users to search for restaurants, browse menus, place food orders for delivery, and make table reservations. Zomato provides a platform for users to explore various cuisines, read and write reviews, and discover new dining experiences.
a. Questionnaire to survey consumers on factors responsible for decline in satisfaction:
1.How frequently do you use Zomato for food delivery?
2.Have you noticed any decline in the quality of food delivery from Zomato?
3.Have you experienced any issues with late deliveries or order accuracy?
4.Are you satisfied with the pricing structure of Zomato? Have you noticed any extra charges?
5.Have you encountered any customer service issues or difficulties in resolving complaints with Zomato?
6.How would you rate the overall experience of using Zomato in terms of convenience and user-friendliness?
7.Have you observed any changes in the variety and availability of restaurants or cuisines on the platform?
8.Has the decline in Zomato's revenue and increase in losses influenced your trust in the brand?
9.Are there any specific competitors or alternative platforms that you have switched to or considered due to concerns with Zomato?
10.What improvements or changes would you suggest to enhance your satisfaction with Zomato's services?
b. Interview questions for qualitative responses:
1.Can you please describe your recent experience with Zomato's food delivery service?
2.How did you perceive the decline in the quality of delivery and increase in losses of Zomato?
3.Can you share any specific incidents or examples related to poor delivery quality or extra charges by Zomato?
4.How has the decline in trust in the Zomato brand affected your decision-making when it comes to ordering food?
5.What factors, in your opinion, have contributed to the customers' concerns regarding delivery quality and pricing?
6.How do you think Zomato could address the issues raised by customers and regain their trust?
7.Can you suggest any specific strategies or improvements that Zomato should consider to enhance customer satisfaction and rebuild their brand reputation?
The ideal respondents for the interviews would be Zomato customers who have recently used the platform for food delivery and have experienced concerns or issues related to delivery quality, extra charges, or overall satisfaction. It would be beneficial to interview a diverse range of customers to gather different perspectives and insights.
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1)Describe the functions performed by Federal Reserve Banks
2)Define the discount rate and the discount window
4) What are the primary responsibilities of the Federal Reserve Board?
11) Explain how a decrease in the discount rate affects credit availability and the money supply
14) Which of the monetary tools available to the federal reserve is most often used? Federal policies regarding the exchange value of the dollar.
1) Federal Reserve Banks perform various functions, including conducting monetary policy, supervising and regulating financial institutions, providing financial services to depository institutions, maintaining stability in the financial system, and issuing and distributing currency.
2) The discount rate is the interest rate at which eligible depository institutions can borrow funds directly from the Federal Reserve Banks.
The discount window refers to the facility through which these loans are made available to banks during times of liquidity needs.
4) The primary responsibilities of the Federal Reserve Board include formulating and implementing monetary policy, supervising and regulating financial institutions, maintaining the stability of the financial system, and promoting consumer protection and community development.
11) A decrease in the discount rate reduces the cost of borrowing for depository institutions. This stimulates credit availability as it encourages banks to borrow from the Federal Reserve at a lower interest rate, which can lead to increased lending to business and individuals. Additionally, a decrease in the discount rate can increase the money supply as it provides banks with additional reserves, potentially leading to more funds available for lending and economic activity.
14) The most often used monetary tool available to the Federal Reserve is open market operations (OMO), which involves buying or selling government securities to influence the money supply and interest rates. This tool allows the Federal Reserve to inject or withdraw liquidity from the banking system, thereby influencing borrowing costs and overall economic conditions. Federal policies regarding the exchange value of the dollar are typically managed by other entities, such as the U.S. Department of the Treasury.
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