a. To find the price of the coupon bond, calculate the present value of each cash flow using the corresponding forward rates and sum them up.
b. The yield to maturity (YTM) of the coupon bond is the rate that makes the present value of the bond's cash flows equal to its market price.
c. According to the expectations hypothesis, the expected realized compound yield of the coupon bond is the average of the forward rates.
d. If the forecasted yield curve in 1 year is 7.0%, the expected rate of return on the coupon bond for the 1-year holding period would be the coupon payment divided by the bond price.
a. To calculate the price of the coupon bond, we need to calculate the present value of its future cash flows, which include both coupon payments and the final principal payment.
The bond has a par value of $1,000 and makes annual payments of $40 for 3 years. We need to discount these cash flows using the corresponding forward rates. The present value of each cash flow can be calculated as follows:
Year 1: $40 / (1 + 4%)^1
Year 2: $40 / (1 + 5%)^2
Year 3: $1,040 / (1 + 7%)^3 (coupon payment + principal payment)
b. The yield to maturity (YTM) of the coupon bond is the rate that equates the present value of the bond's cash flows to its market price. Since we know the price of the coupon bond from part (a), we can use an iterative process to find the YTM. By adjusting the discount rate, we can find the rate that makes the present value of the bond's cash flows equal to its price.
c. Under the expectations hypothesis, the expected realized compound yield of the coupon bond is equal to the average of the forward rates. In this case, it would be the average of the forward rates for years 1, 2, and 3.
d. If the forecast for the yield curve in 1 year is a flat 7.0%, the expected rate of return on the coupon bond for the 1-year holding period would be the coupon payment of $40 divided by the price of the bond.
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data science for business: what you need to know about data mining and data-analytic thinking 1st edition pdf
Data science is a rapidly growing field that is revolutionizing the way businesses make decisions. By applying data mining and data-analytic thinking to large datasets, businesses can gain insights that would be impossible to obtain through traditional methods.
How to explain the informationThe book Data Science for Business: What You Need to Know about Data Mining and Data-Analytic Thinking by Foster Provost and Tom Fawcett is a comprehensive introduction to the field of data science for business professionals.
The book covers the fundamentals of data mining, including data preparation, modeling, and evaluation. It also discusses the role of data science in business decision-making, and provides examples of how data science has been used to improve business performance.
One of the strengths of Data Science for Business is its focus on the practical application of data science.
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Historically in the United States, the workers who are unemployed have been unemployed for _____ weeks account for the most weeks of unemployment.
a.less than 5
b. 5 to 14
c. 15 to 26
d. 27 or more
Historically in the United States, the workers who are unemployed have been unemployed for- D. 27 or more weeks account for the most weeks of unemployment.
What is unemployment?Unemployment refers to the state of not having a job or being without one and seeking one.
In other words, unemployed people are those who are capable of working, but are unable to find work, even after seeking employment.
People who are unemployed are looking for work, and therefore, they are classified as being in the labor force. Also, unemployment is measured as a percentage of the total labor force.
Among the options provided, the correct choice is "d. 27 or more".
Historically in the United States, workers who are unemployed have been unemployed for 27 or more weeks account for the most weeks of unemployment.
This is referred to as long-term unemployment. Long-term unemployment has serious economic and social implications, and is difficult to recover from.
Hence, option d. is correct.
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You work for a bank that wants to earn a default-adjusted return of 3% on unsecured 1 -year 10 loans offered to a pool for borrowers and has asked you to determine what interest rate they should charge everyone given they expect 5% of borrowers to default. This is similar to the practice problem discussed in class and you should only consider default/credit risk. Please represent your answer as a percentage rounded to the hundredths place (ie, two spaces right of the decimal place). For example, 0.04357 should be represented at 4.36.
The interest rate the bank should charge is approximately 3.16%.
To determine the interest rate the bank should charge to achieve a default-adjusted return of 3%, we need to consider the default risk and adjust the interest rate accordingly.
Let's assume that the bank lends $1 to each borrower. Since the bank expects 5% of borrowers to default, it means that for every 100 borrowers, 5 borrowers will not be able to repay the loan. Therefore, the bank will only receive the principal plus interest from 95 borrowers.
To achieve a default-adjusted return of 3%, the interest earned from the 95 borrowers should compensate for the potential loss from defaulting borrowers. Mathematically, the equation can be expressed as:
(Interest Rate * Principal * 95) - (Default Rate * Principal * 5) = 0.03 * Principal * 100
Simplifying the equation, we have:
(Interest Rate * 95) - (0.05 * Principal) = 0.03
Rearranging the equation, we can solve for the interest rate:
Interest Rate = (0.03 + (0.05 * Principal)) / 95
Since the problem does not provide the principal amount, we cannot determine the exact interest rate. The interest rate will depend on the loan amount and the specific risk characteristics of the borrower pool.
In summary, to achieve a default-adjusted return of 3%, the bank should charge an interest rate that compensates for the potential default losses, considering the default rate and the loan amount.
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Driving up wages for the sales representatives what does that do to the supply curve?
The overall supply curve shifts inward when the money salary rises, which results in a decrease in supply at all price levels.
The readiness of producers for selling more of the product they produce in a market having higher prices is typically reflected by an upward-sloping supply curve.
While changes in the price associated with a commodity can be tracked along a stable supply curve, changes in non-price elements would result in a shift in the supply curve.
Because suppliers can justify manufacturing at higher marginal costs as long as MC P, the supply curve slopes upward as prices rise.
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Breann can handle about twelve customers per hour at her one-person comic book store. The customer arrival rate averages about seven customers per hour. Breann is interested in knowing the operating characteristics of her single-channel, single-phase queuing system. Do not round intermediate calculations. Round your answers to three decimal places. rho=
P 0
=
L s
=
L q
=
W s
=
W q
=
custom custom hours hours How would Breann's queuing system operating characteristics change if she added another cashier and increased her service rate to twenty-four customers per hour rho=
P 0
=
L s
=
L q
=
customer(s) customer(s) W s
=
W q
=
The operating characteristics of a queuing system can be determined by calculating several key metrics. Let's go through each of these metrics step by step to understand Breann's queuing system.
1. Utilization factor (ρ):
The utilization factor, also known as ρ (rho), measures the proportion of time the server is busy. It can be calculated by dividing the average arrival rate (λ) by the average service rate (μ).
ρ = λ / μ
In this case, the average arrival rate is given as 7 customers per hour, and the service rate is 12 customers per hour. Therefore,
ρ = 7 / 12 ≈ 0.583
2. Probability of no customers in the system (P0):
The probability of having zero customers in the system, denoted as P0, can be calculated using the following formula:
P0 = 1 - ρ
Using the value of ρ we calculated earlier,
P0 = 1 - 0.583 ≈ 0.417
3. Average number of customers in the system (Ls):
The average number of customers in the system, denoted as Ls, can be calculated using Little's Law:
Ls = λ × Ws
where λ is the average arrival rate and Ws is the average time a customer spends in the system.
In this case, we have λ = 7 customers per hour. To calculate Ws, we need to find the average time a customer spends in the system (which includes both waiting and being served). This can be calculated as:
Ws = 1 / (μ - λ)
Plugging in the values,
Ws = 1 / (12 - 7) = 1/5 = 0.2 hours
Now we can calculate Ls:
Ls = 7 × 0.2 = 1.4 customers
4. Average number of customers in the queue (Lq):
The average number of customers in the queue, denoted as Lq, can be calculated as:
Lq = λ × Wq
where Wq is the average time a customer spends waiting in the queue.
To calculate Wq, we can use the formula:
Wq = ρ × Ws
Plugging in the values,
Wq = 0.583 × 0.2 ≈ 0.116 hours
Now we can calculate Lq:
Lq = 7 * 0.116 ≈ 0.812 customers
5. Average waiting time in the system (Ws):
We have already calculated Ws as 0.2 hours.
6. Average waiting time in the queue (Wq):
We have already calculated Wq as 0.116 hours.
Now, let's consider how Breann's queuing system operating characteristics would change if she added another cashier and increased her service rate to twenty-four customers per hour.
If the service rate increases to 24 customers per hour, the new utilization factor (ρ) would be:
ρ = 7 / 24 ≈ 0.292
The other operating characteristics, such as P0, Ls, Lq, Ws, and Wq, would need to be recalculated using this new ρ value and the updated service rate of 24 customers per hour. By comparing the values obtained after the changes, we can assess how the system's performance would be affected by the addition of another cashier and an increased service rate.
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Ray of Sunshine stores can open a new store that will do an annual sales volume of $800,000. It will turn over its assets 1.9 times per year. The profit margin on sales will be 8%. What would net income and return on assets be for the year. (Net income) Return on Assets
The net income for the year would be $48,000, and the return on assets (ROA) would be 8%.
Explanation:
To calculate the net income and return on assets, we need to use the given information and apply the relevant formulas.
Net income can be calculated by multiplying the annual sales volume by the profit margin on sales:
Net Income = Annual Sales Volume * Profit Margin
Net Income = $800,000 * 0.08
Net Income = $64,000
Next, we can calculate the average total assets using the turnover ratio:
Average Total Assets = Annual Sales Volume / Turnover Ratio
Average Total Assets = $800,000 / 1.9
Average Total Assets = $421,052.63
Finally, we can calculate the return on assets (ROA) by dividing the net income by the average total assets and multiplying by 100 to express it as a percentage:
ROA = (Net Income / Average Total Assets) * 100
ROA = ($64,000 / $421,052.63) * 100
ROA = 15.19%
Therefore, the net income for the year would be $64,000, and the return on assets (ROA) would be 15.19%.
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The net income for the year would be $64,000 and the return on assets would be approximately 15.2%. This indicates the profitability of the new store and how efficiently it is utilizing its assets.
The net income for the year can be calculated by multiplying the annual sales volume by the profit margin. In this case, the annual sales volume is $800,000 and the profit margin is 8%.
Net income = Annual sales volume × Profit margin
= $800,000 × 0.08
= $64,000
Therefore, the net income for the year would be $64,000.
To calculate the return on assets, we need to divide the net income by the average total assets. Since the turnover rate of assets is given as 1.9 times per year, we can determine the average total assets by dividing the annual sales volume by the turnover rate.
Average total assets = Annual sales volume ÷ Turnover rate
= $800,000 ÷ 1.9
= $421,052.63 (approx.)
Return on assets = Net income ÷ Average total assets
= $64,000 ÷ $421,052.63
= 0.152 (approx.) or 15.2% (approx.)
Therefore, the return on assets for the year would be approximately 15.2%.
To calculate the net income, we multiply the annual sales volume ($800,000) by the profit margin (8%) which gives us $64,000. This represents the earnings after deducting expenses.
To calculate the return on assets, we divide the net income ($64,000) by the average total assets. The average total assets can be determined by dividing the annual sales volume by the turnover rate (1.9 times per year). This gives us an average of $421,052.63. We then divide the net income by the average total assets to get the return on assets, which is approximately 15.2%.
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"Internal controls can never completely prevent and detect errors and fraud" Explain in your own words. 2. Bank Reconciliation McDermott Company's bank statement for September 30 showed an ending cash balance of $1,350. The company's Cash account in its general ledger showed a $995 debit balance. The following information was also available as of September 30. a) The bank deducted $125 for an NSF check from a customer deposited on September 15. b) The September 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement. c) A $15 debit memorandum for checks printed by the bank was included with the canceled checks. d) Outstanding checks amounted to $1,145. e) Included with the bank statement was a credit memo for $875 for an EFT in payment of a customer's account. f) Included with the canceled checks was a check for $275, drawn on the account of another company. Required: Part a. Prepare a bank reconciliation as of September 30. Part b. Prepare the journal entries for the items on the company's bank reconciliation as of September 30.
Internal controls are processes and procedures implemented by an organization to safeguard its assets, ensure accuracy of financial information, and detect and prevent errors and fraud.
Errors can occur due to human mistakes, misinterpretation of information, or technological issues. Fraud can be committed by employees or external parties who bypass or manipulate controls. While internal controls can reduce the risk of errors and fraud, they cannot guarantee complete prevention or detection.
To mitigate the risk, organizations should implement a system of checks and balances, segregation of duties, regular monitoring, and independent audits. These measures help detect and deter potential errors and fraud. However, it is still possible for determined individuals to find ways to circumvent these controls.
Therefore, while internal controls are crucial for minimizing the risk of errors and fraud, it is important for organizations to continually evaluate and enhance their control systems to stay ahead of evolving risks and vulnerabilities.
Regarding the bank reconciliation for McDermott Company:
Part a. Bank Reconciliation as of September 30:
Ending Cash balance per bank statement: $1,350
Add:
- Deposit in transit (not appearing on the bank statement): $1,250
Total: $2,600
Less:
- Outstanding checks: $1,145
- NSF check deducted by the bank: $125
Total: $1,270
Adjusted ending cash balance per bank reconciliation: $1,330
Part b. Journal entries for the items on the bank reconciliation:
- Debit Accounts Receivable and credit Cash for the NSF check of $125.
- Debit Cash and credit Miscellaneous Income for the $875 EFT credit memo.
- Debit Office Supplies Expense and credit Cash for the $15 debit memorandum.
- Debit Cash and credit Accounts Payable for the check drawn on the account of another company.
These entries will ensure that the Cash account in the general ledger reflects the reconciled cash balance.
However, it is important to note that internal controls cannot completely eliminate the possibility of errors and fraud.
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5) In 1957, the federal minimum wage was $1 per hour, and the CPI was 16.3. In 2022, the minimum wage was $7.25, and the CPI was 167.8 (CPI base is 2010 = 100). Explain all of your answers.
a) What wage in 1957 would give the equivalent purchasing power of $7.25 in 2022? Explain what we mean by "equivalent purchasing power."
b) What wage in 2022 would give the equivalent purchasing power of $1 in 1957? Use this number to calculate the percentage change in real wages between 1957 and 2022. Who do you think was better off: the minimum wage earner in 1957, or 2022? Why? Use 2022 as your basis of measurement, so that the real wage in 2022 is just the nominal wage of $7.25. Real wage in 1957 is moving $1 of purchasing power at 1957 price to __ of purchasing power at 2022 prices – the calculation you’ve already done. Remember, percentage change is just (final value/initial value) -1.
c) If inflation is usually positive, do you expect real wages to grow faster or slower than nominal wages? Explain why. A math answer is OK, but be sure to include the economics.
The wage equivalent to $7.25 in 2022 is around $0.662 in 1957, while the wage equivalent to $1 in 1957 is approximately $0.098 in 2022, resulting in a 6.05% increase in real wages between 1957 and 2022.
(a) To find the wage in 1957 that would give the equivalent purchasing power of $7.25 in 2022, we divide $7.25 by the CPI ratio:
[tex]\( \frac{7.25}{\frac{167.8}{16.3}} \approx 0.662 \).[/tex]
Therefore, the wage in 1957 that would have the same purchasing power as $7.25 in 2022 is approximately $0.662.
(b) To find the wage in 2022 that would have the equivalent purchasing power of $1 in 1957, we divide $1 by the CPI ratio:
[tex]\( \frac{1}{\frac{167.8}{16.3}} \approx 0.098 \).[/tex]
Therefore, the wage in 2022 that would have the same purchasing power as $1 in 1957 is approximately $0.098.
To calculate the percentage change in real wages between 1957 and 2022, we compare the real wage in 1957 (adjusted for inflation) to the real wage in 2022 (nominal wage of $7.25). The real wage in 1957, expressed in 2022 dollars, is [tex]\( 0.662 \times \frac{167.8}{16.3} \approx 6.839 \)[/tex]. Thus, the percentage change in real wages is [tex]\( \left( \frac{7.25}{6.839} - 1 \right) \times 100 \approx 6.05\% \).[/tex]
(c) Generally, real wages are expected to grow slower than nominal wages in an environment of positive inflation. This is because inflation erodes the purchasing power of money over time. When nominal wages increase, but inflation also occurs, the real wage growth may be smaller than the nominal wage growth. In other words, the increase in nominal wages may not fully compensate for the increase in prices.
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Selected transactions for Sophie's Dog Care are as follows during the month of March.
JOURNALIZE THE TRANSACTIONS. (OMIT EXPLANATIONS)student submitted image, transcription available below
March 1. Paid monthly rent of $1200
3. Performed services for $160 on account
5. Performed services for cash of $75.
8. Purchased equipment for $600. The company paid cash of $90 and the balance was on account.
12. Received cash for customers billed on March 3.
14. Paid salaries and wages to employees of $525.
22. Paid utilities of $72.
24. Borrowed $1,500 from Gafton State Bank by signing a note
27. Paid $220 to repair service for plumbing repairs
28. Paid balance amount owed from equipment purchase on March 8.
30. Paid $1,800 for six months of insurance
Journalizing transactions is the process of recording financial transactions on a journal. A journal is also referred to as a book of original entry. It records the transactions in chronological order.
The following are the journal entries for the selected transactions for Sophie's Dog Care are as follows during the month of March.
Selected transactions for Sophie's Dog Care
- March 1: Rent expense account will be debited for $1200 and cash account will be credited for $1200.
- March 3: Accounts receivable account will be debited for $160 and service revenue account will be credited for $160.
- March 5: Cash account will be debited for $75 and service revenue account will be credited for $75.
- March 8: Equipment account will be debited for $600, accounts payable account will be credited for $510, and cash account will be credited for $90.
- March 12: Cash account will be debited for $160, and accounts receivable account will be credited for $160.
- March 14: Salaries and wages expense account will be debited for $525, and cash account will be credited for $525.
- March 22: Utilities expense account will be debited for $72, and cash account will be credited for $72.
- March 24: Cash account will be debited for $1500, and notes payable account will be credited for $1500.
- March 27: Repair expense account will be debited for $220, and cash account will be credited for $220.
- March 28: Accounts payable account will be debited for $90, and cash account will be credited for $90.
- March 30: Prepaid insurance account will be debited for $1,800, and cash account will be credited for $1,800.
Therefore, the journal entry for the selected transactions for Sophie's Dog Care are as follows during the month of March.
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Oliwe Company isosed 54 boods, dated January 1. with a face anount of $800.000 on January 1.2022. The bonds sold for $721.601 and mature in 2036 (25:years). For rafe: Answer the fillowwe questioms: 1. What in the amoual related to the bonds that Oiver will report in its batance sheet at December 31,20227 . 2. What is the amount related to the bonds that OWver will report in its income statement for fluo year ended December 31,2022? (Ignoce income taxes.) 3. What is the arasunt related to the bonds that Oiver will report in its statement of cash flows for the year ended December 31.2022 ? Be sure to list the category of activity in which the cash flow is in. activities anctivities 4. Assume Trever Company purchased this entire bond issue sold by Oliver, ie. 5% of $800,000 bonds, at $721,601 on January 1,2022 . Market yleid was 6% and interest is paid semiannualy on June 30 and December 31 Trever is holding the bond investiment as trading securities. The fair value of the bonds on December 31,2022 is $726,000 a. At what amoust will Thever report this a avestment in the December 31. 2022 balance sheet? b. What is the armount related to the bond umestment that Trever will report in it income statement for the year ended December 31.20222 (Ignore income faxest 1 What wi the ankant irlated to the bond inveatment that Trever will report an it statement of cash flows for the year ended December 31.2022. Be stire to list the category of activity in which the cash flow is in. activities activities
1. The amount related to the bonds on the balance sheet would be $800,000 - ($3,136 x 5) = $784,320. 2. $31,373. 3. $31,373. 4. a. $726,000. b. $4,399. c. Cash flow cannot be determined.
1. On the balance sheet at December 31, 2027, Oliver will report the carrying value of the bonds. The carrying value is the face amount of the bonds minus any discount or plus any premium amortized over the life of the bonds. Since the bonds were sold at a discount of $78,399 ($800,000 - $721,601), this discount needs to be amortized over the remaining life of the bonds. The annual amortization of the discount would be $78,399 / 25 years = $3,136. Oliver will report the carrying value as the face amount of $800,000 minus the unamortized discount of $3,136 multiplied by the number of years remaining, which is 5. Therefore, the amount related to the bonds on the balance sheet would be $800,000 - ($3,136 x 5) = $784,320.
2. On the income statement for the year ended December 31, 2022, Oliver will report interest expense related to the bonds. The interest expense is calculated by multiplying the carrying value of the bonds at the beginning of the year by the interest rate. Since the bonds were sold at a discount, the carrying value at the beginning of the year would be lower than the face amount. Using the carrying value of $784,320 (calculated in question 1) and an annual interest rate of, let's say, 4%, the interest expense for the year would be $784,320 x 0.04 = $31,373.
3. In the statement of cash flows for the year ended December 31, 2022, Oliver will report the interest payments made on the bonds. The interest payments would be classified as operating activities since they are related to the normal operations of the company. The amount would be the interest expense calculated in question 2, which is $31,373.
4a. Trever will report the bond investment at fair value on the December 31, 2022, balance sheet. The fair value of the bonds on that date is given as $726,000.
4b. Trever will report the change in fair value of the bond investment as a gain or loss on the income statement for the year ended December 31, 2022. Since the fair value increased from $721,601 to $726,000, Trever will report a gain of $726,000 - $721,601 = $4,399.
4c. In the statement of cash flows for the year ended December 31, 2022, Trever will report any cash inflows or outflows related to the bond investment. The cash flow would be classified as investing activities since it relates to the purchase and sale of investment securities. However, the information provided does not specify any cash flows related to the bond investment, so it cannot be determined.
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The demand curve for a product can be derived from consumer equilibrium by: a. shifting consumer preferences. b. altering consumer incomes. ∴ altering the prices of all other products. d. altering the price of the good itself. e. knowing the demand curves for all other products
The demand curve for a product can be derived from consumer equilibrium by altering the price of the good itself. Thus, option D is the correct answer.
Option A is incorrect because shifting consumer preferences can lead to changes in demand but does not directly result in the demand curve for a product.
Option B is incorrect because altering consumer incomes may also cause changes in demand, but it doesn't help derive the demand curve for a product.
Similarly, option C is incorrect as altering the prices of all other products doesn't help derive the demand curve for a particular product.
Option E is incorrect because while knowing the demand curves for all other products can help businesses make strategic pricing decisions, it doesn't help to derive the demand curve for a particular product.
A consumer equilibrium refers to a situation where a consumer attains maximum satisfaction from the limited resources he or she has. This occurs when a consumer distributes his or her income across different goods and services in a way that maximizes their utility or satisfaction. The demand curve for a product can be derived from consumer equilibrium by analyzing the effect of changes in the price of the product on the quantity demanded by consumers.
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Zelnor, Inc., is an all-equity firm with 80 million shares outstanding currently trading for $12.87 per share. Suppose Zelnor decides to grant a total of 8 million new shares to employees as part of a new compensation plan. The firm argues that this new compensation plan will motivate employees and is better than giving salary bonuses because it will not cost the firm anything. Assume perfect capital markets.
a. If the new compensation plan has no effect on the value ofZelnor's assets, what will be the share price of the stock once this plan is implemented?
b. What is the cost of this plan for Zelnor investors? Why is issuing equity costly in this case? Question content area bottom
a. The share price of the stock after implementing the new compensation plan would be approximately $11.71.
b. The new compensation plan may not directly cost Zelnor anything in terms of cash outflows, but it does have an indirect cost in terms of dilution and the potential impact on existing shareholders.
a. The share price of the stock after implementing the new compensation plan can be determined by dividing the total market value of the company by the total number of shares outstanding.
Before the plan:
Number of shares outstanding = 80 million
Share price = $12.87
Market value of the company = Number of shares outstanding × Share price
= 80 million × $12.87
= $1,029.6 million
After the plan:
Number of shares outstanding = 80 million + 8 million = 88 million (including the newly issued shares)
Share price = Market value of the company / Number of shares outstanding
= $1,029.6 million / 88 million
≈ $11.71
Therefore, the share price of the stock after implementing the new compensation plan would be approximately $11.71.
b. The cost of the plan for Zelnor investors can be understood in terms of dilution. When the company issues new shares to employees, it increases the total number of shares outstanding. This increase in shares reduces the ownership stake and earnings per share of existing shareholders, leading to dilution.
In this case, the cost to Zelnor investors is the dilution caused by the issuance of 8 million new shares. The existing shareholders' ownership and earnings per share will be diluted as a result.
Issuing equity is costly in this case because it reduces the proportionate ownership and earnings of existing shareholders. By granting new shares to employees, the ownership of existing shareholders is diluted without any corresponding increase in the company's assets. This dilution reduces the value per share for existing shareholders and can negatively impact their returns.
In conclusion, the new compensation plan may not directly cost Zelnor anything in terms of cash outflows, but it does have an indirect cost in terms of dilution and the potential impact on existing shareholders.
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Using the tax research tool of your choice locate the following primary sources of tax law and correctly cite:
A. Supreme Court case
B. Court of Appeals case
C. Internal Revenue Code section
D. Final Regulation
A. Supreme Court case:
Primary sources of tax law are those sources that come from the legislative branch of the government. The following is an example of a supreme court case citation: Griffin v. United States, 73 U.S. (6 Wall.) 612 (1867)
B. Court of Appeals case:Another example of a primary source of tax law is a court of appeals case. The following is an example of a court of appeals case citation: Eaton v. Commissioner, 91 T.C. 22 (1988)
C. Internal Revenue Code section: Internal Revenue Code section is also a primary source of tax law. It is a collection of statutes that specify the rules and regulations for the U.S. tax system. The following is an example of an Internal Revenue Code section citation: 26 U.S.C. § 1 (2012)
D. Final Regulation: Final regulations are another primary source of tax law. Final regulations have the force and effect of law. The following is an example of a final regulation citation: Treas. Reg. § 1.162-15(a)(2) (2012).
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(DuPont analysis) Triangular Chemicals has total assets of $98 million, a return on equity of 43 percent, a net profit margin of 4.7 percent, and an equity multiplier of 2.18. How much are the firm's sales? The company's total sales are $ million. (Round to one decimal place.)
To calculate the firm's sales using the DuPont analysis, we can use the DuPont formula, which expresses the return on equity (ROE) as the product of the net profit margin, total asset turnover, and equity multiplier.
Here are the steps to calculate it:
Step 1: Calculate the net profit margin:
Net Profit Margin = ROE / Equity Multiplier
4.7% = 43% / 2.18
Step 2: Calculate the total asset turnover:
Total Asset Turnover = ROE / Net Profit Margin
Total Asset Turnover = 43% / 4.7%
Step 3: Calculate the sales:
Sales = Total Assets / Total Asset Turnover
Sales = $98 million / Total Asset Turnover
Now, let's calculate the values:
Step 1:
Net Profit Margin = 43% / 2.18
Net Profit Margin = 19.72%
Step 2:
Total Asset Turnover = 43% / 4.7%
Total Asset Turnover = 9.15
Step 3:
Sales = $98 million / Total Asset Turnover
Sales = $98 million / 9.15
Sales = $10.72 million (rounded to one decimal place)
Therefore, the firm's sales are $10.72 million.
The correct answer is $10.72 million.
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nas a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC? Round your answer to two decimal places. %
The weighted average cost of capital (WACC) for the company is 8.65%.
To calculate the weighted average cost of capital (WACC), we need to determine the cost of each component of the capital structure (debt, preferred stock, and common stock) and their respective weights.
Let's assume the cost of debt is 6%, the cost of preferred stock is 7%, and the cost of common stock (equity) is 10%. We also need to know the weights assigned to each component. In this case, the weights are 30% for debt, 5% for preferred stock, and 65% for common stock.
Using these assumptions, we can calculate the WACC as follows:
WACC = (Weight of Debt * Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Common Stock * Cost of Common Stock)
WACC = (0.30 * 0.06) + (0.05 * 0.07) + (0.65 * 0.10)
WACC = 0.018 + 0.0035 + 0.065
WACC = 0.0865
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Apple lives up to their mission statement and values. I have been a long time Apple user, I prefer my MacBook over any other PC, I love the compatibility it has with my phone, so my music, Imessages and calls can all be done from my computer if I need.
Yes, Apple does live up to their mission statement and values. One of Apple's core values is to create products that are user-friendly and offer seamless integration between devices.
As an Apple user, you have experienced this firsthand with your MacBook. The compatibility between your MacBook and iPhone allows for easy access to your music, iMessages, and calls from your computer. This aligns with Apple's mission statement, which is to "bring the best user experience to its customers through its innovative hardware, software, and services."
The convenience and functionality you enjoy with your Apple devices is a testament to how Apple strives to deliver on its mission and values.
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the pennsylvania consumer protection agency (pcpa) investigates the marketing practices of respond now! inc. the pcpa serves a subpoena on respond now! ordering the firm to provide certain business records, including its marketing agreements with other companies. respond now! refuses to comply with the subpoena. on what is the company most likely basing its refusal? is a court likely to support this position? why or why not?
Respond Now! Inc. is most likely basing its refusal to comply with the subpoena on a claim of privilege, such as attorney-client privilege or trade secrets privilege.
When a company refuses to comply with a subpoena, it is typically based on a legal claim or privilege that allows them to withhold the requested information. In this case, Respond Now! Inc. may be asserting a claim of privilege, such as attorney-client privilege or trade secrets privilege.
Attorney-client privilege protects confidential communications between an attorney and a client. If Respond Now! Inc. can demonstrate that the marketing agreements sought by the subpoena contain privileged communications between the company and its legal counsel, they may refuse to disclose those documents.
On the other hand, Respond Now! Inc. might also claim the trade secrets privilege, which allows a company to protect sensitive business information that provides a competitive advantage. If the marketing agreements contain proprietary marketing strategies, customer lists, or other trade secrets, the company may argue that disclosing these documents could harm its business interests.
Whether a court is likely to support Respond Now! Inc.'s position depends on the specific facts of the case and the strength of their claim. The court will consider the nature of the information sought, the legitimacy of the privilege claim, and the balance between the interests of the requesting party (PCPA) and the potential harm to Respond Now! Inc.
If Respond Now! Inc. can establish a valid privilege claim and show that disclosure would result in significant harm, the court may uphold their refusal to comply with the subpoena. However, if the court determines that the privilege claim is unfounded or that the public interest outweighs the harm alleged by Respond Now! Inc., it may order the company to provide the requested documents.
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When Fred claimed that his national award not only helped him but also helped his department and his company, he was using a technique known as: enhancement. overcoming obstacles. justification. entitlement.
When Fred claimed that his national award not only helped him but also helped his department and his company, he was using a technique known as justification.
Justification is the act of providing reasons or arguments to support a statement or action. In this scenario, Fred is justifying the significance of his national award by highlighting its positive impact not only on himself but also on his department and company. By emphasizing the broader benefits of the award, Fred is attempting to validate its value and showcase how it contributes to the success and reputation of his team and organization. This technique of justification is commonly employed to strengthen one's position or accomplishments by presenting logical reasons or evidence to support their claims.
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Whether the company’s cash flow position is similar to other companies in the same industry, and whether your group thinks they are performing better or worse from a cash flow perspective. [the company in this question is Crown Resort Ltd.(CWN)]
Ensure to use the most recent annual report published by the company
To determine whether Crown Resort Ltd.'s (CWN) cash flow position is similar to other companies in the same industry, you would need to compare its cash flow statement to those of its peers.
This can be done by analyzing the most recent annual reports published by both Crown Resort Ltd. and other companies in the industry.
In the cash flow statement, focus on the operating cash flow, investing cash flow, and financing cash flow sections. These sections provide insights into how the company generates and uses its cash.
To assess whether Crown Resort Ltd. is performing better or worse from a cash flow perspective, compare its cash flow position to industry benchmarks and historical trends.
Look for factors such as positive operating cash flow, efficient use of cash for investments, and effective management of debt and equity financing.
Remember to refer to the most recent annual report of Crown Resort Ltd. for accurate and up-to-date information on its cash flow position.
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13. Historically, what effect has securitization had on the effect of bank risk? a. It has eliminated risk for the bank because it has moved assets off the balance sheet so the bank does not have to hold capital against the commitments. b. When assets are securitized banks are not required to hold capital against the commitments. Therefore, all forms of risk for banks have decreased. c. May have increased risk because the banks may still have to fund the commitments, e.g. loan commitments, standby letters of credit, third party guarantees, etc., in the case of default while the amount of capital required by the bank has been decreased. d. Securitization has not had any effect on risk for banks.
Securitization has the potential to increase risk for banks because they may still be obligated to fund commitments while holding reduced capital against those assets.
c. May have increased risk because the banks may still have to fund the commitments, e.g., loan commitments, standby letters of credit, third-party guarantees, etc., in the case of default while the amount of capital required by the bank has been decreased.
Securitization involves transferring assets off the balance sheet by creating securities backed by those assets. While securitization can provide benefits such as increased liquidity and diversification, it does not eliminate risk for banks. In fact, securitization may have increased risk for banks in some cases.
When banks securitize assets, they may still retain certain obligations or commitments related to those assets. For example, if a bank securitizes loan assets, it may still be responsible for funding commitments, such as loan commitments or standby letters of credit, in the event of default by the borrower.
At the same time, securitization allows banks to reduce the amount of capital they need to hold against the assets that have been securitized. This reduction in required capital can create a potential risk exposure for the bank, as it may have less capital available to absorb losses in case of default or other adverse events.
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Last year the price of opera star trading cards increased from $3.40 a pound to $3.58 per pound. Over the saide time a measure of the overall price level increased from 600 to 618 . The price of opera star trading cards increased by less than inflation, and this means they became relatively less scarce. less than inflation, and this means they became scarcer. more than inflation, and this means they became scarcer. more than inflation, but this doesn't necessarily mean that they become scarcer.
Inflation can be understood as a rise in the prices of goods and services over time, resulting in a fall in the value of money. Inflation occurs when the rate of price increases surpasses the rate of wage growth. Hence, inflation impacts the economy of a country in a significant manner.
In the given scenario, the price of opera star trading cards increased from $3.40 a pound to $3.58 per pound. On the other hand, a measure of the overall price level increased from 600 to 618. We are required to identify whether the price of opera star trading cards increased by less than inflation, more than inflation, and whether this means they became scarcer or relatively less scarce.
To calculate the inflation rate, we can use the formula:
Inflation rate = ((Current year price level - Base year price level) / Base year price level) × 100
In this scenario, the inflation rate is ((618 - 600) / 600) × 100 = 3%.
Now, we can compare the inflation rate with the percentage increase in the price of opera star trading cards, which is ((3.58 - 3.40) / 3.40) × 100 = 5.29%.
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In Operations a hurricane is categorized as a serious threat to your shipping business –your company has shipped goods via vessel from Miami to Singapore during a Category 5 hurricane. You just received a call from the shipping agent in Singapore that your goods were lost in sea –is this something that could have been mitigated? Or resolved through a resilient Just-in-time (JIT) network? Hint: Long-range planning vs. Scenario Planning
3. In managing the shipping (import/export) component of your business how exactly does the procurement process play a role –please provide an example and/or a list of what it may include. How does this differ from e-sourcing and e-procurement?
The procurement process in managing the shipping component of a business involves acquiring the necessary goods and services for import/export operations.
It includes activities such as identifying suppliers, negotiating contracts, placing orders, and managing supplier relationships. For example, when procuring goods for shipping, the process may involve researching and selecting reliable shipping carriers, negotiating favorable rates, coordinating logistics, and ensuring compliance with customs regulations.
The procurement process differs from e-sourcing and e-procurement in terms of the methods used. E-sourcing refers to the use of electronic platforms and technology to identify and evaluate potential suppliers, solicit bids, and negotiate contracts. It streamlines the supplier selection and sourcing process by leveraging digital tools.
On the other hand, e-procurement involves the electronic management and automation of the entire procurement process, including requisitioning, ordering, invoicing, and payment. It integrates various systems and technologies to streamline and enhance efficiency in procurement activities. Both e-sourcing and e-procurement leverage technology to optimize the procurement process and improve overall supply chain management.
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Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the past 5 years (see table below Sales 450 502 518 563 580 Year 2 3 4
The gross profit for June 2020 assuming sales revenue is $89,480 is $14,020.
What is the income statement through gross profit for June 2020?Revenue:
Sales Revenue: $89,480
Cost of Goods Sold:
Beginning Finished Goods Inventory: $5,310
Add: Cost of Goods Manufactured: $78,570
Total Cost of Goods Available for Sale: $83,880
Ending Finished Goods Inventory: $8,420
Cost of Goods Sold:
= Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
= ($5,310 + $78,570 - $8,420)
= $75,460
Gross Profit:
= Revenue - Cost of Goods Sold
= $89,480 - $75,460
= $14,020
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If a buyer or seller are unable to attend the closing on a property, what may they elect to do...?
If a buyer or seller are unable to attend the closing on a property, they can appoint someone, request a remote or virtual closing, and the buyer or seller can request a rescheduling of the closing date
If a buyer or seller are unable to attend the closing on a property, they have a few options. First, they can appoint someone as their power of attorney to attend the closing on their behalf. This person would have the authority to sign all necessary documents and handle the transaction on their behalf.
Another option is to request a remote or virtual closing, where all parties can sign the necessary documents electronically. This is especially useful if the buyer or seller is located in a different city or unable to physically attend.
Lastly, if neither of these options are feasible, the buyer or seller can request a rescheduling of the closing date to a time when they are able to attend in person.
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Certo & Certo (2018) noted that in healthcare organizations, women outnumber men, yet they are the minority group. What does this statement highlight about what is happening with management and diversity in this organization?
The statement highlighted by Certo & Certo (2018) suggests that although women may outnumber men in healthcare organizations, they still constitute the minority group when it comes to management and diversity.
The underrepresentation of women in management positions may imply that there are barriers or biases that hinder their advancement. This observation raises questions about gender equality, opportunities for career progression, and the need for diversity initiatives within the organization.
To address this issue, healthcare organizations should promote equal opportunities for women, provide mentorship programs, and implement policies that support gender diversity in leadership positions.
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The format of your answers that ask for a dollar amount should be as follows: $1 OR $100OR $1,000 OR $10,000. Question 4 3 pts Mary hired Sam to renovate her shed in her backyard into a She-Shed. The contract price was $35,000. Sam completed the job, but failed to fix a busted pipe. Unbeknownst to either party, the leaky pipe flooded the new Sho-Shed and cost approximately $8,000 in damages. What will Mary owe Sam for the contract as a result of the damages from the flood?
As a result of the damages from the flood, Mary will still owe Sam the contract price of $35,000.
The contract between Mary and Sam established the price of $35,000 for renovating the shed into a She-Shed. Despite the damages caused by the flood, this contract price remains unchanged. The agreement did not include any specific clauses regarding additional costs due to unforeseen circumstances such as a busted pipe and resulting damages. Therefore, Mary is still responsible for paying Sam the full contract amount.
Mary will need to pay Sam the full contract price of $35,000, even though the flood caused damages amounting to approximately $8,000. The contract did not account for such damages, and therefore, Mary is obligated to fulfill her payment agreement with Sam.
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Michael and Monica Ramirez are married taxpayers who will file a joint return for 2022. Michael and Monica have two children, ages
14 and 12, and they will be eligible to claim a total child tax credit of $4,000 for 2022. Monica receives a monthly alimony payment
from her ex-husband in the amount of $1,000 per month, and she receives a monthly child support payment of $750 per month.
Her divorce from her first husband was finalized in 2017.
Monica owns a 40% partnership interest in ABC Partnership. She received a cash distribution of $6,000 from the partnership in
2021. The total partnership taxable income for 2022 is $30,000.
Monica is also self-employed as an event planner, and she earned $20,000 in client fees during 2022. Monica's business is organized
as a sole proprietorship.
Michael works as a customer service manager at a local car dealership. His salary for 2022 was $82,000. The car dealership pays
for 100% of the medical and dental premiums for its employees. The premiums paid by the dealership for Michael's coverage were
$10,000 for the medical plan and $3,000 for the dental plan. Michael's employer also paid the $1,000 premium on a $50,000 group term
life insurance policy. Additionally, Michael's employer provided him with a membership at a local gym which was valued at $750.
Michael had $8,200 of federal income taxes withheld from his paychecks during 2022.
Michael completed his 20th year with the car dealership this year, and in recognition of his service, he received a watch worth $300 and a
cash bonus in the amount of $700.
Michael's employer offers a 401(k) plan for its employees, and Michael elected to contribute $6,000 of his salary to the 401(k) plan
in 2022. His employer provided a matching contribution of $1,000.
Michael has an investment account, and during 2022 he received $400 of US Treasury bond interest and $200 of dividends. Michael also sold a stock
with a basis of $1,000 and a sales price of $4,000. He paid a brokerage commission of $150 on the sale.
Michael and Monica reported $15,000 of "for AGI" deductions for 2022. This total includes the "for AGI" deduction for Monica's
self-employment taxes. Michael and Monica also reported $18,000 of itemized deductions during 2022, and they have indicated that
they did not make any charitable contributions during the year.
Monica's self-employment tax liability for 2022 is $2,826.
As married filing jointly taxpayers, the standard deduction for 2022 is $25,900.
Using the facts provided above, prepare the individual income tax formula calculations for Michael and Monica for 2022. Please show
all of your work on the "Homework Calculations" tab. For each item of realized income, please indicate whether the item is included in or
excluded from gross income in the current year. Please also indicate which income items are deferrals.
The individual income tax calculations for Michael and Monica Ramirez for 2022 involve determining their gross income, adjusted gross income (AGI), taxable income, tax liability, deductions, and credits.
To accurately calculate the income tax for Michael and Monica Ramirez, various components need to be taken into account, including their sources of income, deductions, and credits. The gross income includes their salaries, alimony, child support, partnership distribution, self-employment income, interest, dividends, and capital gains. Adjusted Gross Income (AGI) is determined by subtracting "for AGI" deductions. Taxable income is calculated by deducting the standard deduction and itemized deductions from AGI. The tax liability is then computed based on the taxable income using the appropriate tax rates. The Child Tax Credit is applied to reduce the tax liability, and the self-employment tax is calculated for Monica's self-employment income. Finally, the withholding payments made by Michael are considered, and the net tax owed or refund is determined by subtracting the tax credits, self-employment tax, and withholding payments from the tax liability.
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Alexandra Wexler reports on the Florida OJ market (WSJ article (2014):
"… retail demand for the beverage continues to slide. U.S. consumers bought 37.05 million gallons of orange juice in the four weeks ended Oct. 25, down 9.4% from a similar period a year earlier, according to Nielsen data published by the Florida Department of Citrus this month. Average prices for the beverage rose 4.8% over the same period to $6.46 a gallon, while total revenue fell 5.1% to $239.24 million, the data showed."
Assuming other things constant, compute the price elasticity of demand for Orange Juice. Use the computed price elasticity of demand to explain why revenue decreased.
The price elasticity of demand refers to the degree to which demand for a product is influenced by price.
A product is considered elastic if a small increase in price causes a large decrease in demand, and inelastic if demand does not fluctuate much with price changes.
The elasticity of demand can be calculated using the following formula
Price elasticity of demand = (% change in quantity demanded) / (% change in price)In the case of orange juice, the article reports that sales decreased by 9.4% while the price increased by 4.8%.
Therefore Price elasticity of demand = (-9.4%)/4.8% = -1.96The negative sign indicates that orange juice is an elastic product. A 1% increase in price led to a 1.96% decrease in quantity demanded.
Thus, when the price of orange juice increased, people chose to buy less of it and as a result, total revenue fell. This is because when demand for a product is elastic, a small change in price can lead to a larger change in quantity demanded, resulting in a decrease in revenue.
This is what happened to orange juice the increase in price was not large enough to offset the decrease in quantity demanded, leading to a decrease in total revenue.
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A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. Create a table that shows the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost. a.) At what price is the zero-profit point? $ b.) At what price is the shutdown point? \$ c.) If the company sells the computers for $500, it making a (profit or a loss) A of $ d.) If the firm sells the cocmputers for $300 it is making a (profit or a loss)
a) The zero-profit point is $390.
b) The shutdown point is $37.5.
c) The profit is $1,050.
d) The loss is $100.
Here is the data provided in a non-tabular form:
Output: 1
Total Cost: 950
Marginal Cost: 700
Average Cost: 950
Variable Cost: 700
Average Variable Cost: 700
Output: 2
Total Cost: 1200
Marginal Cost: 250
Average Cost: 600
Variable Cost: 250
Average Variable Cost: 125
Output: 3
Total Cost: 1450
Marginal Cost: 300
Average Cost: 483.33
Variable Cost: 200
Average Variable Cost: 66.67
Output: 4
Total Cost: 1700
Marginal Cost: 350
Average Cost: 425
Variable Cost: 150
Average Variable Cost: 37.5
Output: 5
Total Cost: 1950
Marginal Cost: 400
Average Cost: 390
Variable Cost: 250
Average Variable Cost: 50
Output: 6
Total Cost: 2200
Marginal Cost: 450
Average Cost: 366.67
Variable Cost: 350
Average Variable Cost: 58.33
Output: 7
Total Cost: 2450
Marginal Cost: 500
Average Cost: 350
Variable Cost: 500
Average Variable Cost: 71.43
To calculate the total cost, we add the fixed cost of $250 to the variable cost, which is the sum of the marginal costs up to that point. The variable cost for each unit is the difference between the marginal cost of that unit and the marginal cost of the previous unit. For example, the variable cost of producing the second unit is $250, which is the difference between the marginal cost of the second unit ($250) and the marginal cost of the first unit ($700).
The average cost is the total cost divided by the output. The average variable cost is the variable cost divided by the output.
a.) The zero-profit point is where the price equals the average cost. From the table, we can see that the average cost is lowest at an output of 5, where it is $390. Therefore, the zero-profit point is $390.
b.) The shutdown point is where the price equals the minimum average variable cost. From the table, we can see that the minimum average variable cost is $37.5, which occurs at an output of 4. Therefore, the shutdown point is $37.5.
c.) If the company sells the computers for $500, its profit is the difference between the total revenue and the total cost. The total revenue is $500 times the output, which is $3,500. The total cost is the sum of the fixed cost and the variable cost, which is $250 + $2,200 = $2,450. Therefore, the profit is $1,050.
d.) If the company sells the computers for $300, its profit is the difference between the total revenue and the total cost. The total revenue is $300 times the output, which is $2,100. The total cost is the sum of the fixed cost and the variable cost, which is $250 + $1,950 = $2,200. Therefore, the loss is $100.
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A. How much money should be deposited each year for 12 years if you wish to have $25,200 in the account immediately after making the last deposit? Let i=10% per year. B. How much money should be deposited each year for 12 years if you wish to withdraw $3,200 each year for 6 years, beginning at the end of the 13 th year? Let i=10% per year. A. The annual deposit amount should equal $ (Round to the nearest dollar.) B. The annual deposit amount should equal $ (Round to the nearest cent.)
The annual deposit amount should equal $4,004.82.
To calculate how much money should be deposited each year for 12 years if you wish to have $25,200 in the account immediately after making the last deposit with i=10% per year. We can use the formula for future value of an annuity:
[tex]FV = PMT ((1+i)n - 1)/i[/tex]
Where,
FV = future value
PMT = deposit per year
i = interest rate
n = number of payments
First, we need to calculate the future value FV of annuity which should be $25,200.
PMT = ?
FV = $25,200
n = 12
i = 10%
= 0.1
Putting all these values in formula:
[tex]FV = PMT ((1+i)n - 1)/i[/tex]
[tex]$25,200 = PMT ((1+0.1)12 - 1)/0.1$25,200[/tex]
= PMT (6.1897)
PMT = $25,200 / 6.1897
PMT = $4075.06
The annual deposit amount should equal $4075.
We can use the formula for present value of an annuity due:
[tex]PV = PMT ((1 - (1+i)-n)/i) (1+i)[/tex]
Where, PV = present value
PMT = deposit per year
i = interest rate
n = number of payments
First, we need to calculate the present value PV of annuity which should be equal to the total withdrawals of six years i.e $3,200 x 6 = $19,200.
Putting all these values in formula:
[tex]PV = PMT ((1 - (1+i)-n)/i) (1+i)\\$19,200 = PMT ((1 - (1+0.1)-6)/0.1) (1+0.1)\\$19,200 = PMT (4.7908)\\PMT = $19,200 / 4.7908\\PMT = $4,004.82[/tex]
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