When the economy is in an expansion, normally the demand for bonds increases, and the interest rate rises, everything else held constant. (Option D)
During an economic expansion, there is usually an increase in business activity and optimism about future growth. As a result, investors tend to have higher expectations for returns on their investments, including bonds. This increased demand for bonds is driven by the desire to allocate funds to relatively safer investments with fixed income, as bonds are seen as a more stable asset class compared to stocks.
When the demand for bonds increases, bond prices rise. However, bond prices and interest rates have an inverse relationship. As the demand for bonds rises, investors are willing to pay higher prices for them, which leads to a decrease in the yield or interest rate offered by the bonds. Therefore, in an expansionary phase, the interest rates tend to increase as the demand for bonds rises.
It's important to note that this relationship may be influenced by various factors, such as monetary policy decisions, inflation expectations, and overall market conditions. However, under normal circumstances, an expansion in the economy is typically associated with increased demand for bonds and higher interest rates.
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The Indiana Real Estate Commission may delay the renewal of a broker's license if the
A. Broker owes past multiple listing service (MLS) fee.
B. The commission is completing an investigation that will verify whether the licensee committed and act
C. managing broker has failed to provide the commission with copies of the broker continuing education
D. licensee has not successfully completed the latest uniform standards of professional appraisal practice
The Indiana Real Estate Commission may delay the renewal of a broker's license if they are conducting an investigation to verify whether the licensee committed an act.
The Indiana Real Estate Commission has certain criteria that may result in the delay of a broker's license renewal. Option B states that if the commission is conducting an investigation to determine whether the licensee committed an act, the renewal may be delayed. This indicates that the commission requires time to complete its investigation and gather relevant information before making a decision on the renewal.
The commission's decision to delay the renewal in such cases serves the purpose of ensuring that brokers are in compliance with the regulations and ethical standards of the real estate industry. By conducting investigations and verifying the actions of licensees, the commission aims to maintain the integrity of the profession and protect the interests of clients and the public.
Therefore, the Indiana Real Estate Commission may delay the renewal of a broker's license if they are conducting an investigation to determine whether the licensee has committed an act. This step helps to ensure the compliance and ethical conduct of brokers in the real estate industry.
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(i) Section 8 of the Hire Purchase Act 1967 protects the hirer from being cheated by the owner, dealer or its agent as a result of the fraudulent misrepresentation. Explain the protection of rights of the hirer and the owner as a result of fraudulent misrepresentation which is committed by the owner’s agent based on the relevant provisions and decided cases.
Section 8 of the Hire Purchase Act 1967 safeguards the rights of the hirer and the owner in cases of fraudulent misrepresentation by the owner's agent.
Section 8 of the Hire Purchase Act 1967 provides protection to both the hirer and the owner in situations where the owner's agent engages in fraudulent misrepresentation. If the hirer enters into a hire purchase agreement based on false or misleading information provided by the owner's agent, Section 8 allows the hirer to rescind the agreement.
This means that the hirer can cancel the agreement and potentially seek compensation for any losses suffered as a result of the misrepresentation. Furthermore, the owner is also protected under Section 8. If the owner can prove that the misrepresentation was without their knowledge, consent, or negligence, they may be able to avoid liability.
However, if the owner is found to be aware of or complicit in the agent's fraudulent actions, they may be held responsible for any damages incurred by the hirer. Decided cases have provided further clarification on the application of Section 8.
For instance, in the case of Ting Sing Chye v. Boon Teng & Co. Sdn Bhd (1981), the court held that if the owner's agent makes false representations that induce the hirer to enter into the hire purchase agreement, the hirer has the right to rescind the contract and seek redress. This highlights the importance of Section 8 in protecting the hirer's rights and ensuring accountability for fraudulent actions committed by the owner's agent.
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A bank is quoting the following rates :
USD/CHF Spot = 1.5975/ 80
2-month : 20/10
3-month : 25/15
USD/SAR = 3.7550/ 60 (SAR= Saudi Riyal)
2-month : 20/ 40
A firm wishes to buy Riyal against CHF forward 2.5 months. What will be the
CHF/SAR bid/ask rate?
3-month : 25/ 15
The CHF/SAR bid/ask rate for a forward exchange 2.5 months will be between 1.5953 and 1.5972.
USD/CHF Spot = 1.5975/ 80,
2-month : 20/10,
3-month : 25/15
USD/SAR = 3.7550/ 60 (SAR= Saudi Riyal),
2-month : 20/ 40A firm wishes to buy Riyal against CHF forward 2.5 months.
We have to find out the CHF/SAR bid/ask rate. To calculate CHF/SAR bid/ask rate we will use the USD rate:
USD/CHF 2-month forward = 1.5975 + (0.0020) = 1.5995/1.6005
USD/SAR 2-month forward = 3.7550 + (0.0040) = 3.7590/3.7630
By cross rate multiplication, we can calculate the CHF/SAR 2-month forward exchange rate:
CHF/SAR 2-month forward = (USD/CHF 2-month forward) x (USD/SAR 2-month forward) = (1.5995/1.6005) x (3.7590/3.7630) = 1.5953/1.5972
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The basis by which jobs are grouped is called O a departmentalization Ob span of control O integration Od work specialization Marked out of 1.00 Flag question Questio
The basis by which jobs are grouped is called departmentalization. Departmentalization refers to the process of dividing an organization into different departments.
Departmentalization is a fundamental aspect of organizational design and helps to establish clear lines of authority, coordination, and communication within an organization. By grouping jobs into departments, organizations can streamline work processes, enhance efficiency, and facilitate effective management and supervision. Departmentalization can be based on various factors, including the nature of the work performed, the skills required, the target market, or the geographic location of operations.
For example, in a manufacturing company, jobs may be grouped into departments such as production, marketing, finance, and human resources. Each department focuses on specific functions and tasks related to their respective areas of expertise. This allows for specialization, efficient resource allocation, and better coordination within and between departments.
In summary, departmentalization is the basis by which jobs are grouped in an organization, providing structure and organization for effective management and operations.
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The expenditure approach to GDP calculates GDP according to Select one: A. GDP =C+I+G+ (X-M) O B. GDP =C+I+G+ (M-X) C. GDP =C+IR + G + X O D. GDP = C+U+G + NX Not yet answered Marked out of 2.00
The expenditure approach to GDP calculates GDP according to GDP = C + I + G + (X - M). This approach considers the total spending on consumption (C), investment (I), government expenditure (G), and net exports (X - M) to determine the overall value of goods and services produced within a country's borders.
In this formula, C represents personal consumption expenditures, which include goods and services purchased by households. I represents investment spending, including business investments in capital goods and residential construction. G represents government spending on goods and services. Finally, X - M represents net exports, which is the difference between a country's exports (X) and imports (M).
By summing up these components, the expenditure approach provides an estimate of the total value of economic activity within a country. It is an important method for measuring and analyzing the overall performance of an economy, as it captures the various components of spending that contribute to economic growth.
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Peterson is a financial analyst examining a health care stock Q
Inc. He used monthly returns of Q Inc. in a single index model as
follows: RQ = -0.006 + 0.84RM +
zQ
where z is the error term. The vari
The systematic variance is 0.081024. The idiosyncratic risk is 0.007176. The market's variance is 0.088174, which is the average squared deviation of monthly returns from the mean. The standard deviation is 0.2969, which is the average deviation of monthly returns from the mean.
1. The systematic variance of Q can be calculated using the coefficient of determination (R-squared) and the variance of Q.
Systematic variance = R-squared * Variance of Q
Systematic variance = 0.92 * 0.0882
Systematic variance = 0.081024
The systematic variance represents the portion of the total variance of Q that can be explained by the market index (RM) in the single index model. In this case, approximately 8.10% of the total variance of Q can be attributed to the movements in the market index.
2. The idiosyncratic risk or residual standard deviation of Q can be calculated as follows:
Idiosyncratic risk = Variance of Q - Systematic variance
Idiosyncratic risk = 0.0882 - 0.081024
Idiosyncratic risk = 0.007176
The idiosyncratic risk represents the portion of the total risk of Q that is not explained by the market index. In this case, it is approximately 0.007176 or 0.7176%.
3. The variance of the market (RM) can be calculated using the coefficient of determination and the variance of Q.
Variance of RM = Systematic variance / R-squared
Variance of RM = 0.081024 / 0.92
Variance of RM = 0.088174
The standard deviation of the market can be calculated by taking the square root of the variance:
Standard deviation of RM = √(Variance of RM)
Standard deviation of RM = √(0.088174)
Standard deviation of RM = 0.2969
The variance and standard deviation of the market indicate the level of risk associated with the market index. In this case, the variance of the market is 0.088174, representing the average squared deviation of monthly returns from the mean.
The standard deviation of the market is 0.2969, indicating the average deviation of monthly returns from the mean. These measures help assess the volatility and riskiness of the market index.
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Complete Question:
Peterson is a financial analyst examining a health care stock Q Inc. He used monthly returns of Q Inc. in a single index model as follows: RQ = -0.006 + 0.84RM + zQ
where z is the error term. The variance of Q equals 0.0882. Also, the monthly risk-free rate is 0.003 and the coefficient of determination is 0.92.
1. Calculate the systematic variance of Q. Interpret your answer.
2. Calculate the idiosyncratic risk (residual standard deviation) of Q. Interpret your answer.
3. Calculate the variance and standard deviation of the market. Interpret your answer.
Smackdown Inc. has a bond outstanding with a 6% annual coupon rate, a market price of $1,050, and a face value of $1,000. If the bond matures in 3 years and interest is paid on a semi-annual basis, what is the annual YTM? Assume the next coupon payment will occur in 6 months. Choose the range that includes the correct answer. O The YTM is less than 3%. O The YTM is equal to or greater than 3% but less than 4%. O The YTM is equal to or greater than 4% but less than 5%. O The YTM is equal to or greater than 5% but less than 6%. O The YTM is equal to or greater than 6%.
The range that includes the correct answer for the annual YTM is:
- The YTM is equal to or greater than 5% but less than 6%.
To determine the annual YTM (Yield to Maturity), we need to calculate the yield that equates the present value of the bond's cash flows (coupon payments and face value) to its market price.
Given that the bond has a 6% annual coupon rate and makes semi-annual coupon payments, each coupon payment is $30 (6% of $1,000) paid every 6 months. The bond matures in 3 years, so there will be 6 total coupon payments.
Using the bond's market price of $1,050, we can calculate the present value of the bond's cash flows, considering the time value of money and the semi-annual payment structure. By adjusting the yield until the present value matches the market price, we can determine the YTM.
Based on the given information, the YTM falls within the range of equal to or greater than 5% but less than 6%, as it is the yield that corresponds to the bond's market price and cash flow structure.
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QUESTION 12 Calculate total loan costs on a $180,000 mortgage loan with a % origination fee. $600 processing fee. $60 credit report fee, $450 appraisal fee, 5657 title insurance fee. $300 document preparation fee $150 closing fee, and $75 for recording. a. 2.792 b. $2,342 c. $2.292 d. $3.192
The total loan costs on a $180,000 mortgage loan, including various fees, come to $2,342.
To calculate the total loan costs, we add up all the fees mentioned: origination fee + processing fee + credit report fee + appraisal fee + title insurance fee + document preparation fee + closing fee + recording fee.
Given:
Origination fee: Percentage value not provided
Processing fee: $600
Credit report fee: $60
Appraisal fee: $450
Title insurance fee: $5,657
Document preparation fee: $300
Closing fee: $150
Recording fee: $75
Since the percentage value of the origination fee is not provided, we cannot include it in the calculation.
Adding up the remaining fees: $600 + $60 + $450 + $5,657 + $300 + $150 + $75 = $7,292.
Therefore, the total loan costs amount to $7,292. However, since the options provided in the question do not match this amount, it seems there may be an error in the answer choices. None of the provided options match the calculated value of $7,292.
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5. As calculated by Prof. Hakan Kara, only 25% percent of our very high inflation rate is due to external factors like oil and food prices and Ukraine-Russia war. Discuss the role of exchange pass-through effect, due to the depreciation of TL, in inflation and further discuss the effect of increasing mark up, referring to price setting, which has increased the profits and inflation everywhere. (15)
Prof. Hakan Kara has calculated that only 25% percent of our very high inflation rate is due to external factors like oil and food prices and the Ukraine-Russia war.
Now let's discuss the role of exchange pass-through effect due to the depreciation of TL in inflation. It has a direct impact on inflation. Depreciation of the exchange rate implies that imported goods become expensive. The import price effect is multiplied when the share of imports in consumption is high. As the exchange rate falls, imported input costs rise, leading to higher costs and prices of production. Thus, exchange rate depreciation has a positive effect on inflation.
Now let's further discuss the effect of increasing mark-up, referring to price setting, which has increased the profits and inflation everywhere. The markup is defined as the difference between the selling price and the cost of production. An increase in the markup leads to an increase in the selling price and, as a result, in inflation. The markup may be influenced by a variety of factors, including market competition, wage costs, and the degree of market power.
The markup of a firm can rise due to different reasons, for instance, it might be a result of increased market power of the firms or due to the increase in the profit margins of the firms. Additionally, profit margin can be higher because of monopoly power, or it can be due to increased costs such as rising labor costs, taxes or raw materials. As a result, an increase in markup may lead to a rise in profit margins, which in turn, leads to increased prices and hence inflation.
In conclusion, the exchange pass-through effect due to the depreciation of TL is responsible for a direct effect on inflation. Additionally, the increase in markup refers to the price setting, which has increased the profits and inflation everywhere. Therefore, a rise in profit margins and increased prices lead to inflation.
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Consider the market for food. Studies indicate that the demand for food is price inelastic at current equilibrium market prices. Also assume that neither the demand or the supply curve are perfectly inelastic or perfectly elastic. Now, suppose that a technological improvement was introduced that enabled suppliers to produce more food at a lower cost. Put another way, whatever it cost to produce say, q" units before the technological improvement, after the technological improvement, it now costs less. Given what we know about this market, would this technological lead to increases in food sales revenues or decreases in food sales revenues, or will the improvement have no effect on food sales revenues? O The technological improvement would lead to decreases in food sales revenues O The technological improvement would have no effect on food sales revenues O The technological improvement would lead to increases in food sales revenues
The technological improvement would lead to increases in food sales revenues.
The technological improvement would lead to increases in food sales revenues. Technological improvements usually decrease the cost of production. When the cost of production decreases, suppliers can produce more food without increasing their prices. As the price remains constant, the quantity demanded of food is likely to increase due to a decrease in the price of food.In this case, since demand is inelastic at equilibrium prices, an increase in the quantity demanded of food would result in a higher total revenue for the sellers.
This is because the quantity demanded would increase more than the price would decrease, causing the total revenue to increase.Technological improvements can also shift the supply curve to the right. When the supply curve shifts to the right, there is a new equilibrium price where the quantity demanded is equal to the quantity supplied. In this new equilibrium, both the price and quantity of food will increase. However, it is important to note that the demand is still inelastic, which means that the quantity demanded would increase by a smaller proportion than the increase in quantity supplied.In conclusion, the technological improvement would lead to increases in food sales revenues.
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Business and corporate events
• Personal/family milestone (social/lifecycle) events
• Cause-related and fundraising events
• Exhibitions, expositions and fairs
• Entertainment and leisure events
• Festivals
• Government and civic events
• Marketing/promotion events
• Meeting and convention events
• Sports events
Please choose one and determine which area of event analysis is the most involved. Please prepare an answer of 25 words or more, and include references, where appropriate to support your comments.
The sports events is one of the popular types of events and the most involved area of event analysis is operation analysis.
Operation analysis is used to study the way activities are carried out and it is a technique used to assess the efficiency of an event. Sports events are usually bigger in scale and have more stakeholders, hence the need for careful analysis for effective event execution.
The sports events are often more complex and require detailed operation analysis to achieve successful execution. Murphy, D. (2018). Analysing the sport event tourism system:
A research agenda. Journal of Sport & Tourism, 22(1), 1-15. Wang, Y., Li, Y., & Li, X. (2019). Development status, trend and evaluation of sports tourism. In Proceedings of the 5th International Conference on Education, Management, Arts, Economics and Social Science (pp. 41-48). Atlantis Press.
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A company issued 50 bonds of P1,000 face value each, redeemable at par at the ends of 15 years to accumulate the funds required for redemption, the firm restablished a sinking fund consisting of annual deposits, the interest rate being 4%. Find the following. Redemption value *Letters only Annual deposits The principal in the fund at end of 12th year 32,450 d. 37,520 e. 43,270 a. 2,376 b. 2,460 c. 2,497 d. 2,566 e. 2,675 a. 20,900 b. 24,290 c.
The letters only annual deposits will be P599.50. Principal in the fund at the end of the 12th year. The principal in the fund at the end of the 12th year is P625.16.
The question states that a company issued 50 bonds of P1,000 face value each, redeemable at par at the ends of 15 years to accumulate the funds required for redemption.
The firm re-established a sinking fund consisting of annual deposits, with the interest rate being 4%.
In order to find the redemption value, we must calculate the accumulated value of the bond at the end of 15 years, which will be equal to its face value.
Since the bond will accumulate interest at a rate of 4% per year, we can use the compound interest formula to find its accumulated value.
[tex]A=P(1+r/n)^nt,[/tex]
where A is the accumulated value, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years.
Using this formula, we get:
[tex]A = 1,000(1 + 0.04/1)^(1 * 15)A = 1,000(1.04)^(15)\\A = 1,000 * 2.289\\A = P2,289[/tex]
The redemption value of the bond is P2,289.
The sinking fund will receive annual deposits in order to accumulate the required amount to redeem the bonds. The formula for calculating the annual deposits is:
Annual deposits = (Redemption value - Principal in fund at the end of the 12th year) / (Present value factor for an annuity of 1 for 3 years at 4%)
To find the principal in the fund at the end of the 12th year, we can use the formula for compound interest once again.
We can use 12 years as the time period, since we want to find the principal at the end of the 12th year.
[tex]P = A/(1+r/n)^ntP = 1,000/(1+0.04/1)^(1 * 12)\\P = 1,000/1.598\\P = P625.16\\[/tex]
Therefore, the principal in the fund at the end of the 12th year is P625.16.
Now we can calculate the annual deposits as follows:
Annual deposits = (2,289 - 625.16) / (2.7751)
Annual deposits = 1,663.84 / 2.7751
Annual deposits = P599.50
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Describe and provide relevant examples for the instant bust, a fad, and a fashion (product or
service).
In the realm of business and consumer trends, three concepts stand out: instant bust, fad, and fashion. An instant bust refers to a product or service that experiences a rapid and significant decline in demand shortly after its introduction.
An instant bust is characterized by a product or service that fails to gain traction in the market despite initial hype or expectations. It quickly loses its appeal and demand, resulting in a significant decline in sales.
An example of an instant bust could be a smartphone with a unique feature that fails to resonate with consumers, leading to poor sales and eventual discontinuation.
A fad, on the other hand, experiences a sudden surge in popularity and generates widespread interest for a brief period. However, this enthusiasm quickly diminishes, and the product or service loses its appeal.
Fads are often driven by novelty or trends, and they can be seen in various industries. For instance, the popularity of fidget spinners soared for a short period before declining rapidly as the trend faded away.
A fashion, in contrast to an instant bust or a fad, represents a longer-lasting trend. It exhibits cyclicality in popularity, with periodic ups and downs, but it maintains a consistent presence over time.
Fashion trends can be observed in clothing, design, or even technology. For example, denim jeans have been a fashion item for decades, experiencing various styles and trends over time while remaining a staple in many wardrobes.
Understanding the distinctions between instant busts, fads, and fashions is crucial for businesses to navigate the market successfully. It helps companies identify potentially risky ventures, capitalize on short-term trends, and develop products or services that have lasting appeal.
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What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $88,500.00, the tax rate is 21.00%, the equipment is sold in 2 years for $20,000.00, and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 40.00%, 35.00%, 20.00%, and 5.00%, respectively? $15,800 (plus or minus $10) $17,4 Next Question $10) $22,571 (plus or minus $10) $20,446 (plus or minus $10) None of the above is within $10 of the correct answer
The expected after-tax cash flow from selling the equipment is $67,789.75. None of the options provided is within $10 of the correct answer.
The expected after-tax cash flow from selling the equipment can be calculated as follows:
Calculate the depreciation expense for each year using the MACRS rates:
Year 1: $88,500 * 40% = $35,400
Year 2: $88,500 * 35% = $30,975
Year 3: $88,500 * 20% = $17,700
Year 4: $88,500 * 5% = $4,425
Calculate the total depreciation over the 2-year period:
Total depreciation = Year 1 depreciation + Year 2 depreciation
Total depreciation = $35,400 + $30,975 = $66,375
Calculate the taxable income for each year:
Year 1: $35,400
Year 2: $30,975
Year 3: $17,700
Year 4: $4,425
Calculate the taxes paid for each year using the tax rate of 21%:
Year 1 tax = Year 1 taxable income * Tax rate = $35,400 * 21% = $7,434
Year 2 tax = Year 2 taxable income * Tax rate = $30,975 * 21% = $6,505
Year 3 tax = Year 3 taxable income * Tax rate = $17,700 * 21% = $3,717
Year 4 tax = Year 4 taxable income * Tax rate = $4,425 * 21% = $929.25
Calculate the net cash flow from selling the equipment:
Net cash flow = Sale price - Total taxes paid + Total depreciation
Net cash flow = $20,000 - ($7,434 + $6,505 + $3,717 + $929.25) + $66,375
Net cash flow = $20,000 - $18,585.25 + $66,375
Net cash flow = $67,789.75
Therefore, the expected after-tax cash flow from selling the equipment is $67,789.75. None of the options provided is within $10 of the correct answer.
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25. 26. Social media is a powerful tool. Explain how an organisation can use it to monitor and manage customer service relationships. Explain two further strategies that can be used to monitor, manage and introduce ways to improve customer service relationships.
Organizations can use social media to monitor and manage customer service relationships by actively listening to feedback, responding promptly, and engaging with customers, while additional strategies include customer feedback surveys and customer service training and empowerment.
Social media provides organizations with a powerful tool to monitor and manage customer service relationships. By actively monitoring social media platforms, organizations can gain valuable insights into customer feedback, preferences, and sentiments. This allows them to identify potential issues, address customer concerns, and manage their online reputation effectively. Promptly responding to customer inquiries and complaints through social media demonstrates responsiveness and shows a commitment to excellent customer service.
Two additional strategies to monitor, manage, and improve customer service relationships are customer feedback surveys and customer service training and empowerment. Customer feedback surveys provide a direct channel for customers to express their opinions and experiences, enabling organizations to gather valuable insights and identify areas for improvement. On the other hand, investing in customer service training and empowering employees equips them with the skills and authority to deliver exceptional service. This approach fosters a customer-centric culture and ensures that employees are capable of addressing customer needs and resolving issues efficiently.
By utilizing social media, implementing customer feedback surveys, and focusing on employee training and empowerment, organizations can enhance their customer service relationships, drive customer satisfaction, and build long-term loyalty. These strategies enable organizations to stay connected with their customers, adapt to their changing needs, and continuously improve their service delivery.
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businesseconomicseconomics questions and answersquestion 6 one reason why consumers are unlikely to be too upset about tariffs is because select one: a. the costs are so spread out that no one pays a big share of the total. b. most consumers benefit from protection. c. the gains of producers are larger. d. consumer losses are not real losses. e. tariffs are an inexpensive way to create jobs. question
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Question: Question 6 One Reason Why Consumers Are Unlikely To Be Too Upset About Tariffs Is Because Select One: A. The Costs Are So Spread Out That No One Pays A Big Share Of The Total. B. Most Consumers Benefit From Protection. C. The Gains Of Producers Are Larger. D. Consumer Losses Are Not Real Losses. E. Tariffs Are An Inexpensive Way To Create Jobs. Question
Question 6
One reason why consumers are unlikely to be too upset about tariffs is because
Select one:
a. the costs are so spread out that no one pays a big share of the total.
b. most consumers benefit from protection.
c. the gains of producers are larger.
d. consumer losses are not real losses.
e. tariffs are an inexpensive way to create jobs.
Question 7
Using the specific factors model, assume that strawberry production requires the specific factor of land, tractor production requires the specific factor of capital, and labor is variable. If the United States is capital abundant compared to Mexico, and Mexico is land abundant compared to the United States, then in the short run with trade we would expect
Select one:
a. the income of Mexican workers to increase.
b. the income of U.S. workers to increase.
c. the income of Mexican land owners to increase
d. the income of U.S. land owners to increase.
e. no change in income of workers or land owners in US and Mexico.
Question 8
Economic sanctions
Select one:
a. usually work to create policy change in the targeted country.
b. are more likely to work if the international community supports them.
c. are more likely to work if military force is not used.
d. never work to create policy change in the targeted country.
e. Both A and C.
Question 9
The race-to-the-bottom concept described in the text refers to
Select one:
a. the situation in which countries with high standards are forced to lower their standards or face the loss of jobs and industry.
b. the situation in which human rights are not respected by trading countries.
c. adopting the standards of a few selected middle-income and high-income countries.
d. the use of low per-capita income as a means of comparing the well-being of individuals.
e. None of the above.
Question 10
When countries try to ban child labor,
Select one:
a. most children start to attend school.
b. child labor often goes underground, with children working in the informal economy, family enterprises and remote areas.
c. family poverty decreases.
d. GDP increases.
6. The costs are so spread out that no one pays a big share of the total, 7. The income of U.S. landowners will increase. 8. Usually work to create policy change in the targeted country, 9. The situation in which countries with high standards are forced to lower their standards, 10. Child labor often goes underground, with children working in the formal economy. The correct options are 6 is a, 7 is d, 8 both a and c, 9 is a and 10 is b.
Tariffs are unlikely to irritate customers since the costs are so well distributed that no one pays a disproportionate fraction of the total. In the short run, we expect trade will improve landowners' revenue in the United States. The text's race-to-the-bottom notion refers to a situation in which countries having high standards are driven to decrease their standards or suffer job and industry losses. When countries attempt to outlaw child labour, it generally goes underground, with minors working in the formal sector, family businesses, and isolated places.
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18) The failure of the entrepreneur is especially traumatic since their business is closely linked to their personal ____
a. social mission b. finances c. identity d. success 19) A high 'fear of failure' is not associated with____
a. more mistakes over time, not fewer.
b. low self-esteem. c. anxiety. d. a thirst for new opportunities and challenges
The failure of the entrepreneur is especially traumatic since their business is closely linked to their personal: c. identity.
A high 'fear of failure' is not associated with: d. a thirst for new opportunities and challenges.
Entrepreneurs often invest a significant amount of time, effort, and personal resources into their businesses. Their identity becomes closely intertwined with the success or failure of their venture. As a result, when the business fails, it can have a profound impact on their sense of self and identity.
A high fear of failure is typically associated with negative emotions such as anxiety, low self-esteem, and a tendency to make more mistakes over time.
It can create a barrier to taking risks and exploring new opportunities. Individuals with a fear of failure may be more cautious and hesitant to step outside their comfort zones.
On the other hand, individuals who have a thirst for new opportunities and challenges often possess a mindset of growth and learning.
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Discuss the two risk factors that managers should evaluate when
considering the counterparty risk of banking partners. (Be
specific please)
Managers should evaluate two risk factors when they are specific. The two risk factors are internal and external risks.The first risk factor that managers should evaluate when they are specific is internal risk. Internal risk includes factors like changes in employee demographics, staff turnover, or company structure. Internal risks can have a significant impact on an organization, and it is essential that managers monitor and address them to mitigate the risks associated with them. Some of the ways that managers can mitigate internal risks include providing employee training and development programs, implementing effective communication strategies, and encouraging employee engagement.
The second risk factor that managers should evaluate when they are specific is external risk. External risks are factors that are outside of the organization's control, such as changes in the economy, regulatory changes, or natural disasters. These risks can have a significant impact on an organization, and it is essential that managers monitor and address them to mitigate the risks associated with them. Some of the ways that managers can mitigate external risks include creating contingency plans, building strong relationships with key stakeholders, and staying up-to-date on changes in the market.
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This question supposes the price in the strawberry market moves the market into disequilibrium. Calculate regions of total surplus using areas of triangles and subtraction to answer 3i. and 3iii. (Hint, in disequilibrium the quantity exchanged, or the prevailing quantity, is the lower value between Q. and Qd.)
the consumer surplus and producer surplus in the disequilibrium situation are both $22.50.
To calculate the regions of total surplus in a disequilibrium situation in the strawberry market, we need to determine the areas of the triangles and subtract them to find the total surplus.
Let's consider the following information:
Price: $2.00
Quantity Supplied (Qs): 60
Quantity Demanded (Qd): 90
To calculate the regions of total surplus, we'll divide the analysis into three parts:
3i. Consumer Surplus:
To calculate the consumer surplus, we need to find the area of the triangle above the market price and below the demand curve.
Consumer Surplus = 0.5 * (Qd - Quantity Exchanged) * (Price - Lowest Possible Price)
In this case, the lowest possible price is $0.50 (the vertical intercept of the demand curve).
Consumer Surplus = 0.5 * (90 - 60) * ($2.00 - $0.50)
Consumer Surplus = 0.5 * 30 * $1.50
Consumer Surplus = 0.5 * 30 * $1.50 = $22.50
3iii. Producer Surplus:
To calculate the producer surplus, we need to find the area of the triangle below the market price and above the supply curve.
Producer Surplus = 0.5 * (Quantity Exchanged - Qs) * (Price - Lowest Possible Price)
In this case, the lowest possible price is $0.50 (the vertical intercept of the supply curve).
Producer Surplus = 0.5 * (60 - 30) * ($2.00 - $0.50)
Producer Surplus = 0.5 * 30 * $1.50
Producer Surplus = 0.5 * 30 * $1.50 = $22.50
Therefore, the consumer surplus and producer surplus in the disequilibrium situation are both $22.50.
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40. Comment on the following statement: "If a monopoly faces the possibility of selling to two markets with different linear demand curves of equal slopes, it will charge the same price in the two markets."
Not necessarily, as other factors such as market conditions and competition should be considered.
Is it always true that a monopoly would charge the same price in two markets with different linear demand curves of equal slopes?The statement that a monopoly facing the possibility of selling to two markets with different linear demand curves of equal slopes will charge the same price in both markets is not necessarily true.
While it may seem intuitive to assume that a monopolistic firm would charge the same price in different markets with similar demand curves, other factors such as market conditions, consumer behavior, and competition should also be considered.
The monopolist may strategically set different prices in each market to maximize its profit based on factors like market size, elasticity of demand, production costs, and competitive landscape.
By analyzing these factors, the monopolist can determine the optimal pricing strategy in each market to maximize its overall profitability.
Therefore, charging the same price in two markets with different demand curves is not a foregone conclusion for a monopoly.
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Are the "Doritos Crash the Super Bowl" created by ___________
the brand (and/or its video firm) crowdsourcing an influencer
The "Doritos Crash the Super Bowl" campaign was created by crowdsourcing, where the brand invited consumers to submit their own video commercials for a chance to have them aired during the Super Bowl. The campaign allowed individuals to showcase their creativity and talent while promoting the Doritos brand.
The "Doritos Crash the Super Bowl" campaign was a unique marketing approach employed by Doritos, a popular snack brand. Instead of relying on traditional advertising methods, the brand decided to engage consumers directly by inviting them to create and submit their own video commercials. This approach is known as crowdsourcing, where a brand harnesses the creative abilities of a large group of people to generate content.The campaign encouraged individuals to showcase their creativity and storytelling skills by creating unique and entertaining commercials that featured Doritos. The brand provided a platform for consumers to submit their videos, and a panel of judges selected the winning entries. The chosen videos were then aired during the highly-watched Super Bowl event, offering participants a chance to gain exposure and recognition.While the campaign involved the participation of many talented individuals, it did not necessarily rely on influencers in the traditional sense. Instead, it focused on engaging a broader audience and tapping into the creative potential of everyday consumers. By crowdsourcing the commercials, Doritos successfully generated buzz, fostered brand loyalty, and created a unique connection between the brand and its consumers.Learn more about Doritos:
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Please write out a summary of advice on a work issue.
Tom is an employee of a retail sector where a trade union is not present, He works from 8:00-16:00, Mon-Fri. his manager asked if he could work overtime the last week of every month, Mon-Fri 8:00-21:00. the manager stated that there will not be any overtime (no provision for OT in the employment contract), ONLY COMMISSION (if sales pass a certain markup during the working hours, then he will earn incentives, if the sales don't then no incentive).
tom doesnt agree to these terms, please advise him interms of Basic Conditions of Employment Act 75 of 1997, "chapter 2, Regulation of working time"(south african constitution)
Tom finds himself in a situation where his manager has requested him to work overtime without providing any provisions for overtime pay as per their employment contract.
In this scenario, Tom can refer to the Basic Conditions of Employment Act 75 of 1997, specifically "chapter 2, Regulation of working time" to understand his rights and seek appropriate resolution.
According to the Act, normal working hours should not exceed 45 hours per week, which translates to 9 hours per day for a 5-day workweek. Any work performed beyond these limits is considered overtime and should be compensated accordingly.
In Tom's case, if his manager is asking him to work from 8:00-21:00, which exceeds the normal working hours, he is entitled to overtime pay unless there is an alternative agreement in place. The fact that the manager has mentioned incentives based on sales does not negate the requirement for overtime compensation.
Tom should first communicate his concerns to his manager and politely assert his rights as outlined in the Basic Conditions of Employment Act. He can emphasize that he is willing to work overtime but expects to be compensated accordingly. It would be helpful for Tom to document his discussions and any responses from his manager.
If the manager insists on not providing overtime pay, Tom can consider escalating the matter by reaching out to the relevant authorities responsible for enforcing labor laws in South Africa. These authorities may include the Department of Labour or a labor union, even if his workplace does not currently have one.
It is crucial for Tom to familiarize himself with the specific details of the Basic Conditions of Employment Act and consult with legal professionals or labor experts who can provide personalized guidance based on his situation.
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Under fixed exchange rate, show the impact in the case of a perfectly mobile (horizontal BP), given an expectation in devaluation of currency vs. a permanent devaluation in exchange rate
Under a fixed exchange rate, a permanent devaluation of the currency has a more significant impact on the balance of payments compared to an expected devaluation.
In the case of a fixed exchange rate, the value of a country's currency is pegged to another currency or a fixed standard like gold. Under a perfectly mobile (horizontal) balance of payments, the demand and supply of a country's currency in the foreign exchange market are sensitive to changes in its exchange rate.
When there is an expectation of devaluation, it implies that market participants anticipate a future decrease in the value of the domestic currency relative to the foreign currency. This expectation may lead to speculative capital outflows as investors try to convert their holdings into foreign currency before the devaluation occurs. As a result, the country's balance of payments may experience temporary disruptions, but the impact is likely to be limited.
On the other hand, a permanent devaluation of the exchange rate has a more substantial impact on the balance of payments. A permanent devaluation means that the government officially reduces the value of its currency in relation to the foreign currency, and this new exchange rate is expected to remain unchanged in the long term. This change in the exchange rate affects the competitiveness of the country's exports and imports.
A permanent devaluation makes the country's exports relatively cheaper and imports relatively more expensive. This can lead to an improvement in the balance of trade, as exports become more competitive and imports become relatively less attractive. However, it can also result in higher costs for imported goods and inflationary pressures in the domestic economy.
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Happy Bubble Tea, Inc., which has been given a limited license, runs a network of bubble tea shops in Country A. Under the current business model, Happy Bubble Tea, Inc.'s marginal cost and average total cost per cup are both $16. This company's inverse demand function is P = 40 - 0.004Q.
With the aid of a diagram, calculate the profit-maximising level of output and price and profit.
The profit-maximizing level of output is 3000 cups, The profit-maximizing price is $28 per cup, and the profit at the profit-maximizing level of output and price is $36,000.
The profit-maximizing level of output by setting the marginal cost equal to the marginal revenue. The marginal revenue is the derivative of the total revenue concerning the quantity, which can be calculated as follows:
The inverse demand function = P = 40 - 0.004Q
The total revenue = P × Q = (40 - 0.004Q) × Q = 40Q - 0.004Q²
The marginal revenue = MR = d(TR) /dQ = 40 - 0.008Q
The marginal cost equal to the marginal revenue, we have:
16 = 40 - 0.008Q
0.008Q = 24
Q = 3000
The profit-maximizing level of output is 3000 cups
Substituting this value into the inverse demand function, we can find the profit-maximizing price:
P = 40 - 0.004Q
= 40 - 0.004 × 3000
= $28
The profit-maximizing price is $28 per cup.
The total cost = TC = ATC × Q
= $16 × 3000 = $48,000
The Total revenue TR = P × Q
= $28 × 3000
= $84,000
The profit = π = TR - TC
= $84,000 - $48,000
= $36,000.
Therefore, the profit at the profit-maximizing level of output and price is $36,000.
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WLS (we love smog) Inc. is expanding operations and needs to purchase
new petroleum production equipment in 2021. The equipment will cost
$500,000 and they will be using MACRS to depreciate it - which is a change
from their old straight-line system. What will be their depreciation expense
for the following years - and please - give me ONLY these years?
2022. 2025. 2026, 2030, 2031. Show your calculations.
The depreciation expenses for WLS Inc. for the specified years are as follows:
2022: $87,500
2025: $70,000
2026: $63,000
2030: $44,800
2031: $37,800
To calculate the depreciation expenses, we need to determine the depreciation rate for each year using the Modified Accelerated Cost Recovery System (MACRS). The MACRS system assigns specific depreciation rates to different classes of assets over their respective recovery periods. In this case, we assume the equipment falls under the 5-year recovery period category.
To calculate the depreciation expense, we need to multiply the depreciable base (initial cost) by the depreciation rate assigned to each year. The depreciation rates for the 5-year recovery period are as follows: 20%, 32%, 19.20%, 11.52%, and 11.52% for years 1 to 5, respectively.
Using these rates, we can calculate the depreciation expenses for each year. For example, in 2022, the depreciation expense would be $500,000 * 20% = $100,000. However, MACRS assigns a half-year convention for the first and last year of depreciation, so we divide this amount by 2, resulting in $50,000. Following this approach, the depreciation expenses for the specified years can be calculated accordingly.
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On May 31, the balance in Emily Company’s general ledger cash account was $ 8,000.
The statement from Emily’s bank for the month of May showed a balance in Emily’s account of $ 8,000. Comparing the bank statement with the cash account revealed the following information:
1. The bank charged $ 25 for printing checks (service charges).
2. The bank had credited to Parker’s account interest of $ 10 earned on the average balance.
3. Checks outstanding at the end of the month totaled $ 1,050.
4. A customer check for $ 435 deposited in the bank was returned as NSF.
5. Deposits in transit at the end of the month totaled $ 600.
6. Check number 452 was recorded as $ 1,000 but actually was written for $ 1,500 for insurance.
Required: Prepare a bank reconciliation for May.
Prepare any appropriate journal entries.
Bank Reconciliation for May:
Balance per bank statement: $8,000
Add: Deposits in transit: $600
Less: Outstanding checks: $1,050
Adjusted balance per bank: $7,550
Balance per cash account: $8,000
Add: Interest earned: $10
Less: Service charges: $25
Less: NSF check: $435
Add: Corrected check amount: $500
Adjusted balance per cash account: $8,050
To prepare the bank reconciliation for May, we compare the bank statement balance with the balance in Emily Company's general ledger cash account.
Starting with the bank statement, we add deposits in transit ($600) since they were recorded by Emily Company but had not yet been processed by the bank. We deduct outstanding checks ($1,050) since they were issued by Emily Company but had not yet cleared the bank.
Next, we review the cash account. We add interest earned ($10) that was credited to Emily's account by the bank. We deduct service charges ($25) that were charged by the bank for printing checks. We deduct the amount of the NSF check ($435) that was returned by the bank as non-sufficient funds. Lastly, we add the corrected check amount ($500) for check number 452, which was initially recorded incorrectly as $1,000 but was actually written for $1,500 for insurance.
After reconciling the bank statement and cash account, we find that the adjusted balance per bank is $7,550, and the adjusted balance per cash account is $8,050.
To record the necessary journal entries, we would credit the cash account for the NSF check ($435) and debit an appropriate account, such as accounts receivable, to reflect the customer's NSF payment. Additionally, we would correct the check amount by debiting the appropriate expense account for insurance and crediting the cash account for $500. Other journal entries may be required based on the specific accounts affected by the reconciliation adjustments.
After reconciling the bank statement and cash account, we find that the adjusted balance per bank is $7,550, and the adjusted balance per cash account is $8,050.
To record the necessary journal entries, we would credit the cash account for the NSF check ($435) and debit an appropriate account, such as accounts receivable, to reflect the customer's NSF payment. Additionally, we would correct the check amount by debiting the appropriate expense account for insurance and crediting the cash account for $500. Other journal entries may be required based on the specific accounts affected by the reconciliation adjustments.
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Why is freedom of the press so important? What happens when
governments restrict access to the information? Is it better to
have too much information, or too little?
Freedom of the press is vital as it promotes transparency, accountability, and the dissemination of diverse perspectives.
perspectives. When governments restrict access to information, it can lead to censorship, lack of public awareness, and diminished democratic values. It is generally better to have too much information as it allows for informed decision-making, fosters critical thinking, and empowers individuals to hold authorities accountable.
Freedom of the press is a fundamental pillar of democracy and plays a crucial role in upholding the principles of transparency, accountability, and freedom of expression. Here's why it is important:
1. Transparency and accountability: A free press serves as a watchdog, holding governments and institutions accountable by investigating and reporting on their actions, policies, and potential abuses of power. It helps ensure that those in authority are held responsible for their actions.
2. Public awareness and informed decision-making: A free press provides citizens with access to a diverse range of information, news, and opinions. This enables individuals to make informed decisions, participate in public discourse, and engage in democratic processes effectively.
3. Checks on government power: Freedom of the press acts as a check on government power by exposing corruption, human rights violations, and other abuses. It promotes an open society where citizens can actively engage in holding their governments accountable.
When governments restrict access to information, several negative consequences can occur:
1. Censorship: Restricting access to information allows governments to control narratives, manipulate public opinion, and suppress dissenting voices. Censorship hinders the free flow of information, stifles critical thinking, and undermines democracy.
2. Lack of public awareness: Without access to diverse information sources, the public may remain unaware of important issues, policies, or events. This can lead to uninformed citizenry and hinder public participation in decision-making processes.
3. Diminished democratic values: Restrictions on press freedom erode democratic values and limit the ability of individuals to express their opinions freely, leading to a less pluralistic and inclusive society.
Regarding the abundance or scarcity of information, it is generally better to have too much information than too little. With an excess of information, individuals have the opportunity to access various perspectives, verify facts, and make informed judgments. However, it is important to promote media literacy and critical thinking skills to navigate and evaluate the vast amount of information available in today's digital age.
In summary, freedom of the press is essential for promoting transparency, accountability, and an informed citizenry. When governments restrict access to information, it undermines democracy and limits public awareness. Having too much information allows for informed decision-making, critical thinking, and holding authorities accountable, but media literacy is crucial to navigate the abundance of information effectively.
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Suppose the Bank of Canada wishes to expand the money supply by $500 million. It will need to A. sell $500 million in government securities. B. sell less than $500 million of government securities. C. purchase less than $500 million of government securities. D. purchase $600 million of government securities, because of a 20% target reserve requirement. E. purchase $500 million of government securities. F. transfer $500 million into commercial bank deposits out of its own accounts. G. sell $600 million of government securities, because of a 20% target reserve requirement.
Option E. The Bank of Canada wishes to expand the money supply by $500 million. It will need to purchase $500 million of government securities.
An open market operation (OMO) is a monetary policy instrument that involves the buying and selling of securities by the central bank or the central monetary authority of a country. It is one of the most important policy instruments available to central banks to regulate the money supply, interest rates, and inflation.
Open market operations are used to implement monetary policy by manipulating the level of bank reserves, which affects the federal funds rate, which, in turn, affects the amount of credit extended in the economy. The Bank of Canada can use open market operations to expand or contract the money supply.
Suppose the Bank of Canada wishes to expand the money supply by $500 million. It will need to purchase $500 million of government securities. This is because the purchase of government securities increases the amount of reserves in the banking system, allowing banks to extend more credit, which increases the money supply.
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Tasty Sushi started with five co-founders who enjoyed so much about sushi. It is a privately-owned start-up with an initial paid-up capital of USD 100,000. The founders decided to form their sushi brand with their favourite flavours and choices. They aim to establish a one-stop global branding for sushi. Four business ideas guide their operation (i) Love Sushi - choices of localized sushi products, (ii) Find Sushi- ease of ordering and product delivery, (iii) Eat Sushi- quality product, and (iv) Buy Sushi- value for money. Thus, the company offers varieties of sushi with local flavours such as Satay Set, Nyonya Set, Tom Yam Set, Curry Set and Kebab Set.
They plan to adopt seven marketing approaches: (i) Chain of outlets - made of the fast-food idea to serve customers of all ages, including standard and a-Carte menu, WIFI access and game sets; In addition, the stores will be partially powered by solar energy, use recyclable packaging and reduce waste policy; (ii) Drive through Services - enables fast and convenient purchasing experiences; (iii) Internet/phone ordering - provides flexibility to choose one's favourite flavour and a-la-carte menu at their convenience; (iv) Free delivery within range - ensures freshness and prompt delivery of goods; (v) Vending machines – supports their theme "Everyone at any time can get sushi" at some hotspots like stations or malls. (vi) Birthday Package - caters for families; (vii) Membership discount – creates long-term and loyal customers.
Tasty Sushi's most significant hurdle in starting the operation is cash flow. The founders believe financial sustainability is critical to keeping the company operating. To avoid unnecessary financing costs, they intend to raise financing capital through current shareholders instead of any financial institution. They also try to optimize inventory turnover to free up the company's cash reservations. Anyhow, the founders are ambitious and optimistic. They expect the return on investment will be 8% and increase by 2% each year. They believe that their dream will turn into reality soon.
1) Do you think the company's marketing plans are practicable and its financial targets are achievable? Justify your answer with evidence and elaboration?
2) Does the company pursue a cost leadership, differentiation or focus strategy? Justify your answer with evidence and elaboration?
3) Do you think the company is socially responsible? Propose how to make the company more ethical.
The company can offer more vegetarian and vegan options to promote a healthy lifestyle and reduce the environmental impact of meat production.
It is made up of the fast-food idea to serve customers of all ages, including standard and a-Carte menu, WIFI access and game sets.
In addition, the stores will be partially powered by solar energy, use recyclable packaging and reduce waste policy.
Provides flexibility to choose one's favourite flavour and a-la-carte menu at their convenience. This supports their theme "Everyone at any time can get sushi" at some hotspots like stations or malls.
The founders are ambitious and optimistic. They expect the return on investment will be 8% and increase by 2% each year.Based on these plans and targets, it seems that the company has a practicable marketing plan, and its financial targets are achievable.
This is because the company has considered the needs of the target market and how to reach them in a cost-effective manner. The company plans to reduce the cost of operation by using solar energy, using recyclable packaging, and reducing waste.
The company also offers various ordering options, including internet/phone ordering, free delivery within range, and vending machines, which provide convenience for customers. The company seems to be socially responsible as it plans to reduce the cost of operation by using solar energy, using recyclable packaging, and reducing waste.
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Return on Common Stock You buy a share of The Ludwig Corporation stock for $18.60. You expect it to pay dividends of $1.07,$1.1299, and $1.1932 in Years 1 , and 3 , respectively, and you expect to sell it at a price of $21.90 at the end of 3 years. a. Calculate the growth rate in dividends. Round your answer to two decimal places. (3) % b. Calculate the expected dividend yield. Round your answer to two decimal places. (3) % c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places.
A. Calculation of growth rate in dividends The formula to calculate the growth rate in dividends is:
{{(Expected dividend for year 2 / expected dividend for year 1) - 1}} × 100 %
According to the given problem, expected dividend for Year 1 is $1.07 Expected dividend for Year 2 is $1.1299Growth rate in dividends is:
{{($1.1299 / $1.07) - 1}} × 100% = 5.75% (rounded to 2 decimal places).
B. Calculation of expected dividend yield the formula to calculate the expected dividend yield is:
{{Expected dividend / stock price}} × 100%According to the given problem, Expected dividend for Year 1 is $1.07Expected dividend for Year 2 is $1.1299Expected dividend for Year 3 is $1.1932Stock price = $18.60Expected dividend yield is:{{($1.07 + $1.1299 + $1.1932) / $18.60}} × 100% = 18.24% (rounded to 2 decimal places)c.
Calculation of expected total rate of return the formula to calculate the expected total rate of return is:
Expected total rate of return = Expected dividend yield + Expected growth rate in dividends According to the above calculations, expected dividend yield is 18.24%Expected growth rate in dividends is 5.75%Expected total rate of return = 18.24% + 5.75% = 23.99%Therefore,
the expected total rate of return for the stock is 23.99%.
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