Federal Supplement citation :137 F. Supp. 2d 1054 (S.D. Ohio 2001).
United States District Court:The United States District Court for the Southern District of Ohio rendered the decision.
Key
The case may be found under the following key numbers:
42 U.S.C. § 2000e, et seq. (Title VII of the Civil Rights Act of 1964)
42 U.S.C. § 1981(a) (Section 1981 of the Civil Rights Act of 1964)
28 U.S.C. § 1343 (Civil Rights Remedies for Violations of Federal Law)
The Federal Supplement citation is a unique identifier for a case that has been decided by a United States district court. It is a combination of the volume number of the Federal Supplement, the page number on which the case begins, and the year in which the decision was rendered. In this case, the Federal Supplement citation is 137 F. Supp. 2d 1054, which means that the case begins on page 1054 of volume 137 of the Federal Supplement, which was published in 2001.
The United States District Court for the Southern District of Ohio is one of the 94 federal district courts in the United States. It is responsible for hearing civil and criminal cases that arise in the southern part of the state of Ohio.
The key numbers are a system used to categorize legal cases. They are assigned by the West Publishing Company, which publishes the Federal Supplement and other legal resources. The key numbers for Adams v. Noble are the key numbers for Title VII of the Civil Rights Act of 1964, Section 1981 of the Civil Rights Act of 1964, and the Civil Rights Remedies for Violations of Federal Law. These key numbers can be used to find the case in legal research databases.
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Nathan would like to study finance and has come to you asking the following questions. (10 Marks). - Describe the similarities and differences between overconfidence and overoptimism. (2.5 Marks). - How might the framing effect impact a company conducting market research? (2.5 Marks). - What are heuristics, and why might they lead to incorrect decisions? (2.5 Marks). - Why does the existence of cognitive error not necessarily make the market inefficient? (2.5 Marks).
1. Overconfidence and overoptimism both involve biases in decision-making. Overconfidence relates to excessive confidence in one's abilities, while overoptimism involves excessive optimism about future outcomes.
2. The framing effect can influence market research by shaping consumer responses to surveys or questionnaires.
3. Heuristics are mental shortcuts that aid decision-making but can lead to incorrect decisions due to biases.
4. Cognitive errors don't necessarily make markets inefficient. While they can cause mispricing, the collective actions of investors tend to correct these errors over time, contributing to market efficiency.
1. Overconfidence and overoptimism have similarities and differences.
Both involve having an overly positive perception of oneself or a situation. However, overconfidence specifically refers to an individual's belief in their abilities or knowledge exceeding reality, while overoptimism relates to having excessively positive expectations for future outcomes.
2. The framing effect can impact a company conducting market research by influencing the way customers perceive information. It suggests that the way information is presented or "framed" can significantly impact people's decision-making. For example, if a company presents a product as having a 90% success rate, it may be more appealing than presenting it as having a 10% failure rate, even though the information is the same.
3. Heuristics are mental shortcuts or rules of thumb that people use to make decisions quickly. They can lead to incorrect decisions because they often rely on simplified reasoning and may ignore relevant information or alternative options. These shortcuts can be useful in saving time and effort, but they can also lead to biases and errors in judgment.
4. The existence of cognitive errors does not necessarily make the market inefficient because markets are influenced by a wide range of factors, including supply and demand, competition, and market efficiency.
Cognitive errors may affect individual decision-making, but in an efficient market, these errors would be balanced out by the decisions of other market participants, leading to an overall efficient allocation of resources.
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Consider the following per-share financials from annual reports of some company. All
amounts are provided in per share value. Also assume that the RIV model is an appropriate
model for valuing the stock of this company.
Assume that the required return on equity capital is 10%, and that you paid $218 per share
for buying the stock of this company at the beginning of 2020. Also assume that the residual
earnings beyond 2022 are zero.
2019 2020 2021 2022
End of year book value of equity 198 227 231 251
End of year net dividend 14 15 12 15
Considering that you are now at the financial year-end of 2022 and have the benefit of
hindsight knowing the information provided just above. calculate by how much
you may have overpaid or underpaid at the beginning of 2020 when you purchased this
stock. Round all calculations to the nearest second decimal point.
The calculation shows that you may have overpaid by $159 per share when you purchased the stock at the beginning of 2020.
To calculate whether you overpaid or underpaid for the stock at the beginning of 2020, we need to determine the intrinsic value of the stock using the Residual Income Valuation (RIV) model.
The formula for the intrinsic value of a stock using the RIV model is as follows:
Intrinsic Value = Book Value of Equity + Present Value of Future Residual Earnings
The present value of future residual earnings can be calculated as:
Present Value of Future Residual Earnings = Net Dividend / (Required Return on Equity Capital - Growth Rate)
Let's calculate the intrinsic value for each year:
Year 2019:
Intrinsic Value 2019 = 198 + (14 / (0.10 - 0)) = 198 + 140 = 338
Year 2020:
Intrinsic Value 2020 = 227 + (15 / (0.10 - 0)) = 227 + 150 = 377
Year 2021:
Intrinsic Value 2021 = 231 + (12 / (0.10 - 0)) = 231 + 120 = 351
Year 2022:
Intrinsic Value 2022 = 251 + (15 / (0.10 - 0)) = 251 + 150 = 401
Now, let's calculate the difference between the intrinsic value and the price paid at the beginning of 2020:
Difference = Intrinsic Value 2020 - Price Paid 2020
Difference = 377 - 218 = 159
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Write a review report based on this article: "Determining market concentration Romualdas Ginevičius & Stasys Čirba"
Requirements:
1) Make glossary and mention the definitions/formulas of all the indices which are used in the article.
2) Write review for the article which must have study location, time frame, data sources, methodology, results and conclusion.
1) Glossary: The glossary provides definitions and formulas for important indices used in the article, including market concentration, concentration ratio, Herfindahl-Hirschman Index (HHI), and four-firm concentration ratio.
2) Study Location: The research is conducted in the field of economics, with a focus on determining market concentration.
Time Frame
Data Sources
Methodology
Results
Conclusion
Glossary of Terms and Indices:
a) Market Concentration: A measure of the extent to which a market is dominated by a few large firms.
b) Concentration Ratio: The percentage of market share held by the largest firms in the market.
c) Herfindahl-Hirschman Index (HHI): A commonly used measure of market concentration calculated by summing the squares of the market shares of all firms in the market.
d) Four-Firm Concentration Ratio: The percentage of market share held by the four largest firms in the market.
Review:
a) Study Location: The research was conducted in the field of economics and focuses on determining market concentration.
b) Time Frame: The article does not explicitly mention a specific time frame for the study. However, it is likely based on a specific period during which market data was collected and analyzed.
c) Data Sources: The authors utilize publicly available data sources, such as market reports, financial statements, and industry databases, to gather information on market shares and relevant variables.
d) Methodology: The study employs quantitative methods to assess market concentration. The authors calculate various market concentration indices, including the Concentration Ratio and the Herfindahl-Hirschman Index, using the collected data.
e) Results: The authors present the results of their analysis, including the values of the concentration indices for the studied market. These results provide insights into the level of market concentration and the dominance of particular firms within the market.
f) Conclusion: Based on their findings, the authors draw conclusions regarding the market concentration in the analyzed industry. They may discuss the implications of high or low concentration levels on market dynamics, competition, and potential antitrust concerns.
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Pfizer has acquired Array Biopharma in a strategic positioning move to strengthen their innovative biopharmaceutical business. This merger is expected to accelerate its growth, long term. Array’s Boulder Colorado research unit will help to complement Pfizer's own research efforts. The total enterprise value of the acquisition of $11.4 Billion.
For pfizer this acquisition is beneficial to the strategy on the intellectual property that array owns and that will now be Pfizer's property. Strengthening and widening the scope of Pfizer will help their profitability and their ability to secure more productive research. Since Pfizer focuses on the Individuals drugs and Array’s most profitable market is discovery and the development of small molecule drugs, bringing them together will help to secure the majority in the market. Pfizer is thinking about the long term growth and future with the ability to create and maintain the longevity they created during the Covid-19 pandemic. This is an adaptive Strategic move that will help to further their innovation. Pfizer is an innovative company and looking to the future, the need will shift and they are preparing for the change with the acquisition.
The values of Pfizer will not change as they are both in the healthcare space. The changes to the company will come from the angle at which they are innovating. Array is a small molecule, creating a new space for Pfizer to grow for the future. I think that many people within Pfizer will be happy with the purchase. Some of the employees of Array will lose their job and with the acquisition of companies it never goes as planned but as big as Pfizer is and how many companies they have already acquired in their history I think this will be as smooth as possible. Personally I am not a fan of the acquisition. I do not believe that pharmaceutical companies should be so big. I believe one of the problems that we have in the US is that companies regulate processes and hurt the consumer. The purchase is too recent to measure the satisfaction of the companies and their feelings
Pfizer has acquired Array Biopharma to strengthen their innovative biopharmaceutical business. This acquisition is beneficial to the strategy on the intellectual property that array owns and that will now be Pfizer's property. The total enterprise value of the acquisition of $11.4 Billion.
Pfizer has acquired Array Biopharma to strengthen their innovative biopharmaceutical business. This acquisition is beneficial to the strategy on the intellectual property that array owns and that will now be Pfizer's property. The total enterprise value of the acquisition of $11.4 Billion. For Pfizer, bringing together both companies will help secure the majority in the market since Pfizer focuses on individual drugs and Array's most profitable market is the discovery and development of small molecule drugs. Strengthening and widening the scope of Pfizer will help their profitability and their ability to secure more productive research. Pfizer is thinking about long-term growth and the future with the ability to create and maintain the longevity they created during the Covid-19 pandemic. This acquisition is an adaptive strategic move that will help further their innovation. The values of Pfizer will not change as they are both in the healthcare space.
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Suppose the equation describing one persons demand for a product is P = 100 - 0.2Q, while the equation for the second person is P = 50 - 0.2Q. What will be the demand equation for both persons? Illustrate graphically the demand curve for both persons.
The demand equation for both persons combined will be P = 150 - 0.4Q. To find the demand equation for both persons, we add up the individual demand equations.
First person's demand equation: P = 100 - 0.2Q
Second person's demand equation: P = 50 - 0.2Q
Adding these equations together, we get:
P + P = (100 + 50) - (0.2Q + 0.2Q)
2P = 150 - 0.4Q
Dividing both sides by 2, we have:
P = 75 - 0.2Q
So, the demand equation for both persons combined is P = 150 - 0.4Q.
To illustrate graphically, we can plot the demand curves for both persons on a graph. On the vertical axis, we have price (P), and on the horizontal axis, we have quantity demanded (Q).
The first person's demand curve is represented by the equation P = 100 - 0.2Q, and the second person's demand curve is represented by P = 50 - 0.2Q.
When we combine the demand equations, we get P = 150 - 0.4Q, which represents the combined demand curve for both persons.
By plotting this equation on the graph, we can visualize the demand curve for both persons, showing the relationship between price and quantity demanded.
The demand equation for both persons combined is P = 150 - 0.4Q. Graphically, the demand curve for both persons will show the relationship between price (P) and quantity demanded (Q) based on the combined demand equations.
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On January 1, 2020, Lizzo Construction sold $750,000 of 6% bonds to Swift Enterprise. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity, the market yield was 8%. Interest is paid semiannually on June 30 and December 31. Swift Enterprise purchased the bonds as an investment and plans to hold the bonds for approximately 2 years. The fair value of the bonds at 12/31/20 was $850,000. Swift's fiscal year end is December 31 and 2020 was its first year of business. Required: 1. Prepare the fair value adjusting entry for Swift Enterprise as of 12/31/20. Show your work. 2. Show or describe exactly and specifically what will appear on the Balance Sheet of Swift Enterprise as of 12/31/20, related to these bonds. 3. Show or describe exactly and specifically what will appear on the Income Statement of Swift Enterprise for the year ending 12/31/20.
The fair value adjusting entry increases Bond Investment & Fair Value Adjustment by $100,000. On Balance Sheet will show Bond Investment and Fair Value Adjustment. The Income Statement will reflect an increase in Fair Value Adjustment.
1. The fair value adjusting entry for Swift Enterprise as of 12/31/20 would be as follows:
Debit: Bond Investment (current asset) - Increase by ($850,000 - $750,000) = $100,000
Credit: Fair Value Adjustment (income) - Increase by $100,000
2. On the Balance Sheet of Swift Enterprise as of 12/31/20, the following would appear related to these bonds:
Bond Investment (current asset) - The initial investment of $750,000
Fair Value Adjustment (income) - The fair value adjustment of $100,000
3. On the Income Statement of Swift Enterprise for the year ending 12/31/20, the following would appear:
Fair Value Adjustment (income) - The increase of $100,000 from the fair value adjustment entry. This would be included in the income statement as a separate line item, reflecting the unrealized gain on the bond investment.
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Mercer Corp, has 10 milion shares outstanding and $109 milion worth of debt outstanding. Ms current shate price is $62. Mercer's equity cost of capial is 8.5%. Mercer has just announced that it w awe $368 million worth of debt, it will use the proceeds trom this debt to pay of its existing debt, and use the remaining $259milon to pay an immediate dividend. Assume perfect capital markets: a. Estimate Mercer's share price isst aher the recapitalization is announced, but before the fransaction occurs. b. Estinate Mercer's share price at the conclusion of the transaction. (Hinc, Use the mant value baiance sheet.) c. Suppose Morcer's existing debt was risktree with a 4.68% expected return and its new debt is risky with a 5.15% expected return. Estimate Mercer's equily cost of capital after the transaction. 2. Estimste Mercer's share prich just aher the recapitalaztion is amounced, but before the transaction occurs. Mercer's share pnce just ahor the recaptaization is announced, but belore the transaction octurs is $62. (Found to the neacest dolar.) b. Estmate Mercer's share price at the concluion of the transacion. (Hint: Use the market value balance sheet.) Mercer's ahare price at the conclusion of the transaction is $361. (Roand to the nearest cent) c. Suppese Mercer's existing debt was risk free weth a 4 6ax expected return, and as new debt is risky with a 5.15% 6xpected return. Estrmate Merceer's equity cost of capital after she transaction. Mertert equaf cott of caplal after the transaction is . (Round to two decirtal places.)
Mercer's equity cost of capital after the transaction is approximately 4.8025% and the debt cost of capital is approximately 4.265775%.
a. To estimate Mercer's share price after the recapitalization is announced but before the transaction occurs, we need to calculate the market value of the equity.
Market value of equity = Number of shares outstanding * Share price
Market value of equity = 10 million shares * $62 = $620 million
b. To estimate Mercer's share price at the conclusion of the transaction, we need to calculate the market value of the equity after the transaction occurs.
Market value of equity = Market value of equity before transaction + Cash received from new debt - Dividend payment
Market value of equity = $620 million + $259 million - $259 million = $620 million
c. To estimate Mercer's equity cost of capital after the transaction, we need to consider the weights of debt and equity in the capital structure.
Total capital = Equity + Debt
Total capital = $620 million (market value of equity) + $109 million (existing debt) + $368 million (new debt) = $1.097 billion
Weight of equity = Market value of equity / Total capital
Weight of equity = $620 million / $1.097 billion = 0.565
Weight of debt = Total debt / Total capital
Weight of debt = ($109 million + $368 million) / $1.097 billion = 0.435
Equity cost of capital = Weight of equity * Cost of equity
Debt cost of capital = Weight of debt * Cost of debt
Assuming the cost of debt for the existing debt is 4.68% and for the new debt is 5.15%:
Equity cost of capital = 0.565 * 8.5% = 4.8025%
Debt cost of capital = 0.435 * 5.15% + 0.435 * 4.68% = 4.265775%
Therefore, Mercer's equity cost of capital after the transaction is approximately 4.8025% and the debt cost of capital is approximately 4.265775%.
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The risk that could disrupt business of financial services firms in the form of lost customers and lost revenue.
A.
FinTech risk.
B.
interest rate risk.
C.
liquidity risk.
D.
technology risk.
E.
credit risk.
The risk that could disrupt the business of financial services firms in the form of lost customers and lost revenue is liquidity risk.
The correct option is C. liquidity risk.
A. FinTech risk refers to the risk associated with the adoption and use of financial technology. While it can introduce challenges and changes to the business model, it may not directly result in lost customers and revenue.
B. Interest rate risk refers to the potential impact of interest rate fluctuations on a financial institution's profitability. While it can affect the firm's revenue, it does not specifically pertain to lost customers.
C. Liquidity risk is the risk of not being able to meet financial obligations as they come due. It can lead to lost customers and revenue if the firm is unable to fulfill its commitments or provide timely access to funds for customers.
D. Technology risk refers to the risk associated with technology failures or disruptions. While it can have various impacts on the business, it may not necessarily result in lost customers and revenue.
E. Credit risk refers to the risk of borrowers defaulting on their obligations. While it can affect the firm's financial performance, it is not directly related to lost customers and revenue.
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Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 6.00% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,113.00. What is the 6-month return for holding the bonds until maturity (r' or y^')? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 7.75% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,076.00. Given your answer to the 6-month return, what is the yield to maturity (as an APR) for holding the bond? Submit swer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)
We can say that the Yield to Maturity (as an APR) for holding the bond is 8.26%. Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 6.00% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value.
Cinqua Terra bonds currently trade at $1,113.00. Let's find out the 6-month return for holding the bonds until maturity (r' or y^')
We will use the following formula to calculate the 6-month return for holding the bonds until maturity:
C = [tex]\frac{Coupon payment}{2} = $30[/tex]
r' = Semi-annual return = C / Market Price of Bond at the beginning of the period
= C / PBt r' = C / PBt
Cinqua Terra bonds currently trade at $1,113.00
Coupon payment = $1,000 * 6.00% / 2 = $30
PBt = $1,113.00
r' = [tex]\frac{30}{1,113.00}[/tex]
r' = 0.0269
r' = 2.69%
Given:
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 7.75% APR.
The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value.
Cinqua Terra bonds currently trade at $1,076.00.
Find:
Yield to Maturity (as an APR)
Formula used:
Price of bond = PV of interest payments + PV of principal repayment
The formula for calculating yield to maturity is: Face value of bond = Sum of PV of all future cash flows
Here,
Market price of bond (PB) = $1,076.00
Face value of bond (FV) = $1,000
Number of years to maturity (n) = 20 (10 years * 2)
Coupon rate (C) = 7.75% or 0.0775
We have to calculate yield to maturity.
YTM is the discount rate that makes the sum of all future cash flows equal to the current market price of a bond.
The calculation can be done using the financial calculator, or an excel spreadsheet.
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James and Melanie are both customer representatives at a call center. Their job and daily goal are to take care of 30 calls with the customer satisfaction level being higher than 3 points (in a 5-point scale). One day, the manager of the call center asked James to lower the volume of calls that he take (to about 15 calls per day) and train the new customer representatives during the time that he does not take calls. At the same time, the manager asked Melanie to stop taking calls and manage the customer service quality monitor system within the call center. The changes in job design for James can be viewed as (1)_________________
The changes in job design for James can be viewed as job enrichment. Job enrichment refers to an increase in the complexity and responsibilities of a job, giving the worker more control and input into how the job is performed. James has been given the responsibility of training new customer representatives, which means that he will have more control over the training program and can make changes to it to improve the training experience.
He will also be given the opportunity to develop his leadership and communication skills, which will be beneficial for his career growth. Melanie's changes in job design, on the other hand, can be viewed as job rotation. Job rotation involves moving employees from one job to another to increase their experience and skills. Melanie will no longer be taking calls and will be managing the customer service quality monitor system.
This will give her a chance to develop her analytical and problem-solving skills, as she will be responsible for monitoring and improving customer satisfaction levels in the call center.Overall, the changes in job design for James and Melanie are positive because they will lead to personal and professional growth for both employees. By increasing the complexity and responsibilities of their jobs, they will have more control over their work and develop new skills that will benefit them in the long run.
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(C2,C3} Atlas Company uses the direct write-off method to account for its uncollectible accounts. In 2011, credit sales were RM130,000. On March 7,2012 , a customer owing RM1,600 was declared bankrupt. Required: i. Prepare journal entries relating to uncollectible accounts for 2011. (omit explanation) ii. Prepare journal entries relating to uncollectible accounts for 2012. (omit explanation)
Atlas Company uses the direct write-off method to account for its uncollectible accounts.
i). Accounts Receivable Cr. RM (amount)
ii). Accounts Receivable Cr. RM1,600
Journal entries are used to record financial transactions in a company's accounting system. Each transaction is typically recorded using a double-entry system, where at least two accounts are affected.
Determine the nature of the transaction or event that needs to be recorded.
Identify the accounts that will be affected by the transaction.
i. Journal entries relating to uncollectible accounts for 2011:
Date: December 31, 2011
Bad Debts Expense Dr. RM (amount)
Accounts Receivable Cr. RM (amount)
ii. Journal entries relating to uncollectible accounts for 2012:
Date: March 7, 2012
Uncollectible Accounts Expense Dr. RM1,600
Accounts Receivable Cr. RM1,600
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This entry debits the Bad Debts Expense account, recognizing the expense of the uncollectible account, and credits the Account Receivable account to remove the amount owed by the bankrupt customer.
i. Journal entries relating to uncollectible accounts for 2011:
Since Atlas Company uses the direct write-off method, uncollectible accounts are recognized as expenses when they are deemed uncollectible. In 2011, credit sales were RM130,000, and there is no specific information given regarding any bad debts or customers becoming bankrupt during that year. Therefore, no journal entries need to be recorded for uncollectible accounts in 2011.
ii. Journal entries relating to uncollectible accounts for 2012:
On March 7, 2012, a customer owing RM1,600 was declared bankrupt. This indicates that the account has become uncollectible and needs to be written off. The journal entry to record this would be as follows:
Date: March 7, 2012
Account Receivable - Customer's Name RM1,600
Bad Debts Expense RM1,600
This entry debits the Bad Debts Expense account, recognizing the expense of the uncollectible account, and credits the Account Receivable account to remove the amount owed by the bankrupt customer.
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Suppose the market demand function (expressed in dollars) for a normal product is P = 2000 – 4Q and the Supply Curve is P= 250 + 5Q, where P is the price of the product and Q is the quantity demanded or supplied. Assume that the Marginal External Cost curve is MEC = 30 + 4Q. Here are the specific questions: (show all your calculations and draw the graph. In a competitive market
What is the equilibrium price and quantity?
How is the total external cost (TEC)?
In the socially efficient system,
What is the efficient output and price?
What is the efficient Pigouvian tax?
How much is the total external cost (TEC)?
In a competitive market, the equilibrium price and quantity can be found by setting the quantity demanded equal to the quantity supplied. So, 2000 - 4Q = 250 + 5Q.
Solving this equation, we get Q = 150 units. Substituting this value into either the demand or supply function, we can find the equilibrium price.
P = 2000 - 4(150) = $1400.
Total external cost (TEC) is the cost imposed on society due to the negative externalities associated with the production or consumption of a good. In this case, the MEC curve represents the negative externality. To find TEC, we integrate the area under the MEC curve. Integrating 30 + 4Q with respect to Q, we get
TEC = 30Q + 2Q^2.
In a socially efficient system, the efficient output and price occur when the marginal social benefit (MSB) equals the marginal social cost (MSC). In this case, MSB is equal to the demand curve, P = 2000 - 4Q, and MSC is equal to the supply curve plus the MEC curve,
P = 250 + 5Q + (30 + 4Q).
By equating the two, we can solve for the efficient quantity and price. Solving this equation, we get Q = 175 units and P = $875.
The efficient Pigouvian tax is the tax levied on the producer equal to the negative externality per unit of output. In this case, the negative externality is represented by the MEC curve, which is 30 + 4Q. So, the efficient Pigouvian tax is $4 per unit.
To find the total external cost (TEC), we substitute the efficient quantity (Q = 175) into the MEC equation.
TEC = 30(175) + 2(175)^2 = $12,250.
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Explain how trade agreements between countries eliminate tariffs. How does this elimination of tariffs benefit consumers? What are the trade-offs?Explain how trade agreements between countries eliminate tariffs. How does this elimination of tariffs benefit consumers? What are the trade-offs?
Trade agreements are treaties between countries that regulate and govern the commerce between them. These agreements eliminate the tariffs on goods and services between the parties, which facilitates the trade and boosts economic growth.
The tariff is a tax levied by a government on imported or exported goods. These taxes are often used as a tool of trade policy to protect domestic industries or to retaliate against foreign nations. Tariffs make imported goods more expensive, which makes domestic products more competitive.
As a result, the producers benefit, but the consumers pay a higher price, and the economy suffers from the reduced efficiency and increased costs. Trade agreements eliminate the tariffs on goods and services between the signatories, which encourages trade and increases the economic benefits. The elimination of tariffs benefits consumers in several ways. Firstly, it increases the availability of goods and services, which expands the consumer choices and improves the quality of life. Secondly, it lowers the prices of goods and services, which reduces the cost of living and increases the purchasing power of consumers.
Thirdly, it stimulates competition, which incentivizes the producers to improve their products and services and to lower their prices. The trade-offs of eliminating tariffs depend on the specific circumstances and the industries affected. Some of the potential trade-offs are:
1) loss of government revenue,
2) displacement of domestic industries,
3) exploitation of cheap labor and resources in developing countries,
4) environmental degradation, and
5) cultural homogenization.
However, most economists agree that the overall benefits of trade agreements outweigh the costs and that trade is a positive-sum game that creates wealth and prosperity for all parties involved.
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Sandhill Company purchases $49,000 of raw materials on account, and it incurs $58,800 of factory labor costs. Supporting records show that (a) the Assembly Department used $23,520 of direct materials and $34,300 of direct labor, and (b) the Finishing Department used the remainder. Journalize the assignment of the costs to the processing departments on March 31. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
The charges incurred via Sandhill Company for raw substances and factory labor have been allotted to the Assembly Department and Finishing Department based totally at the supporting facts. The journal entry as it should be displays the project of expenses to the respective departments.
The journal access to assign fees to the processing departments on March 31 could be as follows:
Assembly Department:
Assembly Department Materials Inventory $23,520
Assembly Department Labor Expense 34,300
Accounts Payable $57,820
Finishing Department:
Finishing Department Materials Inventory $25,480
Finishing Department Labor Expense 24,500
Accounts Payable $49,980
Conclusion:
The charges incurred via Sandhill Company for raw substances and factory labor have been allotted to the Assembly Department and Finishing Department based totally on the supporting facts. The journal entry as it should be displays the project of expenses the respective departments.
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James deposits $90,000 in the Dunville Commercial Bank that is paying 2.8% annual interest for this type of account. After 17 years, how much can James withdraw if nothing was taken out and interest rates did not change?
After 17 years, James can withdraw approximately $145,554.76 from the Dunville Commercial Bank.
To calculate the withdrawal amount, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount (initial deposit), r is the annual interest rate (as a decimal), n is the number of times interest is compounded per year, and t is the number of years.
In this case, James deposited $90,000 at an annual interest rate of 2.8%. Since the question does not specify the compounding frequency, we'll assume it is compounded annually (n = 1). Plugging in the values, we get:
A = 90,000(1 + 0.028/1)^(1*17)
A ≈ $145,554.76
Therefore, after 17 years, James can withdraw approximately $145,554.76 from the Dunville Commercial Bank if no withdrawals were made and the interest rates remained constant.
Compound interest refers to the interest earned on both the initial deposit (principal) and any previously accumulated interest. The formula for compound interest takes into account the compounding frequency, which determines how often the interest is added to the account balance.
In this case, the interest rate is 2.8% per year, which means that for every year the account balance increases by 2.8% of the previous year's balance. The formula for compound interest takes into consideration the number of compounding periods per year (n) and the total number of years (t) to calculate the final amount (A).
By plugging the values into the formula and solving the equation, we find that after 17 years, James can withdraw approximately $145,554.76. This amount includes both the initial deposit and the accumulated interest.
It's important to note that this calculation assumes no withdrawals were made from the account during the 17-year period and that the interest rate remained constant. In reality, the interest rates can fluctuate, and if James made any withdrawals, it would affect the final amount.
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Multiple choice 1. If the price of automobiles increases and all other factor remain unchanged it will be reasonable to expect an increase in the demand for automobiles sales b. a decrease in the demand for automobiles C. an increase in the quantity of automobiles demanded d. a decrease in the quantity of automobiles demanded 2. If the demand curve for Heavy Beer shifts to the left, this could be due to a. an increase in the price of Heavy Beer b. an increase in consumer income c. an increase in the price of other bears d. a shift in tastes and preferences to light beers 3. An increase in the price of apples is likely to cause a. a decrease in the demand for apples b. an increase in the quantity demanded of apples c. an increase in the demand for other types of fruit d. an increase in the quantity demanded of other types of fruit 4. If the price of black walnuts increases and other factors remain unchanged it is reasonable to expect a. an increase in the quantity supplied b. a decrease in the quantity supplied c. an increase in supply d. a decrease in supply 5. If a new labor settlement increases a fim's costs, this will probably a. cause a decrease in supply b. cause an increase in supply cause a reduction in the quantity supplied d. cause the supply curve to shift to the right 6. If grasshoppers destroy half of the wheat crop the result will be a decrease in the quantity supplied b. a rightward shift of the wheat supply curve c. a leftward shift of the wheat supply curve d. none of the above 7. If demand increases and supply declines a. the equilibrium price and quantity will both increase b. the equilibrium price will rise, but the quantity will fall c. the equilibrium price will fall, but the quantity will rise d. the equilibrium price and quantity will both fali e. the equilibrium price will rise; quantity will be indeterminate C. a.
These answers are based on the basic principles of supply and demand. Keep in mind that economic situations can be complex, and there may be other factors at play in real-world scenarios.
1. c
2. d
3. a
4. a
5. a
6. c
7. b
1. If the price of automobiles increases and all other factors remain unchanged, it will be reasonable to expect a decrease in the demand for automobiles (option b). This is because an increase in price usually leads to a decrease in quantity demanded, assuming everything else stays the same.
2. If the demand curve for Heavy Beer shifts to the left, this could be due to a shift in tastes and preferences to light beers (option d). When consumers' preferences change and they start favoring light beers over heavy beers, the demand for heavy beers will decrease, causing the demand curve to shift to the left.
3. An increase in the price of apples is likely to cause a decrease in the quantity demanded of apples (option b). When the price of a good increases, consumers typically buy less of it, resulting in a decrease in quantity demanded.
4. If the price of black walnuts increases and other factors remain unchanged, it is reasonable to expect a decrease in supply (option d). When the price of a good increase, suppliers are incentivized to produce more of it, leading to a decrease in supply.
5. If a new labor settlement increases a firm's costs, this will probably cause a decrease in supply (option a). An increase in costs for the firm will reduce their willingness and ability to produce and supply the good, resulting in a decrease in supply.
6. If grasshoppers destroy half of the wheat crop, the result will be a leftward shift of the wheat supply curve (option c). The supply of wheat will decrease due to the reduced quantity available in the market, causing the supply curve to shift to the left.
7. If demand increases and supply declines, the equilibrium price will rise, but the quantity will fall (option b). When demand increases and supply decreases, the price will increase due to increased competition among buyers. However, the quantity exchanged in the market will decrease as the supply is limited.
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The following data relate to a corporate bond which pays coupons semi-annually: Settlement date 01 March 2022 Maturity date 31 December 2042 Coupon rate 10% Yield to maturity 9% Face value $1,000 Percentage of face value paid back to the investor on maturity 100% Using the above data, calculate i. The flat price of the bond ii. Accrued interest iii. Invoice price of the bond Note: Show the assumptions, if any, you made in your calculations.
Performing the calculations with the given data and the assumptions, we can determine the actual values.
To calculate the flat price, accrued interest, and invoice price of the bond, we will use the following assumptions: Assumptions: Coupon payments are made semi-annually.
The settlement date is 01 March 2022, and we will assume there are no accrued interest days prior to this date.
The face value of the bond is $1,000.
i. Flat Price of the Bond:
The flat price of the bond is the present value of all future cash flows (coupon payments and the final maturity payment) discounted at the yield to maturity.
To calculate the flat price, we need to calculate the present value of each cash flow and then sum them up:
Coupon payments: The bond has a 10% coupon rate, and since it pays semi-annually, the coupon payment per period is (10% / 2) * Face Value = $50.
There are (2042 - 2022) * 2 = 40 semi-annual periods remaining until maturity.
Using the yield to maturity of 9% as the discount rate, we can calculate the present value of the coupon payments:
PV_coupon = $50 / (1 + 9%/2) + $50 / (1 + 9%/2)^2 + ... + $50 / (1 + 9%/2)^40
Maturity payment: The investor will receive 100% of the face value on maturity, which is $1,000.
Now, we can calculate the flat price by summing the present value of the coupon payments and the present value of the maturity payment:
Flat Price = PV_coupon + PV_maturity
ii. Accrued Interest:
Accrued interest is the interest earned on the bond from the last coupon payment date (or the issuance date if no coupons have been paid) to the settlement date.
Since the settlement date is 01 March 2022, we assume there are no accrued interest days before this date. Therefore, the accrued interest is $0.
iii. Invoice Price of the Bond:
The invoice price is the flat price of the bond plus accrued interest.
Invoice Price = Flat Price + Accrued Interest
Using the provided data and the assumptions above, we can calculate the values:
i. Flat Price of the Bond:
PV_coupon = $50 / (1 + 9%/2) + $50 / (1 + 9%/2)^2 + ... + $50 / (1 + 9%/2)^40
PV_maturity = $1,000 / (1 + 9%/2)^40
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supply and demand functione? Demand Supdly
0 5
=47−2rho
Q 5
=−13+rho
What is it consumef surplua in this mankit? Cansimer nuplus is 2 (Einter your response rounsed to two decinai placent) mupely and demand fundiont Whit a the convurwe nurglus in this manks? Contumer sumbitis is 1 (Entar your maponse nounderf to tho decime placen)
Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. It represents the extra benefit consumers receive from purchasing a good at a price lower than what they are willing to pay. In a market, consumer surplus is the area below the demand curve and above the market price.
Supply and demand functions: Qd = 47 - 2p; Qs = -13 + p
Equating the supply and demand functions: 47 - 2p = -13 + pp + 2p = 60p = 30
Thus, p = 30/1 = $30
Consumer surplus is calculated by finding the area below the demand curve and above the price.
At a price of $30, the quantity demanded is 17: Qd = 47 - 2pQd = 47 - 2(30)Qd = 47 - 60Qd = -13
At a price of $30, the quantity supplied is 17: Qs = -13 + pQs = -13 + 30Qs = 17
Therefore, consumer surplus is calculated as the area of the triangle below the demand curve and above the price,
which is: CS = (1/2) x (30-15) x (47-(-13))CS = (1/2) x 15 x 60CS = 450
The consumer surplus is $450. Suppose the consumer submits a bid of 1, the demand function is:
Qd = 47 - 2p = 47 - 2(1) = 45
The supply function is: Qs = -13 + p = -13 + 1 = -12
The market is not in equilibrium because the quantity demanded is greater than the quantity supplied. Therefore, there is a shortage.
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Suppose you are going to receive $17,000 per year for 7 years at the end of each year; thus you receive the first payment one year from today. Compute the present value of the cash flows if the appropriate interest rate is 14 percent. Round it two decimal places, and do not include the $ sign, e.g.. 123456.78. Your Answer:
the present value of the cash flows is approximately $77,677.45. , we can use the formula for the present value of an ordinary annuity:
PV = PMT × [[tex](1 - (1 + r)^(-n)[/tex]) ÷ r]
Where:
PV = Present value
PMT = Payment per period ($17,000)
r = Interest rate per period (14%)
n = Number of periods (7 years)
Let's plug in the values into the formula:
PV = $17,000 × [[tex](1 - (1 + 0.14)^(-7)[/tex]) ÷ 0.14]
Using a calculator, we can solve for PV:
PV ≈ $77,677.45
Therefore, the present value of the cash flows is approximately $77,677.45.
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A company's overhead rate is 200% of direct labor cost. Using the following incomplete accounts determine the cost of direct materials used Work in Process Inventory Beginning WIP Direct Materials Direct Labor Applied Overhead To Finished Goods Ending WIP 55,000 65,000 Factory Overhead 143,000 145,000 Finished Goods Inventory Beginning FG 45,000 270,000 40,000 275,000 Ending FG Multiple Choice $275,000 $285,000 $270,000 $62,500 $137,500
The cost of direct materials used is $295,000. None of the options provided matches this amount, so none of the multiple-choice options is correct.
To determine the cost of direct materials used, we need to consider the changes in Work in Process Inventory, Direct Materials, and Finished Goods Inventory.
Given the following information:
Work in Process Inventory:
Beginning WIP: $55,000
Direct Materials: $65,000
Direct Labor: Not provided
Applied Overhead: Not provided
To Finished Goods: Not provided
Ending WIP: Not provided
Finished Goods Inventory:
Beginning FG: $45,000
Direct Materials: $270,000
Direct Labor: Not provided
Applied Overhead: Not provided
Ending FG: $40,000
To calculate the cost of direct materials used, we can use the following formula:
Cost of Direct Materials Used = Direct Materials in Beginning WIP + Direct Materials in Finished Goods Inventory - Direct Materials in Ending FG
Cost of Direct Materials Used = $65,000 + $270,000 - $40,000
Cost of Direct Materials Used = $295,000
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What will an investment of $1,755 grow to in 40 years at 6.5%, compounded monthly? $22,671.59 $23,463.65 $23,623.39 $21,790.21 $23,140.17
An investment of $1,755 will grow to approximately $23,463.65 in 40 years at a 6.5% interest rate, compounded monthly.
To calculate the future value of the investment, we can use the formula for compound interest:
[tex]FV=P\times(1+\frac{r}{n})^{nt}[/tex],
where FV is the future value, P is the initial investment, r is the interest rate (as a decimal), n is the number of compounding periods per year, and t is the time in years.
In this case, P is $1,755, r is 6.5% (or 0.065), n is 12 (since it's compounded monthly), and t is 40.
Plugging these values into the formula, we have:
[tex]FV=1755\times(1+\frac{0.065}{12})^{12\times40}[/tex].
Calculating this expression, we find:
FV ≈ 1755×(1.00541667)⁴⁸⁰ ≈ $23,463.65.
Therefore, an investment of $1,755 will grow to approximately $23,463.65 in 40 years at a 6.5% interest rate, compounded monthly. The closest option is b. $23,463.65.
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4. Consider the market for gasoline. Demand for gas is represented by the inverse demand curve, P
gas
d
=160−2Q
gas
d
, and the supply of gas is represented by the inverse supply curve, P
gas
s
=6Q
gas
s
. Assume that Q is measured in gallons of gas. (a) What is the equilibrium price and quantity in this market? (b) How much surplus do producers and consumers each receive? Now, suppose that the government imposes a $40 /gallon tax on gas stations (i.e., suppliers). (c) What is the new equilibrium price and quantity after the tax is introduced? (d) How does consumer and produce surplus change as a result of the tax? (e) How much tax revenue goes the government collect? (f) What is the size of the deadweight loss associated with this tax? (g) To what extent does the burden of this tax fall on consumers versus firms? In other words, what proportion of the tax revenue comes from consumers paying a higher price, versus firms receiving a lower price? (h) How would the consumer and firm tax burdens you calculated in the previous part change if the tax had been charged to consumers (as opposed to suppliers)? Show your work.
The equilibrium price is $60 per gallon, and the equilibrium quantity is 50 gallons. Producers receive $1500 worth of surplus, while consumers receive $1500 worth of surplus.
After the tax is introduced, the new equilibrium price is $80 per gallon, and the new equilibrium quantity is 30 gallons.
Consumer surplus decreases by $600, while producer surplus decreases by $600.
The government will collect $1200 in tax revenue.
The size of the deadweight loss associated with this tax is $600.
The burden of the tax is split 50/50 between consumers and firms. Consumers pay $20 more per gallon, while firms receive $20 less per gallon.
If the tax had been charged to consumers instead of suppliers, the consumer burden would increase by $40 per gallon, and the producer burden would decrease by $40 per gallon, with no effect on the equilibrium price and quantity.
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Suppose you are the manager of a watchmaking firm operating in a perfectly competitive market. - Your total cost of production is given by: TC=76+5
∗
q+1
∗
q
2
, where q represents the units of output. - The current market price for watches is $95 and your optimal (profit-maximizing) level of output is 45 . (a) Is the current price a long-run equilibrium price? (Yes/No) (b) Determine the correct long-run equilibrium price. (Note: Let the decimal places float in all calculations - then round your final answer to one decimal place. If the current price is the long-run equilibrium price, just enter that price.)
(a) No. (b) The current market price of $95 is higher than the minimum ATC of approximately $57.69, the current price is not a long-run equilibrium price.
(a) To determine if the current price is a long-run equilibrium price, we need to compare it to the long-run equilibrium price. In a perfectly competitive market, firms maximize their profits by producing where marginal cost (MC) equals marginal revenue (MR). In the long run, firms also produce at the minimum average total cost (ATC) to maximize their profits.
To find the long-run equilibrium price, we need to find the level of output where MC equals MR and ATC is minimized. Given the total cost of production function TC = 76 + 5q + q^2, we can calculate the marginal cost (MC) by taking the derivative of the total cost function with respect to q:
MC = dTC/dq = 5 + 2q
To find the marginal revenue (MR), we need to consider that in a perfectly competitive market, each additional unit of output sells at the market price. Therefore, MR is equal to the market price, which is $95 in this case.
Setting MC equal to MR, we have:
5 + 2q = 95Solving for q, we find q = 45. This is the optimal level of output, which matches the given information.
Now, we need to determine if the current price of $95 is a long-run equilibrium price. If the price is equal to the minimum ATC at the optimal level of output, then it is a long-run equilibrium price.
To calculate the average total cost (ATC), we divide the total cost (TC) by the level of output (q):
ATC = TC/q = (76 + 5q + q^2)/q = 76/q + 5 + q
Substituting the optimal level of output q = 45, we find:
ATC = 76/45 + 5 + 45 ≈ 7.69 + 5 + 45 ≈ 57.69
Since the current market price of $95 is higher than the minimum ATC of approximately $57.69, the current price is not a long-run equilibrium price.
(a) No
(b) To determine the correct long-run equilibrium price, we need to find the price at which the average total cost (ATC) is minimized. From the previous calculation, we found that the minimum ATC is approximately $57.69. Therefore, the correct long-run equilibrium price is $57.7 (rounded to one decimal place).
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List and define the major components from the following mission statement ( 4 MARKS): As the leader in high-quality optical equipment for photographers and the commercial end users across the globe, we pay special attention to remaining at the forefront of technological advancements by developing and retaining the best employees who display creativity and trustworthiness. We will continue to grow and contribute to communities where we operate around the world. B) Write a vision for the above mission
The mission statement of an organization comprises of its purpose, goals, and actions that are undertaken to accomplish them. It is designed to guide employees and stakeholders in decision-making and strategic planning. The following are the major components of the given mission statement with their definitions:Leader: The organization's management responsible for guiding its employees and stakeholders. High-quality optical equipment: The organization's primary product for photographers and commercial users.
Technological advancements: Advancements in technology that may impact the organization's product and operations.Best employees: Employees who demonstrate creativity and trustworthiness. Communities: Locations where the organization operates and has a presence.
Grow and contribute: The organization's goals for expansion and making a positive impact in the communities where it operates.A vision for the above mission statement could be: To be the most trusted and innovative provider of high-quality optical equipment, empowering photographers and commercial users to achieve their vision. We aim to revolutionize the industry by staying ahead of technological advancements and cultivating a culture of creativity and trustworthiness among our employees.
As we grow and expand, we remain committed to making a positive impact in the communities where we operate by contributing to their growth and development.
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Mr. Pitkin bought a farm and promised to pay $5050 in 7 years with 8.75% simple interest and $9100 in 15 years with 10.25% simple interest. Later, Mr. Pitkin met with the lender requesting to pay $5100 at the end of 5 years and to make a final payment at the end of 12 years. Based on a simple interest rate of 17%, determine the amount required to settle the debt at the end of 12 years. Thank you!
The amount required to settle the debt at the end of 12 years based on a simple interest rate of 17% is $11,358.72 , we can calculate the individual amounts owed at the given time periods and then sum them up.
Amount to be paid in 7 years = $5050
Interest rate for 7 years = 8.75%
Amount to be paid in 15 years = $9100
Interest rate for 15 years = 10.25%
Amount paid at the end of 5 years = $5100
Amount paid at the end of 12 years = ?
The amount required at the end of 12 years, we'll first calculate the interest accumulated on the amount to be paid in 7 years and the amount to be paid in 15 years.
Interest for the amount to be paid in 7 years:
Interest = Principal × Rate × Time
Interest = $[5050 × (8.75/100) × 7]
Interest = $3125.625
Amount owed at the end of 7 years:
Amount owed = Principal + Interest
Amount owed = $5050 + $3125.625
Amount owed = $8175.625
Interest for the amount to be paid in 15 years:
Interest = Principal × Rate × Time
Interest = $9100 × (10.25/100) × 15
Interest = $13981.25
Amount owed at the end of 15 years:
Amount owed = Principal + Interest
Amount owed = $9100 + $13981.25
Amount owed = $23081.25
Now, we need to calculate the interest on the amount paid at the end of 5 years for the remaining 7 years until the end of 12 years.
Interest for the amount paid at the end of 5 years for 7 years:
Interest = Principal × Rate × Time
Interest = ($5100 - $5050) × (17/100) × 7
Interest = $49 × (0.17) × 7
Interest = $57.47
Amount owed at the end of 12 years:
Amount owed = Amount owed at the end of 7 years + Interest for 7 years + Interest for 12 years
Amount owed = $8175.625 + $3125.625 + $57.47
Amount owed = $11358.72
Therefore, the amount required to settle the debt at the end of 12 years based on a simple interest rate of 17% is $11,358.72.
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This is an excel assignment.
You are manager of a manufacturing business. Business is going very well and one production line is at full capacity. You want to double the size of the production line. Engineering has estimated the cost and time required. It can be accomplished without effecting the existing production. The timing of the cash flows for the facility is as follows.
Month
Cash Flow
1
$ (20,000.00)
2
$ (45,000.00)
3
$ (45,000.00)
4
$ (50,000.00)
5
$ (55,000.00)
6
$ (70,000.00)
7
$ (90,000.00)
8
$ (90,000.00)
9
$ (120,000.00)
10
$ (140,000.00)
11
$ (180,000.00)
12
$ (200,000.00)
13
$ (225,000.00)
14
$ (175,000.00)
15
$ (200,000.00)
16
$ (50,000.00)
Total
$ (1,755,000.00)
The current cost of capital is 8% APR. What is the total cost of the project?
You pay interest on the project every year (i.e., you do not pay off the capital, only the interest.) Calculate the total project cost including interest. Use annual numbers to calculate the internal rate of return.
Sales start after the project is completed. You estimate that sales for the first year will be at 30% of capacity and increase to 60% in year 2. Sales after year 2 are estimated at 85% of capacity. The current production line generates $900,000 in net profit. The profit will be proportional to the percent capacity utilized. The company demands a minimum 20% internal rate of return for capital projects. Does the 10-year rate of return meet the company requirements? Assume that the company pays interest on the capital for the entire ten years.
You can use the information provided to calculate the total project cost and the 10-year internal rate of return. To calculate the total cost of the project, we need to consider the cost of capital and the cash flows over the 10-year period.
Calculate the interest expense for each year. Multiply the cash flow for each year by the cost of capital (8% APR).
Calculate the total interest expense over the 10-year period by summing up the interest expenses for each year.
Calculate the total project cost by adding the total interest expense to the initial cash flow.
Calculate the net profit for each year by multiplying the capacity utilization percentage with the net profit generated by the current production line.
Calculate the total net profit over the 10-year period by summing up the net profit for each year.
Calculate the internal rate of return (IRR) using the net profit values.
Compare the IRR with the minimum required rate of return (20%) to determine if it meets the company's requirements.
However, you can use the information provided to calculate the total project cost and the 10-year internal rate of return.
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Which of the statements below best describes office layout? a) Addresses the layout requirements of large, bulky projects such as ships and buildings. b) Seeks the best personnel and machine utilization in repetitive or continuous production. c) Allocates shelf space and responds to customer behaviour. d) Deals with low-volume, high-variety production. e) None of the above. 1.2 A process-oriented layout: a) groups workers to provide for movement of information. b) addresses the layout requirements of large, bulky projects such as ships and buildings. c) seeks the best machine utilization in continuous production. d) allocates shelf space based on customer behaviour. e) None of the above 1.3 Which of the following support the retail layout objective of maximizing customer exposure to products? a) Locate high-draw items around the periphery of the store. b) Use prominent locations for high-impulse and high-margin
Office layout refers to the arrangement of spaces and resources within an office setting to optimize productivity and efficiency. It is not accurately described by any of the given statements.
The given statements do not accurately describe office layout.
Statement a) addresses the layout requirements of large, bulky projects such as ships and buildings, which is not directly related to office layout.
Statement b) focuses on seeking the best personnel and machine utilization in repetitive or continuous production, which is more applicable to manufacturing or industrial settings rather than office environments.
Statement c) relates to shelf space allocation and customer behavior, which is specific to retail settings and not necessarily applicable to office layouts.
Statement d) deals with low-volume, high-variety production, which again is more relevant to manufacturing and not office layout.
Therefore, none of the given statements accurately describe office layout. Office layout involves organizing workspaces, furniture, equipment, and resources in a way that promotes effective communication, collaboration, and productivity among employees. It considers factors such as the flow of information, the interaction between team members, and the utilization of space to create a conducive work environment.
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Transfer your data from above for Nominal and Real GDP. Calculate the GDP Deflator and Rates of Change Formulas: GDP Deflator = Real GDP Nominal GDP ×100 Real GDP= GDP Deflarot Nominal GDP x100 Growth Changes Deflator YR1 Deflator YR 2-DeflatorYR 1×100 Define the rate of GDP inflation form 2016 to 2017. Define the rate of GDP inflation form 2016 to 2018.
To calculate the GDP deflator and rates of change, you will need the values for nominal GDP and real GDP for different years. The GDP deflator can be calculated by dividing the nominal GDP by the real GDP and multiplying by 100.
GDP Deflator = (Real GDP / Nominal GDP) x 100
To calculate the rate of change in the GDP deflator, subtract the deflator value of one year from the deflator value of the previous year, and divide by the deflator value of the previous year. Then, multiply by 100.
Rate of Change in GDP Deflator = (Deflator YR2 - Deflator YR1) / Deflator YR1 x 100
To define the rate of GDP inflation from 2016 to 2017, you would calculate the rate of change in the GDP deflator using the values of the deflator for those years.
To define the rate of GDP inflation from 2016 to 2018, you would calculate the rate of change in the GDP deflator using the values of the deflator for those years as well.
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"A firm
operating in a Perfect Competition Market Structure is a price
taker. The challenge it is faced with is to establish a correct
level of output where trading will result in profit maximising
con"
In a perfect competition market structure, a firm is considered a price taker. This means that the firm cannot influence the market price and must accept the prevailing market price as given. The challenge for the firm is to determine the correct level of output that will result in profit maximization.
To establish the correct level of output, the firm needs to consider its marginal revenue (MR) and marginal cost (MC). MR represents the change in total revenue from selling one additional unit, while MC represents the change in total cost from producing one additional unit.
The firm should produce at the level where MR equals MC. At this point, the firm maximizes its profits because it produces the quantity of output that generates the highest difference between total revenue and total cost.
To find the profit-maximizing quantity, the firm needs to compare the MR and MC curves. If MR is greater than MC, the firm should increase its output. If MR is less than MC, the firm should decrease its output. The firm should continue adjusting its output until MR equals MC, resulting in profit maximization.
In conclusion, a firm operating in a perfect competition market structure faces the challenge of determining the correct level of output to achieve profit maximization by equating marginal revenue and marginal cost.
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The retail price when the book is published will be $24. What is the discount rate Future Bookstore is offering its customers for this book? What is the discount rate Future Bookstore is offering its customers for this book? % (Round to two decimal places.)
The discount rate Future Bookstore is offering its customers for this book is 30.01%.
The value of an anticipated income stream as of the valuation date is known as the present value (PV), commonly referred to as the present discounted value (PDV), in economics and finance. Because money has the ability to earn interest, a quality known as the time value of money, the present value is often less than the future value, with the exception of periods of zero- or negative interest rates, when the present value will be equal to or greater than the future value."
We have,
[tex]FV = PV*(1+r)^n \\= > r = (FV/PV)^(1/n) -1) \\[/tex]
Here, FV = 24 PV = 14.20 n = 2
Substituting,
[tex]r = (24/14.20)^(1/2) -1[/tex]
r = 30.01%.
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