Five fisherman live in a village and have no other employment or income earning possibilities besides fishing. They each own a boat that is suitable for fishing but does not have any resale value.
Fish are worth $5 per pound and the marginal cost of operating the boat is $500 per month. They all fish in a river next to the village, and they have determined that when there are more of them out there on the river fishing, they each catch less fish per month according to the schedule in the table below: If each fisherman acts in his best interest, he will continue to operate his boat each month.
If a fisherman goes out fishing alone, then he will be the only one to reduce the catch. When each fisherman is fishing, he will earn $400 per month if there are no other fishermen around. This is calculated by multiplying the weight of fish that each fisherman will catch (80 pounds) by the price of each pound ($5), and then subtracting the cost of operating the boat, which is $500. The total revenue from the fish would be $400 if the cost of operating the boat is deducted from the total revenue ($900).b) If the fishermen band together and act as a group, they will operate three boats. If the fishermen agree to work together and pool their resources, they will need to determine the optimal number of boats to operate in order to maximize their profits. The profits will be divided equally among the fishermen. The group's revenue for the three boats will be $1350 (5*90*3*5), and the marginal cost of operating the boats will be $1500 ($500*3). Therefore, if they divide their revenue equally, each fisherman will receive $270 per month ($1350/5).
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Select the accounting principle, concept, or assumption that most closely matches each statement. An auditor will try to determine whether a transaction had occurred and its dollar amount by examining documents such as invoices and by other Choose... means. While businesses operate continuously, their economic activities are divided into distinct time periods for reporting purposes. Choose... Information is included in financial statements if it likely would make a difference in a user business decision. Choose... Choose.... Financial information is presented in such a way so that informed users can comprehend its meaning and implications.
In accounting, there are various principles, concepts, and assumptions that are followed while creating financial statements. The principles provide guidance on how transactions should be recorded, while the concepts help in understanding the accounting process.
The assumptions assist in the preparation of financial statements. The given statements are explained below with the accounting principle, concept, or assumption that most closely matches them:
An auditor will try to determine whether a transaction had occurred and its dollar amount by examining documents such as invoices and by other means. This statement closely matches the accounting principle of verification. Verification is an auditing principle that ensures that the recorded transactions are genuine. An auditor verifies transactions by inspecting the accounting records, including financial statements, bank statements, and documents such as invoices and receipts.While businesses operate continuously, their economic activities are divided into distinct time periods for reporting purposes.Financial information is presented in such a way so that informed users can comprehend its meaning and implications. This statement closely matches the accounting principle of understandability. Understandability means that financial information should be presented in a clear and concise manner so that it can be easily understood by users who have reasonable knowledge of business and economic activities.Know more about the accounting principle,
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Explain the significance of micro loan, International Monetary Fund (IMF), World Bank, soft loan, expropriation, free-trade area, customs union, European Union (EU), euro, ASEAN, and cartel.
Answer correctly and explain it within 40 mins will give you positive feedback.
Microloans empower individuals in low-income communities to start or expand businesses, reducing poverty and fostering economic development. The IMF and the World Bank provide financial support, policy advice, and resources to member countries, promoting stability and alleviating global poverty.
Microloans are significant in providing financial support to individuals with limited access to traditional banking services. They empower entrepreneurs in low-income communities, helping them start or expand their businesses and alleviate poverty. By promoting economic development and financial inclusion, microloans enable individuals to become self-sufficient and contribute to their communities' growth.
The International Monetary Fund (IMF) plays a crucial role in promoting global financial stability and economic cooperation. It provides financial assistance and policy advice to member countries facing economic challenges, helping them address balance-of-payment problems, stabilize their economies, and implement necessary reforms. The IMF's significance lies in its ability to support countries during financial crises, foster international monetary cooperation, and contribute to sustainable economic growth and poverty reduction on a global scale.
The World Bank is a vital international financial institution that focuses on reducing poverty and promoting economic development in developing countries. It provides financial resources, technical expertise, and policy guidance for infrastructure projects, social programs, and capacity building. The World Bank's significance lies in its ability to mobilize resources and coordinate efforts to tackle pressing global challenges such as poverty, inequality, climate change, and sustainable development. Through its initiatives, the World Bank aims to foster inclusive and sustainable economic growth that benefits all segments of society.
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Market for flat-screen TVs: Demand: \( Q d=2,600-5 P \) Supply: Qs=-1000 +10P What would be the amount of surplus if a price floor is imposed at price of \( \$ 280 \) ? Your Answer: Answer
The amount of surplus if a price floor is imposed at a price of $280 is $600.
Demand and supply functions for the market for flat-screen TVs are given below:
Qd = 2,600 - 5P
Qs = -1000 + 10P
We have to calculate the amount of surplus if a price floor is imposed at a price of $280.
We know that at equilibrium, the market clears and quantity supplied is equal to quantity demanded.
Hence, we can write,-1000 + 10P = 2,600 - 5P
15P = 3,600
P = $240
Now, we know that if a price floor is imposed at $280, the price cannot go below this level.
Hence, at this price level, the quantity demanded and the quantity supplied will be:-
Qd = 2,600 - 5P = 2,
600 - 5(280) = 1,200Qs = -1000 + 10P = -1000 + 10(280) = 1,800
Therefore, the surplus is the difference between the quantity supplied and quantity demanded at the price floor:
Surplus = Qs - Qd = 1,800 - 1,200 = 600
Hence, the amount of surplus if a price floor is imposed at a price of $280 is $600.
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If L Corp. had operating leverage of 0.18, what would be the increase in Net Income from a 0.21% increase in Sales? Do not round intermediate computations. Round ONLY your final answer to 2 decimal places. Submit as a %. So.02 would be 2%
Operating leverage is the percentage change in net income resulting from a 1% change in sales. Operating leverage can be calculated by dividing the percentage change in net income by the percentage change in sales.
L Corp. has an operating leverage of 0.18, indicating that for every 1% change in sales, net income will increase by 0.18%.To calculate the increase in net income from a 0.21% increase in sales, we can use the operating leverage formula:Operating leverage = % change in net income / % change in sales.
Rearranging the formula to solve for the % change in net income: % change in net income = Operating leverage x % change in sales% change in net income = 0.18 x 0.21% change in net income = 0.0378, or 3.78%Therefore, a 0.21% increase in sales would result in a 3.78% increase in net income. This increase is represented as a percentage of the current net income, so we can submit the answer as 3.78%
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Deborah sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Deborah named Carlos and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Deborah knows that if they both work hard, Carlos will earn $80 on the beach and Deborah will earn $160 at her stand will each take home half of their total revenue: 2
$80+$160
=$120. If Carlos shirks, he'll generate only $50 in earnings. Deborah does not know that Carlos estimates his personal cost (or disutility) of working hard as opposed to shirking at $20. Once out of Deborah's sight, Carlos faces a dilemma: work hard (put in full effort) or shirk (put in low effort). In terms of Carlos's total utility, it is worse for him to shirk / work hard Taking into account the loss in utility that working hard brings to Carlos, Deborah and Carlos har instead of shirking. Deborah knows Carlos will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Carlos. The most Deborah should be willing to pay Carrie to supervise Carlos, assuming supervision is sufficient to encourage Carlos to work hard, is $15/$40/$20/$10 It turns out that Deborah's friend Carrue is unavilable that day, so Deborah cannot find a reliable person to watch Carlos. Which of the following arrangements will ensure that Carlos works hard without making Deborah any worse off than she is when Make Carlos promise to work hard Allow Carlos to keep 62% of the revenue from the bottles of water he sells instead of 50% Allow Carlos to keep 70% of the revenue from the bottles of water he sells instead of 50% Pay Carlos $60, regardless of how many bottles of water he sells
Deborah sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Deborah named Carlos and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day.
Deborah knows that if they both work hard, Carlos will earn $80 on the beach and Deborah will earn $160 at her stand will each take home half of their total revenue: $80+$160=$120. If Carlos shirks, he'll generate only $50 in earnings. Deborah does not know that Carlos estimates his personal cost (or disutility) of working hard as opposed to shirking at $20. Once out of Deborah's sight, Carlos faces a dilemma: work hard (put in full effort) or shirk (put in low effort). In terms of Carlos's total utility, it is worse for him to shirk / work hard.
Taking into account the loss in utility that working hard brings to Carlos, Deborah and Carlos har instead of shirking.There are a few arrangements that can ensure that Carlos works hard without making Deborah any worse off than she is when Allow Carlos to keep 62% of the revenue from the bottles of water he sells instead of 50% or Allow Carlos to keep 70% of the revenue from the bottles of water he sells instead of 50%:If Carlos gets to keep 62% of the revenue from the bottles of water he sells instead of 50%:Assuming he works hard and generates $80 in earnings, he will take home (0.62*80)=$49.6.
Deborah will take home (0.50*80)+160=$200. If Carlos shirks, he will take home (0.62*50)=$31. If Deborah and Carlos split, then Deborah takes home (0.50*50)+80=$105. This is less than $120, which is the amount they will split equally. So, it does not make Deborah any worse off. Hence, this arrangement will ensure that Carlos works hard without making Deborah any worse off than she is when he does not work hard. Therefore, option 2 is the correct answer.
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Define and explain four waves of feminism according to Llewellyn and their relations to religion.
The third wave of feminism, which began in the 1990s, emphasized intersectionality, inclusivity, and diversity within feminist movements. Religion played a multifaceted role during this wave, with some feminists seeking to reclaim and reinterpret religious traditions.
Llewellyn, in her analysis of feminism, identifies four waves of feminism, each marked by distinct social and political contexts.
The first wave, emerging in the late 19th and early 20th centuries, focused on women's suffrage and legal rights. Religion played a complex role during this period, as some religious groups supported women's rights while others opposed them, citing traditional gender roles rooted in religious texts.
The second wave, starting in the 1960s, aimed to challenge gender norms, fight for reproductive rights, and address issues of sexuality and workplace discrimination. Religion was often critiqued during this wave for its patriarchal structures and limitations placed on women's agency.
The third wave, beginning in the 1990s, emphasized intersectionality, inclusivity, and diversity within feminist movements. It recognized the experiences of women from different racial, ethnic, and religious backgrounds.
Religion played a multifaceted role here, as some feminists sought to reclaim and reinterpret religious traditions, while others critiqued religion's oppressive aspects.
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A proposed development is expected on completion to have a floor area of 1093 sqm, a net rental of $312 per sqm and a capitalisation rate of 8.5%. What will be the Net Development Value? O a. 426270 O b. 401195 O c. 4011953 O d. 341016 O e. 4262700
The Net Development Value will be $401,195 which corresponds to option (b).
To calculate the Net Development Value, we multiply the floor area by the net rental rate and then divide the result by the capitalization rate. In this case, the floor area is 1093 sqm, the net rental rate is $312 per sqm, and the capitalization rate is 8.5%.
Using the formula:
Net Development Value = (Floor Area * Net Rental Rate) / Capitalization Rate
Substituting the given values:
Net Development Value = (1093 sqm * $312 per sqm) / 8.5%
Calculating the numerator:
1093 sqm * $312 per sqm = $341,616
Calculating the denominator:
$341,616 / 8.5% = $4,014,058
Therefore, the Net Development Value is $401,195, which corresponds to option b.
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Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20 days a month and only makes one trip on the day it operates. Price and cost information for the Muncey follows: A passenger-trip is considered to be one passenger per trip. Required: a. Compute Muncey's break-even point in number of passenger-trips per month. b. How many passenger-trips per month must Muncey sell to earn $7,790 after taxes?
a. To compute Muncey's break-even point in number of passenger-trips per month, we need to determine the total cost and the contribution margin per passenger-trip.
Given:
- Boat capacity: 15 passengers
- Operating days per month: 20
- Price per passenger-trip: Not provided
- Cost information: Not provided
Since the price and cost information is not provided, we cannot directly calculate the break-even point. The break-even point is the level of sales at which the total revenue equals the total cost, resulting in zero profit or loss.
To determine the break-even point, we would need information on the fixed costs, variable costs per passenger-trip, and the price charged per passenger-trip.
b. Similarly, without the price per passenger-trip and the cost information, we cannot calculate the specific number of passenger-trips Muncey needs to sell to earn a target profit of $7,790 after taxes. The target profit calculation would require subtracting the total costs from the target profit to determine the required sales revenue.
To accurately compute the break-even point and the required number of passenger-trips, we would need additional information on the costs, pricing, and tax rates associated with Muncey Fishing Charters.
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Explain how land is similar or different from other resources that are used in agriculture.[Suggestion: Cite examples to strengthen your answer] [I expect at least half page typed double-spaced]
Land is a crucial resource in agriculture. Without land, agriculture will not be possible. Land plays a significant role in the agricultural sector as it is utilized for farming, raising livestock, and planting crops. The productivity of land can be significantly affected by various factors such as topography, soil quality, water supply, and weather conditions.
In this regard, land is different from other resources used in agriculture in several ways. Below are some of the differences between land and other resources that are used in agriculture.Land as a Resource in AgricultureUnlike other resources used in agriculture, land is a fixed asset. Land can neither be produced nor manufactured. Its supply is limited. The fixed nature of land implies that it cannot be expanded beyond its initial boundaries. As such, the amount of land available for agricultural purposes is finite. The supply of land is also affected by several factors, such as topography, which determines the physical characteristics of the land, such as the slope, terrain, and altitude. Soil quality, which affects the fertility of the land, and water supply, which determines the availability of water for agricultural purposes.Labor as a Resource in AgricultureLabor is another resource used in agriculture. Labor refers to the human effort used to produce goods and services. Labor is a variable resource in the sense that it can be increased or decreased depending on the level of production. Labor can be utilized for various activities, such as planting, harvesting, and tending to crops and livestock. Unlike land, labor can be augmented through training and education. The quality and quantity of labor available can also be influenced by the level of education and skills training provided to workers. For example, the use of advanced technology in agriculture requires skilled labor to operate, maintain, and repair the machinery.Capital as a Resource in Agriculture; Capital is also an essential resource used in agriculture. Capital refers to the financial resources that are used to acquire the necessary inputs, such as seeds, fertilizers, pesticides, and machinery. Capital is also a variable resource as it can be increased or decreased depending on the level of production. The availability of capital can be affected by various factors, such as interest rates, the availability of credit, and government policies that regulate the financial sector. Capital is also subject to depreciation, which affects its value over time. For example, machinery used in agriculture depreciates over time due to wear and tear.ConclusionIn conclusion, land is a crucial resource in agriculture.It is a fixed asset that cannot be produced or manufactured. Unlike other resources used in agriculture, such as labor and capital, the supply of land is finite. The productivity of land can be influenced by various factors such as topography, soil quality, water supply, and weather conditions. The differences between land and other resources used in agriculture imply that a comprehensive understanding of the characteristics of these resources is essential in developing strategies to optimize their use.
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McKenna Motors is expected to pay a $4 per-share dividend at the end of the year (D1=$4). The stock sells for $16 per share and its required rate of return is 28.5 percent. The dividend is expected to grow at a constant rate, g. forever. What is the growth rate, g, for this stock? 3.50% 3.30% 3.70% 3.90% 4.10%
The growth rate, g, for this stock is 3.5%.
To calculate the growth rate, g, for McKenna Motors' stock, we can use the Gordon Growth Model. This model assumes that the dividend grows at a constant rate forever.
The formula for the Gordon Growth Model is:
P0 = D1 / (r - g)
Where:
P0 = Current stock price
D1 = Expected dividend at the end of the year
r = Required rate of return
g = Growth rate of the dividend
In this case, we are given the following information:
D1 = $4
P0 = $16
r = 28.5%
We need to solve for g. Rearranging the formula, we have:
g = r - (D1 / P0)
Substituting the values into the formula:
g = 0.285 - (4 / 16) = 0.285 - 0.25 = 0.035
Therefore, the growth rate, g, for this stock is 3.5%.
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Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2021. Power Drive has the following transactions affecting stockholders' equity in 2021 March May June 1 Issues 57,000 additional shares of $1 par value common stock for $54 per share. 10 Purchases 5,200 shares of treasury stock for $57 per share.. 1 Declares a cash dividend of $1.60 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,600 shares of treasury stock purchased on May 10 for $62 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021 Common Stock. $100,000; Additional Paid-in Capital, $4,700,000, and Retained Earnings, $2,200,000. Net income for the year ended December 31, 2021, is $620,000. Required: Prepare the statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) Balance, January 1 Issue common stock Purchase treasury stocki Declare dividends Resell treasury stock Net income Balance, December 31 POWER DRIVE CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2021 Additional Retained Common Stock Paid in Capital Earnings 4,700,000 $ 2,200,000 $ 100,000 $ $ $ 100,000 4,700,000 2,200.000 Total Treasury Stock Stockholders Equity 0 $ 7,000,000 7,000,000
The statement of stockholders' equity for Power Drive Corporation for the year ended December 31, 2021, shows a final balance of $157,000 in Common Stock, $4,700,000 in Additional Paid-in Capital, $2,820,000 in Retained Earnings, and a total stockholders' equity of $11,698,000.
POWER DRIVE CORPORATION Statement of Stockholders' Equity
For the Year Ended December 31, 2021
Common Stock Additional Paid-in Capital Retained Earnings Total
Balance, January 1, 2021, $100,000 $4,700,000 $2,200,000 $7,000,000
Issue common stock (March 1) 57,000 54 - 3,078,000
Purchase treasury stock (May 10) - - - -
Declare dividends (June 1) - - - -
Resell treasury stock (October 21) - - - -
Net income - - 620,000 620,000
Balance, December 31, 2021, $157,000 $4,700,000 $2,820,000 $11,698,000
The beginning balances on January 1, 2021, were as follows:
Common Stock: $100,000
Additional Paid-in Capital: $4,700,000
Retained Earnings: $2,200,000
On March 1, 2021, Power Drive Corporation issued 57,000 additional shares of $1 par value common stock for $54 per share. The total value of the common stock issued is calculated as follows: 57,000 shares * $54 per share = $3,078,000. This amount is added to the Additional Paid-in Capital account.
On May 10, 2021, Power Drive Corporation purchased 5,200 shares of treasury stock for $57 per share. However, since these shares were repurchased by the company, the Treasury Stock account is not affected.
On June 1, 2021, Power Drive Corporation declared a cash dividend of $1.60 per share to all stockholders of record on June 15. Since dividends are not paid on treasury stock, this transaction does not affect any of the stockholders' equity accounts.
On July 1, 2021, Power Drive Corporation paid the cash dividend declared on June 1. However, since dividends were not paid on treasury stock, this transaction does not affect any of the stockholders' equity accounts.
On October 21, 2021, Power Drive Corporation resold 2,600 shares of treasury stock purchased on May 10 for $62 per share. The total value of the treasury stock resold is calculated as follows: 2,600 shares * $62 per share = $161,200. This amount is deducted from the Treasury Stock account.
The net income for the year ended December 31, 2021, is $620,000. This amount is added to the Retained Earnings account.
The final balances on December 31, 2021, are as follows:
Common Stock: $157,000 ($100,000 + $57,000)
Additional Paid-in Capital: $4,700,000
Retained Earnings: $2,820,000 ($2,200,000 + $620,000)
Total Stockholders' Equity: $11,698,000 ($157,000 + $4,700,000 + $2,820,000)
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wary fer tectnicians is 412 per bour. B.T .0 how many shammacists and techncians are needed? What is tha Optinal Objective vave? A6ational thamuacists is / Vre hdditional Techriciarn to Rie What will be the se mast on the gaycoli? per nout. The cayrat cost utiog the cobengl palutita in part (a) is 1 fer nour, That, the payrel Cast wis qo salacy foe tect nictans is 512 per hour. Min P.T≥d How many ahamacists and technicians are retded? What is the Optmal objective Value? (b) Given curtent statnng levels and expected attriuce, how many new hires (pf any) must he made to resch the ievel recommended in part (a)? Mdditional phamocists fo hire Addeions Technicans to hire What wit be the impact on the payrol? The payrof cost using the current ievels of 65 phanmacists and tris tectikians is 1 per hive, T⿴囗ง. the payrei cost will get
The given data and information are: w = 412, B.T .0. Cost to hire a technician = 512 per hour. Cost to hire a shammacist = y per hour. Now we have to find out how many technicians and shammacists are required and the Optimal Objective Value.
The table for the total cost can be made as shown below: Total Payroll cost(per hour)T*1800 (30 hours per week) 0751y + 512T (per hour) 0628y + 512T (per hour) 1558y + 512T (per hour)2478y + 512T (per hour).Based on the information provided in the question, we know that if the cost of hiring technicians is 512 per hour and the payroll cost without salary for technicians is 751 per hour, then the payroll cost for 1 shammacist and T technicians will be 751 + y + 512T per hour.According to the given data, the optimal objective value will be minimized because it is required to minimize the total payroll cost while hiring technicians and shammacists.Therefore, to find the minimum total payroll cost, we must solve the following optimization problem:Minimize yT + 751 + 512T.
Subject to:y ≥ 0T ≥ 0The Optimal Objective Value is:751To determine how many pharmacists and technicians are required, we need to find the value of y and T from the above information.We know that the Optimal Objective Value is given as follows:yT + 751 + 512T = 751yT + 512T = 0T (y + 512) = 0T = 0 or y = −512. Thus, if T = 0, y = 751, which means that 751 shammacists are needed to reach the minimum payroll cost, but no technician is required.In case y = −512, T = 1.47.This means that 1.47 technicians are needed along with one shammacist to reach the minimum payroll cost.
The answer is:No technicians are required, and 751 shammacists are required. The Optimal Objective Value is 751.
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If the market price per share is $60 and the price-earnings ratio is 3, then income is Select one: O a. $20 O b. $25 O c. $30 O d. Unable to tell from data given
The market price per share, price-earnings ratio and income are related. Let's find out how.If the market price per share is $60 and the price-earnings ratio is 3, then the income is $20.
What is the price-earnings ratio?The price-earnings ratio (P/E ratio) compares a company's current share price with its earnings per share (EPS).The price-earnings ratio formula is as follows:P/E Ratio = Market Price Per Share / Earnings Per ShareNow, we can substitute the known variables into the formula and solve for the unknown. Since we are given the market price per share as $60 and the price-earnings ratio as 3, we can assume that the earnings per share are $20. This is because if the P/E ratio is 3, then the market price per share is 3 times the earnings per share, as shown below:P/E Ratio = Market Price Per Share / Earnings Per Share3 = $60 / Earnings Per ShareEarnings Per Share = $60 / 3Earnings Per Share = $20Therefore, the answer is option A. $20.
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You are provided some data about the market: The expected return of the market portfolio is 12.6%, the market's volatility is 18.3%, and the risk-free rate is 1.4%. If the beta of LEVI is 1.11, according to the CAPM, LEVI should have some expected return. However, you think that LEVI has an expected return of 11.4%. What do you think is the alpha of LEVI?
According to the Capital Asset Pricing Model (CAPM), the expected return of an asset is determined by the risk-free rate, the market's expected return, and the asset's beta. In this case, the market's expected return is 12.6%, the risk-free rate is 1.4%, and the beta of LEVI is 1.11.
To calculate the expected return of LEVI using CAPM, we can use the formula:
Expected Return of LEVI = Risk-Free Rate + (Beta of LEVI * (Market's Expected Return - Risk-Free Rate))
Substituting the given values into the formula:
Expected Return of LEVI = 1.4% + (1.11 * (12.6% - 1.4%))
Expected Return of LEVI = 1.4% + (1.11 * 11.2%)
Expected Return of LEVI = 1.4% + 12.432%
Expected Return of LEVI = 13.832%
However, you believe that the expected return of LEVI is 11.4%. To determine the alpha of LEVI, we can use the formula:
Alpha of LEVI = Expected Return of LEVI - (Risk-Free Rate + (Beta of LEVI * (Market's Expected Return - Risk-Free Rate)))
Substituting the given values into the formula:
Alpha of LEVI = 11.4% - (1.4% + (1.11 * (12.6% - 1.4%)))
Alpha of LEVI = 11.4% - (1.4% + (1.11 * 11.2%))
Alpha of LEVI = 11.4% - (1.4% + 12.432%)
Alpha of LEVI = 11.4% - 13.832%
Alpha of LEVI = -2.432%
Therefore, the alpha of LEVI is -2.432%.
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The University of Nebraska football stadium is the third largest city in the state of Nebraska on game days. The stadium has sold out every game since the late 1960s. The seating capacity is about 80,000 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $38.4 million in ticket sales. Required: 1. What is the average price per season ticket and average price per individual game ticket sold? 2. & 3. Record the advance collection of $38.4 million in ticket sales and the revenue earned after the first home game is completed. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 What is the average price per season ticket and average price per individual game ticket sold? Average price per season ticket Average price per individual game ticket Reg1 Req 2 and 3> Record the advance collection of $38.4 million in ticket sales and the revenue earned after the first home game is completed. (If no entr is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions.) View transaction list Journal entry worksheet 2 Record the advance collection in ticket sales. Note: Enter debits before credits. Transaction General Journal Debit Credit Clear entry View general journal Record entry Record the advance collection of $38.4 million in ticket sales and the revenue earned after the first home game is completed. (If no ent is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars not in millions.) View transaction list Journal entry worksheet < 2 Record the revenue earned after the first home game is completed. Note: Enter debits before credits. Transaction General Journal Debit 2 Record entry Clear entry Credit View general journal
To calculate the average price per season ticket, we need to divide the total ticket sales revenue by the number of season tickets sold. Since there are six home games, the number of season tickets sold would be 80,000/6 = 13,333.
Season ticket price = Ticket sales revenue / Number of season tickets sold= $38.4 million / 13,333 = $2,880Average price per season ticket = $2,880To calculate the average price per individual game ticket, we need to divide the total ticket sales revenue by the total number of game tickets sold.
Average price per individual game ticket = Ticket sales revenue / Number of game tickets sold= $38.4 million / 80,000 = $480.2. Record the advance collection in ticket sales:Debit: Cash - $38,400,000Credit: Unearned Ticket Revenue - $38,400,0003. Record the revenue earned after the first home game is completed:Debit: Unearned Ticket Revenue - $6,400,000Credit: Ticket Revenue - $6,400,000 No journal entry is needed for the cash received from ticket sales as it has already been recorded in the first journal entry.
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A.
The demand for a agribusiness monoposonist is P = 100 - 0.25Q, the average expenditure is: AE = 0.5Q and the marginal expenditure is: ME = Q, where the quantity is in thousand units. The monopsonist will purchase how many thousand units?
Group of answer choices
A. 80
B. 48
C. 26
D. 64
The monopsonist will purchase 64 thousand units.
To determine the quantity of units the monopsonist will purchase, we need to find the equilibrium point where the average expenditure (AE) equals the marginal expenditure (ME).
Given that AE = 0.5Q and ME = Q, we can set the equations equal to each other and solve for Q:
0.5Q = Q
Simplifying the equation, we get:
0.5Q - Q = 0
-0.5Q = 0
Q = 0 / -0.5
Q = 0
Since the quantity cannot be zero in this context, we need to consider the alternative equilibrium point where the demand function intersects the marginal expenditure.
The demand function is P = 100 - 0.25Q, and the marginal expenditure is Q. Setting these two equal, we have:
100 - 0.25Q = Q
Simplifying the equation, we get:
100 = 1.25Q
Q = 100 / 1.25
Q = 80
Therefore, the monopsonist will purchase 80 thousand units, which corresponds to option A.
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You applied for a job with a local bank. As part of its evaluation process, you are asked to take a written test. Show your workings in formulas and round your final answers to 2 decimal places with the units of either "$", "%" or "years old" for the following questions:
(a) CC Corporation invested $250,000 at 6 percent interest, compounded quarterly for 5 years. How much "interest on interest" did the company earn over this period of time?
(b) Determine the interest rate (APR) that would cause $400 to grow to $664.68 in five years with monthly compounding.
(c) Jason and Simon are twins. Today is their 33rd birthday. They both invest in a retirement account with 8 percent compounded annually. Jason began to deposit $30,000 per year on his 16th birthday for a total of 10 annual deposits. Jason will then do nothing by putting aside the account balance till his planned retirement age. On the other hand, Simon just decided to save annually for his retirement fund, starting his first deposit one year from now till his planned retirement age.
i. Calculate Jason’s current retirement account balance.
ii. At the time when Simon places his 15th annual deposit, how old will Simon be?
iii. If Simon plans to accumulate $5 million on his 65th birthday (i.e. his planned retirement age), what should be the amount of his annual deposit?
(d) Anson invests $1,000 at the beginning of each month (the first payment is made today) for the next 4 years in an account that pays 6% annual interest, compounded monthly. Draw the necessary timeline and determine the account balance at the end of year 4.
At the time when Simon places his 15th annual deposit, he will be (33 - 1) - 15 = 17 years old.
(a) To calculate the "interest on interest" earned by CC Corporation, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the total amount, P is the principal, r is the interest rate, n is the number of compounding periods per year, and t is the number of years. Subtracting the principal from the total amount will give us the "interest on interest" earned.
(b) To determine the interest rate (APR), we can use the formula A = P(1 + r/n)^(nt) and rearrange it to solve for r. Plug in the given values and solve for r.
(c) (i) To calculate Jason's current retirement account balance, we can use the formula for compound interest. We need to calculate the future value of 10 annual deposits of $30,000 each, compounded annually at 8% for 17 years (from his 16th birthday to his current age of 33).
(ii) Simon will be one year younger than Jason, so, at the time when Simon places his 15th annual deposit, he will be (33 - 1) - 15 = 17 years old.
(iii) To accumulate $5 million on his 65th birthday, Simon can use the formula for future value and solve for the annual deposit needed.
(d) Drawing a timeline and using the formula for the future value of an ordinary annuity, we can calculate the account balance at the end of year 4 by making monthly payments of $1,000, compounded monthly at 6% annual interest rate.
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In the circular flow of income and expenditure model... A. the level of Income for factors of production used to produce goods and services equals the spending on public goods and services. B. the spending by firms on the factor markets equals the spending by government in the good market. C. the level of taxes collected by government equals government spending on the factors of production to produce public goods and services. D. the level of sales income by firms equals the level of spending by households in the goods market.
Option D is the correct answer. In the circular flow of income and expenditure model, the level of sales income by firms equals the level of spending by households in the goods market.
What is the circular flow of income and expenditure model? The circular flow of income and expenditure is an economic model that depicts the movement of goods and services, factors of production, and income among the main players in an economy.
The four main participants in the circular flow of income and expenditure model are households, businesses, governments, and international participants. Households earn income by selling their labor to businesses, which use it to produce goods and services, which they then sell to households. Business income comes from the sale of goods and services, which are then used to pay wages, rent, and profits to households.
Governments collect taxes and spend on public goods and services, which households and businesses utilize. Lastly, international participants trade goods, services, and capital with domestic participants. In this model, the level of sales income by firms equals the level of spending by households in the goods market.
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how can I mark total net benefit in margina cost and
benefit curve?
In order to mark the total net benefit in a marginal cost and benefit curve, you need to follow the following steps:Step 1: Identify the equilibrium point in the marginal cost and benefit curve.
This is the point where the marginal cost curve intersects with the marginal benefit curve. This point indicates the optimal level of output where the marginal cost is equal to the marginal benefit. Step 2: Calculate the total cost and total benefit at the equilibrium point.
Total cost can be calculated by multiplying the quantity of output by the marginal cost at the equilibrium point. Total benefit can be calculated by multiplying the quantity of output by the marginal benefit at the equilibrium point. Step 3: Calculate the total net benefit by subtracting the total cost from the total benefit.
If the total net benefit is positive, then the decision to produce the given level of output is considered profitable. If the total net benefit is negative, then the decision is not profitable. The total net benefit can be marked on the vertical axis of the marginal cost and benefit curve to indicate the maximum amount of profit that can be obtained at the optimal level of output. In conclusion, marking the total net benefit in a marginal cost and benefit curve is essential to understand the profitability of a particular level of output.
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What is hedgehog concept ? How a leader can find his personal hedgehog? Support answer from literature?good to great book by jim collins?
The hedgehog concept from "Good to Great" involves finding the intersection of passion, excellence, and economic drivers. Leaders can discover their personal hedgehog by exploring their passions, strengths, and unique value proposition.
To find their personal hedgehog concept, a leader should first identify their passions. This involves reflecting on what truly excites and motivates them, both personally and professionally.
Next, they should assess their areas of excellence, identifying where they have the potential to be the best in the world or stand out among their competitors.
Lastly, they need to evaluate the economic or resource engine that supports their pursuits, considering the sustainability and viability of their chosen path.
By aligning their passions, strengths, and economic opportunities, a leader can discover their personal hedgehog concept. This concept represents the sweet spot where their true potential lies, allowing them to make a significant impact and achieve long-term success. By focusing on their hedgehog concept, leaders can channel their efforts and resources towards activities that align with their core strengths and drive sustainable growth.
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Economies of scale can produce a loss of control, do you think it is better for big companies to focus on Economies of scope instead of Economies of scale?
Economies of scale refer to the phenomenon where as a company's output increases, its average cost of production decreases. This is due to the spreading of fixed costs across a greater number of units, leading to lower per-unit costs.
Economies of scope, on the other hand, refer to the benefits a company can reap by diversifying its product range. This could include sharing resources such as marketing, distribution, and research and development across multiple products, leading to greater efficiencies and cost savings.
There is no clear-cut answer to whether big companies should focus on economies of scope or economies of scale, as the choice will depend on a variety of factors such as industry dynamics, competitive pressures, and the specific goals of the company.
However, it is worth noting that relying solely on economies of scale can lead to a loss of control, as the company becomes too focused on production efficiency at the expense of other factors such as product innovation and customer service. This can ultimately harm the company's long-term prospects.
On the other hand, pursuing economies of scope can lead to greater flexibility and resilience, as the company is less reliant on a single product or market. This can also create opportunities for revenue growth and expansion into new markets, which can be particularly valuable in rapidly changing industries.
Overall, while economies of scale can be an important consideration for large companies looking to reduce costs, it is also important to balance this with a focus on economies of scope and other factors that contribute to long-term success. The specific strategy adopted will depend on a range of factors, and may evolve over time as the company's needs and circumstances change.
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Nick lives in a city and parks his car on the street in his neighborhood. One morning, he discovered that his car had been stolen. Nick filed a police report and an auto insurance claim. Which one of the following types of auto claim would Nick file?
Nick would file a comprehensive auto insurance claim. In the given scenario, where Nick's car was stolen, he would file a comprehensive auto insurance claim.
Comprehensive insurance covers damages to a vehicle that are not a result of a collision, such as theft, vandalism, natural disasters, or other non-collision-related incidents. Since Nick's car was stolen, it falls under the coverage provided by comprehensive insurance.
It's important to note that if Nick had only purchased liability insurance, which covers damages to other parties in the event of an accident, the theft of his car would not be covered. However, comprehensive insurance specifically covers theft and would provide coverage in this situation.
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Let's keep the same setup as for the last assignment question on comparative advantage (unit costs, etc.), so we have the following: Consider two countries, Home and Foreign, which each produce Airplanes and Clothing. Denote values for Foreign with a : Assume they have the following unit labor costs and quantities of labor. Home: C A
=4 (unit labor cost of producing an airplane) C C
=2 (unit labor cost of producing a unit of clothing) L=200 (total amount of labor) Foreign: C A ′
=20 (unit labor cost of producing an airplane) C C
=4 (unit labor cost of producing a unit of clothing) L ′
=400 (total amount of labor) Draw the PPF and CPF for both Home and Foreign at P A
/P C
=4 (Home's should be the same as last assignment). Then, on the same diagrams, draw the new CPFs if P A
/P C
=3. Who benefits from this shift in the terms of trade? Would either country be better off closing to trade?
In this question, we need to consider two countries: Home and Foreign that produce Airplanes and Clothing. Below are the unit labor costs and quantities of labor for Home and Foreign countries.
Home: C A = 4 (unit labor cost of producing an airplane) C C = 2 (unit labor cost of producing a unit of clothing) L = 200 (total amount of labor)Foreign: C A' = 20 (unit labor cost of producing an airplane) C C' = 4 (unit labor cost of producing a unit of clothing) L' = 400 (total amount of labor)As given, the PPF and CPF for both Home and Foreign at P A/P C=4 is shown in the figure below:In the above figure, PPF for Home and Foreign countries are shown in blue and red respectively.
CPF for Home and Foreign countries are shown in green and orange respectively.The new CPFs for both Home and Foreign countries are shown below, when P A/P C=3:Now let's analyze who benefits from the shift in the terms of trade and whether either country is better off closing to trade or not.
Who benefits from this shift in the terms of trade?As we can see from the above figure, with the change in the terms of trade from P A/P C=4 to P A/P C=3, the world relative price of clothes falls. Due to this change in the terms of trade, Foreign is better off than before as it can now consume at a point that lies on a higher indifference curve. Also, Home is worse off than before as the terms of trade have turned against it.
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To achieve desired quality there will be cost spent by organizations, this cost can be determined as it is when Cost of conformance is higher than cost of nonconformance Cost of conformance is lower than cost of nonconformance Cost of non-conformance is equal to cost of conformance Cost of non-conformance equals zero
Achieving the desired quality by an organization requires a certain amount of cost, and this cost can be determined in different ways, namely cost of conformance, cost of nonconformance, cost of nonconformance that equals zero, or cost of conformance that is lower than the cost of nonconformance.
Or cost of conformance that is higher than the cost of nonconformance. The cost of quality is always incurred by the organization in either case and cannot be avoided, so the optimal cost is the one that results in the desired quality.There are two types of costs associated with quality control, which are the cost of conformance and the cost of nonconformance. The cost of conformance refers to the cost incurred by the organization when producing a product or service that conforms to certain quality requirements and specifications.
The cost of nonconformance refers to the cost incurred by the organization when a product or service fails to meet certain quality requirements and specifications, resulting in rework, repair, replacement, or customer complaints. To optimize the cost of quality, organizations must determine the optimal balance between the cost of conformance and the cost of nonconformance.
In most cases, it is better to spend more on conformance than on nonconformance because it is more cost-effective to prevent quality issues from occurring in the first place than to fix them after the fact. Therefore, if the cost of conformance is lower than the cost of nonconformance.
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Outline the four basic shapes of population pyramids. What do they indicate?
The four basic shapes of population pyramids are Expansive (Triangular) Population Pyramid, Constrictive (Reverse Triangle) Population Pyramid, Stationary (Columnar) Population Pyramid, Constrictive-Expansive (Pentagonal) Population Pyramid.
1. Expansive (Triangular) Population Pyramid:
- It has a wide base and narrows towards the top, resembling a triangle.
- Indicates a high birth rate and a large population of young individuals.
- Suggests a growing population with a potential for future population growth.
- Commonly found in developing countries with high fertility rates and limited access to healthcare and education.
2. Constrictive (Reverse Triangle) Population Pyramid:
- It has a narrow base and widens towards the top, resembling an inverted triangle.
- Indicates a low birth rate and a smaller population of young individuals.
- Suggests a declining population and potential population decline in the future.
- Commonly found in developed countries with low fertility rates, improved healthcare, and increased life expectancy.
3. Stationary (Columnar) Population Pyramid:
- It has nearly uniform width across all age groups, resembling a column or rectangle.
- Indicates a relatively stable population with consistent birth and death rates.
- Suggests a balance between the younger and older population cohorts.
- Commonly found in countries with moderate fertility rates and stable socioeconomic conditions.
4. Constrictive-Expansive (Pentagonal) Population Pyramid:
- It has a narrow base, widens in the middle, and narrows towards the top, resembling a pentagon.
- Indicates a fluctuating population with a decline in birth rates and a significant older population.
- Suggests a transition from a high to a low birth rate and an aging population.
- Commonly found in countries experiencing demographic shifts, where declining fertility rates and increasing life expectancy contribute to population aging.
Population pyramids provide valuable insights into the demographic composition and dynamics of a population. They indicate the age and gender distribution within a population and can provide information about fertility rates, mortality rates, and life expectancy. By analyzing the shape of a population pyramid, policymakers and researchers can understand the current and future trends in population growth, dependency ratios, labor force dynamics, and potential social and economic implications.
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The current Public Expenditure and Financial Accountability (PEFA) assessment of a country on three Pillars: Budget Reliability, Accounting and Finance and External Scrutiny and Audit reveals the following scores. Pillars Budget Reliability Accounting and Reporting External Scrutiny and Audit Indicators Aggregate expenditure outturn Expenditure composition outturn Revenue outturn Financial data integrity In-year budget reports Annual financial reports External audit Legislative scrutiny of audit reports Scores D D+ C D D D B+ B+ You may refer to the PEFA framework https://www.pefa.org/resources for further explanations. Required: a) Explain each of the three pillars considered in the assessment. (3 marks) b) Discuss the strengths and weaknesses in the public financial management of the country in relation to the three pillars under consideration. (8 marks) c) Recommend ways of consolidating the strengths and improving the weaknesses you have identified in question (b) above.
PEFA assessments are conducted to assess the effectiveness of public financial management and institutions in a country.
Budget Reliability: This refers to the credibility of the budget. It considers whether the budget is realistic and reliable. Indicators such as the aggregate expenditure outturn, expenditure composition outturn, and revenue outturn are assessed.
Accounting and Reporting: This pillar considers whether financial management information is accurate, comprehensive, timely, and reliable. It assesses the financial data integrity, in-year budget reports, and annual financial reports.
External Scrutiny and Audit: This pillar evaluates the extent to which the budget and financial management are subject to scrutiny and audit by external entities. It assesses the external audit and legislative scrutiny of audit reports.
b) Strengths and weaknesses in the public financial management of the country in relation to the three pillars under consideration:
Accounting and Reporting: The in-year budget reports need improvement. This can be achieved by introducing an automated financial management system to capture and report budget execution. The annual financial reports require further improvement. This can be achieved by introducing an independent audit of financial statements. External Scrutiny and Audit: The external audit requires further improvement.
Therefore, This can be achieved by introducing an independent audit of financial statements and strengthening the capacity of the external audit office.
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how is the securities and exchange commission (SEC) involved in setting accounting standards in the us
a) it reviews financial statements for compliance with existing standards
b) it coordinates with the ACPA to set accounting standards
c)
it has legal authority to stablish standards for conpanies under its jurisdiction
d) it requires all conpanies listed on an exchange to submit to an annual SEC audit
The Securities and Exchange Commission (SEC) is a regulatory agency of the U.S. government that oversees the securities markets and enforces securities laws. The SEC is also involved in setting accounting standards in the U.S. in the following ways:
a) It reviews financial statements for compliance with existing standards The SEC has the authority to review the financial statements of publicly traded companies to ensure that they comply with generally accepted accounting principles (GAAP). This is done through the Division of Corporation Finance, which is responsible for reviewing and monitoring companies’ financial statements and disclosures.
b) It coordinates with the ACPA to set accounting standardsThe SEC works closely with the Financial Accounting Standards Board (FASB), which is responsible for setting GAAP. The FASB is an independent organization that establishes accounting standards for public and private companies in the U.S. The SEC has the power to review and approve or reject any new accounting standards proposed by the FASB.
c) It has legal authority to establish standards for companies under its jurisdictionThe SEC has the legal authority to establish accounting standards for companies under its jurisdiction, which includes publicly traded companies and other companies that sell securities to the public. The SEC can also require companies to comply with certain accounting and reporting requirements.
d) It requires all companies listed on an exchange to submit to an annual SEC auditThe SEC requires all companies listed on a U.S. stock exchange to submit to an annual audit by an independent registered public accounting firm. This audit is designed to ensure that companies are complying with securities laws and accounting standards and that their financial statements are accurate and complete. The SEC also has the authority to investigate and sanction companies that violate securities laws or accounting standards.
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If Y=K 0.3L L0.7, then the per-worker production function is a. Y=F(K/L) b. Y/L=(K/L) 0.7
c. Y/L=(K/L)0.5
d. Y/L=(K/L) 0.3
All of the following transactions that took place in 2009 would be included in GDP for 2009 except the pis a. ticket to see the movie 2001 . b. 2001 Jeep Cherokee. c. year 2010 calendar printed in 2009. d. book titled The Year 3000 that was printed in 2009.
Per-worker production function: Per-worker production function can be defined as the output that is produced by a single worker during a given period of time. It is also called per capita production function. The per-worker production function can be calculated by dividing total output (Y) by the total number of workers (L).
Per-Worker Production Function = Y/L. If we take L as common from the above equation, we get, Y/L=(K/L)0.4. Thus, option B is the correct answer. Transactions included in GDP: It includes all transactions that take place within the country's borders during the year. The transactions that are excluded from the GDP are those which don't involve production within the country's borders or transactions that involve the exchange of goods or services that were produced in an earlier period of time. Option d) book titled The Year 3000 that was printed in 2009 would not be included in GDP for 2009 because it was not produced in 2009 but in 2009 calendar printed in 2009, ticket to see the movie 2001, 2001 .
Jeep Cherokee took place within the country's borders during 2009 and involves the production of goods or services within the country's borders during the year. Gross Domestic Product (GDP) is the value of all final goods and services produced in a country in a given time period.
Y/L = K^0.3 L^0.7/L Y/L = K^0.3 L^(-0.3+0.7)/L Y/L = K^0.3 L^0.4.
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If a firm issues $5 milhon of commercial paper with a maturity of three months at an annual interest rate of 8%, the proceeds of the issue are: 13.$4,900,000 b. $4,600,000. c. $4,901,961. d. 94,629,630
Commercial paper is short-term promissory notes issued by companies. It is usually issued by large corporations or financial institutions to finance short-term debt obligations.
A firm issues $5 million of commercial paper with a maturity of three months at an annual interest rate of 8%. The proceeds of the issue are as follows:The formula to calculate the proceeds of the issue is as follows:Proceeds of the issue = Face value of commercial paper - InterestFor instance, in this example, the face value of the commercial paper is $5 million.
Interest payable = (Face value of commercial paper x Annual interest rate x Maturity period)/365The interest payable in this example is calculated as follows:Interest payable = (5,000,000 x 8% x 90)/365Interest payable = $98,630The proceeds of the issue can now be calculated as follows:Proceeds of the issue = 5,000,000 - 98,630Proceeds of the issue = $4,901,370.Therefore, the correct option is C. $4,901,961.
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What are the costs and benefits of each of the three major organizational forms? Why do you think that various hybrid forms of business organizations have proven so successful?
The three major organizational forms are sole proprietorship, partnership, and corporation. Each of these organizational forms has its costs and benefits. The proprietor is the only owner and has complete control over all decisions.
Let us look at each of them individually.
Sole Proprietorship Costs: One of the main disadvantages of this form is the unlimited liability of the owner. The proprietor of the company is personally responsible for all debts of the business. This means that if the business is sued or can’t pay its bills, the owner’s personal assets can be seized to pay the debts.
Partnership Costs: Unlimited liability is also a disadvantage of this form of organization. Partners are personally responsible for all the debts of the business. This means that if the business is sued or can’t pay its bills, the partners’ personal assets can be seized to pay the debts.
Corporation Costs: One of the disadvantages of this form of organization is that it’s expensive to set up and operate. It requires a lot of paperwork, legal filings, and compliance with various regulations.
Hybrid forms of business organizations have become successful because they allow companies to take advantage of the benefits of multiple forms while minimizing the costs. For example, a limited liability partnership combines the benefits of a partnership and a corporation. It provides limited liability for the partners and avoids double taxation.
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