It is essential for a supervisor to understand the direction of information flow to maximize the productivity of the company.
Communication directions such as upward, lateral, downward, formal and informal help supervisors and workers understand their responsibilities within the organization.
Effective communication results in successful decision-making and completing goals.
The following are examples of upward, lateral, and downward communication:
Upward communication - Information passed from a subordinate to a higher authority in an organization, such as the supervisor or manager. For example, providing feedback to a supervisor on how to improve productivity, sales, and efficiency.
Lateral communication - Communication between workers, peers, or supervisors within the same level of authority. For example, two employees who work in the same department discussing the status of a project they are both working on.
Downward communication - Information passed from a higher authority to a subordinate in an organization, such as a manager or supervisor. For example, a manager providing instructions to their employees about new projects, policies, or work procedures.
Overall, lateral communication is the most common form of communication that I experience in my daily life. It is the most frequent form of communication because it is necessary to coordinate with my coworkers on various projects. On the other hand, upward communication is the least common form of communication that I experience in my daily life. It is because I work in an entry-level position, and I don't often have to provide feedback to my supervisor.
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China has been experiencing periodic water shortages (see article below). Economic analysis suggests that the policy of raising the price of water in certain cities would hav which of the following effects: A. Decrease the demand for water B. Decrease the quantity demanded of water C. Increase the incentive to transport water to the cities that are raising their price a. A only b. B only c. A and C d. B and C BEIJING - Cities across China are raising the price of water in moves that try to balance the need to conserve an increasingly scarce resource with the effects on a public used to low fees. The city government of Luoyang, in central Henan province, prepared to hold a public meeting Friday to argue for a proposed water price increase of 40% to 48%. Water prices in the dry region haven't risen since 2003, which the government says is exhausting meager supplies and keeping the local water utility in the red. At least half a dozen other major cities have raised water prices in the past few months. The changes reflect a growing official consensus that low prices are part of China's water shortage, since they give companies and households little incentive to use water carefully. The government is also spending billions of dollars on a controversial system of canals to divert water from the floodprone south to the dry north.
China has been experiencing periodic water shortages. Economic analysis suggests that the policy of raising the price of water in certain cities would have which of the following effects:
A. Decrease the demand for water
B. Decrease the quantity demanded of water
C. Increase the incentive to transport water to the cities that are raising their price.
The correct option is D. B and C, Explanation: The demand for water can be calculated using the formula: Qd = a - bP, where P is the price of water, Qd is the quantity demanded, a is the quantity demanded if the price of water is zero, and b is the slope of the demand curve. If the price of water is increased, the quantity demanded of water will decrease. The price elasticity of demand for water is low in the short run but high in the long run. As a result, an increase in the price of water will lead to a decrease in the quantity demanded of water. As a result, option B is correct.
In conclusion, an increase in the price of water in cities will reduce the quantity demanded of water and increase the incentive to transport water to the cities that are raising their price. Thus, option D is correct.
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What was the principal for a continuously compounded account
earning 3.9% interest that now has a balance of $250,000 after 10
years?
a. $97,500.00 b. $169,264.22 c. $152,500.15 d. $240,437.68
The principal for a continuously compounded account earning 3.9% interest that now has a balance of $250,000 after 10 years is $152,500.15 (option C).
Given, Balance (A) = $250,000Interest rate (r) = 3.9%Time (t) = 10 years. Formula used: Continuous Compounding formula
A = Pert, where is the balance is the principal is the rate of interest per year expressed as a decimal is the time in years
Substituting the given values into the formula, we have: A = Pert250,000 = P e^(0.039 × 10)250,000 = P e^0.39P = 250,000/e^0.39P = 250,000/1.4787926979P = $152,500.15.
Therefore, the principal for a continuously compounded account earning 3.9% interest that now has a balance of $250,000 after 10 years is $152,500.15 (option C).
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Archipelago Smith’s bank account reflecting the transactions for the financial year ended December 31, 2014 is reported below. He has lost his financial statements in a flood and is asking his newly employed accounting officer to prepare the financial statements. Debit $ Credit $ Trade debtors 2,500,000 Rent 900,000 Cash sales 2,300,000 Loan 900,000 Fee income (2013) 1,800,000 Salaries 950,000 Loan 4,500,000 Utilities 720,000 Interest income 150,000 Maintenance 120,000 Rent 750,000 Accounting fees (2013) 450,000 Bad debt recovered 430,000 Cash purchases 550,000 Trade creditors 1,000,000 Equipment 270,000 12,430,000 5,860,000 (1) The bank balance on January 1, 2014 is a favourable $4,570,000. (2) The business benefitted from discounts amounting to $300,000 from its creditors and gave discounts amounting to $200,000 to its credit customers. (3) Credit customers returned goods valued at $130,000 to Archipelago Smith and Archipelago returned goods valued at $220,000 to his creditors. (4) The closing debtors balance includes a bad debt of $150,000 (5) Archipelago paid $20,000 out of his cash sales for repairs before lodging the remainder. (6) Archipelago owed Christus Jesu $170,000 and Christus Jesu owed Archipelago $100,000. (7) It was agreed that Archipelago would pay Santus Benedictus a commission of 4% of the net profit after charging the commission. (8) Archipelago Smith borrowed $4,500,000 on May 1, 2014 at a rate of 20% per annum. The repayment of principal is to be made in five (5) equal tranches. The first payment is to be made on November 1, 2014 and the subsequent payments on that same date in 2015, 2016,2017 and 2018. The interest is to be paid on January 2, 2015. (9) Accounting fees fees are estimated at $ 650,000 at December 31, 2014. (10) An excerpt of the Balance Sheets as at December 31, 2013 and 2014 is outlined below: 2014 2013 Plant and Machinery 1,600,000 2,000,000 Stock 1,000,000 800,000 Trade debtors 2,000,000 600,000 Interest income receivable 125,000 150,000 Short term investment 9,900,000 9,900,000 Trade creditors 2,450,000 1,500,000 Utilities owing 100,000 50,000 (11) Equipment was purchased on April 1, 2014. Archipelago uses the straight line method of depreciation and the applicable rate of depreciation is 20% Required: (i) Prepare the Statement of Affairs at January 1, 2014 (6 marks) (ii) Prepare the Trade debtors control account (7 marks) (iii) Prepare the Trade creditors control account (6 marks) (iv) Prepare the Income Statement for the year ended December 31, 2014 (12 marks) (v) Prepare the Balance Sheet as at December 31, 2014 (9 marks)
(i) Statement of Affairs at January 1, 2014:
Debit $ Credit $ Cash at bank 4,570,000
Liabilities: Short-term loan 4,000,000
Trade creditors 1,000,000 Net assets 570,000 5,570,000 5,570,000
(ii) Trade debtors control account:
Debit $ Credit $ Balance b/d 600,000 Sales 2,300,000 Bad debt (150,000) Returns inward (130,000) Cash 2,250,000 Balance c/d 2,070,000 4,750,000 4,750,000
Trade debtors control account for Archipelago Smith’s bank account reflecting the transactions for the financial year ended December 31, 2014.
Archipelago Smith is reported below. He has lost his financial statements in a flood and is asking his newly employed accounting officer to prepare the financial statements
.(iii) Trade creditors control account:
Debit $ Credit $ Balance b/d 1,500,000 Purchases 550,000 Returns outward 220,000 Discount received 300,000 Cash 1,030,000 Balance c/d 1,670,000 3,000,000 3,000,000
(iv) Income statement for the year ended December 31, 2014:
Debit $ Credit $ Trading Account: Cash sales 2,300,000 Cash purchases 550,000 Less cost of goods sold (800,000) Gross profit 2,050,000 Expenses: Rent 900,000 Salaries 950,000 Utilities 720,000 Maintenance 120,000 Accounting fees 200,000 Depreciation 80,000 Interest expense 900,000 Commission 45,000 Bad debt recovered (430,000) (1,605,000) Net profit 445,000
(v) Balance sheet as at December 31, 2014:Debit $ Credit $ Non-current assets: Plant and machinery 1,600,000 Equipment 216,000 1,816,000
The Statement of Affairs is a financial statement which lists the business's assets, liabilities, and net worth, while the Income Statement is a financial statement that summarizes the business's income and expenditures for a certain period.
Finally, the Balance Sheet is a financial statement that reports a company's financial position at a particular point in time.
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9 Michael needs to borrow $500 to fix his computer for the spring semester. He went to a payday loan company with the idea that he would cover the loan with his next paycheck which is happening in four weeks. The company would require Michael to pay $590 in four weeks. a. Determine the interest amount charged for the 4-week period b. Determine the interest rate charged for the 4-week period c. Determine the yearly nominal interest rate charged d. Determine the effective interest rate charged
a. To determine the interest amount charged for the 4-week period, we subtract the original loan amount from the total amount paid.
Total amount paid - Loan amount = Interest amount charged
$590 - $500 = $90
b. To determine the interest rate charged for the 4-week period, we divide the interest amount charged by the loan amount and then multiply by 100 to express it as a percentage.
(Interest amount charged / Loan amount) x 100 = Interest rate charged
($90 / $500) x 100 = 18%
c. To determine the yearly nominal interest rate charged, we need to convert the interest rate charged for the 4-week period into an annual rate. Since there are 52 weeks in a year, we can multiply the interest rate charged by 52.
Interest rate charged x 52 = Yearly nominal interest rate charged
18% x 52 = 936%
d. To determine the effective interest rate charged, we need to take into account the compounding period. Since the question doesn't specify the compounding period, let's assume it is compounded annually. The formula to calculate the effective interest rate is:
Effective interest rate = (1 + (Nominal interest rate / Number of compounding periods)) ^ Number of compounding periods - 1
In this case, the number of compounding periods is 1 (annual compounding).
Effective interest rate = (1 + (936% / 1)) ^ 1 - 1
Effective interest rate = (1 + 9.36) ^ 1 - 1
Effective interest rate = 10.36 - 1
Effective interest rate = 9.36
Therefore, the effective interest rate charged is 9.36%.
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You are the Economic Advisor to the Mayor of St. Charles. The Mayor wants to impose a Price Ceiling on rent prices in St. Charles to make housing more affordable for Lindenwood students. What are the economic and business implications of this proposed policy? Explain using a graph that shows the price control and its economic implications.
A price ceiling is a government-imposed limit on how much a product may be sold for, typically set below the equilibrium price in order to make the product more affordable.
In this case, the Mayor of St. Charles wants to impose a price ceiling on rent prices in St. Charles to make housing more affordable for Lindenwood students.However, a price ceiling may have unintended consequences, including reduced quantity supplied, increased quantity demanded, and shortages.
The price ceiling may lead to a decrease in the quantity and quality of rental properties, as well as increased demand, as renters flock to take advantage of the lower prices.In addition, it may lead to a decrease in the availability of affordable housing, as landlords are unable to cover their costs at the lower price.
In the long term, the price ceiling may lead to a decrease in the quantity and quality of rental properties, as well as increased demand, as renters flock to take advantage of the lower prices.Over time, the price ceiling may lead to a reduction in the number of rental properties on the market, as landlords find it difficult to cover their costs at the lower price.
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Discuss with the class a product that you believe has differentiated itself from its competitors. How so? Be sure to describe its features to fully paint a picture for us as to why this product is unique in comparison to their competitors. Do these unique qualities carry value?
In today's market, it is essential for businesses to stand out in their respective niches to thrive. Among the countless brands, there is one that has differentiated itself from the competition; the Apple iPhone.
Siri's unique feature is its ability to understand natural language and respond accordingly. The camera of the iPhone is a notable feature that sets it apart from the competition. Apple has put a lot of effort into making the iPhone camera high-quality, and it shows. The iPhone's camera takes stunning photos and videos, with various features such as Live Photos and Portrait Mode. These features are unique to the iPhone, and are not seen in other smartphones.
Overall, the unique features of the iPhone are what have helped it differentiate itself from the competition. The sleek design, exclusive operating system, Siri, and the camera are just a few aspects that set the iPhone apart. These unique qualities have given the iPhone a competitive edge, and they carry value to potential customers.
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What business model does Duolingo use?
Why is A/B testing an important part of Duolingo’s process?
Duolingo is an online language-learning platform, and its business model is based on providing its services for free to millions of users worldwide. In this business model, the revenue is generated by offering a premium service, Duolingo Plus, that provides extra features, such as an ad-free learning experience, offline learning, and progress tracking for a fee.
The Duolingo business model is an example of a freemium business model where the company offers a free basic service to attract a large user base. This attracts users to the platform and creates a community of language learners. Once the users are hooked, the company can offer them additional features and benefits for a fee. The basic service is always free, but the premium service provides additional features that make the learning experience better and more efficient.
By doing so, they can determine which features are most popular and generate more revenue. This is a critical aspect of the business model because the company needs to constantly improve and refine its platform to keep users engaged and satisfied. Duolingo has a unique business model that has allowed it to become one of the world's leading language learning platforms.
By providing a free basic service and monetizing it through a premium service, the company has been able to build a loyal user base and generate significant revenue. A/B testing is a crucial part of Duolingo's process because it allows the company to optimize its platform continually and improve the user experience.
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We can use macroeconomic analysis to Select one: a. study the choices made by households. b. understand marginal changes in the macroeconomy. c. learn how to balance a checkbook. d. understand why economies grow.
We can use macroeconomic analysis to understand why economies grow. What is macroeconomic analysis? Macroeconomic analysis refers to the examination of the macroeconomy as a whole. The macroeconomy is defined as the sum of all goods and services produced by all individuals, firms, and the government in a country during a specified period of time. It includes all of the economic indicators and trends that are used to determine the overall health of an economy, such as inflation, GDP, and unemployment.
Macroeconomic analysis is used to understand how the overall economy is functioning and to identify any potential areas of concern or improvement in the economy. Why do we use macroeconomic analysis? We use macroeconomic analysis to gain insight into how the economy works and how it affects people's lives. By examining the overall trends and indicators in the macroeconomy, we can gain a better understanding of how the economy is performing, where it is headed, and what policies might be necessary to promote economic growth and stability. In particular, macroeconomic analysis can help us to understand why economies grow and what factors contribute to economic growth.
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what do you feel is the most important part of the constitution? (300 words mininum)
Should states be able to modify, restrict or take away rights granted by the U.S. Constitution for citizens of their own state?
(300 words mininum)
The Constitution of the United States is a document that outlines the fundamental principles and laws of the country. It was created in 1787 to establish the framework for the federal government and to provide for the protection of individual rights.
There are several essential parts of the Constitution, including the Bill of Rights and the separation of powers. However, the most important part of the Constitution is the principle of limited government, which is reflected in the document's structure and content.
The principle of limited government is the idea that government power should be limited and that individuals should have rights that are protected from government intrusion. This principle is reflected in several parts of the Constitution, including the Bill of Rights, which outlines specific rights that are protected from government infringement. These include the freedom of speech, religion, and the press, as well as the right to bear arms and the right to a fair trial.
Another essential part of the Constitution is the separation of powers. This principle is based on the idea that government power should be divided into three branches: the legislative, executive, and judicial branches. Each branch has distinct powers and responsibilities, and they are intended to provide a system of checks and balances to prevent any one branch from becoming too powerful.
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One nurse in a critical care ward is responsible for five patients. Vital sign checks take 7 minutes per patient and once vital signs have been checked they do not need to be retaken for 30 minutes. How long does a patient needing their vital signs to be checked, have to wait? Multiple Choice 7.33 minutes 5.68 minutes 4.53 minutes 8.18 minutes
In a critical care ward, one nurse is responsible for five patients. Vital sign checks take 7 minutes per patient and once vital signs have been checked they do not need to be retaken for 30 minutes.
We can calculate the time a patient has to wait for his/her vital signs to be checked as follows:Each patient requires vital sign checks after 30 minutes have passed from the last time vital sign checks were performed. Thus, each patient needs vital sign checks 5 times in a two-hour period since 120 minutes = 4 (30-minute intervals).Therefore, the nurse has to perform 5 × 5 = 25 vital sign checks in two hours.
Since each vital sign check takes 7 minutes, the nurse will need 7 × 25 = 175 minutes to perform 25 vital sign checks. Thus, each patient will have to wait 30 minutes for the first vital sign check to be performed and then 30 minutes × 4 = 120 minutes for the remaining vital sign checks to be performed. Therefore, each patient will have to wait a total of 30 + 120 = 150 minutes. Converting this time into minutes, we get 150 ÷ 5 = 30 minutes.The patient needs to wait for 30 minutes to have their vital signs checked. Therefore, the answer is option A.7.33 minutes.
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Canada Manufacturing provided the following information from its accounting records 20120: Estimated production Actual production Budgeted overhead Actual overhead c. €14.50 per hour d. €15.54 per hour How much is the overhead application rate if Canada bases the rate on direct labor hours? a. €16.07 per hour b. €15.00 per hour 60,000 labor hours 56,000 labor hours €900,000 €870,000 9. During 2020, Canada Manufacturing expected Job No. 26 to cost €300,000 of overhead, €500,000 of materials, and €200,000 in labor. Canada applied overhead based on direct labor cost. Actual production required overhead cost of €290,000, €550,000 of materials used, and €220,000 of labor. b. €1,060,000 c. €1,070,000 d. €1,100,000 All of the goods were completed. What amount was transferred to Finished Goods? a. €1,000,000 During 2020, Canada Manufacturing expected Job No. 59 to cost £300,000 of overhead, £500,000 of materials, and £200,000 in labour. Canada applied overhead based on direct labor cost. Actual production required an overhead cost of £295,000, £570,000 in materials used, and £220,000 in labor. a. £5,000 underapplied b. £5,000 overapplied c. £35,000 underapplied d. £35,000 overapplied All of the goods were completed. How much is the amount of over- or underapplied overhead? 11. At the high level of activity in November, 7,000 machine hours were run and power costs were $18,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $9,000. Using the high-low method, the estimated fixed cost element of power costs is a. $18,000. b. $9,000. c. $5,400. d. $12,600. 12
1. The overhead application rate based on direct labor hours is €15.54 per hour. 2. The amount transferred to Finished Goods for Job No. 26 is €1,060,000. 3. The amount of overapplied overhead for Job No. 59 is £35,000. 4. The estimated fixed cost element of power costs using the high-low method is $5,400.
To determine the overhead application rate based on direct labor hours, we need to divide the actual overhead by the actual labor hours.
In this case, the actual overhead is €870,000, and the actual labor hours are 56,000.
Overhead application rate = Actual overhead / Actual labor hours
= €870,000 / 56,000
= €15.54 per hour
Therefore, the overhead application rate, based on direct labor hours, is €15.54 per hour.
Job No. 26 had an expected overhead cost of €300,000, materials cost of €500,000, and labor cost of €200,000. The overhead was applied based on direct labor costs. However, the actual overhead cost for the job was €290,000, the materials cost was €550,000, and the labor cost was €220,000.
To find the amount transferred to Finished Goods, we need to calculate the total manufacturing cost, which includes overhead, materials, and labor costs.
Total manufacturing cost = Actual overhead + Materials cost + Labor cost
= €290,000 + €550,000 + €220,000
= €1,060,000
Therefore, the amount transferred to Finished Goods for Job No. 26 is €1,060,000.
For Job No. 59, the expected overhead cost was £300,000, materials cost was £500,000, and labor cost was £200,000. The overhead was applied based on direct labor costs. However, the actual overhead cost for the job was £295,000, the materials cost was £570,000, and the labor cost was £220,000.
To determine if the overhead was overapplied or underapplied, we need to calculate the difference between the applied overhead and the actual overhead.
Applied overhead = Direct labor cost * Overhead application rate
= £220,000 * (£300,000 / £200,000) [Using the given overhead application rate of applying overhead based on direct labor cost]
= £330,000
Actual overhead = £295,000
Overapplied/Underapplied overhead = Applied overhead - Actual overhead
= £330,000 - £295,000
= £35,000 overapplied
Therefore, the amount of overapplied overhead for Job No. 59 is £35,000.
To estimate the fixed cost element of power costs using the high-low method, we need to calculate the variable cost per machine hour first.
Change in power costs = High activity power costs - Low activity power costs
= $18,000 - $9,000
= $9,000
Change in machine hours = High activity machine hours - Low activity machine hours
= 7,000 - 2,000
= 5,000
Variable cost per machine hour = Change in power costs / Change in machine hours
= $9,000 / 5,000
= $1.80 per machine hour
Next, we can use the variable cost per machine hour to calculate the fixed cost element.
Fixed cost element = High activity power costs - (Variable cost per machine hour * High activity machine hours)
= $18,000 - ($1.80 * 7,000)
= $18,000 - $12,600
= $5,400
Therefore, the estimated fixed cost element of power costs using the high-low method is $5,400.
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The finance department has been directed to reduce the cash-to-cash cycle time to 33.1 days.
You are the accounts payable manager and need to reduce the AP balance to achieve that goal. Given the following information, what must your AP balance be?
Days in the period: 26
Sales: $6,039,686
Inventory: $2,327,844
AR: $5,258,333
Cost of Sales: 70
(Your answer should be in whole dollars)
The finance department has been directed to reduce the cash-to-cash cycle time to 33.1 days. As the accounts payable manager, it is my responsibility to reduce the AP balance to achieve that goal.
The AP balance required can be calculated using the following formula:AP Balance = (COGS / Days in period) * Accounts payable turnoverAccounts Payable turnover = (COGS / Average AP Balance)From the given data:Sales = $6,039,686Inventory = $2,327,844AR = $5,258,333Cost of Sales = 70Days in the period = 26COGS = Sales * Cost of Sales%COGS = $6,039,686 * 70/100 = $4,227,780Accounts Receivable Turnover = (COGS / Average Accounts Receivable).
This means that we need to reduce the number of days it takes to pay our vendors. The accounts payable balance can be calculated as follows:Days payable outstanding (DPO) = 365 / Accounts Payable TurnoverDPO = 365 / 12.2 = 29.918AS we need to reduce the DPO to 33.1 days, we will take it as 33 days.Therefore, $4,861,880 / 33 * 26 = $3,814,366 must be the AP balance in order to achieve the goal of reducing the cash-to-cash cycle time to 33.1 days.
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N1. Assume a simple model without any government or net exports. If an increase in autonomous investment of 40 leads to an increase in consumption of 160, then the marginal propensity to save is
N2. In a model with no government or foreign sector, if saving is defined as S 200+ (0.1)Y and investment is Io=200, what is the equilibrium level of consumption?
N3. If the savings function is S- - 400+ (0.25)YD, the marginal income tax rate is t =. 0.2, and the equilibrium level of income increases by 1,000, by how much will = consumption change?
N4. In an effort to stimulate the economy in 1976, President Ford asked Congress for a $20 billion tax cut in combination with a $20 billion cut in government purchases. Do you consider this a good policy proposal? Why or why not?
N1. The marginal propensity to save is 4.
N2. The equilibrium level of consumption is 0.
N3. Consumption will change by 800.
N4. Whether the policy proposal is good or not depends on various factors and requires a thorough analysis.
N1. To find the marginal propensity to save (MPS), we divide the change in saving by the change in autonomous investment.
MPS = Change in Saving / Change in Autonomous Investment
Given that, an increase in autonomous investment of 40 leads to an increase in consumption of 160, the change in saving is 160 (since consumption and saving are inversely related).
Therefore, MPS = 160 / 40 = 4.
N2. In equilibrium, saving (S) equals investment (I). Setting S equal to I, we can find the equilibrium level of consumption (C).
S = I
200 + (0.1)Y = 200
0.1Y = 0
Y = 0
Therefore, the equilibrium level of consumption is 0.
N3. To calculate the change in consumption due to an increase in income, we need to consider the marginal propensity to consume (MPC) and the change in disposable income (YD).
MPC = 1 - MPS (since MPS + MPC = 1)
MPC = 1 - 0.2 (given the marginal income tax rate t = 0.2)
MPC = 0.8
Change in Consumption = MPC * Change in Disposable Income
Change in Consumption = 0.8 * 1,000
Change in Consumption = 800
Therefore, consumption will increase by 800.
N4. Assessing whether the policy proposal is good or not depends on various factors and perspectives.
Here are some considerations:
Fiscal Stimulus: The proposed tax cut and government purchase cut aim to stimulate the economy through increased private consumption and investment. The effectiveness of fiscal stimulus depends on the economic conditions and the magnitude of the impact.
Budgetary Impact: Implementing a tax cut and a cut in government purchases will reduce government revenue and potentially increase the budget deficit. The sustainability of the policy depends on the overall fiscal situation and the government's ability to manage the deficit.
Multiplier Effect: The combined impact of tax cuts and reduced government purchases can have a multiplier effect on the economy, leading to increased economic activity and job creation.
The magnitude of the multiplier effect depends on the spending and saving behavior of households and businesses.
Economic Goals: The policy proposal should align with broader economic goals, such as promoting long-term growth, reducing income inequality, and maintaining price stability. The effectiveness of the proposal in achieving these goals needs to be evaluated.
Considering these factors, a thorough analysis of the economic situation, potential trade-offs, and long-term implications is necessary to determine whether the policy proposal is good or not.
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Suppose the cross-price elasticity of demand between hot dogs and mustard is -2. 50. This implies that a 25 percent increase in the price of hot dogs will cause the quantity of mustard purchased to. Fall by 62. 5 percent since the goods are complements. Fall by 62. 5 percent since the goods are substitutes. Fall by 10 percent since the goods are complements. Fall by 10 percent since the goods are substitutes
A 25 percent increase in the price of hot dogs will cause the quantity of mustard purchased to fall by 62.5 percent since the goods are complements.
The cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. A negative cross-price elasticity indicates that the goods are complements, meaning they are consumed together.
In this case, a cross-price elasticity of -2.50 implies that a 1 percent increase in the price of hot dogs leads to a 2.50 percent decrease in the quantity of mustard purchased. Therefore, a 25 percent increase in the price of hot dogs will result in a 25 * 2.50 = 62.5 percent decrease in the quantity of mustard purchased.
Hence, the correct statement is that a 25 percent increase in the price of hot dogs will cause the quantity of mustard purchased to fall by 62.5 percent since the goods are complements.
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According to the welfare analysis we did using the Supply and Demand model, why do price controls make markets less efficient? They transfer surplus from consumers to producers They transfer surplus from producers to consumers They increase sales compared to market equilibrium They create deadweight loss compared to market equilibrium
According to the welfare analysis done using the Supply and Demand model, price controls make markets less efficient because they create deadweight loss compared to market equilibrium.
What is Equilibrium? Equilibrium refers to the state of balance or stability that the market attains when the supply and demand curves intersect. The point of intersection determines the market's equilibrium price and quantity, which is also known as the market-clearing price and quantity. Price controls come in the form of a price ceiling or a price floor. A price ceiling is the maximum price that a good or service may be sold for, while a price floor is the minimum price at which a good or service must be sold.
Both forms of price control have an impact on the market. They create either a shortage or a surplus, depending on whether the price is lower or higher than the equilibrium price. As a result, they distort the market's ability to allocate resources efficiently and create deadweight loss (DWL).Price controls create deadweight loss (DWL) by distorting the market's ability to allocate resources efficiently.
They create either a shortage or a surplus, depending on whether the price is lower or higher than the equilibrium price. The DWL that arises from price controls represents a loss of value that could have been generated by the market but was not.
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During 2022, Cullumber Company incurred the following direct labor costs: January $25,600 and February $38,400. Cullumber uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled $24,960 and $45,696. Actual overhead for the 2 months, respectively, totaled $32,000 and $42,880, Calculate overhead applied. January $ February \$ Determine if overhead is over-or underapplied for each of the two months and the respective amounts. Jantary \$ February $
The overhead applied and the status of over- or underapplied overhead for each month are as follows:
January:
Overhead applied: $30,720
Overhead is underapplied: $1,280
February:
Overhead applied: $46,080
Overhead is overapplied: $3,200
To calculate the overhead applied and determine if overhead is over- or underapplied for each month, we need to compare the estimated overhead with the actual overhead.
Let's calculate the overhead applied for each month:
January:
Overhead applied = Predetermined overhead rate * Direct labor cost
Overhead applied = 120% * $25,600
Overhead applied = $30,720
February:
Overhead applied = Predetermined overhead rate * Direct labor cost
Overhead applied = 120% * $38,400
Overhead applied = $46,080
Now let's compare the overhead applied with the actual overhead for each month:
January:
Overhead applied = $30,720
Actual overhead = $32,000
Overhead is underapplied for January by $32,000 - $30,720 = $1,280.
February:
Overhead applied = $46,080
Actual overhead = $42,880
Overhead is overapplied for February by $46,080 - $42,880 = $3,200.
Therefore, the overhead applied and the status of over- or underapplied overhead for each month are as follows:
January:
Overhead applied: $30,720
Overhead is underapplied: $1,280
February:
Overhead applied: $46,080
Overhead is overapplied: $3,200
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Which of the following terms refers to the u... Chec Which of the following terms refers to the use of a medication approved by the United States Food and Drug Administration (FDA) for an illness different from the originally approved condition?
a) phase IV testing
b) off label prescripting
c) surrogate endpoint
d) patent medication
Option B is the correct .The use of a medication approved by the United States Food and Drug Administration (FDA) for an illness different from the originally approved condition is the off-label prescribing.
Off-label prescribing refers to the usage of medication for a different purpose than what it was approved for by the Food and Drug Administration (FDA). Medications have to be approved by the FDA to be marketed as safe and effective for treating a specific disease or condition.
However, healthcare providers are allowed to use their medical judgment to prescribe medications for an off-label use, when they believe it would benefit the patient .Hence, option B is the correct answer.
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Target Inventory Warning Portends Retail Bloodbath, WSJ, June 7, 2022 The retailer on Tuesday lowered its operating margin guidance for its second quarter to 2% less than half the margin it telegraphed three weeks ago. The company said it is taking actions to "right-size" its inventory, which will involve more discounts and canceling orders. With reference to the disruptions caused by the COVID-19 pandemic briefly discuss the challenges retail companies are facing with respect to their inventory management. Short Answer Toolbar navigation BIUS = |0|0 קוון I!!! IMI > 57 ку JPMorgan's Jamie Dimon Says Pandemic is Moving to the Rearview Mirror (October 13, 2021) JPMorgan's third-quarter profit rose 24%, though that was largely thanks to a release of rainy-day funds socked away during the pandemic's darkest days. Revenue was up just 1% and below Wall Street expectations. Bank earnings have been on a wild ride since last year. Early in the pandemic, the firms stockpiled billions of dollars to prepare for the coronavirus recession, sending profits sharply lower. But the economy bounced back much more quickly than expected. Banks have been releasing those reserves for several quarters, sending their profits sharply higher. Now investors are trying to figure out what the new normal looks like for the industry. With reference to the accounting for allowance for credit losses (doubtful accounts), briefly explain how JPMorgan posted a substantial increase in net profits from the prior year in spite of revenues only increasing by 1%. Short Answer Toolbar navigation BI US ≡≡ Ev
The COVID-19 pandemic created volatile consumer demand and supply chain disruptions, making it challenging for retailers to accurately forecast and manage inventory levels, resulting in stockouts and excess inventory that affected profitability.
The disruptions caused by the COVID-19 pandemic have presented significant challenges for retail companies in terms of inventory management. One major issue has been the volatility in consumer demand.
Lockdowns, social distancing measures, and shifting consumer behavior have led to unpredictable fluctuations in product demand. Some retail sectors, such as apparel and luxury goods, experienced a sharp decline in sales as consumers prioritized essential items and reduced discretionary spending.
On the other hand, sectors like home fitness equipment and home office supplies saw a surge in demand. These sudden shifts in demand patterns made it difficult for retailers to accurately forecast and manage their inventory levels.
Supply chain disruptions also played a role in inventory challenges. Global lockdowns and restrictions led to factory closures, transportation delays, and shortages of raw materials, making it challenging for retailers to maintain sufficient inventory levels.
This led to stockouts of popular items or excess inventory of slow-moving products, both of which negatively impact profitability.
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Calculate the fluid intake of an infant weighing 2 Kg:
D10W at 10 cc/hr __________ cc/kg/day
D10W at 12 cc/hr___________cc/kg/day
D10W at 6.7 cc/hr___________cc/kg/day
Calculate the fluid and caloric intake of an infant weighing 1700 grams PIV order: HAL D10W at 6 cc/hr, Lipid 10% at 1 cc/hr, and feeding of PE 22 22 at 6 CC Q3 hrs:
___________ cc/kg/day
___________cal/kg/day
Infant birth weight 300 grams, new admission, order PIV D10W 80 cc/kg/day at what rate will the PIV rate be set? _______ cc/hr
Then this ^same infant starts PO Enfamil 20 at 5 cc Q3, increasing feedings 5 cc every other feeding and titrate PIV to keep total fluid intake of 80 cc/kg/day:
What rate will the PIV rate be set at after the infant took 5 cc of Enfamil? ______ cc/hr
What will the PIV rate be set at after the infant took 15 cc of Enfamil?______ cc/hr
What will the PIV rate be set at if the infant took 20 cc and has emesis of 5 cc? ______cc/hr
What will be his full feed? _____ cc Q3 hr, ______cc Q4 hr
If the infant takes 20 cc and has emesis of 5 cc, the PIV rate would be set at:
PIV rate (in cc/hr) = (80 cc/kg/day - 20 cc + 5 cc) * 24 hours / 0.3 kg
The full feed for the infant would be:
Full feed = 5 cc Q3 hr + 5 cc Q3 hr + 10 cc Q3 hr + 10 cc Q3 hr = 30 cc Q3 hr
Full feed = 5 cc Q4 hr + 5 cc Q4 hr + 5 cc Q4 hr + 5 cc Q4 hr = 20 cc Q4 hr
To calculate the fluid intake of an infant, we can use the following formulas:
Fluid intake (in cc/kg/day) = Rate (in cc/hr) * 24 hours / Weight (in kg)
Fluid and caloric intake for an infant weighing 1700 grams with the following orders:
PIV order: HAL D10W at 6 cc/hr
Lipid 10% at 1 cc/hr
Feeding of PE 22 22 at 6 cc Q3 hrs
Fluid intake (in cc/kg/day) = (6 cc/hr + 1 cc/hr + 6 cc Q3 hrs * 8 feeds) * 24 hours / 1.7 kg
Caloric intake (in cal/kg/day) = (6 cc/hr * 3.4 cal/cc + 1 cc/hr * 1.1 cal/cc + 6 cc Q3 hrs * 8 feeds * 20 cal/cc) * 24 hours / 1.7 kg
For an infant with a birth weight of 300 grams, the PIV rate would be set at:
PIV rate (in cc/hr) = 80 cc/kg/day * 24 hours / 0.3 kg
After the infant takes 5 cc of Enfamil, the PIV rate would be set at:
PIV rate (in cc/hr) = (80 cc/kg/day - 5 cc) * 24 hours / 0.3 kg
After the infant takes 15 cc of Enfamil, the PIV rate would be set at:
PIV rate (in cc/hr) = (80 cc/kg/day - 15 cc) * 24 hours / 0.3 kg
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The Bill of Rights in Chapter II of the Constitution, bestows on every South African a
number of fundamental rights, one of which is the right to equality.
Everybody is equal before the law and nobody may unfairly discriminate against
another. Design an Anti-discrimination policy for a company of your choice.
Your policy should ensure that it meets the requirements of a policy document following
the correct format. (25)MARKS
Title: Anti-Discrimination Policy
Objective: Promote equality, prevent discrimination
Scope: Applies to all employees, management, clients
Policy: No discrimination, harassment; respect and inclusion; no retaliation; thorough investigations; reasonable accommodations; training; disciplinary action for violations
Review and Revision: Periodic review, compliance with laws and best practices
Goal: Fair and inclusive workplace environment respecting individuals' rights and dignity.
To design an Anti-discrimination policy for a company, you need to ensure that it meets the requirements of a policy document following the correct format. Here is an example of an Anti-discrimination policy for a company:
Title: Anti-discrimination Policy
Objective: This policy aims to promote equality and prevent any form of discrimination within our company.
Scope: This policy applies to all employees, including full-time, part-time, temporary, and contract workers, as well as management and clients.
Policy Statement:
1. Our company is committed to providing a work environment that is free from discrimination, harassment, and prejudice.
2. Discrimination based on race, color, national origin, gender, age, religion, disability, marital status, sexual orientation, or any other protected characteristic is strictly prohibited.
3. All employees are expected to treat each other with respect and dignity, fostering a positive and inclusive workplace culture.
4. The company will not tolerate any form of harassment, bullying, or retaliation against individuals who report discrimination or participate in related investigations.
5. Management will take appropriate action to address any discrimination complaints, including conducting thorough investigations and implementing corrective measures if necessary.
6. The company will provide reasonable accommodations to individuals with disabilities to ensure equal access and opportunities.
7. All employees will receive training on anti-discrimination policies and procedures to promote awareness and understanding.
8. Employees who violate this policy may be subject to disciplinary action, up to and including termination of employment.
Review and Revision:
This policy will be periodically reviewed and revised as needed to ensure compliance with applicable laws and best practices.
By implementing this Anti-discrimination policy, our company aims to create a fair and inclusive workplace environment that respects the rights and dignity of every individual.
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Dividing GDP by the total population of a country results in that country's
A) personal income per capita
B) gross GDP rate
C) GDP per capita.
D) unemployment rate.
Answer:
C) GDP per capita.
Explanation:
Dividing the Gross Domestic Product (GDP) by the total population of a country gives the GDP per capita. GDP per capita is a measure that represents the average economic output per person in a country. It provides an indication of the economic well-being and standard of living of the population. By dividing the total economic output (GDP) by the population, we can determine the average share of GDP that each individual would receive if it were evenly distributed.
GDP divided by total population yields the GDP per capita, an average measure of each individual's contribution to the country's economy.
Explanation:Dividing Gross Domestic Product (GDP) by the total population results in a country's GDP per capita. GDP per capita is a measurement of a country's economic output that accounts for the number of people it has. It's essentially the average economic productivity of each individual in a country. It's important to note that the GDP per capita doesn't measure the wealth distribution within a country or income inequality, it only measures the average income.
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8. Discuss why how the increase in G impacts Y, r, and I in the
context of the ideas of fiscal stimulus, spending multipliers, and
crowding-out.
When there is an increase in government spending (G), it can have an impact on several macroeconomic variables such as output (Y), interest rates (r), and investment (I). This impact is often analyzed in the context of fiscal stimulus, spending multipliers, and crowding-out.
Fiscal Stimulus: Fiscal stimulus refers to government policies aimed at boosting aggregate demand and stimulating economic growth. An increase in government spending is a common tool used for fiscal stimulus. When government spending increases, it directly contributes to the overall demand for goods and services in the economy. This increase in demand leads to an increase in output (Y) since firms produce more to meet the higher demand.
Spending Multipliers: The concept of spending multipliers is based on the idea that an increase in government spending can have a larger impact on overall output than the initial increase in spending itself. This is because the additional government spending ripples through the economy, leading to increased income and further spending by households and businesses.
Crowding-Out: Crowding-out occurs when an increase in government spending leads to a decrease in private sector investment. When the government increases its spending, it needs to finance it through borrowing or taxes. If the government borrows from the financial markets to finance the increased spending, it increases the demand for loanable funds, which can push up interest rates (r). Higher interest rates can discourage private investment (I) as borrowing becomes more expensive for businesses and households. In this case, the increase in government spending crowds out private investment, reducing the overall impact on output.
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Mary is 36 years old and pregnant with her first child. She is permanently employed with XYZ Australia-Wide Services. You are the HR Manager at XYZ. Mary has called you to explain that she fears she will soon be sacked because her manager has told her ‘All mothers should stay at home and not do paid work until their children go to school’. This manager also told Mary she is too old to learn the new accounting system. Write to Mary’s manager explaining unlawful discrimination in employment in Australia and advise them of the correct legal approach to the issues raised by Mary.
I am writing to address the concerns raised by Mary, one of our valued employees, regarding discriminatory comments she experienced during her conversation with you.
Dear [Manager's Name],
It is important to emphasize that any form of discrimination in employment is strictly prohibited under Australian law, including the discrimination based on gender and age.
Under the Australian anti-discrimination legislation, it is unlawful to treat an employee unfavorably or make discriminatory remarks based on their gender or age. Mary's fear of being sacked due to her pregnancy is a clear example of gender-based discrimination, as it implies that she is being treated differently and unfairly because of her impending motherhood. Additionally, the statement made about her age and the assumption that she cannot learn the new accounting system constitutes age-based discrimination.
As the HR Manager at XYZ Australia-Wide Services, I must remind you of the legal requirements and the correct approach to these issues. It is crucial to foster an inclusive and non-discriminatory work environment, where every employee is treated fairly and with respect, regardless of their gender, age, or any other protected characteristic. This includes providing reasonable accommodations and support to pregnant employees, as well as ensuring equal opportunities for learning and development for all employees.
I kindly request that you review and reassess your statements and actions, and adhere to the principles of equal employment opportunity and non-discrimination. I am available to discuss this matter further and provide any necessary guidance to ensure compliance with the law and the promotion of a harmonious workplace environment.
Sincerely,
[Your Name]
HR Manager at XYZ Australia-Wide Services
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.The Wet Holiday Company specializes in the provision of
holidays which involve water sports of various types. There are
three major divisions with the following lines ofbusiness:boat
holidays on c
The Wet Holiday Company is a holiday firm specializing in a range of water sports activities. The company is composed of three main departments: boat holidays on canals and rivers; beach holidays with surfing, kite-surfing, and windsurfing.
The Boat Holidays department provides canal boats for hire for holidays ranging from long weekend breaks to fortnight-long trips. Each boat is fully equipped with all the necessary equipment and comforts, including cooking facilities and sleeping quarters, and navigation training is given. The division has a range of canal boats that can accommodate between two and ten people. This provides various options to the customers to make the choice based on their individual requirements.
Additionally, customers can opt to rent a ski boat, and the necessary safety equipment is provided. This division has professional skiers to train beginners and experienced individuals who want to hone their skills. The holidays offered by The Wet Holiday Company provides customers the opportunity to experience and explore water sports while having an adventurous and relaxing time.
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Larry, Max, Pat and Sam are colleagues working at the same office. They are planning to share and buy a coffee machine for the office. A brand new coffee machine is estimated to cost $1800 including transportation and installation costs. Larry and Max are coffee lovers and are both willing to pay $600 each. Pat is willing to pay $450. Sam is more of a tea lover and is only willing to pay $200.
Answer the following questions:
a. Assuming the coffee machine is a public good, and considering the marginal benefits and marginal costs involved, would it be constructed?__ Type Y for Yes or N for No.
b. They decided that it would be easier if the costs are equally divided by using a head tax system. How much would Larry pay under a head tax system? $__. Answer to the nearest whole
dollar (with no decimal places).
c. With a head tax system, would everyone agree to purchase a new coffee machine?__. Type Y for Yes or N for No.
a. Yes, the coffee machine would be constructed. The total willingness to pay for the machine is $600 + $600 + $450 + $200 = $1850, which is greater than the cost of $1800.
b. Under a head tax system, the costs are divided equally among the colleagues. Since there are four colleagues, Larry would pay $1800 / 4 = $450.
c. No, not everyone would agree to purchase a new coffee machine under a head tax system. Sam, who is only willing to pay $200, would not agree to contribute $450.
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Assume world oil supply is 69 million barrels per day at a price of $45 per barrel. Suppose that if the price per barrel of oil increases to $56 per day, then 90 million barrels of oil will be supplied.
Using the midpoint formula, what is the price elasticity of supply for oil? ________________________
In this price range, the world supply of oil is ___________________________________________________ (Elastic OR Inelastic)
When the price of oil increases from $45 to $56 per barrel, the quantity supplied significantly increases from 69 million barrels per day to 90 million barrels per day.
To calculate the price elasticity of supply using the midpoint formula, we need to determine the percentage change in quantity supplied divided by the percentage change in price.
Let's first calculate the percentage change in quantity supplied:
Quantity Supplied at Price 1 (Q1) = 69 million barrels per day
Quantity Supplied at Price 2 (Q2) = 90 million barrels per day
Percentage change in quantity supplied = ((Q2 - Q1) / ((Q1 + Q2) / 2)) * 100
= ((90 - 69) / ((69 + 90) / 2)) * 100
= (21 / 79.5) * 100
≈ 26.42%
Next, we calculate the percentage change in price:
Price 1 (P1) = $45 per barrel
Price 2 (P2) = $56 per barrel
Percentage change in price = ((P2 - P1) / ((P1 + P2) / 2)) * 100
= ((56 - 45) / ((45 + 56) / 2)) * 100
= (11 / 50.5) * 100
≈ 21.78%
Now, we can calculate the price elasticity of supply using the midpoint formula:
Price elasticity of supply = (Percentage change in quantity supplied) / (Percentage change in price)
= 26.42% / 21.78%
≈ 1.21
Therefore, the price elasticity of supply for oil in this price range is approximately 1.21.
In this price range, the world supply of oil is elastic. Elasticity measures how responsive the quantity supplied is to changes in price. With a price elasticity of supply greater than 1, the percentage change in quantity supplied is proportionately greater than the percentage change in price.
A 1% increase in price leads to a more than 1% increase in quantity supplied. This indicates that oil producers are responsive to price changes, and when the price of oil increases, they can increase the quantity supplied significantly, as seen by the increase from 69 million barrels per day to 90 million barrels per day.
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In our course activity, we discuss the terms and concepts used to diagnose, explain, predict and modify group behavior. During that activity we studied REB. REB stands for..
A. Reaction-Emotion-Behavior
B. Real, effective beings
C. Rational-Emotive-Behavior
D. The Rebel Model
In our course activity, we discussed the terms and concepts used to diagnose, explain, predict, and modify group behavior. During the activity, we studied REB, which stands for Rational-Emotive-Behavior.REB stands for Rational-Emotive-Behavior.
It is a cognitive behavioral approach that focuses on changing an individual's irrational beliefs to reduce maladaptive behaviors and emotional responses. REB recognizes the importance of both rational and irrational thoughts, and it aims to develop rational beliefs through the ABC model of behavior change.
Group members are encouraged to challenge their irrational beliefs and replace them with rational beliefs, which helps to reduce emotional distress and improve their interpersonal relationships.In conclusion, REB is a valuable approach to understand and modify group behavior, which is why it was studied in the course activity. It helps individuals to identify irrational beliefs and replace them with rational beliefs that lead to adaptive behaviors and emotions.
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Sambo Ltd is a levered firm with a debt ratio of 55% and its Net Income for next year is projected at $75 million. There are 12 million shares outstanding at a price of $27.47 per share. Sambo Ltd has decided to move from a 100% dividend payout policy and shift to the Residual Dividend policy from next year.
a) What is the EPS and DPS for Sambo under the 100% dividend payout policy? b) If the planned capital outlay is for $72 million, would Sambo Ltd be able to pay dividends as per the Residual Dividend Policy? If so, what will be the dividend per share? Ignore taxes. c) If Sambo Ltd shifts from a 100% payout policy to the residual dividend policy, what impact would this have on its stock price, assuming the cost of equity is 22.75% and the dividend growth rate is projected at 5%? Support your argument through relevant computations. Which argument of the dividend policy decision would you have demonstrated through this computation? (Assume constant growth rate stock valuation model for computing stock price).
a) EPS = $6.25 and DPS = $6.25. b) Sambo Ltd would be able to pay dividends as per the Residual Dividend Policy, with a dividend per share of $0.25. c) The shift to the residual dividend policy implies that Sambo Ltd will retain a portion of its earnings for future investments and growth opportunities.
a) Under the 100% dividend payout policy, the earnings per share (EPS) and dividends per share (DPS) for Sambo Ltd can be calculated as follows:
EPS = Net Income / Number of Shares
EPS = $75 million / 12 million
EPS = $6.25
DPS = EPS
DPS = $6.25
b) To determine if Sambo Ltd can pay dividends as per the Residual Dividend Policy, we need to calculate the available funds for dividends after the planned capital outlay.
Available funds for dividends = Net Income - Planned Capital Outlay
Available funds for dividends = $75 million - $72 million
Available funds for dividends = $3 million
Since Sambo Ltd has decided to shift to the Residual Dividend Policy, they will distribute dividends based on the available funds. The dividend per share (DPS) can be calculated as:
DPS = Available funds for dividends / Number of Shares
DPS = $3 million / 12 million
DPS = $0.25
Therefore, Sambo Ltd would be able to pay dividends as per the Residual Dividend Policy, with a dividend per share of $0.25.
c) Shifting from a 100% payout policy to the residual dividend policy can have an impact on Sambo Ltd's stock price. To calculate the stock price, we can use the constant growth rate stock valuation model (dividend discount model).
Stock Price = Dividend per Share / (Cost of Equity - Dividend Growth Rate)
Stock Price = $0.25 / (22.75% - 5%)
Stock Price = $0.25 / 0.1775
Stock Price ≈ $1.408
The shift to the residual dividend policy implies that Sambo Ltd will retain a portion of its earnings for future investments and growth opportunities. This retention of earnings will reduce the dividends paid out to shareholders, resulting in a lower dividend per share. Consequently, the lower dividends per share will decrease the stock price, as reflected in the computation. This computation demonstrates the argument of the dividend policy decision, which states that changing the dividend policy can impact the stock price due to changes in dividend payments and the perceived value of the company by shareholders.
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. Blocking the entry of other firms and/or substitute goods is essential for maintaining a monopoly. What are some of the business strategies used to do this blocking?
2. What is a firm in monopolistic competition driven to do in an effort to gain a short run monopoly position?
9. What are the distinguishing characteristics of an oligopoly market structure?
1. Strategies used for blocking the entry of other firms and/or substitute goods in a monopolyIn order to maintain a monopoly, firms may use the following business strategies to block the entry of other firms and/or substitute goods:
Legal barriers:
Legal barriers are the easiest way to keep competition out of the market. Some examples of legal barriers include copyrights, patents, licenses, and franchises. This can ensure that other firms do not produce similar products without paying a fee to the monopolist, or that the market is inaccessible to others.Cost barriers: Cost barriers are another way to block entry into the market. For example, large-scale economies of scale can prevent smaller firms from producing goods at a lower cost. In addition, sunk costs may make it difficult for new firms to enter the market, such as costs associated with advertising, research and development, and technology.
Barriers to distribution:
A monopolist can also block entry into the market by limiting access to distribution channels. The monopolist may own the only retail outlets or have exclusive agreements with distributors that limit competitors from entering the market.
2. Short-run monopoly position in monopolistic competition
A firm in monopolistic competition is driven to gain a short-run monopoly position because it can earn a higher profit by increasing its prices. Monopolistic competition refers to a market structure in which many firms sell differentiated products. Because each firm's product is slightly different, each firm has a certain degree of market power that allows it to increase its price slightly. This means that if a firm can differentiate its product enough to gain a temporary monopoly position, it can raise its price and earn more profit. However, because there are many firms in the market, other firms can quickly imitate the successful firm's strategy, leading to a loss of market power.9. Characteristics of oligopoly market structure
Oligopoly refers to a market structure in which a few firms dominate the market. Some of the distinguishing characteristics of an oligopoly market structure include:
Interdependence: Oligopolistic firms are interdependent, which means that their decisions are influenced by the decisions of their competitors. Because there are only a few firms in the market, each firm's decisions can have a significant impact on the market and on its competitors.
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2 times a year, a corporate bond you own pays a coupon of $71. Each of the 6 certificates you own cost you $1,000 when you bought them at par at the time of issuance. The bond issuer has just paid the latest coupon and the bond has another 13 years to run before it matures. Your bond dealer tells you this bond is now priced to yield 13.90%. What is the current value of your investment in these bonds? Report your answer with 2-digit precision (ex. 12.34).
The current value of the investment is $12,001.40.
To calculate the current value of the investment in corporate bonds, we need to consider the coupon payments, the number of certificates owned, and the bond's yield. The bond pays a coupon of $71 twice a year, and you own 6 certificates purchased at par for $1,000 each. The bond has 13 years remaining until maturity.
With a yield of 13.90%, we can use the present value formula for bond valuation to calculate the current value of the investment. By discounting the future cash flows (coupon payments and maturity payment) at the yield rate, we can determine the current value. The current value of the investment is $12,001.40, rounded to two decimal places.
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