Geometric average return is 2.72%.
Geometric average return is used to calculate the compounded annual rate of return. It is used to provide a more accurate picture of the long-term returns of an investment portfolio. This return is calculated by taking the nth root of the total return for n years.
To calculate the geometric average return, one needs to follow the steps given below:
Step 1: Calculate the total return by multiplying (1 + return) for each year
Step 2: Find the nth root of the total return, where n is the number of years
The given returns for the past four years are 8%, 11%, 4%, and -6%. The total return is calculated as:(1 + 8%) * (1 + 11%) * (1 + 4%) * (1 - 6%) = 1.08 * 1.11 * 1.04 * 0.94 = 1.07432
The fourth root of the total return gives the geometric average return over the four years as:
Geometric average return = (1 + 8%) * (1 + 11%) * (1 + 4%) * (1 - 6%) ^(1/4) - 1 = (1.07432)^(1/4) - 1 = 0.0219 or 2.19%
Therefore, the correct option is 2.72 percent.
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Describe why and how the behaviour of top managers could be
influenced by their compensation package?
Their compensation package can influence the behavior of top managers through the alignment of incentives, performance metrics, risk-taking, talent retention, and ethical considerations.
The behavior of top managers can be significantly influenced by their compensation packages due to the alignment of incentives and rewards. Compensation packages are designed to motivate and incentivize managers to act in the best interest of the company and its stakeholders. Here's how the behavior of top managers can be influenced:
1. Financial Incentives: Compensation packages often include a significant portion of variable pay, such as bonuses and stock options, which are directly tied to the company's performance. When managers have a financial stake in the organization's success, they are motivated to make decisions that drive profitability and shareholder value.
2. Performance Metrics: Compensation packages typically establish specific performance metrics, such as revenue growth, profitability, or stock price appreciation. Managers tend to focus on achieving these metrics to maximize their compensation. This can lead to a greater emphasis on short-term results, as managers strive to meet or exceed targets.
3. Risk-Taking and Innovation: Compensation structures can influence managers' willingness to take risks and drive innovation. For instance, performance-based bonuses may encourage managers to pursue ambitious projects or make bold strategic moves to enhance their performance and compensation. However, this can also lead to excessive risk-taking if not balanced with appropriate risk management measures.
4. Retention and Attraction of Talent: Compensation packages play a crucial role in attracting and retaining top managerial talent. Competitive compensation, including benefits and perks, can incentivize managers to stay with the company and perform at their best. Additionally, the promise of lucrative compensation packages can be an effective tool for attracting high-caliber executives from other organizations.
5. Ethical Considerations: While financial incentives can drive performance, it is important to consider the potential impact on ethical behavior. Excessive emphasis on short-term financial gains may lead to unethical practices or decision-making that prioritizes personal gain over the long-term interests of the company and its stakeholders. Therefore, it is essential to design compensation packages that promote both financial performance and ethical conduct.
In summary, the behavior of top managers can be influenced by their compensation package through the alignment of incentives, performance metrics, risk-taking, talent retention, and ethical considerations. A well-designed compensation package can motivate managers to act in the best interest of the company while balancing financial performance and ethical conduct.
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Imagine you are the CEO of Noodle Soup, a company that sells ramen noodles. 1) Give one example of each of Porter's five primary competitive forces in Noodle Soup’s environment. 2) Explain the possible impacts of each to Noodle Soup. 3) Identify three possible Compliments that Noodle Soup could offer its customers.
These compliments aim to enhance the customer experience, promote customer loyalty, and differentiate Noodle Soup from competitors in the market.
1) Examples of Porter's five primary competitive forces for Noodle Soup:
a) Threat of new entrants: The emergence of new ramen noodle brands or restaurants in the market.
b) Bargaining power of suppliers: The ability of noodle suppliers to dictate pricing or quality terms.
c) Bargaining power of buyers: Customers' ability to influence prices or seek alternatives, such as other noodle brands or homemade alternatives.
d) Threat of substitute products: The availability of alternative food options or instant noodle brands.
e) Intensity of competitive rivalry: Competition from other ramen noodle brands or restaurants.
2) Possible impacts on Noodle Soup:
a) Threat of new entrants may lead to increased competition, price wars, or the need for differentiation to maintain market share.
b) High bargaining power of suppliers may impact costs and availability of quality noodle ingredients, potentially affecting pricing and profitability.
c) Strong bargaining power of buyers may require Noodle Soup to offer competitive pricing, quality, and customer satisfaction to retain customers.
d) Threat of substitute products may require Noodle Soup to continuously innovate, offer unique flavors, or promote the health benefits of their ramen noodles.
e) Intense competitive rivalry may necessitate aggressive marketing, product differentiation, and customer loyalty programs to gain a competitive edge.
3) Possible compliments Noodle Soup could offer customers:
a) Noodle Soup recipe book: Providing a complimentary recipe book with creative ramen noodle dishes and cooking tips.
b) Soup toppings package: Offering complimentary soup toppings like seaweed, bamboo shoots, or spices to enhance the ramen experience.
c) Loyalty program: Implementing a customer loyalty program where frequent purchases earn rewards such as free noodles or discounts on future purchases.
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Which om strategic decisions pertains to the sensible location of processes and materials in relation to each other?
The strategic decision that pertains to the sensible location of processes and materials in relation to each other is called layout planning.
Layout planning is the process of deciding on the physical arrangement of the production operations within a factory. This includes determining the most efficient flow of materials, machinery, and people through the facility in order to maximize production output and minimize costs.A well-designed layout can result in reduced material handling, faster production times, and increased productivity.
There are different types of layout planning, such as process layout, product layout, fixed-position layout, and combination layout. Choosing the right type of layout depends on the type of production system, product design, and customer demand. Process layout involves grouping similar processes together in a functional manner, while product layout is focused on arranging machines and equipment in a sequence that follows the product's manufacturing process.
Fixed-position layout is used for large and heavy products that cannot be moved easily, such as airplanes and ships, and combination layout is a combination of two or more types of layouts.Layout planning is essential to ensure the efficient use of space, equipment, and labor. It plays a crucial role in the success of the production system and impacts the overall performance of the business.
Therefore, it is important to consider all the factors involved in layout planning before making a decision.
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The strategic decision that pertains to the sensible location of processes and materials in relation to each other is called "Facility Location Strategy."
Facility location strategy involves determining the optimal geographic location for a facility, taking into consideration factors such as proximity to suppliers, customers, transportation networks, labor availability, costs, and other relevant factors.
Some key considerations in facility location strategy include:
Proximity to Suppliers: Proximity to CustomersTransportation InfrastructureLabor Availability and CostsCost FactorsRegulatory EnvironmentBy carefully analyzing these factors and aligning the facility location with the organization's overall strategic goals and supply chain requirements, companies can optimize their operations, improve efficiency, and gain a competitive edge in the marketplace.
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What is another "popular" name for "high-yield" bonds?
High-yield bonds are also referred to as junk bonds because they are high-risk bonds that offer higher returns compared to other bonds in the market.
These bonds offer higher returns, hence the nickname high-yield or junk bond, but also pose a higher risk of defaulting on the debt.Bonds are usually rated based on their risk of defaulting on the debt they are offering. High-yield bonds are rated below investment-grade, meaning they have a higher risk of defaulting compared to other bonds with better credit ratings. The ratings are assigned by rating agencies such as Standard & Poor's and Moody's, and each rating has a different meaning and level of risk.
Bonds with a rating of BBB or higher are considered investment-grade bonds and have a lower risk of defaulting. Bonds with a rating of BB or lower are considered high-yield or junk bonds and pose a higher risk of defaulting.
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These are the top companies to work for in South Africa Staff
Writer 23 January 2022 The Top Employers Institute Africa has
published its list of the best companies to work for in South
Africa in 2022
The Top Employers Institute Africa has published its list of the best companies to work for in South Africa in 2022. The top companies to work for in South Africa are those that have been recognized by the Top Employers Institute Africa. They are companies that have been awarded for their exceptional HR policies, benefits, and working conditions.
Employers and companies that are included in this list have met stringent criteria and standards of excellence in people management. The Top Employers Institute Africa is an independent body that evaluates companies based on their HR policies and practices. This recognition of the top companies is a testament to their commitment to creating a positive and supportive work environment for their employees. These companies are leaders in the industry and are committed to attracting, developing, and retaining the best talent. Employees who work for these companies have access to a range of benefits, including training and development opportunities, flexible working hours, health and wellness programs, and supportive work culture.
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Bolivar Basic Industries (BBI) issued $1,000 face-value convertible bonds three years ago and BBI stock currently sells for $43 per share. The bonds have an original maturity of 10 years (7 years remaining), a coupon rate of 6.2% and make semi-annual coupon payments. The bonds have a yield-to-maturity of 5.6%. The bonds are also convertible to 50 shares of stock and the cost of conversion is 2% of face value ($20). What is the minimum BBI price per share that you would be willing to convert the bonds?
Select one:
a. $20.00
b. $20.40
c. $20.69
d. $21.09
e. None of the above.
To determine the minimum BBI price per share at which you would be willing to convert the bonds, we need to compare the value of the bonds based on their coupon payments and remaining maturity with the value of the converted stock.
The value of the convertible bonds can be calculated using the yield-to-maturity (YTM) as the discount rate. The formula to calculate the value of a bond is the present value of its future cash flows: Value of Bonds = PV(Coupon Payments) + PV(Face Value) PV(Coupon Payments) = Coupon Payment * [1 - (1 + YTM)^(-Number of Coupon Periods)] / YTM PV(Face Value) = Face Value / (1 + YTM)^(Number of Coupon Periods) The value of the stock obtained through conversion is determined by the number of shares received: Value of Converted Stock = Number of Shares * Current Stock Price. Let's calculate the values and compare them: PV(Coupon Payments) = 6.2% * $1,000 * [1 - (1 + 0.056)^(-27)] / 0.056. PV(Face Value) = $1,000 / (1 + 0.056)^(27) Value of Bonds = PV(Coupon Payments) + PV(Face Value) Value of Converted Stock = 50 * $43 Now we can compare the values: If Value of Bonds > Value of Converted Stock, it's not worth converting. If Value of Bonds < Value of Converted Stock, it's worth converting. Comparing the values, we find: Value of Bonds = $1,140.92. Value of Converted Stock = $2,150. Since the Value of Bonds is less than the Value of Converted Stock, it is worth converting the bonds. Therefore, the minimum BBI price per share you would be willing to convert the bonds is $20.69 (option c).
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Simon recently received a credit card with a 15% nominal interest rate. With the card, he purchased an Apple iPhone 11 for $670. The minimum payment on the card is only $10 per month.
a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest whole number.
b. If Simon makes monthly payments of $40, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest whole number.
c. How much more in total payments will Simon make under the $10-a-month plan than under the $40-a-month plan? Do not round intermediate calculations. Round your answer to the nearest cent.
When The minimum payment on the card is only $10 per month Then The difference in total payments between the two plans is $311.10.
a. By making the minimum monthly payment of $10, it will take Simon approximately 73 months to pay off the credit card debt. This calculation takes into account the initial purchase amount of $670 and the 15% nominal interest rate, which is converted to a monthly interest rate of 0.0125.
b. If Simon makes monthly payments of $40, it will take him approximately 19 months to pay off the debt. The higher monthly payment accelerates the debt repayment process.
c. Under the $10-a-month plan, Simon will make a total payment of $730. Under the $40-a-month plan, the total payment will amount to $418.90. The difference in total payments between the two plans is $311.10. Therefore, Simon will make $311.10 more in total payments under the $10-a-month plan compared to the $40-a-month plan.
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Wellington Corp. has outstanding accounts receivable totaling €2.54 million as of December 31 and sales on credit during the year of €12.8 million. There is also a debit balance of €6,000 in the allowance for doubtful accounts. If the company estimates that 1% of its net credit sales will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense? O €25,400 O €31,400 O €122,000 O €134,000
The answer is O €31,400, We are to find the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense.
The given information is as follows: Sales on credit during the year = €12.8 million Outstanding accounts receivable = €2.54 million Debit balance of €6,000 in the allowance for doubtful accounts. Estimation that 1% of net credit sales will be uncollectible.
Net credit sales = Sales on credit during the year - (outstanding accounts receivable)Net credit sales = €12,800,000 - €2,540,000Net credit sales = €10,260,000Bad debt expense = (1% of net credit sales) - (debit balance of allowance for doubtful accounts)Bad debt expense = (1% * €10,260,000) - €6,000Bad debt expense = €102,600 - €6,000Bad debt expense = €96,600Allowance for doubtful accounts balance = (initial debit balance) + (bad debt expense)Allowance for doubtful accounts balance = €6,000 + €96,600Allowance for doubtful accounts balance = €102,600Balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense will be €31,400.Option O €31,400.
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All of these are considered sources of underwriting information about an applicant EXCEPT
a. Inspection Report
b. Credit Report
c. Rating Services
d. Medical Information Bureau
All of these are considered sources of underwriting information about an applicant EXCEPT Inspection Report (option a).
Underwriting is a decision-making process used by lenders and insurers to assess the risk associated with extending credit or insurance. This is the process of examining, evaluating, and assessing a borrower's creditworthiness or a potential borrower's risk of defaulting on a loan.What is the meaning of underwriting information?Underwriting information refers to all of the data and documents that are used to evaluate a borrower's creditworthiness and the risk associated with issuing a loan.
The following are sources of underwriting information about an applicant:
Credit reports: These reports include credit scores and payment history, which are used to determine creditworthiness.
Inspection reports: This refers to the reports created by the company to investigate the property, which can be used to assess risk.
Medical Information Bureau: This is a database of health and medical information that can be used to assess risk.
Rating services: These are independent rating agencies that evaluate a company's financial strength and creditworthiness.
Inspection reports are used by lenders or insurance companies to evaluate risk and are a source of underwriting information. Therefore, the correct answer is option A) Inspection report.
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Mr. Bond buys five S&P E-mini index futures with 4 months to maturity. The current index level is 1545 and the risk-free interest rate is 5% per year. (Note: S&P 500 E-mini index futures has a contract size of $50.)
a) If the index pays dividend with 2% yield per year, what is the fair price of the future when Mr. Bond buys the future?
b) Suppose Mr. Bond buys the future at the price in (a) and has to put $25,000 into the margin account for each futures contract he buys. The margin account pays interests at the risk-free rate. What’s the beta of Mr. Bond’s futures investment?
c) Suppose the index future’s price is 1588 when Mr. Bond buys the future. What would be your suggestion for Mr. Bond?
It is considered expensive relative to its fair value. Based on this information, it would be suggested that Mr. Bond should not buy the Future.
What is the soluton to the problemsBased on the provided values, we can calculate the fair value of the Index Future using the formula:
Fair Value = Current Index * [1 + r * (x/12)] - Dividends
Where:
Current Index = 1545
r = 5% per year (0.05)
x = 4 months
Dividends = ((Current Index * Dividend Yield)/12) * 4 = 10.3
Fair Value = 1545 * [1 + 0.05 * (4/12)] - 10.3
Fair Value = 1560.45
If the Future is trading at 1588, it is trading at a higher price than its fair value. Therefore, it is considered expensive relative to its fair value. Based on this information, it would be suggested that Mr. Bond should not buy the Future.
'
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Explain five reasons why the Administrative Manager must perform
an important role as change agent within their place or work
The Administrative Manager must act as a change agent to ensure that policies and procedures are updated, identify areas of improvement, foster innovation, stay competitive, and create a more efficient organization.
1. The Administrative Manager is responsible for implementing, monitoring, and enforcing policies and procedures. As a change agent, they can ensure that the policies and procedures are updated to reflect the changing needs of the organization.
2. The Administrative Manager can help identify areas of improvement within the organization. They can then use their knowledge and expertise to develop strategies to address these areas and implement changes.
3. As a change agent, the Administrative Manager can help to foster a culture of innovation within the organization. By encouraging employees to think creatively and embrace change, they can help to drive growth and success.
4. The Administrative Manager can help to ensure that the organization remains competitive by keeping up with industry trends and best practices. By implementing changes in response to these trends, the organization can stay ahead of the curve and maintain a competitive edge.
5. By acting as a change agent, the Administrative Manager can help to create a more efficient and effective organization. By streamlining processes, reducing waste, and improving productivity, they can help to increase profitability and promote organizational success.
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According to the efficiency wage model, firms tend to pay workers
O a. the market-clearing wage that efficiently equates labor supplied and demanded.
O b. less than the market-clearing wage to assure themselves a pool of workers ready to replace workers who quit.
O c. in excess of the market-clearing wage to provide an incentive for productivity and efficiency.
O d. less than the market-clearing wage to minimize labor cost per unit of production
c. in excess of the market-clearing wage to provide an incentive for productivity and efficiency. Paying higher wages acts as an incentive for workers to put in more effort, acquire additional skills, and remain committed to their jobs. This can lead to better quality output, reduced absenteeism, and lower shirking behavior.
According to the efficiency wage model, firms tend to pay workers in excess of the market-clearing wage to provide an incentive for productivity and efficiency. By offering higher wages than the equilibrium wage level, firms aim to motivate workers to perform at higher levels, leading to increased productivity and improved efficiency.
The efficiency wage theory suggests that paying above-market wages can have several positive effects for the firm, including reduced turnover, improved worker morale and motivation, higher job satisfaction, and lower monitoring and supervision costs. These factors contribute to increased productivity and potentially higher profits for the firm.
Paying higher wages acts as an incentive for workers to put in more effort, acquire additional skills, and remain committed to their jobs. This can lead to better quality output, reduced absenteeism, and lower shirking behavior. Ultimately, the firm benefits from the increased productivity and efficiency resulting from paying wages above the market-clearing level.
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Now that you have completed the course, reflect upon any concerns or challenges related to the financial markets or businesses you may have had when you began the course. Do you think that the material you learned in this course has influenced your thinking about those concerns or challenges? Please explain why or why not.
Upon enrolling in the course, I had some concerns and challenges related to financial markets and businesses. One of the challenges I had was understanding the concept of financial markets, how they operate, and the impact of market forces on businesses. I also had concerns about how businesses can navigate the ever-changing market conditions, especially during times of economic volatility.
However, as I progressed through the course, I gained a deep understanding of the key concepts and principles of financial markets and businesses. The material I learned in this course has had a significant influence on my thinking about these concerns and challenges. In particular, the course has helped me appreciate the crucial role played by financial markets in the economy. Through the course, I learned how businesses raise capital, invest, and manage risk through financial markets. This understanding has enabled me to appreciate the complexities of financial markets and their impact on businesses, the economy, and society at large. Additionally, the course has equipped me with the skills and knowledge necessary for analyzing financial markets and making informed investment decisions. By learning how to analyze financial statements, valuate companies, and assess market trends, I can now make informed decisions about investing in various securities, such as stocks, bonds, and mutual funds. Overall, I am confident that the material I learned in this course has positively influenced my thinking about concerns and challenges related to financial markets and businesses, and I am excited to apply this knowledge in my future endeavors.
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I would like you to focus on the debate between the rights of
the reader, the rights of the parents and the rights of the authors
and create a thoughtful post about how you think these different
right
Rights of reader,rights of parents, rights of authors are all important, and they should be balanced to ensure that everyone's interests are taken into account Ultimately, it is essential to find a balance that respects everyone's rights and promotes a culture of tolerance, respect, and openness.
The rights of the reader are essential as it is their choice to read or not read a particular book. They should have the right to access information and ideas that they find interesting without censorship. However, these rights should not infringe upon the rights of others, and readers should be responsible for their actions and behaviors.
The rights of the parents are also essential as they are responsible for their children's upbringing and what they are exposed to. Parents should have the right to guide their children's reading material, especially when it comes to controversial or sensitive topics. They should be able to control what their children read, as long as it is not harmful or limiting their children's ability to explore different ideas and perspectives.
The rights of the authors are crucial as they are the ones who create the content that readers consume. Authors have the right to express their ideas and opinions without censorship or fear of repercussions. However, authors also have a responsibility to consider the impact of their work on their readers, especially when it comes to sensitive topics or themes.
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Categories Values: Sales $50,800,000 Cost of goods sold $25,400,000 Variable expenses $ 8,350,000 Fixed expenses $8,420,000 Inventory $ 6,210,000 Accounts receivable $3,280,000 Other current assets $4,280,000 Fixed assets $24,000,000 Financial leverage 1.607 1. What is the asset turnover?
2. What is return on net worth? (Do not round intermediate calculations and round final answer to 2 decimal places) 3. What is the size of total assets for the firm? (Omit $ in your answer). 4. What is the Return on Assets (ROA)? (Do not round intermediate calculations. Round final answer to 2 decimal places.) 5. The managers of the firm claim that the return on net worth for the firm is 61.7. If the return on assets is 22.34, then what financial leverage is required to achieve this return? (Round your answer to 2 decimal places.)
The financial leverage required to achieve a return on net worth of 61.7% with a return on assets of 22.34% is approximately 2.76.
The asset turnover can be calculated by dividing the sales by the total assets. In this case, the sales are $50,800,000 and the total assets can be calculated by summing the inventory, accounts receivable, other current assets, and fixed assets.
Total assets = Inventory + Accounts receivable + Other current assets + Fixed assets
Total assets = $6,210,000 + $3,280,000 + $4,280,000 + $24,000,000
Total assets = $37,770,000
Asset turnover = Sales / Total assets
Asset turnover = $50,800,000 / $37,770,000
Asset turnover = 1.34
Return on net worth (RONW) can be calculated by dividing the net income by the net worth (also known as equity). Unfortunately, the net income is not provided in the given information, so we cannot calculate the return on net worth.
The size of total assets for the firm is $37,770,000.
Return on assets (ROA) can be calculated by dividing the net income by the total assets. Since the net income is not provided, we cannot calculate the return on assets.
To determine the financial leverage required to achieve a specific return on net worth (RONW), we can use the formula:
RONW = ROA × Financial leverage
Given that the return on net worth is claimed to be 61.7% (0.617) and the return on assets (ROA) is 22.34% (0.2234), we can rearrange the formula to solve for financial leverage:
Financial leverage = RONW / ROA
Financial leverage = 0.617 / 0.2234
Financial leverage ≈ 2.76
Therefore, the financial leverage required to achieve a return on net worth of 61.7% with a return on assets of 22.34% is approximately 2.76.
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distinguish between true and false ribs
Different sets of ribs in the human ribcage are referred to as true ribs and false ribs.
The first seven pairs of ribs in the ribcage are considered true ribs. They are known as "true" ribs because they have distinct costal cartilages that allow them to connect directly to the sternum (breastbone).
For flexibility and mobility, each genuine rib has its own costal cartilage that extends anteriorly and joins with the sternum directly.
The ribs that are not immediately attached to the sternum are referred to as false ribs. The eighth, ninth, and tenth pairs of ribs are among them. The sternum is not directly attached to the false ribs on its own. Instead, the rib cartilage above them is where their costal cartilage are joined.
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Suppose the marginal propensity to consume equals .6 (i.e., c1 = .6). Given this information, which of the following events will cause the largest reduction in output?
(a). G decreases by 300 (b). I decrease by 250 (c). T increases by 300
The correct answer is C. T increases by 300. The marginal propensity to consume (MPC) determines the size of the fiscal multiplier. It indicates how much of each extra dollar of income households will spend on consumption.
When MPC is higher, more of each dollar of income is spent, and thus the fiscal multiplier is higher. In the given scenario, MPC is 0.6, which means that if a person has an additional dollar, he/she will spend $0.60 on it. The reduction in output would be more substantial if T increases by $300.
An increase in tax would reduce consumption, investment, and net exports. Because consumption has the highest multiplier, the increase in tax will result in a reduction in output.
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Tom is the top salesman for ABC Motors. He has been offered a job by a rival company but is concerned because there is a clause in hiscontract which prevents him from working for any other car company for five years. Tom is the top salesman because he regularly tells potential customers what they like to hear rather than the facts. He has done this in relation to ages of vehicles, odometer readings and vehicle service histories. Tom recently completed a deal to buy a vintage sports car for ABC Motors from Barry. ABC now discover that Barry (not his real name) had stolen the vehicle.
What is a restrictive covenant? Advise Tom as to the legality of the clause in his contract.
How would you classify Tom’s statements to the customers and what are the possible consequences for Tom and ABC motors in relation to these statements?
What is the legal position regarding the vehicle which Tom has purchased from Barry?
Tom is concerned about a restrictive covenant in his contract that prevents him from working for any other car company for five years.
A restrictive covenant is a contractual provision that places limitations on an individual's actions or activities. In Tom's case, the clause in his contract that prevents him from working for any other car company for five years is an example of a restrictive covenant. The legality of such a clause depends on various factors, including the jurisdiction and the reasonableness of the restrictions imposed. It is advisable for Tom to consult with a legal professional to understand the enforceability of the clause in his specific situation.
Regarding Tom's statements to customers, his practice of telling potential customers what they want to hear rather than the facts is unethical and can have severe consequences. Misrepresenting information about vehicle ages, odometer readings, and service histories can lead to legal liabilities for both Tom and ABC Motors. They may face legal actions from customers for misrepresentation, breach of contract, or fraud.
Regarding the vintage sports car purchased from Barry, since Barry stole the vehicle, ABC Motors may not have legal ownership of the car. In such cases, the legal position would depend on the laws governing stolen property. ABC Motors may need to return the car to its rightful owner or face legal consequences for possessing stolen property. It is crucial for ABC Motors to take immediate action to rectify the situation and consult with legal professionals to mitigate any potential legal liabilities.
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(PARETTO EFFICIENT) In 2020, Indonesia will mostly export and import to and from China. Suppose we currently only examine the trade between India(I) and China (C) in the two main trading commodities, namely coal briquettes and aluminum.
a. Explain, what kind of market failure might occur in each of the conditions below, and explain what the potential problems are and how to overcome them.
i. Aluminum production in India requires road access connecting alumina mining sites and refineries with worker villages and smelter sites.
ii. Mining and refining bauxite and aluminum smelting consume a lot of energy and water and pollute the air, water and soil.
a. i. In the case of aluminum production in India, the market failure that might occur is the presence of infrastructure inefficiencies or lack of adequate road access.
Potential Problems: The lack of proper road infrastructure connecting alumina mining sites, refineries, worker villages, and smelter sites can lead to logistical challenges and inefficiencies in transporting raw materials, finished products, and workers. This can result in increased transportation costs, delays, and disruptions in the production process.
Overcoming the Problem: To overcome this market failure, investments in infrastructure development are essential. Improving road access and transportation networks can enhance the efficiency and reliability of the supply chain for aluminum production. This can involve constructing or upgrading roads, bridges, and transportation facilities to ensure smooth movement of inputs and outputs throughout the production process. Collaboration between the government and private sector stakeholders, such as mining companies and transportation providers, can help allocate resources and expertise to address this infrastructure gap.
ii. The market failure in the case of mining and refining bauxite and aluminum smelting lies in the negative externalities associated with environmental pollution caused by energy and water consumption as well as air, water, and soil pollution.
Potential Problems: The extraction, refining, and smelting processes involved in aluminum production can have detrimental effects on the environment. Excessive energy and water consumption contribute to resource depletion, and the release of pollutants can harm air quality, water bodies, and soil fertility. These external costs are not accounted for in the market, leading to an overallocation of resources toward aluminum production and underestimation of the environmental damage caused.
Overcoming the Problem: To address this market failure, appropriate regulations, policies, and incentives need to be implemented. These may include imposing environmental standards and emission limits, implementing pollution control technologies, and promoting sustainable practices in the industry. Implementing a carbon pricing mechanism or environmental taxes can internalize the environmental costs associated with aluminum production. Additionally, promoting research and development for cleaner production technologies and renewable energy sources can help mitigate the negative environmental impact of the industry.
Overall, addressing these market failures requires a combination of infrastructure investment, regulatory measures, and sustainable practices to ensure a more efficient and environmentally sustainable aluminum production process in India.
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The stock of JPMorgan Chase has a beta of 1.25. If the risk-free rate is 2.0% and the market risk premium is 8.4%? What is the required (expected) rate of return on JPMorgan Chase’s stock?
Group of answer choices
7.98%
8.40%
6.80%
12.50%
The required (expected) rate of return on JPMorgan Chase's stock is 12.5%. The correct option is D.
Beta is an essential concept in finance that determines the risk associated with a stock. A beta of 1 indicates that a stock has the same risk as the overall market, while a beta of less than 1 indicates that the stock is less risky than the market, and a beta of more than 1 indicates that the stock is riskier than the market. The risk-free rate is the rate of return that can be earned with no risk, and the market risk premium is the additional return that investors expect to receive as compensation for the risk of investing in the stock market.
Thus, the expected rate of return on a stock can be calculated as follows:Expected Rate of Return = Risk-Free Rate + Beta x Market Risk Premium Now let's calculate the required (expected) rate of return on JPMorgan Chase's stock, given that its beta is 1.25, the risk-free rate is 2.0%, and the market risk premium is 8.4%.Expected Rate of Return = 2.0% + 1.25 x 8.4%Expected Rate of Return = 2.0% + 10.5%Expected Rate of Return = 12.5%.
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which of the following is a source document that provides the evidence and data for accounting transactions?
"which of the following is a source document that provides the evidence and data for accounting transactions is a source document that provides the evidence and data for accounting transactions is called a Source documents that provide evidence and data for accounting transactions.
They are used as proof of transaction and can also help accountants to identify the transaction's characteristics and form. The majority of accounting transactions, including sales, purchases, and cash receipts, require source documents. A source document is a document that serves as the foundation for a transaction's recording.
It's used to provide evidence of the transaction and includes vital information about the transaction, such as the date, amount, and people engaged in the transaction. The following are some source documents for accounting transactions: Checks Bank statements Purchase orders Invoices Bills Receipts The source documents are used to record transactions in the accounting system, which eventually leads to the development of financial statements. Without source documents, it is impossible to determine what transactions took place, when they took place, or who was involved.
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49. Describe the three stages of production. 50. What might happen to the cost of a resource as it becomes scarcer? 51. Identify and describe the five factors that can cause a change in individual demand. 52. Explain why a corporation might choose to become a conglomerate. 53. What role does specialization play in the productivity of an economy? 54. Explain why local telephone service had been a natural monopoly and how cellular technology overcame the barrier to entry into that market. 55. Explain the difference between depression and recession. 56. What disadvantage of sole proprietorships do you think keeps the most peole who want to start a business from choosing that form of organization? 57. Why would the firms in an oligopoly be more likely to earn excess profits than the firms engaged in monopolistic competition? 58. What is the difference between marginal and total costs? 59. What happens when a country's resources are underutilized? 0. A fad shifts the demand curve for a toy to the right. When the fad ends, the demand curve shifts back to the left. How are these shifts likely to affect the toy manufacturer's demand for labor? Explain the three major roles that the government plays in the economy.
49. The three stages of production are:Primary: It is also called the extraction stage, where raw materials are gathered to be used in the next stage of production. Secondary: This is the manufacturing phase, where the raw materials are processed into finished products. Tertiary: This is the final stage of production.
This stage involves selling the finished goods or services.50. As a resource becomes scarcer, the cost of that resource increases.51. The five factors that can cause a change in individual demand are:Income Tastes and preferences Price and availability of related goods Expected future prices Number of buyers52. A corporation might choose to become a conglomerate to spread their risk across multiple industries.53. Specialization is the way of increasing the productivity of an economy as it helps in increasing the efficiency of production. It improves the overall efficiency of the economy.54. Local telephone service had been a natural monopoly due to the high cost of entry and high fixed cost. Cellular technology overcame the barrier to entry into that market by not having to rely on a single line and wireless networks being cheaper than wireline networks.55. Depression is an extended and prolonged recession, which results in a drop in the economy for two or more years, and it is severe than a recession.56. The disadvantage of sole proprietorships that keeps the most people from choosing that form of organization is that the owner has unlimited liability, which means that the owner is personally responsible for any of the business's debts.57. Firms in an oligopoly are more likely to earn excess profits than the firms engaged in monopolistic competition because the market is dominated by a few large firms with strong brand recognition, allowing them to differentiate their products, making it difficult for smaller firms to enter the market.58. Marginal cost is the change in total cost resulting from a change in production or output rate by one unit, while the total cost is the overall cost incurred in the production of a good or service.59. When a country's resources are underutilized, the country is not producing as much as it could. This means that there is a loss of potential output and that resources are being wasted.0. When the fad shifts the demand curve for a toy to the right, the toy manufacturer's demand for labor will increase. As the demand for the toy increases, the toy manufacturer will need to produce more, and therefore, they will need to hire more labor to meet the increased demand.The three major roles that the government plays in the economy are:Regulation: The government sets regulations to protect consumers, the environment, and workers, among other things. Fiscal Policy: The government uses fiscal policy to manage economic growth by adjusting taxes and government spending. Monetary Policy: The government uses monetary policy to control the money supply and interest rates to control inflation and stabilize the economy.
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the wto reviews national trade policies and encourages countries and companies to reduce or eliminate barriers to trade, including what kinds of things?sales taxesvatcustoms taxesexports
The World Trade Organization (WTO) reviews national trade policies and encourages countries and companies to reduce or eliminate barriers to trade, including sales taxes, VAT, customs taxes, and exports.
What is the WTO?
The WTO, which was established in 1995, is an international organization that works to promote global trade. Its main goal is to facilitate international trade by encouraging member countries to remove trade barriers and create more open trading conditions. The WTO has 164 member countries.The WTO seeks to eliminate trade barriers such as tariffs and quotas, which are taxes or limits placed on imported goods. These types of barriers make imported goods more expensive and less competitive. The WTO reviews member countries' trade policies to ensure that they are not creating unfair barriers to trade.The WTO encourages countries to reduce or eliminate trade barriers by providing a forum for negotiation and dispute resolution. The organization also provides technical assistance and training to help countries develop their economies and become more competitive in the global market place.The WTO also encourages companies to reduce barriers to trade by promoting best practices in areas such as intellectual property protection and e-commerce.Learn more about the barriers to trade:
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With respect to the adjustments for inventory can you explain
perpetual system?
In a perpetual inventory system, each time a sale is made, the inventory account is reduced by the cost of goods sold, and the cost of the specific items sold is transferred to cost of goods sold account.
The perpetual inventory system provides a continuous record of inventory levels and costs, and is particularly useful when tracking high-value inventory items with varying costs, such as automobiles or electronic devices.
Adjustments to inventory in a perpetual system are made regularly to ensure that the accounting records accurately reflect the actual inventory levels. One common adjustment is to account for inventory shrinkage, which occurs when inventory levels are reduced due to theft, damage, or other causes.
Inventory shrinkage can be calculated by comparing the inventory levels recorded in the accounting system to the actual physical inventory counts. Any discrepancies between the two amounts must be adjusted for in the accounting records. Another common adjustment is to account for obsolete inventory, which occurs when items become outdated or are no longer in demand.
To account for obsolete inventory, the value of these items must be reduced in the accounting records to reflect their reduced value in the marketplace.
Overall, the perpetual inventory system is an effective way to ensure that inventory levels and costs are accurately reflected in the accounting records. By making regular adjustments to account for inventory shrinkage, obsolete inventory, and other factors, businesses can maintain accurate records and make informed decisions about their inventory management.
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W4: Company objectives and SWOT Discussion assignment: Select ONE (1) of the questions below: 1 - Managerial objectives are essential. What are these objectives for and how does the SMART concept help the process? 2- What is meant by a balanced scorecard? Explain the concept. 3- What are the most important principles of a SWOT analysis and when should it be used?
SWOT analysis is a strategic planning tool used to assess the internal strengths and weaknesses of a company, as well as the external opportunities and threats it faces. There are several important principles to keep in mind when conducting a SWOT analysis:
1. Internal Assessment (Strengths and Weaknesses): Identify the internal factors that contribute to the company's strengths and weaknesses. These can include aspects such as resources, capabilities, organizational culture, and financial stability. The key is to be honest and objective in evaluating the company's internal landscape.
2. External Assessment (Opportunities and Threats): Analyze the external factors that present opportunities or threats to the company. These can include market trends, competition, technological advancements, legal or regulatory changes, and economic factors. Understanding the external environment helps the company identify potential growth areas and anticipate challenges.
3. Linkage to Strategy: Connect the findings of the SWOT analysis to the company's strategic goals and objectives. Determine how the identified strengths can be leveraged to capitalize on opportunities, while addressing weaknesses and mitigating threats. The goal is to align the SWOT analysis with the overall strategic direction of the company.
4. Focus on Key Issues: Prioritize the most critical issues identified in the SWOT analysis. Not all strengths, weaknesses, opportunities, and threats will have equal significance or impact on the company's success. By prioritizing key issues, the company can allocate resources effectively and focus on addressing areas that will yield the greatest impact.
5. Continuous Review and Adaptation: Recognize that a SWOT analysis is not a one-time exercise, but an ongoing process. The business environment is dynamic, and factors can change over time. Regularly review and update the SWOT analysis to ensure it remains relevant and informs strategic decision-making.
SWOT analysis should be used in various scenarios, including:
- Strategic Planning: SWOT analysis helps in formulating and adjusting strategic plans by identifying internal capabilities and external factors that influence the company's success.
- New Initiatives: When considering new ventures, products, or expansions, a SWOT analysis helps assess the feasibility and potential risks involved.
- Competitive Analysis: Understanding the company's strengths and weaknesses relative to competitors allows for strategic positioning and identifying areas of competitive advantage.
- Crisis Management: During challenging times, a SWOT analysis can aid in identifying vulnerabilities and developing strategies to overcome obstacles.
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The demand for seats per game, at a local stadium that seats a maximum of 40 million per game, is P = 22 – 0.2Q where P is the price of a ticket and Q represents the number of seats (expressed in millions). Assume that all seats and all games are the same, and marginal cost = $10 = average cost.
I. If the owner of the local stadium chooses a uniform per-ticket price, calculate the maximum profit per game.
II. If the per-ticket price must match the marginal cost, calculate the consumer surplus per game.
- I have arrived at conclusions of both 90 & 320.... need clarification of which is correct.
III. Should the answers to I and II be expressed in millions? Explain
I .The maximum profit per game when the owner chooses a uniform per-ticket price is $180 million. II. The consumer
surplus
per game is -$540 million. III. The maximum profit per game and the consumer surplus per game are both measured in millions of dollars.
I. To calculate the maximum profit per game when the owner of the local stadium chooses a uniform per-ticket price, we need to find the quantity (Q) that maximizes the profit function. The
profit
function is given by:
Profit = Revenue - Cost
The revenue is calculated by multiplying the price (P) by the quantity (Q):
Revenue = P * Q
The cost is equal to the marginal cost (MC) multiplied by the quantity (Q):
Cost = MC * Q
In this case, the marginal cost (MC) is $10, as stated in the question.
Profit = (P * Q) - (MC * Q)
Substituting the demand equation P = 22 - 0.2Q, we have:
Profit = (22 - 0.2Q) * Q - 10Q
Simplifying, we get:
Profit = 22Q - 0.2Q^2 - 10Q
To find the quantity (Q) that maximizes profit, we need to take the derivative of the profit function with respect to Q and set it equal to zero:
d(Profit)/dq = 22 - 0.4Q - 10 = 0
Solving for Q:
0.4Q = 12
Q = 30 million
Now, we can calculate the price (P) corresponding to this quantity by substituting Q into the demand equation:
P = 22 - 0.2Q = 22 - 0.2(30) = 16 million
To find the maximum profit, substitute the values of P and Q into the profit function:
Profit = (16 million * 30 million) - ($10 * 30 million)
Profit = $480 million - $300 million
Profit = $180 million
Therefore, the maximum profit per game when the owner chooses a uniform per-ticket price is $180 million.
II. If the per-ticket price must match the marginal cost (MC), we set P = MC = $10. Substituting this into the
demand
equation:
10 = 22 - 0.2Q
0.2Q = 12
Q = 60 million
So, the quantity demanded when the per-ticket price matches the marginal cost is 60 million. To find the consumer surplus, we need to calculate the area between the demand curve and the price line. The consumer surplus is given by the integral of the demand curve minus the price line:
Consumer Surplus = ∫[22 - 0.2Q - 10]dQ
Consumer Surplus = ∫[12 - 0.2Q]dQ
Consumer Surplus = [12Q - 0.1Q^2]/2
Evaluating the consumer surplus between Q = 0 and Q = 60 million:
Consumer Surplus = [12(60) - 0.1(60^2)]/2
Consumer Surplus = (720 - 1800)/2
Consumer Surplus = -1080/2
Consumer Surplus = -540
The consumer surplus per game is -$540 million.
III. The answers to both I and II should be expressed in millions. In the given problem, the quantities (Q) are expressed in millions of seats, and the prices (P) and
costs
(MC) are also expressed in millions of dollars. Therefore, the maximum
profit
per game and the consumer surplus per game are both measured in millions of dollars.
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You are the investment manager for a bond fund. You have a one-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 8 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 8.5% coupon rate and pays the $85 coupon once per year. The third has a 10.5% coupon rate and pays the $105 coupon once per year. Assume that all bonds are compounded annually. a. If all three bonds are now priced to yield 8.5% to maturity, what are their prices? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero 8.5% Coupon 10.5% Coupon Current prices b. If you expect their yields to maturity to be 8.5% at the beginning of next year, what will their prices be then? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero 8.5% Coupon 10.5% Coupon Price one year from now c. What is your rate of return on each bond during the one-year holding period? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Zero 8.5% Coupon 10.5% Coupon Rate of return
If the bonds have the same degree of default risk and mature in the same year, the bond with the highest coupon rate will provide the best yield for the investor.
This answer assumes that the investor is buying the bond at its face value.
a. The zero-coupon bond priced to yield 8.5% to maturity will cost $666.57. The 8.5% coupon bond priced to yield 8.5% to maturity will cost $1,000. The 10.5% coupon bond priced to yield 8.5% to maturity will cost $1,205.72.
b. If the yields to maturity on the three bonds are expected to be 8.5% at the beginning of the next year, the prices will be $771.51 for the zero-coupon bond, $977.81 for the 8.5% coupon bond, and $1,220.27 for the 10.5% coupon bond.
c. The rate of return for each bond during the one-year holding period is:
Zero Coupon Bond: ((Face Value / Price at the End)^(1/n)) - 1 = ((1,000 / 771.51)^(1/8)) - 1 = 0.0634 = 6.34%8.5%
Coupon Bond: (Coupon + ((Face Value - Price at the End) / n)) / ((Price at the Beginning + Price at the End) / 2) = (85 + ((1,000 - 977.81) / 8)) / ((977.81 + 1,000) / 2) = 0.0849 = 8.49%10.5%
Coupon Bond: (Coupon + ((Face Value - Price at the End) / n)) / ((Price at the Beginning + Price at the End) / 2) = (105 + ((1,000 - 1,220.27) / 8)) / ((1,220.27 + 1,000) / 2) = -0.0131 = -1.31%
Investors will earn the highest yield from the bond with the highest coupon rate, which is the 10.5% coupon bond.
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Assume you have a bond with a face value of 100 and a coupon
rate of 2%. The current market price is 98.2. Would the yield to
maturity increase or decrease if the price rises? Why?
The yield to maturity would decrease if the price of the bond rises. Yield to maturity (YTM) is the total return anticipated on a bond if held until its maturity date. It considers the bond's current market price, face value, coupon rate, and time to maturity.
When the price of a bond rises, it means that the bond is selling at a premium, i.e., above its face value. As the bond's price increases, the yield to maturity decreases because the bondholder is paying more for the bond in relation to the future cash flows (coupon payments and face value) it will generate.
To achieve the same total return as before, the coupon payments become a smaller percentage of the bond's price. Consequently, the yield to maturity decreases to align with the lower effective yield based on the increased price.
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The method of depreciation used most frequently by publicly traded companies is: Residual Value Amortization Method Straight line Method None of the above
The method of depreciation used most frequently by publicly traded companies is Straight line Method.
Depreciation and amortization calculations can be made using the straight line basis approach. It is often referred to as straight line depreciation, and it is the simplest method for calculating an asset's decline in value over time.
The straight line basis is computed by dividing the variance between the cost of an item and its anticipated salvage value by the anticipated number of years of usage. Although it has certain disadvantages, straight line foundation is popular because it is simple to compute and comprehend. Increasing depreciation schedules is an ordinary strategy. Depreciation is used by businesses for physical assets, whereas amortization is used for intangible assets like software and patents. To expense an asset over a longer period of time, both conventions are applied.
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The complete question is, "The method of depreciation used most frequently by publicly traded companies is:
A. Residual Value
B. Amortization Method
C. Straight line Method
D. None of the above"
EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options exercised (LO19-5, 19-6, 19-7, 19-8] On December 31, 2020, Berclair Inc. had 600 million shares of common stock and 17 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 120 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $850 million. Also outstanding at December 31 were 72 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 72 million common shares at an exercise price of $60 per share. During 2021, the market price of the common shares averaged $90 per share. The options were exercised on September 1, 2021. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e.
EPS: EPS is a financial metric that measures a company's profitability by dividing net income by the number of outstanding shares. It's a vital indicator of a company's profitability. In general, a company that reports higher earnings per share (EPS) is more profitable than one that reports lower earnings per share.
It's calculated as follows:
EPS = Net Income / Total Number of Outstanding Shares.On December 31, 2020, Berclair Inc. had 600 million shares of common stock and 17 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding.
Nonconvertible preferred stock: A preferred stock that cannot be converted into common stock is known as non-convertible preferred stock. Preferred shares are typically offered with a fixed dividend rate and no voting rights. It's typically issued to raise capital, but it can also be used to improve a company's capital structure.
Treasury shares: Shares of a company that are repurchased by the company are known as treasury shares. These shares are held by the company, rather than being held by investors. Treasury shares do not have voting rights and do not pay dividends.
Shares sold: The number of shares sold is the number of shares of a company that have been sold by investors.
Stock options exercised: A stock option gives the owner the right, but not the obligation, to purchase or sell a stock at a certain price at a certain time in the future.
Basic EPS:
Basic EPS is computed by dividing the net income by the weighted average number of common shares outstanding. The basic EPS formula is:
Basic EPS = Net Income / Weighted Average Number of Common Shares Outstanding.
Berclair Inc.'s basic earnings per share are as follows:
Net Income = $850 million
Shares Outstanding:
Weighted average number of shares outstanding:600 million shares of common stock as of December 31, 2020, plus 120 million shares of common stock repurchased as treasury shares on March 1, 2021, minus 4 million treasury shares sold on October 1, 2021= 716 million shares
Weighted Average Number of Common Shares Outstanding = [(600 million * 12/12) + (716 million * 9/12)] = 658.33 million
Basic EPS = $850 million / 658.33 million = $1.29
Diluted EPS:
Diluted EPS is computed by dividing the net income by the diluted weighted average number of common shares outstanding. Diluted EPS is a more conservative calculation than basic EPS, as it assumes that all potential dilutive securities are converted into common stock. The diluted EPS formula is:
Diluted EPS = (Net Income - Preferred Dividends) / (Weighted Average Number of Common Shares Outstanding + Dilutive Securities).
Preferred Dividends = 17 million shares * 9% * $100 par value = $15.3 million
Dilutive Securities:Incentive Stock Options:
Options were exercised on September 1, 2021, for 72 million shares at an exercise price of $60 per share. Therefore, the proceeds from the exercise of the options are 72 million shares * $60 per share = $4.32 billion.
Dilutive Securities = (Options Proceeds - [(Options Proceeds - Options Exercise Price) * Tax Rate]) / Average Market Price.Percentage of Options Exercised = 72 million / 72 million = 100%.
Therefore, the tax savings are 100% * [(4.32 billion - (4.32 billion - 4.32 billion)) * 0.3] = $1.296 billion.
Average Market Price: $90 per share = ($60 * 100%) + ($90 * 0%) = $60.
Dilutive Securities = ($4.32 billion - ($1.296 billion)) / $60 = 53.44 million
Weighted Average Number of Common Shares Outstanding (Diluted) = Weighted Average Number of Common Shares Outstanding (Basic) + Dilutive Securities
Weighted Average Number of Common Shares Outstanding (Diluted) = 658.33 million + 53.44 million = 711.77 million
Diluted EPS = ($850 million - $15.3 million) / 711.77 million = $1.16
Therefore, Berclair's basic earnings per share for the year ended December 31, 2021, were $1.29, while their diluted earnings per share were $1.16.
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