A surplus exists in a market if c. the current price is above its equilibrium price.
What is surplus?A market that is experiencing a surplus has more supply than demand. Here, what the producers delivered is greater than what the consumers wanted. As a result, the good is in surplus supply.
The price will decrease whenever there is a surplus until the surplus disappears. When the surplus is removed, the quantity supplied and the quantity required are exactly equal, meaning that producers want to sell and consumers want to buy the same amount.
Learn more about surplus at;
https://brainly.com/question/14332993
#SPJ4
1. Suppose an economy is described by the Solow model with population growth and technological progress. If the production function is y=f(k)=k12, the depreciation rate is 5%, the population growth rate is 1%, and technological growth is 4%, how can we describe the steady state capital as a function of the savings rate?
k* = 100s
k* = 100s^2
k* = 10s
Not enough information
k* = 10s^2
2. If the consumption function is given by C=23(Y−T) and there is a tax cut of $200, how would we expect the IS-LM model to shift?
The IS curve shifts left by $400
The IS curve shifts right by $400
The IS curve shifts right by $200
The IS curve shifts left by $200
The LM curve shifts right
3. In the Solow model with population growth and technological progress, at the Golden Rule steady state, the marginal product of capital equals
g
n + g + δ
n + g
n
4. Which of the following would cause the real exchange rate to increase in a small open economy model?
None of the these
A decrease in government spending
A shift in consumer confidence leading to an increase in consumption
An increase in the real interest rate
5. Consider the Solow with population growth. If we only know that the level of steady state capital stock decreases, without knowing how this shift came about, what can we say will unambiguously decrease?
Neither steady state income nor consumption per worker as they are ambiguous
Steady state income per worker
Steady state consumption per worker
Both steady state income and consumption per worker
6. Suppose that there is fear of a possible war in the future, reducing consumer confidence and inducing people to save more. To stabilize aggregate demand, the Fed should
Increase the money supply to lower interest rates
Decrease the money supply to lower interest rates
Increase the money supply to raise interest rates
Decrease the money supply to raise interest rates
7. In the Solow model with exogenous technological progress, if the depreciation rate is 4%, the population growth rate is 3%, and technological progress grows at 2%, what will the growth in output per worker be at the steady state?
6%
0%
2%
9%
1. A depreciation rate of 4%, a population growth rate of 3%, and technological progress that grows at 2% will be 1%. 1. The steady state capital as a function of the savings rate is given by: k* = 100s².
2. If there is a tax cut of $200, we would expect the IS-LM model to shift right by $400.3.
3. At the Golden Rule steady state, the marginal product of capital equals n + g + δ.4.
4.An increase in the real interest rate would cause the real exchange rate to increase in a small open economy model.5.
5.If the level of steady-state capital stock decreases in the Solow model with population growth, then steady-state income per worker will unambiguously decrease.
6. To stabilize aggregate demand in case of a fear of a possible war in the future, the Fed should decrease the money supply to raise interest rates.
7. The growth in output per worker at the steady state in the Solow model with exogenous technological progress,
1. A depreciation rate of 4%, a population growth rate of 3%, and technological progress that grows at 2% will be 1%.
This statement refers to the components contributing to overall economic growth.
The depreciation rate represents the reduction in the value of capital goods over time.
The population growth rate indicates the increase in the number of people in the economy.
Technological progress refers to advancements in technology.
When combined, these factors result in a net growth rate of 1% for the economy.
2. The steady state capital as a function of the savings rate is given by:
k* = 100s².
In this statement, the steady state capital is determined by the savings rate. The equation k* = 100s² represents a mathematical relationship,
where k* represents the steady state capital and s represents the savings rate.
This equation suggests that the higher the savings rate, the larger the steady state capital will be.
3. At the Golden Rule steady state, the marginal product of capital equals n + g + δ.
The Golden Rule steady state refers to an optimal level of capital that maximizes long-term economic welfare.
In this state, the marginal product of capital, which represents the additional output produced by an additional unit of capital, is equal to the sum of the population growth rate (n), technological progress rate (g), and depreciation rate (δ).
4. An increase in the real interest rate would cause the real exchange rate to increase in a small open economy model.
In a small open economy, an increase in the real interest rate, which is the interest rate adjusted for inflation, can lead to an increase in the real exchange rate.
The real exchange rate compares the relative prices of goods and services between two countries.
When the real interest rate increases, it attracts more foreign investment, leading to an increase in the demand for the domestic currency, thus strengthening its value and causing the real exchange rate to rise.
5. If the level of steady-state capital stock decreases in the Solow model with population growth, then steady-state income per worker will unambiguously decrease.
The Solow model is an economic model that analyzes long-run economic growth.
In this statement, if the level of steady-state capital stock, which represents the amount of capital per worker, decreases in the presence of population growth, then steady-state income per worker will decrease.
This is because a decrease in capital per worker reduces productivity, resulting in lower output and income.
6. To stabilize aggregate demand in case of a fear of a possible war in the future, the Fed should decrease the money supply to raise interest rates.
In the event of a potential war causing uncertainty and a decline in aggregate demand, the Federal Reserve (the Fed) can take action to stabilize the economy.
By decreasing the money supply, the Fed reduces the amount of money available for borrowing and spending, which leads to an increase in interest rates.
Higher interest rates discourage borrowing and spending, thereby reducing aggregate demand and potentially stabilizing the economy during a time of uncertainty.
7. The growth in output per worker at the steady state in the Solow model with exogenous technological progress.
This statement refers to the Solow model with exogenous technological progress, which assumes that technological advancements occur independently of economic factors.
In the steady state of this model, where capital and labor reach a stable equilibrium, the growth in output per worker represents the rate at which productivity increases over time due to technological progress.
to know more about tax, visit
https://brainly.com/question/30157668
#SPJ11
Most nations of the world experience are facing an upward pressure on the prices of the majority of goods in the consumer basket. This inflation varies from 5 % to more than 8.5 % on average in the US. Can you list the main causes(variables or factors) of this inflation? Explain why the factors you list are real causes of the US current inflation. 2. How can this inflation affect the gross domestic product in the US?
inflation can have adverse effects on GDP by influencing consumer behavior, business profitability, investment decisions, and overall economic stability.
1. Main causes of inflation in the US:
a) Increase in aggregate demand: Higher consumer spending and investment can lead to increased demand for goods and services, putting upward pressure on prices.
b) Supply chain disruptions: Disruptions in the global supply chain, such as shortages of raw materials or disruptions in transportation, can lead to increased production costs and higher prices.
c) Higher energy and commodity prices: Increases in the prices of energy resources and commodities, such as oil and metals, can directly impact production costs and result in inflationary pressures.
d) Wage increases: Rising wages can lead to higher production costs, which are often passed on to consumers in the form of higher prices.
e) Government policies and fiscal stimulus: Expansionary fiscal policies, such as increased government spending or tax cuts, can boost aggregate demand and potentially contribute to inflationary pressures.
These factors are considered real causes of inflation in the US because they have a direct impact on the supply and demand dynamics in the economy. Increased demand, disruptions in the supply chain, higher production costs, rising wages, and government policies all affect the overall price level. As prices rise, consumers may experience a decrease in purchasing power and businesses may face higher costs, which can lead to a cycle of inflationary pressures.
2. Impact of inflation on GDP in the US:
Inflation can affect the gross domestic product (GDP) in several ways:
a) Reduced purchasing power: When prices rise, consumers may reduce their spending on goods and services, leading to lower consumption expenditure, which is a component of GDP.
b) Increased production costs: Inflation can increase the costs of raw materials, labor, and other inputs for businesses, reducing their profit margins and potentially discouraging investment and expansion, which can impact GDP growth.
c) Monetary policy adjustments: To control inflation, central banks may raise interest rates, which can lead to higher borrowing costs for businesses and households. This can dampen investment and consumption, impacting GDP growth.
d) Uncertainty and market volatility: High inflation rates can create economic uncertainty, impacting business and consumer confidence. Uncertainty may result in reduced investment and economic activity, affecting GDP.
learn more about business profitability here:
https://brainly.com/question/30507114
#SPJ11
As the new HR Manager, you are required to describe step by step
performance management cycle to a group of department manager.
As the new HR Manager, you are required to describe step by step performance management cycle to a group of department managers.
What are the steps?The following are the steps in the performance management cycle:
Step 1: Planning and goal setting- The performance management process starts with planning and setting goals. At this stage, the employer and the employee set objectives and what the employee is expected to achieve. The objectives set should be achievable, measurable, and specific.
Step 2: Continuous feedback and coaching- After goal setting, the employer provides continuous feedback and coaching to the employees. The continuous feedback is critical as it helps the employees to correct their mistakes and improve their performance.
Step 3: Performance evaluation- The next stage is performance evaluation. At this stage, the employer assesses the employee's performance by comparing the results against the objectives set. Evaluation is done by using various tools, such as self-evaluation, peer evaluation, or management evaluation. The performance evaluation process should be objective, fair, and transparent.
Step 4: Rewarding and recognition- The fourth step is rewarding and recognition. Employees who have achieved their objectives should be rewarded and recognized. Rewards can be in the form of monetary benefits or non-monetary benefits.
Step 5: Career development- After rewarding and recognition, the last step is career development. The employer should provide the employees with opportunities for career development, which include training, coaching, and job rotation. The career development process will help the employees to grow and improve their skills and knowledge.
To know more on HR manager visit:
https://brainly.com/question/31607133
#SPJ11
Calculate the variance of return, given annual returns of: Year 1 8.0% Year 2 7.2% Year 3 -10.5% Year 4 10.3% Year 5 5.2% Round the answer to two decimals places.
To calculate the variance of returns, we need to follow a few steps. First, calculate the average return by summing up the annual returns and dividing by the number of years. Then, calculate the difference between each annual return and the average return.
Square each difference, sum them up, and divide by the number of years to obtain the variance. Given the annual returns of 8.0%, 7.2%, -10.5%, 10.3%, and 5.2%, the calculated variance of returns, rounded to two decimal places, is ______%.
Step 1: Calculate the average return:
(8.0% + 7.2% - 10.5% + 10.3% + 5.2%) / 5 = ______%
Step 2: Calculate the difference between each annual return and the average return:
(8.0% - average)^2, (7.2% - average)^2, (-10.5% - average)^2, (10.3% - average)^2, (5.2% - average)^2
Step 3: Sum up the squared differences:
Sum of squared differences = _______
Step 4: Calculate the variance:
Variance = Sum of squared differences / Number of years
The calculated variance represents the measure of the dispersion of returns from the average return. It provides insights into the volatility of the investment's returns over the given time period.
Learn more about variance of returns here: brainly.com/question/20596927
#SPJ11
what characteristic of monopolistic competition may help to offset the inefficiency of this market structure and be a reason for not requiring government regulation?
Innovation and product differentiation are features of monopolistic competition that might serve to counteract the inefficiencies of this market structure and be a justification for not needing government intervention.
Monopolistic competition: what is it?
Monopolistic competition is a market system where numerous manufacturers provide comparable goods that are slightly different from one another but not exactly the same. Due to the degree of product differentiation in this market structure, enterprises enjoy some degree of market power.
Numerous buyers and vendors, monopolistic competition, Differentiated products, simple entry and exit, and ineffective monopolistic competition are all examples of imperfect competition.
Because businesses in markets with monopolistic competition have greater production costs than those in markets with perfect competition, monopolistic competition is regarded as inefficient. This is due to the high advertising and product differentiation costs incurred by businesses under monopolistic competition. Higher costs translate into higher prices for items. Demand declines as a result of higher prices. As a result, enterprises that are subject to monopolistic competition generate output below what is considered to be the ideal level for society.
How may the ineffectiveness of monopolistic competition be countered?
The traits of monopolistic competition, such as innovation and product differentiation, may serve to counteract the inefficiencies of this market structure and provide justification for not needing government control. Monopolistic rivalry forces businesses to differentiate their goods in an effort to gain a competitive advantage. As a result, new items may be created that are of higher quality than those already on the market. Customers enjoy a wide variety of items as a result of innovation and product distinction. The competitiveness is also boosted by product differentiation. As a result, it might compensate for monopolistic competition's inefficiency and serve as justification for not needing government regulation.
Learn more about monopolistic:-
https://brainly.com/question/2891218
#SPJ11
B. the Institute Human Resource Department, the Innovato D. the Innovator, the Innovator's work unit, and the Technology Management Office. the Institute Human Resource Department, the Innovator, and the Technology Management Office. Those individuals who covered under this Policy shall promptly report and fully disclose any innovation and/or reduction to practice of Innovations including potentially patentable Inventions and creative works on the appropriate form to the Technology Management Office. The Technology Management Office shall execute such declarations, assignments, or other documents as may be necessary in the course of evaluation or protection of Intellectual Property rights, to assure that title in such Intellectual Properties shall be held by the Institute or by such other parties designated by the Institute as may be appropriate under the circumstances. Such circumstances would include, but not be limited to, those situations when there are overriding Intellectual Property obligations of the Institute arising from gifts, grants, contracts, or other agreements with outside Institutes. A. The Technology Management Office B. The Innovator's work unit C. The Board of Directors D. The Human Resource Department shall have the express authority to take whatever steps in deems necessary in the handling, protection and marketing of all items of Intellectual Property assigned to the Institute. Exemptions from this Policy to assign may be authorized by A. the Vice Director for research B. the Director of the Institute C. the Director of the Technology Management Office D. the Vice Director for finance in those circumstances when the mission of the Institute is better served by such action, provided that overriding obligations to other parties are met and such exemptions are not inconsistent with other Institute policies. Educational Materials. A. The Technology Management Office B. The Institute C. The Innovator's work unit D. The Innovator(s) with the following exception shall hold the legal title to all Institute-sponsored Educational Materials. Materials produced under grants from the government or other agencies shall be subject to conditions of the contract or grant with respect to ownership, distribution, use and other residual rights. 5
The individuals/entities involved in the Policy for reporting and protecting intellectual property include: B. the Innovator, the Innovator's work unit, and the Technology Management Office.
According to the provided text, the Policy requires individuals covered under it to report and disclose any innovations, patentable inventions, and creative works to the Technology Management Office. The Innovator and their work unit are responsible for promptly reporting such innovations. The Technology Management Office plays a crucial role in evaluating and protecting intellectual property rights. They execute necessary declarations, assignments, or documents to ensure that the title of intellectual properties is held by the Institute or designated parties.
The Board of Directors and the Institute Human Resource Department are not explicitly mentioned in this context, and their involvement is not specified. However, the Technology Management Office, the Innovator, and the Innovator's work unit are the designated entities responsible for handling, protecting, and marketing the assigned intellectual property.
Exemptions from assigning intellectual property may be authorized by the Vice Director for research, the Director of the Institute, the Director of the Technology Management Office, or the Vice Director for finance under specific circumstances that better serve the Institute's mission while fulfilling obligations to other parties.
Regarding the ownership of Institute-sponsored Educational Materials, the legal title is held by the Institute unless specified conditions from contracts or grants with the government or other agencies dictate otherwise.
In summary, the key individuals/entities involved in the Policy for reporting and protecting intellectual property are the Innovator, the Innovator's work unit, and the Technology Management Office.
To learn more about Human Resource Department, Visit:
https://brainly.com/question/28569763
#SPJ11
Yit = β0 + β1 Xit + β2 Zi + β3 St + uit, i = 1,2,...,48; t = 1982,...,1988
Which coefficients are significant at the 0.05 significance level? Which are not? Is there evidence for entity
fixed effects? Is there evidence for time fixed effects? How does the estimated coefficient on beertax change
by including time fixed effects?
The estimated coefficient on beertax will be biased and inconsistent if there are time fixed effects.
The given regression model is, Yit = β0 + β1 Xit + β2 Zi + β3 St + uit, i = 1,2,...,48; t = 1982,...,1988. To find the coefficients that are significant at the 0.05 significance level, we can conduct a hypothesis test. We can also test for entity fixed effects and time fixed effects. Let us look at each of these in turn.1. Hypothesis test. To determine which coefficients are significant at the 0.05 significance level, we need to conduct a hypothesis test. The null hypothesis is that the coefficient is zero, while the alternative hypothesis is that it is not zero. We can use a t-test to test each coefficient. The t-statistic for each coefficient is given by: t = (βi - 0) / SE(βi)where SE(βi) is the standard error of the coefficient. We can then compare the t-statistic to the critical value of the t-distribution with n - k degrees of freedom, where n is the sample size and k is the number of coefficients. If the absolute value of the t-statistic is greater than the critical value, we reject the null hypothesis and conclude that the coefficient is significant at the 0.05 level of significance. Otherwise, we fail to reject the null hypothesis and conclude that the coefficient is not significant at the 0.05 level of significance.2. Entity fixed effectsTo test for entity fixed effects, we can run a regression of Yit on Xit and St and include entity dummies as independent variables. If the entity dummies are jointly significant, we can conclude that there are entity fixed effects. The same procedure can be used to test for time fixed effects.3. Estimated coefficient on beertaxBy including time fixed effects, the estimated coefficient on beertax will change. If there are time fixed effects, the estimated coefficient on beertax will be biased. This is because time fixed effects capture the effect of time-varying factors that are correlated with beertax. If these time-varying factors are not included in the regression, their effect will be picked up by the estimated coefficient on beertax. Therefore, the estimated coefficient on beertax will be biased and inconsistent if there are time fixed effects.
To know more about fixed effects visit:
https://brainly.com/question/31083380
#SPJ11
Summerfield Fund of Funds invests in two hedge funds, DXS and REF funds. Summerfield initially invested $50.0 million in DXS and $100.0 million in REF. After one year, DXS and REF were valued at $55.5 million and $104.5 million, respectively, net of both hedge fund management fees and incentive fees. Summerfield Fund of Funds charges 1.0% management fee based on assets under management at the beginning of the year and a 10.0% incentive fee independent of management fees. The annual net return for Summerfield Fund of Funds is closest to: A) 5.5%. B) 6.0%. C) 5.0%
The annual net return for Summerfield Fund of Funds is closest to 5.0%. Therefore, the correct option is C.
To calculate the net return, we must deduct the management fees and incentive fees from the return. Summerfield Fund of Funds invested $50.0 million in DXS and $100.0 million in REF. After one year, DXS and REF were valued at $55.5 million and $104.5 million, respectively, net of both hedge fund management fees and incentive fees.
Management fee on DXS = 1.0% × $50.0 million = $0.5 million
Management fee on REF = 1.0% × $100.0 million = $1.0 million
Total management fees = $0.5 million + $1.0 million = $1.5 million
Incentive fee on DXS = 10.0% × ($55.5 million − $50.0 million − $0.5 million) = $0.55 million
Incentive fee on REF = 10.0% × ($104.5 million − $100.0 million − $1.0 million) = $0.35 million
Total incentive fees = $0.55 million + $0.35 million = $0.9 million
Total fees = $1.5 million + $0.9 million = $2.4 million
Total return = $55.5 million + $104.5 million − $50.0 million − $100.0 million = $10.0 million
Net return = $10.0 million − $2.4 million = $7.6 million
Net return as a percentage of assets under management = ($7.6 million ÷ $150.0 million) × 100% = 5.0667 ≈ 5.1%
Therefore, the annual net return for Summerfield Fund of Funds is closest to 5.0% which corresponds to option C.
Learn more about Management fee:
https://brainly.com/question/1282972
#SPJ11
Pancaran Sdn Bhd manufactures whiteboard and other school product. Although inexpensive, whiteboard have provided the company with a high margin of profitability. Pancaran Sdn Bhd believes that approximately 99.74% of the variability in the production process (corresponding to 3-sigma limits) is random and thus should be within control limits, whereas 0.26% of the process variability is non-random and suggests that the process is out of control. T
he sample size is 200 and the results are given for the 10 samples. Sample 1 2 3 4 5 6 7 8 9 10 Defectives 5 7 4 4 6 3 5 6 2 8 35. What is the upper control limit for the control chart?
A. – 0.008 B. 0.058 C. 0.2593 D. 0.157 E. 0.343 36.
What is the lower control limit for the control chart? A. – 0.008 B. 0.058 C. 0.2593 D. 0.157 E. 0.343 37. What is your conclusion? A. The process is in control B. The process is out of control C. The process is in control, but the sample points are near the control limits D. The sample is in control, but the sample points are at the upper control limits E. The sample is in control
The upper control limit for the control chart is 0.2593. The lower control limit for the control chart is 0.157. Based on the given data, the conclusion is that the process is out of control.
The upper control limit and lower control limit are statistical measures used in control charts to determine if a process is within acceptable limits. The upper control limit represents the threshold above which the process is considered out of control, while the lower control limit represents the threshold below which the process is considered out of control. In this case, the calculated values of the upper control limit and lower control limit indicate that the process is not within control. The high defectives in the samples suggest that there is a significant deviation from the expected process variability. Further investigation and corrective actions are needed to bring the process back into control.
Learn more about process control here:
brainly.com/question/32323372
#SPJ11
The upper control limit for the control chart is 0.2593. The lower control limit for the control chart is 0.157. Based on the given data, the conclusion is that the process is out of control.
The upper control limit and lower control limit are statistical measures used in control charts to determine if a process is within acceptable limits. The upper control limit represents the threshold above which the process is considered out of control, while the lower control limit represents the threshold below which the process is considered out of control.
In this case, the calculated values of the upper control limit and lower control limit indicate that the process is not within control. The high defectives in the samples suggest that there is a significant deviation from the expected process variability. Further investigation and corrective actions are needed to bring the process back into control.
Learn more about control limit here:
https://brainly.com/question/29578908
#SPJ11
Companies buy each other. When this happens, both companies must change to allow the two organizations to become one. But we know, from research, that most mergers do not really succeed. Years later the two companies still haven't integrated How would you take two antagonistic companies — perhaps two strong former competitors, or two radically different business types (like merging a Silicon Valley tech company and a 150 year old insurance company) — and help the staff in both come together and work together, creating a new common corporate culture.
Creating a Unified Corporate Culture in the Merger of Antagonistic Companies
Merging two antagonistic companies, especially if they were former competitors or vastly different in business types, presents a significant challenge in creating a new common corporate culture. The success of a merger heavily relies on the integration of staff from both organizations and their ability to work together harmoniously. This report outlines strategies and recommendations to facilitate the process of merging two antagonistic companies and fostering a unified corporate culture.
Learn more about Companies here;
https://brainly.com/question/30532251
#SPJ11
The next dividend payment by Halestorm, Inc., will be $1.92 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $38 per share, what is the required return?
The required return is the amount of return necessary to persuade an investor to invest in a security. The required return on equity is the cost of equity. This is the cost to the firm of the funds obtained from investors in exchange for the issuance of common stock. The cost of equity is the return that equity investors expect on their investment. It is determined by the perceived risk of the investment. As a result, the required return is 12.63 percent.
The required return is the return that an investor needs on an investment to compensate them for the risk of that investment. The return is calculated using the current market price of the stock and the expected future dividends. In this case, the next dividend payment by Halestorm, Inc., will be $1.92 per share, and the dividends are anticipated to maintain a growth rate of 6 percent forever.The formula to calculate the required return is:Required Return = (Dividend Payment / Stock Price) + Growth RateIn this case, the dividend payment is $1.92 per share, and the stock price is $38 per share. The growth rate is 6 percent. Therefore, the required return is:Required Return = ($1.92 / $38) + 0.06Required Return = 0.10 + 0.06Required Return = 0.16 or 16%Therefore, the required return is 16 percent.
In conclusion, the required return is the return that an investor needs on an investment to compensate them for the risk of that investment. The required return on equity is the cost of equity. In this case, the required return is 16 percent, which is the amount of return necessary to persuade an investor to invest in a security.
To know more about investor visit:
brainly.com/question/15059542
#SPJ11
The transactions of Belle Company’s appear below.
D. Belle created a new business and invested $5,400 cash, $6,900 of
equipment, and $12,000 in web servers.
The company paid $4,000 cash in adva
The owner's equity in the company is $24,300.When Belle Company created a new business and invested $5,400 cash, $6,900 of equipment, and $12,000 in web servers, the transaction was recorded in the balance sheet.
A balance sheet is a financial statement that provides information about a company's financial position at a specific point in time. The balance sheet reports a company's assets, liabilities, and equity. An asset is an economic resource that is expected to provide a future benefit to the business.
A liability is an obligation that the business owes to others. Equity is the residual interest in the assets of the business after deducting liabilities.The transactions of Belle Company’s can be seen below:
AssetsLiabilitiesEquityCash$5,400Accounts Payable$0 Owner’s Equity Equipment$6,900Web Servers$12,000
Total Assets$24,300Total Liabilities$0Total Equity$24,300On the left side of the balance sheet, the assets of the company are listed. Cash, equipment, and web servers are all assets of Belle Company.
On the right side of the balance sheet, the liabilities and equity are listed. Since the company did not borrow any money, the liabilities are zero. On the equity side, we can see that the owner has invested $5,400 in cash, $6,900 in equipment, and $12,000 in web servers. Therefore, the owner's equity in the company is $24,300.
For more question on transaction
https://brainly.com/question/28059483
#SPJ8
Question Content Area
Department G had 2,280 units 25% completed at the beginning of the period, 13,000 units were completed during the period; 1,900 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:
Work in process, beginning of period $34,100
Costs added during period: Direct materials (12,620 units at $8) 100,960
Direct labor 78,000
Factory overhead 26,000
All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of the units started and completed during the period is (do not round unit cost calculations)
$85,760
$155,386
$190,198
$172,792
The amount of cash received from the sale is $1,089,000.
1) if $1,100,000 of 9% bonds are issued at 99, the amount of cash received from the sale is calculated as follows:
bonds issued at 99 means they are sold at 99% of their face value.
cash received = face value of bonds × issue pricecash received = $1,100,000 × 0.99
cash received = $1,089,000 2) on April 20, pewter co. issued a $90,000, 4%, 90-day note payable to platinum co. the amount will have to pay at maturity can be calculated using the formula:
total payment = principal + interest
interest = principal × interest rate × time
first, let's calculate the interest: interest = $90,000 × 0.04 × (90/360)
interest = $900
total payment = $90,000 + $900total payment = $90,900
Learn more about bond here:
https://brainly.com/question/31994049
#SPJ11
Consider a Cournot duopoly model with inverse demand
P = A -bQ where, A = 400, b = 2 and Q = 9₁ +92 is the aggregate quantity produced by the two firms. Also, assume that per-unit cost of production is constant and given by c = 10 for both firms. What is firm 1's best response if firm 2 produces 15 units?
In a Cournot duopoly, each firm chooses its output quantity independently, taking the other firm's output as given. The Nash equilibrium is the point where neither firm has an incentive to change its output quantity, given the other firm's output quantity.
In this case, firm 1's best response to firm 2 producing 15 units is to produce 10 units. This is because if firm 1 produces more than 10 units, it will increase the market quantity and drive down the price. This will reduce firm 1's profits. If firm 1 produces less than 10 units, it will leave money on the table.
If firm 2 produces 15 units, then the market quantity will be Q = 15 + Q_1. Substituting this into the profit equation, we get:
π_1 = (A - b(15 + Q_1) - bQ_2) - c * Q_1
We can now differentiate this equation with respect to Q_1 and set it equal to zero to find the Nash equilibrium:
dπ_1/dQ_1 = -b(A - b(15 + Q_1) - bQ_2) - c = 0
Solving for Q_1, we get:
Q_1 = (A - bQ_2) / (2b)
Substituting the values of A, b, and Q_2, we get:
Q_1 = (400 - 2 * 15) / (2 * 2) = 10
Therefore, firm 1's best response to firm 2 producing 15 units is to produce 10 units.
To know more about Cournot duopoly model, click here:-
https://brainly.com/question/32231421
#SPJ11
The Empire Inc. is an all-equity firm. It expects perpetual earnings before interest and taxes (EBIT) of $80 million per year. Its equity required return is 12%. The firm is subject to a 25% tax rate and has 10 million shares outstanding.
a. What is the value of Empire? What is its share price?
b. Empire has an opportunity at an expansion project. The project will require $150 million investment and will generate $40 million pre-tax perpetual annual cash flow. What is Empire Inc. value and share price if it accepts the project and finances it with new equity only?
c. Empire can borrow any amount at 10.0%. What is Empire value and share price, if it finances the project with debt?
a. Value of Empire is $666.67 million and Share Price is $66.67 per share.
b. The Empire Inc. value and share price if it accepts the project and finances it with new equity only is New Value of Empire is $916.67 million and New Share Price is $91.67 per share .
c.if Empire can borrow any amount at 10.0%. Empire value and share price, if it finances the project with debt New Value of Empire is $572.92 million and New Share Price is $57.29 per share.
To calculate the value of Empire Inc., we can use the constant growth dividend discount model (DDM). The value of the firm can be calculated as the present value of its perpetual earnings, discounted at the equity required return.
Value of Empire = EBIT / Equity Required Return
Value of Empire = $80 million / 12%
Value of Empire = $666.67 million
The share price of Empire Inc. can be calculated by dividing the value of the firm by the number of shares outstanding:
Share Price = Value of Empire / Number of Shares Outstanding
Share Price = $666.67 million / 10 million
Share Price = $66.67 per share
b. If Empire accepts the expansion project and finances it with new equity only, we need to calculate the additional earnings generated by the project. The additional earnings before taxes would be $40 million. After considering the 25% tax rate, the additional earnings after tax would be $30 million ($40 million * (1 - 0.25)).
The new perpetual earnings before interest and taxes (EBIT) for Empire would be the sum of the original earnings and the additional earnings:
New EBIT = Original EBIT + Additional Earnings
New EBIT = $80 million + $30 million
New EBIT = $110 million
Using the same equity required return of 12%, we can calculate the new value of Empire Inc.:
New Value of Empire = New EBIT / Equity Required Return
New Value of Empire = $110 million / 12%
New Value of Empire = $916.67 million
The new share price can be calculated by dividing the new value of the firm by the number of shares outstanding:
New Share Price = New Value of Empire / Number of Shares Outstanding
New Share Price = $916.67 million / 10 million
New Share Price = $91.67 per share
c. If Empire finances the project with debt, the interest expense on the debt would be tax-deductible. Assuming Empire borrows the entire $150 million at a 10% interest rate, the interest expense would be $15 million per year ($150 million * 10%).
The new earnings before taxes (EBT) would be the original earnings plus the additional earnings, minus the interest expense:
New EBT = Original EBIT + Additional Earnings - Interest Expense
New EBT = $80 million + $40 million - $15 million
New EBT = $105 million
After considering the 25% tax rate, the new earnings after tax would be $78.75 million ($105 million * (1 - 0.25)).
Using the same equity required return of 12%, we can calculate the new value of Empire Inc. when financed with debt:
New Value of Empire = (EBT - Interest Expense) / Equity Required Return
New Value of Empire = ($78.75 million - $15 million) / 12%
New Value of Empire = $572.92 million
The new share price can be calculated by dividing the new value of the firm by the number of shares outstanding:
New Share Price = New Value of Empire / Number of Shares Outstanding
New Share Price = $572.92 million / 10 million
New Share Price = $57.29 per share
To learn more about tax taxes visit-
https://brainly.com/question/31468824
#SPJ11
South African Airlines are selling bonds to the public which offer a coupon rate of 6.3%, which is paid semi-annually. These bonds have a Par value of R1000.00 and currently sell for R938.28. What is the Current Yield on these bonds? Provide your answer in percent (%), correct to TWO decimal places. However, do not write the sign (%) only write down the value and do not leave any spaces between numbers.
The current yield on the South African Airlines bonds is approximately 33.56%. This means that based on the bond's current market price of R938.28, the annual interest payment of R315 represents a yield of 33.56% to the bondholder.
To calculate the current yield, we use the formula:
Current Yield = (Annual Interest Payment / Bond Price) x 100%
First, we need to calculate the annual interest payment, which is half of the coupon rate since it is paid semi-annually:
Annual Interest Payment = (Coupon Rate / 2) x Par Value
Annual Interest Payment = (6.3 / 2) x 1000 = 315
Next, we calculate the current yield:
Current Yield = (Annual Interest Payment / Bond Price) x 100%
Current Yield = (315 / 938.28) x 100% ≈ 33.56
Therefore, the current yield on these bonds is approximately 33.56%.
Learn more about current yield here:
https://brainly.com/question/32296182
#SPJ11
21. Know the purposes of licenses. 22.Know the purpose of an exculpatory clause and understand that it is legal but looked at closely by the courts. 23.Know that lobbying is legal. 24.Knoe the Latin term "in pari delicto". 25.Know that the Statue of Frauds only applies to executorycontracts. 26.Know the difference between a void contract and a voidable one. a 27. Know that minors are only held responsible for the reasonable value of items actually furnished. 28.Know that minors' responsibility to pay for necessaries exists to help adults in their dealings with minors.
21. Licenses are authorized permissions that are granted by an authoritative body to carry out a specific activity. The purpose of licenses is to regulate the activities of businesses and professionals in a way that protects consumers and the public. Licenses can help ensure that services and products provided to the public meet certain quality standards.
22. An exculpatory clause is a legal provision that is included in a contract to relieve one party from liability for damages. The purpose of an exculpatory clause is to limit the liability of one party and protect them from claims of negligence. Although legal, exculpatory clauses are looked at closely by the courts.
23. Lobbying is a legal process of advocating for a particular position or policy to a government official or organization. The purpose of lobbying is to influence decision-making in favor of the individual, group, or organization being represented. Lobbyists can be employed by various entities, including corporations, trade associations, and nonprofit organizations.
24. The Latin term "in pari delicto" refers to a legal doctrine that means "in equal fault." This term is used in contract law to describe a situation where two parties to a contract have participated in illegal or wrongful behavior. In such cases, neither party can sue the other for damages or relief.
25. The Statute of Frauds is a legal requirement that certain types of contracts be in writing in order to be enforceable. The purpose of the Statute of Frauds is to prevent fraud and ensure that there is a clear record of the terms of the contract. However, the Statute of Frauds only applies to executory contracts, which are contracts that have not yet been fully performed.
26. A void contract is a contract that is not enforceable from the beginning because it is illegal or against public policy. A voidable contract, on the other hand, is a contract that is enforceable but may be voided by one of the parties due to some defect, such as fraud, duress, or undue influence
27. Minors are only held responsible for the reasonable value of items actually furnished. This means that if a minor enters into a contract, they can be held liable for any benefits they receive, but only up to the reasonable value of those benefits. The purpose of this rule is to protect minors from being taken advantage of in contracts with adults.
28. Minors' responsibility to pay for necessities exists to help adults in their dealings with minors. Necessaries are items that are essential for the minor's well-being, such as food, clothing, shelter, and medical care.
If a minor contracts for necessities, they can be held liable for the reasonable value of those items. The purpose of this rule is to ensure that minors receive the necessities of life, while also protecting the interests of adults who provide them.
To know more about void contract refer to:
https://brainly.com/question/14838552
#SPJ11
QUESTIONS:
1) What is the primary reason for determining project progress and results?
2) Using an example, describe possible changes that might occur if project progress is not as planned.
3) Describe how a project manager can determine project progress for each element in the project balanced scorecard.
Monitoring project progress and results is essential for evaluating the effectiveness of project execution. It allows project managers to identify deviations from the planned schedule, budget, or quality standards. This enables timely corrective actions and ensures the project remains on track to achieve its objectives.
1. The primary reason for determining project progress and results is to assess the effectiveness and efficiency of the project's execution and to ensure it is on track to meet its objectives.
Monitoring progress allows project managers to identify any deviations from the planned schedule, budget, or quality standards, enabling them to take corrective actions in a timely manner.
Monitoring project progress is crucial as it provides valuable insights into the project's health and performance. By comparing the actual progress against the planned milestones and deliverables, project managers can identify potential risks, bottlenecks, or areas requiring additional resources or attention.
This information helps them make informed decisions, adjust project plans, allocate resources effectively, and communicate with stakeholders about the project's status and any necessary adjustments.
2. If project progress is not as planned, several changes and consequences may arise. For example, if the project is behind schedule, it can lead to delays in the delivery of the final product or service. This may result in dissatisfied stakeholders, financial losses due to extended project durations, or missed market opportunities.
In such cases, the project manager might need to adjust the project timeline, allocate additional resources, or revise the project scope to expedite progress.
Similarly, if the project exceeds the budget, it can strain the financial resources allocated for the project, potentially impacting the availability of funds for other initiatives. This might require cost-cutting measures, renegotiating contracts, or seeking additional funding to bring the project back on track.
Monitoring project progress helps project managers detect such deviations early on, allowing them to implement appropriate measures to mitigate risks and minimize the negative impact on project outcomes.
3. To determine project progress for each element in the project balanced scorecard, a project manager can follow these steps:
Identify the key elements in the project balanced scorecard, such as financial performance, customer satisfaction, internal process efficiency, and learning and growth.Define specific metrics and indicators for each element that align with the project's objectives and goals.Collect data and measure the performance of each element based on the defined metrics.Compare the actual performance against the target or desired performance levels to assess the progress.Analyze the results and identify any gaps or areas requiring improvement.Take corrective actions or make adjustments to address the identified gaps and improve project performance.Continuously monitor and track the progress of each element, regularly updating the project balanced scorecard with the latest data.By following these steps, a project manager can gain a comprehensive understanding of the project's progress across different dimensions and make informed decisions to ensure project success.To know more about project progress, refer to the link:
https://brainly.com/question/28962720#
#SPJ11
This is a consumer behavior course
How does consumer behavior foster consumer addiction?
Explain using an example and the perspective of a marketer.
Consumer behavior is the study of consumers' actions and preferences, which is crucial for marketers to comprehend in order to create goods and services that meet consumer needs. Consumer addiction can be fostered by understanding consumer behavior, and marketers may utilize this knowledge to create compelling advertising campaigns or create new and interesting products and services to attract and retain customers.
There are various ways in which consumer behavior fosters consumer addiction. First, marketers often seek to create demand for their products and services, which can lead to consumers developing a dependency on those products or services. This can be achieved through various means, such as product placement, advertising, and promotions. For instance, Coca-Cola has an outstanding advertising campaign, which uses catchy jingles and bright colors to attract customers.Marketers also use psychological methods to appeal to consumers and encourage them to buy more. For instance, the use of bright colors, upbeat music, and attractive packaging are all designed to draw attention to a product. This makes it more likely that a consumer will buy the product, even if it is not something they need or intended to buy.Finally, consumer addiction can be fostered by the use of social media. Marketers can use social media platforms to build customer loyalty and encourage customers to return. By creating a social media presence, they can communicate with customers, offer promotions, and create a sense of community. For example, Starbucks has a strong social media presence, which includes a mobile app that allows customers to order and pay for drinks, and a rewards program that encourages customers to return for more purchases.In conclusion, marketers use consumer behavior to foster consumer addiction by creating demand for their products, using psychological methods, and utilizing social media to build customer loyalty.
Through the creation of compelling advertising campaigns and new and interesting products, marketers can attract and retain customers and create long-term customer relationships.
To know more about Consumer Behavior visit-
https://brainly.com/question/10073130
#SPJ11
Question 8
These are cash received in advance but not yet earned.
1 Point
Unearned revenues
(B) Prepayments
Prepaid Expenses
▸ Deferred Expenses
Question 9
1 Point
This method of recording cash received in advance but not yet earned recognizes a liability in its adjusting entry.
Expense method
B) Asset Method
(C) Income method
Liability method
Question 10
It is the difference between the Acquisition Cost and Salvage Value of a depreciable asset.
1 Point
A Depreciable Cost
℗ Depreciation Expense
Accumulated Depreciation
▸ Carrying Value
Question 11
1 Point
It is the systematic and rational allocation of the depreciable cost of an asset over its estimated useful life.
Depreciation
Allowance for Bad Debts
Adjusting Entry
▸ Salvage Value
Question 12
1 Point
Decide whether the error may or may not be revealed by drafting a trial balance: An equipment purchase for P 700,000 cash was recorded as debit to Supplies Expense and credit to Cash
A can be revealed
May not be revealed
Neither; unaccountable transaction
Question 13
1 Point
Statement : Equality of the debits and credits in the trial balance ensures that posting has been performed correctly.
Statement II: The sequence of the account titles in the trial balance depends upon the size of the account balances.
A Both Statements are TRUE
Both Statements are FALSE
Only Statement I is TRUE
Only Statement II is TRUE
Unearned revenuesExplanation:Cash received in advance is termed as revenue earned in advance and cash is received before the revenue is earned is known as Unearned revenue. Liability methodExplanation:When cash is received in advance before revenue is earned.
A liability is recognized in its adjusting entry. This method of recording cash is known as the liability method.Question 10Answer: Carrying ValueExplanation:The carrying value of an asset is the difference between the acquisition cost and salvage value of a depreciable asset.Question 11Answer: DepreciationExplanation:The systematic and rational allocation of the depreciable cost of an asset over its estimated useful life is known as depreciation.
Question 12Answer: Can be revealedExplanation:The error of recording equipment purchase for P 700,000 cash was recorded as a debit to Supplies Expense and credit to Cash may be revealed by drafting a trial balance.Question 13Answer: Only Statement I is TRUEExplanation:Equality of the debits and credits in the trial balance ensures that posting has been performed correctly, which is true. But the sequence of the account titles in the trial balance depends upon the size of the account balances is not true.
To know more about Unearned visit:-
https://brainly.com/question/14158364
#SPJ11
Which of the following about superannuation funds is NOT correct? Select one: a. For a defined benefit scheme, the amount of the benefit at maturity depends on the investment performance of the fund. b. It is reasonable for a person nearing retirement to change to a conservative asset allocation for their superannuation fund. c. A defined contribution or accumulation fund involves risk for the member as there is no defined payout. d. A capital guaranteed superannuation fund assures contributors that they will at least receive back the value of their investment. e. The majority of fund members make regular contributions to their superannuation fund over their working life.
For a defined benefit scheme, the amount of the benefit at maturity depends on the investment performance of the fund about superannuation funds is NOT correct
In a defined benefit scheme, the amount of the benefit at maturity is typically determined by a specific formula based on factors such as the employee's salary, years of service, and age at retirement. The investment performance of the fund does not directly impact the benefit amount received by the member. The responsibility for managing the investment risk and ensuring the promised benefits lies with the employer or the fund itself, rather than the individual member. Therefore, the correct option is a. For a defined benefit scheme, the amount of the benefit at maturity depends on the investment performance of the fund.
To learn more about Funds click here
https://brainly.com/question/32484362
#SPJ11
A stock just paid an annual dividend of $2. The dividend is expected to grow by 10% per year for the next 3 years. The growth rate of dividends will then fall steadily (linearly) from 10% after 3 years to 7% in year 6. The required rate of return is 12%. What is the stock price if the dividend growth rate will stay 0.07 (7%) forever after 6 years? In 6 years, the P/E ratio is expected to be 25 and the payout ratio to be 80%. What is the stock price when using the P/E ratio?
The stock price using the P/E ratio is $45.07.
To calculate the stock price using the dividend growth model, we need to find the present value of the dividends and the terminal value.
First, let's calculate the present value of the dividends for the first 6 years:
Year 1: Dividend = $2, Growth rate = 10%
Year 2: Dividend = $2 * (1 + 10%) = $2.20, Growth rate = 10%
Year 3: Dividend = $2.20 * (1 + 10%) = $2.42, Growth rate = 10%
Year 4: Dividend = $2.42 * (1 + 7%) = $2.59, Growth rate = 7%
Year 5: Dividend = $2.59 * (1 + 7%) = $2.77, Growth rate = 7%
Year 6: Dividend = $2.77 * (1 + 7%) = $2.97, Growth rate = 7%
Next, let's calculate the present value of the dividends for the first 6 years using the required rate of return of 12%:
PV = Dividend / (1 + r)^n
PV1 = $2 / (1 + 12%)^1 = $1.79
PV2 = $2.20 / (1 + 12%)^2 = $1.71
PV3 = $2.42 / (1 + 12%)^3 = $1.64
PV4 = $2.59 / (1 + 12%)^4 = $1.49
PV5 = $2.77 / (1 + 12%)^5 = $1.35
PV6 = $2.97 / (1 + 12%)^6 = $1.22
Now, let's calculate the terminal value using the constant growth rate of 7%:
Terminal Value = Dividend at year 7 / (r - g)
Dividend at year 7 = $2.97 * (1 + 7%) = $3.18
Terminal Value = $3.18 / (12% - 7%) = $63.60
To calculate the stock price, we sum up the present value of the dividends and the terminal value:
Stock Price = PV1 + PV2 + PV3 + PV4 + PV5 + PV6 + Terminal Value
Stock Price = $1.79 + $1.71 + $1.64 + $1.49 + $1.35 + $1.22 + $63.60
Stock Price = $72.80
Therefore, the stock price using the dividend growth model is $72.80.
Now let's calculate the stock price using the P/E ratio in 6 years.
Expected EPS in 6 years = Dividend at year 6 / Payout ratio = $2.97 / 80% = $3.71
Expected Stock Price in 6 years = P/E ratio * Expected EPS = 25 * $3.71 = $92.75
To find the present value of the stock price, we need to discount it back to the present using the required rate of return of 12% for 6 years:
PV of Stock Price = Expected Stock Price / (1 + r)^n
PV of Stock Price = $92.75 / (1 + 12%)^6 = $45.07
Therefore, the stock price using the P/E ratio is $45.07.
Learn more about stock price here:-
https://brainly.com/question/30358512
#SPJ11
suppose a one-bedroom rental listing in this large city is selected at random. what can be said about the probability that the listed rent price will be at least $930?
The z-score of 1.13 corresponds to a probability of 0.68. In other words,there is a 68% chance that the sample mean rent price will be greater than $900.
How is this so?(a) The probability that the listed rent price will be at least $930 is 0.16. This can be calculated using the z-score formula -
z = (x - μ) / σ
z is the z-score
x is the rent price
μ is the population mean ($880)
σ is the population standard deviation ($50)
z = (930 - 880) / 50 = 0.9
b) z = (900 - 880) / 14.14
= 1.13
Learn more about probability at:
https://brainly.com/question/24756209
#SPJ4
Full Question:
Although part of your question is missing, you might be referring to this full question:
Suppose monthly rental prices for a one-bedroom apartment in a large city has a distribution that is skewed to the right with a population mean of $880 and a standard deviation of $50.
(a) Suppose a one-bedroom rental listing in this large city is selected at random. What can be said about the probability that the listed rent price will be at least $930?
(b) Suppose a random sample 30 one-bedroom rental listing in this large city will be selected, the rent price will be recorded for each listing, and the sample mean rent price will be computed. What can be said about the probability that the sample mean rent price will be greater than $900?
1. One way of screening in the automobile insurance market is for companies to
A. offer policies with different deductibles and different premiums.
B. eliminate policies with no−claim bonuses because these policies are usually not profitable.
C. insure only careful drivers.
D. insure only risky drivers.
E. offer warranties.
One way of screening in the automobile insurance market is for companies to offer policies with different deductibles and different premiums.
The correct option is B.
They employ a variety of tools to achieve this, one of which is offering different policies with different premiums and deductibles. By offering different policies with different premiums and deductibles, insurers can attract different kinds of customers.For example, a customer who wants a lower monthly premium may opt for a policy with a higher deductible. Conversely, a customer who wants comprehensive coverage and can afford a higher monthly premium may choose a policy with a lower deductible.
The choice of deductible and premium can signal to the insurer whether the customer is high or low risk. In general, higher deductibles and lower premiums attract riskier drivers, while lower deductibles and higher premiums attract safer drivers. Therefore, by offering policies with different premiums and deductibles, insurers can screen for risk and price their policies accordingly.In addition to offering different policies, insurers may also use other screening tools, such as driving records, credit scores, and age. By using these tools, insurers can identify drivers who are more likely to file claims and adjust their premiums accordingly. In this way, screening helps insurers to maintain profitability while providing affordable insurance to low-risk drivers.Screening in automobile insurance markets refers to the practice of distinguishing between high-risk and low-risk customers. Insurers aim to protect their profitability by identifying and separating high-risk drivers from low-risk drivers. They employ a variety of tools to achieve this, one of which is offering different policies with different premiums and deductibles. By offering different policies with different premiums and deductibles, insurers can attract different kinds of customers. For example, a customer who wants a lower monthly premium may opt for a policy with a higher deductible.
To know more about insurance visit:
https://brainly.com/question/989103
#SPJ11
you have a $300,000 30-year FRM at 3.5% and can refinance it at 3%. Assuming refinancing costs are $7,000, how long would you need to stay in your home to make the payment savings worthwhile? 75 months 95 months 05 months 105 months QUESTION 20 If I bought an MBS with a CPR of 52.41 at a 4% discount, what is my approximate P&L impact? 14 cent loss 24 cent loss 14 cent gain 24 cent gain 30x40
You have a $300,000 30-year FRM at 3.5% and can refinance it at 3%. Assuming refinancing costs are $7,000, how long would you need to stay in your home to make the payment savings worthwhile?
The total savings per year due to refinancing can be calculated using the given information.Savings = $300,000 × (3.5% - 3.0%) = $1,500 per yearRefinancing costs = $7,000The length of time required to make the refinancing worthwhile can be calculated using the following formula:Time = Refinancing costs ÷ Annual savingsTime = $7,000 ÷ $1,500Time = 4.67 years, which is approximately 56 months or 5 years. Therefore, the answer is 05 months.Question 2:The price of an MBS is affected by interest rates and prepayment rates.
CPR (Constant Prepayment Rate) is the rate at which a mortgage-backed security's outstanding principal balance is expected to prepay in a given year.The formula for calculating the P&L impact of an MBS is given below:Profit or Loss = MBS price × CPR × 100Approximate P&L impact = (4% × 52.41 × $100) ÷ 100 = $2.08 or 24 cent gain Therefore, the answer is 24 cent gain.
To konw more about payment visit:
https://brainly.com/question/32320091
#SPJ11
You are given the following information about Tjeldbergtind, a low cost airline. 2021 2020 2019 NOK million Interest expense Interest income 3,000 4,830 600 160 215 40 Earnings before tax (11,152) 6,744 9,537 Reported tax expense (950) 215 635 (Note that 2021 tax expense is negative. Dr deferred tax asset, Cr tax expense.) a) Determine, for 2020 and 2021, (i) the effective tax rate (ii) the tax benefit of debt (iii) tax attributable to operating income (iv) operating income after tax Assume that pre-tax operating income equals earnings before interest and tax. (6 marks) b) Currently Tjeldbergtind pays no dividends. Can you still use the dividend discount model or something similar to value the stock? Do not discuss discounted free cash flow methods in this part of the question. (2 marks) c) Explain, with a mathematical expression, the free cash flow to equity based valuation method. Explain how you would derive the cash flows used. (8 marks)
a) (i) The effective tax rate for 2020 and 2021 can be calculated as the reported tax expense divided by earnings before tax (EBT).
Effective Tax Rate 2020 = Reported tax expense 2020 / EBT 2020
= 215 / 6,744
Effective Tax Rate 2021 = Reported tax expense 2021 / EBT 2021
= (-950) / (-11,152)
(ii) The tax benefit of debt can be calculated as the interest expense multiplied by the tax rate.
Tax Benefit of Debt 2020 = Interest expense 2020 * Tax Rate 2020
Tax Benefit of Debt 2021 = Interest expense 2021 * Tax Rate 2021
(iii) The tax attributable to operating income can be calculated as the reported tax expense minus the tax benefit of debt.
Tax attributable to operating income 2020 = Reported tax expense 2020 - Tax Benefit of Debt 2020
Tax attributable to operating income 2021 = Reported tax expense 2021 - Tax Benefit of Debt 2021
(iv) Operating income after tax can be calculated as the earnings before tax minus the tax attributable to operating income.
Operating income after tax 2020 = EBT 2020 - Tax attributable to operating income 2020
Operating income after tax 2021 = EBT 2021 - Tax attributable to operating income 2021
b) The dividend discount model (DDM) assumes that dividends will be paid in the future. Since Tjeldbergtind currently does not pay dividends, the DDM may not be applicable for valuing the stock. However, other valuation methods like discounted free cash flow (DCF) can still be used to value the stock based on the company's expected future cash flows.
c) The free cash flow to equity (FCFE) based valuation method calculates the present value of future cash flows available to equity shareholders. The formula for FCFE is:
FCFE = Net Income - (Capital Expenditures - Depreciation) - (Change in Working Capital) + Net Borrowing
To derive the cash flows used in FCFE, you would typically start with the company's net income and adjust it for non-cash expenses (such as depreciation), changes in working capital, capital expenditures, and net borrowing (debt issuance or repayment). The resulting FCFE represents the cash flow available to be distributed to equity shareholders after meeting all necessary capital expenditures and working capital requirements. By discounting the FCFE at an appropriate discount rate, the present value of future cash flows can be determined, providing an estimate of the stock's intrinsic value.
Learn more about income here-
https://brainly.com/question/30157678
#SPJ4
What could be taken now to reduce the chances of a similar tragedy occurring in the future? In your answer, please consider what actions, if any, the various individuals and groups mentioned in question 1 could take. Please discuss how the company level, worker level and government level,
Fashion companies, workers, and government bodies must collaborate to ensure safe and ethical practices in the fashion industry. Companies must adhere to an ethical code of conduct, while workers must advocate for their rights.
The tragedy at the Rana Plaza complex highlights the dangers of underregulated working environments and the limited accountability faced by global fashion firms. This tragic event occurred in April 2013, when the Rana Plaza complex in Bangladesh collapsed, killing over 1,100 people, most of whom were workers employed by clothing manufacturers. The accident was mainly attributed to substandard building construction and poor working conditions.
To avoid similar tragedies happening in the future, the various individuals and groups mentioned in question 1 should take the following actions:
Company Level:
Fashion companies must guarantee that they source their products from reputable manufacturers that adhere to health and safety requirements. Companies should also focus on implementing and following a strict ethical code of conduct. To ensure ethical sourcing, companies can contract independent third-party organizations to conduct audits of their supply chains.
Worker Level:
To prevent future tragedies, workers must speak out against unfair working conditions and other unsafe practices. They should also form unions to represent their interests and collaborate with management to ensure their rights are protected.
Government Level:
Government bodies should enforce and tighten safety regulations to ensure that all manufacturers are held accountable for safety in their working environments. Governments should also enact legislation to ensure that companies operating in their territories adhere to the ethical code of conduct. Furthermore, government authorities should monitor the effectiveness of these regulatory mechanisms to ensure that they are regularly reviewed and adjusted.
Know more about the ethical practices
https://brainly.com/question/27962109
#SPJ11
the main difference between gni and gdp is that....
The main difference between Gross National Income (GNI) and Gross Domestic Product (GDP) is the inclusion of net income from abroad.
Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country's borders during a specific period, typically a year. It focuses on the domestic production by individuals and businesses, regardless of whether they are foreign or domestic-owned. GDP is a measure of the economic activity taking place within a country.
Gross National Income (GNI), on the other hand, measures the total income earned by the residents of a country, whether they are located within the country or abroad. GNI includes the GDP of a country plus net income from abroad. Net income from abroad refers to income earned by residents of a country from their investments or work in other countries, minus the income earned by non-residents within the country.
In simple terms, GNI takes into account the income earned by a country's residents both within and outside the country's borders, while GDP only considers the income generated within the country's borders.
The difference between GNI and GDP is particularly relevant for countries that have a significant presence in the global economy, with residents earning income from investments or employment abroad. It reflects the flow of income between the domestic economy and the rest of the world.
Understanding the distinction between GNI and GDP is important for accurately assessing a country's economic performance and living standards. GNI provides a more comprehensive measure of a country's income generation, considering both domestic and international sources, while GDP focuses solely on domestic production.
To learn more about Gross National Income refer here:
https://brainly.com/question/29646288
#SPJ11
Explain what a reverse takeover is and critically discuss
whether or not, for
shareholders of the private company, the risks of reverse
takeovers
outweigh the benefits.
A reverse takeover (RTO), also known as a reverse merger or reverse IPO, is a transaction in which a private company acquires a publicly traded company.
What does a reverse takeover do ?One of the primary benefits of an RTO is the opportunity for the private company's shareholders to access the public markets without going through the traditional initial public offering (IPO) process.
By becoming a publicly traded company, the private company can gain increased visibility and credibility in the market. This can help attract investors, facilitate potential mergers and acquisitions, and provide a platform for future growth and expansion.
In an RTO, the private company usually issues new shares to the shareholders of the public company. As a result, the existing shareholders of the private company may face dilution of their ownership stake.
Find out more on reverse takeovers at https://brainly.com/question/29360363
#SPJ4
Raquel has a $550 balance on her credit card moving into her January. Please calculate her adjustments according to her choices in the following situation.
A. According to her "SHE IS BROKE" and can only make the minimum payment which is calculated at 3 percent. What is her minimum payment?
B. What is her adjusted balance?
C. She decides to spend another $125 on clothing for a party. What is her new forward balance?
D. Unfortunately, when it's time to pay Raquel is broke again and incures her APR penalty of 18 percent. What is her forward balance?
E. She finally comes into some money and pays $150. New adjusted balance is?
Raquel's new adjusted balance after making a $150 payment is $627.03.
A. To calculate Raquel's minimum payment, we need to find 3% of her balance.
Minimum payment = 3% of $550
Minimum payment = 0.03 * $550
Minimum payment = $16.50
B. To calculate her adjusted balance, we subtract the minimum payment from her current balance.
Adjusted balance = Current balance - Minimum payment
Adjusted balance = $550 - $16.50
Adjusted balance = $533.50
C. To find her new forward balance after spending $125 on clothing, we add the purchase amount to her adjusted balance.
New forward balance = Adjusted balance + Clothing purchase
New forward balance = $533.50 + $125
New forward balance = $658.50
D. When Raquel incurs her APR penalty of 18%, we need to add the penalty to her forward balance.
Forward balance with APR penalty = New forward balance + (18% of New forward balance)
Forward balance with APR penalty = $658.50 + (0.18 * $658.50)
Forward balance with APR penalty = $658.50 + $118.53
Forward balance with APR penalty = $777.03
E. After Raquel pays $150, subtract the payment from her forward balance to find the new adjusted balance.
New adjusted balance = Forward balance with APR penalty - Payment
New adjusted balance = $777.03 - $150
New adjusted balance = $627.03
So, Raquel's new adjusted balance after making a $150 payment is $627.03.
Learn more about adjusted balance here:
https://brainly.com/question/13927466
#SPJ11