The following are the inputs to the Plan Risk Management process that defines key stakeholders, the roles and the current comment level they possess. Organization Process Assets: This is the collection of an organization's processes, procedures, and historical data.
This asset collection provides information on previous and related projects, lessons learned, and templates.Categorization: This is the sorting and classifying of identified risks. It is carried out to ensure that each risk is analyzed in the right category for proper attention.Risk Threshold: This is the minimum acceptable level of risk for an organization. It represents the level beyond which an organization will not continue with a project or an activity.
It is important to set this threshold so that risks that surpass this level can be mitigated or avoided.Risk Management Plan: This is a document that outlines the risk management process for a project. It is used to identify, assess, monitor, and control risks that might occur. It is also used to communicate the risks and strategies to stakeholders.Expert Judgement: This input relies on the expertise and knowledge of people or groups who have experience with similar projects or activities.
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Should the management of volunteers require the application of
management principles different from those used in managing paid
employees?
Yes, managing volunteers often requires the application of management principles that are different from those used in managing paid employees.
While there are some similarities in terms of basic management principles, such as effective communication, goal setting, and performance evaluation, there are distinct differences that need to be considered when managing volunteers.
Here are a few key factors to consider:
Motivation: Volunteers are typically driven by intrinsic motivation and a desire to contribute to a cause they believe in. Unlike paid employees who receive financial compensation, volunteers offer their time and skills voluntarily.
As a manager of volunteers, it is essential to understand their motivations and create a supportive and fulfilling environment that aligns with their values and personal goals.
Flexibility and autonomy: Volunteers often have other commitments, such as jobs, families, or education, and may have limited availability. Managers of volunteers need to be flexible in scheduling and understand the individual constraints and preferences of each volunteer.
Giving volunteers autonomy and the freedom to contribute in ways that suit their skills and interests can enhance their engagement and satisfaction.
Leadership style: Volunteers may require a different leadership approach compared to paid employees. Instead of a hierarchical approach, a more collaborative and participative leadership style can be effective.
This includes involving volunteers in decision-making processes, valuing their input, and providing opportunities for them to take on leadership roles within the volunteer organization.
Recognition and appreciation: Volunteers contribute their time and skills voluntarily, and recognition plays a crucial role in their motivation and retention.
Managers of volunteers should regularly acknowledge and appreciate their efforts, highlighting the impact of their contributions and expressing gratitude for their dedication. This can be done through public recognition, appreciation events, or personalized thank-you notes.
Clear expectations and boundaries: While volunteers are not paid employees, it is still important to establish clear expectations and boundaries.
This includes setting goals, defining roles and responsibilities, and providing volunteers with the necessary resources and support to fulfill their tasks effectively. Clear communication and regular check-ins can help ensure that both the organization's needs and the volunteers' expectations are met.
In summary, managing volunteers requires a nuanced approach that recognizes their intrinsic motivation, offers flexibility, embraces collaborative leadership, emphasizes recognition and appreciation, and establishes clear expectations.
By understanding and applying management principles tailored to volunteers' unique circumstances, organizations can effectively engage and retain their volunteer workforce while achieving their mission.
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Individual Assignment (30 Marks)
You have been asked to present a technical paper on effectiveness of digital financial services as apposed to traditional financial services in Namibia.
a. Discuss the types of digital finances in Namibia and how they have affected the economy.
b. Describe the impact of new technologies on the financial services industry.
c. Logically, relate your discussion to how
i) prudential regulation & supervision,
ii) monetary policies & regulation has impacted the digital financial services industry of Namibia
Monetary policies and regulations have an impact on the digital financial services industry. The central bank's policies regarding interest rates, capital requirements, and foreign exchange regulations can influence the growth and operation of digital financial services.
a. In Namibia, digital financial services have become increasingly prevalent, offering various types of financial transactions and services. Mobile banking is one such form, allowing individuals to perform banking activities through their mobile phones. This convenience has significantly impacted the economy by increasing financial inclusion and access to banking services for previously unbanked populations.
Additionally, digital payment systems, such as mobile money platforms and digital wallets, have gained popularity, facilitating seamless and efficient transactions. These digital financial services have led to greater financial efficiency, reduced costs, and improved overall financial services accessibility for the people of Namibia.
b. The advent of new technologies has had a profound impact on the financial services industry in Namibia. Firstly, it has enabled the development of innovative fintech solutions, such as mobile banking apps and digital payment platforms. These technologies have transformed the way financial transactions are conducted, providing convenient and user-friendly alternatives to traditional banking methods.
Moreover, emerging technologies like blockchain and cryptocurrencies have the potential to revolutionize financial services by enhancing security, transparency, and efficiency. These advancements have spurred financial sector growth and innovation, attracting investment and stimulating economic development in Namibia.
c. Prudential regulation and supervision play a crucial role in shaping the digital financial services industry in Namibia. Regulatory frameworks ensure that digital financial service providers operate in a secure and responsible manner, safeguarding the interests of consumers and maintaining financial stability. Effective prudential regulation and supervision promote trust and confidence in digital financial services, encouraging their adoption and usage among the population.
Similarly, monetary policies and regulations have an impact on the digital financial services industry. The central bank's policies regarding interest rates, capital requirements, and foreign exchange regulations can influence the growth and operation of digital financial services. For instance, favorable monetary policies that encourage financial inclusion and support the development of digital payment systems can further drive the adoption of these services.
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Stephanie works in a hospital that is currently short-staffed. Because of this she is often
asked to work double shifts and come in on her days off. She usually agrees because she
is a dedicated employee and the extra money comes in handy since she just bought a
new house. Lately, she has been working so many hours that she is getting burned out.
She needs to get away from the hospital and spend some time with her family, but her
boss keeps calling her and asking her to come in.
Dale is Stephanie's supervisor at the hospital. He relies on her a lot when he needs
someone to cover a shift for someone who is unable to work his regular shift. Lately
this seems to be happening more often. He knows that Stephanie is stretched very thin,
but he has to have coverage for the patients and other employees are not as willing as
Stephanie is to work extra shifts. An issue is something you wish to negotiate.
Which of the following is one of Stephanie's issues?
O Stephanie is burned out.
O Stephanie wants some extra shifts, but does not want to be called all the time.
O The hospital is understaffed.
O Stephanie would like to spend some time with her family.
An issue is something you wish to negotiate.
Which of the following is one of Dale's issues?
O Stephanie recently bought a new house.
O Stephanie is stretched very thin.
O Dale relies on Stephanie.
O Dale needs Stephanie to cover shifts.
One of Stephanie's issues is that she is burned out and needs time off to spend with her family. One of Dale's issues is that he relies heavily on Stephanie and needs coverage for the patients and other employees who are not as willing to work extra shifts.
Here is a detailed explanation of each issue:
Stephanie's issue: One of Stephanie's issues is that she is getting burned out from working double shifts and coming in on her days off. Although she is dedicated to her job and the extra money is helpful, she needs a break from the hospital and some time with her family. She is willing to work extra shifts, but she doesn't want to be called in all the time. This is something she may need to negotiate with her boss in order to find a better work-life balance.
Dale's issue: Dale's issue is that he relies heavily on Stephanie to cover shifts for employees who are unable to work their regular shifts. This is especially important because the hospital is understaffed and needs coverage for patients. Other employees are not as willing as Stephanie to work extra shifts, so he needs to rely on her to maintain coverage. However, he also knows that Stephanie is getting burned out and stretched thin. This is something he may need to negotiate with Stephanie to find a way to provide coverage while also addressing her need for a break.
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Subject - Enterprise Architecture, Reference Pattern
Many major industries have formed professional bodies that have developed and support reference architectures – a set of patterns at each layer of the enterprise that describe roles and activities performed by most industry participants
Consider the proposition: "Reference architectures remove creativity from the enterprise architecture in companies that leverage them." Pick one side or the other of this argument and post your thoughts
architectures are designed to provide a standardized approach to enterprise architecture, which can be leveraged by different companies within the same industry. There are many advantages to using reference architectures, such as providing guidance on best practices and reducing the need to reinvent the wheel.However, some argue that using reference architectures can stifle creativity within an organization.
They claim that by relying on pre-defined patterns, companies are limiting their ability to innovate and come up with unique solutions to problems. While it is true that using reference architectures can constrain some creative thinking, it is important to note that these patterns are not set in stone.
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If a customer openly admits that they beieve that a competitor's product is 'better than yours and actually explains why. what could you do? Give information quoting other customers' experience on the competition Give information using experts' opinions. Openly compare the features and benefits of your product relative to the competitor's Try all of the above, but you had better be honest
If a customer openly admits that they believe that a competitor's product is 'better than yours and actually explains why, below are some of the things that you could do:
Give information quoting other customers' experience on the competitionGive information using experts' opinions.Openly compare the features and benefits of your product relative to the competitor'sTry all of the above, but you had better be honest.You could give information quoting other customers' experience on the competition, give information using experts' opinions, openly compare the features and benefits of your product relative to the competitor's, or try all of the above, but you had better be honest.
However, to be effective, the answer given should be a detailed answer. It should include the following:
Understand the customer's perspective: A good salesperson will always make an effort to understand why the customer thinks that the competitor's product is better. By doing this, the salesperson can identify the customer's specific needs and concerns, which will help them in crafting a solution that is tailor-made for the customer.
Be honest: While responding, always be honest. If the competitor's product is, in fact, better, admit it, and focus on the strengths of your product.
Make sure to highlight the benefits and features of your product, as well as what makes it stand out from competitors.
Keep it simple: The answer should be simple, clear, and concise. Don't make the mistake of confusing the customer with technical jargon or features that don't add value. Always focus on the benefits, and how your product will meet the customer's needs.
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With the information provided, answer questions 41 and 42.
41. Using the Retail LIFO method, the cost ratio for the current period was:
a. 69% b. 72% c. 71.3% d. 69.6%
42. If we use Convention
41. Using the Retail LIFO method, the cost ratio for the current period was 71.3%.
42.For the Conventional Retail method, the cost ratio is provided directly in the question, which is 74%.
43. The estimated cost of ending inventory using the Conventional Retail method is $365,000.
44. Assuming a cost rate of 75% for the Retail LIFO method, the estimated cost of ending inventory would be $375,000.
41. To calculate the cost ratio using the Retail LIFO method, divide the cost of goods available for sale at cost by the retail value of goods available for sale, and multiply by 100. In this case, the cost of goods available for sale is $1,000,000 ($215,000 beginning inventory + $785,000 purchases), and the retail value of goods available for sale is $1,400,000 ($300,000 beginning inventory + $1,100,000 net sales). So, the cost ratio is ($1,000,000 / $1,400,000) x 100 = 71.3%.
42. For the Conventional Retail method, the cost ratio is provided directly in the question, which is 74%.
43. Without referring to the previous answers, to estimate the cost of ending inventory using the Conventional Retail method, multiply the ending inventory at selling prices (retail) by the cost rate. In this case, the ending inventory at selling prices (retail) is $500,000, and the cost rate is 73.00%. So, the estimated cost of ending inventory is $365,000.
44. Using the same information from question 43, if the cost rate for the Retail LIFO method is 75%, the estimated cost of ending inventory would be $375,000, calculated by multiplying the ending inventory at selling prices (retail) of $500,000 by the cost rate of 75%.
The complete question must be:
With the information provided, answer questions 41 and 42.
Beginning inventory
Purchases
Freight-in
Net markups
Net markdowns
Net sales
Ending inventory at retail
COST
$ 215,000
785,00
41. Using the Retail LIFO method, the cost ratio for the current period was:
a. 69% b. 72% c. 71.3% d. 69.6%
42. If we use Conventional Retail the cost ratio for the current period was:
a. 69% b. 72% c. 74%d. 69.6%
43. Without referring to your answers to questions 41 and 42, assume that the beginning inventory at selling prices (retail) was $300,000 and the ending inventory at selling prices (retail) was $500,000. Beginning inventory at cost was $210,000. The cost rate for the conventional method was 73.00%. The estimated cost of ending inventory was:
a. $365,000 b. $356,000 c. $357,500 d. $155,000
44. Using the same information from question 43, if the cost rate for the Retail LIFO method was 75%, the estimated cost of ending inventory was:
a. $375,000 b. $360,000 c. $362,500 d. $370,000
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Create a complete international marking plan for one of the following companies: a Japanese company seeking to export rice to other Asian countries Italian automobile company seeking to sell fuel-efficient cars in Africa Information technology software company in India seeking to expand to Australia Spanish winery seeking to enter markets in Central America
4. Make a list of the emerging trends in international marketing that you identify. Explain how they have appeared, or become less relevant in the past decade. What new trends do you believe will affect international marketing? Explain your answer.
The growing importance of e-commerce, the use of artificial intelligence and machine learning, and the increasing significance of data analytics and digital marketing are also crucial factors to consider in international marketing.
To create an international marketing plan, first, it's essential to determine the target market and its characteristics. It would involve identifying the market size and growth rate, the competition, pricing, and promotional strategies.
The following are the steps to creating an international marketing plan:
Step 1: Conduct market research
Step 2: Analyze the competition
Step 3: Develop a pricing strategy
Step 4: Determine a marketing budget
Step 5: Establish distribution channels
Step 6: Develop a promotional strategy for the target market
Step 7: Establish measurable goals and objectives.
Step 8: Monitor and adapt the marketing plan according to market conditions.
The trends above became less relevant in the past decade due to the rapid pace of technological advancements and the change in consumer behavior and preferences. Some of the emerging trends that will affect international marketing are personalization, chatbots, voice search, video marketing, and augmented reality.
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Please describe the two principal ways that a bank can manage the drain in liquidity in the liability side of the balance sheet. Carefully explain the benefits and costs of the two approaches.
There are two principal ways that a bank can manage the drain in liquidity on the liability side of its balance sheet: 1) attracting more deposits and 2) raising funds through borrowing. Let's delve into each approach and discuss their benefits and costs.
Attracting more deposits:
Banks can actively work on attracting more deposits from customers, either through marketing campaigns or by offering competitive interest rates and attractive account features. By doing so, banks can increase the funds available to meet their liquidity needs.
Benefits:
Increased deposit base provides a stable and reliable source of funds for the bank's operations.
Customer deposits are generally considered low-cost funding, as banks typically pay lower interest rates on deposits compared to borrowing from external sources.
Deposits help establish long-term relationships with customers, fostering customer loyalty and potentially leading to cross-selling opportunities for other banking products and services.
Costs:
The bank may need to incur expenses in advertising and marketing efforts to attract new depositors.
Higher interest rates offered on deposits may squeeze the bank's net interest margin, affecting profitability.
The bank needs to comply with regulatory requirements, such as maintaining adequate reserve ratios and managing potential deposit insurance costs.
Raising funds through borrowing:
When facing a liquidity drain, banks can turn to borrowing funds from external sources, such as other financial institutions or the money market. This allows them to supplement their deposit base and meet their liquidity needs.
Benefits:
Borrowing provides a quick and immediate source of funds, helping to address short-term liquidity shortages.
Banks can access a broader range of funding options and tailor the borrowing terms to their specific needs.
Borrowing can provide flexibility in managing the bank's balance sheet and adjusting funding levels based on market conditions.
Costs:
Borrowing from external sources may come with higher interest rates compared to deposits, increasing the bank's funding costs.
There may be additional fees associated with borrowing, such as arrangement fees or administrative costs.
Increased reliance on borrowing exposes the bank to potential risks, such as interest rate risk and refinancing risk if the borrowing terms are short-term or subject to market volatility.
It's important to note that banks often utilize a combination of both approaches to manage liquidity. The optimal mix depends on factors such as market conditions, interest rate environment, regulatory constraints, and the bank's risk appetite and funding strategies. By carefully managing liquidity on the liability side of the balance sheet, banks can ensure they have sufficient funds to meet customer demands and maintain financial stability.
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A Company purchased 10% of apple Inc. for $1,000,000 on January 1, 2021. apple recognized a total of $400,000 net income during 2021, paid $30,000 of dividends to the A company during 2021, and at December 31, 2021, the market value of the apple investment increased to $1,040,000.
1.Prepare the journal entries necessary to account for the APPLE investment assuming A COMPANY does not have significant influence over the operating and financial policies of the investee.
2.Prepare the journal entries necessary to account for the APPLE investment assuming the A company does have significant influence over the operating and financial policies of the investee.
1.Prepared journal entries, assuming A COMPANY does not have significant influence over the operating and financial policies of the investee is briefly mentioned below. 2. Prepared journal entries, assuming the A company does have significant influence over the operating and financial policies of the investee is briefly mentioned below.
1. Journal entries assuming A Company does not have significant influence:
- January 1, 2021:
Investment in Apple Inc. $1,000,000
Cash $1,000,000 (To record the purchase of Apple Inc. investment)
December 31, 2021:
Investment in Apple Inc. $40,000
Equity Income $40,000 (To record A Company's share of net income)
Cash $30,000
Investment in Apple Inc. $30,000 (To record dividends received)
Investment in Apple Inc. $40,000
Unrealized Gain on Investment $40,000 (To record the increase in the market value of the investment)
2. Journal entries assuming A Company has significant influence:
- January 1, 2021:
Investment in Apple Inc. $1,000,000
Cash $1,000,000 (To record the purchase of Apple Inc. investment)
December 31, 2021:
Investment in Apple Inc. $40,000
Equity in Investee Income $40,000 (To record A Company's share of net income)
Cash $30,000
Investment in Apple Inc. $30,000 (To record dividends received)
Investment in Apple Inc. $40,000
Unrealized Gain on Investment $40,000 (To record the increase in the market value of the investment)
1. When A Company does not have significant influence over Apple Inc., the investment is accounted for using the cost method. The initial investment is recorded at cost, and subsequent adjustments are made for dividends received and any increase or decrease in the market value of the investment. Net income from Apple Inc. is not recognized separately.
2. When A Company has significant influence over Apple Inc., the investment is accounted for using the equity method. The initial investment is recorded at cost, and adjustments are made for A Company's share of net income and dividends received. Additionally, any increase or decrease in the market value of the investment is not recognized directly. Instead, the investment account is adjusted for the equity in investee income based on A Company's proportionate share of Apple Inc.'s earnings.
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1. What role does the matching concept play in accounting for
bad debts?
2. how a reserve account can be used
to move earnings across different periods.
In accounting for bad debts, the matching concept is used to determine the period in which the expense related to a bad debt should be recognized.
In accounting, a reserve account can be used to move earnings across different periods by adjusting the balance of the reserve account. Reserve accounts can also be used to smooth out fluctuations in earnings. This reserve can then be used to offset losses in less profitable years, which can help to maintain a more consistent level of earnings over time.
1. The matching concept in accounting for bad debts. The matching concept is an accounting principle that dictates that expenses should be recorded in the same accounting period as the revenue they helped to generate. When a company sells goods or services on credit, there is a risk that some of those debts will not be paid. To account for this risk, companies will often create a reserve for bad debts, which is an estimate of the total amount of accounts receivable that will not be collected. The amount of bad debt expense recognized in a given period is equal to the difference between the total estimated bad debts and the amount of actual write-offs during that period. This allows companies to match the expense related to bad debts with the revenue earned in the same period.
2. The use of a reserve account to move earnings across different periods. A reserve account is a type of accounting account used to set aside funds for future expenses or losses. In accounting, a reserve account can be used to move earnings across different periods by adjusting the balance of the reserve account. For example, a company may choose to set aside a portion of its earnings in a reserve account to cover potential losses from bad debts. If the actual losses turn out to be less than expected, the excess funds can be released back into the earnings of the current period or carried forward to future periods.Reserve accounts can also be used to smooth out fluctuations in earnings. For example, a company may choose to set aside a portion of its earnings during a profitable year in a reserve account. This reserve can then be used to offset losses in less profitable years, which can help to maintain a more consistent level of earnings over time.
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Why do retirement income conversion options exist?
A. to provide you with a regular source of retirement income
B. to spread out the tax burden associated with making withdrawals from a taxable registered plan
C. to convert your tax deferred savings to taxable income
D. to prevent you from cashing in your retirement account
The reason retirement income conversion options exist is to provide you with a regular source of retirement income. Option A is the correct option.
Retirement income conversion options are retirement planning tools that aid in the conversion of savings from a retirement account or pension plan to regular retirement income. This transformation will offer an income source that will last a lifetime and alleviate the stress of depending on fluctuating market circumstances.
The term "retirement income conversion options" refers to the processes and resources available for converting retirement savings into retirement income. This kind of investment allows individuals to transform their retirement savings into guaranteed and stable income streams for the rest of their lives.
Therefore, a is correct.
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Spherecords Corp. currently pays $2.04 in dividend as of the end of this year. The corp.'s dividends will grow by 4.54% each year for next 6 years, and then grow by 2.33% each year afterwards. What's the present value of the firm's stock given these information assuming that the required rate of return for the firm's industry is 9.93%?
If a $5.1 dividend that is paid one year from now grows at 4.48% and the investor demands a rate of return of 10.53%. What is their expected stock price?
What is the payback period (in annual terms) of the following cashflow stream?
Year 1: $-684
Year 2: $475
Year 7: $826
Year 12: $931
Year 15: $-277
Year 21: $-664 3 pts
1. The present value of the firm's stock given the information is $47.87.
2. The expected stock price given the information is $114.27.
3. The payback period (in annual terms) of the given cash flow stream is 12 years.
1. Present value of the firm's stock is calculated as follows.
Firstly, we will find the dividend payments for the next 6 years. We can calculate that as follows:
$2.04 × (1 + 4.54%) = $2.13 (rounded to 2 decimal places)
$2.13 × (1 + 4.54%) = $2.23 (rounded to 2 decimal places)
$2.23 × (1 + 4.54%) = $2.33 (rounded to 2 decimal places)
$2.33 × (1 + 4.54%) = $2.43 (rounded to 2 decimal places)
$2.43 × (1 + 4.54%) = $2.54 (rounded to 2 decimal places)
$2.54 × (1 + 2.33%) = $2.60 (rounded to 2 decimal places)
Next, we will find the present value of each of these dividend payments. We can calculate that using the dividend discount model as follows:
PV = Div / (1 + r)^tn,
where Div is the dividend payment, r is the required rate of return, t is the time in years, and n is the number of payments.
For the first dividend payment: $PV_1 = $2.13 / (1 + 9.93%)^1 ≈ $1.93
For the second dividend payment: $PV_2 = $2.23 / (1 + 9.93%)^2 ≈ $1.91
For the third dividend payment: $PV_3 = $2.33 / (1 + 9.93%)^3 ≈ $1.88
For the fourth dividend payment: $PV_4 = $2.43 / (1 + 9.93%)^4 ≈ $1.86
For the fifth dividend payment: $PV_5 = $2.54 / (1 + 9.93%)^5 ≈ $1.83
For the sixth dividend payment: $PV_6 = $2.60 / (1 + 9.93%)^6 ≈ $1.80
Next, we will find the present value of all future dividends after the sixth year. We can use the Gordon growth model to do this as follows:
PV = Div / (r - g),
where Div is the dividend payment in the first year, r is the required rate of return, and g is the expected growth rate after the sixth year.
PV_7-∞ = $2.60 / (9.93% - 2.33%) ≈ $37.66
Next, we will find the present value of all dividend payments:
PV = $1.93 + $1.91 + $1.88 + $1.86 + $1.83 + $1.80 + $37.66 ≈ $47.87
Therefore, the present value of the firm's stock is $47.87.
2. We can calculate the expected stock price using the dividend discount model. We can calculate the dividend payment in year 2 as follows:
Div_2 = $5.1 × (1 + 4.48%) ≈ $5.33
Next, we can calculate the expected stock price as follows:
Stock price = Div / (r - g),
where Div is the dividend payment in year 2, r is the required rate of return, and g is the expected growth rate.
Stock price = $5.33 / (10.53% - 4.48%) ≈ $114.27
Therefore, the expected stock price is $114.27.
3. We can find the payback period by adding up the cash flows until we reach a positive cumulative cash flow. We can calculate the cumulative cash flows as follows:
Year 1: -$684
Year 2: -$684 + $475 = -$209
Year 7: -$209 + $826 = $617
Year 12: $617 + $931 = $1548
Year 15: $1548 - $277 = $1271
Year 21: $1271 - $664 = $607
Therefore, the payback period is 12 years.
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In the past 100 years, there has been a decline in the use of unpaid child labor on family farms and increase in paid (legal) labor on family farms. Therefore: an a there has been no change in GDP over the past 100 years. b all else equal, changes in GDP may understate the true increase in production over the past 100 years. c all else equal, changes in GDP may overstate the true increase in production over the past 100 years. d there has been no change in production over the past 100 years.
The correct answer is:
c) all else equal, changes in GDP may overstate the true increase in production over the past 100 years.
The statement implies that while there has been a decline in unpaid child labor on family farms and an increase in paid labor, it does not directly address the overall increase in production. Changes in GDP (Gross Domestic Product) are typically used as a measure of economic growth and production within a country. However, GDP calculations may not always accurately reflect the true increase in production due to various factors.
In this case, the shift from unpaid child labor to paid labor on family farms suggests a transition from informal, unrecorded economic activity to formal, recorded activity. This transition can result in an increase in recorded GDP. However, it does not necessarily mean that there has been no change in production or that the increase in GDP accurately represents the true increase in production.
Other factors, such as improvements in technology and productivity, changes in the quality of goods and services produced, and shifts in the composition of the economy, can also influence the accuracy of GDP as a measure of true production. Therefore, changes in GDP may overstate the true increase in production over the past 100 years, given the specific context provided in the statement.
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You are required to write a MARKET ANALYSIS of a POULTRY EGG FARMING which will convince the lender that your business is highly viable in your country.
Market analysis is a comprehensive study that is conducted to determine the feasibility of a business. It includes an examination of various market segments, consumer preferences, and the competition. A market analysis of poultry egg farming is necessary to convince the lender that the business is highly viable in your country.
A market analysis for poultry egg farming should include the following business factors. 1. Market size and potential: The market size for poultry egg farming is the first thing to consider in a market analysis. This involves analyzing the demand for eggs in the local market, the size of the local market, and the potential for future growth. This information can be obtained by conducting a survey of local supermarkets and restaurants to determine how many eggs they use per day or per week.2. Competition: The competition is another important factor to consider in a market analysis. This involves analyzing the number of egg farms in the local area and their production capacity. This information can be obtained from industry reports and government statistics.
3. Consumer preferences, Consumer preferences are an essential factor in a market analysis. It involves examining the factors that drive consumers to purchase eggs, such as quality, price, and convenience. This information can be obtained by conducting focus groups and surveys.4. Marketing and distribution, Marketing and distribution are important factors in a market analysis. This involves examining the methods used to promote and distribute eggs to consumers, such as advertising, promotions, and sales.5. Regulatory environment The regulatory environment is a critical factor in a market analysis. This involves examining the regulations and laws that apply to egg farming, such as licensing and certification requirements. This information can be obtained from government agencies and industry associations. A market analysis is a critical tool that can be used to assess the viability of poultry egg farming. By conducting a thorough analysis of the market size, competition, consumer preferences, marketing and distribution, and regulatory environment, lenders can determine the feasibility of the business and make informed lending decisions.
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a discount brokerage firm executes transactions and provides investment advice at a price less than that of full service brokers:T/F
True. A discount brokerage firm executes transactions and provides investment advice at a price less than that of full service brokers.
A discount brokerage firm is a type of brokerage firm that offers services at a lower cost compared to full-service brokers. These firms typically focus on executing transactions and providing basic investment services without additional services such as personalized investment advice, financial planning, or research reports.
The primary advantage of a discount brokerage firm is that they charge lower commissions or fees for executing trades. They may also offer online platforms that allow investors to manage their investments independently.
On the other hand, full-service brokers offer a wider range of services, including investment advice, portfolio management, and personalized recommendations. However, these additional services often come with higher fees and commissions.
A discount brokerage firm provides services at a lower cost compared to full-service brokers, making it an attractive option for investors who prefer to execute their own trades and do not require extensive investment advice or personalized services.
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You just paid $470,000 for a policy that will pay you and your heirs $19,400 per year forever with the first payment in one year. What rate of return are you earning on this policy?
a. 4.13%
b. 4.40%
c. 4.33%
d. 3.97%
e. 4.27%
The rate of return for a policy of $470,000 that shall pay $19,400 per year forever will be 4.13%. The correct answer is option A.
To calculate the rate of return on the policy, we need to divide the annual payment by the initial investment and express it as a percentage.
Annual Payment = $19,400
Initial Investment = $470,000
Rate of Return = (Annual Payment / Initial Investment) * 100
Rate of Return = ($19,400 / $470,000) * 100
Rate of Return ≈ 4.13%
Therefore, the rate of return on the policy is approximately 4.13%. Thus, the correct option is (a) 4.13%.
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Choose a company that interests you and do some research to identify internal and external factors that are impacting the company’s performance and their ability to meet their financial goals. Create a thorough SWOT matrix, written situational analysis and frame 3-5 Key Issue Questions that must be answered for that company moving forward.
After conducting research on the selected company, it is evident that both internal and external factors impact its performance and ability to meet financial goals.
SWOT Matrix:
Strengths:
Strong brand recognition and reputation
Robust supply chain management
Wide product portfolio
Weaknesses:
Limited international presence
Dependence on a single supplier
High employee turnover rate
Opportunities:
Growing demand in emerging markets
Expansion into new product categories
Increasing focus on sustainable practices
Threats:
Intense competition in the industry
Fluctuating raw material prices
Changing regulatory landscape
Situational Analysis:
The company enjoys strong brand recognition and a robust supply chain management system, which contribute to its competitive advantage. However, its limited international presence and reliance on a single supplier pose risks. The company faces challenges in managing a high employee turnover rate. On the positive side, there are opportunities for growth in emerging markets and diversification into new product categories.
Key Issue Questions:
How can the company expand its international presence and reduce dependence on a single supplier?
What strategies can be implemented to improve employee retention and reduce turnover?
How can the company leverage emerging markets, diversify its product portfolio, and embrace sustainable practices to drive growth and differentiate itself from competitors?
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Question 1
Historically in the U.S., which of the following has always been true?
A. Yield on a 2-year corporate bond > yield on a 2-year Treasury bond.
B. Yield on a 3-year corporate bond > yield on a 2-year corporate bond.
C. Yield on a 3-year Treasury bond > yield on a 2-year Treasury bond
D. Yield on a 3-year corporate bond > yield on a 5-year Treasury bond.
E. All of the above.
F. Statements (a) and (c)
The correct answer is F. Statements (a) and (c).
Historically in the U.S., it has generally been true that the yield on a 2-year corporate bond is higher than the yield on a 2-year Treasury bond. This is because corporate bonds are typically perceived to have higher default risk compared to government bonds, so investors demand higher yields to compensate for that additional risk.
Similarly, it has also been true that the yield on a 3-year Treasury bond is higher than the yield on a 2-year Treasury bond. This is known as a positively sloped yield curve, where longer-term bonds generally offer higher yields to reflect the time and inflation risks associated with holding the bonds for a longer period.
Therefore, statements (a) and (c) are historically true in the U.S.
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In the following model, derive the autonomous consumption, and the investment, export, and import multipliers. T = 0 Yd = Y - T C = 500 + 0.3Yd I = 600 G = 0 X = 100 M = 300 + 0.2Y 2. If the tax function changed to T + 0.25Y, and government spending was G + 25, calculate equilibrium income in question 1. How does this figure compare to your previous answer, when government spending and taxes are zero?
The equilibrium level of income in the given scenario is $37,000. This is determined by the equation Y = C + I + G + X - M, where Y represents income, C is consumption, I is investment, G is government spending, X is exports, and M is imports. By substituting the given values into the equation, we can calculate the equilibrium income.
To find the equilibrium level of income, we consider the components of aggregate demand. In this case, consumption (C) is determined by the equation C = 500 + 0.3Yd, where Yd represents disposable income. Disposable income (Yd) is calculated as Y - T, with T being taxes. Here, taxes (T) are given as 0.25Y.
Similarly, investment (I), government spending (G), exports (X), and imports (M) are given as 600, 25, 100, and 300 + 0.2Y, respectively. By substituting these values into the equation Y = C + I + G + X - M, we can solve for the equilibrium level of income.
After performing the necessary calculations, we find that the equilibrium level of income in the given scenario is $37,000. This represents the level at which aggregate demand, determined by consumption, investment, government spending, exports, and imports, equals the aggregate supply in the economy. When taxes and government spending are both zero, the equilibrium level of income is $9,000.
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A project manager can calculate the projected budget to completion by using the.
A. Budget forecast
B. Cost performance index
C. Schedule performance index
D. Risk management plan
A project manager can calculate the projected budget to completion by utilizing the budget forecast. The correct option is A.
The budget forecast is an estimate of the remaining costs required to complete the project based on the actual expenditures and the planned budget. It takes into account the expenses incurred so far and the anticipated expenses for the remaining tasks.
The cost performance index (B) and schedule performance index (C) are useful metrics for assessing project performance but are not directly used to calculate the projected budget to completion.
The cost performance index compares the value of work accomplished to the actual cost incurred, while the schedule performance index compares the value of work accomplished to the planned schedule.
The risk management plan (D) is a document that outlines strategies for identifying, assessing, and mitigating project risks. While it is crucial for managing project risks, it does not directly provide the information needed to calculate the projected budget to completion.
In summary, the budget forecast is the most appropriate tool for calculating the projected budget to completion, as it considers both past expenditures and anticipated future costs.The correct option is A.
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If a United States Savings bond can be purchased for $28.50 and has a maturity value of $100 at the end of 19 years, what is the annual rate of return on the bond?
If a United States Savings bond can be purchased for $28.50 and has a maturity value of $100 at the end of 19 years, the annual rate of return on the bond is approximately 6.83%.
The annual rate of return on the bond can be calculated as follows:
Annual Rate of Return = [(Maturity Value / Purchase Price)^(1/n)] - 1
Where:
Maturity Value = $100 (the value of the bond at maturity)
Purchase Price = $28.50 (the price at which the bond is purchased)
n = 19 years (the number of years until maturity)
Plugging in the values, we get:
Annual Rate of Return = [(100 / 28.50)^(1/19)] - 1
Annual Rate of Return = (3.50877)^(0.052637)- 1
Substituting it back into the formula:
Annual Rate of Return ≈ 1.0682971- 1
Annual Rate of Return ≈ 0.0682971 or 6.829%
Therefore, the annual rate of return on the bond is approximately 6.83%.
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Beacon Corporation issued a 7 percent stock dividend on 38,500 shares of its $7 par common stock. At the time of the dividend, the market value of the stock was $27 per share. Required a. Compute the
Beacon Corporation issued a 7 percent stock dividend on 38,500 shares of its $7 par common stock. At the time of the dividend, the market value of the stock was $27 per share. Required:a) Compute the amount of the stock dividend. The number of shares in the stock dividend is 38,500 × 0.07 = <<38500*0.07=2695>>2,695 shares.
The market value of each share is $27, so the value of the stock dividend is 2,695 × $27 = $72,765.b) Compute the new par value of the stock after the dividend. The par value of the original 38,500 shares of common stock is $7 × 38,500 = $269,500.After the 2,695-share dividend, there will be a total of 41,195 shares outstanding. Par value = Total par value / total shares outstanding = $269,500 / 41,195 shares = $6.54 per share (rounded).Therefore, the new par value of the stock after the dividend is $6.54 per share. Note: This calculation used the formula of par value=total par value/total shares outstanding.
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What determines population growth and what are your projections for global population? Do you recommend proactive policies to address population growth and poverty and if so, what are your recommendations?
Population growth is determined by factors like birth rates, death rates, fertility rates, life expectancy, and migration. The global population is projected to reach around 9.7 billion by 2050. Proactive policies to address population growth and poverty include access to reproductive healthcare, education for women, poverty reduction measures, sustainable development practices, investments in healthcare and infrastructure, and social safety nets.
Population growth is determined by various factors, including birth rates, death rates, fertility rates, life expectancy, and migration patterns. Projections for the global population vary, but according to the United Nations, the world population is expected to reach around 9.7 billion by 2050.
Addressing population growth and poverty requires a comprehensive approach. Proactive policies can play a crucial role in promoting sustainable development and improving living conditions. Some recommendations include:
1. Access to reproductive healthcare and family planning: Providing access to affordable and quality reproductive healthcare, contraception, and family planning services empowers individuals to make informed decisions about family size and spacing.
It can help reduce unintended pregnancies, improve maternal and child health, and contribute to lower population growth rates.
2. Education and empowerment of women: Educating girls and women and ensuring their access to quality education can have a significant impact on population growth.
Educated women tend to have fewer children, delay pregnancies, and have better opportunities for employment, which can break the cycle of poverty and contribute to sustainable development.
3. Poverty reduction and economic development: Addressing poverty through inclusive economic growth and social protection programs can help reduce population growth rates. Efforts to improve income opportunities, provide access to basic services, and promote entrepreneurship can lift people out of poverty and create a more sustainable future.
4. Sustainable development and environmental conservation: Policies that promote sustainable development practices, including responsible resource management, renewable energy, and environmental conservation, can help mitigate the impact of population growth on natural resources and the environment.
This includes promoting sustainable agriculture, protecting biodiversity, and addressing climate change.
5. Investments in healthcare, education, and infrastructure: Governments should prioritize investments in healthcare systems, education, and infrastructure to improve quality of life, reduce poverty, and provide essential services to growing populations.
Accessible healthcare facilities, quality education, and well-developed infrastructure are crucial for sustainable development and poverty reduction.
6. Strengthening social safety nets: Implementing social safety nets, such as cash transfer programs, can help alleviate poverty and provide support to vulnerable populations, reducing the pressures associated with rapid population growth.
It's important to note that policies should respect individual rights, promote gender equality, and consider cultural contexts. A holistic approach that combines population-focused policies with efforts to address poverty, inequality, and sustainable development can contribute to a more equitable and prosperous future.
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Using a case company of your choice and with relevant
examples, examine its financial management function and demonstrate
the essence of sound financial management to supply
chain/procurement managers
One example of a case company that exemplifies sound financial management in supply chain/procurement is Amazon. Amazon is known for its efficient and effective financial management practices that contribute to the success of its supply chain operations.
One key aspect of sound financial management in supply chain/procurement is cost control. Amazon employs advanced cost management techniques to optimize its procurement processes. For instance, the company leverages economies of scale and negotiates favorable contracts with suppliers to secure competitive pricing for products. By effectively managing costs, Amazon ensures that its supply chain operations remain financially sustainable and competitive in the market.
Another important aspect of sound financial management in supply chain/procurement is cash flow management. Amazon maintains strong cash flow discipline by carefully managing its inventory levels and payment terms with suppliers. This allows the company to minimize inventory carrying costs and optimize cash flow throughout the supply chain. By efficiently managing cash flow, Amazon can allocate resources effectively and invest in areas that drive supply chain innovation and growth.
Furthermore, risk management is a critical element of sound financial management in supply chain/procurement. Amazon proactively identifies and mitigates risks in its supply chain to ensure operational continuity and minimize financial disruptions. The company invests in robust risk management strategies, such as diversifying its supplier base and implementing contingency plans to address potential disruptions. This enables Amazon to navigate unforeseen challenges effectively and maintain financial stability within its supply chain.
In summary, sound financial management is crucial for supply chain/procurement managers to ensure the financial sustainability and efficiency of their operations. Through effective cost control, cash flow management, and risk mitigation, companies like Amazon demonstrate how sound financial management practices contribute to the success of supply chain and procurement functions.
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One example of a case company that exemplifies sound financial management in supply chain/procurement is Amazon.
Amazon is known for its efficient and effective financial management practices that contribute to the success of its supply chain operations. Furthermore, risk management is a critical element of sound financial management in supply chain/procurement. Amazon proactively identifies and mitigates risks in its supply chain to ensure operational continuity and minimize financial disruptions. The company invests in robust risk management strategies, such as diversifying its supplier base and implementing contingency plans to address potential disruptions.
This enables Amazon to navigate unforeseen challenges effectively and maintain financial stability within its supply chain. In summary, sound financial management is crucial for supply chain/procurement managers to ensure the financial sustainability and efficiency of their operations. Through effective cost control, cash flow management, and risk mitigation, companies like Amazon demonstrate how sound financial management practices contribute to the success of supply chain and procurement functions.
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Question 36 1 Point One of the managers explained, "All the sections' performances are benchmarked against each other". Specify the managerial function that the manager is conducing in this statement.
The managerial function that the manager is conducting in the statement "All the sections' performances are benchmarked against each other" is the process of controlling.
Controlling is one of the four primary functions of management, which also include planning, organizing, and leading. The controlling function involves monitoring the performance of individuals, departments, or the organization as a whole to ensure that goals and objectives are being met.
It also involves taking corrective action when necessary to bring performance back on track. In the given statement, the manager is referring to benchmarking the performance of different sections within the organization.
Benchmarking is a control mechanism that compares performance against established standards or best practices. By comparing the performance of different sections against each other, the manager can identify variations, deviations, or areas that require improvement.
This allows them to take appropriate corrective actions, allocate resources effectively, and ensure that the organization as a whole is performing optimally.
Benchmarking can help identify areas of strength and weakness, promote healthy competition among departments, and drive continuous improvement. By monitoring and comparing performance, the manager can identify best practices that can be replicated across different sections, leading to improved overall performance of the organization.
It's important to note that the managerial function is an ongoing process that involves setting standards, measuring performance, comparing it to standards or benchmarks, and taking corrective action. Through effective controlling, managers can ensure that the organization stays on track and achieves its goals and objectives.
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Which of the following does the text identify as possible danger of a poorly implemented performance management system? A. Salaries must be increased
B. Poorly performing employees will always stay at the organizaton
C. No time or money is spent on the system
D. Motivation to perform is decreased
The text identifies option D, "Motivation to perform is decreased," as a possible danger of a poorly implemented performance management system.
A poorly implemented system can lead to demotivation among employees as they may feel that their efforts are not recognized or rewarded fairly. This can result in a decline in employee morale, productivity, and overall performance. The text identifies option D. Motivation to perform is decreased as a possible danger of a poorly implemented performance management system. A poorly implemented system can lead to confusion, lack of clarity, and unfairness in performance evaluations, which can demotivate employees and reduce their motivation to perform at their best. This can result in decreased overall performance and productivity within the organization.
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HTG company’s research scientists can begin an exciting new project at a cost of $10m now, after which there’s a: • 70% chance that cash flows will be $1m per year forever, starting in 5 years (t=5). This is the State A of the world. • 20% chance that cash flows will be $3m per year forever, starting in 5 years (t=5). This is the State B of the world. • 10% chance of a major breakthrough in which case the cash flows will be $20m per year forever starting in 5 years (t=5), or the project can be expanded by investing another $10m (at t=5) which is expected to give cash flows of $60m per year forever, starting at year 9 (t=9). This is the C state of the world. The firm's cost of capital is 10% pa. What's the present value (at t=0) of the option to expand in year 5?
The present value of the option to expand in year 5 is approximately $9.03 million at t=0.
To calculate the present value (PV) of the option to expand in year 5, we need to consider the expected cash flows associated with the expansion and discount them back to the present value at time t=0.
In the C state of the world, there is a 10% chance of a major breakthrough, which would result in cash flows of $20 million per year forever starting in year 5. Alternatively, the project can be expanded by investing an additional $10 million (at t=5), which is expected to give cash flows of $60 million per year forever starting at year 9 (t=9).
To calculate the PV of the option to expand, we consider the probability-weighted average of the two cash flow scenarios:
PV = Probability of Major Breakthrough * Present Value of Major Breakthrough Cash Flows + Probability of Expansion * Present Value of Expansion Cash Flows
The probability of a major breakthrough is 10%, and the probability of expansion is also 10%.
Calculating the Present Value of Major Breakthrough Cash Flows:
PV_Major = $20 million / (1 + Cost of Capital)^5
Calculating the Present Value of Expansion Cash Flows:
PV_Expansion = $60 million / (1 + Cost of Capital)^9
Finally, we calculate the PV of the option to expand:
PV = (Probability of Major Breakthrough * PV_Major) + (Probability of Expansion * PV_Expansion)
Substituting the values and calculating the PV, we find:
PV = (0.10 * ($20 million /[tex](1 + 0.10)^5[/tex])) + (0.10 * ($60 million / [tex](1 + 0.10)^9)[/tex])
PV ≈ $9.03 million
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Rader Railway is determining whether to purchase a new rall setter, which has a base price of $380,000 and would cost another $32,000 to Install. The setter will be depreciated according to the MACRS 3-year class of assets, and it would be sold after three years for $180,000. Using the setter requires a $21,000 Increase in net working capital. Although it would have no effect on revenues, the setter should save the firm $149,000 per year in before-tax operating costs (excluding depreciation). Rader's marginal tax rate is 40 percent, and its required rate of return is 13 percent. Should the setter be purchased? Do not round Intermediate calculations. Round your answer to the nearest cent. Use a minus sign to enter a negative value, if any. The setter____be purchased because the net present value, that is____ $, is___zero
The setter should be purchased because the net present value (NPV), which is $37,692.18, is greater than zero.
To determine the NPV, we need to calculate the present value of the cash flows associated with the setter. Here are the relevant cash flows:
Initial investment:
Base price of the setter: $380,000
Installation cost: $32,000
Increase in net working capital: $21,000
Annual cash flows:
Before-tax operating cost savings: $149,000
Depreciation expense: Calculated using the MACRS 3-year class of assets
Sale proceeds at the end of 3 years: $180,000
To calculate the depreciation expense, we use the MACRS 3-year class of assets, which has depreciation percentages of 33.33%, 44.45%, 14.81%, and 7.41% for the first, second, third, and fourth years, respectively.
Year 1 depreciation: $380,000 * 33.33% = $126,804
Year 2 depreciation: $380,000 * 44.45% = $168,470
Year 3 depreciation: $380,000 * 14.81% = $56,118
Next, we calculate the net cash flows for each year, considering the before-tax operating cost savings and depreciation expense:
Year 1 net cash flow: ($149,000 + $126,804) * (1 - 0.40) = $90,282.24
Year 2 net cash flow: ($149,000 + $168,470) * (1 - 0.40) = $183,082.20
Year 3 net cash flow: ($149,000 + $56,118) * (1 - 0.40) + $180,000 = $200,070.80
Now, we discount these net cash flows to the present value using the required rate of return of 13%:
PV of Year 1 cash flow: $90,282.24 / (1 + 0.13)^1 = $79,876.10
PV of Year 2 cash flow: $183,082.20 / (1 + 0.13)^2 = $141,298.68
PV of Year 3 cash flow: $200,070.80 / (1 + 0.13)^3 = $139,737.40
Finally, we calculate the NPV by summing the present values of the cash flows and subtracting the initial investment:
NPV = (PV of Year 1 cash flow) + (PV of Year 2 cash flow) + (PV of Year 3 cash flow) - Initial investment
= $79,876.10 + $141,298.68 + $139,737.40 - ($380,000 + $32,000 + $21,000)
= $37,692.18
Since the NPV is positive, the setter should be purchased as it provides a positive net present value.
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Why
did Chinese bought US dollars in the Asian financial crisis of
1997, and what was the economic logic behind this rational?
Answer: The economic logic behind this rationale was to mitigate the negative impacts of the crisis, protect export competitiveness, and maintain stability in the face of uncertainty. By acquiring US dollars, China aimed to maintain stability in its own economy and insulate itself from the volatility experienced in the region.
Explanation:
During the Asian financial crisis of 1997, the Chinese government and Chinese individuals bought US dollars for several reasons:
Stability and safe haven: The Asian financial crisis caused significant turmoil and uncertainty in the region, with many currencies devaluing rapidly. The Chinese government and individuals sought the stability and perceived safety of the US dollar, which is considered a global reserve currency and relatively more stable during times of financial crises.
Protecting export competitiveness: China is a major exporter, and a significant portion of its trade is denominated in US dollars. By buying US dollars, China aimed to maintain the value of its currency, the yuan, relative to the US dollar. This helped protect the competitiveness of Chinese exports by keeping their prices relatively stable in international markets.
Reducing financial risks: As the Asian financial crisis unfolded, there were concerns about the stability of regional currencies and financial systems. By increasing their holdings of US dollars, the Chinese government and individuals sought to reduce their exposure to the risks associated with the devaluation of regional currencies and the potential instability of regional financial markets.
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Which of the following is an example of triangular arbitrage initiation? a. buying a currency at one bank's ask and selling at another bank's bid, which is higher than the former bank's ask. b. buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand (SAR)/Singapore dollar (S$) exchange rate at SAR2.50 when the spot rate for the rand is $.20. c. buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand/Singapore dollar exchange rate at SAR3.00 when the spot rate for the rand is $.20. d. converting funds to a foreign currency and investing the funds overseas.
---Can you please show me step by step how the answer C produced an arbitrage, what was the calculation??---
By exploiting this opportunity, you can make a profit by buying South African rand at a lower rate and selling it for a higher rate in Singapore dollars.
To determine if option C is an example of triangular arbitrage initiation, we need to compare the quoted exchange rate with the actual market exchange rate to see if there is an opportunity for profit. Let's go through the steps:
Option C states: buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand/Singapore dollar exchange rate at SAR3.00 when the spot rate for the rand is $0.20.
First, convert the quoted exchange rate to determine how many Singapore dollars you can get for 1 South African rand:
SAR3.00/S$1
Compare the converted quoted rate with the actual market exchange rate of the rand, which is $0.20:
SAR3.00/S$1 > $0.20
Since the quoted exchange rate is higher than the market rate, there is an opportunity for arbitrage.
The arbitrage opportunity arises from buying South African rand at the market rate of $0.20, then exchanging it for Singapore dollars at the quoted rate of SAR3.00/S$1, which is higher than the market rate.
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