The cost of new common stock (rn) is 11.86% and required return on the company's stock (rs) is also 11.86%.
(a)Average annual dividend growth rate over the past five years would be calculated as follows:Average annual dividend growth rate=(Current dividend/Dividend 5 years ago)^(1/5) - 1Substituting the values in the above equation we getAverage annual dividend growth rate = ($3.95/$2.98)^(1/5)-1= 5.20%Expected dividend for next year = $3.95 * (1+5.20%)= $4.16 per share.(b)Net proceeds, Nn, that the firm will actually receive will be calculated as follows:Underpricing and flotation costs per share = $65.84 - $58.60 = $7.24 per shareNet proceeds per share = $58.60 + $7.24 = $65.84(c)The required return on the company's stock (rs), which should equal the cost of retained earnings (rr), using constant growth valuation model will be calculated as follows:rs = D1/P0 + g whereD1 = Expected dividend for the next year = $4.16P0 = Current price of the stock = $65.84g = Growth rate = 5.20%rs = $4.16/$65.84 + 5.20% = 11.86%.(d)The cost of new common stock (rn) using constant growth valuation model will be calculated as follows:rn = D1/Nn + g whereD1 = Expected dividend for the next year = $4.16Nn = Net proceeds per share = $65.84g = Growth rate = 5.20%rn = $4.16/$65.84 + 5.20% = 11.86%.Therefore, the cost of new common stock (rn) is 11.86% and required return on the company's stock (rs) is also 11.86%.
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In 2018 company XYZ generated sales of Rs. 220 min. Operating profit has a margin of 25% on sales. Depreciation for 2018 was Rs. 8 min and tax rate 20% on operating profit. During 2018, Rs. 34.5 min was invested in additional investments. Calculate the FCF for 2018.
The Free Cash Flow for 2018 is Rs. 11.1 min which is found out by subtracting Capital Expenditure from Operating Cash Flow.
The company XYZ generated sales of Rs. 220 min
Operating profit has a margin of 25% on sales.
Depreciation for 2018 was Rs. 8 min
Tax rate 20% on operating profit
Rs. 34.5 min was invested in additional investments
Calculating Free Cash Flow (FCF)Free Cash Flow = Operating Cash Flow - Capital Expenditure
Operating Cash Flow = EBIT (1 - Tax rate) + Depreciation
EBIT (Earnings before Interest and Taxes) = Operating profit
Margin = Operating profit/SalesMargin = 25% on sales
Therefore, Operating profit = 25/100 * 220 min= Rs. 55 min
Now, EBIT (Earnings before Interest and Taxes) = Operating profit - Depreciation= Rs. 55 min - Rs. 8 min= Rs. 47 min
Now, Tax = 20% on Operating profit
= 20% of Rs. 47 min
= Rs. 9.4 min
Therefore, Earnings after Tax = EBIT - Tax
= Rs. 47 min - Rs. 9.4 min
= Rs. 37.6 min
Operating Cash Flow = Earnings after Tax + Depreciation
= Rs. 37.6 min + Rs. 8 min
= Rs. 45.6 min
Capital Expenditure = Rs. 34.5 min
Now, Free Cash Flow = Operating Cash Flow - Capital Expenditure= Rs. 45.6 min - Rs. 34.5 min= Rs. 11.1 min
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Consider the following in answering a set of questions:
Nicanor is a resident doctor of ABC Hospital. At the same time, he operates his own clinic. ABC Hospital and Nicanor’s clinic are both accredited by PhilHealth. The following were disclosed to you by Nicanor:
Income from ABC Hospital:
Gross Compensation – Php 2,800,000
13th month pay and other benefits – Php 200,000
SSS, Philhealth and other mandatory contributions – Php 50,000
Income from Clinic:
Gross receipts:
From Walk-in patients with issued receipts - Php 1,000,000
From patients paid for by Philhealth – Php 1,000,000
Expenses:
Office Rental – Php 250,000
Representation expense – Php 100,000
Salary of staff nurse – Php 250,000
Salary of family driver – Php 120,000
Salary of kasambahay – 60,000
Gas and oil – Php 50,000
Utilities expense (office) – Php 100,000
Utilities expense (house) – Php 250,000
Other information:
Receipts from patients with no issued official receipts – Php 2,000,000
Under-the-table (not reported) Commissions from pharmaceutical companies due to referrals/prescriptions of medicines – Php 500,000
Quarterly Income tax payments – Php 30,000
Tax withheld by PhilHealth (with BIR Form 2307) – Php 100,000
Tax withheld by ABC Hospital (with BIR Form 2316) – Php 300,000
If you are the Accountant of ABC Hospital, how much withholding tax should be withheld on Nicanor’s compensation for the year?
Group of answer choices
b. 1,290,000
d. 701,200
c. 0
a. 746,000
The answer is PHP 701,200. Answer: (d) 701,200. As the accountant of ABC Hospital, the withholding tax that should be withheld on Nicanor’s compensation for the year is PHP 701,200.
Here are the explanations; The compensation income that is subject to withholding tax should be the PHP 2,800,000 plus the Php 200,000. Thus, the total compensation income that is subject to withholding tax amounts to PHP 3,000,000.
The formula for computing the withholding tax is as follows: Php 3,000,000 – Php 250,000 (personal exemption) – PHP 150,000 (dependent exemption) = Php 2,600,000 taxable income
Php 2,600,000 x 30% (tax rate) = PHP 780,000 tax due
Less: Php 100,000 (tax withheld by Phil health with BIR Form 2307)
Less: Php 300,000 (tax withheld by ABC Hospital with BIR Form 2316)
Total tax due = Php 780,000 – Php 100,000 – Php 300,000 = Php 380,000
Thus, the withholding tax due from Nicanor’s compensation should be PHP 380,000 x 2 = PHP 760,000 (semi-monthly withholding tax). At the end of the year, the total withholding tax due is PHP 760,000 x 12 = PHP 9,120,000.
But since the sum of the two withholding taxes paid during the year is PHP 4,419,800, only Php 9,120,000 – Php 4,419,800 = Php 4,700,200 should be withheld on the last payroll of the year.
So, the answer is PHP 701,200. Answer: (d) 701,200.
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An example of differential pricing is
a. Offering free overnight Saturday stays
b. End of seasons discounts
c. Economy versus business class pricing
d. Increasing pricing just before the start of a sold out concert
An example of differential pricing is c. Economy versus business class pricing.
Differential pricing refers to the practice of setting different prices for the same product or service based on various factors such as customer segments, time, location, or product features. It allows businesses to capture value based on customers' willingness to pay and optimize revenue generation. Among the given options, c. Economy versus business class pricing is an example of differential pricing.
In the airline industry, different pricing tiers are offered to passengers based on the level of service and amenities provided. Economy class typically offers lower fares with fewer amenities, while business class provides a higher level of comfort, additional services, and a higher price point. This differential pricing strategy allows airlines to cater to different customer segments with varying preferences and budgets, maximizing revenue by capturing higher margins from those willing to pay for premium services.
Options a. (Offering free overnight Saturday stays), b. (End of seasons discounts), and d. (Increasing pricing just before the start of a sold-out concert) are not examples of differential pricing. Option a. describes a promotional offer rather than different pricing tiers. Option b. refers to a pricing strategy where prices are reduced at the end of a season to clear out inventory and attract customers. Option d. relates to dynamic pricing, where prices fluctuate based on demand and availability, but it does not involve different pricing tiers for the same product or service.
Therefore, among the given options, c. Economy versus business class pricing is the example that best represents differential pricing.
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An example of differential pricing is c. Economy versus business class pricing.
Differential pricing refers to the practice of setting different prices for the same product or service based on various factors such as customer segments, time, location, or product features. It allows businesses to capture value based on customers' willingness to pay and optimize revenue generation. Among the given options, c. Economy versus business class pricing is an example of differential pricing.
In the airline industry, different pricing tiers are offered to passengers based on the level of service and amenities provided. Economy class typically offers lower fares with fewer amenities, while business class provides a higher level of comfort, additional services, and a higher price point. This differential pricing strategy allows airlines to cater to different customer segments with varying preferences and budgets, maximizing revenue by capturing higher margins from those willing to pay for premium services.
Options a. (Offering free overnight Saturday stays), b. (End of seasons discounts), and d. (Increasing pricing just before the start of a sold-out concert) are not examples of differential pricing. Option a. describes a promotional offer rather than different pricing tiers. Option b. refers to a pricing strategy where prices are reduced at the end of a season to clear out inventory and attract customers. Option d. relates to dynamic pricing, where prices fluctuate based on demand and availability, but it does not involve different pricing tiers for the same product or service.
Therefore, among the given options, c. Economy versus business class pricing is the example that best represents differential pricing.
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Alex deposited RM 2000 into his own bank account (assuming at t=0). Roy deposited RM 1200 into his own bank account at the same time as Alex. Each account earns an effective interest rate of i. If the amount of interest (amount X) earned by Alex in the 10th year is equal to the amount of interest earned by Roy in 15th year. i) Find the amount X. ii) What is the total accumulated amount in both Alex and Roy accounts in 20th year, if no withdraw was made during the period?
Amount X =[tex]RM 2000 * (1 + i)^10[/tex] and By summing up two future values, we can determine the total accumulated amount in both accounts after 20 years.
To find the amount X and the total accumulated amount in both Alex and Roy's accounts, we can use the formula for compound interest:
Future Value = [tex]Present Value * (1 + interest rate)^number of periods[/tex]
i) To find the amount X, we need to calculate the future value of Alex's account after 10 years and Roy's account after 15 years. Since the interest earned by Alex is equal to the interest earned by Roy, we have:
[tex]RM 2000 * (1 + i)^10 = RM 1200 * (1 + i)^15[/tex]
Simplifying the equation, we have:
[tex](1 + i)^5 = (2/3)^(1/5)[/tex]
Taking the fifth root of both sides, we get:
[tex]1 + i = (2/3)^(1/25)[/tex]
Now, we can calculate the amount X:
Amount X =[tex]RM 2000 * (1 + i)^10[/tex]
ii) To find the total accumulated amount in both Alex and Roy's accounts after 20 years, we can use the same formula:
Future Value of Alex's account after 20 years = [tex]RM 2000 * (1 + i)^20[/tex]
Future Value of Roy's account after 20 years = [tex]RM 1200 * (1 + i)^20[/tex]
By summing up these two future values, we can determine the total accumulated amount in both accounts after 20 years.
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"Unethical digital ads are those that guarantee or promise something for the consumer but end up being misleading or deceptive". 1. Some people say that even uninformative advertising is beneficial to consumers and the economy. Evaluate this argument.(15 Marks) 2. Why is advertising to children particularly troubling to ethicists? (10 Marks)
Some people say that even uninformative advertising is beneficial to consumers and the economy. Evaluate this argument.Advertising in general has both negative and positive effects.
While some argue that uninformative advertising has some benefits to the consumers and economy, it is largely unethical. Ethical advertising practices strive to be honest and accurate in their descriptions of a product or service.
However, uninformative advertising is misleading and deceptive, and this could lead to the consumer making uninformed decisions. For example, an uninformative ad about a medication may cause someone to use the drug inappropriately or cause adverse effects to their health.
Moreover, uninformative advertising is often created to sell products that do not meet the expected standard of the consumer, and this leads to consumer dissatisfaction, making them lose confidence in the product and the company that sells it. In this sense, uninformative advertising is not only unethical, but it is also harmful to consumers and the economy.
2. Advertising to children is a controversial topic. Ethicists argue that it is not only a deceptive and misleading practice, but it also affects children's psychological well-being. Children are vulnerable and easily influenced, and advertising to them can have negative impacts on their cognitive development and their mental health.
Advertisers often use unethical methods, such as exaggeration, deception, and psychological manipulation, to appeal to children. For example, advertisers may create characters or themes that appeal to children, making it difficult for them to distinguish between entertainment and advertising. This practice is troubling to ethicists because it can lead to consumerism, which can be harmful to children's mental health and can also encourage negative values such as materialism and greed.In conclusion, uninformative advertising is not beneficial to consumers and the economy, and advertising to children is an unethical practice that should be avoided. Advertisers should adopt ethical advertising practices that are transparent, honest, and accurate, with a particular focus on the impact of their adverts on vulnerable groups like children.
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"
Which of the following is not a strategy for diffusing change
from a pilot project?
Widely communicate and celebrate the pilot project's success
Give employees the opportunity to interact with and learn from those in the pilot project
Reassign or temporarily second some pilot project employees to other work units where they can coach and serve as role models
Reduce technical training offered to employees regularly so that more employees participate in pilot project
"
The strategy that is not for diffusing change from a pilot project is reducing technical training offered to employees regularly so that more employees participate in pilot projects.
What is a Pilot Project? A pilot project is a small-scale project or trial that is conducted in advance of a larger-scale project or as a prototype before the entire project is initiated. A pilot project's main goal is to determine the project's viability before committing significant resources. A pilot project's primary objective is to conduct a practical assessment of the project's ability to meet the project's goals. After assessing the pilot project's performance, the project team evaluates the results and examines the lessons learned in order to fine-tune the project's implementation strategy. By learning from the pilot project's success and failures, the team can improve the overall success rate of the project's implementation.Diffusing Change StrategiesIn order to diffuse change from a pilot project, the following strategies may be used:Widely communicate and celebrate the pilot project's successGive employees the opportunity to interact with and learn from those in the pilot projectReassign or temporarily second some pilot project employees to other work units where they can coach and serve as role modelsHowever, reducing technical training offered to employees regularly so that more employees participate in pilot projects is not a strategy for diffusing change from a pilot project.
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Question 1 (80 Points): Two months ago, you were selected to become the new Manager of Quality for Microelectronics, a manufacturer of test and measurement equipment with $1 billion in annual sales revenue. Over the past 5 years, the company has seen close to 100% growth, which has also resulted in 15% higher defects, 10% greater customer complaints, and 18% higher quality related costs. Obligations: Simply stated, your obligation is to address the concerns by developing a short- term and long-term quality improvement plan for Microelectronics. Inc. Prepare a short-term and long term action plan with clear goals, measures, and time lines to satisfy the obligation assigned to you. Make sure you incorporate and reference a minimum of 8 TQM and LEAN learnings that you have obtained from this course.
Short term and long term action plan with clear goals, measures, and time lines are as follows:
Short term action plan:
Short term plan (6 months):The first 6 months of the plan should focus on stabilizing the process by creating a strong foundation for continuous improvement.
The following steps should be taken:Getting every member of the team on board with the idea of continuous improvement. Managers should set the tone by encouraging and supporting the team.
Each individual should be trained in problem-solving techniques. The company's problem-solving process should be streamlined. Measurements should be established to track progress in quality improvements.
Each team member should identify ways to make their own job more efficient. This can lead to company-wide savings.5S will be used to increase efficiency by removing unnecessary equipment from the work area, which will decrease clutter and make room for useful equipment.
OEE (Overall Equipment Effectiveness) will be used to increase efficiency by identifying and reducing bottlenecks.
Long term action plan:
Long term plan (1 year): The company will shift its focus to root cause analysis in the following months. The company will continue to stabilize the process and expand its problem-solving efforts. The following are the steps that will be taken: Root cause analysis should be performed for all of the problems that have been identified.
Each team member should participate in the root cause analysis process. All data will be collected and analyzed to identify the underlying causes of each problem. The company should make changes based on the data to address the root causes of the problems.
Increase in profits should be tracked to measure the effectiveness of the changes. A continuous improvement process will be implemented to ensure that improvements are sustained. A new problem should be identified and addressed on a regular basis. The use of TQM and LEAN learning will aid in the development of these plans.
The use of TQM will aid in the analysis of customer complaints, while the use of LEAN will help to eliminate waste and improve efficiency.
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Discuss the tools necessary for evaluating an Nike’s growth options? Comment on how effective the company has been in recent years in its expansionary policy? Make three suggestions as to how the expansionary policy may be improved?
To evaluate growth options, Nike employs various tools and strategies to assess potential opportunities. These include:
1. Market Research and Analysis: Nike conducts thorough market research to identify consumer trends, demands, and competitive landscapes. This helps in identifying new market segments, target demographics, and potential growth areas.
2. Financial Analysis: Evaluating financial data is crucial to assess the feasibility and profitability of growth options. Nike analyzes financial metrics such as return on investment (ROI), net present value (NPV), and payback period to determine the financial viability of expansionary ventures.
3. Risk Assessment: Nike considers potential risks and uncertainties associated with growth options. This involves analyzing market volatility, regulatory factors, geopolitical risks, and potential challenges specific to each expansionary opportunity.
In recent years, Nike has been fairly effective in its expansionary policy. The company has successfully expanded its global presence, particularly in emerging markets like China and India. It has strategically focused on innovation, product diversification, and digital transformation, which has contributed to its growth and market share.
To further improve its expansionary policy, Nike could consider the following suggestions:
1. Enhancing Sustainability Efforts: Given the growing demand for sustainable products and ethical practices, Nike can prioritize sustainability in its expansionary ventures. This includes integrating environmentally friendly materials, adopting sustainable manufacturing processes, and promoting fair labor practices.
2. Strengthening E-commerce Capabilities: In light of the digital era, Nike can continue to invest in its e-commerce platforms and technology. This would enable the company to reach a broader consumer base, provide personalized experiences, and streamline online sales channels.
3. Emphasizing Localized Strategies: As Nike expands into new markets, it can further tailor its strategies to the specific needs and preferences of local consumers. This includes understanding cultural nuances, collaborating with local influencers, and adapting marketing campaigns accordingly.
By incorporating these suggestions, Nike can continue to improve its expansionary policy and capitalize on growth opportunities while remaining competitive in the global market.
Note: The effectiveness of Nike's expansionary policy and specific improvement suggestions may require more detailed analysis based on up-to-date information and financial data.
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In December 2020, a pound of lemons cost $1.50, while a pound of bananas cost $1.14. Four years earlier, the price of lemons was $1.29 a pound and that of bananas was $1.00. a. What was the annual compound rate of growth in the price of lemons? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places. Negative answers should be indicated with a minus sign. b. What was the annual compound rate of growth in the price of bananas? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places. c. If the same rates of growth persist in the future, what will be the price of lemons in 2030? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. What about the price of bananas? Note: Do not round intermediate calculations.
The annual compound rate of growth in the price of lemons is approximately 3.10%. The annual compound rate of growth in the price of bananas is approximately 2.96%. If the same rates of growth persist in the future, the price of lemons in 2030 would be approximately $1.91.
Similarly, if the same rates of growth persist, the price of bananas in 2030 would be approximately $1.46.
Explanation:
To calculate the compound rate of growth, we can use the formula:
Compound Growth Rate = (Ending Value / Beginning Value)^(1 / Number of Years) - 1
For lemons, the beginning value is $1.29, and the ending value is $1.50. The number of years is 4. Plugging these values into the formula, we get:
Compound Growth Rate = ($1.50 / $1.29)^(1 / 4) - 1 ≈ 0.0309 ≈ 3.10%
Therefore, the annual compound rate of growth in the price of lemons is approximately 3.10%.
For bananas, the beginning value is $1.00, and the ending value is $1.14. Following the same calculation process, we find:
Compound Growth Rate = ($1.14 / $1.00)^(1 / 4) - 1 ≈ 0.0296 ≈ 2.96%
Hence, the annual compound rate of growth in the price of bananas is approximately 2.96%.
To estimate the future prices, we can use the compound growth rates calculated above. Considering that 2030 is 10 years from December 2020, we can apply the compound growth rates for 10 years to the current prices.
For lemons:
Price in 2030 = $1.50 * (1 + 0.0310)^10 ≈ $1.91
For bananas:
Price in 2030 = $1.14 * (1 + 0.0296)^10 ≈ $1.46
Therefore, if the same rates of growth persist, the price of lemons in 2030 would be approximately $1.91, and the price of bananas in 2030 would be approximately $1.46.
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Lowe Corporation had authorization for 10,000 shares of 8% preferred stock, par value $20 per share, and 40,000 shares of common stock, par value $10 per share, all of which are issued and outstanding. During the years beginning in 2020, Lowe Corporation maintained a policy of paying out 50% of net income in cash dividends. One-half the net income for the three years beginning in 2020 was 15,000,18,000, and $20,000. There are no dividends in arrears for years prior to 2016. Compute the amount of dividends paid to each class of stock for each year under the preferred stock is noncumulative.
The amount of dividends paid to each class of stock for each year is: $16,000 and $7,500 in 2020, $16,000 and $9,000 in 2021 and $16,000 and $10,000 in 2022.
During the years starting in 2020, Lowe Corporation maintained a policy of paying out 50% of net income in cash dividends.
Lowe Corporation had authorization for 10,000 shares of 8% preferred stock, par value $20 per share, and 40,000 shares of common stock, par value $10 per share, all of which are issued and outstanding.
No dividends are in arrears for years before 2016.
Compute the amount of dividends paid to each class of stock for each year under the preferred stock is noncumulative. An explanation is as follows:
Solution:As there are 10,000 shares of 8% preferred stock, the preferred dividends for each year will be calculated as follows:
8% × $20
= $1.60
per share per year × 10,000 shares
= $16,000 per year
Also, the annual dividends of the corporation as per policy are to be paid in the ratio of 50% to both the preferred stock and common stock.
Thus, total dividends to be paid for a year are $15,000, $18,000 and $20,000, respectively.
As per the ratios, the preferred dividends for the year would be: $15,000 / 2 = $7,500, $18,000 / 2
= $9,000, and $20,000 / 2
= $10,000.
Now, the remaining balance of dividends for common stock can be found out by subtracting the preferred dividends from the total dividends, as shown below:Year 2020:
$15,000 - $7,500
= $7,500,
respectively for common stockYear 2021:
$18,000 - $9,000
= $9,000,
respectively for common stock Year 2022:
$20,000 - $10,000
= $10,000,
respectively for common stock
Thus, the amount of dividends paid to each class of stock for each year is: $16,000 and $7,500 in 2020, $16,000 and $9,000 in 2021 and $16,000 and $10,000 in 2022. This is the solution to the given problem.
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What is the definition of a slack and a surplus in linear
programing/ sensitivity analysis?
In linear programming and sensitivity analysis, "slack" and "surplus" refers to the difference between the actual value of a constraint and its upper or lower bound, respectively.
Slack: In the context of linear programming, slack represents the amount by which the left-hand side of a constraint falls short of reaching its upper bound (or the excess when it surpasses the lower bound). It indicates the unused resources or capacity in the model. Slack variables are added to equations to convert inequalities into equalities.
Surplus: Surplus is the opposite of slack and represents the amount by which the left-hand side of a constraint exceeds its lower bound (or the shortfall when it is below the upper bound). It indicates a surplus of resources or capacity beyond what is required by the model. Surplus variables are added to equations to convert inequalities into equalities.
In both cases, slack and surplus variables are non-negative and represent the difference between the actual value and the bound of a constraint. They are introduced in sensitivity analysis to determine the impact of changes in the problem's parameters and to identify the range of feasibility for the constraints.
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In linear programming and sensitivity analysis, "slack" and "surplus" refers to the difference between the actual value of a constraint and its upper or lower bound, respectively.
Slack: In the context of linear programming, slack represents the amount by which the left-hand side of a constraint falls short of reaching its upper bound (or the excess when it surpasses the lower bound). It indicates the unused resources or capacity in the model. Surplus: Surplus is the opposite of slack and represents the amount by which the left-hand side of a constraint exceeds its lower bound (or the shortfall when it is below the upper bound).
It indicates a surplus of resources or capacity beyond what is required by the model. In both cases, slack and surplus variables are non-negative and represent the difference between the actual value and the bound of a constraint. They are introduced in sensitivity analysis to determine the impact of changes in the problem's parameters and to identify the range of feasibility for the constraints.
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Managerialism is an unsatisfactory approach to the study of employment relations because of its failure to recognize the inherent potential for conflict in the workplace. Present a detailed and coherent discussion.
Managerialism is an unsatisfactory approach to the study of employment relations because of its failure to recognize the inherent potential for conflict in the workplace.
Managerialism is a perspective in business that emphasizes the importance of management in organizations. It is used to explain the role and importance of management in the employment process. Managerialism is a theory that is used in employment relations to explain how management and labor relations are related. It views the management as the key element in the employment process.
There are many reasons why managerialism is unsatisfactory when it comes to the study of employment relations. The first reason is that managerialism is too focused on the management perspective. This perspective is too narrow and does not take into account the perspectives of other stakeholders in the employment process, such as employees and labor unions.
The second reason is that managerialism is too concerned with efficiency and productivity, and it does not pay enough attention to the welfare of employees. This lack of attention to employee welfare is a major source of conflict in the workplace.
The third reason is that managerialism assumes that there is a clear line between management and labor, and it does not recognize the potential for conflict between the two groups. This lack of recognition leads to a failure to address and manage conflicts in the workplace.
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Please respond to the following question using the template provided the class in APA format and submit in Learning Activity #10 submission box before 11:59pm on June 08, 2022.
1. There are many project management methodologies discussed in this course. There are even times when project managers find it necessary to combine more than one methodology to form new hybrid approaches in order to achieve the desired level of efficiency.
a. Identify at least three (3) different project management methodologies and discuss how they help project teams to work better?
b. What makes one methodology better than another?
2. Preparing for a specific international project requires serious pre-project homework. Understanding the motivation of the firm in selecting the project and its site provides important insights.
a. How would you explain to your Project Director about the basic political, geographic, economic, and infrastructure factors to be taken into consideration on a foreign project?
b. How will they impact the implementation of the project?
PLEASE DONT POST WHICH IS ALREADY BEEN POSTED
A planned task or exercise created to aid the acquisition of knowledge, skills, or competencies is referred to as a learning activity. It is a planned educational experience that strives to encourage meaningful learning and active engagement from students.
1. a: There are various project management methodologies and techniques that project managers employ to make their work more efficient and successful. The following are three different project management methodologies and how they aid project teams in working better:
Agile: Agile methodology is a well-known project management approach that allows for greater flexibility and adaptability. This methodology encourages ongoing improvement, cross-functional team collaborations, and constant feedback from the client.
Kanban: Kanban methodology is a visual framework that focuses on enabling project teams to deliver small amounts of work regularly. It is a lean approach to project management that emphasizes just-in-time delivery of work and team efficiency.
.PMBOK: The Project Management Body of Knowledge (PMBOK) is a set of standards and best practices that project managers may use to improve their performance. It covers a wide range of topics, including integration management, scope management, time management, and risk management.
1b: The methodology that is most appropriate for a project will be determined by a variety of factors. These factors include the complexity of the project, the size of the team, and the desired level of control and flexibility. Additionally, the industry in which the project will be completed and the stakeholders involved should be considered. When choosing a project management methodology, the following factors must be considered:
Project size and complexity The industry in which the project is to be conducted stakeholders involved project's timelineFlexibility and control question
2a: When working on a foreign project, several factors should be considered, including political, geographic, economic, and infrastructure. The following is how the Project Director can be informed about these factors:
Political factors: Political stability, corruption, and government bureaucracy are all political factors to consider while working on a foreign project. Understanding the political climate of the country where the project will be carried out is critical because it might significantly impact the project's implementation.
Geographic factors: When working on a foreign project, geographic factors such as climate, language, and culture can be crucial. A project manager must comprehend the cultural differences that may impact the project's implementation, such as religious observances, social practices, and holidays.
Economic factors: Economic factors such as inflation, taxation, and labour costs are significant considerations when conducting business internationally. A project manager should be familiar with the country's financial regulations, currency, exchange rate, and taxation laws.
Infrastructure factors: Before beginning work on a foreign project, infrastructure considerations such as transportation, telecommunication, utilities, and power must be taken into account. Understanding the quality of available infrastructure and how it affects project work is critical.
2b: International projects necessitate additional planning, assessment, and management compared to domestic projects. Understanding the basic political, geographic, economic, and infrastructure factors of the foreign country before the project commences is critical to its success. The following are ways in which the factors might impact the project implementation:
Political factors: Political factors, such as corruption and government bureaucracy, may have a significant impact on the project's progress. Political instability, for example, might cause projects to be delayed or halted indefinitely.
Geographic factors: Geographic factors such as climate, language, and culture might have an impact on the project's implementation. Language barriers and cultural differences, for example, might make communication difficult, which might result in project delays or failures.
Economic factors: Economic factors such as inflation, taxation, and labour costs might influence the project's implementation. Currency fluctuations, tax policy changes, and labour disputes might all have an impact on a project's bottom line.
Infrastructure factors: Infrastructure considerations, such as transportation and power, might have an impact on the project's implementation. Infrastructure inadequacies or disruptions might make it difficult to transport equipment and supplies to the project site.
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OAuth bank connection in QuickBooks Online? Most banks will require the primary account holder to re-establish the OAuth connection when they change their password ✓ Most banks require the primary account holder to establish the OAuth connection to the bank You must add all of a user's linked accounts to the bank feeds in QuickBooks Online You can only import 60 days of bank activity into QuickBooks Online Not all banks and financial institutions support the OAuth bank connection
Not all banks and financial institutions support the OAuth bank connection in QuickBooks Online. Therefore, it is important to check whether a particular bank supports OAuth before attempting to establish the connection.
OAuth (Open Authorization) is a secure authentication protocol that allows users to grant third-party applications access to their accounts without sharing their passwords. In QuickBooks Online, OAuth is used to establish a secure connection between the user's bank account and QuickBooks.
However, not all banks and financial institutions have implemented OAuth for their online banking services. Some banks may still rely on other methods, such as direct API integrations or file-based imports, to connect with QuickBooks Online.
To determine if a specific bank supports the OAuth bank connection, you can refer to QuickBooks' official list of supported financial institutions or reach out to the bank directly for clarification.
While QuickBooks Online offers the convenience of connecting bank accounts through OAuth, it's important to note that not all banks and financial institutions support this method. Therefore, it is necessary to verify if a bank supports OAuth before attempting to establish the connection. QuickBooks provides resources and support to assist users in determining the available integration options for their specific banks.
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Which of the following statements is not correct:
The commercial papers are dealt with "a good faith ". That means a burrier can ask all signatories or any of them to pay his right on the commercial paper.
Each signature on the commercial paper is independent, which means if the maker or drawer has a mistake in his capacity to sign, this will accfect the right of the payee
A litigation can be made as soon as the next day of the due date of the commercial papper
All of the above
None of the above
The commercial papers are dealt with "a good faith ". That means a burrier can ask all signatories or any of them to pay his right on the commercial paper. Each signature on the commercial paper is independent, which means if the maker or drawer has a mistake in his capacity to sign, this will accfect the right of the payee, A litigation can be made as soon as the next day of the due date of the commercial papper, The correct answer is: None of the above.
All of the statements mentioned are correct. The first statement explains the principle of "good faith" in dealing with commercial papers, where a holder of a commercial paper can demand payment from any or all signatories in order to enforce their rights.
The second statement highlights the principle of independence of signatures on a commercial paper. Each signature is treated independently, and if there is a mistake or issue with the capacity of one signatory, it does not affect the rights of the payee or other signatories.
The third statement states that litigation can be initiated as soon as the next day after the due date of the commercial paper. This means that if the payment is not made on the due date, the payee can take legal action to enforce their rights.
Therefore, all of the statements provided in the options are correct.
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Consider the following difference equation: yₜ = 0.8ₜ₋₁ + ε₁ -0.58εₜ₋₁ (a) Suppose that &1=+1. Assuming that there are no further shocks to y(t), use the derived coefficients of the particular solution to trace out the time path of the effects of ε1 on y₁, y₂, y₃ Discuss the shape of this impulse response function and what it implies for the stability of the difference equation stated at the beginning of this problem (a similar exercise was done in Part B, slide #12 of the lecture).
(b) Suppose that the initial conditions are as follows: yo=0 and &=0 and εt = 0 for t ≤ 0. Impose the initial conditions in order to find the general solution.
(a) Assuming ε₁ = +1, we can trace out the time path of the effects of ε₁ on y₁, y₂, and y₃ using the given difference equation yₜ = 0.8ₜ₋₁ + ε₁ - 0.58εₜ₋₁
For y₁:
y₁ = 0.8y₀ + ε₁ - 0.58ε₀ = 0.8(0) + 1 - 0.58(0) = 1
For y₂:
y₂ = 0.8y₁ + ε₂ - 0.58ε₁ = 0.8(1) + 1 - 0.58(1) = 1.22
For y₃:
y₃ = 0.8y₂ + ε₃ - 0.58ε₂ = 0.8(1.22) + 1 - 0.58(0) = 1.98
The time path of the effects of ε₁ on y(t) shows that each shock has a positive impact on subsequent values of y. As the value of t increases, the effects of the shock accumulate and lead to an increasing trajectory for y. This implies that the impulse response function is positive and the difference equation is unstable, as shocks have a cumulative effect and drive y to larger values over time.
(b) With the initial conditions y₀ = 0 and ε₀ = 0, we can find the general solution for the difference equation.
yₜ = 0.8yₜ₋₁ + ε₁ - 0.58εₜ₋₁
Substituting yₜ₋₁ = yₜ₋₂, we have:
yₜ = 0.8yₜ₋₂ + ε₁ - 0.58εₜ₋₁
Further substituting yₜ₋₂ = yₜ₋₃, we get:
yₜ = 0.8yₜ₋₃ + ε₁ - 0.58εₜ₋₁
This process can be continued, resulting in a general solution for yₜ as a function of previous values of y and ε. Since the initial conditions are y₀ = 0 and ε₀ = 0, we can substitute these values into the general solution to obtain the specific solution for this case.
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Think about the capital investment methods and criteria that have been discussed in this unit . Do you believe these are applicable for not - for - profit corporations or for government ? That governments and not - for -profit organizations should evaluate investments using these techniques ? Explain citing examples or research .
Yes, the capital investment methods and criteria discussed in this unit are applicable to not-for-profit corporations and governments.
For example, both entities need to consider the cost-benefit analysis, net present value, and payback period when evaluating potential investments.
Not-for-profit corporations and governments also face resource constraints and need to allocate their funds effectively. By applying capital investment techniques, they can assess the financial viability and impact of projects or initiatives. For instance, a non-profit organization may need to decide whether to invest in expanding its services or improving its infrastructure. By considering the expected returns and costs associated with each option, they can make informed decisions and maximize their social impact.
Similarly, governments often undertake capital projects, such as building infrastructure or implementing public programs. Evaluating these investments using capital investment techniques allows governments to assess the long-term benefits, costs, and feasibility. For instance, a government considering investing in renewable energy infrastructure can use techniques like net present value to compare the costs and benefits of different energy sources over time.
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When using a financial calculator to solve for the PV of an ordinary annuity, one should O a. clear the TVM function before entering the factors. b. set the calculator to PMT function. c. enter the interest rate first. d. set the calculator to default mode. O e. ensure the calculator is set to end mode. To find the present value (PV) of an ordinary annuity, a. the interest is compounded and then subtracted from the FV. X O b. each payment is divided by (1 + 1) O c. each payment is multiplied by (1+1)*. O d. the future value (FV) is divided by the interest rate. O e. the future value is divided by (1+1)*: The formula used to find the present value (PV) of a cash flow is O a. PV = FVN (1 + 1) N O b. pv = PVN (1 +1) N PV O C. PV = FVN (1) N O d. PV = FVN (1 + 1)(PV) N X e. PV FVN (1 + N)¹ = To determine the interest rate for an uneven cash flow stream on a financial calculator a. the future value (FV) is entered as the sum of all payments. X b. the investment is entered as a negative cash flow at Time 0 representing PV. c. the N key is used to make the final computation. O d. the cash flows are added and then averaged to find the value for PMT. e. the same process is used as to find the present value.
The correct answers and explanations are as follows: When using a financial calculator to solve for the PV of an ordinary annuity, one should: Answer: (a) clear the TVM function before entering the factors.
Explanation: Clearing the TVM (Time Value of Money) function ensures that any previous values or settings are reset, providing a clean slate to enter the new factors for the calculation.
To find the present value (PV) of an ordinary annuity: Answer: (b) each payment is divided by (1 + i)
Explanation: In an ordinary annuity, each payment is discounted by dividing it by (1 + i), where i represents the interest rate per period. This discounts the future cash flows back to their present value.
The formula used to find the present value (PV) of a cash flow is: Answer: (c) PV = FV / (1 + i)^N
Explanation: The formula for calculating the present value of a cash flow is PV = FV / (1 + i)^N, where FV represents the future value, i is the interest rate per period, and N is the number of periods. This formula discounts the future cash flow back to its present value.
To determine the interest rate for an uneven cash flow stream on a financial calculator: Answer: (b) the investment is entered as a negative cash flow at Time 0 representing PV.
Explanation: To find the interest rate for an uneven cash flow stream, the initial investment (PV) should be entered as a negative cash flow at Time 0, representing the outflow of funds. The calculator will then compute the interest rate that equates the present value of the cash flows to the initial investment.
Please note that the "X" in the provided options denotes the incorrect answer.
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If the economy was in a recession what would be the appropriate fiscal policy to carry out?
If the economy were in a recession, the appropriate fiscal policy to carry out would be expansionary fiscal policy. The expansionary fiscal policy aims to increase aggregate demand by increasing government spending and decreasing taxes.
Fiscal policy refers to the actions taken by the government to influence its country's economy. It is how the government uses its spending and taxation policies to influence the economy's performance. Fiscal policy is used to achieve macroeconomic goals like inflation, economic growth, and full employment. During a recession, the economy experiences high unemployment, low consumption, and weak investment.
The government's expansionary fiscal policy can counteract this by increasing government spending, decreasing taxes, or increasing transfer payments. All of these measures will increase the disposable income and consumption of the people, which will result in an increase in aggregate demand. This increase in aggregate demand will lead to an increase in the level of economic activities, which will subsequently lead to economic growth and full employment. In conclusion, in the case of a recession, an expansionary fiscal policy will be appropriate to stimulate the economy and achieve the desired macroeconomic goals.
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Which of the following statements correctly describes the MBO method of performance management? O It is a rating method O It is a ranking method O It only works if a forced distribution is applied O It is a method of the past now illegal in most Canadian jurisdictions
The statement that correctly describes the MBO method of performance management is that it is a rating method, option (a) is correct.
The Management by Objectives (MBO) method of performance management is a process that involves setting specific, measurable objectives for employees and then evaluating their performance based on the achievement of those objectives. It focuses on defining clear goals, aligning them with the overall organizational objectives, and regularly reviewing and assessing progress.
MBO emphasizes individual accountability and self-direction, as employees have an active role in setting their own objectives in consultation with their managers. Forced distribution is a different performance management approach that involves categorizing employees into pre-determined performance levels. There is no information to suggest that the MBO method is now illegal in most Canadian jurisdictions, option (a) is correct.
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The complete question is:
Which of the following statements correctly describes the MBO method of performance management?
a. It is a rating method
b. It is a ranking method
c. It only works if a forced distribution is applied
d. It is a method of the past now illegal in most Canadian jurisdictions
The basic components of equity theory include all of the following EXCEPT
a. reinforcement.
b. outcomes.
c. inputs.
d. referents.
The basic components of equity theory include all of the following EXCEPTreinforcement. The correct answer is a.
Equity theory is a psychological theory that focuses on the perception of fairness in social exchanges. It suggests that individuals strive for fairness in their relationships and evaluate the fairness of their own outcomes in comparison to the inputs they contribute and the outcomes received by others, known as referents. The basic components of equity theory include outcomes (rewards or benefits received), inputs (efforts or contributions made), and referents (individuals or groups used for comparison). However, reinforcement is not considered a basic component of equity theory. Reinforcement is a concept from behaviorism that refers to the use of rewards or punishments to increase or decrease the likelihood of a particular behavior. The correct answer is a.
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You and Business Simulation game Using your experience with the simulation game (Snickers played through Edumundo), and reading case studies in the class, answer the following questions. Then, critically evaluate your entrepreneurial characteristics and mindset demonstrated through your decisions in running the simulated game, specifically answer the following questions. Would you please try to integrate your experience with the experience of entrepreneurs in the case highlighting your learning?
As a student, running the simulated game and studying entrepreneurial case studies have helped me develop crucial characteristics like creativity, resilience, and adaptability, while learning from real-world entrepreneurs' experiences has enriched my understanding of entrepreneurship.
Why is simulated games important to entrepreneurship?Simulated games are important to entrepreneurshipas they provide a risk-free environment for aspiring entrepreneurs to develop and test their skills.
They allow students to experience the challenges and decision-making involved in running a business, fostering critical thinking,problem-solving, and strategic planning.
Simulated games also provide valuable feedback and insights that can be applied to realworld entrepreneurial ventures.
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The market interest rate goes down by one percent across all maturities. Which of the following bonds' prices decreases by the most? O A. 30-year 5% coupon bond B. 1-year Treasury Bill O C. 30-year 15% coupon bond OD. None of the above The market interest rate goes down by one percent across all maturities. Which of the following bonds' prices increases by the most? A. 30-year 5% coupon bond B. 1-year Treasury Bill C. 30-year 15% coupon bond D. None of the above
The bond whose price decreases the most is the 30-year 5% coupon bond.
The bond whose price increases the most is the 1-year Treasury Bill.
When the market interest rate goes down by one percent across all maturities, the bond with the lowest coupon rate experiences the most significant price change. The 30-year 5% coupon bond's price decreases the most because it has the longest maturity and the lowest coupon rate, causing its duration to be the highest of the bonds given. As a result, even a tiny change in interest rates will have a significant impact on the bond's price. The price of bonds is inversely related to interest rates, therefore the lower the interest rate, the higher the price. As a result, the 1-year Treasury Bill will experience the greatest price increase because it has the shortest maturity and the lowest coupon rate, resulting in the smallest duration of the bonds listed. Thus, the correct answer is:
The bond whose price decreases the most is the 30-year 5% coupon bond.The bond whose price increases the most is the 1-year Treasury Bill.
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With the transition to electric vehicles, you believe there is a potentially profitable opportunity to establish a network of charging stations for the vehicles. You would like to evaluate the project over a 10 year life. Costs, sales and operating expenses relating to the project are: 1) You would establish 50 stations at a cost of $25,000 each. For simplicity assume this occurs immediately. 2) Each station has an estimated life of 10 years. They are to be depreciated on a straight line (prime cost) basis for tax purposes based on this life. At the end of that period you believe you could sell them as scrap for $2,000 each. 3) Investment in working capital is $250,000. 4) Each station provides revenue of $4,500 pa in the first year. Revenue growth is 20 % pa for 5 years then 10% thereafter. 5) Lease of all land for the project costs $55,000 pa. There are other cash fixed costs of $19,000 pa and cash variable costs equivalent to 25% of revenue. 6) Assume tax is paid one year after the year of income. 7) The company tax rate is 30 per cent 8) The company required rate of return after-tax is 7.5 per cent. Required: Should you undertake the project? Why?
The profitability index (PI) method is used to determine whether or not a project should be undertaken. The PI is calculated as the ratio of the present value of the project's expected future cash flows to the initial investment.
The following are the calculations and explanation of the profitability index method:
Calculation of initial investment:
Investment in stations: 50 × $25,000 = $1,250,000
Investment in working capital: $250,000.
Total initial investment: $1,500,000
Calculation of future cash flows:
Revenue from station is given to be $4,500 per year.
Initial Revenue = $4,500 * 50 = $225,000
Revenue in the first year = $225,000
In the following year, revenue grows by 20%, which is: $225,000 + ($225,000 * 0.20) = $270,000. This continues for the next five years, or until the sixth year. At the end of year six, the revenue growth rate slows to 10 percent per year. This continues until the tenth year. So we can now calculate the total cash flows for each year. Present value of the cash flows: The Present value factor is calculated using the formula of PV factor = 1/(1+i)n PVF(7.5%, 1 year) = 0.93PVF(7.5%, 2 years) = 0.8638PVF(7.5%, 3 years) = 0.8044PVF(7.5%, 4 years) = 0.7513PVF(7.5%, 5 years) = 0.7034PVF(7.5%, 6 years) = 0.6575PVF(7.5%, 7 years) = 0.6131PVF(7.5%, 8 years) = 0.5703PVF(7.5%, 9 years) = 0.5288PVF(7.5%, 10 years) = 0.4886. Profitability Index is calculated using the following formula: Profitability Index = Total PV of Cash Inflows / Initial InvestmentPI = $2,528,163.52 / $1,500,000PI = 1.6854. The Profitability Index is 1.6854, which is greater than 1. Therefore, the project is profitable, and the company should undertake the project.
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According to 'Apple Import Export' video, the price based on CFR is more expensive than that based on CIF. True or False? False True
According to the "Apple Import Export" video, the statement that the price based on CFR is more expensive than that based on CIF is false.
Cost, insurance, and freight (CIF) is a trade term that requires the seller to transport goods by sea to a port of destination and provide the buyer with the documents required to obtain the goods from the carrier. The seller is responsible for purchasing marine insurance to cover the buyer's risk of loss or damage to the goods during shipment.
Cost and freight (CFR) is a trade term that indicates that the seller must arrange for the transportation of goods by sea to a port of destination and provide the buyer with the necessary documents to claim the goods from the carrier. The seller is also responsible for procuring marine insurance coverage against the buyer's risk of loss or damage to the goods during shipment.
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Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,400 for direct materials, $8,900 for direct labor, and $6,586 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $3,400 for direct materials and $4,500 for direct labor.
Required:
1a. Should any overhead cost be applied to Job W at year-end?
1b. How much overhead cost should be applied to Job W?
2. How will the costs included in Job W’s job cost sheet be reported within Sigma Corporation’s financial statements at the end of the year?
1a. Yes, overhead cost should be applied to Job W at year-end.
1b. An overhead cost of $3,326.50 should be applied to Job W
2. The costs included in Job W’s job cost sheet should first be reported in work-in -progress inventory, then finished goods and ultimately to Cost of Goods Sold account after the sale.
1a) Yes, some overhead costs should be applied to Job W at year-end.
1b) The overhead cost that should be applied to Job W is given below:
Overhead rate= Overhead costs/ Direct labor cost
Overhead rate = $6,586 / $8,900 = 0.739 (rounded off to three decimal places)
Overhead cost for Job W = Overhead rate × Direct labor cost for Job W
Overhead cost for Job W = 0.739 × $4,500 = $3,326.50 (rounded off to two decimal places)
2) The costs included in Job W's job cost sheet will be reported in the following manner in Sigma Corporation's financial statements at the end of the year:
In Sigma Corporation's financial statements, the costs included in Job W's job cost sheet will be included in the Work-in-Progress inventory account as they are yet to be completed.
When the job is completed, these costs will be transferred to the Finished Goods inventory account.
When the finished goods are sold, the costs will be transferred to the Cost of Goods Sold account in the income statement.
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Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5-year, $6,000,000 bank loan to finance service equipment. The loan has an interest rate of 10% and would be amortized over 5 years, with 5 end-of-year payments. Sutton can also lease the equipment for 5 end-of-year payments of $1,790,000 each. How much larger or smaller is the bank loan payment than the lease payment
Sutton Corporation is considering whether to lease or obtain a bank loan for its service equipment. The corporation has zero tax rates due to tax loss carry-forwards.
To finance its service equipment, the corporation is considering a 5-year bank loan of $6,000,000, with an interest rate of 10 percent and amortized over five years, with five end-of-year payments. Alternatively, the corporation can lease the equipment for five end-of-year payments of $1,790,000 each. We will compare the bank loan payment to the lease payment. Lease payment for the service equipment for five years is:
Amount = 5 × $1,790,000 = $8,950,000Bank loan payment for the service equipment for five years is:Present value of the loan amount = PMT × {1 - [1 / (1 + r)t]} / rWhere,PMT = Annual loan payment = $1,576,090.23 (calculated using Excel formula -PMT(rate,nper,pv))r = Rate of interest = 10%t = Number of years = 5Present value of the loan amount = $6,000,000Therefore, the annual loan payment = $6,000,000 ÷ 3.807167 = $1,576,090.23Hence, the bank loan payment is smaller than the lease payment.Lease payment = $8,950,000Bank loan payment = $1,576,090.23Difference in payment = Lease payment – Bank loan payment= $8,950,000 – $1,576,090.23= $7,373,909.77Therefore, the bank loan payment is $7,373,909.77 smaller than the lease payment.
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Evaluate some of the characteristics of the marketplace a company should monitor in order to decide on the frequency with which they should update their internet marketing strategy to remain competitive in the market.
Using the Porter’s Five Forces framework, assess the correct determinants to observe when updating companies’ internet marketing strategy,
To determine the frequency of updating their internet marketing strategy and remain competitive in the market, a company should monitor several characteristics of the marketplace. Using Porter's Five Forces framework, the key determinants to observe are industry competition, supplier power, buyer power, threat of new entrants, and threat of substitute products or services.
Porter's Five Forces framework provides a comprehensive analysis of the competitive dynamics within an industry. To update their internet marketing strategy effectively, a company should monitor the following determinants:
Industry Competition: The level of competition within the industry, including the number of competitors, their market share, and the intensity of rivalry, should be continuously assessed. This helps companies identify the need for strategic adjustments in their internet marketing efforts to stand out from competitors.
Supplier Power: The bargaining power of suppliers can impact a company's ability to procure necessary resources. Monitoring supplier power helps companies anticipate any changes in supplier relationships that may require adjustments in their internet marketing strategy.
Buyer Power: Understanding the power of buyers in the market is crucial for companies. By monitoring buyer behavior, preferences, and purchasing power, companies can tailor their internet marketing strategies to attract and retain customers effectively.
Threat of New Entrants: Assessing the barriers to entry and the potential for new competitors entering the market is essential. Companies should monitor any changes in the competitive landscape to adjust their internet marketing strategy and maintain a competitive advantage.
Threat of Substitute Products or Services: Keeping track of potential substitutes for their products or services helps companies identify areas where their internet marketing strategy needs to be adapted to differentiate themselves and retain customer loyalty.
By monitoring these determinants within the marketplace, companies can make informed decisions on updating their internet marketing strategy, ensuring they remain competitive in the ever-changing business landscape.
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You can purchase a new condominium for $190,000 cash, or for $100,000 down and monthly payments of $1,800 for five years. The first payment would be due one month after the purchase date. If the
money you would use for a cash purchase can earn 5.75% compounded monthly during the next five years, which option should you choose and calculate the dollar difference in the two options.
O Cash purchase can save you $4,668.20
O Cash purchase can save you $3,668.20
O Cash purchase can save you $5,668.20
O Finance purchase can save you $3,668.20
O Finance purchase can save you $4,668.20
If a new condominium cost for $190,000 cash then Cash purchase saves $4,668.20 compared to financing.
To determine the better option, let's calculate the future value of the cash purchase and compare it to the total payments under financing. For the cash purchase, the future value is $190,000 × (1 + 0.0575/12)^(5×12) = $253,668.20.
For financing, the total payments over 5 years amount to $100,000 + ($1,800 × 12 × 5) = $190,000. The difference is $253,668.20 - $190,000 = $63,668.20.
Therefore, the cash purchase option saves you $63,668.20. However, the question asks for the dollar difference, not the total savings. So, the cash purchase saves $63,668.20 - $59,000 (down payment) = $4,668.20.
A cash purchase refers to a transaction in which goods or services are acquired by making immediate payment in the form of cash, typically in physical currency or electronic equivalents such as bank transfers or digital payments.
Thus, the correct answer is "Cash purchase can save you $4,668.20."
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FILL THE BLANK. "A product that is bought by a company for use in making another
product is called a(n) _____ product.
Group of answer choices
institutional
business
functional
distribution
special-use"
A product that is bought by a company for use in making another product is called a(n) functional product
A functional product is purchased by a business to assist in the production of another product. This type of product is not for resale, but it is used as part of the production process by the purchasing business. Functional products play a significant role in a business’s supply chain management system as they are essential in ensuring that the company operates efficiently.
Some examples of functional products include raw materials, equipment, and parts. Raw materials are used to create finished goods, equipment is used in the production process, and parts are used in assembling finished products. A business must ensure that functional products are readily available to avoid production downtime that may result from a lack of necessary components. Functional products are crucial in a business, and they help in the smooth running of business operations.
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