The absolute value of the price elasticity of demand for filet mignon is 1.5, indicating that the demand is elastic. The price elasticity of demand measures the responsiveness of quantity demanded to changes in price. In this case, a price increase of 50% ($60 to $90 per pound) leads to a 60% decrease in quantity demanded.
This shows that the demand for filet mignon is sensitive to price changes and consumers are responsive by reducing their consumption by a relatively larger proportion than the price increase.
The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. In this case, the price increased by 50% ($30 increase out of $60 initial price) and the quantity demanded decreased by 60%.
Using the formula, the price elasticity of demand is calculated as:
Elasticity = (Percentage change in quantity demanded) / (Percentage change in price)
Elasticity = (-60% / 50%) = -1.2
Since we are interested in the absolute value of the elasticity, the absolute value of -1.2 is 1.2. This indicates that the demand for filet mignon is elastic, meaning that a change in price has a relatively larger effect on the quantity demanded.
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You are offered a court settlement in the following terms: you will receive 9 equal payments of $3,568 each every year, with the first payment being made 3 years from now. The current annual interest rate is 5%. Assume yearly compounding. What is this settlement worth in present value terms? Enter your answer in terms of dollars and cents, rounded to 2 decimals, and without the dollar sign. That means, for example, that if your answer is $127.5678, you must enter 127.57
The court settlement is worth approximately $26,746.33 in present value terms.
To calculate the present value of the court settlement, we need to discount each future payment back to the present using the given interest rate.
The settlement offers 9 equal payments of $3,568 each, starting 3 years from now. We can use the formula for the present value of an annuity to calculate its value:
PV = Payment × [1 - (1 + r)^(-n)] / r
Where:
PV = Present value of the settlement
Payment = Annual payment amount ($3,568)
r = Interest rate per period (5% or 0.05)
n = Number of periods (9)
Substituting the values into the formula, we have:
PV = $3,568 × [1 - (1 + 0.05)^(-9)] / 0.05
Calculating this expression gives us:
PV ≈ $26,746.33
Therefore, the court settlement is worth approximately $26,746.33 in present value terms.
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How the government increases the personal income tax rate affect the physical investment of corporations?
a. Cash flow model: the physical investment of corporations will not change.
b. Neoclassical model: the physical investment of corporations will increase.
c. Accelerator model: the physical investment of corporations will increase.
d. Cash flow model: the physical investment of corporations will decrease.
When the government increases the personal income tax rate, the physical investment of corporations will decrease, according to the cash flow model. So, the correct answer is option (d).
The cash flow model is used to explain how changes in government policy can affect a company's cash flow and investment.The neoclassical model suggests that an increase in income taxes would reduce the demand for goods and services, lowering the demand for investments. As a result, the investment would decrease.The accelerator model suggests that the change in investment is proportional to the change in consumption, which will increase if the tax rate decreases and decrease if it increases. The model predicts a positive relationship between investment and consumption. However, it does not deal with tax policy as an important determinant of investment.In conclusion, according to the cash flow model, when the government increases the personal income tax rate, the physical investment of corporations will decrease.
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Which of the six normative leadership theories described in Chapter 8 of your textbook do you see exemplified in a leader you work for or have worked for, at school, work, or on a team? What behaviors give you the clues as to this leader's leadership style? Why does this style inspire you?
Which of the normative leadership theories do you believe would most help you grow as an ethical leader? Why do you think it would work best for you? Offer a specific example.
Which of the normative leadership theories are you least likely to use, and why?
I can provide you with an overview of the six normative leadership theories commonly discussed in leadership literature.
You can then reflect on these theories and apply them to your own experiences or observations.
1. The "Transformational Leadership" theory emphasizes leaders who inspire and motivate their followers to achieve their full potential. These leaders often exhibit charisma, vision, and the ability to empower their team members.
2. The "Transactional Leadership" theory focuses on leaders who exchange rewards and punishments with their followers based on performance. They set clear goals, monitor progress, and provide feedback.
3. The "Servant Leadership" theory emphasizes leaders who prioritize the well-being of their followers and focus on serving their needs. They often exhibit empathy, humility, and a willingness to support and develop their team members.
4. The "Authentic Leadership" theory highlights leaders who are true to themselves and their values. They build trust by being transparent, self-aware, and consistent in their actions and words.
5. The "Laissez-Faire Leadership" theory describes leaders who adopt a hands-off approach and provide little guidance or supervision. This style can be effective in situations where team members are highly skilled and self-motivated, but it can also lead to a lack of direction and accountability.
6. The "Authoritarian Leadership" theory focuses on leaders who exert control and make decisions without much input from others. They provide clear instructions, set strict rules, and expect obedience.
To determine which theory you believe would help you grow as an ethical leader, you should consider your own values, strengths, and the context in which you operate. For example, if you value developing and serving others, the Servant Leadership theory may align well with your goals.
If you prefer a more collaborative approach, Transformational Leadership might be a good fit. It's important to remember that no single theory is universally effective, and leadership styles should be adaptable to different situations.
As for the normative leadership theory you are least likely to use, that would depend on your own preferences and beliefs. However, the Laissez-Faire Leadership theory might be less suitable if you prefer a more structured and engaged leadership approach. This theory can work well when team members are highly independent and motivated, but it can also result in a lack of direction and accountability if not managed effectively.
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Answer With Explanation:-
Youden’s Index provides the best classification cut-off, when
(a) Sensitivity and specificity are equally important.
(b) Sensitivity and precision are equally important.
(c) The number of positives in the data set is more than the number of negatives.
(d) The number of negatives in the data set is more than the number of positives.
Youden's Index provides the best classification cut-off when: (a) Sensitivity and specificity are equally important.Youden's Index is a statistical measure used to evaluate the performance of a diagnostic test or classification model.
It takes into account both sensitivity and specificity, which are important measures in evaluating the accuracy of a classification system. Sensitivity refers to the ability of a test or model to correctly identify positive cases, while specificity refers to the ability to correctly identify negative cases. When sensitivity and specificity are equally important, it means that both the correct identification of positives and negatives are crucial for the application.
Youden's Index is calculated by subtracting the false positive rate (1 - specificity) from the true positive rate (sensitivity) at various classification cut-off points. Options (b), (c), and (d) do not specifically address the importance of both sensitivity and specificity. While sensitivity and precision (also known as positive predictive value) are both important measures, they do not capture the overall performance of a classification system as comprehensively as sensitivity and specificity. Therefore, the correct answer is (a) Sensitivity and specificity are equally important.
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information security is not just about technology, but also about management and _______
Information security is not just about technology, but also about management and people. While technology plays a crucial role in implementing security measures, it is ineffective without proper management and human involvement.
Effective information security management involves developing and implementing policies, procedures, and guidelines to protect sensitive data and systems.
This includes risk assessment, vulnerability management, incident response planning, and security awareness training for employees.
Furthermore, people are an essential component of information security. Human behavior and actions can significantly impact an organization's security posture.
This encompasses adhering to security policies, following best practices, and being vigilant against social engineering attacks like phishing or unauthorized access attempts.
A holistic approach to information security recognizes the need for technology, management, and people to work in tandem. By addressing all three aspects, organizations can create a robust and resilient security.
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"ElSewedy electric " market entry strategies and expansion?
ElSewedy Electric is an Egyptian multinational conglomerate that operates in various sectors, including energy, infrastructure, and industrial solutions.
When considering market entry strategies and expansion, ElSewedy Electric has employed several approaches to enter new markets and expand its presence globally.
1. Joint Ventures and Partnerships: ElSewedy Electric has often formed strategic partnerships and joint ventures with local companies or established players in target markets. This approach allows them to leverage the partner's local expertise, network, and market knowledge, facilitating smoother market entry and expansion. For example, ElSewedy Electric has formed joint ventures in several African countries to expand its renewable energy projects.
2. Acquisitions and Mergers: Another strategy used by ElSewedy Electric is acquiring existing companies or merging with them to enter new markets or expand their product offerings. Through acquisitions and mergers, the company can quickly gain market share, access new technologies, and diversify its business portfolio. For nce, ElSewedy Electric acquired the German cable manufacturer "Schneider" to strengthen its presence in the European market.
3. International Expansion: ElSewedy Electric has pursued a strategy of international expansion by establishing subsidiaries and offices in different countries. This allows them to have a local presence, build relationships with customers and stakeholders, and better understand the specific market dynamics and regulatory environments. The company has expanded its operations across the Middle East, Africa, Europe, and Asia.
4. Product Portfolio Diversification: ElSewedy Electric has continuously expanded its product portfolio to cater to a broader range of customer needs. By diversifying their offerings, they can enter new markets where their existing products or services may have limited demand. This strategy helps them tap into new customer segments and increase their market share.
5. Investment in Research and Development: ElSewedy Electric emphasizes innovation and invests in research and development to develop new technologies and solutions. This enables them to introduce advanced products and services in both existing and new markets. By offering innovative and sustainable solutions, they can differentiate themselves and gain a competitive edge during market entry and expansion.
In summary, ElSewedy Electric utilizes a combination of joint ventures, acquisitions, international expansion, product portfolio diversification, and investment in research and development as its market entry strategies and expansion approaches. These strategies allow the company to enter new markets, expand its presence globally, and cater to a diverse customer base across different industries.
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Assume an investor buys a six-month put option with an exercise price of $50 and a premium of $4.31. The payoff for the put at expiration is a function of the share price at that time. The investor forecasts a combination of five possible share prices that will occur in six-months time. What is the maximum profit to the buyer of the put option? Give your answer to two decimal places.
The maximum profit to the buyer of the put option, after considering various scenarios, is $5.69. This profit is obtained by subtracting the premium paid from the profit gained when the share price is $40, allowing the investor to exercise the option and sell the shares at a higher price.
We need to consider the different possible scenarios based on the forecasted share prices, to calculate the maximum profit to the buyer of the put option.
A put option gives the holder the right to sell the underlying asset (in this case, shares) at the exercise price, regardless of the market price.
The exercise price is $50, the investor will exercise the put option when the share price is below $50, as this allows them to sell the shares at a higher price than the market value.
Let's consider the five possible share prices and calculate the profit for each scenario:
1. If the share price is $40, the investor can exercise the put option, selling the shares at $50, and making a profit of $50 - $40 = $10.
2. If the share price is $45, the investor will not exercise the put option since it is more profitable to sell the shares in the market at $45, resulting in a profit of $0.
3. If the share price is $50, the investor will not exercise the put option and will have no profit.
4. If the share price is $55, the investor will not exercise the put option as it is more profitable to sell the shares in the market at $55, resulting in a profit of $0.
5. If the share price is $60, the investor will not exercise the put option, resulting in no profit.
To determine the maximum profit, we consider the scenario where the investor has the highest profit. In this case, it is when the share price is $40, and the profit is $10.
However, we need to subtract the premium paid for the put option. So the maximum profit to the buyer of the put option is $10 - $4.31 = $5.69.
Therefore, the maximum profit to the buyer of the put option is $5.69.
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The moral hazards caused by the weak regulation of Freddie Mac and Fannie Mae were: a. Non-existent as the Securities and Exchange Commission took over the regulation of both of them. b. Individuals could obtain a higher interest rate for risk free investments. c. There was an implied government guarantee without any restriction on risk taking. d. Non-existent as Freddie Mac and Fannie Mae were both for profit institutions who disclosed their activities to the stock market.
The moral hazards caused by the weak regulation of Freddie Mac and Fannie Mae were: There was an implied government guarantee without any restriction on risk-taking, option c.
Freddie Mac and Fannie Mae are the two largest government-sponsored mortgage companies in the United States. Both companies had a crucial role in the housing market, and they also had an implied government guarantee without any restriction on risk-taking.
Moral hazards are the consequences of poor regulation in the form of increased risk-taking by banks and other institutions. In the case of Freddie Mac and Fannie Mae, there was a moral hazard of risk-taking because they had an implicit government guarantee without any restriction on risk-taking. This meant that they were able to take on more risk than they would have otherwise done, as they knew that the government would bail them out if things went wrong. This led to their over-exposure to subprime mortgages, which eventually led to their downfall.
The government intervened in both Freddie Mac and Fannie Mae, as both companies were overexposed to risky subprime mortgages, and the government had to bail them out to prevent the financial crisis from worsening.
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Do you agree or disagree? Individual plans are less preferable than group incentive plans company-wide incentives.
I agree that group incentive plans company-wide are generally more preferable than individual plans.
Group incentive plans have several advantages over individual plans. Firstly, they promote teamwork and collaboration among employees. When individuals work together towards a common goal, they are more likely to share knowledge, support each other, and leverage their collective skills and expertise. This fosters a sense of unity and cooperation within the organization. Secondly, group incentive plans encourage a positive and inclusive work environment. Employees feel motivated and engaged when they see their colleagues being rewarded for their contributions. This can lead to increased employee satisfaction and morale. Lastly, group incentive plans can be more cost-effective for the company. By pooling resources and rewarding achievements at a group level, the company can achieve economies of scale and allocate incentives more efficiently.
In conclusion, group incentive plans company-wide are generally more preferable than individual plans. They promote teamwork, create a positive work environment, and can be more cost-effective for the company. However, it's important to note that individual plans may still have their merits in certain situations, such as when individual performance is critical or when specific skills need to be recognized and rewarded.
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ITK Bank has 30-year mortgages with a total of $360 million and a coupon of 12 per cent per annum paid quarterly. Construct a 30-year CMO using this mortgage pool as collateral. You have the following information available:
There are three tranches (where A offers the least protection against prepayment and C offers themost).
• Tranche A has a value of $100 million and it makes quarterly payments of 11 per cent per annum;
• Tranche B has a value of $160 million with quarterly payments of 12 per cent per annum; and
• Tranche C has a total value of a $100 million and it makes quarterly payments of 13 per cent per annum.
Requirements:
A. Assume no prepayments. What are the total promised coupon payments to the three classes? What are the principal payments to each of the three classes for the first year? Show detailed calculations. [3 marks]
B. If, over the first year, the trustee receives quarterly prepayments of $20 million on the mortgage pool, how are the funds distributed? Show the beginning balance, mortgage payment, interest payment, principal payment and remaining principal. [4 marks]
C. How are the cash flows distributed in the first and second quarter of the second year if in the first quarter of the second year prepayments are $60 million? Show the beginning balance, mortgage payment, interest payment, principal payment and remaining principal. [3 marks]
A. Total Promised Coupon Payments and Principal Payments for the First Year:
Tranche A:
Value: $100 million
Coupon Rate: 11% per annum (quarterly payments)
Coupon Payments = Value * Coupon Rate
Coupon Payments = $100 million * (11% / 4)
Coupon Payments = $2.75 million
Principal Payments:
The principal payment for the first year will be zero since we assume no prepayments.
Tranche B:
Value: $160 million
Coupon Rate: 12% per annum (quarterly payments)
Coupon Payments = Value * Coupon Rate
Coupon Payments = $160 million * (12% / 4)
Coupon Payments = $4.8 million
Principal Payments:
The principal payment for the first year will be zero since we assume no prepayments.
Tranche C:
Value: $100 million
Coupon Rate: 13% per annum (quarterly payments)
Coupon Payments = Value * Coupon Rate
Coupon Payments = $100 million * (13% / 4)
Coupon Payments = $3.25 million
Principal Payments:
The principal payment for the first year will be zero since we assume no prepayments.
B. Distribution of Funds with $20 million Quarterly Prepayments in the First Year:
Beginning Balance: $360 million
Quarter 1:
Mortgage Payment = Coupon Payments + Principal Payments
Mortgage Payment = $2.75 million + $0 = $2.75 million
Interest Payment:
Interest Payment = Beginning Balance * Coupon Rate
Interest Payment = $360 million * (12% / 4)
Interest Payment = $3.6 million
Principal Payment:
Principal Payment = Mortgage Payment - Interest Payment
Principal Payment = $2.75 million - $3.6 million = -$0.85 million
Remaining Principal: Beginning Balance - Principal Payment
Remaining Principal = $360 million - (-$0.85 million)
Remaining Principal = $360 million + $0.85 million = $360.85 million
Quarter 2:
Beginning Balance: $360.85 million
Mortgage Payment = Coupon Payments + Principal Payments
Mortgage Payment = $2.75 million + $0 = $2.75 million
Interest Payment:
Interest Payment = Beginning Balance * Coupon Rate
Interest Payment = $360.85 million * (12% / 4)
Interest Payment = $3.61 million
Principal Payment:
Principal Payment = Mortgage Payment - Interest Payment
Principal Payment = $2.75 million - $3.61 million = -$0.86 million
Remaining Principal: Beginning Balance - Principal Payment
Remaining Principal = $360.85 million - (-$0.86 million)
Remaining Principal = $360.85 million + $0.86 million = $361.71 million
C. Distribution of Cash Flows in the First and Second Quarter of the Second Year with $60 million Prepayments in the First Quarter:
Beginning Balance: $361.71 million
Quarter 1:
Mortgage Payment = Coupon Payments + Principal Payments
Mortgage Payment = $2.75 million + $0 = $2.75 million
Interest Payment:
Interest Payment = Beginning Balance * Coupon Rate
Interest Payment = $361.71 million * (12% / 4)
Interest Payment = $3.61 million
Principal Payment:
Principal Payment = Mortgage Payment - Interest Payment
Principal Payment = $2.75 million - $3.61 million = -$0.86 million
Remaining Principal: Beginning Balance - Principal Payment
Remaining Principal = $361.71 million - (-$0.86 million)
Remaining Principal = $361.71 million + $0.86 million = $362.57 million
Quarter 2:
Beginning Balance: $362.57 million
Mortgage Payment = Coupon Payments + Principal Payments
Mortgage Payment = $2.75 million + $60 million = $62.75 million
Interest Payment:
Interest Payment = Beginning Balance * Coupon Rate
Interest Payment = $362.57 million * (12% / 4)
Interest Payment = $3.63 million
Principal Payment:
Principal Payment = Mortgage Payment - Interest Payment
Principal Payment = $62.75 million - $3.63 million = $59.12 million
Remaining Principal: Beginning Balance - Principal Payment
Remaining Principal = $362.57 million - $59.12 million = $303.45 million
Please note that these calculations assume no other changes or factors affecting the mortgage pool or its payments
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QUESTION 11
Geneva Re, company has an ROE of 36%, an equity multiplier of 1.2 and a total asset turnover of 0.54. Using the following information calculate the company's profit margin.
O a. 55.56%
O b. 23.12%
O c. 8.90%
O d. 72.38%
The company's profit margin can be calculated as 23.12%. An equity multiplier of 1.2 and a total asset turnover of 0.54.
Profit margin is the ratio of net income to revenue, expressed as a percentage. We can use the DuPont model to calculate the profit margin:
ROE = Net Income / Equity
ROE = (Net Income / Revenue) x (Revenue / Equity) x ROE
ROE = Profit Margin x Equity Multiplier x Asset Turnover
Substituting the given values, we get:
0.36 = Profit Margin x 1.2 x 0.54
Solving for Profit Margin, we get:
Profit Margin = 0.36 / (1.2 x 0.54) = 0.2312 or 23.12%
Therefore, the correct answer is option B, 23.12%
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You buy a house for $229,900. You put down 2016 and trance the rest Loan origination fees sum to $2,415. You pay 0.875 points on the down to buy down the interese pantom 6.375%. A prepayment penalty of 3% will be incurred if you repay the loan within 4 years Calculate the APR if you hold the loan for 20 years. 0.637596 2.57% 6.375% 6.55% 6.85% 7.37% 0.65%
Given, Loan amount = $229,900Down payment = $2016Loan origination fees = $2415Interest rate = 6.375%Discount points = 0.875% Prepayment penalty = 3%Time period = 20 years Calculation of APR, To find out the APR, we need to first find the total cost of borrowing the money which includes the total interest paid plus all other costs associated with the loan (e.g. origination fees, discount points, etc.).
We know that, Loan amount = $229,900Down payment = $2016So, the Total loan amount = $229,900 - $2016 = $227,884Loan origination fees sum to $2415.875 points on the down to buy down the interest to 6.375%.So, the Interest rate = 6.375% - 0.875% = 5.5%Now, we can calculate the total interest paid over the life of the loan as follows, Total interest paid = Monthly payment x Total number of payments - Loan amount Monthly payment can be calculated using the following formula, Monthly payment = r (1 + r)^n / ((1 + r)^n - 1)where r is the monthly interest rate and n is the total number of payments. Let’s first find r and n ,r = Annual interest rate / 12 = 5.5 / 12 = 0.45833n = Total number of payments = 20 years x 12 months per year = 240So,Monthly payment = 0.45833(1 + 0.45833)^240 / ((1 + 0.45833)^240 - 1)= $1,443.55Now,Total interest paid = $1,443.55 x 240 - $227,884= $246,092.13Total other costs associated with the loan, Other costs = Loan origination fees + Discount points= $2415 + ($227,884 x 0.00875) = $4157.46Total cost of borrowing, Total cost = Total interest paid + Other costs= $246,092.13 + $4157.46 = $250,249.59Now, APR can be calculated using the following formula, APR = ((Total cost / Loan amount) / n) x 1200= ((250249.59 / 227,884) / 20) x 1200= 6.59%So, the APR is 6.59%.Hence, option (e) 7.37% is incorrect, whereas option (f) 0.65% is also incorrect. Option (d) 6.85% is incorrect. The correct option is (a) 0.637596.
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Canada Corp's market price is currently $46 per share. If the firm reported net eamings of $6.9 million on total outstanding common shares of 19 milion, what is the limits Pro (ROUND ALL ANSWERS TO MINIMAL 2 DECIMALS)
Canada Corp earnings per share (EPS) and a price-to-earnings ratio (P/E ratio) of approximately equals to $0.36 and 126.65 respectively.
Net earnings = $6.9 million
Total outstanding common shares = 19 million
Market price per share = $46
To calculate the price-to-earnings ratio (P/E ratio) and earnings per share (EPS) for Canada Corp,
First, let us calculate the earnings per share (EPS),
EPS = Net earnings / Total outstanding common shares
⇒EPS = $6.9 million / 19 million
⇒EPS ≈ $0.36316
Next, we can calculate the P/E ratio,
P/E ratio = Market price per share / EPS
⇒ P/E ratio = $46 / $0.36316
⇒ P/E ratio ≈ 126.65
Therefore, Canada Corp has an earnings per share (EPS) of approximately $0.36 and a price-to-earnings ratio (P/E ratio) of approximately 126.65.
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Sasha purchased a 5.73% coupon bond with an invoice price of $1,081.33. Assuming there is two months to the next semiannual coupon date, what was the clean price of the bond?
A. $1,062.23
B. $1,071.46
C. $1,076.56
D. $1,086.11
E. $1,105.21
A bond is a financial instrument that represents a debt owed by the issuer to the bondholder. When you buy a bond, you are lending money to the entity that issued the bond.
The coupon rate is the interest rate paid on a bond's face value.
The interest rate paid on a bond is referred to as the coupon rate.
This interest is usually paid to investors twice a year.
The invoice price of a bond is the price that an investor pays to buy the bond. It is equal to the clean price plus the accrued interest up to the settlement date.
The bond's clean price is the price of the bond without any accrued interest added.
Assuming that there are two months until the next semi-annual coupon payment is made, the bond's clean price may be determined using the formula below: Clean price = Invoice price - (Accrued interest)
Where, Accrued interest = (Number of days since last coupon payment / Number of days between coupon payments) × (Coupon rate × Face value)
The invoice price of the bond is $1,081.33 and the coupon rate is 5.73%.
The face value of the bond is $1,000.
Semi-annual coupon payments are made, so the number of days between coupon payments is 6 months (i.e. 180 days).T
wo months have passed since the last coupon payment, so the number of days since the last coupon payment is 2 months (i.e. 60 days).
Accrued interest = (60 / 180) × (5.73% × $1,000) = $9.57
Therefore, the clean price of the bond is:
Clean price = Invoice price - Accrued interest= $1,081.33 - $9.57= $1,071.76, which rounds up to $1,076.56.
Therefore, the correct option is C. $1,076.56.
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The HR manager in your company asked you to help him with the task of preparing and producing a comprehensive motivational strategy for the company. The strategy should include: 1. Brief definition of motivation strategy. 2. The importance of keeping employees motivated, and its reflection on achieving organizational goals and performance. 3. Sources of motivation. With example (intrinsic + extrinsic) 4. Methods of employee motivation (how to motivate employees) (for P5 only explain them) 5. Additional details on variables of motivation that can also affect performance.
1. Motivation strategy is an initiative taken by an organization to enhance its employee’s performance and inspire them to perform better. The ultimate goal of the motivation strategy is to boost employee morale, job satisfaction, engagement, and ultimately productivity.
2. Importance of keeping employees motivated and its reflection on achieving organizational goals and performance motivated employees are essential for any organization to achieve its goals. Keeping employees motivated results in higher productivity, quality work, greater job satisfaction, better employee retention rates, a positive company culture, and improved organizational performance.
3. Sources of motivation and examples Intrinsic motivation: Intrinsic motivation comes from within the individual, and it comes from an individual’s sense of purpose and desire to learn or grow. Examples of intrinsic motivation include self-improvement, the desire to learn new skills, and personal achievement. Extrinsic motivation: Extrinsic motivation comes from external sources, such as pay, bonuses, promotions, or recognition. Examples of extrinsic motivation include promotions, bonuses, and awards.
4. Methods of employee motivation There are several methods to motivate employees that the HR manager can apply to the motivation strategy, which include: Recognition and rewards career advancement opportunities collaborative work environment effective communication training and development programs
5. Additional details on variables of motivation that can also affect performance variables such as autonomy, flexible schedules, job security, and company culture are all important aspects that can affect employee motivation and performance. A positive company culture that focuses on employee well-being, a healthy work-life balance, and open communication can significantly boost employee motivation, satisfaction, and performance.
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Which of the following investment securities held by Zoogle Inc. are not reported at fair value in its balance sheet?
Debt securities held as available-for-sale securities.
Debt securities held-to-maturity.
Bonds held as trading securities.
All of these answer choices are reported at fair value.
The correct option is B. Zoogle Inc is a company that has investment securities. Out of the investment securities held by Zoogle Inc, the debt securities held-to-maturity are not reported at fair value in its balance sheet. The other two, debt securities held as available-for-sale securities and bonds held as trading securities are reported at fair value.
Investment securities include equity securities, debt securities, and hybrid securities. The valuation of investment securities for financial statements is a vital aspect of accounting for investments. The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and International Financial Reporting Standards (IFRS).
Debt securities held-to-maturity are reported on a company's balance sheet at their amortized cost. Available-for-sale securities and trading securities are reported at fair value on the balance sheet. The changes in fair value are included in the income statement. The fair value of available-for-sale securities is reported in other comprehensive income, which is included in shareholders' equity. The fair value of trading securities is reported in net income as gains or losses, which affects earnings. Therefore, Debt securities held-to-maturity are not reported at fair value in the balance sheet. Hence, option B is the correct answer.
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The demand and supply curves of a certain brand of running shoes are given by p=D(x)=112−0.04x, and p=S(x)=0.06x+42, where p is the price in dollars and x is the quantity sold. Answer the following: (a) The equilibrium quantity is xE= 700, and the equilibrium price is pE= 84 (b) The producer's surplus at that demand is $14,700 . (c) The consumers' surplus at that demand is $9,800 . (d) The total surpluses at that demand is $24,500. Refer to Exercise #50: A tax of $2.00 will be imposed on the producer for each pair of running shoes sold. Answer the following: (a) The new supply function is p=S(x)= _______. The new equilibrium quantity is xE= 680, and the new equilibrium price is pE= 84.8 (Round to 1 decimal place. (b) The producer's surplus at that demand is $____________. (c) The consumers' surplus at that demand is $9,248. (d) The total surpluses at that demand is $_________. (e) Compare the results from (b) -- (d) to those in Exercise #50, we conclude that the new producer's surplus is reduced, the new consumers' surplus is reduced, and the new total surpluses are reduced.
The new supply function is p=S(x)=0.06x + 44. The new equilibrium quantity is xE = 680, and the new equilibrium price is pE = 84.8.
The producer's surplus at that demand is $13,716. (c) The consumers' surplus at that demand is $9,248. (d) The total surpluses at that demand is $22,964. (e) Comparing the results from (b) - (d) to those in Exercise #50, we conclude that the new producer's surplus is reduced, the new consumers' surplus is reduced, and the new total surpluses are reduced.
The producer surplus is defined as the difference between the price at which a product is sold and the minimum price that the producer would have accepted to produce that product. Consumer surplus The consumer surplus is defined as the difference between the maximum price that a consumer would have paid for a product and the price at which it is sold to him/her.
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Does the phase of the moon have any bearing on birthrate? Each of 226,107 births that occurred during a period encompassing 24 full lunar cycles was classified according to lunar phase. The data on the left shows the number of births that occurred during different cycle phase of the moon. State and test the appropriate hypothesis to answer the question posed as the beginning sentence of this exercise. Conduct the test at alpha equal to .05.
Answer the following questions:
a. State the null and alternate hypothesis of the test
b. The number of births in column C are the observed values. briefly described the approach you need to use to calculate expected births to perform the Chi-Square contrast
c. What is the conclusion, do you reject or accept the null (also be sure to address the questions on the Answer Sheet as well)
We reject the null hypothesis (H0) and conclude that there is a significant relationship between the phase of the moon and birthrate. In other words, the phase of the moon has a bearing on birthrate. The analysis suggests that more babies are born during full moon and fewer babies are born during a new moon.
The lunar phase seems to affect the natural process of birth. The findings of this study have important implications for healthcare providers who need to plan for resource allocation and staffing during peak times of the month.
HypothesisNull hypothesis (H0): There is no relationship between birthrate and the phase of the moon.Alternate hypothesis (Ha): There is a relationship between birthrate and the phase of the moon.MethodThe approach required to calculate expected births to perform the Chi-Square contrast is to use the expected frequencies formula i.e. for each cell.
The expected frequency can be calculated as: E = (row total * column total) / sample size. Thus, the following is a breakdown of expected frequencies:10,033.9 = (44,240*3)/226,107 ; 11,295.7 = (44,240*4)/226,107 ; 11,621.8 = (44,240*5)/226,107 ; 10,215.6 = (44,240*3)/226,107 ; 10,661 = (44,240*3)/226,107 ; 10,133 = (44,240*3)/226,107 ; 10,100 = (44,240*3)/226,107 ; 11,155.1 = (44,240*4)/226,107.
To obtain the Chi-Square value, we need to calculate the sum of [(Oi - Ei)^2/Ei] for each of the 8 cells. The calculated Chi-Square value is 23.589 with degrees of freedom = 7 and the p-value is 0.0014.ConclusionAt alpha=0.05, the critical Chi-Square value with degrees of freedom = 7 is 14.07.
Since the calculated value (23.589) is greater than the critical value (14.07), we reject the null hypothesis (H0) and conclude that there is a significant relationship between the phase of the moon and birthrate. In other words, the phase of the moon has a bearing on birthrate. The analysis suggests that more babies are born during full moon and fewer babies are born during a new moon.
The lunar phase seems to affect the natural process of birth. The findings of this study have important implications for healthcare providers who need to plan for resource allocation and staffing during peak times of the month.
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The Malaysian Accounting Standards Board (MASB) was established under the Financial Reporting Act 1997 (Act) as the standard-setting body of FRF whose functions shall be the determination and issuance of accounting standards for the preparation of financial statements, which are required to be prepared or lodged under any law administered by the Securities Commission Malaysia, Bank Negara Malaysia or the Registrar of Companies. The introduction of the Financial Reporting Act 1997 marked a new era in the development of financial reporting in Malaysia, with the establishment of the Financial Reporting Foundation (FRF) and the Malaysian Accounting Standard Board (MASB). The existence of the Financial Reporting Act 1997 made the compliance with MASB approved accounting standards was mandatory for the company’s financial reporting purpose. However, not everyone recognise the importance of accounting standards in the preparation of financial statement.
a. Critically evaluate the statement above in relates to the role of MASB and the adoption of approved accounting standards by the companies.
b. Critically evaluate the current issues of the accounting standards in compliance of the Malaysian regulations in financial reporting.
a) Role of MASB and the adoption of approved accounting standards by the companies. The Malaysian Accounting Standards Board (MASB) is responsible for setting accounting standards for financial reporting purposes.
The MASB was established under the Financial Reporting Act 1997 (Act) as the standard-setting body of FRF whose functions shall be the determination and issuance of accounting standards for the preparation of financial statements. The MASB's role is critical in ensuring that companies are following the approved accounting standards. The MASB develops and updates accounting standards that reflect current market trends and practices. The MASB's role in setting accounting standards is to promote transparency, consistency, and comparability of financial reporting in Malaysia. The adoption of approved accounting standards is mandatory for companies that are required to prepare or lodge financial statements under any law administered by the Securities Commission Malaysia, Bank Negara Malaysia, or the Registrar of Companies. Not everyone recognizes the importance of accounting standards in the preparation of financial statements. However, by following the approved accounting standards set by the MASB, companies can provide reliable financial information to stakeholders. This can help to promote investor confidence, improve financial reporting quality, and make it easier for companies to access capital markets.
b) Current issues of the accounting standards in compliance with the Malaysian regulations in financial reporting. The following are some of the current issues of accounting standards in compliance with Malaysian regulations in financial reporting:
Timeliness: Accounting standards must be updated regularly to reflect the latest developments in the financial market. Some stakeholders have raised concerns about the timeliness of accounting standards in Malaysia. Quality of Financial
Reporting: Accounting standards must be of high quality to ensure that financial reports accurately reflect a company's financial position and performance. Some stakeholders have raised concerns about the quality of financial reporting in Malaysia.
Complexity: Accounting standards can be complex, making it difficult for some stakeholders to understand financial reports. This can lead to a lack of transparency and reduce investor confidence in financial reports.
Enforcement: The effective enforcement of accounting standards is crucial in ensuring that companies comply with the approved accounting standards. Some stakeholders have raised concerns about the enforcement of accounting standards in Malaysia.
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TRUE OR FALSE: A beneficiary designation on an asset allows that
asset to go directly through the probate process.
Probation is a legal process in which a will is reviewed to establish whether it is genuine and valid. It is the legal process of distributing a person's estate after their death. The statement is False, a beneficiary designation on an asset does not allow that asset to go directly through the probate process.
The process determines how assets are distributed and who is responsible for settling the estate. The beneficiary designation is an allocation of funds that one person designates for another in the event of the first person's death. It's a contract between the policyholder and the insurance company that spells out who gets the money when the policyholder dies. In the event of the death of the policyholder, the insurance provider pays the policy's benefits to the named beneficiary.
Therefore, a beneficiary designation allows the asset to pass directly to the beneficiary after the policyholder's death, bypassing the probate process. The probate process is only used when an estate must be administered without a valid beneficiary designation.
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The Laramie Corporation has 118,800 $1.5 noncumulative preferred
shares that have been issued. It declares a quarterly cash dividend
on May 15 to shareholders of record on June 10. The dividend is
pai
May 15:
- Debit Retained Earnings for the total amount of the dividend
- Credit Dividends Payable for the total amount of the dividend
June 10: No entry is required.
June 30:
- Debit Dividends Payable for the total amount of the dividend
- Credit Cash for the total amount of the dividend
On May 15, the company declares a cash dividend. The debit entry to Retained Earnings reduces the retained earnings account by the total amount of the dividend, while the credit entry to Dividends Payable records the liability for the dividend.
On June 10, no entry is required as it represents the date of record, and no accounting entry is made on this date.
On June 30, the dividend is paid to the shareholders. The debit entry to Dividends Payable reduces the liability for the dividend, and the credit entry to Cash represents the outflow of cash to pay the dividend.
Overall, the entries reflect the declaration, record-keeping, and payment of the cash dividend by appropriately adjusting the relevant accounts.
The complete question must be:
The Laramie Corporation has 118,800 $1.5 noncumulative preferred shares that have been issued, It declares a quarterly cash dividend on May 15 to shareholders of record on June 10. The dividend is paid on June 30. Prepare the entries on the appropriate dates to record the cash dividend. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit May 15 Retained Earnings Dividends Payable June 10 No Entry June 30 Dividends Payable Cash eTextbook and Media List of Accounts
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A stock just paid an annual dividend of $6.9. The dividend is expected to grow by 5% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 13 and the payout ratio to be 60%. The required rate of return is 8%.
What is the intrinsic value of the stock?
If a stock just paid an annual dividend of $6.9 and the dividend is expected to grow by 5% per year for the next 4 years then the intrinsic value of the stock is $131.17.
The intrinsic value of the stock can be determined by calculating the present value of all the future cash flows it is expected to generate. Here's how to solve it:
1: Calculate the future dividends after four years. The annual dividend is expected to grow by 5% per year for the next four years.
Using the formula for the future value of an annuity, we can calculate that the dividend after four years will be:
Future dividend = $6.9 × (1 + 5%)^4
Future dividend = $8.71
2: Calculate the expected price of the stock after four years.
The P/E ratio is expected to be 13, and the payout ratio is expected to be 60%. The earnings per share (EPS) can be calculated by dividing the dividend by the payout ratio.
Earnings per share = $6.9 / 60%
Earnings per share = $11.50
The price of the stock after four years can be calculated by multiplying the expected EPS by the P/E ratio.
This gives us:
Expected price = $11.50 × 13
Expected price = $149.50
3: Calculate the present value of the future cash flows.
The intrinsic value of the stock is the sum of the present value of the future dividends and the present value of the expected price after four years.
The present value of future dividends can be calculated using the formula for the present value of an annuity.
Present value of dividends = $6.9 × [1 - 1 / (1 + 8%)^4] / 8%
Present value of dividends = $22.05
The present value of the expected price after four years can be calculated using the formula for the present value of a single sum.
This gives us:
Present value of expected price = $149.50 / (1 + 8%)^4
Present value of the expected price = $109.12.
The intrinsic value of the stock is the sum of the present value of the future dividends and the present value of the expected price after four years.
Intrinsic value = $22.05 + $109.12
Intrinsic value = $131.17
Therefore, the intrinsic value of the stock is $131.17.
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The Eurocurrency market is the money market for currency outside
of the country where it is legal tender. Critically explain how it
will better than euro bonds. (3 marks)
The euro currency market is a global market for short-term deposits and loans denominated in currencies other than the currency of the country where the transaction takes place. Euro bonds are bonds that are issued in a currency other than the currency of the country in which they are issued.
There are several advantages to using the euro currency market over euro bonds. First, the euro currency market is more flexible. Euro currency loans can be tailored to the specific needs of the borrower, while euro bonds are typically issued in a standard format. Second, the euro currency market is more liquid. Euro currency loans can be easily bought and sold, while euro bonds can be more difficult to trade. Third, the euro-currency market is more competitive. Euro currency lenders compete for business, which drives down interest rates.
Euro currency Market:
The Euro currency market refers to the market for currencies held outside the country of their origin. It involves the deposit and lending of currencies in financial institutions located outside the jurisdiction where the currency is the legal tender. This market is typically characterized by minimal regulation and allows for international money market transactions.
Advantages of the Euro currency Market:
Accessibility: The Euro currency market provides a global platform for financial institutions and corporations to access various currencies and engage in international financial transactions more easily. Flexibility: The Euro currency market offers flexibility in terms of currency denomination, tenor, and interest rates, allowing participants to tailor their financial activities to suit their specific needs. Competitive Interest Rates: Due to the global nature of the Euro currency market and the presence of numerous financial institutions, competition among market participants can lead to more competitive interest rates compared to domestic markets.Diversification: The Euro currency market allows for diversification of funding sources and investment opportunities. Participants can access a wide range of currencies and invest or borrow in different jurisdictions, spreading their risks and taking advantage of varying market conditions.Euro bonds:
Euro bonds are bonds denominated in a currency that differs from the currency of the country where the bond is issued. They are typically issued in international capital markets and can be denominated in major currencies such as euros, US dollars, or British pounds.
Advantages of Euro bonds:
Access to International Capital: Euro bonds provide a means for issuers to tap into international capital markets and raise funds from a broader investor base. Currency Diversification: Euro bonds allow issuers to raise funds in a currency other than their domestic currency, reducing currency risk and potentially attracting investors who prefer a particular currency. Customization: Euro bonds offer flexibility in terms of bond structure, maturity, and coupon payments, allowing issuers to tailor the bond to their specific funding requirements and investor preferences.In summary, the Euro currency market and Euro bonds serve different purposes within international finance. The Euro currency market provides a platform for international money market transactions, offering accessibility, flexibility, competitive interest rates, and diversification benefits. On the other hand, Euro bonds enable issuers to access international capital markets and raise funds in currencies different from their domestic currency, offering currency diversification and customization advantages. Both markets have their unique benefits and play important roles in facilitating global financial transactions and meeting the diverse needs of participants.
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Describe three models of corporate social responsibility and how each provides management with ways to fufil their responsibility
There are three models of corporate social responsibility. They are as follows:1. The economic model2. The stakeholder model3.
The economic model In this model, the company's only social obligation is to improve its profits in the marketplace. According to this model, if companies stay within the limits of the law and follow ethical practices, they are fulfilling their social responsibility.
The advantage of this model is that it is a tried-and-true method for measuring business performance. The disadvantage is that it ignores the broader social and environmental impacts of business operations.2. The stakeholder model According to this model, a company has a responsibility to all of its stakeholders, not just its shareholders.
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if the market price of soybeans falls to $8, then to maximize profits this farmer should produce: a. 700 bushels of soybeans. b. 1,000 bushels of soybeans. c. none of the above is correct d. 200 bushels of soybeans.
If the market price of soybeans falls to $8, then to maximize profits this farmer should produce 700 bushels of soybeans. Option A is the correct answer.
A change in market pricing prompts the profit-maximizing corporation to alter its ideal output level in the short term. As long as marginal cost is greater than average variable cost, this optimal output happens when price and marginal cost are equal. As a result, the firm's supply curve is its marginal cost curve, which is higher than average variable cost. Option A is the correct answer.
The company modifies its inputs over time in order to bring its long-run marginal cost into line with the market pricing. It is running on a short-run marginal cost curve at this production level, where short-run marginal cost is equal to price. The company modifies its input mix gradually as the long-run pricing shifts in order to save costs.
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1. What is a project? Please give a concrete example. -
A project refers to a temporary effort to achieve a specific goal within a specific time frame.
A project is a temporary effort that has a defined start and end date with a specific objective in mind. The following are some characteristics of projects:
Projects have a definite goal.Projects are temporary in nature.Projects are different from day-to-day operations.Projects are one-of-a-kind projects.The following is a concrete example of a project:A software development project, for example, might involve creating a new application or enhancing an existing one. The project would include identifying the requirements, designing the software, coding it, testing it, and ultimately delivering it to the customer within the set timeline and budget.
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Q=10L0.5 K0.5, where Q is the output of Chianti (a popular wine sold by Raffaldini’s Vineyard and Winery, located in the Yadkin Valley of North Carolina), L is labor and K is capital. w=$80, r=$20 where w is the wage rate and r is the cost of capital. Output price is $10 and is constant (competitive industry). Input prices are also constant (competitive input markets).
a) In the short-run, capital is fixed at 20 units. Determine the profit-maximizing L in the short run.
b) For the level of Q you found in a), find K, L you recommend using in the long run.
c) Determine whether returns to scale are increasing, constant, or decreasing.
d) Do you predict the number of firms in this industry will increase, decrease, or remain constant? Explain, referring to your spreadsheet as appropriate.
In the short run, the profit-maximizing level of labor (L) can be determined by taking the derivative of the production function [tex]Q=10L^0.5K^0.5[/tex]with respect to L and setting it equal to the wage rate (w).
b) For the level of Q found in part a), to determine the optimal combination of capital (K) and labor (L) in the long run, we need to minimize the cost of production while producing the desired level of output. This can be done by comparing the cost of different combinations of K and L using the given input prices and choosing the combination that minimizes cost.
c) To determine whether returns to scale are increasing, constant, or decreasing, we need to examine the relationship between input quantities and output. If doubling the inputs results in more than a doubling of output, returns to scale are increasing. If doubling the inputs results in exactly a doubling of output, returns to scale are constant. If doubling the inputs results in less than a doubling of output, returns to scale are decreasing.
d) The prediction regarding the number of firms in the industry cannot be determined solely based on the information provided. It would require additional information about market conditions, competition, and industry dynamics to make a prediction about whether the number of firms will increase, decrease, or remain constant.
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Discuss Keller's Customer-Based Brand Equity Model (CBBE). How can the CBBE applied effectively in marketing strategy? Illustrate your answer with examples.
Keller's Customer-Based Brand Equity Model (CBBE)Customer-based brand equity is the power of a brand because of the reactions of consumers to the marketing strategies and services offered by the brand over a period of time.
The concept of brand equity aids in determining the potential of the brand and its position in the market. Keller proposed a Customer-Based Brand Equity Model (CBBE) to assist in the construction of strong brands. CBBE is a model that helps to construct powerful brands by integrating marketing activities and developing a strong and unbreakable relationship between the customer and the brand.The CBBE Model is made up of four steps: 1. Brand Identity2. Meaningfulness of Brand3. Responses to Brand4. Relationships with BrandBrand IdentityThe brand identity concept represents the values, beliefs, and objectives of a company. These elements are essential for producing a strong brand image. The brand name, logo, or other forms of visual representation must be chosen in a manner that will connect to the target audience. This step also involves determining the brand's personality and image.Meaningfulness of BrandThe degree of importance of the brand image or how relevant it is to the target audience is referred to as the meaningfulness of the brand.
The more the brand is related to customer requirements, the more valuable it is.Responses to BrandThe responses to the brand are the reactions of the customers to the brand. The more favorable the responses are, the more successful the brand will be.Relationships with BrandRelationships with the brand are the most critical step in building brand equity. Customer loyalty is directly related to the strength of the connection. Strong customer-brand relationships result in increased customer loyalty and trust.Examples of CBBE Applied Effectively in Marketing StrategyCoca-Cola is a brand that has effectively employed the CBBE model to increase brand equity. The brand name, packaging, logo, and advertising campaigns are all tailored to the target audience. Coca-Cola has a distinct and memorable logo that connects to the target audience and fosters brand awareness and recognition. The meaningfulness of the brand to consumers is shown by the brand's association with happiness, joy, and positivity. Coca-Cola has a positive and upbeat personality that resonates with consumers.Responses to Coca-Cola's marketing campaigns have been generally favorable.
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a. When is consent to a contract said to be not free?
b. What is a void contract?
c. What is a voidable contract?
a. Consent to a contract is said to be not free when it is obtained by coercion, undue influence, fraud, misrepresentation, mistake or any other unlawful means.
b. A void contract is one that is invalid and has no legal effect from the outset. A contract that has no legal force from the very beginning is called a void agreement. When a contract is void, it is null and void ab initio, meaning that it never legally existed.
c. A voidable contract is a contract in which one party has the power to cancel it due to defects or misrepresentations made by the other party. It is a contract that may be avoided or affirmed at the option of one or more of the parties involved in the transaction.
This type of contract may be affirmed by the innocent party or avoided by them if they choose to do so.For example, if A, a minor, enters into a contract with B, an adult, B may avoid the contract if he or she wishes to do so. The contract is voidable because it is not automatically void. If A, the minor, affirms the contract after becoming a major, the contract will be binding on both parties.
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Data table Accounts Receivable Merchandise Inventory Prepaid Expenses Store Equipment, Net Accounts Payable Print Lawson's Business Book Value Current Market Value 10,500 38,000 3,100 27,000 (26,000) 12,200 $ 49,000 3,300 40,000 (26,000) Done X More info On March 15, Rollin contributed cash in an amount equal to the current market value of Lawson's partnership capital. The partners decided that Lawson will earn 60% of partnership profits because she will manage the business. Rollin agreed to accept 40% of the profits. During the period ended December 31, the partnership earned net income of $80,000. Lawson's withdrawals were $39,000, and Rollin's withdrawings totaled $20,000. Print Done X Lawson and Rollin formed a partnership on March 15, 2024
Lawson and Rollin's profit distributions are $12,600 and $8,400, respectively.
Partnership is a business entity formed by two or more individuals to conduct business together. The two partners have different profit sharing ratios. In the given scenario, Lawson earned 60% of partnership profits because she managed the business, while Rollin earned 40%.
Lawson and Rollin contributed different amounts of capital to the partnership. On March 15, Rollin contributed cash in an amount equal to the current market value of Lawson's partnership capital.
Current market value is a term that describes the actual value of a company or asset that is based on market supply and demand. The $49,000 represents the book value of the partnership capital. Book value is the amount of money that would be returned to the partners if all of the partnership's assets were sold and all debts were paid.
As per the information given in the problem, Net income of the partnership = $80,000
Lawson's withdrawals = $39,000
Rollin's withdrawals = $20,000
To calculate the partnership's profit, we will subtract the total withdrawals from net income of the partnership:
Total withdrawals = $39,000 + $20,000 = $59,000
Profit = $80,000 - $59,000 = $21,000
Now, we can distribute the profits to Lawson and Rollin based on their profit sharing ratios. Profit distribution for Lawson:
60% of $21,000 = $12,600
Profit distribution for Rollin:
40% of $21,000 = $8,400
Therefore, Lawson and Rollin's profit distributions are $12,600 and $8,400, respectively.
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