The company paid a $1,100 cash dividend to the owner (sole shareholder).This transaction decreases cash and retained earnings accounts.A trial balance is an accounting report that lists the balances of all ledger accounts in order to check whether the books are in balance or not.
To prepare a trial balance for the Spade Company, we must first review the transactions for the month of May and prepare journal entries to record them in the company's general ledger. We can then use the balances of these ledger accounts to prepare the trial balance. The transaction analysis for each of the transactions is presented below:Transaction A: K. Spade invested $17,250 cash in the company in exchange for common stock.This transaction increases cash and common stock accounts.Transaction B: The company purchased supplies for $500 cash.This transaction increases supplies and decreases cash accounts.Transaction C: The company purchased $9,539 of equipment on credit.This transaction increases equipment and accounts payable accounts.Transaction D: The company received $2,036 cash for services provided to a customer.This transaction increases cash and service revenue accounts.
Transaction E: The company paid $9,539 cash to settle the payable for the equipment purchased in transaction C.This transaction decreases cash and accounts payable accounts.
Transaction F: The company billed a customer $3,657 for services provided.This transaction increases accounts receivable and service revenue accounts.Transaction G: The company paid $520 cash for the monthly rent.This transaction decreases cash and rent expense accounts.
Transaction H: The company collected $1,536 cash as partial payment for the account receivable created in transaction F.This transaction increases cash and decreases accounts receivable accounts.
Transaction I: The company paid a $1,100 cash dividend to the owner (sole shareholder).This transaction decreases cash and retained earnings accounts.
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Below are the information of Ameena Enterprise. Ameena is planning to sell giant curry puff named "Yummy Curry Puff" The selling price for her curry puff is RM 3.00. The followings are cost data related to Cost for one unit (RM) Direct material 0.90 Direct labor 0.30 Factory overhead: variable 0.30 The fixed cost for the product is RM 260 and the normal production is 500 curry puffs. Required:
Ameena Enterprise, which is planning to sell giant curry puff "Yummy Curry Puff," The break-even point indicates that Enterprise must sell at least 174 giant curry puffs to cover all of her costs. If Ameena Enterprise wants to earn a profit, she must sell more than 174 giant curry puffs.
The fixed cost for the product is RM 260, and the regular production is 500 curry puffs.The above information indicates the cost data for the giant curry puff (one unit) sold by Ameena Enterprise. The cost of the curry puff is composed of direct materials, direct labor, variable factory overhead, and fixed costs.
The total variable cost (TVC) of making one unit of the giant curry puff is RM 1.50 (0.90 + 0.30 + 0.30), and the total fixed cost (TFC) is RM 260. The total cost (TC) is RM 260 + RM 1.50Q. The selling price (SP) for one unit of the giant curry puff is RM 3.00.
The break-even point (BEP) is where total revenue equals total cost (TR = TC). The formula for finding the BEP in units is BEP (in units) = TFC/ (SP - TVC). The BEP in units of Ameena Enterprise's giant curry puff is calculated as follows:BEP (in units) = 260 / (3.00 – 1.50) = 260 / 1.50 = 173.33 ≈ 174 units rounded up to the nearest whole number.
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In the economy of Smithsonia in 2010, consumption was $2000, exports were $800, GDP was $4800, government Xpurchases were $840, and investment was $1400. What were Smithsonia's net exports in 2010? a -$560 b -$240 c $240 d $560
The net exports in the economy of Smithsonia in 2010 were -$240.
Net exports can be calculated by subtracting imports from exports. However, in this given information, the value of imports is not provided directly. We can use the formula:
Net Exports = Exports - Imports
Since the information about imports is not given, we can use the identity that GDP is equal to the sum of consumption, investment, government purchases, and net exports:
GDP = Consumption + Investment + Government Purchases + Net Exports
We rearrange the equation to solve for Net Exports:
Net Exports = GDP - (Consumption + Investment + Government Purchases)
Substituting the given values:
Net Exports = $4800 - ($2000 + $1400 + $840)
Net Exports = $4800 - $4240
Net Exports = -$240
Therefore, Smithsonia's net exports in 2010 were -$240. This means that the value of imports in Smithsonia exceeded the value of exports by $240.
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A manufacturing company has monthly demand for one of its products as follows: Demand. Month February 610 March 510 April 420 May 600 June 580 July 550 490 August September 520 A. Develop a three-period weighted moving average forecast with weights of 0.40, 0.40, and 0.20 for the most recent values, in that order. B. Develop an exponential smoothing forecast using a = 0.25. C. Calculate MAPE for each of the above methods, and indicate which method seems to be more accurate and why. D. How good is the chosen forecasting method in Part C and why?
A. Three-period weighted moving average forecast
Weights are 0.40, 0.40, and 0.20 for the most recent values.
The formula for the weighted average is:
Forecast for February = (610 * 0.2) + (550 * 0.4) + (490 * 0.4) = 530
Forecast for March = (550 * 0.2) + (490 * 0.4) + (520 * 0.4) = 506
Forecast for April = (490 * 0.2) + (520 * 0.4) + (610 * 0.4) = 548B.
B. The formula for the exponential smoothing forecast is:
February forecast = 610;
March forecast = 0.25 x 610 + 0.75 x 610 = 610;
April forecast = 0.25 x 610 + 0.75 x 510 = 530;
May forecast = 0.25 x 510 + 0.75 x 420 = 458;
June forecast = 0.25 x 420 + 0.75 x 600 = 555;
July forecast = 0.25 x 600 + 0.75 x 580 = 590;
August forecast = 0.25 x 580 + 0.75 x 550 = 554;
September forecast = 0.25 x 550 + 0.75 x 520 = 529.
C. The formula for calculating Mean Absolute Percentage Error (MAPE) is:
$MAPE= (Σ\frac{ | Actual - Forecast | }{Actual})×100 / n$
The MAPE for the weighted moving average forecast is (9.69 + 1.18 + 30.46 + 17.54 + 4.31 + 7.27 + 6.98 + 1.15) / 8 = 10.88%
The MAPE for the exponential smoothing forecast is (0.00 + 17.65 + 26.19 + 8.64 + 4.09 + 2.13 + 4.48 + 1.36) / 8 = 8.00%
Exponential smoothing is more accurate than weighted moving average forecasting since it has a lower MAPE (8.00% < 10.88%).
D. The selected exponential smoothing forecasting method is good because it has a lower MAPE (8.00% < 10.88%). When compared to other forecast methods, MAPE is one way to measure forecast accuracy. Smaller MAPEs indicate a more accurate forecast.
Therefore, the exponential smoothing method is a reliable method to use in forecasting the future demand for the product.
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is applied continuously to a box initially at rest on a horizontal surface. the box slides with negligible friction for equal distances
The mass of the box is doubled, the force required to maintain the acceleration will also be doubled. Similarly, if the force is doubled, the acceleration will also be doubled.
When a force is applied continuously to a box initially at rest on a horizontal surface, the box slides with negligible friction for equal distances. This is known as uniform acceleration, which is characterized by constant acceleration (change in velocity over time) and a linear increase in displacement (distance covered).In uniform acceleration, the box is initially at rest, and the applied force produces an acceleration in the direction of the force.
The force is given by the formula F = ma, where F is the force, m is the mass of the box, and a is the acceleration. The box moves with uniform acceleration until it reaches a final velocity given by v = u + at, where v is the final velocity, u is the initial velocity (which is zero in this case), a is the acceleration, and t is the time taken. The displacement covered by the box is given by s = ut + (1/2)at^2, where s is the displacement, u is the initial velocity, a is the acceleration, and t is the time taken.
If the force is applied continuously for equal distances, the box will cover equal distances in equal time intervals, and the velocity and acceleration will remain constant. Therefore, the displacement covered by the box will be proportional to the square of the time taken (s ∝ t^2),
and the force required to maintain the acceleration will also be proportional to the mass of the box (F ∝ m). Therefore, if the mass of the box is doubled, the force required to maintain the acceleration will also be doubled. Similarly, if the force is doubled, the acceleration will also be doubled.
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knowledge management question Write around 250 words to describe
types of knowledge and expertise that may be used, discovered or
captured in the proposed initiative? use amazon company as an
example
Knowledge management (KM) refers to the process of collecting, sharing, using, and managing knowledge and information in an organization.
Amazon, as one of the world's largest e-commerce companies, has implemented several knowledge management initiatives to help it achieve its goals. One example of a KM initiative implemented by Amazon is the Amazon Knowledge Management system.
This system enables the company to gather, store, and share information across its various departments and divisions, including customer service, marketing, and product development. Amazon's knowledge management system captures a vast array of information, including customer data, product information, sales data, and more. This information is then used to improve customer service, develop new products, and increase efficiency in the company's operations.
Another KM initiative that Amazon has implemented is the Amazon Web Services (AWS) Knowledge Center. This resource is available to AWS customers and provides them with access to a wealth of knowledge and information related to the use of AWS products and services. Overall, Amazon's knowledge management initiatives have been highly successful in helping the company to achieve its goals. By capturing and utilizing information effectively, Amazon has been able to improve its operations, develop new products and services, and deliver a better customer experience.
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1. The Central Bank pays 3.8% compounded quarterly on certain types of deposits. What is the effective annual rate of interest?
Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 8 decimal places, and there is no need to include any symbols such as % in your final answer.
2. The Central Bank pays 3.8% compounded quarterly on certain types of deposits. If interest is compounded daily instead of quarterly, what nominal rate of interest compounded daily will maintain the same effective rate of interest you have found in the previous question?
Note: to receive the full mark, you will keep all 8 decimal places when performing calculations, express your final answer in percentage with 8 decimal places, and there is no need to include any symbols such as % and comma in your final answer.
The effective annual rate of interest is 3.86403931% per year. The formula for effective annual rate of interest is (1 + r/m)^m - 1, where r is the nominal rate of interest and m is the number of times the interest is compounded. In this case, r = 3.8% and m = 4 (since interest is compounded quarterly).
Therefore, the effective annual rate of interest is (1 + 0.038/4)^4 - 1 = 0.0386403931 or 3.86403931%.2. Let the nominal rate of interest compounded daily be r'. Therefore, the effective annual rate of interest compounded daily is given by (1 + r'/365)^365 - 1. Since the effective annual rate of interest compounded quarterly is 3.86403931%, we can set the two equations equal to each other and solve for r'. (1 + r'/365)^365 - 1 = (1 + 0.038/4)^4 - 1 Simplifying this equation and solving for r', we get r' = 0.038318214 or 3.8318214%. Therefore, a nominal rate of interest compounded daily at 3.8318214% will maintain the same effective rate of interest as a nominal rate of interest compounded quarterly at 3.8%.
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Countries differ in how they tax foreign-source income of their domestic MNCs.
Multiple Choice
a. Therefore, different forms of structuring a multinational organization within a country can result in different tax liabilities for the firm.
b. But all countries tax domestic income of their domestic MNCs in the same way.
c. all of the options
d. However, due to tax treaties and foreign tax credits, this is not an issue for a U.S.-based MNC.
The correct option that states countries differ in how they tax foreign-source income of their domestic MNCs is option A. Therefore, different forms of structuring a multinational organization within a country can result in different tax liabilities for the firm.
Foreign-source income is a term used to describe the income earned by individuals and businesses outside their home countries. This is typically the result of working for a foreign company or conducting business abroad. However, not all countries tax foreign-source income in the same way.
MNC stands for Multinational Corporation. An MNC is a business with operations in multiple countries. MNCs are typically large companies with significant market power and the ability to influence local and national policies in the countries in which they operate.
Countries differ in how they tax foreign-source income of their domestic MNCs. Different forms of structuring a multinational organization within a country can result in different tax liabilities for the firm. However, due to tax treaties and foreign tax credits, this is not an issue for a U.S.-based MNC.
Therefore, the correct option that states countries differ in how they tax foreign-source income of their domestic MNCs is option A.
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Swaps) Suppose both A and B want to borrow $50 million for 10 years. A would like to borrow floating rate and B would like to borrow fixed rate. There were quoted the following rate: Fixed 7% p.a. Floating LIBOR + 0.2% LIBOR + 1.0% A B 8% p.a. How we create swap contract with 1) benefits of A and are equal (6.9%) 2) benefit of A more than 3 times of benefit of B (6.95%) 3) dealer needs 0.05% for fee (6.875%,6.925%)
1) To create a swap contract with equal benefits for A and B (6.9%):
- A will borrow at a floating rate of LIBOR + 0.2%.
- B will borrow at a fixed rate of 6.9%.
2) To create a swap contract with the benefit of A more than 3 times that of B (6.95%):
- A will borrow at a floating rate of LIBOR + 0.2%.
- B will borrow at a fixed rate of 6.95%.
3) To create a swap contract with a dealer fee of 0.05% (6.875%, 6.925%):
- A will borrow at a fixed rate of 6.875%.
- B will borrow at a floating rate of LIBOR + 0.95%.
To create a swap contract that satisfies the given conditions, we need to determine the fixed rate that will benefit A and the floating rate that will benefit B.
1) Benefits of A and B are equal (6.9%):
In this case, A wants to borrow at a floating rate (LIBOR + 0.2%) and B wants to borrow at a fixed rate of 7%.
To achieve equal benefits, the fixed rate for A should be set at 6.9%.
2) Benefit of A more than 3 times of benefit of B (6.95%):
In this scenario, A wants to borrow at a floating rate (LIBOR + 0.2%) and B wants to borrow at a fixed rate of 7%.
To ensure A receives a benefit more than 3 times that of B, the fixed rate for A should be set at 6.95%.
3) Dealer needs 0.05% for fee (6.875%, 6.925%):
In this case, we need to account for a dealer fee of 0.05%.
For A, the fixed rate should be set at 6.875% (7% - 0.05%).
For B, the floating rate should be set at LIBOR + 0.95% (LIBOR + 1.0% - 0.05%).
These calculations ensure the desired benefits and account for the dealer fee.
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How can you combine K-means clustering and Bayesian to select the most suitable restaurant for the user? The age, taste, choice of food and details of friends are available to you along with some obvious features of restaurants.
To combine K-means clustering and Bayesian methods for selecting a suitable restaurant based on user details (age, taste, choice of food, and friends), follow these steps: preprocess the data, apply K-means clustering to group similar restaurants, use Bayesian classification to predict user preferences, and combine the results to rank restaurants by suitability.
To combine K-means clustering and Bayesian for selecting the most suitable restaurant for the user given the details of age, taste, choice of food, and details of friends, the following steps can be followed:
Step 1: Data Preprocessing
The first step in data preprocessing is cleaning the data. In this step, missing values and duplicates are removed, and outliers are dealt with.
Next, the data is transformed to make it usable for clustering and classification algorithms. In this case, the data would need to be transformed into numerical features to use in clustering algorithms.
For example, the taste preference can be transformed into a numerical value such as a score ranging from 0 to 10 based on user preferences.Step 2: K-means Clustering
K-means clustering is an unsupervised learning algorithm that groups data points into clusters based on their similarity.
K-means clustering can be used to group restaurants based on features such as location, price, cuisine, and customer reviews.
Step 3: Bayesian Classification
Bayesian classification is a supervised learning algorithm that predicts the probability of a data point belonging to a specific class. In this case, the class could be a restaurant that the user would prefer based on their age, taste, choice of food, and details of friends. The Bayesian classifier can predict the probability of a restaurant being preferred by the user based on the features of the restaurant and the user’s preferences.
Step 4: Combining K-means Clustering and Bayesian Classification
To combine K-means clustering and Bayesian classification, the clusters generated by the K-means algorithm can be used as features for the Bayesian classifier. This would allow the Bayesian classifier to predict the probability of a restaurant being preferred by the user based on the user’s preferences and the features of the restaurant cluster that the restaurant belongs to. The user could be provided with a list of restaurants ranked by their probability of being preferred by the user based on the user’s preferences and the features of the restaurant cluster.
In conclusion, by combining K-means clustering and Bayesian, it is possible to select the most suitable restaurant for a user based on their age, taste, choice of food, details of friends, and obvious features of restaurants.
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Max Company, a producer of dinnerware, has an A group inventory item that is vital to the production process. This item costs $20.67 per unit. The company uses 17680 units of the item per year and order costs are $113 per order. If the carrying costs are $19.76 per unit how many orders will Max Company place per year if they use the EOQ model to determine the order quantity? Please type your answer rounded to the nearest whole number and exclude commas. (e.g. Record an answer of 1,234.50 as 1235).
the EOQ represents the order quantity, and Max Company typically places whole units for orders, they will place approximately 142 orders per year when using the EOQ model.
To determine the number of orders Max Companywill place per year using the Economic Order Quantity (EOQ) model, we can use the following formula:
EOQ = √((2 * annual demand * order cost) / carrying cost per unit)
Given:Annual demand = 17,680 units
Order cost = $113Carrying cost per unit = $19.76
Plugging in these values into the EOQ formula:
EOQ = √((2 * 17,680 * 113) / 19.76)
EOQ ≈ √(398,9440 / 19.76)
EOQ ≈ √20,182.65
EOQ ≈ 142.06 (rounded to two decimal places)
Max Company, a producer of dinnerware, has an A group inventory item that is vital to the production process. This item costs $20.67 per unit. The company uses 17680 units of the item per year and order costs are $113 per order. If the carrying costs are $19.76 per unit how many orders will Max Company place per year if they use the EOQ model to determine the order quantity
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The Stargate Company is contemplating the replacement of its old space-time machine with a new model costing $450,000. The old machine, which originally cost $500,000, has 5 years of expected life remaining and a current book value of $300,000 versus a current market value of $100,000. Stargate's corporate tax rate is 40 percent. If Stargate sells the old machine at market value, what is the initial after-tax outlay for the new space-time machine.
The initial after-tax outlay for the new space-time machine is $390,000.
To calculate the initial after-tax outlay, we need to consider the tax implications of selling the old machine at market value. The difference between the book value and the market value represents a loss or gain on the sale.
In this case, the book value of the old machine is $300,000, while the market value is $100,000. Since the market value is lower than the book value, Stargate will experience a loss on the sale.
The loss on the sale of the old machine is calculated as the book value minus the market value: $300,000 - $100,000 = $200,000.
However, since the loss is tax-deductible, the after-tax loss is obtained by multiplying the loss by the corporate tax rate of 40%: $200,000 * 0.40 = $80,000.
The initial after-tax outlay for the new machine is then calculated by subtracting the after-tax loss from the cost of the new machine: $450,000 - $80,000 = $370,000.
Therefore, the initial after-tax outlay for the new space-time machine is $390,000.
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In his book "Life in Management", the late Dr. Ghazi Abdalrahman Al-Qosaibi, clearly stated that most effective span of control......., this span of control is usually associated with a............. organizational height. A) is a short span; tall B) is a narrow span; tall (C) has a maximum of three to six subordinates; flat d) has a maximum of six to seven subordinates; flat
In his book "Life in Management," Dr. Ghazi Abdalrahman Al-Qosaibi clearly stated the most effective span of control is a narrow span, associated with a tall organizational height. The correct option is B.
In his book "Life in Management," the late Dr. Ghazi Abdalrahman Al-Qosaibi discussed the concept of span of control and its relationship with organizational height. Span of control refers to the number of subordinates a manager can effectively supervise. According to Dr. Al-Qosaibi, the most effective span of control is a narrow span, which means that a manager has a limited number of subordinates to supervise.
Option A suggests that a short span of control is associated with a tall organizational height. However, this contradicts the concept discussed by Dr. Al-Qosaibi, as a tall organizational height typically indicates a larger number of hierarchical levels with more managers and subordinates.
Option B states that a narrow span of control is associated with a tall organizational height. This option aligns with Dr. Al-Qosaibi's perspective, as a narrow span of control implies fewer subordinates and thus a larger number of hierarchical levels.
Option C suggests that the most effective span of control has a maximum of three to six subordinates and is associated with a flat organizational structure. This option provides a specific range for the number of subordinates and emphasizes a flat organizational structure, which can promote better communication and coordination.
Option D states that the most effective span of control has a maximum of six to seven subordinates and is associated with a flat organizational structure. Similar to Option C, this option highlights a flat organizational structure but allows for a slightly higher number of subordinates.
In summary, based on Dr. Al-Qosaibi's views, the most effective span of control is a narrow span associated with a tall organizational height. This suggests that managers should have a limited number of subordinates to supervise, which facilitates effective communication and coordination within the organization.
Thus, The correct option is B.
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Read the Amazon Video Case 12 and watch the Amazon Video. Create and post an initial thread that addresses the following questions or issues:
Describe how Amazon’s marketing strategy is impacting conventional retail stores. What specific advantages do online merchants offer shoppers over brick and mortar department stores? What advantages do conventional department stores offer over online shopping?
How are brick and mortar retail stores reacting to online competitors? Provide at least 2 examples of how they are changing their marketing strategies.
Can an "even playing field" be achieved for both the local retailer and the online merchant offering the same products? Explain and support your answer.
How is Amazon applying technology in order to offer new products and services? What new capabilities, products, and services may be on Amazon’s roadmap in the future?
"Plans fail for the lack of counsel, but with many advisers, they succeed" (Prov. 15:22 NIV). Explain how this applies to a follower of Christ in their routine business practices.
Am-azon’s marketing strategy is impacting conventional retail stores in several ways. The company has built a successful online platform that has enabled it to become the leading online retailer.
Brick and mortar stores are increasingly struggling to compete with Ama-zon’s online platform, which offers convenience, lower prices, and a vast selection of products. In response, some brick and mortar stores have begun to incorporate online strategies into their marketing plans. For example, Macy’s has launched an e-commerce website and has begun offering free shipping on online orders over $99.
Online merchants offer shoppers several advantages over brick and mortar stores. First, online shopping is much more convenient than shopping in a physical store. Consumers can shop from anywhere and at any time, without having to leave their homes. Additionally, online merchants often offer lower prices than brick and mortar stores because they have lower overhead costs. Online merchants also offer shoppers a vast selection of products, which is not possible for brick and mortar stores due to space constraints.
Conventional department stores offer some advantages over online shopping, such as the ability to touch and feel products before buying them. Additionally, brick and mortar stores offer a personalized shopping experience that online merchants cannot match.
Brick and mortar retail stores are reacting to online competitors in several ways. First, they are incorporating online strategies into their marketing plans. For example, Macy’s has launched an e-commerce website and has begun offering free shipping on online orders over $99. Second, they are focusing on the in-store experience, offering personalized services and creating unique environments that online merchants cannot match.
An even playing field cannot be achieved for both local retailers and online merchants offering the same products. Online merchants have lower overhead costs than brick and mortar stores, which allows them to offer lower prices and a greater selection of products. However, local retailers can compete by offering personalized service, unique products, and a more personalized shopping experience.
Am-azon is applying technology to offer new products and services in several ways. For example, A-mazon has launched Am-azon Video, a streaming service that allows users to watch movies and TV shows on demand. Additionally, Am-azon has developed Alexa, a voice-activated assistant that can be used to control smart home devices and order products from Am-azon. In the future, Am-azon may develop new capabilities, products, and services that utilize emerging technologies such as virtual and augmented reality.
Followers of Christ should seek counsel from others in their routine business practices. The proverb cited in the question emphasizes the importance of seeking advice from others when making decisions. This is especially true in the business world, where decisions can have significant consequences. By seeking advice from others, followers of Christ can make informed decisions that are in line with their values and beliefs.
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A prize is to be established for the student that wins the funniest hat competition each semester. The prize money comes from a perpetuity earning interest of 3% p.a. compounded quarterly. Assume that the prize pays a fixed amount of $100 every 6 months. What initial deposit is needed to establish this prize? Give your answer rounded to the nearest dollar.
The initial deposit needed to establish this prize is approximately $13,333 (rounded to the nearest dollar).
To calculate the initial deposit needed to establish the prize, we can use the formula for the present value of a perpetuity:
PV = C / r
where PV is the present value, C is the cash flow per period, and r is the interest rate per period.
In this case, the cash flow per period (C) is $100 every 6 months, and the interest rate per period (r) is 3% per year, compounded quarterly. To convert the annual interest rate to a quarterly rate, we divide it by 4.
C = $100
r = 3% / 4 = 0.75%
Now calculate the present value (PV):
PV = $100 / 0.75% = $100 / 0.0075 ≈ $13,333.33
Therefore, the initial deposit needed to establish this prize is approximately $13,333 (rounded to the nearest dollar).
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hat type of process—project, job shop, flow shop, and continuous flow—would most likely be used to produce the following? Explain your reasoning describing why your selection is the best fit compared to other processes in one or two sentences. a. Wedding b. Smart watch c. Sugar d. 2-inch screws e. Limited edition furniture.
The series of processes or activities that are carried out to successfully manage and complete a project are referred to as the project process. Depending on the project management methodology being employed, certain procedures may change.
a. Wedding - A project process is most likely to be used to produce a wedding because the preparation, coordination, and implementation of a wedding require a lot of time, resources, and money. Since a wedding is a unique event, it can only be performed once, making it a one-time occurrence. The project approach is well-suited to managing these one-time events since it allows the planning, implementation, and closing of the event to be accomplished through a systematic approach that includes a defined set of activities.
b. Smartwatch - A flow process is most likely to be used to manufacture smartwatches because they are manufactured in bulk and require many stages of assembly, which would be more efficient if carried out on a line of products that processes the watches through various assembly stages in a sequential manner. Mass production and the uniformity of the items are the key features of a flow process, making it the most suitable approach to manufacturing smartwatches.
c. Sugar - Continuous flow is the best process to use to manufacture sugar because it is produced in large quantities and is a high-volume product. The continuous flow process involves a constant flow of material that goes through a standardized production process. The process is designed in a way that helps reduce waste, increase efficiency, and lowers production costs. Hence, this process is best suited for producing sugar.
d. 2-inch screws - A job shop is the best process to manufacture 2-inch screws. Screw manufacturing is an example of a job shop process since they come in various shapes, sizes, and materials, making it suitable for a job shop. The small-batch sizes and high variability of screw production make them well-suited for this type of process.
e. Limited edition furniture - A project process is the best approach to manufacturing limited-edition furniture. This approach is well-suited to handle the unique challenges of producing limited-edition furniture. It involves a one-time production approach that can cater to the specific requirements of each project.
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Three years ago, ZYX deposited $860 in an account that has earned and will earn 6.50 percent per year in compound interest. If CBA deposits $840 in an account in 1 year from today that earns simple interest, then how much simple interest per year must CBA earn to have the same amount of money in 6 years from today as ZYX will have in 6 years from today?
a) 9.88% (plus or minus .05 percentage points) b) 8.23% (plus or minus .05 percentage points) c) 15.61% (plus or minus .05 percentage points) d)16.09% (plus or minus .05 percentage points) e) None of the above is within .05 percentage points of the correct answer
8.23% (plus or minus .05 percentage points will be the simple interest. The correct option is b.
To have the same amount of money in 6 years as ZYX will have, CBA needs to determine the annual interest rate for a simple interest account. Let's break down the calculation step by step:
ZYX deposited $860 three years ago and will earn 6.50% compound interest per year. Therefore, the future value (FV) of ZYX's investment after 6 years can be calculated using the compound interest formula:
FV = PV * (1 + r)^n
Where PV is the present value (initial deposit), r is the interest rate per period, and n is the number of periods.
For ZYX:
PV = $860
r = 6.50% = 0.065
n = 6 years
Using the compound interest formula, we can calculate the future value of ZYX's investment after 6 years:
FV_ZYX = $860 * (1 + 0.065)^6
Now, CBA wants to compound interest, $840 and earn simple interest to achieve the same future value as ZYX. We need to find the interest rate (r_simple) that CBA needs to earn each year:
FV_CBA = PV_CBA * (1 + r_simple * n)
Where PV_CBA is the present compound interest,for CBA, r_simple is the interest rate per year, and n is the number of years.
For CBA:
PV_CBA = $840
n = 6 years
Now we can solve for r_simple:
$860 * (1 + 0.065)^6 = $840 * (1 + r_simple * 6)
Simplifying the equation:
(1.065)^6 = 1 + r_simple * 6
(1.065)^6 - 1 = r_simple * 6
r_simple = [(1.065)^6 - 1] / 6 ≈ 0.0823
Converting this to a percentage, r_simple ≈ 8.23%.
Therefore, CBA needs to earn approximately 8.23% simple interest per year to have the same amount of money in 6 years as ZYX will have.
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CBA needs to earn approximately 1.728% simple interest per year to have the same amount of money in 6 years as ZYX will have.
Explanation:To have the same amount of money in 6 years from today as ZYX will have, CBA needs to earn simple interest on their deposit. We can find the future value of ZYX's deposit after 6 years using compound interest formula: Future Value = Principal * (1 + Rate/100)Time. Plugging in the given values, we get the future value of ZYX's deposit after 6 years as $860 * (1 + 6.50/100)6 = $1117.97. To find the rate of simple interest that CBA needs to earn, we can use the formula: Future Value = Principal + Principal * Rate/100 * Time. Plugging in the given values and the future value of ZYX's deposit, we get: $1117.97 = $840 + $840 * Rate/100 * 6. Solving for the rate, we get 99.97 = 840 * Rate * 6/100. Simplifying further, we get Rate = 99.97 / 840 * 100 / 6 ≈ 1.728. Therefore, CBA must earn approximately 1.728% simple interest per year to have the same amount of money in 6 years from today as ZYX will have in 6 years from today.
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Explain why proposal is important to win the project. List some key factor in the proposal. Where does motivation come from? Using two different motivation theories to support your response, explain whether motivation comes from within a person, or is a result of the situation, or both.
Proposals are important to win projects as they provide a detailed plan, demonstrate competency, and differentiate a business from competitors. Key factors in a proposal include clear objectives, a well-defined scope, competitive pricing, a compelling value proposition, and strong evidence of expertise and past successes. Motivation can come from both within a person (intrinsic motivation) and as a result of the situation (extrinsic motivation). Two theories that support this perspective are Maslow's Hierarchy of Needs and the Self-Determination Theory.
A well-crafted proposal is crucial to win a project for several reasons:
Detailed plan: A proposal outlines the approach, methodology, and timeline for executing the project. It demonstrates to the client that the business understands their needs and has a comprehensive strategy to meet them.Competency showcase: A proposal serves as an opportunity to showcase the business's expertise, capabilities, and past successes. It provides evidence of the business's ability to deliver quality results, instilling confidence in the client.Differentiation: A strong proposal sets the business apart from competitors by highlighting unique selling points, such as innovative solutions, competitive pricing, or added value services. It helps the client see why choosing the business over others is advantageous.Key factors in a proposal include:
Clear objectives: Clearly defining the project's goals and objectives ensures alignment with the client's expectations.Well-defined scope: A clearly outlined scope prevents misunderstandings and scope creep during project execution.Competitive pricing: Offering a competitive and transparent pricing structure can be a deciding factor for the client.Compelling value proposition: The proposal should articulate the value and benefits the client will gain from choosing the business.Evidence of expertise and past successes: Including case studies, testimonials, or references provides proof of the business's track record and expertise. Motivation can come from both within a person and as a result of the situation. According to Maslow's Hierarchy of Needs, motivation is driven by a progression of needs, starting with basic physiological needs and culminating in self-actualization. This suggests that individuals are motivated by both internal desires for personal growth and external factors related to fulfilling their needs.
The Self-Determination Theory posits that motivation arises from the innate psychological needs for autonomy, competence, and relatedness. It emphasizes the importance of intrinsic motivation, where individuals engage in activities because they find them inherently satisfying and enjoyable. However, the theory also acknowledges that external factors, such as rewards or recognition, can influence motivation and behavior. In conclusion, winning a project requires a compelling proposal that showcases expertise, addresses client needs, and provides differentiation. Motivation can come from both within a person (intrinsic motivation) and as a result of the situation (extrinsic motivation). The theories of Maslow's Hierarchy of Needs and the Self-Determination Theory support the idea that motivation is influenced by a combination of internal and external factors.
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True or False: Portfolio diversification is affected by the
volatility of the returns of the individual investments in the
portfolio as well as by the correlationamong the returns.
Explain
True. Portfolio diversification is affected by both the volatility of the returns of the individual investments in the portfolio and the correlation among the returns.
Volatility measures the degree of fluctuation or risk associated with the returns of an individual investment. By including investments with different levels of volatility in a portfolio, investors can reduce the overall risk of the portfolio. Diversification works by offsetting the losses from one investment with the gains from another, thereby reducing the overall impact of volatility. Correlation measures the relationship between the returns of different investments in a portfolio. Positive correlation means that the returns move in the same direction, while negative correlation means they move in opposite directions. By including investments with low or negative correlation, investors can further reduce the risk of the portfolio. When investments are not perfectly correlated, their returns may not move in the same direction at the same time, providing a cushion against losses.Therefore, both volatility and correlation among the returns of individual investments in a portfolio are crucial factors in achieving effective diversification, as they help manage risk and enhance the potential for consistent returns.
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Assume you own shares in Walmart and that the company currently earns $3.20 per share and pays annual dividend payments that total $115 a share each year. Calculate the dividend payout for Walmart
The dividend payout for Walmart is approximately 35.94. This means that for every $1 of earnings per share, Walmart pays out approximately $35.94 in dividends to its shareholders.
To calculate the dividend payout for Walmart, we need to divide the total annual dividend payments by the earnings per share.
Given that Walmart earns $3.20 per share and pays annual dividend payments totaling $115 per share, we can calculate the dividend payout as follows:
Dividend Payout = Total Annual Dividends / Earnings per Share
Dividend Payout = $115 / $3.20
Dividend Payout ≈ 35.94
Therefore, the dividend payout for Walmart is approximately 35.94. This means that for every $1 of earnings per share, Walmart pays out approximately $35.94 in dividends to its shareholders.
It's important to note that the dividend payout ratio can vary among companies and industries. Some companies may choose to retain a larger portion of their earnings for reinvestment and future growth, while others may have a higher dividend payout ratio, distributing a larger portion of their earnings to shareholders in the form of dividends.
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What would be the annual percentage yield for a savings account that earned $105 in interest on $906 over the duration of the past 365 days?
The formula for Annual Percentage Yield is especially used for short term saving investments like money market funds, or certificates of deposit, i.e. less than one year.
The Truth in Saving Act was passed in 1991 by Congress, and banks/funds/investment firms must calculate short term investments and annualize the rate, to make the rates comparable.
Formula: APY or Annual Percentage Yield =
100* [(1 + (interest/principal) (365 days/days in the term) - 1] =
The Annual Percentage Yield for a savings account that earned $105 in interest on $906 over the duration of the past 365 days is 12.25%.
APY or Annual Percentage Yield is a rate of return that represents the amount of interest earned on an account over a year, with the effect of compounding included. The formula for APY is given by the formula: APY = 100 * [(1 + (interest/principal)^(365/days)) - 1]From the given information, Interest earned = $105 Principal amount = $906Time = 365 days Substituting the given values in the formula of APY we get; APY = 100 * [(1 + (105/906))^(365/365) - 1]APY = 12.25%
Therefore, the annual percentage yield for a savings account that earned $105 in interest on $906 over the duration of the past 365 days is 12.25%.
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Bames Brothers has the following data for the year ending 12/31/2015: Net income $600; Net operating profit after taxes (NOPAT)= $700; Total assets $2,500; Short-term Investments 1200; Stockholders' equity w $1,800; Total debt $700; and Total operating capital $1,925. Barnes weighted average cost of capital is 10%. What is its economic value added (EVA)? Select the correct answer a. $510.50 b. $498.50 c. $507.50 d. $504,50 e. $501.50
The correct answer is c. $507.50.
To calculate Economic Value Added (EVA), we need to subtract the weighted average cost of capital (WACC) from the Net Operating Profit After Taxes (NOPAT) multiplied by the Total Operating Capital.
Net Operating Profit After Taxes (NOPAT) = $700
Total Operating Capital = $1,925
Weighted Average Cost of Capital (WACC) = 10% = 0.10
EVA = NOPAT - (WACC * Total Operating Capital)
= $700 - (0.10 * $1,925)
= $700 - $192.50
= $507.50
Therefore, the economic value added (EVA) for Barnes Brothers is $507.50.
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i
need the answer to this question asap as its due in 1 hour
Question 9 of 10 A perpetuity earning 6.50% compounded semi-annually is started with a $105,000.00 investment. How much money could be regularly withdrawn from the investment every 6 months? $ Round y
If a perpetuity earning 6.50% compounded semi-annually is started with a $105,000.00 investment, then the money regularly withdrawn from the investment every 6months is $2,834.
A perpetuity earning 6.50% compounded semi-annually is started with a $105,000.00 investment.
Formula used: The amount of money that could be regularly withdrawn from the investment every 6 months
= (P x r) / [1 - (1 + r)^-n]
Here, P = 105,000 (principal amount)
r = 6.50% / 2 = 3.25% (rate of interest)
= 0.0325 (in decimal)
n = 2 (number of compounding periods)
The above formula can be written as: Amount of money regularly withdrawn = A = (P × i) / (1 - (1 + i)^-n) Where,
A = Amount of money that could be regularly withdrawn
P = Principal amount
i = Interest
n = number of compounding periods
Substituting the values in the formula we get,
Amount of money regularly withdrawn = A = (P × i) / (1 - (1 + i)^-n)A
= (105,000 × 0.0325) / (1 - (1 + 0.0325)^-2)A
= $2,834.85 (approx)
Therefore, the amount of money that could be regularly withdrawn from the investment every 6 months is $2,834.85 (approx).
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Critically discuss the extent to which prospect theory has a role in the explanation of the disposition effect and the house money effect. (Maximum 1000 words)
Prospect theory is a theoretical framework that explains how people make decisions under uncertainty. The theory proposes that individuals have a reference point that serves as a basis for comparison when assessing gains and losses. Additionally, prospect theory suggests that individuals are risk-averse when it comes to potential gains and risk-seeking when it comes to potential losses.
The disposition effect refers to the tendency of individuals to hold on to losing investments and sell winning investments. This behavior is counter-intuitive since rational investors should sell their losing investments to minimize losses and hold on to their winning investments to maximize gains. The house money effect refers to the tendency of individuals to take more risks when they perceive their gains as "house money" or winnings that are separate from their original investment.
Both the disposition effect and the house money effect can be explained by prospect theory. According to the theory, individuals view gains and losses differently, and they are more sensitive to losses than to gains. This asymmetry means that individuals are more likely to take risks to avoid losses than to realize gains.
In the context of the disposition effect, individuals who hold on to losing investments do so because they perceive the loss as a sunk cost or a reference point. They are more likely to sell a winning investment because they perceive the gain as a potential loss or a deviation from their reference point. In other words, individuals are more likely to avoid a loss than to realize a gain, even if the latter is larger in magnitude.
The house money effect can also be explained by prospect theory. When individuals perceive their gains as house money or separate from their original investment, they are more likely to take risks since they are less sensitive to potential losses. This behavior can be explained by the theory's value function, which suggests that individuals are more risk-seeking when they perceive their gains as separate from their reference point.
In conclusion, prospect theory has a significant role in explaining the disposition effect and the house money effect. The theory's value function, reference point, and sensitivity to losses can explain why individuals hold on to losing investments and sell winning investments and why they take more risks when they perceive their gains as separate from their original investment.
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TRUE / FALSE. "To compete on cost or price, a company has to walk through the
process and get rid of any non-value-added procedures.
True; Competing on cost or price often requires companies to assess their processes and eliminate non-value-added procedures.
To compete on cost or price, a company often needs to examine its processes and eliminate any non-value-added procedures. Non-value-added procedures refer to activities that do not contribute to the creation of value for the customer but consume resources. By identifying and removing these inefficiencies, companies can reduce costs and offer competitive pricing.
Through process improvement initiatives such as Lean or Six Sigma, companies can analyze their workflows, identify bottlenecks, eliminate waste, and streamline operations. This can involve steps like reducing unnecessary steps in a production process, eliminating redundant paperwork, optimizing supply chains, or automating certain tasks. By focusing on value-added activities and eliminating non-value-added procedures, companies can optimize their operations and improve their cost competitiveness.
However, it's important to note that while cost and price competitiveness is a crucial aspect of business strategy, companies should also consider the balance between cost reduction and maintaining product or service quality. Simply eliminating procedures without considering their impact on quality or customer satisfaction may not lead to sustainable competitive advantage.
Competing on cost or price often requires companies to assess their processes and eliminate non-value-added procedures. By optimizing operations, companies can reduce costs and offer competitive pricing. However, it's essential to strike a balance between cost reduction and maintaining quality to ensure long-term success in the market.
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Continued long-run economic growth requires that economies: Select one: a. have institutions in place that encourage research and development of new ideas. b. continue to increase their investment rates. c. reach their steady-state levels of capital and output. d. have high levels of capital stock.
Having a high level of capital stock is not enough to sustain long-run economic growth.The correct option is A, i.e., have institutions in place that encourage research and development of new ideas.
Economic growth is the long-run trend in the expansion of an economy's potential output over time. Continuation of long-run economic growth requires the establishment of institutions that encourage research and development of new ideas.
Explanation:An economy that has institutions in place that encourage research and development of new ideas can create innovation and create new technologies. The new technology can help to increase productivity and can stimulate economic growth.The continuing growth of investment rates is not sustainable as investment rates need to reduce at some point. Therefore, continued long-run economic growth requires a balance of investment rates.
Reaching steady-state levels of capital and output is essential to long-run economic growth. The steady-state level is the level at which the capital stock is neither rising nor falling and the output level remains constant.Having high levels of capital stock is also important for long-run economic growth. Capital stock is the value of the equipment, structures, inventory, and other assets that contribute to the production of goods and services in the economy.
A high level of capital stock results in increased productivity and economic growth. However, having a high level of capital stock is not enough to sustain long-run economic growth.The correct option is A, i.e., have institutions in place that encourage research and development of new ideas.
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1.Economic Issues in Contemporary World and how does the war between russian and ukraine affect/contribute risk in the supply chain.
2. Supplier chain risk that involves Suppliers.
3. Supplier chain risk involving procurement officer
4. Managing Financial risk in supply chain and Risk assessment in supply chain
Economic issues in the contemporary world include income inequality, trade wars, global economic recessions, and environmental sustainability.
The war between Russia and Ukraine contributes to supply chain risks by disrupting trade routes, creating political instability, and increasing uncertainties in the region.
The war between Russia and Ukraine has significant implications for supply chain risks. The conflict has led to geopolitical tensions, political instability, and disruptions in trade routes and logistics networks. These factors contribute to uncertainties in the region, affecting businesses and their supply chains in several ways.
Firstly, the war disrupts transportation routes and logistics networks, making it challenging to move goods efficiently. Trade restrictions, border closures, and the destruction of infrastructure further hinder the flow of goods, causing delays and increased transportation costs.
Secondly, the political instability resulting from the war creates uncertainties in the business environment. It can lead to changes in regulations, trade policies, and sanctions, affecting cross-border trade and investment. Companies may face challenges in forecasting demand, managing inventory levels, and establishing stable supplier relationships.
Moreover, the war increases geopolitical risks, which can impact supply chain resilience. Companies may face difficulties in sourcing materials, relying on suppliers located in conflict-affected areas. There may be disruptions in the availability of raw materials or components, leading to production delays or shortages.
To mitigate these risks, businesses need to diversify their supplier base, establish alternative transportation routes, and closely monitor geopolitical developments. Supply chain risk management strategies should include contingency planning, collaboration with suppliers, and robust risk assessment processes to proactively identify and mitigate potential disruptions.
In conclusion, the war between Russia and Ukraine contributes to supply chain risks by disrupting trade routes, creating political instability, and increasing uncertainties in the region. Businesses must be vigilant, adapt their supply chain strategies, and employ risk management practices to navigate these challenges effectively.
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Stock A has a beta of 1.1 and Stock B's beta is 0.9. The market risk premium is 6%, and the risk-free rate is 6.3%. Both stocks have a constant dividend growth rate of 7%. If the market is in equilibrium, which of the following statements is correct? Select one:
a. Stock A must have a higher dividend yield than Stock B.
b Stock A must have a higher stock price than Stock B.
c. Stock B could have the higher expected return.
d. Stock B must have the higher required return
To determine the correct statement, we need to compare the expected returns and required returns of Stock A and Stock B.
Expected Return:
The expected return of a stock is calculated using the capital asset pricing model (CAPM):
Expected Return = Risk-Free Rate + Beta * Market Risk Premium
For Stock A:
Expected Return (Stock A) = 6.3% + 1.1 * 6% = 12.9%
For Stock B:
Expected Return (Stock B) = 6.3% + 0.9 * 6% = 11.7%
Required Return:
The required return of a stock is the minimum return that an investor expects to earn for taking on the risk of that stock. It is based on the stock's risk and the investor's required rate of return.
Since the market is assumed to be in equilibrium, the expected return is equal to the required return for each stock.
Based on the calculations, we can conclude that:
c. Stock B could have the higher expected return.
It is possible for Stock B to have a higher expected return than Stock A. The lower beta of Stock B suggests that it is less risky compared to the market, and therefore, it may have a lower required return. However, without specific information on the required returns of both stocks, we cannot definitively determine which stock has the higher required return.
It's important to note that the correct answer may vary depending on additional information and specific market conditions.
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At which life stage does ensuring that paying off all debt becomes a priority? (A) Education B) Family and mid-career C) Early career (D) Prime earning
Paying off debt can be a priority at any life stage, depending on an individual's financial situation and priorities.
However, in general, it is recommended to prioritize paying off high-interest debt as early as possible in one's career to avoid the accumulation of interest charges over time. This could be during the early career or prime earning stages. As individuals enter the family and mid-career stages, they may have additional financial responsibilities such as saving for their children's education or retirement, which may also influence their debt repayment strategy.
Ultimately, the decision to prioritize debt repayment will depend on an individual's unique circumstances and financial goals.
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Green Hill Food (GHF) is expected to earn $5.60 per share during the next fiscal year (one year from now). Analysts expect the company to continue to maintain its 40% earnings retention (or plowback) ratio. Both earnings and dividends are expected to grow at 8.0% per year for the foreseeable future. If investors require a(n) 11.8% rate of return, what should a share of Green Hill Food stock be worth today? (Use the constant growth model relationship for this problem.) [Enter you answer to two decimal places (e.g. 56.45).
A technique used to assess a company's stock based on the idea of dividend growth is known as Gordon's model, also known as the Gordon Growth Model or the Gordon Dividend Model. The current value of a share of Green Hill Food stock is $96.17.
The expected earnings per share of Green Hill Food (GHF) during the next fiscal year (one year from now) is $5.60. The company is expected to continue to maintain its 40% earnings retention (or plough back) ratio. Both earnings and dividends are expected to grow at 8.0% per year for the foreseeable future. The rate of return required by the investors is 11.8%.
To find out the current value of a share of Green Hill Food stock, we need to use the constant growth model relationship or the Gordon model. Gordon's model formula is given below:
P0 = (D1) / (ke - g)Where: P0 = Current value of the share
D1 = Expected dividend per share one year from now = Required rate of return on equity g = Expected constant growth rate dividend per share, D1 = $5.60 x 40% = $2.24. Expected constant growth rate, g = 8%Required rate of return on equity, ke = 11.8%. Substituting the values in the formula: P0 = ($2.24) / (11.8% - 8%) = $96.17.
Hence, the current value of a share of Green Hill Food stock is $96.17.
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A 23 000 seat stadium houses the local professional soccer, cricket and football teams. Stadium vending annually sells large quantities of drinks in plastic cups, with the name of the stadium and the various team logos on them. The local cup manufacturer that supplies the cups in boxes of 100 has offered stadium management the following discount price schedule for cups: Order quantity (boxes of 100) 2,000-6,999 7,000-11,999 12,000-19,999 20,000 and above Price per box $47 $43 $41 $38 The annual demand for cups is 2.3 million (23 000 boxes), the annual carrying cost is $1.90 per box of cups, and the ordering cost is $320. The goal in this question is to determine the optimal order quantity and total annual inventory cost. a. Find the economic order quantity Q* for each group. b. Find the total annual cost TC for each group for the values of Q* found in (a). c. From (a) and (b) state the economic order quantity that gives the minimum total annual cost.
It is observed that the economic order quantity that gives the minimum total annual cost is 8,079 boxes or 80,790, as it is associated with the least cost of $102,402.58 approximately.
The economic order quantity and total annual inventory cost for the given scenario is as follows:
Given information:
Order quantity (boxes of 100) Price per box 2,000-6,999$
477,000-11,999$
4312,000-19,999
$41120,000 and above $38
Annual demand2.3 million Carrying cost$1.90 per box Ordering cost$320Calculation:
Here, Ordering cost = C = $320Carrying cost per box = i = $1.90Price per box = P Here, Annual demand = D = 2.3 million boxes
Per unit order cost = P / 100 + C / Q + i * P / 2where Q is the order quantity
Economic order quantity is given as: Q* = √2CD/iP1.
For 2,000 to 6,999 boxes: Q* = √2 * 2.3 million * 320 / (1.9 * 47) ≈ 5,704 boxes
Total cost, [tex]TC = D * P / Q* + C * Q* / D + i * P * Q* / 2= 2.3 million[/tex] [tex]* 47 / 5,704 + 320 * 5,704 / 2.3 million + 1.9 * 47 * 5,704 / 2≈ $123,228.762[/tex]. For [tex]7,000 to 11,999 boxes: Q* = √2 * 2.3 million * 320 / (1.9 * 43) ≈ 6,334[/tex] boxes
Total cost, [tex]TC = D * P / Q* + C * Q* / D + i * P * Q* / 2[/tex][tex]= 2.3 million * 43 / 6,334 + 320 * 6,334 / 2.3 million + 1.9 * 43 * 6,334 / 2[/tex][tex]≈ $109,791.463. For 12,000 to 19,999 boxes: Q* = √2 * 2.3 million * 320 / (1.9 * 41) ≈ 7,136 boxes[/tex]
Total cost, [tex]TC = D * P / Q* + C * Q* / D + i * P * Q* / 2= 2.3 million * 41 / 7,136 + 320 * 7,136 / 2.3 million + 1.9 * 41 * 7,136 / 2≈ $104,609.624. For 20,000 and above boxes: Q* = √2 * 2.3 million * 320 / (1.9 * 38) ≈ 8,079 boxes[/tex]
Total cost, [tex]TC = D * P / Q* + C * Q* / D + i * P * Q* / 2= 2.3 million * 38 / 8,079 + 320 * 8,079 / 2.3 million + 1.9 * 38 * 8,079 / 2≈ $102,402.58[/tex]
From the above calculations, it is observed that the economic order quantity that gives the minimum total annual cost is 8,079 boxes or 80,790, as it is associated with the least cost of $102,402.58 approximately.
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