The statement "Whenever you read a CPI inflation figure, remember that actual inflation is higher, because CPI understates inflation." is usually true because it employs a basket of goods that does not precisely reflect the items that consumers buy every day. It is essential to keep in mind that CPI is a rough indicator of inflation, and the actual cost of living may vary depending on various personal variables.
The Consumer Price Index (CPI) is a widely used measure of inflation that tracks the average price change of a basket of goods and services consumed by households. However, there are some limitations to the CPI that can lead to an understatement of actual inflation:
Substitution bias: The CPI assumes that consumers do not change their consumption patterns in response to price changes. In reality, when the price of a particular good or service increases, consumers may substitute it with a cheaper alternative. The CPI does not fully account for this substitution behavior, which can lead to an understatement of inflation.Quality changes: The CPI does not always capture improvements in the quality of goods and services over time. If the quality of a product improves while its price remains the same, the CPI may not fully reflect the increased value received by consumers. This can result in an understatement of inflation.New products and outlets: The CPI may not adequately capture the introduction of new products or changes in the way goods and services are purchased. As new products enter the market or consumers shift their shopping preferences to different outlets, the CPI may not fully account for these changes, leading to a potential understatement of inflation.Overall, while the CPI is a useful indicator of inflation, it is important to recognize its limitations and understand that actual inflation may be higher than what is reported by the CPI.
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QUESTION 3 Psychological contracts are based on: trust commitment need satisfaction loyalty All of the answers listed Hygiene factors are part of the theory of motivation. two-factor equity expectancy goal-setting need QUESTION 5 Providing recognition to employees for significant achievements at work would help satisfy their needs. self-actualization esteem belonging and love Osafety and security physiological 00
3. The correct option is "All of the answers listed."Psychological contracts are based on trust, commitment, need satisfaction, and loyalty. This means that they are composed of many aspects that can be found in various categories.
For instance, trust and commitment belong to the loyalty category, while need satisfaction has to do with the need satisfaction category. All the choices listed are necessary elements that make up a psychological contract.
5. The correct option is "self-actualization, esteem, belonging and love."Providing recognition to employees for significant achievements at work would help satisfy their needs. Maslow's theory of motivation outlines the various needs that people have.
According to Maslow, there are five levels of needs: physiological, safety and security, belonging and love, esteem, and self-actualization. When employees are recognized for their achievements, their esteem and self-actualization needs are satisfied, which results in them feeling fulfilled and valued.
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TRUE / FALSE. 1. Payment from negotiating bank under a L/C is final and cannot be reclaimed.
2. If a credit is subject to UCP 600 and doesn't indicate whether it is irrevocable
or not, it is a revocable L/C.
3. A draft showing "Pay to Mary White and debit my No.2 account" represents
an unconditional order to pay.
4. Once a draft is accepted, its primary debtor is changed from drawer to acceptor.
5. An uncrossed cheque implies that the cheque amount should be paid into a bank account and can not be exchanged for cash over the counter.
6. For a confirmed credit, the confirming bank holds the same liability as the issuing bank.
7. If the remittance is made by a banker's demand draft, this payment is based on bank credit.
8. The drawer of the draft used under L/C is generally the issuing bank.
9."Dishonor"means the refusal to the acceptance or payment of a duly presented draft.
10. In L/C, the advising bank is responsible for examining the documents presented by the beneficiary.
TRUE / FALSE are as follows:
1. Payment from negotiating bank under a L/C is final and cannot be reclaimed.True
2. If a credit is subject to UCP 600 and doesn't indicate whether it is irrevocable or not, it is a revocable L/C.False
3. A draft showing "Pay to Mary White and debit my No.2 account" represents an unconditional order to pay.False, A draft showing "Pay to Mary White and debit my No.2 account" represents a conditional order to pay.
4. Once a draft is accepted, its primary debtor is changed from drawer to acceptor.True
5. An uncrossed cheque implies that the cheque amount should be paid into a bank account and cannot be exchanged for cash over the counter.False
6. For a confirmed credit, the confirming bank holds the same liability as the issuing bank.True
7. If the remittance is made by a banker's demand draft, this payment is based on bank credit.True
8. The drawer of the draft used under L/C is generally the issuing bank.False
9. "Dishonor" means the refusal to the acceptance or payment of a duly presented draft.True
10. In L/C, the advising bank is responsible for examining the documents presented by the beneficiary.False
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As restrictions for Covid-19 have eased and businesses are opening at some point people will again go out to dinner. When evaluating different alternatives for a Saturday night outing at a fine restaurant, explain the difference between the Universal set, The Retrieval set, and the evoked set. Then explain from which set of alternatives would you choose a restaurant to go to and why.
When deciding to choose a restaurant to dine out at, it is essential to consider all three sets. However, the Evoked set should be the primary consideration because it comprises alternatives that the individual considers before making a decision.
When evaluating different alternatives for a Saturday night outing at a fine restaurant, there are three types of sets that must be taken into account. These are the Universal set, the Retrieval set, and the Evoked set.Difference between Universal set, Retrieval set, and Evoked setUniversal setThe Universal set refers to all the options or choices that are accessible for a given decision. This set is limitless and extensive in terms of options, but only a few are usually feasible.
The Universal set, in this context, refers to all restaurants available in the area or nearby locations.Retrieval setThe Retrieval set refers to the group of options or alternatives that come into the individual's mind immediately. This set is made up of things that are readily accessible from memory and come to mind quickly. For example, this can be the group of restaurants that the individual usually dines out, or restaurants that are nearby to the individual's location.
Evoked setThe Evoked set refers to the subset of alternatives that the individual considers before making a decision. This set is typically a selection of options from the Retrieval set that appears to be appealing to the individual. The evoked set may include the individual's favorite restaurant or restaurants that the individual has read about or heard from friends. These alternatives are selected from the Retrieval set, which consists of items that come to the individual's mind effortlessly.
The Evoked set involves the individual's past experiences, preferences, and values; thus, it comprises a group of options that are most likely to satisfy the individual's expectations. Additionally, it is essential to take into account the individual's budget and the location of the restaurant to ensure that it is feasible. Therefore, when choosing a restaurant, the evoked set should be the primary focus.
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An unrealized holding gain or loss on a trading debt investment is the difference between the investment's
A. Face value and original cost
B. Face value and amortized cost
c. Fair value and amortized cost
D.Fair value and original cost
An unrealized holding gain or loss on a trading debt investment is the difference between the investment's fair value and amortized cost. Therefore, the correct answer is option (C).
An unrealized holding gain or loss is an increase or decrease in the fair value of a security held by a company but not yet sold.
When a company buys securities such as stocks, bonds, or mutual funds, it expects to earn money from them either through income from dividends, interest, or price appreciation that allows them to sell the securities for more than they paid for them. Holding gains or losses may arise as a result of fluctuations in the market value of an investment held by a firm.
Therefore, c is correct.
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You are considering an investment opportunity that requires an initial investment of $159 million in period 0. Starting in one year, it will generate $12.1 million per year in perpetuity (i.e. every y
NPV is positive, the investment is profitable. If NPV is negative, the investment should be rejected. If NPV is zero, the investment is neither profitable nor unprofitable.
The net present value (NPV) of an investment is a popular metric used to assess the value of an investment opportunity. The concept of NPV is based on the idea that a dollar today is worth more than a dollar in the future because the dollar today can be invested and earn a return. Therefore, the present value of a future cash flow must be discounted to account for the time value of money.
The calculation of the net present value of the investment is:NPV = PV of cash inflows - PV of cash outflowsPV of cash outflows = $159 million PV of cash inflows = $12.1 million/ (r-g) where r is the discount rate and g is the annual growth rate of cash flowsAfter calculating the PV of the cash inflows and outflow
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All else equal, which of the following would reduce the value of the multiplier for an economy? Select one: O An increase in the marginal propensity to import O b. An increase in the marginal propensi
The option that would reduce the value of the multiplier for an economy is an increase in the marginal propensity to import (option a).
In economics, the multiplier is a factor that quantifies the effect of an increase in the autonomous spending on total spending. It is calculated as the ratio of the change in the equilibrium level of national income to a change in autonomous expenditure.
An increase in the marginal propensity to import will reduce the value of the multiplier for an economy since it will increase the import of goods and services. This will, in turn, decrease the level of aggregate demand and the overall spending. Therefore, the multiplier will be reduced because an increase in the marginal propensity to import would reduce the amount of new spending that is injected into the economy. The correct option is an increase in the marginal propensity to import.
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You are asked to audit a project on Patient Life Cycle Management in a reputed hospital . How will you conduct the audit and what data you would like to collect during the audit process?
The series of actions an auditor must take in order to complete an audit engagement with a client is known as the audit process. The nature of the audit engagement will determine the particular steps that must be taken.
An audit of a project on Patient Life Cycle Management in a reputable hospital requires the following steps to be followed:-
The first stage of an audit is to identify the objectives and scope of the audit. This stage will entail the use of patient life cycle management to identify areas of concern.
The second step is to collect and analyze data. In this phase, auditors will use a wide range of techniques to gather and examine data that will aid them in making assessments. The objective of data analysis is to recognize any significant variations, anomalies, or irregularities. It is also necessary to determine the root causes of the anomalies observed and to assess their implications. The auditors must analyze the data they have gathered for accuracy and completeness.
The third step is to assess the hospital's internal control systems. During the audit, auditors may investigate hospital procedures and processes for identifying, evaluating, and responding to internal control hazards. As a result, auditors should evaluate the adequacy of internal controls and recommend modifications where necessary. The objective of this process is to ensure that the internal control system is sufficient and effective.
Finally, the audit report is prepared. After collecting data, assessing internal control systems, and conducting any additional testing, the audit report is written. The audit report should be concise and professional, outlining the audit's objectives, methodology, and findings. Recommendations for changes should be included in the report, as well as follow-up action that will be required to address the findings.
The data that will be collected during the audit process will include the following:-
Patient Information: The records of the patients have to be checked, analyzed, and ensure that the information is kept confidential.
Patient Safety: The hospital must ensure patient safety, and its policies should be in line with the healthcare requirements.
Patient Services: The audit must examine the services provided to patients in the hospital in terms of quality, safety, and effectiveness.
Patient Medical Records: The medical records must be checked to ensure they contain accurate information and are maintained as required.
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To analyze the sources of specific risk, IBM uses sensitivity analysis to determine the impact of different market risk exposures on the fair value of the company's assets. What kind of financial instruments are included in this sensitivity analysis?
The kind of financial instruments are included in this sensitivity analysis are - Equity Instruments, Interest Rate Instruments, Currency Instruments, Commodities instruments, and Derivative Instruments is the answer.
Sensitivity analysis is an important tool used by IBM to identify and analyze the various sources of specific risk, which affect its business operations. This tool helps in determining the impact of different market risk exposures on the fair value of the company's assets. It identifies the specific risks that impact IBM's financial position and assists in developing effective risk management strategies.
Financial instruments that are included in sensitivity analysis are as follows:
Equity Instruments: This financial instrument includes stocks, common shares, and preferred stocks. These are highly volatile and subject to fluctuations due to market conditions. They are the most important sources of financial risk that are included in sensitivity analysis.
Interest Rate Instruments: These financial instruments include bonds, bills, and other interest rate-sensitive instruments. They are subject to fluctuations in interest rates and can result in changes in the value of IBM's assets.
Currency Instruments: These financial instruments include foreign exchange rates, and their fluctuations can impact IBM's assets' value.
Commodities instruments: Commodities like gold, oil, and other precious metals can be included in this financial instrument. Changes in their prices can lead to a change in the value of the company's assets.
Derivative Instruments: These financial instruments include futures, options, swaps, and other financial contracts. They are highly sensitive to changes in market conditions and can impact the value of IBM's assets.
Thus, these are the financial instruments included in sensitivity analysis to determine the impact of different market risk exposures on the fair value of the company's assets.
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Consider that your firm participates in a highly competitive market for a homogeneous good that is currently in equilibrium. The market price is $30. All the firms have identical cost structures and the market quantity is 35,000 units per month. Your firm currently pays $5000 per month for its production facility and it is maximizing its profit from the sale of this good. In addition, your firm's cost structure is described by the following equations: AVC=2+0.05q and MC = 2 + 0.1q
How many units is your firm currently producing?
To determine the number of units your firm is currently producing, we need to find the quantity at which marginal cost (MC) equals market price (P). In equilibrium, firms produce where MC equals the market price to maximize their profits.
Given:
Market price (P) = $30
Cost structure:
AVC = 2 + 0.05q (Average Variable Cost)
MC = 2 + 0.1q (Marginal Cost)
To find the quantity, we set MC equal to P and solve for q:
MC = P
2 + 0.1q = 30
Subtract 2 from both sides:
0.1q = 28
Divide by 0.1:
q = 280
Therefore, your firm is currently producing 280 units.
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which are the three main reasons firms make acquisitions? multiple select question. to increase potential for legal repercussions to preempt rivals to gain access to new distribution channels and markets to reduce flexibility to gain access to a new capability or competency
The three main reasons firms make acquisitions are To preempt rivals, To gain access to new distribution channels and markets, To gain access to a new capability or competency.
1. To preempt rivals: Acquiring a company can be a strategic move to prevent competitors from gaining an advantage. By acquiring potential competitors or companies operating in a similar market space, a firm can consolidate its position, strengthen its market share, and create barriers to entry for rivals.
2. To gain access to new distribution channels and markets: Acquisitions allow firms to expand their reach and access new customer segments by acquiring companies with established distribution networks or entering new geographic markets. This strategic move enables faster market penetration and growth by leveraging the existing customer base and distribution channels of the acquired company.
3. To gain access to a new capability or competency: Acquiring a company can provide access to valuable resources, technologies, or expertise that the acquiring firm may not possess internally. By acquiring a company with a specific capability or competency, a firm can enhance its own competitive advantage, accelerate innovation, or enter new product or service segments.
To be clear, the other options mentioned, such as increasing potential for legal repercussions and reducing flexibility, are not the primary reasons firms make acquisitions. The focus is primarily on gaining a competitive edge, expanding market presence, and accessing new capabilities or distribution channels.
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a) Illustrate and explain the Gross Domestic Product (GDP) and unemployment for Malaysia for the years 2018-2021 using graphs. b) Identify the macroeconomic problems that Malaysia is currently facing and discuss how the Malaysian government and Bank Negara Malaysia can mitigate the identified macroeconomic problems.
a) Malaysia's macroeconomic problems include the impact of the COVID-19 pandemic, income inequality, and environmental challenges. The Gross Domestic Product (GDP) and unemployment trends for Malaysia from 2018-2021 can be illustrated using graphs to visualize the economic performance and labor market conditions during this period.
b) To address these macroeconomic problems, the Malaysian government and Bank Negara Malaysia can implement various measures. They can introduce fiscal policies such as stimulus packages, financial assistance, and infrastructure investments to support affected industries and stimulate economic growth. Additionally, monetary policies like adjusting interest rates and implementing liquidity measures can encourage borrowing and investment. To mitigate income inequality, progressive taxation, social welfare programs, and skills development initiatives can be implemented. Lastly, environmental challenges can be tackled through sustainable development policies and investments in renewable energy. These measures aim to foster inclusive and sustainable economic growth in Malaysia.
a) The Gross Domestic Product (GDP) and unemployment in Malaysia for the years 2018-2021 can be illustrated using line graphs. The GDP graph will show the trend in economic output, while the unemployment graph will depict the changes in the unemployment rate over the specified period.
In the GDP graph, we can observe the annual GDP growth rate or GDP in constant prices (adjusted for inflation) for each year. The line will indicate the direction and magnitude of economic growth or contraction. If the line is upward-sloping, it signifies positive GDP growth, while a downward-sloping line indicates a decline in economic output.
The unemployment graph will display the unemployment rate, which represents the percentage of the labor force that is unemployed. A rising trend in the line suggests an increase in unemployment, while a declining trend indicates a decrease in unemployment.
b) Currently, Malaysia is facing several macroeconomic problems. One key issue is the economic impact of the COVID-19 pandemic, which has led to reduced economic activity, job losses, and disruptions in supply chains. To mitigate this, the Malaysian government and Bank Negara Malaysia can implement fiscal and monetary policies. The government can provide stimulus packages to support affected industries, offer financial assistance to businesses and individuals, and invest in infrastructure projects to stimulate economic growth and job creation.
Monetary policy tools, such as adjusting interest rates and implementing liquidity measures, can be employed by Bank Negara Malaysia to encourage borrowing and investment, stimulate consumer spending, and maintain price stability.
Another macroeconomic problem in Malaysia is income inequality. The government can address this by implementing policies that promote equitable income distribution, such as progressive taxation, social welfare programs, and skills development initiatives to enhance employability and income-earning potential.
Additionally, Malaysia faces environmental challenges, particularly in relation to deforestation and climate change. The government can implement sustainable development policies, invest in renewable energy, promote environmentally-friendly practices, and encourage responsible resource management to mitigate these issues.
Overall, a combination of fiscal and monetary policies, along with targeted measures to address income inequality and environmental concerns, can help Malaysia navigate its macroeconomic challenges and foster sustainable and inclusive economic growth.
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List reasons why economists should not consider GDP an effective measure of the standard of living in a country. Why do economists do not consider GDP an effective measure of the standard of living in a country?
The Gross Domestic Product (GDP) has been used as an indicator of economic growth in a country, and yet, it is not an effective measure of standard of living.
This is because the GDP does not consider non-monetary aspects of life, and so does not reflect the quality of life in a country. Some of the reasons why economists do not consider GDP an effective measure of the standard of living are:Firstly, the GDP does not measure the distribution of income.
This means that although a country might have a high GDP, the income inequality may be very high. Thus, the GDP does not consider the welfare of the majority.Secondly, the GDP does not measure the value of unpaid work such as housework or volunteer work.
This means that even though people are contributing to their communities, this is not recognized in GDP.Thirdly, the GDP does not measure the social and environmental factors that are important for a good standard of living such as health, education, environmental quality, and access to clean water.
Thus, the GDP does not account for the long-term welfare of the country.
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Sectors of the external environment and the five forces of competition.
How and why are Environmental and Industry analyses relevant to Starbucks overall.
Environmental and Industry analyses are important to the overall success of Starbucks because they provide an understanding of the external environment that the company operates in and help to identify the key opportunities and threats that are likely to impact the business.
The external environment consists of several sectors including economic, social, political, legal, and technological factors, which can influence the performance of the business.
In addition, the five forces of competition model developed by Michael Porter provides a framework for analyzing the competitive environment in which Starbucks operates. The five forces include the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and rivalry among existing firms. By analyzing these factors, Starbucks can better understand the competitive landscape and develop strategies to gain a competitive advantage. Starbucks operates in the retail coffee and snacks industry, which is highly competitive with several large players such as Dunkin’ Donuts and McDonald’s.
By conducting environmental and industry analyses, Starbucks can identify key trends and developments in the industry and adapt its strategy accordingly. For example, if a new competitor enters the market, Starbucks can respond by introducing new products or services to maintain its competitive position.
Furthermore, environmental analysis can help Starbucks to anticipate changes in consumer preferences and adjust its strategy to meet evolving demand.
In conclusion, Environmental and Industry analyses are relevant to Starbucks overall because they provide an understanding of the external environment and help the company to identify key opportunities and threats. Through analyzing the five forces of competition, Starbucks can gain a better understanding of the competitive landscape and develop strategies to gain a competitive advantage.
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What would wages payable and unearned revenue be?
Wages Payable:This refers to the amount of money that a company owes to its employees for the time they have spent working. The company records a wage payable to recognize the liability that will be paid to the employees in the future period when the company prepares its payroll.
Unearned Revenue: Unearned revenue is a liability account, which refers to money that a company has received from its customers but hasn’t earned it yet.
It is money that a company has collected for goods or services that it hasn’t delivered yet. It arises when a customer pays for a product or service upfront, and the company has not yet provided the product or service.
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For each of the following independent circumstances, calculate both the FUTA and SUTA tax owed by the employer: NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
An employer in Albuquerque, New Mexico, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $8,350 and $21,400. During the current pay period, these employees earn $3,350 and $1,700, respectively. The applicable SUTA tax rate is 1%, and the New Mexico SUTA threshold is $23,400.
The total amount of taxes (SUTA and FUTA) owed by the employer is $432.
In this scenario, the employer is based in Albuquerque, New Mexico, and employs two individuals. During the current pay period, these employees earned $3,350 and $1,700, respectively. Prior to the current pay period, their taxable earnings were $8,350 and $21,400.
The applicable SUTA tax rate is 1%, and the New Mexico SUTA threshold is $23,400.
The taxable earnings for each employee are as follows:
Employee 1: $8,350 + $3,350 = $11,700
Employee 2: $21,400 + $1,700 = $23,100
Since the New Mexico SUTA threshold is $23,400 and Employee 2's taxable earnings are above this amount, the employer must pay the SUTA tax on the full $23,100.
The calculation of the SUTA tax and FUTA tax is as follows:
Employee 1: $11,700 x 1% = $117 SUTA tax owed
Employee 2: $23,100 x 1% = $231 SUTA tax owed
Total SUTA tax owed = $117 + $231 = $348
FUTA tax is calculated on the first $7,000 of taxable earnings for each employee.
Therefore, the FUTA taxable earnings for each employee are
:Employee 1: $7,000
Employee 2: $7,000
The FUTA tax rate is 0.6%. Thus, the FUTA tax owed for each employee is:$7,000 x 0.6% = $42
Therefore, the total FUTA tax owed is $42 + $42 = $84.
Finally, the total amount of taxes (SUTA and FUTA) owed by the employer is $348 + $84 = $432.
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The covariance between the return on Apple stock and the S&P 500 is 0.12. The variance of the return on the S&P 500 is 0.09. Apple stock is: a. Riskier than the market b. Less risky than the market C. As risky as the market d. Expected to have a good return when the market is doing poorly e. None of the above 25. Bookaccino's Pic wants to acquire Book Cellar Plc. Shares in Bookaccino's are currently trading at £5.00 each and shares in Book Cellar are trading at £2.40 each. Bookaccino's is offering 5 of its ordinary shares for ten shares in Book Cellar. What does this imply that Bookaccino's values shares of Book Cellar at? a. £2.40 b. £2.50 C. £5.00 d. £7.40 e. None of the above I
Riskier than the market.25) Bookaccino's Pic wants to acquire Book Cellar Plc. Shares in Bookaccino's are currently trading at £5.00 each and shares in Book Cellar are trading at £2.40 each. Bookaccino is offering 5 of its ordinary shares for ten shares in Book Cellar. The correct Option (a)
a) Riskier than the marketWe knows that the covariance of Apple stock return and S&P 500 is 0.12, and the variance of the S&P 500 return is 0.09.
Then we can calculate the beta of Apple stock. Beta = Covariance of Apple stock return and S&P 500 / Variance of S&P 500 returnBeta = 0.12 / 0.09 = 1.3333We can interpret the value of beta to determine the relative riskiness of the stock.
If the beta is greater than 1, it means that the stock is riskier than the market. If the beta is less than 1, it means that the stock is less risky than the market.
If the beta is equal to 1, it means that the stock has the same risk as the market. In this case, the beta of Apple stock is 1.3333, which is greater than 1. This means that Apple stock is riskier than the market.
What does this imply that Bookaccino's values share of Book Cellar? Bookaccino's is offering 5 of its ordinary shares for 10 shares in Book Cellar. This means that the exchange ratio is 5:10, which simplifies to 1:2.
This means that for every 1 share of Book Cellar, shareholders will receive 2 shares of Bookaccino's. If the shares of Bookaccino's are trading at £5.00 each, it means that each share of Bookaccino's is worth £2.50.
Bookaccino's is offering 2.5 pounds for each share of Book Cellar.
Option (b) is correct. Therefore, the answer is:£2.50.
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How many employees are unemployed nationwide. How many employees are unemployed in California. How does this unemployment affect the supply/demand curve for products and services. (please include info on demand curve!)bu
As of October 2021, there were approximately 4.2 million unemployed individuals in the United States. Meanwhile, in California, there were an estimated 471,000 unemployed individuals in October 2021.
The level of unemployment affects the supply/demand curve of products and services. When unemployment rates rise, there is a decrease in the demand for products and services, which can result in a leftward shift of the demand curve. This is because consumers have less income to spend on goods and services.
When demand decreases, the supply curve shifts to the left as well because producers are less willing to supply goods and services at lower prices. This results in a new equilibrium point with a lower price and quantity supplied. The economy may also experience lower economic growth and decreased spending on capital goods due to decreased demand for products and services.
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An experienced manager- Tarun- found that one of his subordinates- Arun- simply refused to understand even the most logical viewpoint shared by another subordinate- Varun, both of whom had been working in the same team for a project. The difference of opinion between Arun and Varun would happen every time, irrespective of the mode of communication (physical meeting or online communication). Tarun and Arun had almost similar experience, while Varun was comparatively young, although he also possessed good experience in other companies prior to joining this one. Arun had been in the organization for a considerable time, but had not been promoted still. Varun had worked as an intern in this organization earlier, and was later recruited in the same designation as Arun. Tarun found Varun to be quite intelligent, smart and hardworking; while Arun was lethargic but highly ambitious. All three- Tarun, Arun and Varun- were from similar societal and educational background. Explain what was causing this barrier in communication between Arun and Varun.
The barrier to communication between Arun and Varun is a perceptual difference. Despite the fact that Arun and Varun were from similar social and educational backgrounds, they had different perceptions that prevented them from understanding each other, even though they were both experienced in the field.
The difference of opinion between Arun and Varun would happen every time, irrespective of the mode of communication (physical meeting or online communication), according to the passage. This indicates that the issue is not with the method of communication, but rather with the differences in perception that the two employees have.Arun had not been promoted, even though he had been with the company for a long time and was lethargic, but ambitious. On the other hand, Varun was intelligent, hardworking, and had a strong work ethic.
However, it is not just the difference in work ethics that causes the problem. In other companies, Varun had previously worked and gained experience, while Arun had only worked for this company. As a result, their perceptions and ideas regarding work and the company are different. Therefore, their difference in perception creates a barrier to communication between Arun and Varun.
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A method that uses a weighted average of past values for arriving at smoothed time series values is known as
a. a moving average
b. a smoothing average
c. an exponential smoothing
d. an exponential average
The method that uses a weighted average of past values for arriving at smoothed time series values is known as d) an exponential smoothing.
An exponential smoothing method is a forecasting technique that uses the past data of a time series to predict future trends. It is commonly used to smooth out irregularities in a time series, identify patterns, and make predictions.Exponential smoothing assigns exponentially decreasing weights to older observations. Thus, the method gives more weight to recent observations and less weight to older observations. This technique is widely used to predict sales, demand, and supply chains. It is especially useful when a time series has a trend, seasonal effects, and noise.
Exponential smoothing technique is easy to use and flexible. The formula for exponential smoothing is as follows: $$ \hat y_{t+1}= \alpha y_{t} + (1 - \alpha)\hat y_t$$ where y is the actual observation, $\hat y_t$ is the forecast, and $\alpha$ is the smoothing constant. The smoothing constant $\alpha$ lies between 0 and 1. The closer the value of $\alpha$ to 1, the more weight is given to recent observations, and the smoother the trend is. The answer is d. an exponential average.
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Which of the following is NOT true about globalization? Multiple Choice Is not a new phenomenon Began towards the end of the fifteenth century Creates interdependencies among nations Requires transparency Which of the following is a type of political risk for global managers? Multiple Choice Cultural Financial Operational Organizational
The following statement is NOT true about globalization Requires transparency (option d). The type of political risk for global managers is organizational (option d).
This statement is because transparency is required to promote good governance and accountability, but it is not a necessity of globalization. While transparency can help to combat corruption, globalization can happen without this value. The following is a type of political risk for global managers:
Operational risk is a type of political risk for global managers. It is a risk associated with the day-to-day operations of an organization. It is the risk of loss resulting from inadequate or failed internal procedures, systems, or policies, or from external events. It can also be caused by human error, system failures, fraud, or terrorism, among other factors. It is one of the primary risks that global managers must consider when doing business in foreign countries.
Other types of political risks for global managers include financial risk, which is the risk associated with fluctuations in exchange rates, interest rates, and commodity prices, and cultural risk, which is the risk of misunderstanding local customs, beliefs, and values. Organizational risk, on the other hand, is not a type of political risk, but rather a risk associated with the structure and management of an organization. The correct option is Requires transparency is NOT true about globalization. The correct option is d.
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An example of manufacturing overhead costs would be O Direct Materials O CEO's Salary O Wage of factory supervisor O Direct Labor O Raw Materials O Utility expense on corporate offices
An example of manufacturing overhead costs would be Utility expense on corporate offices.
Manufacturing overhead costs refer to all the indirect costs that are not included in direct materials and direct labor. These costs include utilities, rents, salaries, and insurance. Manufacturing overheads are the indirect costs that are not included in direct labor or direct materials. These expenses are necessary to keep the manufacturing process running but cannot be directly attributed to a single product.
The manufacturing overhead costs could include but are not limited to; Electricity and lighting costs Rent of the manufacturing building Property taxes and insurance on the manufacturing building Depreciation of the manufacturing equipment and tools Maintenance of the manufacturing equipment and tools Corporate office salaries Security costs (guards)Quality control testing and salaries
Direct materials refer to the raw materials that are used to make a product. These materials can be traced to the finished product, and they have a significant impact on the cost of production. Direct labor is the cost of the wages of employees who work directly on the manufacturing process. This can include assembly line workers or machine operators.
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Problem 12-1 (algo) Identify which of the three functions of money is most relevant in the following situations. a. A business traveler does an online search of fares offered by airlines for her upcoming trip. The most relevant function of money in this situation is as a (Click to select) + b. A borrower uses an electronic transfer to pay off a debt to a friend. The most relevant function of money in this situation is as a means of exchange c. A bondholder cashes a Canada Savings Bond and keeps the proceeds for a time in currency. The most relevant function of money in this situation is as a (Click to select) + d. A reader compares prices of electronic and hard copy versions of a new book. The most relevant function of money in this situation is as a (Click to select) ♦ e. A cafe customer uses currency to pay for a cup of coffee. The most relevant function of money in this situation is as a (Click to select) + f. A retailer temporarily keeps monthly sales revenue in a business bank account. The most relevant function of money in this situation is as a (Click to select) ♦
Problem 12-1 (algo) Identify which of the three functions of money is most relevant in the following situations. The three functions of money are means of exchange, store of value, and unit of account. The most relevant function of money in the following situations is:
a. A business traveler does an online search of fares offered by airlines for her upcoming trip. The most relevant function of money in this situation is as a unit of account.
b. A borrower uses an electronic transfer to pay off a debt to a friend. The most relevant function of money in this situation is as a means of exchange.
c. A bondholder cashes a Canada Savings Bond and keeps the proceeds for a time in currency. The most relevant function of money in this situation is as a store of value.
d. A reader compares prices of electronic and hard copy versions of a new book. The most relevant function of money in this situation is as a unit of account.
e. A cafe customer uses currency to pay for a cup of coffee. The most relevant function of money in this situation is as a means of exchange.
f. A retailer temporarily keeps monthly sales revenue in a business bank account. The most relevant function of money in this situation is as a store of value.
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Three months ago, you purchased a stock for $72.74. The stock is currently priced at $79.16. What is the EAR on your Investment? Multiple Choice a. 35.30% b. 43.92% c. 8.83% d. 32.36% e. 40,26%
The EAR on your investment is approximately 35.43%. Option a
How to calculate the the EAR on your InvestmentTo calculate the Effective Annual Rate (EAR) on your investment, we need to consider the price change of the stock over the three-month period. Here are the steps to calculate the EAR:
Calculating the rate of return on the investment:
Rate of return = (Ending value - Beginning value) / Beginning value
Rate of return = ($79.16 - $72.74) / $72.74
Rate of return = $6.42 / $72.74
Rate of return ≈ 0.0883 or 8.83%
Calculating the EAR using the rate of return:
EAR = (1 + Rate of return)^n - 1
Where n is the number of compounding periods in a year.
Since the investment period is three months, and there are 12 months in a year, the number of compounding periods in a year (n) is 12/3 = 4.
EAR = (1 + 0.0883)^4 - 1
Calculating this expression:
EAR ≈ 0.3543 or 35.43%
Therefore, the EAR on your investment is approximately 35.43%.
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TRUE / FALSE. "asap
Question 2 [CLO-6] While Present Worth is a very popular metric in estimating a project's profitability, it can't be used alone in evaluation. O True O False"
The statement given "While Present Worth is a very popular metric in estimating a project's profitability, it can't be used alone in evaluation. " is false because present Worth can be used as a standalone metric in project profitability evaluation.
Present Worth is a commonly used metric in project profitability evaluation, and it can be used as a standalone measure. However, it is recommended to consider other metrics as well to obtain a comprehensive evaluation. By incorporating additional evaluation criteria such as internal rate of return, payback period, and net present value, a more informed decision can be made regarding the project's financial viability and profitability. Therefore, while Present Worth is valuable, it is not the only factor to consider in project evaluation.
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What should Colin do first as he begins investing? Make paper trades Learn about the market
When Colin begins investing, he should first learn about the market. The correct answer is B.
When Colin starts investing, the first thing he should do is learn about the market. The stock market is a complex system, and he should not invest without first educating himself. This will aid in the understanding of how the market works, as well as how to make good investment decisions.
To invest properly, he should understand fundamental and technical analysis, market trends, and investment strategies, among other things. He should also have a basic knowledge of financial statements and metrics such as the price-to-earnings (P/E) ratio, the price-to-book (P/B) ratio, and the return on equity (ROE).Only after learning about the market should he move on to making paper trades and eventually real trades.
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______ stock is the number of shares that a corporation's charter allows it to sell. multiple choice question.
Authorized stock is the number of shares that a corporation's charter allows it to sell.
Authorized stock represents the maximum number of shares that a company is legally permitted to issue according to its corporate charter or articles of incorporation. This limit is established at the time of the company's formation and can only be changed through an amendment to the charter. The authorized stock sets the upper boundary for the total number of shares that can be offered to investors or shareholders.
It's important to note that the authorized stock does not necessarily reflect the actual number of shares issued by the company. The issued shares may be a fraction of the authorized stock, depending on the company's capital structure and financing decisions. The authorized stock provides flexibility for the company to issue additional shares in the future if required for various purposes like fundraising, acquisitions, or employee stock compensation.
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Which of the following is NOT usually a responsibility of the Human Resources department of a company? a. Designing the scope and nature of jobs in the business b. Recruiting and interviewing people for jobs c. Designing compensation and benefits plans for workers d. Shipping finished products from warehouses to customers e. Writing job descriptions
The correct option is: d. Shipping finished products from warehouses to customers
Explanation:
The Human Resources department of a company primarily focuses on managing the organization's human capital and ensuring the well-being and development of its employees. While they play a crucial role in various aspects of employee management, such as job design, recruitment, compensation, and benefits.
they are not typically responsible for shipping finished products from warehouses to customers. This responsibility usually falls under the domain of the operations or logistics department, which handles the physical distribution and transportation of goods.
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Summarize the current state of the economy (AS-AD curves).
Explain proposed fiscal, monetary, and legislative
changes.
Identify the economic impact of the fiscal, monetary and
legislative changes.
Det
The economy is in a state of recovery after experiencing a sharp downturn in response to the COVID-19 pandemic. Both the Aggregate Supply and Aggregate Demand curves were adversely impacted by this shock, with supply disruptions and a drop in aggregate demand caused by job losses, low consumer confidence, and supply chain interruptions.
Monetary policy has been employed in an effort to mitigate these negative effects. The Federal Reserve Bank has taken several steps to support the economy, including lowering interest rates to near-zero levels, expanding its asset purchases, and providing liquidity to the financial system. Fiscal policy is a broad term that encompasses a variety of government actions, including tax policy, government spending, and regulations. The CARES Act is a notable example of recent fiscal policy, providing funding for small businesses, households, and state and local governments. Legislative changes that may have an economic impact include changes to trade policy, immigration policy, and environmental regulations.
It is difficult to predict the precise economic impact of these changes, but economists generally agree that expansionary fiscal and monetary policies can help boost the economy, while legislative changes may have a more mixed effect.
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Suppose you get a job at MICROVIEW, a small manufacturer of TV sets installed in cars and boats. Business has declined recently, foreign rivals from emerging markets are increasing competition, and management is worried. Because MICROVIEW does all its manufacturing in Canada and the United Kingdom, it lacks cost advantages, and its prices are relatively high. After studying the problem, you conclude that MICROVIEW should move much of its production to Mexico, but senior management knows little about FDI.
Prepare a report to management using an evidence-based approach and:
Analyse the current geographical and competitive situation of MICROVIEW. Also explain why MICROVIEW should be interested in foreign manufacturing and recommend which type of FDI MICROVIEW should use in Mexico. ALSO Explain the advantages and disadvantages the venture should expect from manufacturing in Mexico?
Analysis of the current geographical and competitive situation of MICROVIEW a small manufacturer of TV sets installed in cars and boats, has seen a decline in business recently from emerging markets.
MICROVIEW does all its manufacturing in Canada and the United Kingdom, it lacks cost advantages, and its prices are relatively high. A foreign manufacturing process for MICROVIEW would be beneficial because it will help to lower the cost and increase the profit for the business. The move will not only increase the profit but also help MICROVIEW to compete with other companies. Therefore, the business should consider moving much of its production to Mexico. Analyzing why MICROVIEW should be interested in foreign manufacturingA foreign manufacturing process for MICROVIEW will be beneficial as it will help to lower the cost and increase the profit for the business. The move will not only increase the profit but also help MICROVIEW to compete with other companies. The benefits of foreign manufacturing include reduced cost of production, the opportunity to enter new markets, the opportunity to use local resources and labor and also helps to reduce transportation costs which leads to more affordable products. Therefore, it is a good choice for MICROVIEW to consider foreign manufacturing.The type of FDI MICROVIEW should use in MexicoMICROVIEW should use the horizontal FDI type in Mexico. This type of foreign direct investment allows MICROVIEW to produce the same products or offer the same services in the foreign country as they do at home. Therefore, the company will still be able to maintain the same production process, quality, and branding.Advantages and disadvantages the venture should expect from manufacturing in Mexico.
Advantages of Manufacturing in Mexico:
The labor cost in Mexico is very low which means that MICROVIEW will be able to save a lot of money on labor cost.
MICROVIEW can also benefit from low energy costs and other raw materials required for the production process.
Manufacturing in Mexico also provides an opportunity for the company to access new markets in the region.
MICROVIEW can take advantage of the tax incentives provided by the Mexican government for foreign investors.
Disadvantages of Manufacturing in Mexico:MICROVIEW will have to deal with different laws and regulations which can be complex.There might be a language barrier that could create communication issues between employees of MICROVIEW and the local workforce in Mexico.The company may also face challenges related to logistics and transportation to export its products.
In conclusion, by moving much of its production to Mexico, MICROVIEW can take advantage of the low cost of labor, energy, and other raw materials in Mexico. The company can also benefit from the tax incentives provided by the Mexican government. MICROVIEW should use the horizontal FDI type in Mexico. However, there are some disadvantages that the company may face such as language barriers, complex laws and regulations, and transportation challenges. Nevertheless, the advantages of manufacturing in Mexico for MICROVIEW outweigh the disadvantages.
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Question 1 Partially correct Mark 5.00 out of 10.00 Estimating Share Value Using the DCF Model Following are forecasts of Home Depot's sales, net operating profit after tax (NOPAT), and net operating
Stock price per share: $222.51. The valuation estimate of Home Depot's stock using the DCF model is higher than the closing price of $174.86, indicating that the stock is undervalued.
a. To estimate the value of a share of Home Depot's common stock using the discounted cash flow (DCF) model, we need to calculate the present value of future cash flows.
1. Calculate the free cash flows to the firm (FCFF) for each forecast period. FCFF is calculated by subtracting net nonoperating obligations (NNO) from the net operating profit after tax (NOPAT).
FCFF 2018 = NOPAT 2018 - NNO
FCFF 2019 = NOPAT 2019 - NNO
FCFF 2020 = NOPAT 2020 - NNO
FCFF 2021 = NOPAT 2021 - NNO
FCFF 2022 = NOPAT 2022 - NNO
FCFF Terminal = NOPAT 2022 * (1 + Terminal growth rate) / (Discount rate - Terminal growth rate)
2. Determine the present value factor for each forecast period. The present value factor is calculated as 1 / (1 + discount rate) raised to the power of the forecast period.
PV Factor 2018 = 1 / (1 + Discount rate)¹
PV Factor 2019 = 1 / (1 + Discount rate)²
PV Factor 2020 = 1 / (1 + Discount rate)³
PV Factor 2021 = 1 / (1 + Discount rate)⁴
PV Factor 2022 = 1 / (1 + Discount rate)⁵
PV Factor Terminal = 1 / [tex](1 + Discount rate) ^ {(5 + 1)[/tex]
3. Calculate the present value of each FCFF by multiplying the FCFF for each period by its corresponding PV factor.
PV FCFF 2018 = FCFF 2018 * PV Factor 2018
PV FCFF 2019 = FCFF 2019 * PV Factor 2019
PV FCFF 2020 = FCFF 2020 * PV Factor 2020
PV FCFF 2021 = FCFF 2021 * PV Factor 2021
PV FCFF 2022 = FCFF 2022 * PV Factor 2022
PV FCFF Terminal = FCFF Terminal * PV Factor Terminal
4. Calculate the sum of all present values of FCFF to get the total present value (PV) of cash flows.
Total PV of Cash Flows = PV FCFF 2018 + PV FCFF 2019 + PV FCFF 2020 + PV FCFF 2021 + PV FCFF 2022 + PV FCFF Terminal
5. Divide the total PV of cash flows by the number of common shares outstanding to get the estimated value per share.
Estimated Value per Share = Total PV of Cash Flows / Number of Common Shares Outstanding
b. Comparing the valuation estimate with the closing price of Home Depot stock on March 28, 2019:
The closing price of Home Depot stock on March 28, 2019, was $174.86. Since the estimated value per share using the DCF model is $222.51, it suggests that the stock price is appropriately valued.
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The probable question may be:
Estimating Share Value Using the DCF Model Following are forecasts of Home Depot's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 3, 2019, which the company labels fiscal 2018. $ millions Sales NOPAT NOA Forecast Horizon Period Reported Terminal 2018 2019 2020 2021 2022 Period $99,547 $106,515 $113,971 $121,949 $130,485 $133,095 11.107 11,930 12,765 13,658 14,614 14,907 23,502 25,145 26,905 28,789 30,804 31,420 Answer the following requirements assuming a discount rate (WACC) of 7.85%, a terminal period growth rate of 2%, common shares outstanding of 1,105 million, net nonoperating obligations (NNO) of $25,230 million Required a. Estimate the value of a share of Home Depot's common stock using the discounted cash flow (DCF) model as of February 3, 2019. Note: Do not round until your final answer; round your final answer to two decimal places. Stock price per share: $ 0 X b. Home Depot stock closed at $174.86 on March 28, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? Stock price is appropriately valued