a. Easywash Ltd. is in the business of providing portable wash bags for backpackers. It has seen no growth in the past several years and does not expect to increase its dividend in the future. The company just paid a dividend of $2.17 recently. If the required rate of return is 12%, what is the current share price? (2 marks) b. Jenny is considering buying the ordinary shares of Bike2 Ltd. which are trading at $40. The company expects to pay a dividend of $2.35 next year and dividends are expected to grow at a constant rate of 6%. Should Jenny buy the shares at $40 if her required rate of return is 11%? Why or why not? (3 marks) c. PicnicWorld expects to grow at a rate of 24% for the next 3 years and then settle to a constant growth rate of 6%. The most recent dividend paid by the company was $2.2. The required rate of return is 14%. What is the price of the share today? (4 marks)

Answers

Answer 1

a) the current share price of Easywash Ltd. is approximately $18.08. b) Jenny should consider buying the shares as they are undervalued according to her required rate of return. c) the price of the share today for PicnicWorld is approximately $7.93.

Answers tot the questions

a. To calculate the current share price of Easywash Ltd., we can use the dividend discount model (DDM).

Current share price = Dividend / (Required rate of return - Dividend growth rate)

Given:

Dividend = $2.17

Required rate of return = 12%

Dividend growth rate = 0% (as there is no expected growth)

Current share price = $2.17 / (0.12 - 0)

Current share price = $2.17 / 0.12

Current share price ≈ $18.08

Therefore, the current share price of Easywash Ltd. is approximately $18.08.

b. To determine whether Jenny should buy the shares of Bike2 Ltd., we need to compare the expected return from the stock with her required rate of return.

Expected dividend next year = $2.35

Dividend growth rate = 6%

Required rate of return = 11%

Using the Gordon growth model:

Expected share price = Expected dividend / (Required rate of return - Dividend growth rate)

Expected share price = $2.35 / (0.11 - 0.06)

Expected share price = $2.35 / 0.05

Expected share price = $47

Since the current share price is $40, which is lower than the expected share price of $47, Jenny should consider buying the shares as they are undervalued according to her required rate of return.

c. To calculate the price of the share today for PicnicWorld, we need to consider the different growth rates for the first 3 years and the constant growth rate afterward.

Most recent dividend = $2.2

Growth rate for the next 3 years = 24%

Constant growth rate afterward = 6%

Required rate of return = 14%

Using the two-stage dividend discount model:

Price of the share today = Dividend next year / (Required rate of return - Growth rate) + Present value of the constant growth period

Dividend next year = $2.2 * (1 + 24%) = $2.728

Present value of the constant growth period = $2.728 / (0.14 - 0.06) = $34.10

Price of the share today = $2.728 / (0.14 - 0.24) + $34.10

Price of the share today ≈ -$26.17 + $34.10

Price of the share today ≈ $7.93

Therefore, the price of the share today for PicnicWorld is approximately $7.93.

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Related Questions

Which of the following accounts would be classified as a current asset on a classified balance sheet? Multiple Choice a. Equipment b. Accumulated Depreciation c. Dividends d.Supplies

Answers

Based on the classification of balance sheet accounts, the correct answer would be d. Supplies.

How to explain the information

Current assets are those that are expected to be converted into cash or used up within one year or the operating cycle of a business, whichever is longer. Supplies are typically consumed or used up within a year, making them a current asset.

Equipment is generally classified as a long-term or non-current asset. It represents items used in the production or operation of a business and is not expected to be converted into cash within a year.

Accumulated Depreciation is not a separate account but rather a contra-asset account that offsets the cost of the related asset (such as equipment or property).

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Question: Select an organisation of choice and review its performance appraisal system. Describe what performance appraisal is. Explain the type of performance appraisal system that is in use stating the advantages and disadvantages and whether that organisation has an effective performance appraisal System. Discuss the challenges/problems of the current performance appraisal system and make recommendations for improvement. (If the system is effective, you are still required to discuss the Challenges/problems inherent in performance appraisals and how these can be addressed). Finally, describe what the ideal performance Management process should be for any organisation by constructing an objective based performance appraisal instrument for use in the organisation of choice.
Format
Cover page with group members ‘names, student numbers, title
Table of content
Executive summary
Introduction-Name of Company, number of employees, and departments
Headings for smooth transition
Definition of Performance Appraisal
Characteristics of performance Appraisals and
Appraisal system currently in use
Reasons for failure of performance appraisal systems (needed even if current system is effective)
Construct a balanced score card performance appraisal instrument for
Conclusion
References (APA format)
Appendices

Answers

Our current appraisal system is a 360-degree approach that gathers feedback from supervisors, peers, subordinates, and external stakeholders.

List of chapters include 1. Chief Rundown 2. Presentation    2.1 Name of Organization    2.2 Number of Representatives    2.3 Divisions3. Headings for Smooth Progress4. Meaning of Execution Evaluation5. Qualities of Execution Examinations 6. Current Evaluation Framework being used7. Purposes behind Disappointment of Execution Evaluation Frameworks 8. Developing a Fair Scorecard Execution Examination Instrument 9. End 10. References, 11. Informative supplementsExecution examination is an orderly cycle that assesses individual worker execution inside an association. It includes defining execution objectives, giving input, and evaluating a worker's accomplishments and regions for development.

The qualities of powerful execution examinations incorporate clear and quantifiable objectives, ordinary criticism, reasonableness and objectivity, representative contribution, and arrangement with hierarchical goals. Right now, our organization utilizes a 360-degree execution evaluation framework. This framework includes gathering input from various sources, including bosses, companions, subordinates, and, surprisingly, outer partners. It gives an extensive perspective on a representative's exhibition according to different viewpoints.

The 360-degree examination framework assists with catching a more comprehensive comprehension of a representative's assets and shortcomings, cultivating proficient development and improvement. Regardless of the adequacy of our ongoing framework, there are normal explanations behind the disappointment of execution examination frameworks overall. These incorporate deficient preparation for appraisers, absence of lucidity in execution measures, predisposition and subjectivity in assessments, unfortunate correspondence, and a distinction between execution examination results and worker improvement plans. To develop a decent scorecard execution evaluation instrument, it is fundamental to recognize key execution regions lined up with the association's essential targets. These regions might incorporate monetary execution, consumer loyalty, interior cycle productivity, and worker learning and development. The instrument ought to comprise explicit execution measures, targets, and assessment standards for each key region.

By embracing a fair scorecard approach, the presentation examination framework can catch a more far-reaching evaluation of a representative's commitments across numerous aspects. Thus, execution examinations assume a fundamental part in assessing representative execution and cultivating proficient development. By using a decent scorecard execution evaluation instrument and tending to the normal explanations behind disappointment, associations can improve their examination cycles and backing the improvement of their representatives.

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Complete question:

Select an organisation of choice and review its performance appraisal system. Describe what performance appraisal is. Explain the type of performance appraisal system that is in use stating the advantages and disadvantages and whether that organisation has an effective performance appraisal System. Discuss the challenges/problems of the current performance appraisal system and make recommendations for improvement. (If the system is effective, you are still required to discuss the Challenges/problems inherent in performance appraisals and how these can be addressed). Finally, describe what the ideal performance Management process should be for any organisation by constructing an objective based performance appraisal instrument for use in the organisation of choice.

Consider a population that grows according to the recursive rule P. – P.-1+105, with initial population Po = 30 Then: P1 = P = Find an explicit formula for the population. Your formula should involve n (use lowercase n) P. Use your explicit formula to find P100 P100

Answers

The recursive rule of population is given by Pn = Pn-1 + 105 where P0 = 30. We are to find the explicit formula for the population and find P100.The given recursive rule of population is Pn = Pn-1 + 105 where P0 = 30. We need to find the explicit formula for the population.

To find the explicit formula for the population, we use the formula for an arithmetic sequence:an = a1 + (n - 1)dWhere, a1 is the first term, d is the common difference, and an is the nth term of the sequence.We can rewrite the given recursive rule of population as:Pn - Pn-1 = 105We can use the above equation to get the value of Pn-1.P1 - P0 = 105P1 = P0 + 105P1 = 30 + 105P1 = 135We can use the above equation to get the value of Pn-2.P2 - P1 = 105P2 = P1 + 105P2 = 135 + 105P2 = 240Similarly,P3 = P2 + 105P3 = 240 + 105P3 = 345P4 = P3 + 105P4 = 345 + 105P4 = 450and so on.We can observe that the population is increasing by 105 each time.

We can express this as d = 105.Since P0 = 30, we can substitute this value into the equation for an to get:a1 = 30Therefore, the explicit formula for the population is:Pn = 30 + 105(n - 1)Pn = 105n - 75To find P100, we substitute n = 100 into the explicit formula:P100 = 105(100) - 75P100 = 10,425Therefore, P100 = 10,425.

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Match each investment or savings option with the income source(s) it provides to investors.

Answers

Answer:

huh im confused

Explanation:

have a day ig

The correct match for investment or saving is:

Investment/savings                         Income sources

Trading in Bonds:                            Capital Gains and interest income

Buying and selling properties:       Capital gains only

Trading in company stocks:           Capital gains and Dividends

Opening a CD account:                  Interest Income only

What is an investment?

The classic definition of investment is "commitment of resources to realize benefits in the future." An investment is a "commitment of money to receive more money later" if money is involved. An investment is described as "to tailor the pattern of expenditure and receipt of resources to optimize the desirable patterns of these flows" from a more general perspective.

The net monetary reception during a time period is referred to as cash flow when expenditures and receipts are stated in terms of money, whereas money received over the course of numerous time periods is referred to as cash flow stream. The use of scientific methods, often mathematical ones, in the investing process is known as investment science.

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Fiscal policy is likely to fail to correct stagflation in an economy because _____ a. it affects aggregate supply only, but only aggregate demand needs to be changed. b. it affects aggregate demand only, but aggregate supply also needs to changed. c. it affects both the aggregate demand and supply, but only aggregate demand needs to be changed. d. it affects both the aggregate demand and supply, but only aggregate supply needs to be changed. e. it affects either aggregate demand or aggregate supply, but both need to be changed simultaneously.

Answers

Answer:

b. it affects aggregate demand only, but aggregate supply also needs to be changed.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.

Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.

Fiscal policy is likely to fail to correct stagflation in an economy because it affects aggregate demand only, but aggregate supply also needs to be changed.

A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F. The activity durations are D=4. E=3. F=6. The critical path is D-E-F. duration 12. B) The critical path is D-F, duration 10. C) Slack at Dis 0 periods. D) Slack at E is 3 periods. E) Both A and C are true.

Answers

A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F.  The correct answer is option E (Both A and C are true).

A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F.

The activity durations are D = 4, E = 3, and F = 6.

The critical path is the longest path through a network, and its duration represents the shortest time in which the whole project can be completed.

The critical path is D-E-F, and its duration is 12 periods.

Slack refers to the amount of time that an activity can be delayed without causing a delay in the project's completion time.

Slack = LF - EF or LS - ES. Therefore: Slack at D is 0 periods because it is a critical activity.

Slack at E is 3 periods because it can be delayed up to 3 periods without delaying the completion of the project.

Both A and C are true because the critical path is D-E-F with a duration of 12 periods, and Slack at D is 0 periods.

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Which of the following statements is true of Michael Porter's model of a value chain?
Procurement includes activities such as the acquisition of inputs.
Outbound logistics include activities such as informing buyers about products and services to induce the purchase.
Inbound logistics include activities such as recruiting, hiring, training, and compensating personnel.
Marketing includes activities involved in the transformation of inputs into outputs

Answers

The statement that is true of Michael Porter's model of a value chain is (a) Procurement includes activities such as the acquisition of inputs.

Michael Porter's value chain model divides a company's activities into primary activities and support activities. The primary activities include inbound logistics, operations, outbound logistics, marketing and sales, and service. The support activities include procurement, technology development, human resource management, and firm infrastructure.

Procurement refers to the activities involved in acquiring the inputs or resources needed for the company's operations. This can include activities such as sourcing suppliers, negotiating contracts, purchasing raw materials, and managing supplier relationships.

Outbound logistics, on the other hand, involves the activities related to the distribution and delivery of the company's products or services to the customers. It includes activities such as order fulfillment, warehousing, transportation, and informing buyers about products and services may fall under marketing and sales.

Inbound logistics focuses on the activities related to receiving, storing, and distributing inputs within the company. It typically involves activities such as receiving raw materials, inventory management, and organizing internal distribution.

Marketing, as a primary activity, involves activities related to promoting and selling the company's products or services. This includes activities such as market research, advertising, branding, and product positioning.

Therefore, the statement "Inbound logistics include activities such as recruiting, hiring, training, and compensating personnel" and "Marketing includes activities involved in the transformation of inputs into outputs" are not accurate descriptions of Michael Porter's value chain model.

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REAL ESTATE:
zoning law enforced by
a) building permits
b) court order
c) deed restriction
d) variances

Answers

The court order and variances are crucial in the real estate industry.

The court order is a directive given by the court that must be followed, while a variance is a permit granted to build a structure that deviates from the established zoning requirements.

The court order is a legal directive that must be followed. It is a legal decree, mandate, or instruction issued by a judge or court. The court order is often used in real estate when a property owner refuses to follow the regulations or policies of the jurisdiction in which they are located. A variance, on the other hand, is a permit granted by the local zoning board of appeals that allows a property owner to construct a building that deviates from the established zoning requirements. It's crucial to note that this is typically used in special situations or instances. For instance, a property owner might request a variance to construct a building that is taller than what's allowed in the zone or that is constructed on land that is too narrow.

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For governments, the distinguishing characteristic will be

A.
Imposing taxes on taxpayers

B.
Building roads or schools

C.
Charging customers for services

D.
They are required to be audited every year

Answers

Therefore, the distinguishing characteristic for governments is "imposing taxes on taxpayers. "Therefore, option A is correct.

For governments, the distinguishing characteristic will be "imposing taxes on taxpayers."

A government is a system or a group of people that control the affairs of a nation, country, or state. Its primary duty is to uphold the law, maintain order, and provide fundamental services to citizens. Also, it is responsible for building infrastructure such as schools, roads, and hospitals.

Governments impose taxes on taxpayers a significant characteristic of a government is its ability to tax its citizens. Taxation is the primary way for a government to generate revenue. By imposing taxes, governments can provide citizens with the services they require, including healthcare, security, education, and other services.

Most developed countries have a complicated taxation system that includes various taxes such as income tax, property tax, sales tax, and others.

Furthermore, the government uses taxes to regulate economic activities, reduce income inequality, and encourage economic growth.

Therefore, the distinguishing characteristic for governments is "imposing taxes on taxpayers. "Therefore, option A is correct.

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Demand and supply function for good X is given as follows: Qd = 1600-20P; Qs = -800+40P
1.Find the equilibrium price (5 marks)
2.How will demand and supply change if:
a. A ceiling price is set at $30 (10 marks)
b. A floor price is set at $50 (10 marks)
3.Explain why governments institute price ceilings and floors. (15 marks)
Requirement: 1,500 words (total)

Answers

The equilibrium price is determined by setting the quantity demanded equal to the quantity supplied. The demand and supply functions are as follows: Qd = 1600 - 20P Qs = -800 + 40P Substituting Qd and Qs, we get: 1600 - 20P = -800 + 40P Simplifying, we have: 60P = 2400P = 40 Therefore, the equilibrium price is P = 40.

To find the equilibrium price, we need to find the price at which the quantity demanded (Qd) equals the quantity supplied (Qs).

Given:

Qd = 1600 - 20P

Qs = -800 + 40P

At equilibrium, Qd = Qs:

1600 - 20P = -800 + 40P

To solve for P, we can simplify the equation:

1600 + 800 = 20P + 40P

2400 = 60P

Dividing both sides by 60:

P = 2400/60

P = 40

Therefore, the serenity price (P) is 40.

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why did gni per capita begin to increase notably in india after 1990?

Answers

After 1990, India experienced notable increases in GNI per capita due to economic reforms and liberalization policies. These changes encouraged foreign investment, improved productivity, and boosted various sectors, leading to higher economic growth and income levels for individuals.

In the 1990s, India implemented significant economic reforms that aimed to liberalize the economy and remove barriers to trade and investment. This included reducing government regulations, opening up sectors to foreign investment, and encouraging entrepreneurship. These reforms led to increased competition, productivity gains, and technological advancements, resulting in higher economic growth rates. Sectors such as information technology, services, and manufacturing flourished, attracting foreign investment and generating employment opportunities. As a result, the average income of individuals rose, leading to a notable increase in GNI per capita.

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The economy of Ghana is made up of three sectors namely: Agriculture, Industry and Services. These three sectors contribute to the national output. For decades, prior to the 2000s, the Agricultural sector contributed the most to the national output. Sadly, in recent years however, the sector has been the least contributor to national output. Trends in production of major food crops such as maize, rice and sorghum show that on-farm productivity has stagnated and the exploitable difference between the actual and the potential output of most of the crops (yield gap) has widened. Low and inadequate levels of usage of productivity enhancing technologies such as quality seeds of improved varieties and fertilizer, inadequate extension services and weak market linkages contribute to the poor agricultural performance. It was against this background that the NPP-led government implemented one of her flagship programmes "Planting for Food and Jobs". The programme is primarily aimed at making subsidised improved seeds and fertilizers available to farmers, sensitising farmers on the adoption of good agronomic practices and the marketing of agricultural crops over an electronic agriculture platform. This programme is ultimately aimed at boosting crop yield. In addition, suppose that agricultural products in Ghana are normal goods and due to the implementation of good economic policies and the curtailing of corruption, the economy of Ghana grows significantly leading to appreciable increases in the general consumers' income levels. With the aid of a diagram, explain the effect of these events on the equilibrium price and quantity of agricultural crops assuming that these events have equal impact.

Answers

Effect of the given events on equilibrium price and quantity of agricultural crops Assuming that agricultural products in Ghana are normal goods, an increase in income levels will lead to a rise in demand for agricultural crops. The diagrammatic representation of the demand and supply of agricultural crops is given below:In the diagram above, the initial demand and supply curve are D0 and S0 respectively, which intersect at E0 determining the equilibrium price and quantity of agricultural crops.

The implementation of good economic policies and the curtailing of corruption leads to significant economic growth and an increase in the general consumers' income levels.In the given situation, both the demand and supply of agricultural crops increase by an equal amount, leading to a shift of the demand curve to the right, to D1, and the supply curve to the right, to S1. The new equilibrium point is E1, with a higher price and quantity than the initial equilibrium, indicating that the program has led to an increase in the demand and supply of agricultural crops in the market.

Therefore, the implementation of "Planting for Food and Jobs" is successful in boosting crop yield and improving the equilibrium price and quantity of agricultural crops. Ghana's economy is made up of three sectors, namely Agriculture, Industry, and Services. The agricultural sector has been the least contributor to national output in recent years despite contributing the most to national output for decades before the 2000s. The stagnation in the production of major food crops and the widening of the yield gap could be attributed to low and inadequate levels of usage of productivity enhancing technologies such as quality seeds of improved varieties and fertilizer, inadequate extension services, and weak market linkages that contribute to poor agricultural performance. The implementation of "Planting for Food and Jobs" aims to make subsidised improved seeds and fertilizers available to farmers, sensitize farmers on the adoption of good agronomic practices and the marketing of agricultural crops over an electronic agriculture platform to boost crop yield.The increase in general consumer income levels due to good economic policies and the curtailing of corruption implies that agricultural products in Ghana are normal goods. Thus, the increase in income levels will lead to a rise in demand for agricultural crops. An increase in both demand and supply of agricultural crops shifts the demand curve to the right, to D1, and the supply curve to the right, to S1, leading to a new equilibrium point E1, with a higher price and quantity than the initial equilibrium. This shows that the implementation of "Planting for Food and Jobs" is successful in improving the equilibrium price and quantity of agricultural crops.

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The figure below shows the average and marginal cost curves tor producing cheeseburgers per hour. At a quantity of 25 cheeseburgers per hour, the average total cost or production is and the marginal cost of cheeseburger production is and the marginal cost of cheeseburger production is At a quantity 35 cheeseburgers per hour, the average variable cost of production is and the average variable cost of production is

Answers

The specific values for average total cost, marginal cost, and average variable cost at quantities of 25 and 35 cheeseburgers per hour. It also explains about Average total cost, Marginal cost, Average variable cost

1. Average total cost (ATC) is calculated by dividing the total cost of production by the quantity of output. It represents the average cost per unit of production.

2. Marginal cost (MC) is the additional cost incurred by producing one additional unit of output. It is calculated by dividing the change in total cost by the change in quantity.

3. Average variable cost (AVC) is calculated by dividing the total variable cost (costs that vary with the quantity of output) by the quantity of output. It represents the average variable cost per unit of production.

Without the specific data from the figure, I cannot provide the exact values for the given quantities. However, by analysing the average and marginal cost curves, one can determine the respective costs at those quantities.

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a firm's long run average cost curve represents the minimum cost of producing each level of output when the scale of production can be adjusted. true false

Answers

Due to a firm's long-run average cost curve does represent the minimum cost of producing each level of output when the scale of production can be adjusted, the statement is true.

In the long run, all inputs are variable, meaning a firm can adjust its production scale, such as acquiring or expanding facilities, hiring more workers, or adopting new technology. As a result, the firm can optimize its production process to minimize costs and achieve economies of scale.

The long-run average cost curve demonstrates the lowest average cost per unit of output attainable at different levels of production, reflecting the efficient utilization of resources and scale economies that contribute to cost minimization.

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Discuss examples of discrimination that you have experienced or
witnessed in the workplace.

Answers

Discrimination at workplace can happen in various forms, ranging from subtle behaviors to blatant forms of unfair treatment.

Some examples of discrimination that individuals may experience or witness at the workplace include:

1. Age Discrimination: The treatment of an employee less favorably because of their age, in which they are denied certain opportunities and privileges.

2. Gender Discrimination: Unfair treatment or differentiation between genders, which can include disparities in pay or promotions and not providing equal opportunities to women.

3. Racial Discrimination: When an employee is treated less favorably due to their skin color, racial background, or ethnicity.

4. Disability Discrimination: When an employee is denied opportunities due to a perceived disability or physical/mental limitations.

5. Religious Discrimination: When employees are treated less favorably due to their religious beliefs or practices.

6. Sexual Orientation Discrimination: When an employee is treated less favorably because of their sexual orientation or gender identity.

7. Pregnancy Discrimination: When an employee is discriminated against because they are pregnant, including limiting job duties or withholding promotions.

8. National Origin Discrimination: When an employee is treated unfairly because of their birthplace or ancestry.

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Argentina Partners is concerned about the possible effects of inflation on its operations. Presently the company sells 61,000 units for $35 per unit. The variable production costs are $20, and fixed costs amount to $710,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials cost to rise by 10 percent in the coming year. Of the $20 variable costs, 40 percent are from labor and 20 percent are from materials. Variable overhead costs are expected to increase by 20 percent. Sales prices cannot increase more than 10 percent. It is also expected that fixed costs will rise by 4 percent as a result of increased taxes and other miscellaneous fixed charges. The company wishes to maintain the same level of profit in real dollar terms. It is expected that to accomplish this objective profits must increase by 6 percent during the year.
Required:
A. Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented.
B. compute the volume of sales and the dollar sales level necessary to provide the 6 percent increase in profits, assuming that the maximum price increase is implemented.
C. If the volume of sales were to remain at 60,000 units, what price increase would be required to attain the 6 percent increase in profits?

Answers

A. To maintain the present profit level, we first calculate the total profit earned. The profit per unit would be calculated as the difference between the selling price and variable cost per unit ($35 - $20).

Total profit is then obtained by multiplying the profit per unit by the total units sold. The profit thus obtained needs to be adjusted for inflation, which is done using the GDP deflator.Accordingly, the total profit earned is:61,000 units × ($35 − $20) = $915,000Profits adjusted for inflation:($915,000 ÷ 1.05) × 1.06 = $871,200Sales dollars needed to earn $871,200:($20 × 1.1) + $20 + $710,000 = $932,000Consequently, volume in units necessary to maintain the present profit level:($932,000 ÷ $35) = 26,628 unitsB.

To earn the 6% increase in profits, we first calculate the new profit level, taking into account inflation. The dollar sales level can then be obtained using the profit margin of 11.1% of sales calculated from current variable costs plus overhead costs and fixed costs. Again, this value is adjusted for inflation to reflect real dollars.

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A game has the following payoff table. The numbers in the ( ) are monetary values with gain (+ signs) or loss (- signs) for (player 1, player 2). Please find the Nash’s equilibrium, which is the best decision for both players.

Answers

The best decision for both players is to follow the strategies (T, M).

Given the following payoff table, you are asked to identify the Nash's equilibrium.

|      | L   | M  | R   |
| ---- | --- | -  | --- |
| **T** | (6,-2) | (1,3) | (3,-1) |
| **M** | (3,4) | (0,0) | (1,1) |
| **B** | (-1,2) | (2,3) | (0,1) |

Nash equilibrium refers to the point in a game where the players make decisions that are mutually optimal and provide the best possible outcome for each player.

A Nash equilibrium point is the point where each player's strategy is the best response to the other player's strategy. So, the strategy of each player is a best response to the strategy of the other player.

Thus, from the above table, we can notice that (T, M) is the Nash's equilibrium of the given game.

In the first row, T dominates L since it provides the maximum payoff. Similarly, M dominates R since it provides the maximum payoff. In the second row, M dominates L since it provides the maximum payoff. In the third row, M dominates R since it provides the maximum payoff. Hence, (T, M) is the Nash's equilibrium of the given game.

The reason is that, by following their strategies T and M, neither of the players can gain by changing their strategy unilaterally. The strategies selected by the players provide them with the highest possible payoff in the game.

So, the best decision for both players is to follow the strategies (T, M).

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A bank which is not diversified in its lending products, faces a higher risk of being negatively impacted when Select the correct answer below:
a. a niche in the market performs poorly
b. the overall economy is going poorly
c. the economy is growing rapidly
d. there is a surge in bank deposits

Answers

A bank which is not diversified in its lending products, faces a higher risk of being negatively impacted when a niche in the market performs poorly. The correct option is A.

A bank that is not diversified in its lending products faces a higher risk of being negatively impacted when a niche in the market performs poorly. When a bank heavily concentrates its lending activities in a specific niche or industry, it becomes more vulnerable to fluctuations and downturns in that particular market.

If the niche experiences a decline or performs poorly, the bank's loan portfolio and potential loan repayment may be significantly affected, leading to increased credit risk and potential loan defaults. Diversification across various lending products and industries can help mitigate this risk by spreading the exposure to different sectors, reducing the bank's reliance on a single niche.

The correct option is A.

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A director is hired to manage a team that has had issues with productivity, efficiency and morale. She takes time to get to know each of her employees personally, learning their strenghts and weaknesses and ambitions. She spends part of the day with each employee letting them train her on their jobs, so she can understand their day to day challenges. She quickly promotes experienced employees to line manager roles and publicly credits team members important successses. She forms cross departmental alliances that benefit her team and improve quality of work.
Identify the type of political power demonstrated by the COO

Answers

The type of political power demonstrated by the COO can be identified as "Personal Power".

The given passage states that the director of the team spent time getting to know each of her employees personally, learning their strengths and weaknesses, and ambitions. She spent time with each employee to understand their day to day challenges and quickly promoted experienced employees to line manager roles and publicly credited team members important successes. She also formed cross-departmental alliances that benefited her team and improved the quality of work.All of these things show that the director is using personal power.

Personal power is a type of political power that derives from a person's unique qualities or characteristics, such as expertise, skills, knowledge, and abilities. This power base is built on the perception that the person possesses superior expertise or knowledge in a certain area.

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Land is the only asset that is not subject to annual depreciation. a. True b. False

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It is false that land is the only asset that is not subject to annual depreciation

Is land the only asset not subject to annual depreciation?

While land is generally considered a non-depreciable asset, it is not the only asset exempt from annual depreciation. Certain assets such as works of art, historical artifacts and some intangible assets like goodwill, may also be exempt from depreciation.

But it is important to note that most tangible assets such as buildings, vehicles, and equipment are subject to annual depreciation as their value typically decreases over time due to wear and tear, obsolescence, or technological advancements.

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determine boot inc taxable income and its tax liability for the current year

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To determine Boot Inc's taxable income and tax liability for the current year, specific financial information such as revenues, expenses, deductions, and tax rates is required. Without this information, it is not possible to provide an accurate calculation.

Taxable income is generally calculated by subtracting allowable deductions and exemptions from total income. The resulting amount is then subject to the applicable tax rate to determine the tax liability. Tax rates can vary based on the jurisdiction and the type of income (e.g., corporate income tax rates).

To accurately determine Boot Inc's taxable income and tax liability, it is recommended to consult a tax professional or accountant who can review the company's financial statements and apply the relevant tax laws and regulations. They will consider various factors, including revenue, expenses, deductions, credits, and applicable tax rates, to calculate the taxable income and tax liability for the current year.

Please note that taxation is a complex area, and specific circumstances may affect the calculations. It's always best to consult a qualified professional for personalized and accurate tax advice tailored to your specific situation.

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Selected sales and operating data for three divisions of different structural engineering firms are given as follows:

. Division A Division B Division C
Sales $ 12,330,000 $ 14,385,000 $ 25,687,500
Average operating assets $ 3,082,500 $ 7,192,500 $ 5,137,500
Net operating income $ 616,500 $ 575,400 $ 822,000
Minimum required rate of return 14% 10% 16%
Required:

1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover.

2. Compute the residual income (loss) for each division.

3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return.

a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?

b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?

Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Margin Turnover ROI
Division A % %
Division B % %
Division C % %
Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.)

Division A Division B Division C
Residual income (loss)
Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?

Division A
Division B
Division C
Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?

Division A
Division B
Division C

Answers

If performance is measured by ROI, Division A would accept the investment opportunity, Division B would reject it, and Division C would likely be indifferent. However, if performance is measured by residual income, Division A would accept the opportunity, while both Division B and Division C would likely reject it.

To compute the return on investment (ROI) for each division, we can use the formula:

ROI = Margin × Turnover

where Margin is the net operating income divided by sales and Turnover is the sales divided by average operating assets.

Calculate ROI for each division:

Division A:

Margin = Net operating income / Sales = $616,500 / $12,330,000 = 0.05 (or 5%)

Turnover = Sales / Average operating assets = $12,330,000 / $3,082,500 = 4

ROI = 0.05 × 4 = 0.2 (or 20%)

Division B:

Margin = Net operating income / Sales = $575,400 / $14,385,000 = 0.04 (or 4%)

Turnover = Sales / Average operating assets = $14,385,000 / $7,192,500 = 2

ROI = 0.04 × 2 = 0.08 (or 8%)

Division C:

Margin = Net operating income / Sales = $822,000 / $25,687,500 = 0.032 (or 3.2%)

Turnover = Sales / Average operating assets = $25,687,500 / $5,137,500 = 5

ROI = 0.032 × 5 = 0.16 (or 16%)

Compute the residual income (loss) for each division:

Residual Income = Net operating income - (Minimum required rate of return × Average operating assets)

Division A:

Residual Income = $616,500 - (0.14 × $3,082,500) = $616,500 - $431,550 = $184,950

Division B:

Residual Income = $575,400 - (0.1 × $7,192,500) = $575,400 - $719,250 = -$143,850 (loss)

Division C:

Residual Income = $822,000 - (0.16 × $5,137,500) = $822,000 - $821,600 = $400

If performance is being measured by ROI and the investment opportunity would yield a 15% rate of return:

a. Division A:

The current ROI for Division A is 20%, which is higher than the required rate of return of 15%. Therefore, Division A would accept the opportunity.

b. Division B:

The current ROI for Division B is 8%, which is lower than the required rate of return of 15%. Therefore, Division B would reject the opportunity.

c. Division C:

The current ROI for Division C is 16%, which is equal to the required rate of return of 15%. Therefore, Division C would likely be indifferent to the opportunity.

If performance is being measured by residual income:

a. Division A:

The residual income for Division A is $184,950. Since the investment opportunity would yield a higher return than the minimum required rate of return, Division A would accept the opportunity.

b. Division B:

The residual income for Division B is -$143,850 (loss). Since the investment opportunity would not significantly improve the residual income, Division B would likely reject the opportunity.

c. Division C:

The residual income for Division C is $400. Since the investment opportunity would not significantly improve the residual income, Division C would likely reject the opportunity.

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the basic cost flow model is: multiple choice eb bb = ti to. bb eb = ti to. eb − bb = ti − to. eb − bb = to − ti.

Answers

The basic cost flow model is:

eb − bb = ti − to

Explanation:

- eb represents the ending inventory balance (inventory at the end of the period).

- bb represents the beginning inventory balance (inventory at the start of the period).

- ti represents the total inventory purchased during the period.

- to represents the total inventory sold during the period.

The equation states that the change in inventory (ending balance minus beginning balance) is equal to the difference between the total inventory purchased and the total inventory sold during the period.

This equation helps track the flow of inventory and calculate the cost of goods sold and the value of ending inventory based on the inventory purchases and sales.

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The current price of a non-dividend-paying stock is $70.11 and you expect the stock price to either go up by a factor of 1.07 or down by a factor of 0.942 each period for 2 periods over the next 0.2 years. Each period is 0.1 years long.

A European call option on the stock expires in 0.2 years. Its strike price is $70. The risk-free rate is 4% (annual, continuously compounded).

1.What is the current value of the option?

Answers

The current value of the option is $4.25.

What factors contribute to the valuation of a European call option?

The valuation of a European call option is determined by several key factors. The current value of the option can be calculated using the Black-Scholes option pricing model. In this case, the stock price has two possible outcomes over two periods: it can either go up by a factor of 1.07 or down by a factor of 0.942 each period.

The risk-free rate is given as 4% (annual, continuously compounded), and the option expires in 0.2 years with a strike price of $70.Using the Black-Scholes formula, we can calculate the value of the option by discounting the expected payoff from exercising the option at expiration. In this case, if the stock price goes up in both periods, the payoff is the difference between the stock price and the strike price, which is $0.

If the stock price goes down in any of the periods, the payoff is also $0.Discounting these payoffs back to the present using the risk-free rate of 4% gives us a current value of $4.25 for the European call option.

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1. Which decisions did CEO Dani Reiss make that launched Canada Goods on its chosen strategic path?
2. Which uniqueness drivers are responsible for the success of Canada Goose?
3. Which of Canada Goose's uniqueness drivers are competitors likely to attempt to copy first?

Answers

CEO Dani Reiss made several decisions that launched Canada Goose on its chosen strategic path. Some of these decisions include Focusing on premium quality and craftsmanship and Expanding international presence.

The success of Canada Goose can be attributed to several uniqueness driver such as authenticity, Functionality and quality.

Canada Goose's success is also influenced by factors such as brand reputation, marketing strategies, distribution channels, and customer loyalty, which competitors may attempt to replicate or challenge.

Dani Reiss, the CEO, made crucial choices that put Canada Goose on its strategic course. These choices include putting an emphasis on premium quality and craftsmanship, embracing innovative and practical design, increasing global presence, and utilizing brand storytelling. Authenticity and heritage, performance and functionality, high quality and craftsmanship, brand storytelling, and celebrity endorsements all contribute to Canada Goose's success.

Competitors will probably try to imitate Canada Goose's distinctiveness drivers that give it a competitive edge, including functionality and performance, high caliber and craftsmanship, brand storytelling and international expansion. Competitors might attempt to imitate Canada Goose's brand reputation, marketing tactics, distribution methods and customer loyalty, which all have an impact on the company's success.

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reply to this discussion. use one source to back up your
information. minimum 200 words.
3 Click on the link to launch discussion. How are individuals impacted by what happens when the Federal Reserve increases or decreases interest rates?

Answers

The answer to the question is discussed below.

The Federal Reserve increases or decreases interest rates depending on the economic conditions of a country. The rate increase generally indicates the growth of an economy and also indicates the increased price of borrowing money, while the rate decrease typically shows a slump in the economic conditions. These changes can significantly affect individuals in various ways.

Individuals who hold savings accounts or deposits will be affected by the changes in interest rates. A rate increase will lead to an increase in savings account interest, while a rate decrease will lead to a decrease in the interest rate of savings accounts. Thus, individuals who hold savings accounts or deposits will receive less return on their investment if the interest rate is decreased by the Federal Reserve. The cost of borrowing also changes with interest rates. Individuals who intend to borrow money to fund a project or purchase will benefit from a rate cut because it leads to a decrease in the cost of borrowing. Similarly, a rate hike will lead to an increase in the cost of borrowing, making it more expensive to borrow money for individuals.

Individuals who invest in the stock market may also be impacted by the Federal Reserve's interest rate decisions. Higher interest rates can lead to a reduction in corporate profits, which in turn, can negatively impact the stock market. In contrast, a rate cut can encourage investment and lead to a boost in the stock market.

Individuals with mortgages will also be affected by the changes in interest rates. An increase in interest rates will lead to an increase in mortgage rates, which in turn, leads to a decrease in home-buying power. A rate cut, on the other hand, will lead to a decrease in mortgage rates, making it easier for individuals to purchase homes.In conclusion, the Federal Reserve's interest rate decisions have a significant impact on individuals. The impact can be positive or negative depending on the individual's financial situation. The changes in the interest rates affect savings accounts, the cost of borrowing, investment, and mortgages. The source of the information in this answer is Investopedia.

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You are evaluating a project that will require an investment of $19 million that will be depreciated over a period of 15 years. You are concerned that the corporate tax rate will increase during the life of the project.

a. Would this increase the accounting break-even point?

b. Would it increase the Financial break-even point?

Answers

a. Yes, an increase in the corporate tax rate would increase the accounting break-even point.

b. No, it would not increase the financial break-even point.

Does an increase in the corporate tax rate affect the accounting and financial break-even points differently?

An increase in the corporate tax rate would impact the accounting break-even point but not the financial break-even point. The accounting break-even point represents the level of sales at which total costs, including depreciation, are equal to total revenue.

Since depreciation is a tax-deductible expense, a higher tax rate would result in lower after-tax cash flows, thereby increasing the accounting break-even point. On the other hand, the financial break-even point considers only the variable costs and fixed costs, excluding depreciation and taxes. Therefore, a change in the tax rate does not affect the financial break-even point.

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Explain how Capitalism in Cuba effects our own America's economic system. You can refer to NAFTA, GATT, and the WTO for examples, as well as your own ideas and research. Also include 2) Can social equality hold out in Cuba as the market marches in? Explain. 3) Can socialism hold out here in the face of a global market economy?

Answers

Capitalism in Cuba has an effect on America's economic system in many ways. Yes, Social equality in Cuba can hold out while the market marches in. Yes, Socialism can hold out here in the face of a global market economy

The effects of Capitalism in Cuba are explained below:

1. NAFTA, GATT and the WTO

For example, NAFTA is a free trade agreement that was established to create a competitive market that would offer new opportunities for American companies and citizens. GATT and the WTO were also established to promote free trade and remove trade barriers. These agreements enabled American companies to access new markets, increased competition, and lowered prices.

2. Social equality in Cuba can hold out while the market marches in.

Social equality in Cuba can hold out while the market marches in because Cuba has many social programs that protect its citizens from the negative effects of the market economy. These programs include healthcare, education, and housing.

3. Socialism can hold out here in the face of a global market economy. The reason why socialism can hold out here in the face of a global market economy is that there are many successful examples of socialist countries that have managed to maintain their socialist ideals while engaging in the global market economy. Some of these examples include Cuba, China, and Vietnam.

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Manama Trading has 5 8,000 of cash sales that are subject to an additional 8% sales tax, what is the journal entry to record the cash sales in the company books? A Debit Cash $ 8.000; credit Sales $ 7,360 credit Sales Taxes Payable $ 640. B. Debit Cash $ 8,640, credit Sales $ 8,000, credit Sales Taxes Payable $ 640 C. Debit Cash $8,000, credit Sales $8,000, and record the taxes when paid. D. Debit Sales Taxes Payable $ 640, debit Cash $7,360, credit Sales $ 8,000

Answers

The correct journal entry to record the cash sales in the company books would be: A. Debit Cash $8,000; Credit Sales $7,360; Credit Sales Taxes Payable $640.

The correct journal entry to record the cash sales in the company books would be: A. Debit Cash $8,000; Credit Sales $7,360; Credit Sales Taxes Payable $640. This entry reflects the cash received from the sales, the revenue generated from the sales, and the sales tax liability incurred. The debit to Cash represents an increase in the company's cash account due to the cash sales. The credit to Sales reflects the revenue generated from the sales, which is recorded at the net amount after deducting the sales tax. The credit to Sales Taxes Payable represents the liability created for the sales tax that will be remitted to the appropriate tax authorities. The entry properly captures the cash received, the revenue earned, and the sales tax obligation. By recording the sales taxes payable separately, it ensures that the company recognizes the sales tax liability and can account for it appropriately when it is remitted to the tax authorities. Therefore, the correct answer is option A. Debit Cash $8,000; Credit Sales $7,360; Credit Sales Taxes Payable $640.

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xavier us single and his agi is $73200. he incurred the following unreimbursed medical expenses
$4900 hospital and ambulance
$550 prescriptions
$2500 doctor and dental copays
$300 prescription eye glasses
what amount of medical expenses can he deduct on sch a
a) $0
b) $930
c) $2760
d) $8250

Answers

Xavier can deduct $2,760 of his medical expenses on Schedule A.

How to find the  amount of medical expenses can he deduct on sch A

For tax year 2022, the threshold for deducting medical expenses is 7.5% of the taxpayer's AGI.

Therefore, Xavier can only deduct the portion of his medical expenses that exceeds 7.5% of his AGI.

Let's calculate the deductible amount:

7.5% of $73,200 AGI = $5,490

Total medical expenses incurred by Xavier = $4,900 (hospital and ambulance) + $550 (prescriptions) + $2,500 (doctor and dental copays) + $300 (prescription eyeglasses) = $8,250

Since the total medical expenses ($8,250) exceed the deductible threshold ($5,490), Xavier can deduct the excess amount:

Deductible medical expenses = Total medical expenses - Deductible threshold

Deductible medical expenses = $8,250 - $5,490 = $2,760

Therefore, Xavier can deduct $2,760 of his medical expenses on Schedule A.

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