The cost of capital is the return that a company must earn on its investments in order to attract enough funds to meet its financial obligations. The cost of capital is an important metric for investors because it helps them determine whether an investment in a company is likely to be profitable.
The cost of capital can be estimated using the following formula
Cost of capital = Risk-free rate + Beta * (Market risk premium + Rate of return required)
where Risk-free rate is the return on a risk-free investment (such as a U.S. Treasury bond), Beta is the measure of a company's systematic risk, Market risk premium is the additional return required to compensate investors for taking on the additional risk associated with investing in the stock market, and Rate of return required is the expected return on the company's investment.
In this case, the risk-free rate is the expected return on a U.S. Treasury bond, which is currently around 2.5%. The beta of the stock is the measure of its systematic risk, which can be estimated using historical stock prices. The market risk premium is the additional return required to compensate investors for taking on the additional risk associated with investing in the stock market.
Assuming a beta of 1.5, the cost of capital can be estimated as follows:
Cost of capital = 2.5% + 1.5 * (Market risk premium + Rate of return required)
Cost of capital = 2.5% + 1.5 * (market risk premium + 10%)
Cost of capital = 2.5% + 1.5 * 6.5%
Cost of capital = 4.75%
The stock's price is 560.
If the expected divide and next year is10, the expected dividend yield is:
Expected dividend yield = 10/560
Expected dividend yield = 0.175
The price of the stock can be calculated using the following formula:
Price of stock = Dividend yield * (1 + Dividend growth rate) / (1 - Cost of capital)
Plugging in the given values, we get:
Price of stock = 0.175 * (1 + 2% / (1 - 4.75%)) / (1 - 4.75%)
Price of stock = 0.175 * (1.02) / (1 - 4.75%)
Price of stock = 607.18
Therefore, the implied cost of capital based on the given information is approximate 607.18, or 10.2
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The argument that bureaucracy leads to the concentration of power in the hands of a few people is:
Bureaucracy is a system of administration in which government officials make decisions based on a complex set of rules and regulations. According to Max Weber, bureaucracy is the most efficient form of administration because it is based on merit and specialization. What is the argument against bureaucracy.
The argument that bureaucracy leads to the concentration of power in the hands of a few people is one of the arguments against bureaucracy. This is because bureaucracy is a hierarchical structure, with power being concentrated at the top. The people at the top of the hierarchy have more power than those at the bottom, and they are the ones who make the decisions that affect everyone else.The argument is that this concentration of power can be dangerous because it can lead to abuses of power.
The people at the top of the hierarchy may become corrupt or they may make decisions that benefit themselves rather than the people they are supposed to serve. This can lead to a breakdown of trust between the government and the people, and it can undermine the legitimacy of the government itself.What are some possible solutions?One possible solution to the problem of the concentration of power in bureaucracy is to increase transparency and accountability. This can be done by making sure that government officials are subject to public scrutiny and that they are held accountable for their actions.
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Determine the monthly payment of a loan for $3,000 at 7. 5% interest compounded monthly for 36 months. A. $93. 32 b. $95. 40 c. $211. 33 d. $253. 60.
The correct statement is that the monthly payment of a loan of $3000 will be $104.11. The calculations obtained are not relevant with the options of the statement quoted above.
The calculations can be done by applying the values to the formula of compounded interest and then further multiplying the values obtained with the number of monthly payments.
Calculation of Compounded Monthly Payments The formula to calculate compound interest is as below.\(\rm Compounded\ Annuity= 3000(1+ \dfrac{0.075}{12})^1^2\ ^x\ ^3\\\\\\\rm Compounded\ Annuity= 3000(1+ 0.00625)^3^6\\\\\\\rm Compounded\ Annuity= $3754.11\)The values obtained will now be derived into the following formula,\(\rm Compounded\ Payments = \dfrac{Annuity}{No.\ of\ Monthly\ Payments}\\\\\\\rm Compounded\ Payments = \dfrac{3754.11}{36}\)Continuing further, \(\rm Compounded\ Payments= \$104.11\)So, it is clear that the compounded monthly payments will be $104.11.
Hence, the monthly payment of loan for 36 months will be $104.11 which will be paid monthly at the rate of 7.5%.
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How do you know if the market is up or down?
To know if the market is up or down, you can look at various market indices that track the performance of different segments of the market.
For example, in the United States, the most commonly used indices to track the overall stock market performance are the S&P 500 and the Dow Jones Industrial Average (DJIA). These indices represent a weighted average of the stock prices of the largest companies in the United States. When the value of these indices increases, it is generally an indication that the market is up, while a decrease in their value typically suggests that the market is down.
Other markets have their own benchmark indices, such as the Nikkei 225 in Japan, the FTSE 100 in the United Kingdom, and the DAX in Germany. These indices can be used to track the businesses performance of their respective markets.
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which type of salesperson focuses on establishing and maintaining partner relationships with a small set of three to five named accounts?
Account managers typically focus on establishing and maintaining partner relationships with a small set of three to five named accounts.
What is maintaining?
To maintain means to remain constant, to be steady, to proceed, or to continue. On a flat surface, you can ride your bike very quickly, but it can be challenging to keep that speed while climbing a hill. When you follow a rigid study schedule, success results. You take good care of your car when you keep it in good working order. If you keep track of your business activity, it means that you keep track of your revenue and outgoing costs. If a teacher keeps the classroom in order, she never allows disruptions to get out of control. If you support your family, you provide them with clothing, food, and shelter. If you believe that eating animals is cruel, you will continue to believe that.
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goods taken by the proprietor for domestic purpose of Rs.15000
Journal entries
plz help me
Explanation:
Given:
Amount of goods taken by proprietor = Rs. 15,000
Find:
Journal entry
Computation:
Books of (.... ltd)
Journal entry
Particular Debit Credit
Drawing A/c Dr 15,000
To Purchase A/c Cr 15,000
(Being goods taken by proprietor for personal use)
Analyze (10 points)
Analyze different examples of communication in the workplace.
1. First look at how email should and should not be used in the workplace.
a) You need to share information summarizing last week's sales department meeting
with all the departments in your company. Would email be a good choice for this
interdepartmental communication? Why or why not? (1 point)
Workplace communications may occur between varying levels of management, from front-line workers to top-level executives. Some of the most common forms of workplace communication include video conferencing, meetings, email, text messages, and phone calls.
What is workplace communication ?Verbal, bodily, phone, and written communication are the four primary forms of business communication. You always have to deal with at least one at some point throughout the workweek. Being able to communicate effectively in these environments can be one of the most sensitive abilities a worker can acquire.
Making connections with other members of your team and fostering an inclusive environment are key to effective workplace communication. It's about communicating in a way that helps your team advance and reach its objectives.
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what internal controls can be put into place to prevent an employee from committing a mischaracterized expense scheme?
To prevent an employee from committing a mischaracterized expense scheme, organizations should implement robust internal controls such as segregation of duties, periodic expense reviews, detailed documentation, and regular audits.
1. Segregation of Duties: Divide responsibilities among different employees to reduce the risk of fraud. For example, separate the roles of approving expenses, making payments, and reconciling accounts to ensure no single employee has control over the entire process.
2. Periodic Expense Reviews: Conduct regular reviews of expense reports to identify any unusual or suspicious transactions. Managers should examine the expenses submitted by their subordinates and question any discrepancies.
3. Detailed Documentation: Require employees to provide detailed documentation, such as receipts or invoices, for every expense they claim. This will create a paper trail that can be reviewed during audits and discourage employees from mischaracterizing expenses.
4. Regular Audits: Perform internal and external audits to verify the accuracy of financial records and ensure compliance with internal controls. Audits will also help detect any fraud attempts and allow organizations to take corrective action.
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If the CEO assumes that the customer profiles in Chicago is most representative of all the locations and she only samples customers from Chicago for the survey, she is doing
a. Quota sampling
b. Simple random sampling
c. Convenience sampling
d. Judgment sampling
Representative of all the locations and she only samples customers from Chicago for the survey, she is doing Judgment sampling.
In the non-probability sampling technique known as judgment sampling, or authoritative sampling, the researcher chooses the units to be sampled based on his own prior knowledge or his professional judgment. Purposive sampling, also known as judgmental, selective, or subjective sampling, is a type of non-probability sampling in which researchers pick individuals from the public to take part in their surveys based on their own judgment. Three circumstances make the use of judgemantal sampling appropriate: (1) choosing distinctive respondents who are particularly instructive; (2) choosing members of a hard-to-reach, niche community; and (3) identifying specific sorts of respondents for in-depth examination.
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Net capital outflow (NCO)
A.
is the link between the loanable funds market (domestic market) and the foreign currency market.
B.
foreign assets purchased by US entities minus US assets purchased by foreign entities.
C.
Both of the above
D.
None of the above
Net capital outflow (NCO) is represented by option B: foreign assets purchased by US entities minus US assets purchased by foreign entities. It refers to the net flow of capital between a country and the rest of the world.
Net capital outflow (NCO) is a measure of the net flow of funds between a country and the rest of the world. It represents the difference between the amount of foreign assets purchased by domestic entities and the amount of domestic assets purchased by foreign entities.
In other words, it captures the net movement of capital from a country to other countries or from other countries to a country.
Option B accurately captures the definition of NCO by stating that it is the difference between foreign assets purchased by US entities and US assets purchased by foreign entities.
This difference reflects the net flow of capital across national borders and is an important component in the analysis of a country's balance of payments.
Option A is incorrect because NCO is not limited to the link between the loanable funds market and the foreign currency market. While NCO does have implications for both markets, it is a broader concept that encompasses all types of capital flows between a country and the rest of the world.
Option C is also incorrect because NCO is not a combination of options A and B. The correct answer is option B, which accurately describes NCO as the net difference between foreign assets purchased by US entities and US assets purchased by foreign entities.
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toy cars had an accounts receivable balance of $52,600 on december 31, 2020. prior to preparing their 2020 financial statements, toy cars estimated uncollectible accounts of $2,400. how should toy cars record this adjustment in their accounting records on december 31, 2020?
Toy Cars should record the adjustment as follows: Debit: Bad Debt Expense $2,400 and Credit: Allowance for Doubtful Accounts $2,400.
This entry increases the Bad Debt Expense account and decreases the Allowance for Doubtful Accounts account. The Bad Debt Expense account is an expense account on the income statement and represents the estimated amount of uncollectible accounts for the year.
The Allowance for Doubtful Accounts account is a contra-asset account on the balance sheet and represents the estimated amount of uncollectible accounts that have not yet been written off. By adjusting this account, Toy Cars is reflecting the estimated uncollectible accounts in their financial statements.
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true or false in the late 1800s, farm families in the trans-mississippi west became less dependent on loans as they were able to purchase land, machinery, and industrial products despite the prices for agricultural goods in the world market.
The given statement "In the late 1800s, farm families in the trans-Mississippi became less dependent on loans as to purchase land and industrial products for agricultural goods market" is False because geographic area experienced the most dramatic growth in capitalism.
The capitalism is an economic and political system in which a country's trade and industry are controlled by the private owners for profit.
That's why, it is wrong statement that in the late 1800s, farm families in the trans-Mississippi west became less dependent on loans as they were able to purchase land, machinery, and manufacturing products whose costs for agricultural goods.
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(Preferred stock valuation) Pioneer's preferred stock is selling for $69 in the market and pays a $4.80 annual dividend.
a. If the market's required yield is 9 percent, what is the value of the stock for that investor?
b. Should the investor acquire the stock?
a. The value of the stock for that investor is 9 per share. (Round to the nearest cent.) b. Should the investor acquire the stock? (Select from the drop-down menus.) The investor acquire the stock because it is currently in the market.
If the Pioneer's preferred stock is selling for $69 in the market and pays a $4.80 annual dividend and the market's required yield is 9 percent, then the value of the stock is $53.33, and even when the value of the stock for that investor is 9 per share, the investor should acquire the stock.
a. Value of the stock for the investor with a market yield of 9 percent is 9 per share.
The calculation of the value of the stock can be done by using the following formula:
Value of the preferred stock = Annual Dividend / Required Yield= $4.80 / 9% = $53.33
According to the formula, the value of the stock for an investor with a market yield of 9% is $53.33 (round to the nearest cent, i.e., $53.33 ≈ $53).
Therefore, the value of the stock for that investor is $53.
b. The investor should acquire the stock because it is currently available on the market for $69, and the stock's actual value is $53. This implies that the investor can acquire the stock at a lower cost than its actual value, allowing them to earn a profit by selling the stock in the future when its value rises. As a result, the investor should acquire the stock.
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The target cost is __________. ANSWER Unselected reevaluating activities to reduce costs while satisfying customer needs Unselected the amount a customer is willing to pay for a good or service Unselected the maximum cost to develop, produce, and deliver the product or service and earn the desired profit Unselected the minimum cost to develop, produce, and deliver a good or service Unselected I DON'T KNOW YET
Answer:
the maximum cost to develop, produce, and deliver the product or service and earn the desired profit
Explanation:
Target Cost is Selling Price – Profit Margin
Target Cost = Selling Price – Profit Margin
Features of target cost
1. The price at which the good and service is sold is determined by market conditions
2. Cost reduction is the difference between current cost and target cost
Advantages if target cost
1. It ensures that a product being created is profitable
2. Due to the fact that the product is developed in line with consumers wants, it increases the sales of the product
Disadvantage of target costing
1. If cost estimate is wrong, it can lead to failure of the venture
13. The following is the balance sheet of a banking system. Assets Reserves $1,000 Loans $3,000 Liabilities Deposits $4,000 Assume the required reserve ratio is 20% and there is no cash leakage. (a) C
The current balance sheet and the requirement for a reserve ratio of 20%, the banking system has the potential to generate an additional $1,000 in deposits.
Assets: Saves $1,000, Credits $3,000
Liabilities: $4,000 in deposits With no cash leakage and a required reserve ratio of 20%, we can calculate the excess reserves and potential money creation.
Excess Reserves = Total Reserves - (Deposits x Required Reserve Ratio)
Excess Reserves = $1,000 - ($4,000 x 0.20)
Excess Reserves = $1,000 - $800
Excess Reserves = $200
Now, the potential money creation by using the money multiplier formula: Money Multiplier = 1 / Required Reserve Ratio
Money Multiplier = 1 / 0.20
Money Multiplier = 5
Potential Money Creation = Excess Reserves x Money Multiplier
Potential Money Creation = $200 x 5
Potential Money Creation = $1,000
Reserve Ratio:
The Federal Reserve is pursuing a contraction monetary policy if it has a higher reserve requirement. There will be less money available to lend to consumers and businesses if banks have a higher reserve requirement. In the absence of other actions, raising the money stock and increasing the cost of credit result from raising the (reserve requirement) ratios.
These ratios reduce the volume of deposits that can be supported by a given level of reserves. A lower save proportion necessity gives banks more cash to loan, at lower financing costs, which makes getting more appealing to clients. Alternately, the Fed expands the hold proportion necessity to diminish how much supports banks need to loan.
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Incomplete Question:
The following is the balance sheet of a banking system. Assets Reserves $1,000 Loans $3,000 Liabilities Deposits $4,000 Assume the required reserve ratio is 20% and there is no cash leakage. A. Calculate the amount of excess reserves held by banks. (b) Calculate the increase in the amount of loans after lending out the excess reserves
When gathering information about certain occupations, be sure to understand how are paid. What is the difference between a salary and an hourly wage?
1 ) An hourly wage usually has benefits and is flexible whéreas a salary does not.
2) A salary is paid no matter how many hours you work whereas an hourly wage is paid only for the time on your job, wer.
3) An hourly wage is paid in installments whereas a salary is paid once a year.
4)A salary is paid based on the time spent working and an hourly wage is paid when the job is complete.
why?
Answer:
2) A salary is paid no matter how many hours you work whereas an hourly wage is paid only for the time on your job,
Explanation:
A salary is a form of monetary compensation that employees receive for labor services they provide. Salaries are fixed amounts paid monthly or as stipulated in the employment contract. A salary is a term payment, meaning an employee will receive the fixed amount after the agreed period's lapse regardless of hours worked or output.
An hourly wage is also a type of employee compensation. The employer set a specific figure to be paid for every hour worked in this form of compensation. After the lapse of a specified period, say a month, the employee's pay will be a product of the set hourly rate and the total number of hours worked.
A salary is paid no matter how many hours you work whereas an hourly wage is paid only for the time on your job, were is the difference between a salary and an hourly wage. Thus, option (2) is correct.
Employees receive monetary remuneration in the form of salaries in exchange for their work services. Salaries are set sums of money paid each month or as otherwise specified in an employment contract. A salary is a term of payment, implying that regardless of production or hours worked, an employee will receive the predetermined sum after the predetermined period has passed.
Another form of employee remuneration is an hourly wage. In this method of pay, the employer established a specified amount to be paid for each hour worked. The employee's salary will be a function of the agreed-upon hourly rate and the overall number of hours worked after a predetermined time period, such as one month, has passed.
Therefore, option (2) is correct.
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why are hedge funds considered a high risk of investment
Answer: the huge potential for money loss.
Explanation: hedge funds are considered to be high-risk investments because of the huge potential for money loss. Again, these funds are primarily controlled by hedge funds managers, and with pools of money going into investments, there is likely going to be some loss.
Match each law with its correct description.
Answer:
Not too sure but I think it goes 1.Fair credit billing act 2.Credit CARD act 3.Uniform commercial code 4.Truth in lending act.
Match the law terms and definition:
Truth in Lending Act - requires lenders to establish standardized disclosures regarding terms and how they calculate fees.
Through the meaningful disclosure of loan conditions, which enables customers to evaluate standardized credit terms more easily and intelligently, the Truth in Lending Act (TILA) aims to safeguard consumer protection and promote competition among financial institutions.
Match the law terms and definition:
Truth in Lending Act - requires lenders to establish standardized disclosures regarding terms and how they calculate fees.Fair Credit Billing Act: allows consumers to exercise their rights regarding disputes and billing errors.Uniform Commercial Code: a set of laws that govern US commercial transactions.Credit CARD Act: prohibits unfair and abusive credit practices and ensures the transparency of fees.As a result, the significance of the law terms and definition are the aforementioned.
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Which of the following best explains the purpose of a supply schedule?
O A. To demonstrate how the supply decreases as price increases.
B. To calculate how much time it takes for distribution.
C. To show the relationship between quantity supplied and prices.
O D. To indicate how supply and demand relate to price.
Answer:
C. To show the relationship between quantity supplied and prices.
Explanation:
A supply schedule is a tabular demonstration of the quantity that suppliers will be willing to sell at different prices. It is a table showing the relationship between supply and price.
According to the law of supply, the supply increases as the price goes up. Therefore, the supply schedule is a tabular illustration of the law of supply.
Answer:
it is c
Explanation:
because it does mean To show relationship between quantity supplied
and prices.
If the family decides to reduce its clothing budget by $200 a month, how much will the new clothing budget be? Round to the nearest dollar.
Answer:
$970
Explanation:
local economic benefits of boarding school.
While the economic benefits of boarding schools may vary depending on the specific school and the local community, they can provide employment opportunities, support local businesses, and contribute to the local tax base.
Boarding schools can provide local economic benefits in a few different ways. Firstly, they often employ a significant number of staff members, including teachers, administrators, and support staff. These employees earn salaries that are then spent within the local community, supporting local businesses and contributing to the local economy.
Additionally, boarding schools often attract students from outside of the local area. These students may need housing, transportation, and other services while attending the school, which can create additional economic activity in the surrounding community.
For example, local hotels and restaurants may see an increase in business from visiting families, and transportation providers may see increased demand for their services.
Boarding schools can also contribute to the local tax base, which can support local government services and infrastructure. Depending on the size of the school and the number of students and staff members, the tax revenue generated by a boarding school can be significant.
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-PLEASE HELP!
Which of the following choices is an example of an installment loan?
a fixed rate home loan
a variable rate credit card
a mutual fund
a utility bill
Capital, such as a car or home, is often used to secure a loan.
True
False
what could occur if a grease trap isn't properly maintained
If a grease trap is not properly maintained, it can lead to a number of problems. Grease and oil from kitchen wastewater can accumulate in the trap, reducing its effectiveness over time. This can result in the following issues:
1. Clogging of drainage systems: The buildup of grease and oil in the trap can clog drainage systems, leading to backups, slow drainage, and sewage overflows.
2. Unpleasant odors: As grease and oil decompose, they can emit unpleasant odors that can be very difficult to remove.
3. Health hazards: Accumulated grease can provide a breeding ground for bacteria, viruses, and other pathogens, which can pose a serious health hazard to people working in the area or consuming food prepared in the kitchen.
4. Environmental pollution: Grease and oil from kitchen wastewater can be harmful to the environment if they are released into waterways or sewage treatment plants.
5. Costly repairs: If grease traps are not properly maintained, they can fail, leading to costly repairs and replacements.
Therefore, proper maintenance of grease traps is essential to avoid these problems. It involves regular cleaning and inspection to ensure that the trap is functioning properly, and the accumulated grease is properly disposed of.
If a grease trap isn't properly maintained, it can lead to several issues. Firstly, the accumulation of grease and other solids can cause blockages in the plumbing system, leading to backups and flooding. This can result in costly repairs and downtime for businesses.
Additionally, the buildup of grease can create an unpleasant odor that can affect the overall atmosphere of the establishment. Improper maintenance of grease traps can also lead to violations of health and safety codes, resulting in fines and legal penalties. Lastly, neglecting to clean grease traps can harm the environment by allowing harmful substances to enter into the sewer system and potentially contaminate water sources.
These may include:
1. Clogged drains and pipes: Excess grease can build up and cause blockages, leading to slow drainage and potentially costly repairs.
2. Foul odors: As grease accumulates, it can create unpleasant smells that are difficult to eliminate.
3. Environmental damage: Overflowing grease traps can lead to the release of fats, oils, and grease (FOG) into the sewer system, causing environmental harm and potentially damaging local waterways.
4. Health and safety hazards: Grease spills and overflows can create slippery surfaces, posing a risk for accidents and injuries.
5. Regulatory fines and penalties: Businesses are required to maintain their grease traps in accordance with local regulations. Failure to do so can result in fines and other penalties.
To avoid these issues, it is essential to regularly clean and maintain your grease trap, following proper guidelines and best practices.
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Before ordering used parts for a repair, a technician
should get
approval from the ____.
for each pair of firms, choose the one that you think would be more sensitive to the business cycle. required: a. general autos or general pharmaceuticals multiple choice 1 general autos general pharmaceuticals b. friendly airlines or happy cinemas multiple choice 2 friendly airlines happy cinemas
In first statement the correct option is A and In second statement the correct option is A, the general autos and friendly airlines is more sensitive to the business cycle.
A business cycle refers to the natural fluctuations in the economy over time. It is characterized by alternating periods of growth and contraction in the economy. The cycle typically lasts between five to ten years, with the economy growing and expanding during boom periods and contracting and recessing during slowdown or recession periods.
The business cycle is driven by changes in consumer spending, government policies, and technological advancements. During the expansion phase, businesses invest in new projects, create jobs, and increase production, leading to higher consumer spending, which further drives economic growth. On the other hand, during the contraction phase, businesses slow down their operations, leading to job losses and reduced consumer spending, leading to economic recession.
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For each pair of firms, choose the one that you think would be more sensitive to the business cycle.
a. General autos or General pharmaceuticals
A. General autos
B. General pharmaceuticals
b. Friendly airlines or Happy cinemas
A. Friendly airlines
B. Happy cinemas
3. Describe the purpose of the SEC. (1-4 sentences 2.0 points)
Answer:
The Securities and Exchange Commission (SEC) is a federal body tasked with safeguarding investors from fraud and ensuring the market's fairness and efficiency in the United States. One of its key objectives is to require all types of investments to be disclosed to both small and large firms.
The Securities and Exchange Commission (SEC) was established in 1934 to enforce the 1933 Securities Act. It was created, in large part, to fill the void left by the absence of a government regulatory body to regulate the U.S. stock markets during a period of significant financial volatility. It was shortly broadened to include the 1940 Investment Advisers Acts as well. Today, the agency is responsible for enforcing and amending federal securities laws, as well as coordinating U.S. securities regulations with other countries.
Explanation:
U
1 point
You are at the checkout counter at the local supermarket, use your debit
card to pay for your groceries, and select "credit” when the cashier asks
"Debit or credit?" Where does the money for this purchase come from? *
Your credit card company covers the cost
O It is deducted directly from your checking account
Your credit card company provides you with a cash advance to cover the cost
It is deducted from your credit card account
Answer: It is deducted directly from your checking account
Explanation:
A Debit card is linked to your bank account so when it is used, it will always be deducted directly from your checking account.
The Debit or Credit option simply refers to how the transaction will be processed. With a Debit the transaction goes through a different computer network than the Credit which goes through the Credit computer network.
Bottom-line is that debit cards are bank accounts.
In the first two years of a new car's life, it loses:
Answer:
30% of the resale value
Explanation:
Which two renewable technologies do not rely on energy from the sun?.
Answer:
GEOTHERMAL AND TIDAL ENERGY
Explanation:
1. Culture reigns supreme when it comes to an organization's capacity to properly implement strategy. It is important to not undervalue the role that culture plays in the successful execution of a strategy. Why is this statement relevant?
2. The success of any organization depends on the implementation of a plan and the achievement of the targeted results. Any approach cannot, however, be successfully implemented by a single person or even a small group of people. The implementation must be able to involve all of the company's employees. Organizational culture is the key in this.
3. The attitudes, viewpoints, traits, and qualities that all employees share make up an organization's culture. They are all aware that a fresh approach must be taken in order to attain greater organizational growth. Employees support the implementation of the strategy so that everyone benefits from it, not just the owners and top management. Therefore, it is important to consider the influence of culture when implementing any strategy.
This statement is relevant because culture plays a significant role in shaping the behavior, attitudes, and values of individuals within an organization. When implementing a strategy, the organization's culture can either facilitate or hinder its success.
This statement highlights the importance of involving all employees in the implementation of a strategy. Successful implementation requires collective effort, and organizational culture plays a crucial role in fostering a sense of ownership, collaboration, and engagement among employees. When the culture promotes open communication, teamwork, and a shared vision, it becomes easier to align individual efforts with the strategic objectives. Employees feel empowered, valued, and motivated to contribute their skills and knowledge towards the achievement of targeted results. This statement emphasizes that organizational culture encompasses the collective attitudes, viewpoints, and qualities of employees.
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Instructions: Print this page, reproduce by hand or complete via computer. Regardless, you must note answers in the space provided ONLY. All supporting math (round to 2 decimal points) must be shown in the corresponding space. If you write an answer and math is not included or does not correspond, you will receive no points. Note: You must write neatly and NOT in red ink. You are not permitted to cross out answers; use white-out or start over. Further, if I cannot read your work, you will receive zero points. When completed: Take a photo of this page/save file and upload via the corresponding Assignment link in Canvas by the due date. Remember: No HEIC files are permitted. ANALYSIS 1 COST Location Demand Moderate Low High Payoff 9 40,000 80,000 140,000 Table R 20,000 100,000 180,000 120,000 90,000 60,000 Answer (2 pts): 1. Assume no probabilities are available with the data above. What is the MAXIMIN choice? State location AND $ value. Location: Answer (2 pts): 2. Assume no probabilities are available with the data above. What is the MAXIMAX choice? State location AND $value. Location: Answer (2 pts): 3. Assume no probabilities are available with the data above. What is the LAPLACE choice? State location AND $ value. Location: Answer (2 pts): 4. Assume the probability for of low demand is 30% and high demand is 20%. What is the EMV for Q? Answer (2 pts): 5. Assume the probability for of low demand is 30% and high demand is 20%. What is the EMV for R? Answer (2 pts): 6. Assume the probability for of low demand is 30% and high demand is 20%. What is the EMV for S? 7. Considering just the EMVS, which location would you recommend? Answer (1 pt): Answer: YES NO 8. Wes and Steve can hire a firm to determine what demand will be. It will cost $20,000 and results can be delivered in an acceptable timeframe. Would you recommend that they hire the firm? MUST SHOW APPROPRIATE MATH BELOW TO SUPPORT YOUR ANSWER (6 pt) Why? ANALYSIS 2 9. Wes has developed the following PROFIT decision tree to decide whether to secure 3 or 5 locations for lunch stops. Complete the tree below and select the decision to be made and corresponding EMV. Assume that the likelihood of low demand is .70 and high demand is.30; the likelihood of a very successful campaign is.70. Very Successful $400,000 Promo Successful Low D $300,000 3 Locations $200,000 High D $500,000 Very Successful $500,000 Successful $400,000 $300,000 $600,000 5 Locations Low D High D EMV 3 Locations: EMV S Locations: Decision (circle one): Nothing Promo Nothing 3 LOCATIONS (2 pts) (2 pts) 5 LOCATIONS (2 pts) Background: Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch. trucks that travel to various locations in Philadelphia, Monday-Friday. The lunch trucks deliver pre-packaged healthy sandwich and salad alternatives, fresh fruit and pre-packaged low-fat desserts and canned beverages. Together, the partners have to make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient and profitable. Current Situation: Analysis 1: Steve and Wes have been investigating new, larger locations for their central kitchen (they have outgrown their current space). They have identified 3 locations for final consideration and have developed a payoff table (next page) that identifies COSTS for various levels of demand (low, moderate and high). They have also estimated that the probability of low demand is 30% and high demand is 20%. Using the COST payoff table and likelihoods provided on page 2, determine the following and answer questions shown: Maximin choice • Maximax choice LaPlace choice • EMVS for each option Analysis 2: Wes is investigating whether to expand the company's lunch truck stops by either 3 or 5 locations. He has developed a PROFIT decision tree and supporting data as found on page 3. With the data provided, complete the decision tree analysis and indicate his preferred course of action.
The EVPI is $9,000. Since the cost of the analysis is $20,000, which is greater than the EVPI, it is worth paying for the analysis.
1. The Maximin choice is the alternative that results in the maximum of the minimum possible payoffs. From the table, the minimum payoff for location Q is 40,000, for R is 20,000, and for S is 60,000.
Therefore, the Maximin choice is location Q with a payoff of $40,000. Location: Q ($40,000)
2. The Maximax choice is the alternative that results in the maximum possible payoffs. From the table, the maximum payoff for location Q is $140,000, for R is $180,000, and for S is $90,000.
Therefore, the Maximax choice is location R with a payoff of $180,000. Location: R ($180,000)
3. The Laplace choice is where the expected payoff for each alternative is equal. The expected payoff for each alternative is calculated by averaging the payoffs for each demand scenario.
The expected payoffs for location Q, R, and S are $96,667, $130,000, and $83,333, respectively. Therefore, the Laplace choice is location R with a payoff of $130,000. Location: R ($130,000)
4. EMV of Q = (0.3 × $40,000) + (0.5 × $80,000) + (0.2 × $140,000) = $70,0005. EMV of R = (0.3 × $100,000) + (0.5 × $180,000) + (0.2 × $120,000) = $139,0006. EMV of S = (0.3 × $60,000) + (0.5 × $90,000) + (0.2 × $60,000) = $72,0007.
The location with the highest EMV is R, with an EMV of $139,000. Therefore, location R is the recommended location.
8. Yes, Wes and Steve should hire the firm because the expected payoff of the decision is greater than the cost of the analysis. The expected value of perfect information (EVPI) can be calculated to determine the value of additional information. If the cost of the analysis is less than the EVPI, then it is worth paying for the analysis.
The EVPI is calculated by subtracting the expected payoff under certainty from the expected payoff under risk.
In this case, the expected payoff under risk is $130,000, and the expected payoff under certainty is $139,000 (the EMV of location R).
Therefore, the EVPI is $9,000. Since the cost of the analysis is $20,000, which is greater than the EVPI, it is worth paying for the analysis.
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