In the concept of economics, externality refers to the spillover effects of the economic activities of one agent on another. Education can be categorized as a positive externality of the market mechanism because it provides a benefit to society that is not accounted for by the private market.
In the concept of economics, externality refers to the spillover effects of the economic activities of one agent on another. Education can be categorized as a positive externality of the market mechanism because it provides a benefit to society that is not accounted for by the private market. The externalities produced by education are widespread and can take different forms .Economic externalities are negative or positive consequences of economic activity that impact individuals or organizations that are not a part of the market transaction. Negative externalities are the type of externality where the activity of one party imposes harm on a third party, whereas positive externalities are the type of externality where the activity of one party provides a benefit to a third party. Education is an example of a positive externality that is not taken into account by the private market. The education of one individual can produce positive externalities for the rest of the society as well as for the future generation that will benefit from a more educated workforce. In a market economy, individuals tend to make decisions based on their private incentives and do not consider the externalities that their activities may have on others. This is because they are not required to pay for the full cost of their activities. The market mechanism fails to allocate resources efficiently because the price system does not account for externalities. Education is a classic example of a public good. Public goods are characterized by the fact that they are non-excludable and non-rivalrous. This means that once the good is produced, everyone can benefit from it and the consumption of the good by one person does not reduce its availability for others. As a result, it is difficult to charge a price for public goods. Education is also a common resource pool. Common resources are those resources that are available to everyone but are subject to depletion if overused. Education can be seen as a common resource pool because the use of education by one person does not reduce the availability of education for others, but the overuse of education can lead to its depletion.
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True or False? It is mandatory that the product increment be released to production at the end of each Sprint.
It is mandatory that the product increment be released to production at the end of each Sprint - FALSE.
The Product Increment is a sum of the work of the Development Team during a Sprint and the value of the increments of all previous Sprints. The increment should be usable, in that it must be in a position to be used by the customer. The increment is the primary mechanism for assessing progress.
A Sprint is a time box of one month or less during which a "Done", usable, and potentially releasable product Increment is created.
Scrum is an Agile framework for completing complicated projects. Scrum was initially intended for software development projects, but it has since been used in other fields. Scrum is not a process or a method; it is a framework for managing and completing projects.
The Sprint Goal is an objective that the Scrum Team intends to achieve during the Sprint. It provides a focus for the Development Team and encourages collaboration and creativity. It is created during the Sprint Planning meeting.
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Walmart’s Global Strategy
Walmart’s international division has an important job. With 80% of the retail industry’s growth coming from outside of the United States, Walmart’s $137 billion in international sales in 2014—29% of sales overall—is a key driver of overall revenue growth. To drive this performance, David Cheesewright, CEO of Walmart’s international division, is focusing on current operations in growth markets and e-commerce. Shopping trends indicate that what customers buy is changing fast, and that they are quickly switching to online shopping platforms. After decades of work trying to develop a foundation in the Chinese market, Walmart is consolidating its portfolio of stores in that country, closing nonperforming retail stores and investing in successful ones. To enter the Chinese e-grocery market, Walmart holds a 51% stake in Yihaodian, which has posted triple-digit growth—twice the market rate. The company’s operations in Brazil and Mexico are experiencing slowing growth, in part a result of economic cycles and their brand’s life cycle, but they still offer the opportunity to develop strong, mature businesses. International expansion comes with country-specific challenges. After experiencing too many regulatory difficulties in India, Walmart canceled plans to open retail stores there. Instead, Walmart India is focusing on business-to-business sales.
Although Walmart has successfully dominated the U.S. market, it has found that expanding its reach across the globe does not always fit with its strengths. In addition, navigating the variety of economic and regulatory requirements across different countries adds significant complexity to the company’s operations. Finally, gaining access to and managing workforces with different values, cultures, and languages present tremendous challenges.
QUESTIONS
What criteria should a company use to determine which countries it should expand into?
How can a company assess how cultural and economic differences might impede its ability to succeed in different countries?
What things can companies do to manage a global workforce more effectively?
When expanding internationally, companies should consider criteria such as market size, growth potential, stability, regulations, infrastructure, competition, cultural fit, and consumer behavior. Cultural and economic differences can be assessed through market research, analyzing cultural norms, economic indicators, and market trends.
Managing a global workforce effectively involves cross-cultural training, localization, effective communication, talent development, and promoting inclusion and diversity. Walmart's international strategy focuses on growth markets and e-commerce, while adapting its approach based on the specific challenges and opportunities in each country, such as consolidating stores in China and focusing on business-to-business sales in India.
Determining which countries to expand into requires careful consideration of various criteria. Some key factors to consider include market size and growth potential, political and economic stability, regulatory environment, infrastructure, competitive landscape, cultural fit, and consumer behavior. By analyzing these factors, a company can identify countries that align with its strategic objectives and offer favorable conditions for growth and profitability.
To assess how cultural and economic differences might impede success in different countries, a company can conduct thorough market research and analysis. This involves studying cultural norms, values, and preferences of the target market, as well as economic indicators such as GDP, income levels, purchasing power, and market trends. It's essential to understand how these factors may impact consumer behavior, demand for products or services, and the overall business environment.
To effectively manage a global workforce, companies should prioritize the following actions:
Cross-cultural training and sensitivity: Providing cultural awareness training to employees and leaders helps foster understanding and respect for different cultures, minimizing misunderstandings and conflicts.
Localization and flexibility: Adapting HR policies, practices, and compensation structures to suit local cultures and labor laws ensures compliance and helps attract and retain talented employees.
Effective communication: Implementing clear communication channels and platforms that facilitate efficient information flow among global teams, fostering collaboration and knowledge sharing.
Talent development and succession planning: Investing in employee development programs, mentoring, and career progression opportunities promotes employee engagement, talent retention, and a pipeline of future leaders.
Inclusion and diversity: Promoting an inclusive work environment that values diversity cultivates innovation, creativity, and a sense of belonging among employees from different backgrounds.
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A retail electronic firm that has traditionally required customers to pay cash for items is considering introducing credit sales. The firm currently has revenues of $300,000 and after-tax operating income of $100,000. Without the credit sales, the growth in earnings and cash flows is expected to be 5%, while the cost of capital is 12%. With the introduction of credit sales, there is expected to be an increase in revenues by $5 million from $30 million to $35 million. The cost of goods sold will remain at 50% of revenues, and the firm faces a tax rate of 40%. The cost of capital will remain unchanged.
a. Estimate the cash flows associated with introduction of credit sales.
b. Estimate the net present value of the credit sales decision.
a. The cash flows associated with the introduction of credit sales can be estimated by considering the increase in revenue, the cost of goods sold, the tax rate, and the cost of capital.
b. The net present value (NPV) of the credit sales decision can be estimated by calculating the present value of the cash flows associated with the decision.
a. The introduction of credit sales is expected to result in an increase in revenue from $30 million to $35 million. To estimate the cash flows, we need to consider the impact of this increase in revenue on the cost of goods sold and the tax rate.
The cost of goods sold is expected to remain at 50% of revenues. Therefore, with the increase in revenue, the cost of goods sold would also increase proportionately. We can calculate the cost of goods sold by multiplying the revenue increase of $5 million by 50%, which gives us $2.5 million.
Next, we need to consider the tax rate. The firm faces a tax rate of 40%. To estimate the tax impact, we can calculate the after-tax operating income without credit sales by multiplying the current after-tax operating income of $100,000 by the expected growth rate of 5%. This gives us an estimated after-tax operating income of $105,000.
With the introduction of credit sales, the increase in revenue by $5 million would result in additional taxable income. We can calculate the tax impact by multiplying the additional taxable income of $5 million by the tax rate of 40%, which gives us $2 million.
Finally, to estimate the cash flows associated with the introduction of credit sales, we subtract the increase in the cost of goods sold ($2.5 million) and the tax impact ($2 million) from the increase in revenue ($5 million). This gives us a net cash flow of $0.5 million.
b. To estimate the NPV of the credit sales decision, we need to consider the cash flows associated with the introduction of credit sales and discount them to their present value.
First, let's calculate the cash flows. With the introduction of credit sales, there is an expected increase in revenue from $30 million to $35 million. The cost of goods sold will remain at 50% of revenues, so the increase in cost of goods sold would be $2.5 million. We also need to consider the tax impact, which can be calculated by multiplying the additional taxable income ($5 million - $2.5 million) by the tax rate of 40%, resulting in $1 million.
Next, we discount the cash flows to their present value using the cost of capital of 12%. We can calculate the present value of the cash flows by discounting the increase in revenue, the increase in cost of goods sold, and the tax impact over the relevant period.
Finally, we subtract the present value of the cash outflows (increase in cost of goods sold and tax impact) from the present value of the cash inflows (increase in revenue) to obtain the net present value. If the NPV is positive, it indicates that the credit sales decision is expected to create value for the firm.
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An asset’s class established its ____________ for tax purposes.
Multiple Choice
A. discount rate
B. required return
C. net present value
D. life
E. salvage value
An asset's class established its life for tax purposes. Option D is correct.
An asset's class refers to the category or classification it falls into for tax purposes. The class determines the useful life of the asset, which is the period over which it is expected to provide value to the business. The tax authorities assign specific classes to different types of assets based on their characteristics and expected lifespan.
The assigned life of the asset is crucial for tax calculations, including depreciation deductions. By establishing the asset's class and its corresponding life, tax authorities can determine the appropriate depreciation schedule and deductions for tax purposes, ensuring accurate reporting of the asset's value over its useful life. Option D is correct.
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you value your microeconomics textbook at $100. someone else (e.g., one of your classmates) values it at $125, and that person is willing to pay you $120 for your textbook. would selling your textbook to this person for $120 be pareto efficient? a. maybe, because even though you gain from the trade and he loses, there is the potential for you to compensate him for his loss. b. yes, because both of you are better off as a result of the trade. c. no, because you did not receive the maximum amount the other person would have been willing to pay for the textbook. d. no, the person paid you $120 for the book so his net benefit was only $5, whereas your net benefit was $20. for this change to be pareto efficient, each of you should have the same net benefit.
The correct answer is option C). No, selling your textbook to this person for $120 be pareto is not efficient because you did not receive the maximum amount the other person would have been willing to pay for the textbook.
Pareto efficiency is achieved when it is not possible to make one individual better off without making another individual worse off. In this scenario, selling the textbook for $120 would not be Pareto efficient because the other person was willing to pay $125 for it. By accepting $120, you are not maximizing the potential gain from the trade, and the other person would have been willing to pay more. Option c is correct.
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macon company has a variable selling cost. if sales volume increases, how will the total variable cost and the variable cost per unit behave? total variable cost variable cost per unit a. increase increase b. increase remain constant c. increase decrease d. remain constant decrease e. decrease increase
Macon Company has a variable selling cost. If sales volume increases, then how will the total variable cost and the variable cost per unit behave?The answer to the given question is: Option E. Decrease Increase
If the sales volume increases, the company's total variable cost will decrease because the cost per unit will decrease. In this case, the company will be able to benefit from economies of scale.The variable cost per unit will increase because the company will have to produce more units to meet the increased sales demand.
This means that the company will need to purchase more raw materials, pay more wages to its workers, and consume more energy to produce more goods. As a result, the cost per unit will increase.
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at present the market competition of diapers is
becoming increasingly fierce . In order to maintain an advantage in
the fierce market competition what aspects of market research do
you think P&G n
Procter & Gamble (P&G) is one of the largest manufacturers of consumer products in the world. As a result of its strong competition, it needs to carry out several market researches. Let's look at some of the aspects of market research that P&G needs to carry out.
Market competition: The intense competition in the market for diapers has an impact on P&G. To stay ahead of its competitors, P&G must first understand the nature of the market and the competition. It will help P&G to increase its competitive advantage.Market research: P&G should conduct market research to keep track of consumer preferences, market trends, and customer behavior. This research will help P&G to understand the requirements of its customers better. P&G must find out what its customers want and need. It will help P&G to come up with new products and services that meet the needs of the consumers. The company must also keep track of the competition to stay ahead and come up with innovative ideas.Market segmentation: P&G must determine its target audience for its diapers and other products. It will help P&G to cater to a specific market segment, and it can design its products to meet the requirements of that segment.Conclusion: Procter & Gamble (P&G) needs to carry out several aspects of market research to stay ahead of its competitors. They should keep track of the competition, conduct market research, and determine its target audience.
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Today is 1 July, 2022. Rajesh is planning to purchase a corporate bond with a coupon rate of j2 = 6.05% p.a. and face value of $1 000. This corporate bond matures at par. The maturity date is 1 July, 2024. The yield rate is assumed to be j2 = 3.29% p.a. Assume that this corporate bond has a 3.83% chance of default in the first six-month period (i.e., from 1 July 2022 to 31 December 2022) and this corporate bond has a 3.2% chance of default in any six-month period during the term of the bond except the first sixmonth (i.e., 3.2% chance of default in any six-month from 1 January 2023 to 1 July 2024). Assume also that, if default occurs, Rajesh will receive no further payments at all. Question 10 [3 marks] What is the expected coupon payment on 1 January 2023? a. $28.160 5 b. $28.620 6 c. $29.282 0 d. $29.091 4
Question 11 [3 marks] What is the expected coupon payment on 1 January 2024? a. $25.957 2 b. $28.160 5 c. $27.082 0 d. $27.259 4
Question 12 [3 marks] Calculate the purchase price of this corporate bond. Round your answer to three decimal places. a. $923.741 b. $950.522 c. $978.875 d. $983.198
A) To calculate the expected coupon payment on 1 January 2023, we need to consider the probability of default and the coupon rate. Since the bond has a 3.83% chance of default in the first six-month period, there is a 96.17% chance of no default. Therefore, the expected coupon payment is calculated as (coupon rate * face value * (1 - probability of default)) = (6.05% * $1,000 * 0.9617) = $29.0914.
B) Similarly, to calculate the expected coupon payment on 1 January 2024, we consider the probability of default for the remaining periods. Since the bond has a 3.2% chance of default in each six-month period from 1 January 2023 to 1 July 2024, the probability of no default is 1 - 0.032 = 0.968. Thus, the expected coupon payment is (coupon rate * face value * probability of no default) = (6.05% * $1,000 * 0.968) = $27.2594.
C) To determine the purchase price of the corporate bond, we need to discount the expected cash flows to their present value. Since the bond matures on 1 July 2024, the purchase price is the present value of the expected coupon payment on 1 January 2023 and the face value received on the maturity date. Using the yield rate of 3.29%, we can discount the cash flows and calculate the present value using the formula: Purchase price = (expected coupon payment / [tex](1 + yield rate)^t) + (face value / (1 + yield rate) ^t)[/tex], where t is the number of periods. Plugging in the values, we find that the purchase price is $978.875, rounded to three decimal places.
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The powerpoint guides appear as dotted lines on the slide and usually intersect at the ____ of the slide
Answer:center
Explanation:
POR reported sales of five million dollars and is showing a return on equity of ten percent with a total assets turnover ratio of 2.5. If POR's capital structure consist of 60 percent equity and 40% debt, determine PQR's net income. Select one:
a. $124,000
b. $95,400
c. $111,234
d. $88,500
e. $120,000
PQR's net income will be $120,000. The correct answer is option e.
To determine POR's net income, we can use the formula:
Net Income = Return on Equity * Total Equity
First, we need to calculate POR's total equity. Since the capital structure consists of 60% equity and 40% debt, we can calculate the total equity as a percentage of total assets:
Equity = 60% * Total Assets
Next, we need to calculate Total Assets using the Total Assets Turnover Ratio:
Total Assets = Sales / Total Assets Turnover Ratio
Now we can substitute the given values:
Total Assets = $5,000,000 / 2.5
Total Assets = $2,000,000
Equity = 60% * $2,000,000
Equity = $1,200,000
Finally, we can calculate the net income:
Net Income = 10% * $1,200,000
Net Income = $120,000
Therefore, PQR's net income is $120,000.
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Zack Armstrong owns and operates Armstrong Employment Services. On January 1, 2019, Zack Armstrong, Capital had a balance of $210,000. During the year, Zack invested an additional $25,000 and withdrew $18,000. For the year ended December 31, 2019, Armstrong Employment Services reported a net income of $12,500. Prepare a statement of owner's equity for the year ended December 31, 2019.
Statement of Owner's Equity for the Year Ended December 31, 2019:
Zack Armstrong, Capital, January 1, 2019 $210,000
Add: Additional Investments $25,000
Total Capital at the Beginning of the Year $235,000
Less: Withdrawals ($18,000)
Net Income $12,500
Total Decrease in Capital ($5,500)
Zack Armstrong, Capital, December 31, 2019 $229,500
The statement of owner's equity summarizes the changes in the owner's capital during the year. In this case, Zack Armstrong's capital at the beginning of the year was $210,000. He made an additional investment of $25,000 during the year, which increased his capital. However, he also withdrew $18,000, which decreased his capital.
The net income for the year, which represents the profit earned by the business, was $12,500 and further increased Zack's capital. After considering the withdrawals and net income, the total decrease in capital for the year was $5,500. Therefore, Zack Armstrong's capital at the end of the year, December 31, 2019, amounted to $229,500.
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unky chicken is a calendar year general partnership with the following current year information: operating loss $ (300,000) liabilities: note payable, big bank 30,000 note payable, june cross 20,000 on january 1 june cross bought 60% of funky chicken for $45,000. how much of the operating loss may cross deduct currently? assume the excess business loss limitation does not apply.
June Cross may deduct $180,000 of the operating loss currently based on their 60% ownership in Funky Chicken.
In a general partnership, the operating loss is allocated to the partners based on their respective ownership percentages. In this case, June Cross bought 60% of Funky Chicken for $45,000 on January
To calculate the amount of the operating loss that June Cross may deduct currently, we need to consider the ownership change that occurred during the year. For the period before June Cross's acquisition, the operating loss is allocated based on the previous ownership percentages.
Assuming that the ownership percentages remained constant before June Cross's acquisition, the operating loss of $300,000 would be allocated as follows: 40% to the previous partners and 60% to June Cross. Therefore, June Cross can deduct $180,000 (60% of $300,000) of the operating loss currently.
It's important to note that this calculation assumes a simple allocation based on ownership percentages and does not take into account any special provisions or agreements outlined in the partnership agreement.
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Joseph & Alexander is a sustainable clothing brand based in the UAE that turns recycled plastic into swimwear and lifestyle apparel. It offers distinctive and unique clothes for the whole family (woman, men and children). It is a family-run business that creates 'unique swimwear with a conscience'. It tackles critical world issues with quirky, sustainable, durable apparel. They have worked with a range of large companies including Emirates Airline. Prices range from 100 to 400 AED. Identify and justify two elements of the promotions mix you would use for this company in the UAE market.
Two elements of the promotions mix you would use for Joseph & Alexander in the UAE market is Advertising and public relations.
Two elements of the promotions mix you would use for Joseph & Alexander, a sustainable clothing brand based in the UAE that turns recycled plastic into swimwear and lifestyle apparel, are Advertising and Public Relations (PR).
Advertising: Joseph & Alexander is a new brand and needs advertising in the UAE market to make consumers aware of the brand and the products they offer. Advertising is essential to promoting brand awareness and increasing sales. It is an effective way to spread the word about Joseph & Alexander's unique and sustainable products. Advertising can be done through various media such as TV, radio, newspapers, billboards, and social media.Public Relations (PR): PR is another crucial element of the promotions mix for Joseph & Alexander. PR is the management of communication between the company and the public. It is essential to maintain a good reputation in the market. A PR campaign would be beneficial in creating buzz for the company. PR can be used to raise awareness about Joseph & Alexander's products, ethical practices, and commitment to sustainability.By using PR, Joseph & Alexander can develop a positive reputation among consumers and gain trust and credibility with the public.
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Job Costs, Ending Work in Process During March, Estes Company worked on three jobs. Data relating to these three jobs follow: Job 86 Job 87 Job 88 210 200 280 200 $940 220 $2,860 Units in each order U
The total cost of Job 78 and Job 79 are $3,870 and $5,841. The per-unit price of Job 78 and Job 79 is $32.25 and $32.45.
To calculate the consistent with-unit price of Jobs 78 and 79, we need to don't forget the overall fees incurred for each job and divide it with the aid of the range of gadgets in each process.
For Job 78:
Total Cost = Materials + Direct Labor + Overhead
Total Cost = $768 + $1,980 + (132 hours x $8.50)
Total Cost = $768 + $1,980 + $1,122
Total Cost = $3,870
Per-Unit Cost of Job 78 = Total Cost / Units in Job 78
Per-Unit Cost of Job 78 = $3,870 / 120 devices
Per-Unit Cost of Job 78 = $32.25 in step with unit
For Job 79:
Total Cost = Materials + Direct Labor + Overhead
Total Cost = $990 + $3,168 + (198 hours x $eight.50)
Total Cost = $990 + $3,168 + $1,683
Total Cost = $5,841
Per-Unit Cost of Job 79 = Total Cost / Units in Job 79
Per-Unit Cost of Job 79 = $5,841 / 180 gadgets
Per-Unit Cost of Job 79 = $32.45 in step with unit
Therefore, the according to-unit fee of Job 78 is $32.25 and the per-unit price of Job 79 is $32.45.
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The correct question is:
For 2021, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business interest expense. It has average annual gross receipts of more than $26,000,000 over the prior three taxable years.
a. What is MSU's interest expense deduction for 2021?
b. How much interest expense can be deducted for 2021 if MSU's adjusted taxable income is $300,000?
MSU's interest expense deduction for 2021 is $172,000. If MSU's adjusted taxable income is $300,000, the interest expense deduction for 2021 would be $112,000.
a. interest income = $22,000
adjusted taxable income = $500,000.
The business interest expense limitation rules, which were implemented by the Tax Cuts and Jobs Act (TCJA) in 2017, have restrictions on MSU's interest expense deduction for 2021. The deduction is typically capped at 30% of the business's adjusted taxable income plus the sum of business interest income.
Interest Expense Deduction = Business Interest Income + (30% × Adjusted Taxable Income)
= $22,000 + (0.30 × $500,000)
= $22,000 + $150,000
= $172,000
b. taxable income for 2021 = $300,000
Interest Expense Deduction = Business Interest Income + (30% × Adjusted Taxable Income)
= $22,000 + (0.30 × $300,000)
= $22,000 + $90,000
= $112,000
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What is the relationship between accounting costs, opportunity costs and the degree of contribution (i.e. productivity) of an input ? How does productivity influence an economy’s standard of living and corresponding economic growth ? Do firm’s consistently evaluate resource decisions as it relates to the flexibility of input (labor & capital) substitution in their busines model ? Explain.
Accounting costs are the costs that are recorded in a company's financial statements. Opportunity costs are the cost of the foregone opportunity when one alternative is chosen over another. On the other hand, productivity is the amount of output generated by an input. These three concepts are related in various ways.
The relationship between accounting costs, opportunity costs, and the degree of contribution (i.e., productivity) of an input: Accounting costs are used to measure the cost of an input, while opportunity costs are used to measure the cost of not using that input for something else. Opportunity cost is the cost of the best alternative foregone while making a decision. In other words, opportunity cost is the cost of the next best alternative forgone when a decision is made. The degree of contribution (productivity) of an input is the output produced per unit of input used by the firm. The degree of contribution depends on the combination of labor and capital used by the firm. Therefore, the firm should use the most efficient combination of labor and capital to produce output at the lowest cost.
How does productivity influence an economy’s standard of living and corresponding economic growth?
Productivity measures the efficiency with which inputs are converted into output. A high level of productivity is an indicator of high efficiency and economic growth. Increased productivity means more output can be produced with the same amount of input. This increase in productivity can lead to higher economic growth and, as a result, higher standards of living.Firms and resource decision evaluation:Resource decision evaluation is an important task for a firm to evaluate the resources required for its operations. Firms should always consider the flexibility of input (labor and capital) substitution when making resource decisions. A firm must choose the optimal combination of labor and capital that will result in the most efficient output and lowest cost. As the business environment changes, firms may need to adjust their resource decisions to remain competitive.
Therefore, the flexibility of input substitution is a critical consideration for firms.
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Question 27 Third Wave is not characterized by: O personal choice O hegemony individual empowerment sexual agency
The Third Wave is not characterized by hegemony. Hegemony refers to the dominance or influence of one social group or ideology over others.
It emphasizes individual empowerment, sexual agency, and personal choice. The Third Wave seeks to create a more inclusive and intersectional feminism that recognizes and addresses the experiences and struggles of individuals across various identities, such as race, class, sexuality, and disability.
Rather than reinforcing hegemonic power, the Third Wave aims to deconstruct and challenge traditional norms and systems of oppression, promoting social justice and equality.The Third Wave, which emerged in the late 20th century as part of feminist movements, is focused on challenging and dismantling existing power structures and inequalities.
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Preparing the quarterly cash budgets of the next year, obtained the flowwing sales forecasts from the marketing department, indicate if there is a need of cash borrowing, if yes compute the need of loan:
1.Quarter 2.Quarter 3.Quarter 4.Quarter 1.Quarter of
Year After
Sales Forecasts 18.000 U. 20.000 U. 25.000 U. 22.000 U. 30.000 U.
Unit sale price will be $18 and expected to collect 1/2 cash ¼ 1 month, 2 months later. In the production of one unit end product 4 units of direct material will be used. Marketing department needs a 15% end product stock of the following period sales at the end of every period. Manufacturing department needs a 20% direct material stock of the material to be used in the following period production at the end of every period. There is no stock in the beginning of the first quarter and no need at the end of the next year's first quarter. Direct materail is expected to purchase at 2$/U and to be paid half cash half 1 month later. Direct labor is budgeted as the half of the direct material cost and will be paid in cash. Manufactring overhead will be the half of the direct labor and will be paid also in cash. There is no cash in the beginning, and no need at the end of year.
To determine the cash borrowing needs, we need to calculate the cash inflows and outflows for each quarter based on the given information.
Quarterly Cash Budgets:
Quarter:
Sales Forecast: 18,000 units
Unit Sale Price: $18
Cash Collection: 1/2 cash in the quarter, 1/4 cash in the following month, 2/4 cash two months later
Cash Inflow: (18,000 * $18 * 1/2) + (18,000 * $18 * 1/4) + (18,000 * $18 * 2/4) = $486,000
Direct Material Usage: 4 units per end product
End Product Stock: 15% of the following period's sales forecast
Direct Material Stock: 20% of the following period's direct material usage
Direct Material Purchase Price: $2 per unit
Direct Labor Cost: Half of the direct material cost
Manufacturing Overhead: Half of the direct labor cost
Cash Outflow:
Direct Material Purchase: (18,000 * 4 * $2) = $144,000
Direct Labor Cost: (144,000 / 2) = $72,000
Manufacturing Overhead: (72,000 / 2) = $36,000
Total Cash Outflow: $252,000
Net Cash Flow for Quarter 1: Cash Inflow - Cash Outflow = $486,000 - $252,000 = $234,000
Quarter:
Sales Forecast: 20,000 units
Unit Sale Price: $18
Cash Collection: 1/2 cash in the quarter, 1/4 cash in the following month, 2/4 cash two months later
Cash Inflow: (20,000 * $18 * 1/2) + (20,000 * $18 * 1/4) + (20,000 * $18 * 2/4) = $540,000
Direct Material Usage: 4 units per end product
End Product Stock: 15% of the following period's sales forecast
Direct Material Stock: 20% of the following period's direct material usage
Cash Outflow:
Direct Material Purchase: (20,000 * 4 * $2) = $160,000
Direct Labor Cost: (160,000 / 2) = $80,000
Manufacturing Overhead: (80,000 / 2) = $40,000
Total Cash Outflow: $280,000
Net Cash Flow for Quarter 2: Cash Inflow - Cash Outflow = $540,000 - $280,000 = $260,000
Quarter:
Sales Forecast: 25,000 units
Unit Sale Price: $18
Cash Collection: 1/2 cash in the quarter, 1/4 cash in the following month, 2/4 cash two months later
Cash Inflow: (25,000 * $18 * 1/2) + (25,000 * $18 * 1/4) + (25,000 * $18 * 2/4) = $675,000
Direct Material Usage: 4 units per end product
End Product Stock: 15% of the following period's sales forecast
Direct Material Stock: 20% of the following period's direct material usage
Cash Outflow:
Direct Material Purchase: (25,000 * 4 * $2) = $200,000
Direct Labor Cost: (200,000 / 2) = $100,000
Manufacturing Overhead: (100,000 / 2) = $50,000
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An agent has a 7% exclusive listing on a seller's home. The listing will expire in 12 days. A second agent, whose share of the comm of the property. Knowing that the listing expires soon and with a buyer ready to make an offer, the second agent calls the seller directly. the seller wait 2 weeks and then sign a new listing with the second agent. At that time the second agent will present the buyer's offer. The S second agent would make 5% instead of 3%. Is this proposal legal and why or why not?
The proposal of the second agent is not legal as this is a breach of ethics that regulates real estate transactions. The first agent was the exclusive agent to handle the sale of the property and as such, he has the sole right to handle the listing for the next 12 days before it expires.
If the seller waits for the listing to expire, it becomes a legal issue to go ahead and deal with another agent.The second agent in the above scenario also called the seller directly, which is not a professional approach to handling a real estate transaction. Even if the listing were to expire, the second agent still does not have the right to present the buyer's offer to the seller.
This is an act of betrayal, and the first agent would be legally protected. Hence, the proposal of the second agent is not legal as this is a breach of ethics that regulates real estate transactions.
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How can the concept of the prisoners’ dilemma be used to analyze
price competition?
The concept of the prisoners’ dilemma can be used to analyze price competition. The prisoners’ dilemma is a game theory scenario in which two parties acting in their own self-interest do not lead to the optimal outcome.
In price competition, businesses that are competing with one another may be tempted to lower prices to attract more customers, leading to a price war that can hurt all participants in the long run. This is similar to the prisoners’ dilemma scenario, where both parties end up worse off if they both choose the option that seems best for themselves.
The prisoners’ dilemma can be used to analyze price competition by demonstrating the importance of cooperation and communication between competitors.
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If the allocation sequence is changed in a step-down method cost allocation, which of the following will be affected?
A. Support department direct costs
B. Support department indirect (allocated) costs
C. Patient service department direct costs
D. Patient service department indirect (allocated) costs
F. Total costs of the organization (all departments combined)
G. Both (a) and (c)
H. Both (b) and (d)
If the allocation sequence is changed in a step-down method cost allocation, Support department indirect costs and Patient service department indirect costs will be affected. Option H is the correct answer.
The act of identifying and allocating expenses to the cost items in your organization, such as goods, projects, or even a full department or separate corporate branch, is known as cost allocation. Option H is the correct answer.
The step technique, sometimes referred to as the step down approach, divides the expense of a service department among other service departments and operational departments, in contrast to the direct method. A sequential approach is used for cost allocation in the step technique. In the beginning, the price of the service department that offers the most support to other service departments is allocated, and in the end, the cost of the service department that offers the least support is allocated.
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The theory of the firm assumes that the firm's ultimate objective is to make as large a profit as possible. Ideally, for any given amount of output the firm might want to sell, it would prefer to set price as high as it could, however, the firm's demand curve limits what the price could be. How, then, is the optimal output determined? Answer the question using the concepts of marginal revenue (MR) and marginal cost (MC).
The optimal output for a firm is determined by comparing the marginal revenue (MR) and marginal cost (MC). The firm maximizes its profit by producing the quantity where MR equals MC.
In the theory of the firm, profit maximization is the primary objective. To determine the optimal output level, the firm compares the marginal revenue it earns from selling an additional unit of output with the marginal cost of producing that unit.
Marginal revenue (MR) represents the change in total revenue resulting from selling one more unit of output. It is calculated as the derivative of the total revenue function with respect to quantity.
Marginal cost (MC) represents the change in total cost resulting from producing one more unit of output. It is calculated as the derivative of the total cost function with respect to quantity.
The firm's goal is to find the quantity at which the additional revenue generated from selling one more unit (MR) equals the additional cost incurred from producing that unit (MC). This is known as the profit-maximizing level of output.
If MR is greater than MC, producing an additional unit of output will add more to revenue than it adds to costs, resulting in an increase in profit. In this case, the firm should increase its output.
If MC is greater than MR, producing an additional unit of output will add more to costs than it adds to revenue, resulting in a decrease in profit. In this case, the firm should decrease its output.
The optimal output level occurs where MR equals MC, as this is the point where the firm maximizes its profit. At this quantity, the firm has balanced the additional revenue and cost associated with producing and selling one more unit.
The optimal output level for a firm is determined by comparing the marginal revenue (MR) and marginal cost (MC). The firm seeks to maximize its profit by producing the quantity where MR equals MC. This ensures that the firm is balancing the additional revenue and cost associated with each unit of output, resulting in the highest possible profit.
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Please help it's urgent
The net realisable value is often lower than the cost of the product is damaged or obsolete (out of date). Select one: O True O False
Due to the net realisable value refers to the estimated selling price of an item, less the cost of any necessary repairs and less the cost of selling the item, the statement is true.
It reflects the price that a seller can reasonably expect to receive for goods or services, after deducting the costs of selling those goods or services. Damaged or obsolete products are typically sold at a lower price than undamaged, up-to-date products.
This means that the net realisable value of such products will be lower than the cost of the product itself. In conclusion, the net realisable value of damaged or obsolete products will likely be lower than their original cost, which makes the statement true.
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You are sending a package worth £20,000. You estimate that there is a 0.1% chance that the package will be lost or destroyed in transit. An insurance company offers you insurance against this eventuality for a premium of £15. If you are risk-neutral, should you buy insurance? Explain.
if you are risk-neutral, you should buy insurance. This is because, as per the information given, the insurance cost is far lesser than the cost of the item being sent.
When sending a package worth £20,000, you estimate that there is a 0.1% chance that the package will be lost or destroyed in transit. An insurance company offers you insurance against this eventuality for a premium of £15.
Insurance policy covers individuals from financial loss resulting from risks that are covered by the policy purchased. Therefore, buying insurance ensures that one is protected from a loss that may be incurred as a result of a specific risk
. For £15, you will be saving a huge sum of £20,000 in case of the item being lost or destroyed in transit. If the event happens and the package is lost or destroyed, you can get the full amount paid by the insurance company and thus suffer no loss.
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3. On April1, 2017 JHJ Shoe Company purchased a 12-month insurance policy for $1,200. Required: Record the entry to purchase the insurance policy on April1. Also, recorded the adjusting required at December31, 2017. 4. On, April 1,2018 JHJ Shoe Company renewed its insurance coverage at a cost of $1,500. Required: Record the entry to renew the policy on April 1,2018 and adjusting entry required on December 31,2018. Your adjusting entry should reflect the balance in the prepaid insurance account on January 1,2018. 5. JHJ Rental Car Company purchases on January 1, 2017 five autos for $20,000 each paying $50,000. The autos will be depreciated over a 4-year useful life. Required: Record the acquisition of the autos on January 1, 2017. Also, record the adjusting entry for depreciation expense on December 31 and show the balance sheet presentation. 6. Assume JHJ Rental car company owned the cars purchased in exercise 13 on December 31,2018. Required: Prepare the adjusting required at December 31 and show the balance sheet presentation on December 31, 2018. 7. Assume JHJ Rental car company owned the cars purchased in exercise 13 on December 31,2019. Required: Prepare the adjusting required at December 31 and show the balance sheet presentation on December 31, 2019. 2 8. Assume JHJ GameStop in 2017 receives from 1,000 customers $50 for NBA2K18. At December 31, 900 customers have picked up their games. Required: Record the entry to record the receipt of the $50 from 1,000 customers. Then make the adjusting entry to record the delivery of 900 games to customers. 9. Assume JHJ GameStop in 2017 receives from 3,000 customers $100 for NBA2K18. At December 31, 2,500 customers have picked up their games. Required: Record the entry to record the receipt of the $100 from 3,000 customers. Then make the adjusting entry to record the delivery of 2,500 games to customers. Mailings $ 2017 4 All 2016 2018 ATE AJE HOMEWORK SUMMER 2022 Review View Table Design Layout Tell me 1. Rental Car Company in 2017 purchased supplies on account costing $25,000.00 At the end of the year supp on hand totaled $5,000.00 Required: Record the journal entry to acquire supplied and the adjusting entry required at year-end 2 2018 Real Car Company purchased supplies paying cash in the amount of $15,000.00 and purchased an additional $20,000.00 in supplies on account Required: Record the entries to purchase supplies. Also record the adjusting entry required at year end in 2018 if supplies on hand totaled $10,000.00. Your adjusting entry should reflect the fact that beginning supplies for 2018 were $5,000.00. (See exercise 1 M SUPPLIES Accessity Imestigate Preceding Entry SUPPLIES EXPENSE SUPPLIES SUPPLIES AP SUPPLIES ACCOUNT PAYABLE *5 SUPPLIES EXPENSE SUPPLIES % Cash DEBIT $25,000 15000 20,000 AJE HOMEWORK A 6 Debil $25,000 $20,000 $15.000 30,000 Supplies & 87 Credit 7 $25,000 $20,000 $15,000 MacBook Pro 20,000 $30,000 49 Purchase of supplies On accoun Alt-used supplies Purchase of supplies Purchase of supplies On account CREDIT $20,000 30,000 *CO 8 O 9 Shad
1. On April 1, 2017, JHJ Shoe Company purchased a 12-month insurance policy for $1,200. The entry to purchase the insurance policy on April 1, 2017, would be:
April 1, 2017:
Prepaid Insurance $1,200
Cash $1,200
The adjusting entry required at December 31, 2017, would be:
December 31, 2017:
Insurance Expense $1,000
Prepaid Insurance $1,000
2. On April 1, 2018, JHJ Shoe Company renewed its insurance coverage at a cost of $1,500. The entry to renew the policy on April 1, 2018, would be:
April 1, 2018:
Prepaid Insurance $1,500
Cash $1,500
The adjusting entry required at December 31, 2018, would reflect the balance in the prepaid insurance account on January 1, 2018.
1. The main answer consists of two parts. The first part addresses the initial purchase of the insurance policy on April 1, 2017, where JHJ Shoe Company paid $1,200 for a 12-month policy. The entry records the increase in the prepaid insurance asset and the decrease in cash.
The second part focuses on the adjusting entry required at December 31, 2017. By the end of the year, 9 months would have passed, so the remaining prepaid insurance balance is $1,000 ([$1,200/12] × 9 months). This adjusting entry recognizes the insurance expense incurred during the year and reduces the prepaid insurance asset accordingly.
2. The second step describes the renewal of the insurance policy on April 1, 2018, where JHJ Shoe Company pays $1,500 for another 12-month coverage. The entry records the increase in the prepaid insurance asset and the decrease in cash.
The adjusting entry required at December 31, 2018, takes into account the prepaid insurance balance from the previous year. If the prepaid insurance account had a balance of $1,000 at the beginning of the year, the adjusting entry would recognize the insurance expense incurred during the year as the remaining prepaid insurance balance.
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Please explain why it is important to design such maximum time
limits of custody in the Constitution by referring to the legal
situation in BELGIUM please do not make it too long. PLEASE TALK
ABOUT TH
Overall, designing maximum time limits of custody in the Constitution is crucial to safeguard individual rights, prevent abuses, and promote a fair and just legal system.
Setting maximum time limits of custody in the Constitution is important for several reasons. First, it helps protect the fundamental rights and freedoms of individuals. By defining the maximum duration of custody, it ensures that individuals are not unjustly deprived of their liberty for an indefinite period. This promotes the principle of legality and ensures that detention is only used when necessary and proportionate.
In the context of Belgium, establishing maximum time limits of custody in the Constitution provides legal safeguards against potential abuses of power by law enforcement and judicial authorities. It prevents excessive pre-trial detention and helps maintain a balance between the interests of justice and the rights of the accused.
Furthermore, incorporating maximum time limits of custody into the Constitution enhances legal certainty and predictability. It allows individuals and legal practitioners to have a clear understanding of the maximum duration they can be held in custody, which contributes to a fair and transparent legal system.
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Question 1
a) Within an IS-LM model, what scope do public authorities have to influence output and employment? Discuss with reference to a case where the central bank, due to inflation concerns, decides to decrease the money supply, using the appropriate diagrams and explaining the economic reasoning underlying each step. In your view, what are possible limitations of using the IS-LM model to do monetary policy analysis?
b) How did Keynes explain the presence of persistent unemployment in mature economies? Does it matter for policy-making? Discuss.
a) Within the IS-LM model, public authorities like the central bank can influence output and employment through monetary policy. Decreasing the money supply due to inflation concerns leads to higher interest rates, reduced investment and consumption, and ultimately lower output and employment.
b) Keynes explained persistent unemployment as a result of aggregate demand deficiency, where insufficient spending leads to firms not hiring all available labor. This understanding emphasizes the importance of active government intervention through fiscal policy to stimulate demand and reduce unemployment.
a) Within an IS-LM model, public authorities, such as the central bank, have the ability to influence output and employment through monetary policy. In the case of the central bank deciding to decrease the money supply due to inflation concerns, it would implement a contractionary monetary policy. This can be depicted in the IS-LM diagram, where the decrease in the money supply shifts the LM curve to the left. As a result, interest rates rise, leading to a decrease in investment and consumption expenditure, ultimately reducing output and employment. The economic reasoning behind this is that higher interest rates discourage borrowing and spending, which dampens overall economic activity.
Possible limitations of using the IS-LM model for monetary policy analysis include:
Simplified assumptions: The IS-LM model makes certain simplifying assumptions, such as a fixed price level, closed economy, and a stable relationship between interest rates and investment. These assumptions may not accurately reflect real-world complexities and dynamics.
Incomplete representation of the financial sector: The model does not fully capture the intricacies of the financial sector, such as the role of banks, credit intermediation, and financial market interactions. These factors can significantly influence the transmission mechanism of monetary policy.
Expectations and forward-looking behavior: The IS-LM model does not explicitly incorporate the role of expectations and how they shape economic decisions. In reality, expectations about future events, such as policy changes or economic shocks, can impact investment and consumption decisions, which are crucial for policy effectiveness.
b) Keynes explained the presence of persistent unemployment in mature economies through the concept of aggregate demand deficiency. He argued that recessions and high unemployment could persist even when prices and wages are flexible. According to Keynes, the level of aggregate demand plays a vital role in determining employment. Insufficient aggregate demand leads to a situation where firms do not find it profitable to hire all available labor, resulting in persistent unemployment.
The presence of persistent unemployment matters for policy-making as it highlights the need for active government intervention to stimulate aggregate demand and address unemployment. Keynesian economics suggests that during economic downturns, fiscal policy measures like increased government spending and tax cuts can boost aggregate demand and help reduce unemployment.
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resh cut corporation purchased all the outstanding common stock of premium meats for $10,600,000 in cash. the book values and fair values of premium meats' assets and liabilities were as follows: book value fair value accounts receivable $ 1,100,000 $ 900,000 equipment 7,800,000 9,200,000 patents 160,000 1,000,000 notes payable (1,300,000) (1,300,000) net assets $ 7,760,000 $ 9,800,000 required: 1. calculate the amount fresh cut should report for goodwill. 2. record fresh cut's acquisition of premium meats.
Goodwill 1,500,000 debit
increasein FV equipment - Premium meat 1,400,000 debit
increase in FV Patents - Premium meat 1,400,000 debit
Investment Premium Meats 7,900,000 debit
cash 12,000,000 credit
decrease in fair value A/R -Premium Meat 200,000 credit
cost: 12,000,000
fair value of the company: 10,500,000
goodwill 1,500,000
The investment account will be valued at book value because it is anticipated that the fair value difference will disappear over time due to depreciation, amortization, and other factors. The entry will recognize the goodwill and the increase or decrease in fair value to match the price of acquisition.
The value a business receives from its brand, customer base, and popularity in relation to its high-end property is referred to as goodwill. Goodwill is a long-term asset that accumulates value over time for a business. Patents and goodwill, in contrast to tangible assets like homes, equipment, and land, are intangible because they lack a physical form.
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Malaysian Island Resort. Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is RM1,049/day. The Malaysian ringgit presently trades at RM3.1350/$. She determines that the dollar cost today for a 30-day stay would be $10,038.28. The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living. Malaysian inflation is
expected to be 2.773% annum, while U.S. inflation is expected to be 1.203%
a. How many dollars might Theresa expect to need one year herice to pay for
b. By what percent will the dollar cost have gone up? Why?
her 30-day vacation?
a. How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?
The amount Theresa might expect to need one year hence to pay for her 30-day vacation is
$ (Round to the nearest cent.)
b. By what percent will the dollar cost have gone up?
The percentage the dollar cost will have gone up is %. (Round to three decimal places.)
Why has the dollar cost changed by this percentage? (Select the best choice below.)
A. The dollar cost has risen by the Malaysian ringgit inflation rate. This is a result of Theresa's estimation of the future suite costs and the exchange rate changing in proportion to inflation (relative purchasing power parity).
B. The dollar cost has risen by the U.S. dollar inflation rate. This is a result of Theresa's estimation of the present suite costs and the exchange rate changing in proportion to inflation (relative purchasing power parity).
OC. The dollar cost has risen by the U.S. dollar inflation rate. This is a result of Theresa's estimation of the future suite costs and the exchange rate changing in proportion to inflation (relative purchasing power parity).
OD. The dollar cost has risen by the U.S. dollar inflation rate. This is a result of Theresa's estimation of the future suite costs and the exchange rate not changing in proportion to inflation (relative purchasing power parity).
A. The amount Theresa might expect to need one year hence to pay for her 30-day vacation is $10,038.28. B. The dollar cost will have gone up by 2.77%.
a. To calculate the amount of dollars Theresa might expect to need one year hence to pay for her 30-day vacation, we need to consider the present cost in Malaysian ringgit and the exchange rate. The present cost for a luxury suite plus meals is RM1,049/day. Since Theresa plans to stay for 30 days, the total cost in Malaysian ringgit would be 30 * RM1,049 = RM31,470.
To convert this amount to dollars, we multiply it by the exchange rate of RM3.1350/$: RM31,470 * (1/$3.1350) = $10,038.28.
Therefore, Theresa might expect to need $10,038.28 one year hence to pay for her 30-day vacation.
b. To calculate the percentage by which the dollar cost will have gone up, we need to consider the expected inflation rates. The Malaysian inflation rate is 2.773% per annum, and the U.S. inflation rate is 1.203% per annum.
Over a year, the Malaysian inflation rate would increase the cost in Malaysian ringgit by 2.773%. However, the hotel has stated that any increase in its room charges will be limited to the increase in the Malaysian cost of living. Therefore, we can assume that the cost in Malaysian ringgit will increase by the same rate as the Malaysian inflation rate.
To calculate the dollar cost increase, we multiply the current dollar cost ($10,038.28) by the percentage increase: $10,038.28 * (2.773/100) = $278.38.
The percentage increase is then calculated by dividing the dollar cost increase by the current dollar cost and multiplying by 100: ($278.38/$10,038.28) * 100 = 2.77% (rounded to three decimal places).
Therefore, the dollar cost will have gone up by 2.77%.
C. The dollar cost has risen by the U.S. dollar inflation rate. This is a result of Theresa's estimation of the future suite costs and the exchange rate changing in proportion to inflation (relative purchasing power parity).
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A stock paid $2.64 in dividends at the end of last year and is expected to pay a cash dividend until infinity. Each year the dividends are expected to grow by 6.6%. Investors require a 9% rate of return. What is value of the common stock?
Based on available information, the value of the common stock is approximately US$110.
To calculate the value of common stock, you can use the Gordon Growth Model, also known as the Dividend Discount Model (DDM). The formula for the Gordon growth model is:
Stock Value = Dividend / (Yield – Dividend Growth Rate)
Considering the information provided, it looks like this:
Dividend (D0) = $2.64 (dividend at the end of last year)
Dividend growth rate (g) = 6.6% or 0.066
Return (r) = 9% or 0.09
Substitute these values into the formula.
Stock value = $2.64 / (0.09 – 0.066)
Stock value = $2.64 / 0.024
Stock value ≈ $110
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