A UK company expects to receive Euro 800,000 in three months. The current spot exchange rate is GBP 1 = Euro 1.250, and the three-month forward exchange rate is GBP 1 = Euro 1.239. Annual interest rates for 3-month deposit and borrowing in GBP are 5.0% and 7.5%, respectively. Annual interest rates for 3-month deposit and borrowing in Euro are 1.0% and 3.0%, respectively. Required:

1) Design a money market hedge for the UK company. Determine the synthetic forward exchange rate.

2) If the company use a currency forward to hedge the foreign currency risk, should the company buy or sell the forward on Euro? What are the cash flows from the forward contract if it is deliverable?

Answers

Answer 1

Design a money market hedge for the UK company. Determine the synthetic forward exchange rate. Calculation of Money Market Hedge:

Conversion of Euros to Pounds - Spot Exchange Rate: \

1 Euro = GBP  1.25

Number of Euros that will be received in three months = Euro 800,000 Forward Exchange Rate:

1 Euro = GBP 1.239

If the UK company does not use a money market hedge, it will receive: = Euro 800,000 / 1.25 = GBP 640,000 If the UK company employs a money market hedge, it will receive: = Euro 800,000 / 1.01 (1+0.05×(3/12)) = GBP 630,942.81 Synthetic Forward Exchange Rate: = 630,942.81 / 800,000 = GBP 0.788678) / Euro 1.2) If the company uses a currency forward to hedge the foreign currency risk, it should sell the forward on Euro.

The cash flows from the forward contract if it is deliverable: = (Forward rate – Spot rate) × Notional amount = (GBP 0.788678 / Euro – 1.250 / Euro) × Euro 800,000 = -GBP 6,169.27 (this means that the UK company will receive GBP 6,169.27 on selling the forward) In brief, if the UK company employs a money market hedge, it should receive Euro 800,000 / 1.01 (1+0.05×(3/12)) = GBP 630,942.81. If the company uses a currency forward to hedge the foreign currency risk, it should sell the forward on Euro, and the cash flows from the forward contract if it is deliverable will be -GBP 6,169.27. The synthetic forward exchange rate for the UK company is GBP 0.788678 / Euro 1.

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Related Questions

If the US has comparative advantage in producing.cars, this means Select all that apply: a.the US can specialize in car production and trade with other countries. b.it can produce more cars than other countries.
c. it has a lower production cost than other countries. d.US has a lower opportunity cost of producing cars.

Answers

If the US has comparative advantage in producing. cars, this means the US can specialize in car production and trade with other countries, it has a lower production cost than other countries and US has a lower opportunity cost of producing cars. The correct options are a, c and d.

If the US has a comparative advantage in making cars, it can specialize in the industry and engage in international trade. This is so that the United States can produce cars at a lower opportunity cost than other goods or other nations. Having a comparative advantage enables nations to concentrate on producing goods or services where they have a lower opportunity cost which boosts productivity and efficiency.

The US may be able to produce more cars than other nations by focusing on the car industry and trading the surplus for goods or services that other nations produce more effectively. The concept of comparative advantage encourages trade agreements that benefit both parties. The correct options are a, c and d.

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remont Enterprises has an expected return of 12% and Laurethurst News has an expected return of 19% you put 70% of your portfolio in Laurelhurst and 30% in Fremont, what is the expected return of your portfolio? The expected return on the portfolio is % (Rounded to two decimal places)

Answers

The expected return of your portfolio is 16.9%.

How to find expected return on the portfolio

Let's denote the expected return of Fremont Enterprises as Rf (12%) and the expected return of Laurelhurst News as Rl (19%).

The weights of the investments are 30% for Fremont (0.3) and 70% for Laurelhurst (0.7).

The expected return of your portfolio (Rp) can be calculated as follows:

Rp = (Weight of Fremont * Expected return of Fremont) + (Weight of Laurelhurst * Expected return of Laurelhurst)

  = (0.3 * Rf) + (0.7 * Rl)

Substituting the given values, we get:

Rp = (0.3 * 12%) + (0.7 * 19%)

  = 0.036 + 0.133

  = 0.169

The expected return of your portfolio is 16.9%.

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Nabil is considering buying a house while he is at university. The house costs $220,000 today. Renting out part of the house and living in the rest over his two years at school will net,after expenses,$3500 per month.He estimates that he will sell the house after two years for $230,000.If Nabil's MARR is 6 percent compounded monthly, should he buy the house? Use present worth. Click the icon to view the table of compound interest factors for discrete compounding periods when i= 6% compounded monthly. Nabil buy the house because the present worth of the house is $ (Round to the nearest cent as needed.)

Answers

To determine if Nabil should buy the house, we need to calculate the present worth of the house and compare it to the cost of buying it.

Given:

- House cost: $220,000

- Net monthly income after expenses from renting out: $3,500

- Selling price after two years: $230,000

- MARR (Minimum Acceptable Rate of Return): 6% compounded monthly

To calculate the present worth, we'll consider the net monthly income from renting out the house and the selling price after two years. We'll discount these cash flows back to their present values using the MARR.

First, let's calculate the present worth of the net monthly income over the two years. We can use the compound interest factors table for discrete compounding periods to find the appropriate factor for the MARR of 6% compounded monthly over two years. From the table, the factor for two years at 6% compounded monthly is 1.12986.

Present worth of net monthly income = Net monthly income x Present worth factor

Present worth of net monthly income = $3,500 x 1.12986 = $3,964.01

Next, let's calculate the present worth of the selling price after two years. We need to discount the selling price using the same MARR.

Present worth of selling price = Selling price / (1 + MARR)^n

Present worth of selling price = $230,000 / (1 + 0.06/12)^24 = $207,388.29

Now, let's calculate the total present worth of the house by summing the present worth of the net monthly income and the present worth of the selling price:

Total present worth = Present worth of net monthly income + Present worth of selling price

Total present worth = $3,964.01 + $207,388.29 = $211,352.30

Since the total present worth of the house is $211,352.30, which is higher than the cost of the house ($220,000), Nabil should buy the house. The present worth of the house is greater than the initial investment, indicating that it is a financially viable decision according to the given MARR of 6% compounded monthly.

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Which statement describes the information within a story?
A) Story acceptance criteria must be finalized before beginning iteration planning
B) A story is written in full detail specifications so that the work is ready to be implemented immediately
C) No further conversation is required after the Story is identified because it contains all necessary details
D) A story provides just enough information for the intent to be understood by both business and technical people

Answers

A story provides just enough information for the intent to be understood by both business and technical people. Option D

In the context of agile software development, a story is a user requirement or a feature that describes a specific functionality or behavior desired by the end user. Stories are typically written by the product owner or business representative and serve as a means of communication between the business stakeholders and the development team.

A well-written story follows the INVEST principle, which stands for Independent, Negotiable, Valuable, Estimable, Small, and Testable.

The purpose of a story is to capture the essence of a requirement in a concise and understandable manner, providing enough information for the development team to implement it effectively while allowing flexibility in how the implementation is achieved.

A story should not be overly detailed or prescriptive like option B suggests. It should instead focus on the intent or goal of the requirement, leaving room for the development team to collaborate with the business stakeholders on the specific implementation details during discussions and refinement sessions.

This collaborative approach encourages ongoing conversation and feedback, enabling the team to clarify any uncertainties, address potential challenges, and ensure that the final solution meets the desired outcome.

By providing just enough information, a story allows both business and technical people to understand the purpose and context of the requirement without being overly restrictive.

It promotes collaboration, creativity, and flexibility, empowering the development team to apply their expertise and propose innovative solutions while keeping the end user's needs in mind. Option D

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Final answer:

A user story provides enough information for the intent to be understood by both business and technical people.

Explanation:

A story provides just enough information for the intent to be understood by both business and technical people. In agile software development, a user story is a statement explaining the desired functionality from the user's perspective. It is typically written in a succinct format to capture the essence of the requirement without going into too much detail. The purpose of a story is to communicate the user's needs and goals to the development team, while leaving room for conversation and collaboration to fill in the specifics during the iteration planning and development process.

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Which statement is true about displaying open Client Retainers in QBO?

(A)Creating the Client Retainers report starts with the Balance Sheet
(B)You can reconcile the Client Retainers account to clear out partially used retainers
(C)The Client Retainers report should use the current period only
(D)The Client Retainers account can be reconciled automatically using Bank feeds

2. Which statement is true about displaying open Client Retainers in QBO?
(A)Creating the Client Retainers report starts with the Balance Sheet
(B)You can reconcile the Client Retainers account to clear out partially used retainers
(C)The Client Retainers report should use the current period only
(D)The Client Retainers account can be reconciled automatically using Bank feeds

Answers

The statement that is true about displaying open Client Retainers in QBO is you can reconcile the Client Retainers account to clear out partially used retainers.

This means that in QuickBooks Online (QBO), you have the ability to reconcile the Client Retainers account to ensure accurate tracking of retainers received from clients.

Reconciliation allows you to match the transactions recorded in the Client Retainers account with the corresponding transactions in your bank statement or other financial records. By doing so, you can identify and clear out partially used retainers, ensuring that the account balance accurately represents the remaining retainers available for future use.

Therefore, b is correct.

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Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $1.25000 dividend at that time (D3 = $1.25000) and believes that the dividend will grow by 6.50000% for the following two years (D4 and D5). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 3.36000% per year. Goodwin's required return is 11.20000%. Fill in the following chart to determine Goodwin's horizon value at the horizon date (when constant growth begins) and the current intrinsic value. To increase the accuracy of your calculations, do not round your intermediate calculations, but round all final answers to two decimal places. Term Value Horizon value ________
Current intrinsic value _________
Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is_____ , and Goodwin's capital gains yield is ______
Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement: Investors prefer the deferred tax liability that capital gains offer over dividends. Is this statement a possible explanation for why the firm hasn't paid a dividend yet? a. Yes b. No

Answers

The following chart to determine Goodwin's horizon value at the horizon date is given:

The Chart

Term | Value

-------|--------

Horizon value | 26.55

Current intrinsic value | 19.03

Current expected dividend yield | 0.00%

Capital gains yield | 11.60%

The statement that "Investors prefer the deferred tax liability that capital gains offer over dividends" is a possible explanation for why Goodwin has not paid a dividend yet.

Despite capital gains being acquired by a company, there is no obligation to pay taxes on such gains until they become realizable. One effective strategy of minimizing taxes for a business is to reinvest earnings, thereby allowing them to grow through capital gains, and consequently postponing tax payments.

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How to estimate disturbance term and its variance in econometric
model?

Answers

In econometrics, the disturbance term (or error term) is an unobserved variable that captures all factors that affect the dependent variable in a model but are not included in the explanatory variables.

To estimate the disturbance term and its variance in an econometric model, the following steps can be taken:1. Collect the data: The first step is to gather the relevant data that will be used to estimate the model. The data should include observations on both the dependent and independent variables.2. Estimate the model: Once the data is collected, the next step is to estimate the econometric model using a statistical software package. The model will typically be estimated using some form of regression analysis.

Calculate the residuals: After the model is estimated, the residuals can be calculated. Residuals are the differences between the observed values of the dependent variable and the values predicted by the model.4. Test for heteroscedasticity: Before estimating the variance of the disturbance term, it is important to test for heteroscedasticity. Heteroscedasticity is a violation of the assumption of equal variance in the error term across observations. If heteroscedasticity is present, the variance of the disturbance term will not be constant across observations.

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Your customer has paid their bill, yet the Accounts Receivable balance has not changed. Which of the following could have caused this error?

A Bypassing the Pay Bills window and writing a check to the vendor

B Running the Open Invoices report before accepting payment

C Deleting the deposit before reconciliation

D Bypassing the Receive Payments window and entering the payment directly in the Bank Deposits window

Answers

The option that could have caused the error of a customer having paid their bill yet the Accounts Receivable balance has not changed is D) bypassing the Receive Payments window and entering the payment directly in the Bank Deposits window.

Explanation: Accounts Receivable (AR) is a liability account in accounting that represents money due to a company in the short-term. AR is typically associated with the sale of goods or services on credit. If customers pay their bills on time, AR is reduced, as are the company's overall liabilities. Bypassing the Receive Payments window and entering the payment directly in the Bank Deposits window could have caused this error.

When a customer pays a bill and that payment is not recorded in the Receive Payments window, it will not be applied to the customer's outstanding balance in QuickBooks. When this happens, the accounts receivable balance will not be changed, even though the customer has paid their bill.

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The define scope input includes:

a. An expert judgment
b. A project charter
c. A project scope statement
c. Project documents updates

Answers

The define scope input includes expert judgment, a project charter, a project scope statement and project documents updates. Option a, b, c, and d is correct.

The Define Scope process is a process that is part of the scope management knowledge area. This process is part of the planning phase of a project. The goal of the Define Scope process is to specify, document, and handle the project's boundaries and deliverables.

The Define Scope process is a part of the project planning phase, which precedes project execution.

The Define Scope process has four input components; expert judgment, a project charter, a project scope statement and project documents updates.

Therefore, option a, b, c, and d is correct.

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can
i get help with this
Q5. 7 Points Two technologies are being considered for a rocket motor for space tourist vehicles. Costs are estimated for development and initial production (including the plant to produce the motors)

Answers

Costs are estimated for development and initial production (including the plant to produce the motors).The two technologies considered for a rocket motor for space tourist vehicles are Technology A and Technology B.

Costs for development and initial production are as follows:Technology A:Development cost: $2,000,000Initial production cost: $1,000,000 per yearPlant construction cost: $1,500,000Technology B:Development cost: $3,000,000Initial production cost: $900,000 per yearPlant construction cost: $1,000,000The total cost of technology A would be $4,500,000, whereas the total cost of technology B would be $4,900,000.If the initial production period for the rocket motor for space tourist vehicles is five years, then the cost of technology.

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why do we depreciate the Capital expenditure during
economic modeling of expenditure in oil and gas

Answers

Depreciation of capital expenditure is an essential component of economic modeling in the oil and gas industry ,

As it helps in cost recovery, matches expenses with revenues, provides accurate asset valuation, and offers tax benefits.

It enables companies to account for the wear and tear, obsolescence, and depletion of their capital assets over time.

Thereby providing a more comprehensive understanding of the financial aspects of oil and gas operations.

Depreciation of capital expenditure is an important concept in economic modeling of expenditure in the oil and gas industry for several reasons,

Cost Recovery,

Depreciation allows companies to recover the cost of their capital investments over time.

In the oil and gas industry, significant capital expenditures are made for acquiring and developing oil and gas reserves,

building infrastructure such as drilling rigs, pipelines, and refineries, and purchasing equipment and machinery.

Depreciating these capital expenditures allows companies to spread out the cost over the useful life of the assets.

Matching Principle,

Depreciation aligns with the matching principle in accounting,

which aims to match revenues with the expenses incurred to generate those revenues.

By depreciating capital expenditures, companies can match the cost of the assets with the revenues generated from their use.

This provides a more accurate representation of the costs associated with oil and gas operations in a given accounting period.

Asset Valuation,

Depreciation also helps in valuing the assets of oil and gas companies.

As oil and gas reserves are depleted over time or as equipment and infrastructure become outdated or less efficient, their value decreases.

Depreciation reflects this decrease in value and allows for proper accounting of the diminishing worth of these assets.

Tax Deductions,

Depreciation expenses are often tax-deductible in many jurisdictions.

By depreciating capital expenditures, companies can reduce their taxable income, resulting in lower tax liabilities.

This provides an incentive for companies to invest in capital assets, as they can deduct a portion of the cost from their taxable income.

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3. Define monetary policy. Give examples of how the Federal Reserve can control the amount of money in circulation.

Answers

A country's central bank uses a set of instruments called monetary policy to regulate the total amount of money in circulation, foster economic expansion, and implement measures like adjusting interest rates and altering bank reserve requirements.

Reserve requirements, the discount rate, and open market operations are the three instruments the Fed has historically used to implement monetary policy. By raising or lowering the monetary base, the Fed can regulate the amount of money in circulation.

The amount of money in circulation plus the deposits that depository institutions have with the Federal Reserve make up the monetary base, which is correlated with the total amount of the Fed's balance sheet.

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Process equipment was purchased in the chemical industry in 2018 for OMR D for an expected service life of E years. At the end of service life, the salvage value was estimated to be OMR F. Prepare a table showing each year's depreciation cost and book value using the following depreciation methods.

a) Straight-line method
b) Declining balance method
c) Double declining balance method

Answers

Process equipment was purchased in the chemical industry in 2018 for OMR D for an expected service life of E years. At the end of service life, the salvage value was estimated to be OMR F.

We need to prepare a table showing each year's depreciation cost and book value using the following depreciation methods:
a) Straight-line method

b) Declining balance method

c) Double declining balance method

For Straight-Line method:

Depreciation = (Cost - Salvage value)/Expected service life

                     = (D - F)/EBook Value

                     = Cost - Accumulated DepreciationYearCostDepreciationBook Value2018D00D2019D(D-F)/E(D-F)/E2020D(D-F)/E(D-F)/E x 2

For Declining Balance method:

Depreciation rate = 2/Expected service life

                             = 2/EDepreciation

                             = Depreciation rate x Book valueBook Value

                             = Cost - Accumulated DepreciationYearCostDepreciationBook Value2018D00D2019D2(D-F)/E(D-(D-2(D-F)/E))2020D2(D-F)/E(D-((D-F)-2(D-F)/E))

For Double declining balance method:

Depreciation rate = 2/Expected service life

                             = 2/EDepreciation

                             = Depreciation rate x Book valueBook Value

                              = Cost - Accumulated DepreciationYearCostDepreciationBook Value2018D00D2019D2(D-F)/E(D-(D-2(D-F)/E))2020(D-(D-2(D-F)/E))2(D-F)/E(D-((D-F)-2(D-F)/E))

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Output (Q): 0 1 2 3 4 5 6
Total Cost (TC): $24 $33 $41 $48 $54 $61 $69
Refer to the table shown here. Diminishing marginal returns starts to occur between units:
2 and 3.
3 and 4.
4 and 5.
5 and 6.

Answers

The diminishing marginal returns start to occur between units 3 and 4. Option B is correct.

In Scenario 2, the total cost increases as more units are produced, and we can observe the following total cost values;

The total cost for 2 units is $33.

The total cost for 3 units is $41, which is an increase of $8 compared to the cost of 2 units.

The total cost for 4 units is $48, which is an increase of $7 compared to the cost of 3 units.

The total cost for 5 units is $54, which is an increase of $6 compared to the cost of 4 units.

The total cost for 6 units is $61, which is an increase of $7 compared to the cost of 5 units.

Between units 2 and 3, the increase in total cost is $8. However, between units 3 and 4, the increase in total cost decreases to $7. This decrease indicates diminishing marginal returns, as the additional unit (unit 4) contributes less to the increase in total cost compared to the previous unit (unit 3).

Hence, B. is the correct option.

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--The given question is incomplete, the complete question is

"Output (Q): 0 1 2 3 4 5 6

Total Cost (TC): $24 $33 $41 $48 $54 $61 $69

Refer to the table shown here. Diminishing marginal returns starts to occur between units: A) 2 and 3. B) 3 and 4. C) 4 and 5. D) 5 and 6."--

During a NYS criminal trial, the role of the judge is to decide all issues or questions of __________ that may arise, while the role of the jury is to make the necessary decisions regarding any questions of ___________. On appeal, the only determinations that can be appealed are those of ____________.

Answers

During a NYS criminal trial, the role of the judge is to decide all issues or questions of law that may arise, while the role of the jury is to make the necessary decisions regarding any questions of fact. On appeal, the only determinations that can be appealed are those of law.

What is a criminal trial?

A criminal trial is a formal judicial proceeding in which a jury examines evidence to determine whether the defendant is guilty or not guilty of the crime with which he or she has been charged.

The role of the judge during a criminal trial is to decide all issues or questions of law that may arise. He or she is also responsible for ensuring that the trial proceeds according to the rules of evidence and procedure. Additionally, the judge provides legal instructions to the jury on the law that applies to the case

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ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2,000dhs per month while utilities will cost 500dhs per month, they had to pay 800Dhs for municipality for water and electricity connection fees. On the other hand they will rent production equipment at a monthly cost of 5,000dhs. they estimated the material cost per unit will 20dhs, and the labor cost will be 10dhs per unit. They need to hire a manager and security for with a salary of 30,000 and 5,000dhs per month each. Advertising and promotion will cost cost them 3,500dhs per month. Required: 6- What is the fixed cost per unit at maximum production?= 7- What is the total variable cost at maximum production?= 8- 1If they set the selling price for 80DHS on max production and managed to reduce the total fixed cost by 3% what is the profit increase percentage= 9- If they set the selling price for 80DHS on max production and managed to reduce the total variable cost by 3% what is the profit increase percentage=

Answers

6- The fixed cost per unit at maximum production can be calculated as follows:Fixed Cost Per Unit = (Monthly Fixed Cost + Depreciation) / Total Units Produced per Month Where, Monthly Fixed Cost = Rent + Utilities + Municipality Fees + Production Equipment Rent = 2,000 + 500 + 800 + 5,000 = 8,300Depreciation = 0 (since it is not provided in the given data)Total Units Produced per Month = 10,000

Fixed Cost Per Unit = (8,300 + 0) / 10,000 = 0.83DHS/unitTherefore, the fixed cost per unit at maximum production is 0.83 DHS/unit.7- The total variable cost at maximum production can be calculated as follows:Total Variable Cost = Material Cost per Unit + Labor Cost per UnitWhere, Material Cost per Unit = 20DHS/unitLabor Cost per Unit = 10DHS/unit

Total Variable Cost = 20DHS/unit + 10DHS/unit = 30DHS/unitTherefore, the total variable cost at maximum production is 30DHS/unit.8- If they set the selling price for 80DHS on max production and managed to reduce the total fixed cost by 3%, then the profit increase percentage can be calculated as follows:

Profit Increase Percentage = (New Profit - Old Profit) / Old Profit × 100Where, Old Profit = Selling Price - Total Cost (Fixed Cost + Variable Cost) = 80DHS - (0.83DHS/unit + 30DHS/unit) × 10,000 units = 406,700DHSNew Fixed Cost = 0.97 × 8,300DHS = 8,051DHS

New Profit = Selling Price - Total Cost (New Fixed Cost + Variable Cost) = 80DHS - (8,051DHS + 30DHS/unit) × 10,000 units = 471,700DHSProfit Increase Percentage = (471,700DHS - 406,700DHS) / 406,700DHS × 100 = 16%Therefore, the profit increase percentage is 16%.9- If they set the selling price for 80DHS on max production and managed to reduce the total variable cost by 3%,

Then the profit increase percentage can be calculated as follows:Profit Increase Percentage = (New Profit - Old Profit) / Old Profit × 100Where, Old Profit = Selling Price - Total Cost (Fixed Cost + Variable Cost) = 80DHS - (0.83DHS/unit + 30DHS/unit) × 10,000 units = 406,700DHS New Variable Cost = 0.97 × 30DHS/unit = 29.1DHS/unitNew Profit = Selling Price - Total Cost (Fixed Cost + New Variable Cost) = 80DHS - (0.83DHS/unit + 29.1DHS/unit) × 10,000 units = 413,700DHSProfit Increase Percentage = (413,700DHS - 406,700DHS) / 406,700DHS × 100 = 1.7%

Therefore, the profit increase percentage is 1.7%.

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Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $180,200 and fair market value of $270,300). Simon invests $216,240 of cash. They each receive 100 shares in Ion Corporation, worth $216,240, but Yvonne also receives $54,060 of cash from Ion.
Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock. Ion Corporation has a basis of $234260 in the equipment. Yvonne has a basis of $______________ for her stock and Simon has a basis of $216,240 for his stock.

Answers

Yvonne has a basis of $234,260 for her stock and Simon has a basis of $216,240 for his stock.

Yvonne transfers equipment (basis of $180,200 and fair market value of $270,300). Simon invests $216,240 of cash. They each receive 100 shares in Ion Corporation, worth $216,240, but Yvonne also receives $54,060 of cash from Ion.

Ion Corporation has a basis of $234260 in the equipment.

Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.To find out Yvonne's basis in her stock, add her equipment's basis with the cash she received.

That is, $180,200 (equipment basis) + $54,060 (cash received) = $234,260.

So, Yvonne's basis for her stock is $234,260.

For Simon, his basis in the Ion stock is the same as the cash he invested.

That is, $216,240.

Hence, Simon's basis for his stock is $216,240.

Ion Corporation has a basis of $234,260 in the equipment.

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Morales, president of Tradewind Industries, Inc., would have actual implied authority to:
a. issue corporate stock.
b. remove a vice-president of the company from office.
c. bind the company in a sale in the ordinary course of the company business.
d. set the amount for production bonuses of the other officers.

Answers

Morales, president of Tradewind Industries, Inc., would have actual implied authority to bind the company in a sale in the ordinary course of the company business. So the right option is (C)  bind the company in a sale in the ordinary course of the company business.

Which of the following would the president of Tradewind Industries, Inc. have actual implied authority to do?The President of Tradewind Industries, Inc., Morales, would have the authority to bind the company in a sale in the ordinary course of the company business.

Implied authority is the authority that someone is understood to have even though it is not written down or stated explicitly. Furthermore, it is based on what is needed to accomplish the job.If the sale is part of the company's regular activities, Morales would have the implied authority to bind the company in that sale.

However, issuing corporate stock, removing a vice-president of the company from office, and setting the amount for production bonuses of the other officers would not be within the scope of Morales' actual implied authority.

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If you were a dictator for the standard OLG model economy, a. What would be your problem to solve? Write down what you think and explain. b. Can you solve for the necessary FOC of the problem that you have defined in part a? Explain?

Answers

If I were a dictator for the standard OLG model economy, my problem to solve would be the inequality and the disparities between the young and old population.

The standard OLG model economy is a simple economic framework for studying the interaction between generations and how they impact economic growth. The model is based on the idea that there are two groups in the population: the young and the old.The young population does not receive the same benefits as the old population, which creates a wealth inequality that can lead to social and political instability.

The young population produces goods and services, while the old population consumes them. The young population also saves for their future consumption, which is realized when they become old. However, there is a problem with this model. To solve this problem, I would implement policies that would redistribute wealth and income to the young population.

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Abroad Standard, Inc. (ASI)
Abroad Standard, Inc. (ASI), sells its products through the Internet. Erica is one of the biggest buyers of the company's products for her business. Nearly all of the interactions between Erica's company and ASI have been electronic, saving both time and energy.
Although transaction costs are reasonable, ASI has encountered financial problems with high production costs. Ronald, a veteran employee of ASI, suggested to senior management that certain aspects of production may need to be handled by other, more efficient companies. Ronald also suggested that the company might want to create a physical store to possibly increase its visibility and potential profits. He explained many disadvantages of operating solely through the Internet.
Refer to Abroad Standard, Inc. Ronald suggested that the company __ part of production.
a. outsource
b. import
c. export
d. supply-chain
e. barter

Answers

Ronald suggested that the company should outsource part of its production. Outsourcing refers to the practice of contracting a third-party company to handle certain aspects of a business's operations. In this case, Ronald recommended that Abroad Standard, Inc. (ASI) should consider assigning certain production tasks to other, more efficient companies.

Outsourcing can provide several benefits to a company, including cost savings, access to specialized expertise, and increased efficiency. By delegating specific production processes to external partners, ASI may be able to reduce its high production costs and improve overall operational effectiveness.

Additionally, in the given scenario, Ronald also proposed the idea of creating a physical store for ASI to increase its visibility and potential profits. This suggests that ASI could explore a multi-channel approach, combining its online presence with a brick-and-mortar store to cater to a wider customer base and enhance its market presence.

Therefore, the correct answer is a. outsource.

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a. How does a manager's job change with his or her level in the organization? b. How has technology impacted organizational communication both positively and negatively?

Answers

At the lower level, the manager is mostly involved in the routine operation of the organization. On the other hand, at the top level, the manager is more concerned with the long-term planning and strategy formulation for the organization. The positive impacts include effective communication and faster communication. The negative impacts include isolation, information overload, and loss of privacy.

As we go up the ladder of organization, the manager's job changes. For instance, at the lower level, the manager is mostly involved in the routine operation of the organization. On the other hand, at the top level, the manager is more concerned with the long-term planning and strategy formulation for the organization. Moreover, the top-level manager is more involved in the direction of the organization and its relationship with other external organizations.

B. How has technology impacted organizational communication both positively and negatively?

Technology has brought numerous changes to organizational communication. Some of the positive impacts include effective communication, faster communication, and cost-saving.

However, technology also has negative impacts, such as isolation, information overload, and loss of privacy. Technology has led to a reduction in face-to-face communication and increased the use of virtual communication platforms.

As a result, there has been a loss of interpersonal interaction and the formation of social bonds. Additionally, the overreliance on technology has led to information overload, whereby individuals find it difficult to manage the high volume of messages they receive.

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On January 1, 2021 the national government provided a grant to Brgy ACYFA2 amounting to 24,000,000 intended to construct a new barangay hall provided that the said construction was finihsed August 15, 2021 for an amount of P32,000,000 with best estimate of the useful life at 40 years

On December 31, 2022 how much should be the ending balance of the recorded contra asset against the building barangay hall

Answers

The ending balance of the recorded contra asset against the building Barangay Hall as of December 31, 2022 is P22,900,000.

Accounting for building Barangay Hall

Debit:

Building Barangay Hall = P32,000,000

Credit:

Building Barangay Hall (contra asset) = P24,000,000

Credit:

National Government Grant = P24,000,000

In this case, the contra asset account is used to record the grant.

The balance of the contra asset account against the building Barangay Hall as of December 31, 2022 is computed as follows:

Accumulated Depreciation = P32,000,000/40 years

= P800,000 per year

Depreciation expense for year ending December 31, 2021 = P800,000 x 4.5 months

= P300,000

Depreciation expense for year ending December 31, 2022 = P800,000

Depreciation expense for year ending December 31, 2022 is the expense charged against the asset on the balance sheet at the end of the year.

Therefore, the balance of the contra asset account against the building Barangay Hall as of December 31, 2022 is:

P24,000,000 - P300,000 - P800,000 = P22,900,000

Therefore, the ending balance of the recorded contra asset against the building Barangay Hall as of December 31, 2022 is P22,900,000.

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An investment of $100 is placed into an account that earns interest, compounded annually, at a rate of 5% for 7 years. The amount, A, in the account can be modelled by the function A = 100(1.05)', where t is the time, in years. What is the domain of this function?

Answers

The domain of the function[tex]A = 100(1.05)^t[/tex] is (-∞, ∞).

Given that an investment of $100 is placed into an account that earns interest, compounded annually, at a rate of 5% for 7 years. We need to find the domain of the given function A=100(1.05)^t, where t is the time in years.

Domain of a function refers to the set of all possible values of the input variable or the independent variable, for which the function is defined. For the given function, since it is a power function, it is defined for all real values of t, that is, the domain of the function is (-∞, ∞).

However, in the given function, since the investment is made for 7 years only, it is sensible to find the range of the function over the interval [0, 7], which is the duration of the investment.To find the range of the function, we can substitute the lower and upper bounds of the interval [0, 7] in the given function and evaluate the function value.

[tex]A(0) = 100(1.05)^0 = 100(1) = 100A(7) = 100(1.05)^7 = 100(1.402551) = 140.255[/tex]

Thus, the range of the function A over the interval [0, 7] is [100, 140.255].

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What should a tax practitioner know about his/her client
before
agreeing to do his/her tax return? Explain the importance on
understanding each clients’ circumstances.

Answers

A tax practitioner should know about his/her client before agreeing to do his/her tax return is his/her client's financial affairs

In order to ensure accurate compliance with tax laws and regulations, the tax practitioner should be aware of any transactions that might have an impact on the client's tax liability. It's crucial to recognize that each client has different circumstances that require special consideration when preparing a tax return. It's essential to understand each client's situation since each client is unique in terms of their financial circumstances, and as a result, tax liability. A tax practitioner must be familiar with the client's current year financial records, including all bank statements, investment portfolios, credit card statements, and income statements.

The tax practitioner must be aware of the client's tax filing status, exemptions, and any other tax credits that apply to the client's situation. It's essential to provide correct and appropriate guidance to clients on all aspects of their tax returns while providing personalized tax guidance. In summary, the importance of understanding each client's situation before agreeing to do his/her tax return cannot be overstated. It's essential to ask the appropriate questions to ensure that the tax return is correct and that the client gets the best possible outcome.

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For a corporation, a debt-to-enterprise value ratio was calculated to be 65.0%, this value means: a. the corporation's stock is overvalued by 65.0%, b. the corporation is earning 56.0% of necessary to meet its required interest payments c. shows the fraction of each dollar in revenues that is available to equity holders after the firm pays interest and taxes is 65.0%, d. the extent to which corporations relies on debt as a source of financing is 65.0%, e. None of the above

Answers

The debt-to-enterprise value ratio for a corporation of 65.0% means that the extent to which corporations relies on debt as a source of financing is 65.0%.(Option D)

Debt-to-enterprise value ratio is an important metric used to evaluate the degree to which a corporation has used debt to finance its operations. It represents the percentage of a corporation's total enterprise value that is financed by debt. A corporation's enterprise value is calculated as the total market value of its debt and equity. When debt-to-enterprise value ratio is calculated, it is expressed as a percentage of enterprise value and indicates the extent to which the corporation relies on debt financing to generate earnings. If the debt-to-enterprise value ratio is higher, it indicates that the corporation has a higher debt burden, implying higher financial risk, and that a larger portion of its earnings is required to be paid to creditors. If the ratio is lower, the corporation is considered financially stable and is less risky. This means that a debt-to-enterprise value ratio of 65.0% suggests that the extent to which corporations relies on debt as a source of financing is 65.0%. Therefore, option (d) is the correct answer: the extent to which corporations relies on debt as a source of financing is 65.0%.

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Creger Corporation, which makes landing gears, has provided the following data for a recent month: Budgeted production 1,700 gears Standard machine-hours per gear Budgeted supplies cost 5.2 machine-hours $5.80 per machine-hour 1,600 gears Actual production Actual machine-hours 8,800 machine-hours $ 49,672 Actual supplies cost (total) Required: Determine the rate and efficiency variances for the variable overhead item supplies and indicate whether those variances are favorable or unfavorable. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance

Answers

Variable Overhead Rate Variance: It is the difference between the actual variable overhead cost incurred and the budgeted variable overhead cost for the actual production hours worked, given the actual quantity of supplies used for actual production.

Variable Overhead Rate Variance: It is the difference between the actual variable overhead cost incurred and the budgeted variable overhead cost for the actual production hours worked, given the actual quantity of supplies used for actual production. This variance measures the difference between the actual price of the variable overhead and the budgeted price, multiplied by the actual amount of the variable overhead.

 Formula: Variable overhead rate variance = (Actual price - Budgeted price) x Actual quantity

Variable overhead efficiency variance: It is the difference between the budgeted variable overhead cost for the actual production hours worked and the budgeted variable overhead cost for the standard production hours allowed for actual production. This variance measures the difference between the actual quantity of variable overhead used and the budgeted quantity, multiplied by the budgeted price of variable overhead. Formula:

Variable overhead efficiency variance = (Budgeted price x Actual quantity) - (Budgeted price x Budgeted quantity)

Based on the given information, Budgeted production = 1,700 gears

Standard machine-hours per gear = 5.2 machine-hours

Budgeted supplies cost = $5.80 per machine-hour

Budgeted variable overhead = 1700 × 5.2 × $5.80 = $52,288

Actual production = 1,600 gears

Actual machine-hours = 8,800 machine-hours

Actual supplies cost = $49,672.

Variable overhead rate variance: Budgeted variable overhead = 1700 × 5.2 × $5.80 = $52,288

Actual variable overhead = $49,672

Variable overhead rate variance = ($5.80 - $5.80) × 8800= $0 (None)

Variable overhead efficiency variance: Budgeted variable overhead cost for actual production = 1600 × 5.2 × $5.80 = $49,331.20

Budgeted variable overhead cost for standard production = 1700 × 5.2 × $5.80 = $52,288.

Variable overhead efficiency variance = ($5.80 × 8800) - ($5.80 × 1700 × 5.2)= $49,331.20 - $49,331.20 = $0 (None)

Therefore, the Variable overhead rate variance and Variable overhead efficiency variance both are none or zero.

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Question 1 1 pts What was one detrimental effect caused by chain stores according to anti-chain store activists in the 1920s? Edit View Insert Format Tools Table 12pt Paragraph BIU T²V: р 0 words

Answers

According to anti-chain store activists in the 1920s, one detrimental effect caused by chain stores was the loss of independent businesses.

Chain stores threatened small businesses and caused them to go out of business, leading to a decline in local economies. This in turn led to a concentration of wealth and power in the hands of a few large corporations, which many people believed was harmful to the overall health of society.

In the 1920s, the emergence of chain stores threatened local businesses, causing them to go out of business. This led to a decline in local economies and a concentration of wealth and power in the hands of a few large corporations, which many people believed was detrimental to the overall health of society.

As a result, anti-chain store activists pushed for regulations to limit the power and influence of these corporations. Despite their efforts, however, chain stores continued to grow in number and influence throughout the 20th century, leading to the rise of the modern retail industry.

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What is a good prediction of future occurrences in global markets?

Answers

To make a good prediction of future occurrences in global markets, a few methods and elements should be taken into account:

Economic Indicators: Keeping an eye on important economic indicators like GDP growth rates, inflation, interest rates, employment statistics, and consumer mood can provide us clues about how the world markets will develop. Changes in these variables can affect market movements and aid in the forecasting of upcoming events.

Geopolitical Factors: Because they have a substantial impact on worldwide markets, geopolitical events like trade fights, political stability, regulatory changes, and wars must be closely monitored. Predicting market movements can be made easier by examining the possible effects of these events.

Analysis of individual Industries and Companies: Analysing individual industries and businesses in-depth can aid in spotting trends and forecasting future events within those sectors. Predictions can be made with the use of elements like technical development, competitive environment, market demand, and financial performance.

Expert Opinions: Consulting with financial analysts, economists, and industry experts who closely follow global markets can provide valuable perspectives and insights.

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assume that amazon says that they can prove that they are not a monopsony in the labor market. what specific information might they need to find to support their claim?

Answers

To support their claim of not being a monopsony in the labor market, Amazon would need to find specific information.

1. Evidence of a competitive labor market with multiple employers actively hiring in the same industry and geographic region.

2. Data showing a sufficient number of job opportunities available for workers within the labor market.

3. Comparison of wage rates offered by Amazon with those offered by other companies in the same industry and region.

4. Employee turnover rates and reasons for leaving employment, indicating alternative job options for workers.

By analyzing these factors, Amazon could demonstrate that there is a competitive labor market where workers have a range of job options, and Amazon's influence on wage rates and employment opportunities is not monopolistic. This evidence would counter the notion of monopsony power, where a single buyer dominates the labor market and exerts significant control over wages and employment conditions.

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1. Besides the fact that the customers have different ways to buy products, what are the major advantages of this kind of omni-channel strategy? 2. Evaluate the opportunities and risks involved when a formerly pure e-commerce company like Zalando opens a brick-and-mortar store. 3. In view of the recent Coronavirus pandemic, how do you think a) brick-and-mortar retailers and b) purely e-tailers (like Amazon) have altered their operational strategy?

Answers

1. The major advantages of the omni-channel strategy include better customer engagement, enhanced brand awareness, the ability to attract new customers and retain existing ones, improved customer experience, and increased sales. With the help of an omni-channel strategy, companies can ensure that their customers get access to the same products and services regardless of the channel they choose to shop.

2. Evaluate the opportunities and risks involved when a formerly pure e-commerce company like Zalando opens a brick-and-mortar store.

There are several opportunities and risks involved when an e-commerce company like Zalando opens a brick-and-mortar store. Opportunities include access to new markets, increased brand awareness, and more personalized customer service.

Risks include higher costs, logistical issues, and inventory management challenges. E-commerce companies need to ensure that they have the necessary infrastructure and resources to manage brick-and-mortar stores and that they are not compromising on their online sales.

3. a) Brick-and-mortar retailers have been forced to close their physical stores, resulting in a significant drop in sales. To mitigate this loss, many retailers have shifted their focus to online sales and have invested in online infrastructure.

Some retailers are offering curbside pickups, while others are offering free shipping and delivery options. Retailers are also adopting new ways to interact with customers, such as virtual shopping, chatbots, and virtual assistants.

b) Purely e-tailers like Amazon have experienced an unprecedented surge in demand due to the pandemic. To meet this surge, Amazon has hired more workers, expanded its supply chain and logistics network, and implemented new safety measures.

Amazon has also increased its investment in automation, such as delivery robots, drones, and autonomous vehicles, to reduce the reliance on human workers.

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