Question 4 Consider the following three bonds: Bond P Bond Q Bond R $1,000 $1,000 $1,000 5.00% 5.50% 0% Par Value Coupon Rate Time to Maturity Required Yield 3 years 5 years 6 years 4.00% 7.00% 5.20%

Answers

Answer 1

The required yield on the bond is 5.20%. The bond is trading at par; hence, the bond's price is equal to its face value. The correct answer is 5.20% .

Bond P has a 5.00% coupon rate with a par value of $1,000 and a time to maturity of three years. The required yield on the bond is 4.00%. The yield is less than the coupon rate; hence the bond is trading at a premium. If the yield to maturity is equal to the coupon rate, the bond is priced at par. If the yield is greater than the coupon rate, the bond is trading at a discount. Bond Q has a 5.50% coupon rate with a par value of $1,000 and a time to maturity of five years. The required yield on the bond is 7.00%. The yield is greater than the coupon rate; hence the bond is trading at a discount. Bond R has no coupon payment with a par value of $1,000 and a time to maturity of six years.

The required yield on the bond is 5.20%. The bond is trading at par; hence, the bond's price is equal to its face value.

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Related Questions

On January 15, Tundra Co. sold merchandise to customers for cash of $41,000 (cost $28,000), Merchandise costing $10,600 was sold to customers for $15,600 on January 17; terms 2/10, n/30 Sales totallin

Answers

The transaction descriptions have corresponding journal entries found below:

.

The Journal Entries

January 15

General Journal

Date | Debit | Credit

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

15-Jan | Cash | 41,000

15-Jan | Sales | 41,000

15-Jan | Cost of Goods Sold | 28,000

January 17

General Journal

Date | Debit | Credit

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

17-Jan | Accounts Receivable | 15,600

17-Jan | Sales | 15,600

17-Jan | Cost of Goods Sold | 10,600

January 20

General Journal

Date | Debit | Credit

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

20-Jan | Accounts Receivable | 299,200

20-Jan | Sales | 299,200

20-Jan | Credit Card Expense | 5,984

20-Jan | Cost of Goods Sold | 203,000

January 25

General Journal

Date | Debit | Credit

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

25-Jan | Accounts Receivable | 74,000

25-Jan | Sales | 74,000

25-Jan | Debit Card Expense | 370

25-Jan | Cost of Goods Sold | 49,800

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The Complete Question

On January 15, Tundra Co. sold merchandise to customers for cash of $41,000 (cost $28,000). Merchandise costing $10,600 was sold to customers for $15,600 on January 17, terms 2/10, n/30. Sales totalling $299,200 (cost $203,000) were recorded on January 20 to customers using MasterCard; assume the credit card charges a 2% fee. On January 25, sales of $74,000 (cost $49,800) were made to debit card customers. The bank charges Tundra a flat fee of 0.5% on all debit card transactions. Required: Prepare journal entries for each of the transactions described (assume a perpetual Inventory system). View transaction list Journal entry worksheet 1 2 3 4 5 6 Record the sale of merchandise to cash customers. Note: Enter debits before credits. Date Jan 15 General Journal 7 8 Debit Credit

A director is hired to to manage a team that has had issues with productivity, efficiency, and morale. she takes time to get to know each of her employees personally, learning their strengths, weaknesses, and ambitions. she spends part of a day with each employee letting them train her on their jobs, so she can understand their day to day challenges. she quickly promotes experienced employees to line manager roles and publicly credits team members' important successes. she forms cross departmental alliances that benefit her cteam and improve the quality of work for the whole department. Her team becomes more efficient ,happier and better at solving problems. identify the type of political power demonstrated by the COO

Answers

The political power demonstrated by the COO in the given scenario is referent power.

Referent power is the capacity of a leader to persuade his or her followers to follow him or her based on the leader's personal characteristics and behaviors that attract the followers.

In the given scenario, the director took the time to get to know each of her employees personally and learn about their strengths, weaknesses, and ambitions.

She spent time with each employee to understand their day-to-day challenges and promoted experienced employees to line manager roles, and publicly credited team members for their important successes.

All of these actions of the director made her employees feel respected and appreciated, resulting in the creation of a stronger connection with the director. The director's actions can be seen as referent power as she is leading by example, creating a more positive workplace culture, which motivates the employees to work harder, be happier, and better at solving problems. As a result, her team becomes more efficient and effective.

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Standardized, reusable containers have obvious benefits for shipping. What is the purpose of these devices within the plant? Can you think of any other areas where standardization has benefited companies?

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To safeguard certain quantities, standardized containers are frequently employed. Additionally, they result in less wasteful space and weight, lower disposal costs, and require less effort to load, unpack, and prepare products.

Reusable containers were first sought in the automobile sector to standardize pack sizes and promote uniformity. It is easier to fit more on the trailer since the same product arrive consistently and no longer had variations in packaging. In the automobile sector, the majority of containers used for shipping are reusable, which also results in considerable cost savings compared to buying throw-away packaging.

There are many different sorts of things that may be shipped in a typical shipping container. The availability of the container for shipment and the location are just two of the numerous variables that affect the price of transporting a container. Although the cost of a shipping container may be lower in a metropolis than in a rural region, delivery costs may still be prohibitive.

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Assume that all banks are subject to a uniform 10 percent reserve requirement. A commercial bank receiving a new checkable (demand) deposit of $100 would be able to extend new loans in the amount of:
Group of answer choices
$10.
$90.
$100.
$1,000.

Answers

A commercial bank receiving a new checkable deposit of $100 would be able to extend new loans in the amount of $90.

The reserve requirement is the percentage of deposits that banks are required to hold as reserves and not loan out. In this case, the uniform reserve requirement is 10 percent.

When a new deposit of $100 is received, the bank is required to hold 10 percent of that amount as reserves. Therefore, the bank must hold $10 as reserves and can extend new loans using the remaining $90.

The bank is allowed to loan out a portion of the deposit because only a fraction is required to be held as reserves. In this case, the bank can extend new loans in the amount of $90, as $10 is reserved to meet the 10 percent requirement.

Hence, the correct answer is $90, as the bank can utilize $90 of the $100 deposit for new loans, while $10 is kept as required reserves.

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Managers in organizations that consistently communicated concern for workers' well-being and that focused on treating employees fairly reported feeling better about themselves and their role in the or

Answers

Research has established that a manager's attitude towards employee well-being can significantly impact the work environment's productivity and efficiency.

Managers in companies that have consistently demonstrated concern for workers' well-being and have focused on treating employees equitably have reported feeling better about themselves and their role in the organization. Being treated well by their managers improves employee engagement and loyalty to the company, resulting in higher work satisfaction. It also results in fewer employees taking sick leave, being absent, or quitting their jobs.

Managers who focus on promoting and maintaining their employees' well-being create a more positive work culture and are more likely to motivate employees to perform to the best of their abilities, which can lead to higher job satisfaction and employee retention.

Therefore, it is beneficial for a company to have a positive work environment that encourages and motivates its employees. By doing so, the company can create a culture of productivity and efficiency that enables it to compete with its competitors and build a reputation of being a desirable workplace.

In conclusion, managers who consistently demonstrate concern for their employees' well-being create a positive work environment and improve their employees' job satisfaction, ultimately leading to a more productive workplace.

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Which of the following is a method the Reserve Bank of Australia can use to conduct a more expansionary monetary policy?
Selling government bonds to banks, which increases banks' reserves
Purchasing government bonds to banks, which decreases banks' reserves
Purchasing government bonds from banks, which increases banks' reserves
Lowering the reserve requirement ratio on banks
Selling government bonds to banks, which decreases banks' reserves

Answers

The Reserve Bank of Australia can use the "lowering the reserve requirement ratio on banks" method to conduct a more expansionary monetary policy. The correct answer is option(d).

Lower the reserve requirement ratio on banks to conduct a more expansionary monetary policy. The Reserve Bank of Australia (RBA) is Australia's central bank, which is in charge of the nation's monetary policy. Monetary policy is a government's or central bank's process of controlling the supply of money in the economy to meet economic objectives such as low inflation, full employment, and economic stability.

The RBA can conduct a more expansionary monetary policy by reducing the reserve requirement ratio on banks. When the reserve requirement ratio is reduced, banks have more funds available to lend to customers, resulting in increased credit and money supply in the economy. This encourages customer spending, which boosts economic growth and contributes to job creation. The reserve requirement ratio, often known as the cash reserve ratio, is a government mandate that requires banks to keep a certain percentage of their total deposits as reserves.

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Congress would like to increase tax revenues by 5.5 percent. Assume that the average taxpayer in the United States earns $56,000 and pays an average tax rate of 20 percent. a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 5.5 percent increase in tax revenues? (Round your answer to 2 decimal places.)

Answers

If the income effect is in effect for all taxpayers, the average tax rate that will result in a 5.5 percent increase in tax revenues is 21.1%.

The average taxpayer in the United States earns $56,000 and pays an average tax rate of 20 percent. Congress would like to increase tax revenues by 5.5 percent. We need to determine the average tax rate that will result in a 5.5 percent increase in tax revenues.

In this case, we can use the formula for calculating tax revenues:

Tax Revenues = Average Tax Rate x Tax Base

We know that Congress would like to increase tax revenues by 5.5 percent. Therefore, the new tax revenues will be:

T2 = 1.055T1

where T1 is the old tax revenue and T2 is the new tax revenue.

We know that the average taxpayer earns $56,000 and pays an average tax rate of 20 percent. Therefore, the old tax revenue (T1) will be:

T1 = 0.2 x $56,000 = $11,200

Substituting T1 into the formula for T2, we get:

T2 = 1.055T1 = 1.055 x $11,200 = $11,824

Finally, we can substitute T1, T2, and the old tax base ($56,000) into the formula for calculating the average tax rate and solve for the new tax rate:

Tax Revenues = Average Tax Rate x Tax Base

$11,824 = Average Tax Rate x $56,000

Average Tax Rate = $11,824 / $56,000

Average Tax Rate = 0.211 or 21.1%

Therefore, the average tax rate that will result in a 5.5 percent increase in tax revenues is 21.1%.

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which type of restriction on quantity of imports is the most transparent? which type of restriction on quantity of imports is the most transparent? quota government procurement policies voluntary export restraints licensing requirements

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Among the types of restrictions on the quantity of imports, voluntary export restraints are generally considered the most transparent. Voluntary export restraints involve an agreement between the exporting and importing countries, where the exporting country voluntarily restricts the quantity of goods it exports to the importing country.

Voluntary export restraints are often seen as transparent because they involve a mutually agreed-upon arrangement between two countries. Both parties are aware of the restrictions being imposed, and the terms and conditions of the agreement are typically publicly disclosed. This transparency allows businesses and consumers to anticipate and plan for the limitations on imports.

In contrast, other types of restrictions on the quantity of imports may be less transparent. Quotas, for example, involve a fixed limit on the quantity of imports allowed, but the criteria for allocation and the decision-making process can be less clear. Government procurement policies, which prioritize domestic suppliers for government purchases, may also lack transparency if the criteria for selection are not clearly defined or open to public scrutiny.

Licensing requirements, on the other hand, can vary in transparency depending on the specific regulations and procedures in place. Licensing processes may involve a set of rules and criteria that importers must meet, but the level of transparency can vary from country to country. In some cases, the licensing requirements may be clear and publicly available, while in others, they may be opaque or subject to discretion.

In summary, voluntary export restraints tend to be the most transparent type of restriction on the quantity of imports due to the explicit agreement between countries and the public disclosure of terms. However, it is important to note that the level of transparency can vary within each type of restriction depending on the specific regulations and practices implemented by different countries.

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This image of the coronation of Elizabeth II represents what I learned about monarchies because….

Answers

The image of the coronation of Queen Elizabeth II represents what I have learned about monarchies because it showcases the traditional and ceremonial aspects of a monarchical system of government.

Monarchies are forms of governance where a single individual, typically a king or queen, holds supreme power and inherits the position through hereditary means. The coronation ceremony is a significant event that symbolizes the formal ascension of a monarch to the throne.

Firstly, the image highlights the concept of legitimacy and continuity in monarchies. The coronation ceremony signifies the seamless transfer of power from one monarch to the next, based on the principle of hereditary succession. It reflects the belief that the monarch's authority derives from a divine or ancestral right, which has been upheld throughout history.

Secondly, the image demonstrates the ceremonial role of monarchs in society. Monarchs often serve as the symbolic figureheads of their nations, representing unity, tradition, and national identity. The coronation ceremony is a grand spectacle that showcases the monarch's role as the embodiment of the state and its history.

Furthermore, the image reveals the close connection between monarchies and tradition. Monarchies are often deeply rooted in centuries-old customs and rituals, which are preserved and celebrated during significant events like a coronation. These traditions contribute to the sense of continuity and stability associated with monarchies.

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If the increment of the for statement is ________ then the loop counts ________.
a.true, downwards
b.false, downwards
c.positive, downwards
d.negative, downwards

Answers

If the increment of the for statement is negative then the loop counts downwards.

What is  loop counts ?

A counting loop, also known as a counter-controlled loop, is a loop where the number of repetitions is known in advance. The first two of the examples before are counting loops.

The count loop uses a variable to keep track of which iteration it is currently in. The variable's name can be anything you choose; "i" is the default.

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Land was purchased by issuing common stock. This transaction would be reported on the statement of cash fows as a(n) O A. investing activity. O B. financing activity. O C. noncash investing and financing activity. O D. operating activity

Answers

The transaction of purchasing land by issuing common stock would be reported on the statement of cash flows as a: C. noncash investing and financing activity.

The statement of cash flows classifies cash flows into three categories: operating activities, investing activities, and financing activities. Operating activities include cash flows from the company's primary business operations, while investing activities involve cash flows related to the acquisition or sale of long-term assets. Financing activities, on the other hand, include cash flows from activities that raise capital or repay debts. In this case, since land was purchased by issuing common stock, it involves a noncash transaction where no actual cash was exchanged. Therefore, it would be reported as a noncash investing and financing activity on the statement of cash flows.

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Grand Corporation reported pretax book income of $603,000. Tax depreciation exceeded book depreciation by $402,000. In addition, the company received $301,500 of tax-exempt municipal bond interest. The company’s prior-year tax return showed taxable income of $50,250. Compute the company's current income tax expense or benefit.

Answers

The company's current income tax expense is positive.

To calculate the current income tax expense or benefit, we need to consider the taxable income based on book income and make adjustments for tax depreciation, book depreciation, and tax-exempt municipal bond interest.

The taxable income based on book income is $603,000. Since tax depreciation exceeded book depreciation by $402,000, we need to add this amount to the taxable income. However, the company received $301,500 of tax-exempt municipal bond interest, which needs to be subtracted from the taxable income.

Therefore, the adjusted taxable income is $603,000 + $402,000 - $301,500 = $703,500.

Comparing this to the prior-year taxable income of $50,250, we can determine whether the company has an expense or benefit. In this case, the current taxable income is higher than the prior-year taxable income, resulting in an income tax expense.

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The December 31, Year 1, balance sheet for Deen Company showed total stockholders' equity of $72,500. Total stockholders' equity Increased by $23,460 between December 31, Year 1, and December 31, Year 2. During Year 2, Deen Company acquired $20,000 cash from the issue of common stock. Deen Company paid a $7,500 cash dividend to the stockholders during Year 2. Required Determine the amount of net income or loss Deen reported on its Year 2 Income statement.

Answers

Therefore, Deen Company reported a net income of $16,960 on its Year 2 Income statement.

Deen Company reported a net income of $16,960 on its Year 2 Income statement. Deen Company reported a net income of $16,960 on its Year 2 Income statement. In order to calculate net income, we must know the change in stockholders' equity, dividend payment, and additional investment in common stock. The total increase in stockholders' equity was $23,460 ($72,500 to $96,960) during the Year 2, including the additional investment in common stock of $20,000 and the cash dividend payment of $7,500. Therefore, net income must be equal to the total increase in stockholders' equity minus the additional investment in common stock and cash dividend payment :Net income = $23,460 - $20,000 - $7,500Net income = $16,960.

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FILL THE BLANK. If Ghana can produce 35 cocoa or 7 gold, while Liberia can produce 32 cocoa or 8 gold. Then will be exporters of cocoa and _____ will be exporters of gold Liberia; Liberia Ghana; Liberia Liberia; Ghan

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If Ghana can produce 35 cocoa or 7 gold, while Liberia can produce 32 cocoa or 8 gold, then Ghana will be exporters of cocoa and Liberia will be exporters of gold.

The given question deals with the comparative advantage of two countries, Ghana and Liberia in the production of two goods - cocoa and gold. The comparative advantage refers to a country's ability to produce a particular good at a lower opportunity cost than another country. Opportunity cost is the cost of producing one good in terms of foregone production of the other good.

The country which has the lower opportunity cost of producing the good has a comparative advantage in its production In this case, Ghana has a lower opportunity cost of producing cocoa as compared to Liberia. This means that Ghana has a comparative advantage in the production of cocoa over Liberia. Whereas Liberia has a lower opportunity cost of producing gold as compared to Ghana. This means that Liberia has a comparative advantage in the production of gold over Ghana.

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What monthly deposit must be made in order to accumulate 74,136
dollars in 9 years if a fund pays 8% per year, compounded monthly?
Assume that deposits are made at the end of each month.

Answers

The monthly deposit that must be made to accumulate $74,136 in 9 years at an 8% interest rate compounded monthly is approximately $493.71.

To accumulate $74,136 in 9 years with an 8% interest rate compounded monthly, a monthly deposit of approximately $493.71 must be made.

To calculate this, we can use the formula for the future value of an ordinary annuity, which is FV = P * [(1 + r)^n - 1] / r. In this case, the future value (FV) is $74,136, the interest rate (r) is 8% per year (0.08/12 = 0.0066667 per month), and the number of periods (n) is 9 years * 12 months = 108 months.

By plugging these values into the formula, we can solve for P, which represents the monthly deposit. The calculated value of P is approximately $493.71.

Therefore, a monthly deposit of approximately $493.71 is required to accumulate $74,136 in 9 years with an 8% interest rate compounded monthly, assuming deposits are made at the end of each month.

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Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $11,800 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $108,700.

How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year?

Answers

Fred will report $32,900 as his U.S. gross income if he accepts the overseas assignment and works abroad for the entire year.

How much U.S. gross income will Fred report if he works overseas for a year and earns $11,800 per month?

To determine the U.S. gross income that Fred will report if he accepts the overseas assignment and works abroad for the entire year, we need to consider the foreign-earned income exclusion.

The foreign-earned income exclusion allows U.S. citizens or residents working abroad to exclude a certain amount of their foreign-earned income from U.S. taxation. For the year in question, the maximum foreign-earned income exclusion is $108,700.

Since Fred's employer is willing to pay him $11,800 per month, we can calculate his total income for the year:

$11,800/month * 12 months = $141,600

Now, we need to determine how much of this income is eligible for the foreign-earned income exclusion. Since Fred will be working abroad for the entire year, he meets the requirements to claim the exclusion.

If Fred's total income is below or equal to the maximum exclusion amount ($108,700), he can exclude the full amount. However, if his income exceeds that threshold, he can only exclude up to the maximum limit.

In this case, Fred's total income of $141,600 exceeds the maximum exclusion amount of $108,700. Therefore, he can exclude up to $108,700 from his U.S. gross income, and the remaining amount will be taxable.

Taxable income = Total income - Exclusion amount

Taxable income = $141,600 - $108,700

Taxable income = $32,900

Therefore, Fred will report $32,900 as his U.S. gross income if he accepts the overseas assignment and works abroad for the entire year.

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Assume a 5%/year compounded annually interest rate. Cash flow in time period 0 is $100 and increases by $100 each time period. Find present value of the cash flow below. HINT: You may want to solve it first ignoring the 100 in year zero and then see how to incorporate it.

Answers

Answer : The present value of the entire cash flow is $2,095.24.

Explanation :

The question is asking for the present value of the cash flow given a 5% annual interest rate compounded annually, a cash flow of $100 that increases by $100 each period and the cash flow is shown below:100 200 300 400 ...

We can calculate the present value of the cash flow using the formula for the present value of an annuity. Since the cash flow starts in period 1, we ignore the cash flow in period 0 and solve the problem for the cash flow starting in period 1. Once we have the present value of the cash flow starting in period 1, we add the present value of the cash flow in period 0.

The formula for the present value of an annuity is: PV = (PMT / r) * [1 - (1 + r)⁻ⁿ]where: PV = present value of the annuity, PMT = the payment amount each period, r = the interest rate per period ,n = the number of periods

Using the values given, we have:

PMT = $100r = 5% / year = 0.05 / yearn = infinity (since the cash flow continues indefinitely)

We can use the formula to calculate the present value of the cash flow starting in period 1:

PV1 = ($100 / 0.05) * [1 - (1 + 0.05)⁻ᶦⁿᶠ⁶⁰]   PV1 = $2,000

We can now calculate the present value of the cash flow in period 0 by discounting it back to period 0 using the same formula:

PV0 = $100 / (1 + 0.05) = $95.24

Therefore, the present value of the entire cash flow is: PV = PV0 + PV1 = $95.24 + $2,000 = $2,095.24.

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For each of the following situations use the IS-LM-FX model to illustrate the effects of a shock. For each case, state the effect of the shock on the following variables (increase, decrease, no change, or ambiguous): Y, I, E, C, I, TB. Assume the government allows the exchange rate to float and makes no policy response.

a. Foreign output decreases.

b. Investors expect a depreciation of the home currency.

c. The domestic money supply increases.

d. Government spending increases.

Answers

For each of the following situations use the IS-LM-FX model to illustrate the effects of a shock. For each case, state the effect of the shock on the following variables (increase, decrease, no change, or ambiguous): Y, I, E, C, I, TB. Assume the government allows the exchange rate to float and makes no policy response.

a. Foreign output decreases.

This shock shifts the IS curve to the left, as net exports fall due to lower foreign demand. The LM curve is unchanged. The FX curve shifts to the right, as the home currency depreciates due to lower foreign demand for domestic goods and assets. The equilibrium moves from point A to point B. The effects are: Y decreases, I decreases, E decreases, C decreases, I decreases, TB ambiguous (depends on the elasticity of net exports).

b. Investors expect a depreciation of the home currency.

This shock shifts the FX curve to the right, as investors demand more foreign currency and less domestic currency. The IS and LM curves are unchanged. The equilibrium moves from point A to point B. The effects are: Y increases, I increases, E increases, C increases, I increases, TB decreases.

c. The domestic money supply increases.

This shock shifts the LM curve to the right, as the interest rate falls due to higher money supply. The IS curve is unchanged. The FX curve shifts to the right, as the home currency depreciates due to lower interest rate and lower demand for domestic assets. The equilibrium moves from point A to point B. The effects are: Y increases, I increases, E increases, C increases, I increases, TB decreases.

d. Government spending increases.

This shock shifts the IS curve to the right, as government spending boosts aggregate demand. The LM curve is unchanged. The FX curve shifts to the left, as the home currency appreciates due to higher interest rate and higher demand for domestic assets. The equilibrium moves from point A to point B. The effects are: Y increases, I ambiguous (depends on the crowding-out effect), E decreases, C increases, I ambiguous (depends on the crowding-out effect), TB increases.

About Output

Output devices are devices that can display processing results, data entry results or commands on the computer. Based on the output results, output devices can be classified into: Softcopy Hardcopy.

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with programmed decisions, information is more likely to be ambiguous, and the manager may need to exercise some thoughtful judgment and creative thinking to reach a good solution. (True or False)

Answers

The statement "With programmed decisions, information is more likely to be ambiguous, and the manager may need to exercise some thoughtful judgment and creative thinking to reach a good solution" is false.

These choices are often well-structured, with processes that managers can follow that are clear and predetermined. They don't call for a lot of judgement or original thought because they are based on established criteria.

Managers that use programmed decision-making rely on pre-established procedures, protocols, or electronic tools to direct their activities.  Non-programmed decisions, on the other hand, are distinctive, complex, and call for subjective judgment and original thought.

To come up with a suitable solution, they frequently call for managers to weigh many options, take into account various viewpoints, and use intelligent judgment.

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Standard Costs and Planning for estion 8 of 11 1) < > Your answer is correct. Carper was presented with a second capital investment that provided similar production facilities as the first one. This investment cost $405.000, had a useful life of 7 years with a salvage value of $15.000. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $26.460 and $81.000 respectively. Carper's 7% cost of capital is also the required rate of return on the investment. Compute the cash payback period. (Round answer to 0 decimal places, e.g. 25.) Cash payback period (c2) e Textbook and Media Compute the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%) Annual rate of return Save for Later 5 years % 1.43/2.5I Attempts: 1 of 2 used: 4 Attempts: 0 of 2 used Subenit Answer (C3) The parts of this question must be completed in order. This part will be available when you complete the part above

Answers

The cash payback period for Carper's second capital funding is approximately 5 years.

The coin's payback period is an economic metric that facilitates assessing the time it takes to recoup the initial investment in a capital challenge or investment. In this example, we are able to calculate the cash payback duration for Carper's second capital investment.

The 2nd capital investment has a value of $395,000 and a beneficial life of 7 years. At the top of its beneficial existence, it will have a salvage fee of $15,000. The depreciation approach used is the immediately-line method, this means that the same quantity is depreciated every 12 months.

To calculate the annual depreciation expense, we subtract the salvage value from the initial cost and divide it with the aid of the beneficial life:

Annual Depreciation Expense = (Initial Cost - Salvage Value) / Useful Life

Annual Depreciation Expense = ($395,000 - $15,000) / 7

Annual Depreciation Expense ≈ $55,000

Now that we realize the annual depreciation rate, we are able to calculate the net annual cash flows. The net annual coins go with the flow is the difference between the yearly net income and the annual depreciation cost:

Net Annual Cash Flow = Annual Net Income + Annual Depreciation Expense

Net Annual Cash Flow = $22,960 + $55,000

Net Annual Cash Flow = $77,960

Next, we need to calculate the cash payback length. The cash payback length is the time it takes for the cumulative Internet annual cash flows to be identical to or exceed the preliminary funding.

To calculate the coin's payback length, we divide the preliminary funding by using the net annual cash float:

Cash Payback Period = Initial Investment / Net Annual Cash Flow

Cash Payback Period = $395,000 / $77,960

Cash Payback Period ≈ 5 years (Rounded to 0 decimal places)

Therefore, the cash payback period for Carper's second capital funding is approximately 5 years. In this approach, it'll take around 5 years to recoup the preliminary investment based on the Internet annual cash flows.

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The correct question is:

A company has an equity stock portfolio with current market value of $2,000,000. The portfolio consists of 75% investment in the Stock AAA and 25% investment in the Stock BBB. The company is estimating potential future losses of its portfolio if stock market fluctuates significantly. The company adopts analytical Value-at Risk (VaR) method to assess its exposure to equity market risk. For the Stock AAA, expected monthly returns is 5% and standard deviation of monthly returns is 8%. For the Stock BBB, expected monthly returns is 3% and standard deviation of monthly returns is 6%. The correlation of monthly returns between the Stock AAA and the Stock BBB is 0.60. Required:

1) Determine the absolute monthly VaR at the 95% confidence level.

2) Determine the relative quarterly VaR at the 99% confidence level.

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Absolute Monthly Va R at the 95% Confidence Level Va R is used to estimate potential losses over a specified period of time with a certain degree of statistical confidence. The Va R at the 95% confidence level is calculated by the following formula:VaR95% = -(Mean Monthly Return + Z Score * Standard Deviation of Monthly Returns)

Where, Z Score = 1.65

(at 95% confidence level)

For Stock AAA Mean Monthly Return = 5%

Standard Deviation of Monthly Returns = 8%

Z Score = 1.65

VaR95% = -(5% + 1.65 * 8%) = -17.2%For Stock BBB: Mean Monthly Return = 3%Standard Deviation of Monthly Returns = 6%Z Score = 1.65VaR95% = -(3% + 1.65 * 6%) = -13.3%2) Relative Quarterly Va R at the 99% Confidence Level The relative Va R is expressed as a percentage of the portfolio's market value.

The relative VaR at the 99% confidence level is calculated as follows:

Relative VaR = Absolute VaR / Portfolio's Market ValueRelative Quarterly VaR at 99%

Confidence Level = (75% * VaR(AAA) + 25% * VaR(BBB)) / Portfolio's Market Value Where,

Portfolio's Market Value = $2,000,000

For Stock AAA:VaR

(AAA) = -17.2%For Stock BBB:VaR(BBB) = -13.3%Relative Quarterly VaR at 99% Confidence Level = (75% * -17.2% + 25% * -13.3%) / $2,000,000 = 0.00047 or 0.047%

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Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16- ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, m

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The CVP Income Statement is contained in the attachment that we have here

Howe to get the CVP Income Statement

The attachemnet contains the calculation of he income statement for the given company

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Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $1,850,000 Selling expenses-variable $95,000 Direct materials 470,000 Selling expenses-fixed 54,000 Direct labor 340,000 Administrative expenses-variable 30,000 Manufacturing overhead-variable 360,000 Administrative expenses-fixed 109,000 Manufacturing overhead-fixed 170,000 Prepare a CVP income statement for 2020 based on management's estimates. WILDHORSE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020

ATTEMPT QUESTION ONE (1) AND ANY OTHER TWO (2) QUESTIONS 1. Internal auditors must exercise due professional care by considering the; a. Extent of work needed to achieve the engagement's objectives. b

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The severity and presentation of autism symptoms can vary widely between individuals, ranging from mild to severe. Autism is typically diagnosed in early childhood, although some individuals may not receive a diagnosis until later in life.

Internal auditors must exercise due professional care by considering the extent of work needed to achieve the engagement's objectives, as well as the risk of significant errors, fraud, or noncompliance.

They must also ensure that their work complies with relevant laws, regulations, and ethical standards, and that they maintain their competence and objectivity.

Additionally, they must ensure that their work is adequately documented and that they communicate their findings and recommendations effectively.

In addition, internal auditors must be sensitive to the cultural and social differences of the organizations they are auditing, as well as the potential for conflicts of interest or undue influence.

They must also respect the confidentiality of the organization's information and comply with any legal or contractual obligations in this regard.

Autism, also known as Autism Spectrum Disorder (ASD), is a neurological and developmental condition that affects how individuals communicate, interact with others, and experience the world around them.

Autism is a lifelong condition that is characterized by difficulties in social communication and interaction, restricted and repetitive patterns of behavior, interests, or activities, and sensory processing issues.

There is no cure for autism, but early intervention and appropriate support and therapy can help individuals with autism lead fulfilling lives and achieve their full potential.

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Imagine we have a duopoly that are competing by simultaneously setting prices. The market demand curve faced by these two firms is: p = 240 - 2q1 - 292 Firm 1 has a constant marginal cost of $20. Firm 2 has a constant marginal cost of $40. What is the Market Price that will be charged by these firms??

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In a duopoly, two firms are competing by simultaneously setting prices in a market. The market price that will be charged by these firms depends on various factors, such as market demand and the firms' marginal costs. In this scenario, Firm 1 and Firm 2 face a market demand curve and have different marginal costs. Let's delve into the details to determine the market price that will be charged by these firms.

To find the market price charged by the duopoly firms, we need to analyze the interaction between the market demand curve and the firms' marginal costs. In this case, the market demand curve is represented by the equation p = 240 - 2q₁- 292, where p is the price and q1 is the quantity produced by Firm 1.

To begin, we can set up the duopoly pricing game and solve it using the concept of Cournot competition. In this model, firms set their quantities simultaneously based on their beliefs about how their competitors will behave. However, for simplicity, we will assume that both firms set prices instead of quantities.

Let's denote the price set by Firm 1 as p₁ and the price set by Firm 2 as p₂. The total market quantity demanded is the sum of the quantities demanded by both firms, which can be represented as: q = q₁ + q₂.

Since we are assuming that firms set prices, the quantities demanded by consumers will depend on the prices set by the firms. To find the quantities demanded, we need to solve the market demand equation for q₁ and q₂ in terms of p₁ and p₂.

Rearranging the market demand equation, we get:

p₁ = 240 - 2q₁ - 292

p₂ = 240 - 2q₂ - 292

Next, we need to consider the firms' marginal costs. Firm 1 has a constant marginal cost of $20, and Firm 2 has a constant marginal cost of $40.

Given these marginal costs, the firms will choose their prices to maximize their profits. The profit for Firm 1 can be calculated as: π₁ = (p₁ - 20) * q₁, and the profit for Firm 2 can be calculated as: π₂ = (p₂ - 40) * q₂.

To find the market price, we need to determine the prices set by the firms that maximize their respective profits. This can be done by solving the profit maximization problem for each firm, taking into account the reaction of the other firm.

The specific details of solving the profit maximization problem and finding the optimal prices are beyond the scope of this explanation. However, by solving the equations for profit maximization, we can determine the equilibrium prices that the firms will charge in the duopoly market.

Therefore, to find the market price that will be charged by these firms, we need to solve the profit maximization problem considering the market demand curve, the firms' marginal costs, and the interaction between the firms' pricing strategies.

It's important to note that the solution to this problem will depend on the specific assumptions and parameters of the model. Solving the equations will yield the equilibrium prices set by the firms, which will determine the market price in the duopoly.

In conclusion, to determine the market price charged by the duopoly firms, we need to solve the profit maximization problem considering the market demand curve and the firms' marginal costs. By finding the equilibrium prices set by the firms, we can determine the market price in this duopoly scenario.

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4 Vehicle Purchases Suppose you want to buy a new vehicle and you have a choice between a used. 2020 Toyota Land Cruiser that costs $15,000 and consumes $2000 of gas per year of use, or a new 2022 Harley Davidson Electra Glide motorcycle that costs $19,000 and consumes $1000 of gas per year. To make things simple, suppose whichever vehicle you purchase, you purchase now (t = 0) and that either vehicle will last you for the next 5 years. Lastly assume that you will pay the gas costs lump-sum at the end of each year (t = 1, 2, 3, 4, 5). Which vehicle is the least cost option when the interest rate is 5%? What if the interest rate were 10%? (40pts total) For full points, you must calculate the present values. I will not accept answers that only list the correct vehicle without providing any evidence.

Answers

1) the used 2020 Toyota Land Cruiser is the least costly alternative when the interest rate is 5%.

2)the new 2022 Harley Davidson Electra Glide is the least costly alternative when the interest rate is 10%.

To calculate the present value of cash flows of different investments in order to compare them, the discounted cash flow (DCF) method is used. It is used to decide whether an investment is profitable or not, and it is based on the principle that money is worth more today than it is tomorrow.

Hence, we need to determine the present value of both alternatives to determine which one is the least cost option.

1) Used 2020 Toyota Land Cruiser

Price of vehicle = $15,000.00

Annual gas costs = $2,000.00

Number of years = 5

Interest rate = 5%

Discount factor = 3.7908

PV of vehicle = -$15,000.00

PV of gas costs = -$7,639.22

Total present value = -$22,639.22

Thus, the used 2020 Toyota Land Cruiser is the least costly alternative when the interest rate is 5%.

2) New 2022 Harley Davidson Electra Glide

Price of vehicle = $19,000.00

Annual gas costs = $1,000.00

Number of years = 5

Interest rate = 5%

Discount factor = 3.7908

PV of vehicle = -$19,000.00

PV of gas costs = -$3,819.90

Total present value = -$22,819.90

Hence, the new 2022 Harley Davidson Electra Glide is the least costly alternative when the interest rate is 10%.

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Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..

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Answer: A. Traditional Model

Explanation:

Strategic planning enables a company to properly plan out what their long term goals and visions are which would help them in operations because it would give them a view of what they are working towards.

A key part of strategic planning involves knowing the operating environment so as to be able to plan better. If this is not well know, the company should go with a traditional/ basic model that would enable them to plan with minimal knowledge and experience until they know better.

Bill wants to buy a bond. It has a face value of $10,000, a bond rate of 4% (nominal), payable annually, and matures in 10 years. Bill wants to earn a minimum return of 5% per year. How much should Bill pay for the bond?

Answers

Let us calculate how much Bill should pay for the bond. First, we need to calculate the bond price using the formula: Bond price = Annual interest payment / Discount rate. Therefore, Bill should pay $8,000 for the bond.

Where Annual interest payment = Bond rate * Face value of the bond discount rate is the rate that will be used to discount the bond price flows in the future.

It is also referred to as the yield rate. Since we are given the nominal bond rate, we will first convert it to the real rate as follows: Real rate = [(1 + nominal rate) / (1 + inflation rate)] - 1

We are not given the inflation rate so we will assume that it is 2%.Real rate = [(1 + 0.04) / (1 + 0.02)] - 1= 0.0196 or 1.96%

Discount rate = Real rate + Inflation rate= 0.0196 + 0.02= 0.0396 or 3.96%

Annual interest payment = 4% * $10,000 = $400

Bond price = $400 / 0.05= $8,000

Therefore, Bill should pay $8,000 for the bond.

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Question 9 The cost of a plant asset includes the purchase price, applicable taxes, purchase commissions, and all other amounts paid to acquire the asset and make it ready for its intended use True O

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True. The cost of a plant asset includes not only the purchase price but also various other expenditures incurred to acquire and prepare the asset for its intended use.

These additional costs may include applicable taxes, purchase commissions, legal fees, transportation costs, installation charges, and any other expenses directly attributable to the acquisition and preparation of the asset.When calculating the cost of a plant asset, it is essential to consider all the expenses incurred to make the asset operational. For example, if a company purchases a piece of machinery for its manufacturing facility, the cost of the asset would include the purchase price paid to the supplier, any taxes associated with the purchase, commissions paid to brokers or agents involved in the transaction, transportation costs to deliver the machinery to the facility, and any installation or setup expenses required to make the machinery ready for use.

Including these additional costs in the asset's cost ensures that the company accurately reflects the total investment made to acquire and prepare the asset. This comprehensive cost calculation is essential for proper financial reporting, depreciation calculations, and assessing the asset's overall value to the organization.

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Which of the following would be an effective means of benchmarking?
a. Comparing the city's key ratios to those of special purpose governments in the area
b. Comparing current-period ratios to published medians of the same ratios for cities of similar size or in the same geographic region
c. Comparing key ratios to published medians of the same ratios for larger cities in other parts of the country
d. Comparing current-period ratios to estimates for future periods

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Comparing current-period ratios to published medians of the same ratios for cities of similar size or in the same geographic region would be an effective means of benchmarking. The correct option is b.

Benchmarking involves comparing an organization's performance or metrics against industry standards, competitors, or peers to identify areas for improvement and set performance targets. In the context of benchmarking for a city, it is essential to compare relevant ratios to meaningful benchmarks. Here's why option b is the most appropriate choice:

b. Comparing current-period ratios to published medians of the same ratios for cities of similar size or in the same geographic region:

This option focuses on comparing the city's current-period ratios to published medians specifically tailored to cities of similar size or within the same geographic region. This approach allows for a more meaningful and relevant benchmarking analysis. Cities in the same region or of similar size may face similar economic, social, and demographic factors that can influence their financial performance.

By comparing to published medians of such cities, the city can gain insights into how its ratios stack up against its peers, identify areas of strength or weakness, and make informed decisions for improvement.

The other options (a, c, d) may have limitations:

a. Comparing the city's key ratios to those of special purpose governments in the area:

Special purpose governments may have different mandates, objectives, and financial characteristics compared to the city, making the benchmarking less relevant for assessing overall performance.

c. Comparing key ratios to published medians of the same ratios for larger cities in other parts of the country:

Comparing to larger cities in different parts of the country may not provide a meaningful benchmark as the economic, demographic, and socio-political contexts could vary significantly, making the comparison less relevant.

d. Comparing current-period ratios to estimates for future periods:

Benchmarking involves comparing actual performance to established benchmarks, and using estimates for future periods may not provide accurate or reliable comparisons.

In conclusion, option b, comparing current-period ratios to published medians for cities of similar size or in the same geographic region, would be the most effective means of benchmarking as it provides relevant and comparable data for performance evaluation and improvement.

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Suppose that we are drilling an oil well. The drilling rig costs $1800 today, and in one year the well is either a success or a failure. The outcomes are equally likely. The discount rate is 3%. The PV of the successful payoff at time one is $3100. The PV of the unsuccessful payoff at time one is $0. Now, we know that the rig can be sold for $2900 in a year. When we include the value of the option to abandon, the NPV of this drilling project should be (keep two decimal places): ____________

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The NPV of this drilling project, including the value of the option to abandon, is $4035.95.

To calculate the net present value (NPV) of the drilling project, we need to consider the present value of the cash flows associated with both the successful and unsuccessful outcomes.

For the successful outcome, the present value (PV) of the payoff at time one is given as $3100. Since the discount rate is 3% and the time horizon is one year, the present value can be calculated as $3100 / (1 + 0.03) = $3019.42.

For the unsuccessful outcome, the PV of the payoff at time one is $0.

Next, we consider the value of the option to abandon. This option allows us to sell the drilling rig for $2900 in a year. Since we have the option to abandon the project, the value of this option is equal to the proceeds from selling the rig, discounted back to the present. Therefore, the PV of the option to abandon is $2900 / (1 + 0.03) = $2815.53.

Finally, we can calculate the NPV by subtracting the initial cost of the drilling rig ($1800) from the sum of the PVs of the successful payoff, unsuccessful payoff, and the option to abandon: $3019.42 + $0 + $2815.53 - $1800 = $4035.95.

Therefore, the NPV of this drilling project, including the value of the option to abandon, is $4035.95.

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In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $260,000 rather than the correct $280,000. Required: 1. Determine the correct amount of the company's gross profit in each of Year 1 Year 2, and Year 3. 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1 Year 2, and Year 3. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. VIBRANT COMPANY Comparative Income Statements Year 1 Year 2 Year 3 3-year total Cost of goods sold Cost of goods sold Gross profit $ 0 $ $ 0 $ Required 1 Required 2 > Complete this questions by entering your answers in the below tabs. 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Sales are estimated to be $ 50 million in 2023, the first year of production, increasing by 12% per annum after that. The cost of goods sold is 65% of sales. Fixed costs will be $10 million in 2023, increasing by 5% per year. Both buildings and plant/equipment will be depreciated straight line to zero over the 10-year project life. The buildings will have a salvage value of 20% of cost and the plant and equipment will have no salvage value. At the end of the project, you will rehabilitate the site and sell the land for light industrial development for $16 million. Relevant company tax rate for the project is 20%.The second project, is a modification of an existing plant you already own. The plant has been idle for a number of years, but with renovation would be well suited to furfuryl alcohol production. If not used for the proposed project, you will lease out the existing plant for $70,000 per year. The estimated development and construction building costs will be $15 million in 2022 alongside plant and equipment investment of $6 million. You will also need to invest in working capital, thus the change in net working capital is estimated as 4% of sales every year (the exception being the last year of the project which reverses the sum of all previous cash flows due to working capital). Sales will be $46 million in 2023, increasing by 6% per annum thereafter. The cost of goods sold will be 75% of sales. Fixed costs will be $5 million in 2023, increasing by 4.5% per year. Both buildings and plant/equipment will be depreciated straight line to zero over the 10-year project life. The buildings will have a salvage value of 30% of cost and the plant and equipment will have no salvage value. At the end of the project, the Plant will remain idle awaiting potential future developments at no cost. The company tax rate relevant for the project is 30%.Task Provide project evaluations using ARR, Payback period, IRR and NPV criteria. Which project you propose company invest in and a justification for your selection of the project and the choice of method used in your project selection. Are there any other factors you would consider in your evaluation? Let f (x) = x and g(x) = 1/x.(a) f (36)(b) (g + f )(4)(c) (f g)(0) Find the compound interest earned by the deposit. Round to the nearest cent. $2000 at 6% compounded quarterly for year O None of these. $240.00 $247.20 $59,13 $60.45