Answers
A business management system includes three main components: a decision-making information system, a predictive information system, and database management system
Database management system "DBMS". Essentially, it is general-purpose software that helps create and manage database systems. A database management system essentially provides a systematic way to create, update, and manage user data.
A DBMS essentially allows an end user to read, create, delete, and update specified data in a database system.
Information system entails gathering the required data (raw materials or inputs) and processing that data to produce informative information. Three terms—management, information, and system—need to be defined clearly in order to comprehend MIS.
The human element of information system management is the last and possibly most crucial one. the individuals needed to run the system, the procedures necessary to convert knowledge from big databases and data warehouses into learning, and the procedures necessary to analyze what occurred. back then.
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Related Questions
All leaders tend to share several common characteristics.
O True
O False
Answers
Answer:
O True
Explanation:
What is the current value of a $1000 Treasury inflation-protected security if the reference CPI is 203.19 and the current CPI is 205.47? The coupon rate is 3 percent and the bond was issued two years ago.
Answers
Answer:
the current value fo $1,000 is $1,011.22
Explanation:
The computation of the current value of $1,000 is shown below:
Current value
= Price × (Current CPI ÷ Reference CPI) × 100
= $1,000 × (205.47 ÷ 203.19)
= $1,011.22
We basically applied the above formula so that the current value would come
Hence, the current value fo $1,000 is $1,011.22
Bureaucracy Group of answer choices build internal procedures and processes into operations to improve coordination efforts. applied scientific methods to analyze work and determine how best to complete production tasks in an efficient manner in order to improve production efficiency. was the first approach to emphasize informal work relationships and worker satisfaction. emphasizes perspective of senior managers and that management, as a profession, can be taught. structured, formal network of relationships among specialized positions; rules and regulations to standardize behavior and; authority resides in positions not individuals; therefore organizations will realize efficiency and success by following established unbiased rules.
Answers
Answer: structured, formal network of relationships among specialized positions; rules and regulations to standardize behavior and; authority resides in positions not individuals; therefore organizations will realize efficiency and success by following established unbiased rules.
Explanation:
Bureaucracy refers to a system of organization whereby majority of the vital decisions are taken by the top officials.
A Bureaucratic setup is typically complex, hierarchical, there's struct chain of command and possesses division of labour. It's a formal network of relationships among specialized positions.
what are 2 different types of budgets and discuss how they complement each other?
Answers
There are two main types of budgets: operational budgets and financial budgets.
Operational budgets are used to plan and monitor the day-to-day operations of a business, and typically cover a period of one year. These budgets include items such as revenue projections, production costs, and operating expenses. Operational budgets are crucial for ensuring that a business stays on track and meets its operational goals. Financial budgets, on the other hand, are focused on the long-term financial health of a business. They include items such as capital expenditures, financing costs, and cash flow projections. Financial budgets are used to help businesses plan for the future and make strategic decisions about investments and growth. These two types of budgets complement each other by providing a comprehensive view of a business's operations and financial health. Operational budgets help to ensure that day-to-day activities are aligned with the overall goals of the business, while financial budgets provide a roadmap for achieving long-term success. By using both types of budgets, businesses can make informed decisions about resource allocation, identify potential risks, and maintain a strong financial position over the long term.
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REMAX, a real estate company in Houston, performed an analysis of 500 Houston homes they sold last year. Each home was categorized by initial asking price and number of days the home was listed before it sold. Reference Equations Number of Homes: Initial Asking Priceless or equal than$200,000 Initial Asking Price> $200,000 Total Days Listed Until Sold less or equal than30 125 95 220 Days Listed Until Sold >30 115 165 280 Total 240 260 500 Find P(price > $200,000 and sold less or equal than 30 days). a. 0.3654 b. 0.1900 c. 0.2288 d. 0.4318
Answers
Answer: 0.1900
Explanation:
To find P(price > $200,000 and sold less or equal than 30 days), we have to look at the reference equation table and then look out for the point whereby price is greater than $200000 and sold less or equal than 30 days.
Based on the information given, this will be at a point where we've 95. Since the overall possible outcome is 500, then P(price > $200,000 and sold less or equal than 30 days) will be:
= 95/500
= 0.1900
The correct option is B.
Securing a spreadsheet is most important for an accountant because.
OA. it creates the right type of formatting
OB. it allows them to be altered later on
Oc. it protects the client's information
OD. it assists in forecasting
Answers
Answer:
The most important reason for an accountant to secure a spreadsheet is option C: it protects the client's information.
Accountants often deal with sensitive financial information about their clients, including personal and financial data that should be kept confidential. If a spreadsheet containing this information is not secured properly, it could be accessed or manipulated by unauthorized individuals, leading to serious consequences such as identity theft, fraud, or data breaches. Therefore, securing a spreadsheet is crucial for protecting the privacy and security of a client's information.
Option A (creating the right type of formatting) and Option D (assisting in forecasting) are not directly related to the need to secure a spreadsheet, although they may be important aspects of spreadsheet design and use. Option B (allowing them to be altered later on) is actually the opposite of what securing a spreadsheet aims to achieve, which is to prevent unauthorized changes to the data.
Take-home pay is about 70% of gross pay. If your annual salary is $40,000
what is your annual take-home pay?
Answers
Answer:
$28,000
Explanation:
The annual salary is $40,000
Take home is 70% of $40,000
=70% x $40,000
=70/100 x $40,000
=0.7 x $40,000
=$28,000
Campbell Manufacturing intends to start business on January 1. Production plans for the first four months of operations are as follows:January 8,000 unitsFebruary 20,000 unitsMarch 28,000 unitsApril 28,000 unitsEach unit requires two pounds of material. The firm would like to end each month with enough raw material to cover 25 percent of the following month’s production needs. Raw material costs $7 per pound. Management pays for 40 percent of purchases in the month of purchase and receives a 10 percent discount for these payments. The remaining purchases are paid in the following month, with no discount available.a. Prepare a purchases budget for the first quarter of the year in units, in total, and in dollars.Note: Do not use a negative sign with your answers.January February March QuarterUnits produced Pounds per unit x 2 x 2 x 2 x 2Pounds needed EI in pounds Total required Less BI Pounds to purchase Cost per pound x $7 x $7 x $7 x $7Total cost of RM b. Determine the budgeted payments for purchases of raw material for each of the first three months of operations and for the quarter in total.PaymentsJanuary February March QuarterJanuary purchases February purchases March purchases Total
Answers
Answer:
k'Poliuykukkkkkk
Explanation:
A company had issued 10,000 bonds which had a par value of $50 and currently sold at $60. The company is expected to pay 10% interest for the next 5 years. In addition to this the preferred stock of the company is issued at $150 which a promised dividend of 8 per share. The common stock holders will receive $2 per share and this will grow T 8% for the first 3 years, 6% for the other 3 years and it will grow at 5% for indefinite period. Assume the tax rate is 35%. The capital structure of the company is composed of 600,000 common stock, 200,000 preferred stock and 100,000 is debt.
A) Find the cost of capital for each sources A) Find the weighted average cost of capital
Answers
To calculate the cost of capital for each source, we'll consider the cost of debt, cost of preferred stock, and cost of common stock.
1. Cost of Debt:
The cost of debt is the interest rate the company pays on its debt. In this case, the company has issued bonds with a par value of $50, currently selling at $60, and a coupon rate of 10% for 5 years.
Cost of Debt = (Interest Expense / (Bonds Market Value - Bond Discount)) * (1 - Tax Rate)
Interest Expense = Bonds Market Value * Coupon Rate
Bonds Market Value = Number of Bonds * Bond Selling Price
Number of Bonds = 10,000
Bond Selling Price = $60
Coupon Rate = 10%
Tax Rate = 35%
Interest Expense = $60 * 10,000 * 10% = $60,000
Bonds Market Value = 10,000 * $60 = $600,000
Bond Discount = Par Value - Bond Selling Price = $50 - $60 = -$10 (Negative value because the bond is selling at a premium)
Cost of Debt = ($60,000 / ($600,000 - (-$10))) * (1 - 0.35) = $6,000 / $600,010 * 0.65 = 0.064997 (approximately 6.50%)
2. Cost of Preferred Stock:
The cost of preferred stock is the dividend rate the company pays on its preferred stock. In this case, the preferred stock is issued at $150 with a promised dividend of $8 per share.
Cost of Preferred Stock = Dividend / Preferred Stock Price
Dividend = $8
Preferred Stock Price = $150
Cost of Preferred Stock = $8 / $150 = 0.053333 (approximately 5.33%)
3. Cost of Common Stock:
The cost of common stock is calculated using the dividend growth model. The dividend is expected to grow at different rates for different periods.
First 3 years: Dividend Growth Rate = 8%
Next 3 years: Dividend Growth Rate = 6%
Indefinite period: Dividend Growth Rate = 5%
Cost of Common Stock = Dividend / Current Stock Price + Growth Rate
Dividend = $2
Current Stock Price = Market Price
Growth Rate = Dividend Growth Rate
Cost of Common Stock = $2 / Market Price + Growth Rate
Weighted Average Cost of Capital (WACC):
The weighted average cost of capital is the weighted average of the costs of each source of capital, considering their respective proportions in the capital structure.
WACC = (Weight of Debt * Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Common Stock * Cost of Common Stock)
Weight of Debt = Debt / Total Capital
Weight of Preferred Stock = Preferred Stock / Total Capital
Weight of Common Stock = Common Stock / Total Capital
Debt = $100,000
Preferred Stock = $200,000
Common Stock = $600,000
Total Capital = Debt + Preferred Stock + Common Stock = $100,000 + $200,000 + $600,000 = $900,000
Weight of Debt = $100,000 / $900,000 = 0.111111 (approximately 11.11%)
Weight of Preferred Stock = $200,000 / $900,000 = 0.222222 (approximately 22.22%)
Weight of Common Stock = $600,000 / $900,000 = 0.666667 (approximately 66.67%)
WACC = (0.111111 * 6.50%) + (0.222222 * 5.
The cost of capital for each source can be calculated by determining the cost of debt, cost of preferred stock, and cost of common equity. The cost of debt is 8.33%, the cost of preferred stock is 5.33%, and the cost of common equity is 14.77%.
To find the cost of capital for each source, we will calculate the cost of debt, cost of preferred stock, and cost of common equity.
The cost of debt can be calculated using the formula: Cost of Debt = (Annual Interest Payment / Bond Price) x 100%. In this case, the bond price is $60 and the annual interest payment is 10% of the bond's par value of $50, so the cost of debt is (0.10 * $50 / $60) x 100% = 8.33%.
The cost of preferred stock can be calculated using the formula: Cost of Preferred Stock = Dividend / Stock Price. In this case, the dividend is $8 per share and the stock price is $150, so the cost of preferred stock is $8 / $150 = 5.33%.
The cost of common equity can be calculated using the Dividend Discount Model (DDM) formula: Cost of Common Equity = Dividend / Current Stock Price + Growth Rate. The growth rate for the first 3 years is 8%, for the following 3 years is 6%, and for an indefinite period is 5%. The dividend for common stock is $2 per share. The current stock price can be calculated using the market value of the common stock ($2 * 600,000 = $1,200,000) divided by the number of shares (600,000), which equals $2 per share. The cost of common equity is $2 / $2 + 0.08 + 0.06 + 0.05 = 14.77%.
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How do marginal costs
and benefits relate to trade-offs?
Answers
Answer:
A trade-off is the actual alternative option that is given up, while the value of this alternative option is the opportunity cost. ... Marginal cost is the cost of using one more unit of a good or service, and marginal benefit is the benefit or satisfaction received from using one more unit of a good or service.
Explanation:
QUESTION 8 of 10: The function of a financial planner is:
Oa) To share in the profit/loss of your investments
b) To convince you to purchase large-cap stocks
c) To design your personal budget plan
Od) To help you define and reach your financial goals
Answers
The function of a financial planner is to help individuals or organizations define and reach their financial goals through a variety of services, including budget planning. So, correct option is D.
Unlike an investment advisor who is primarily focused on managing investments, a financial planner takes a more holistic approach to a client's financial well-being. They work closely with clients to understand their current financial situation, identify their goals and objectives, and develop a personalized financial plan to achieve those goals.
Financial planners do not share in the profit or loss of their clients' investments, nor do they aim to convince their clients to purchase specific stocks. Instead, they provide unbiased advice and recommendations based on their clients' individual needs and objectives.
Ultimately, the goal of a financial planner is to help clients achieve financial security and success by providing expert guidance, ongoing support, and customized solutions to meet their unique financial needs.
So, correct option is D.
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Alison was just hired around the Grand Stores. She soon learned that all new hires in the company are required to go through mandatory health and drug testing. She consulted her superiors and found that this was not a breach of her privacy right. Which reason for such testing would NOT qualify as a breach of Alisons privacy rights?
A. Pre-employment condition
B. Vacation allotment
C. Fitness for duty
D. Personality assessment
Answers
Answer:
A. Pre-employment condition
Explanation:
The answer is A. because if the testing is a requirement for getting the job then you know beforehand. You're aware of this requirement before they employ you so it's not breaching your privacy rights.
Answer:
a
Explanation:
The company can allow whoever they want into the company and it is their choice to test their employees for drugs.
___________ is a way of saving a file so it can be used by a different program. A. Selecting B. Exporting C. Citing D. Formatting Please select the best answer from the choices provided A B C D Mark this and return
Answers
Answer:
B. Exporting
Explanation:
I need help on creating my resume. I’m a high schooler currently in the 11th grade. I haven’t won any awards here at my high school, but I have won awards in the past like in middle school and elementary school. Can I include some of them on to my resume? Please help!!
Awards that I have won are mvp (middle school) leadership (elementary)
Answers
To create an effective resume, you must explain your educational and professional experiences. If you are still a student looking for your first professional opportunity, a good way to attract the attention of recruiters is to include your awards won in the educational environment on your resume.
How to create a good resume?Some tips can be important for you to create an attractive resume. It's always good to align your experiences with the area you want to compete in, that is, include courses, extra curricular experiences and awards that have to do with the field of work that interests you. Other important tips are:
Keep your CV objective and conciseReview your personal dataHighlight your personal achievementsBe honest about the information providedInclude your volunteer workTherefore, for a student to create an effective curriculum, the inclusion of awards and achievements from student life will attract the attention of the recruiter by showing interest, dedication and perspectives of the candidate, being a great opportunity to win a job.
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Cindy forgot to set the parking brake in her car and left it in neutral. As a result her car rolled down her driveway and hit her neighbor's fence. Which of Cindy's coverages will pay for the neighbor's fence?
Answers
Cindy's property damage liability coverage will pay for her neighbor's fence.
Why is it?
This coverage is included in most auto insurance policies and covers damages that the policyholder (Cindy) causes to another person's property while driving.
In this case, Cindy's car caused damage to her neighbor's fence, so her property damage liability coverage will cover the cost of repairing or replacing the fence. It's important to note that liability coverage only covers damages that the policyholder is legally responsible for, so if Cindy's neighbor was partly or fully responsible for the accident, the coverage may not apply.
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complete question:
Which of Cindy's coverages will provide coverage for the damage to her neighbor's fence after her car, which was left in neutral without the parking brake set, rolled down her driveway and collided with the fence?
ABC Limited entered into a contract with XYZ (Pty) Ltd for the supply of electricity to the plant of XYZ situated in Walvis Bay Namibia. The contract will come into effect on the 01 June 2020 for a period of 3 years. ABC Limited is expected per the contract to provide the electrical transformer to XYZ, as well as two electrical engineers will be sourced out to XYZ for the maintenance of the electricity supply to XYZ’s plant. ABC Limited usually sells transformers at the price of NAD 1,500,000.00; however, they will be providing the transformer to XYZ Limited free as part of the contract. ABC Limited only source out their engineers to their clients that have entered into the electricity supply contract with them. The contract stipulated the prices to XYZ as below: Monthly electricity cost NAD 175,000.00 Engineers support monthly cost NAD 120,000 XYZ may use electricity to no limit. The monthly electricity cost is at a fixed monthly rate. The appropriate nominal interest rate applicable to the internet service provision contracts is 10% per annum, compounded monthly. It remains fixed for the full period of the contract.
REQUIRED
a) Provide the journal entries to account for the contract with XYZ (Pty) Ltd in the records of ABC Limited for the year ended 31 December 2020. Journal entries are to be provided on each relevant date (do not accumulate amounts for the year).
Answers
Answer:
HOPE IT'S HELP YOU
Explanation:
I'M SORRY IF THE PICTURE IS SO BLURRY.
Propose your top three potential social causes for your organization and why your selected social cause or issue is a good match with your chosen corporation for creating a corporate social responsibility (CSR) campaign.
Answers
By selecting a social cause that aligns with their values and corporate goals, companies can create a CSR campaign that resonates with stakeholders and helps to build a positive reputation for their brand.
There are various social causes that companies may choose to support, depending on their corporate social responsibility goals. Here are the top three social causes that I would recommend for an organization, along with reasons why they are good matches for creating a CSR campaign:1. Environmental conservation: Protecting the environment and promoting sustainable practices is a social cause that has gained widespread attention in recent years.
As climate change continues to be a pressing issue, businesses that take a proactive approach to reducing their carbon footprint can establish themselves as responsible and sustainable entities. This is a good match for companies that have a large environmental impact, such as those in the manufacturing or transportation sectors. A CSR campaign focused on environmental conservation can include initiatives such as reducing waste, using renewable energy sources, and promoting eco-friendly practices among employees and customers.
2. Education: Investing in education is one of the most effective ways to support social development and empower individuals and communities. For companies that want to create a CSR campaign that has a tangible impact on people's lives, education is a great choice. This is especially relevant for companies that have a strong local presence and want to support the communities in which they operate. A CSR campaign focused on education can include initiatives such as donating educational resources to schools, providing scholarships to students, or organizing workshops and training programs for employees and community members.
3. Health and wellness: Promoting health and wellness is a social cause that has become increasingly relevant in light of the COVID-19 pandemic. Companies that prioritize the well-being of their employees and customers can create a positive image for themselves and build strong relationships with stakeholders. This is a good match for companies in the healthcare or hospitality sectors, as well as those that offer wellness-related products or services.
A CSR campaign focused on health and wellness can include initiatives such as promoting healthy lifestyles, providing access to healthcare services, or supporting mental health awareness and treatment programs.Overall, each of these social causes has the potential to create a meaningful and lasting impact, both for the company and the communities it serves.
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Which of the following statements about the government is correct?
Government employs people and spends money to provide many services.
Government supplies many services that businesses cannot, or will not provide because they cannot make a profit.
Government helps consumers and businesses by directing the way the economy grows.
All of these choices are correct.
Answers
Answer:
All of these choices are correct.
Explanation:
Government manages the dispensation and control of power (politics).Marketplace manages the dispensation and control of wealth (economics).Community manage the dispensation and control of status (membership).Robert wants to get serious about saving for a new car. Which account would you recommend? Why?
Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary. She’s hoping to earn a bit more interest than she currently is with that $45,000 just sitting in her traditional bank’s savings account. Which account would you recommend? Why?
Janelle likes to keep all her savings goals separate, so she has an account for each one, including an account to save for her college textbooks every semester. She buys books about every 6 months, with roughly $550 due each time. She likes to save the money up in installments, with auto-deposits from each of her twice monthly paychecks. She’s wondering if her online savings account, earning 0.75%, is still her best option for monthly deposits toward her textbooks. Which account would you recommend? Why?
Answers
Answer:
1) Money Market Savings Account
2) Online Savings Account
Explanation:
1) Money market accounts which are also known as money market savings or deposit accounts, are accounts that may give interest on a tier bases and may also give waivers on due fees if a customer is able to maintain a particular balance per month
Money market accounts are accounts that is better adapted for a customer that is able to maintain a substantial balance in their bank accounts and would like to be offered a higher interest than that which is given by a basic savings account
2) For Janelle, given that her savings duration are for a period of t months and the amount save is $550, the savings account with a high combined interest rate and flexibility is the online savings account, and given that her current online savings account earns 0.75%, which is high compared to average interest rate of online savings account, her online savings account is still her best option.
assume that your father is now 40 years old ,that he plans to retire in 20 years and that he expects to live for 25 years after he retires ,that is until he is 85 .He wants a fixed retirement income that has the same purchasing power at the time he retires as 75000 has today (he realizes that the real retirement income will begin after he retires ) his retirement income will begin the day he retires ,20 years from today and he will get 24 additional annual payments .Inflation is expected to be 4 percent per year from today forward; he currently has 200000 saved up ; and he expects to earn a return on his savings of 7 percent per year ,annual compounding .To the nearest dollar ,how much must he save during each of the next 20 years (with deposits being made at the end of each year) to meet his retirement goal.
Answers
To the nearest dollar, the amount of savings each year for 20 years the father requires to deposit at the end of each year is $163,248.
How are the annual savings computed?
The annual savings are like the annual payments made into the retirement account.
These annual savings compounded yield a present value of $1,300,000 in addition to the father's current savings of $200,000.
The present value at retirement should total $1,500,000.
Real interest rate = 7%
Inflation rate = 4%
Nominal interest rate = 11%
N (# of periods) = 20 years
I/Y (Interest per year) = 11% (7% + 4%)
PV (Present Value) = $1,300,000 ($75,000 x 20 - $200,000)
FV (Future Value) = $0
The total amount required for retirement in 20 years = $1,500,000 ($75,000 x 20)
Results:
Annual Savings = $163,248.33
Sum of all periodic savings = $3,264,966.56
Total Interest - $1,964,966.56
Thus, the annual savings required for retirement in 20 years is $163,248.
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Assignment: Create a Marketing Plan
Answers
Your targeted marketing and advertising actions are outlined in a marketing plan for a set time period, often the following 12 months.
The purpose of a marketing planA marketing strategy can assist you in identifying your target market and the advantages your product or service can provide for it. determine how you might entice new clients. Encourage your current clients to keep using your product or service.
What are the five marketing strategies?The five marketing Ps—Product, Pricing, Promotion, Place, and People—serve as a framework for marketing initiatives and help keep marketers focused where they should be.
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I have $10,967.74 in a brokerage account, and plan to deposit an additional $6,000.00 at the end of every future year until my account totals $270,000 and I expect to earn 13% annually on the account. How many years will it take
Answers
Note that with respect to the deposite, it will take approximately 8.19 years for the account to reach $270,000.
How is this so?To determine how many years it will take for the account to reach $270,000,we can use the future value of an annuity formula.
The formula is -
FV = P x [(1 + r)ⁿ⁻¹] / r
Where -
FV = Future value ($270,000)
P = Annual deposit ($6,000)
r = Interest rate per period (13% or 0.13)
n = Number of periods (number of years)
We need to solve for n, so we can rearrange the formula as -
n = log((FV x r / P) + 1) / log(1 + r)
Plugging in the values -
n = log((270000 x 0.13 / 6000) + 1) / log(1 + 0.13)
Using a calculator, we find that n is approximately 8.19.
thus, it is corect to state that, it will take approximately 8.19 years for the account to reach $270,000.
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Accounts Receivable has a balance of $6,000, and the Allowance for Bad Debts has a credit balance of $400. The allowance method is used. What is the net realizable value of Accounts Receivable after a $150 account receivable is written off
Answers
Answer:
Net realizable value of accounts receivable is $5,600
Explanation:
Balance in allowance for uncollectible account = Balance before write off - Account written off
= $400 - $150
= $250
Net realizable value of accounts receivable is therefore;
Accounts receivable balance
$6,000
Less: Account written off
$150
Balance after write off
$5,850
Less : Allowance for uncollectible account
$250
Net realizable value
$5,600
when you have key information about a company's products and services and use it to help customers understand how these products and services will meet their needs, you have
Answers
When you have key information about a company's products and services and use it to help customers understand how these products and services will meet their needs, you have product knowledge. Having a strong understanding of a company's products and services is essential for sales and customer service professionals, as it allows them to effectively communicate the features and benefits of the products to customers. By using product knowledge to help customers understand how a product or service can meet their needs, sales and customer service professionals can improve customer satisfaction and increase sales.
A pipeline company is designing an undersea pipeline to
an off-shore field. It anticipates the possibility that this line could be used in a
neighboring field. The design thus calls for a "Y-shaped" layout, where the
single line from the shore has a branch to the second field. The company
could install the branch now at an extra cost of $18M. fI the oil prices and the
quantity of crude justify the full exploitation of the second field, the branch
pipeline would be worth $40M. However, there is ac h a n c e , may be 2 in 3,
that the oil company would only develop part of the second field, in which
case the branch pipelinewould worth only $10M.
Alternatively, the company could lay a line to a single field, and enable the
possibility of the branch link tothe second field by creating a "T-junction" ni
the pipeline. fI the oil companies decide to develop the second field, the
pipeline company would then have to pay $20 million to lay the branch line.
AL.I. LIBRARY
You may assume for this problem that:
-It will take 2 years to know fi the second field wil be developed and the
value of pipeline;
-The pipeline couldbe sold to other companies at the stated values;
-The discount rate for the company is 15% annually; and
-The risk-free rate is 5% annually.
4.1 What kind of option that is available to thesituation? Explain your
answer.
4.2 Draw an option payoff diagram for the option in this venture
indicates the value of the exercise price and what is the underlying
asset price in this case.
4.3 Calculate the value of the option using the decision tree.
4.4 Draw the option tree and find the value of the option using the one
period binomial approximation.
Answers
Assuming that the pipeline company is designing an undersea pipeline for transporting oil or natural gas, one of the main challenges that they would need to address is the risk of potential leaks or damage to the pipeline.
In order to mitigate these risks, the company may consider various design options such as using thicker pipes, adding protective coatings, or installing monitoring systems.
To evaluate these design options, the company could use an option tree analysis which involves creating a decision tree that outlines the different possible scenarios and their associated costs and benefits. For example, one scenario could be a leak in the pipeline which would require costly repairs and cleanup efforts, while another scenario could be a successful pipeline with lower maintenance costs and increased revenue.
Using a one-period binomial approximation, the company could estimate the value of the option tree by calculating the expected value of each scenario and discounting it by the probability of its occurrence. This would provide a rough estimate of the expected value of each design option, allowing the company to make informed decisions about the most cost-effective and safe design for their undersea pipeline.
In summary, designing an undersea pipeline for transporting oil or gas requires careful consideration of potential risks and trade-offs. Using an option tree analysis and one-period binomial approximation can help pipeline companies evaluate different design options and make informed decisions based on their expected costs and benefits.
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Red Sun Rising Corp. has just signed a lease for its new manufacturing facility. The lease agreement calls for annual payments of $1,050,000 for 15 years with the first payment due today. If the interest rate is 3.23 percent, what is the value of this liability today
Answers
Answer:
$12,727,043.35
Explanation:
The value of the lease payments today can be ascertained using the formula for the present value of an annuity due shown below:
PV=annual payments*(1-(1+r)^-n/r*(1+r)
annual payments=$1,050,000
r=interest rate=3.23%
n=number of annual payments in 15 years=15
PV=$1,050,000*(1-(1+3.23%)^-15/3.23%*(1+3.23%)
PV=$1,050,000*(1-0.62074194 )/3.23%*1.0323
PV=$1,050,000*0.37925806/ 3.23%*1.0323
PV=$12,727,043.35
Indicate whether a debit or credit decreases the normal balance of each of the following accounts.
a. Land
b. Service revenue
c. Interest payable
d. Accounts receivable
e. Salaries expenses
f. Common stock
g. Prepaid insurance
h. Building
i. Interest revenue
j. Dividends
k. Unearned Revenue
l. Accounts payable
Answers
Answer:
Explanation:
A. Credit
b. Debit
c. Debit
d credit
e credit
f. Debit
g. Credit
h. Credit
i. Debit
j. Credit
k. Debit
l. Debit
What is an asset?
A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be beneficial is referred to as an asset. They are acquired or produced in order to raise a company's value or improve the operations of the company. It can be tangible or intangible.
What is a liability?A liability is a debt that a firm owes that will cause it to forfeit future financial gains from dealing with other people or companies. A liability may be used in place of equity as a means of funding a business. Additionally, some liabilities are necessary for day-to-day corporate operations, such as trade payables or tax payments.
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Match the factor with how it contributes to a product's launch.
1. budget
enhances consumers'
understanding
2. marketing
gauges potential channels
3. market research
executes strategy for sales
Answers
1. budget —> executes strategy for sales
2. Marketing —> gauges potential channels
3. Market research —> enhances consumers’ understanding
n order to help you answer this true/false statement, which words should be underlined?: Black cats can only be found in countries in Northern America. a. Only, in, Northern America c. Northern America b. Black cats, only, countries, Northern America d. Countries, Northern America Please select the best answer from the choices provided A B C D
Answers
Answer:
B. Black cats, only, countries, Northern America
Explanation:
Just took the test on Edg 2020
The words that need to be underlined includes Black cats, only, countries, Northern America.
What are the Underlined word?The word are intended to be highlighted to make the reader understand whether the given statement is a true statement of not.
Hence, the words that need to be underlined includes Black cats, only, countries, Northern America.
Therefore, the Option B is correct.
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What is the purpose of blockchain technology?
Answers
The purpose of blockchain technology is to provide a decentralized and transparent system for recording and verifying transactions or information. It is a distributed ledger technology that allows multiple parties to maintain a shared database without the need for a central authority. Overall, blockchain technology provides a robust and secure framework for businesses to enhance security, transparency, efficiency, and trust in their operations, leading to improved processes and better customer experiences.
The main purpose of blockchain technology is to create a distributed and secure ledger of transactions. Some key aspects of blockchain technology include:
Distributed - The blockchain is distributed across a network of computers instead of being stored in a centralized location. This makes it more resistant to data tampering and hacking.
Secure - Blockchain uses cryptographic techniques to ensure the integrity and security of the data. Once a transaction is recorded, it is very difficult to change or hack the data.
Transparent - All transactions recorded on the blockchain are publicly visible to anyone with access to the network. This transparency helps prevent fraudulent activities.
Automatic - Blockchain uses a distributed consensus mechanism to automatically validate transactions. There is no need for a central authority or intermediary.
Immutable - Once a transaction is recorded on the blockchain, it is almost impossible to change. This immutability provides a high degree of certainty for transactions.
The main applications of blockchain technology are:
Digital currency - Blockchain underlies cryptocurrencies like Bitcoin which are decentralized digital currencies.
Financial transactions - Blockchain can be used to record financial transactions in an efficient, secure and transparent manner.
Supply chain management - Blockchain can track materials, payments and documents throughout supply chains.
Smart contracts - Self-executing contracts can be embedded in the blockchain to automatically execute terms of agreements.
Asset registry - Assets like land titles, jewelry, artwork, etc. can be recorded on a blockchain to prove ownership and authenticity.
In summary, the key purpose of blockchain technology is to create an incorruptible digital ledger of data that is distributed across a network. This makes the data secure, transparent and permanent.