Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $10,000 each year for tuition, $2,500 each year for textbooks, and $10,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $20,000 per year. Assume that if you decided not to go to college, your parents would not let you live at home. What is your opportunity cost for four years of college?
Answers
Answer:
The opportunity cost is $130,000 for the four year duration.
Explanation:
Here, it is clear that I will not go to the job, so going to university is the only option left. Now, the loss of the job income is also an opportunity cost with an amount $20,000 which will aggregated with the University specific costs.
University Specific cost for 4 Years = 4 * (Tuition Cost + Textbooks + Job Opportunity loss)
The room and board cost is common between college and the university so it must not be considered for the decision making.
By putting values, we have:
University Specific cost for 4 Years = 4 * ($10,000 + $2,500 + $20,000)
University Specific cost for 4 Years = $130,000 for the four years
The opportunity cost is $130,000 for the four year duration.
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Related Questions
Which type of credit is used to lease a building?
Answers
Answer:
service credit
Explanation:
One of the mentioned assumptions of portfolio management theory is that investors are rational. A
rational investor:
Answers
Answer:
Prefers a higher return for a given risk and prefers a lower risk for given return.
Explanation:
Everyone has a unique spending plan. Which of the following factors has
the greatest effect on a person's spending decisions?
Answers
Answer:
Values
Explanation:
You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest)
Loan amount: $776,000
Interest Rate: 11.6%
Life: 41 years
Date of Loan: January 1, 2021
Required:
1. What is the annual payment (round to the nearest $)?
2. What are the total interest payments (round to the nearest $)?
3. After 23 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
4. After 23 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
Redo the problem if the interest rate is 1%
Required:
5. What is the annual payment (round to the nearest $)?
6. What are the total interest payments (round to the nearest $)?
7. After 23 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
8. After 23 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
Answers
The annual payment on the loan is $108943.
How to calculate the loan?Principal = $776000
Rate = 11.6%
Time = 41 years
The total interest will be:
= PRT/100
= (776000 × 11.6 × 41)/100
= $3690656
The total amount to be paid will be:
= $776000 + $3690656
= $4466656
The annual payment will be:
= Total amount / Number of years
= $4466656 / 41
= $108943
After 23 years, the interest will be:
= 776000 × 11.6 × 23)/100
= $2070368
The percentage of the total interest will be:
= $2070368/$3690656
= 56.1%
When 23 payments have been made, the percentage of the total amount will be:
= (776000 + 2070368) / 4466656
= 2846368/4466656
= 63.72%
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Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center
Answers
Answer:
Influencer
Explanation:
An influencer is a person that has the ability to affect the purchasing decision of customers through their authority, position, relationship, or relationship.
They have good social relations and this is an asset in directing customer buying decision.
In the given scenario Melanie has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies.
This knowledge will be beneficial in the buying centre, where she can be an influencer.
ABC Electronics Corporation Ltd. recently diversified its activities and started producing computers. It employed personnel at lower level and middle level. It has received several applications for the post of Commercial Manager-Computer Division. It could not decide upon the suitability of the candidate to the position, but did find that Mr. David is more qualified for the position than other candidates. Now the Corporation has created a new post below the cadre of General Manager i.e. Joint General Manager and asked Mr. David to join the Corporation as Joint General Manager. Mr. David agreed to it viewing that he will be considered for the General Manager's position based on his performance. Mr. Henery, the Deputy General Manager of the Corporation and one of the candidates for General Manager's position was annoyed with the management's practice. But, he wanted to show his performance record to the management at the next appraisal meeting. The management of the Corporation asked Mr. Smith, General Manager of Televisions Division to be the General Manager in-charge of Computer Division for some time, until a new General Manager is appointed. Mr. Smith wanted to switch over to the Computer Division in view of the prospects, prestige and recognition of the position among the top management of the Corporation. He viewed this assignment as a chance to prove his performance. The Corporation has the system of appraisal of the superior's performance by the subordinates. The performance of the Deputy General Manager, Joint General Manager and General Manager has to be appraised by the same group of subordinates. Mr. David is a stranger to the system as well as its Modus Operandi. Mr. Smith and Mr. Henery were competing with each other in convincing their subordinates about their performance and used all sorts of techniques for pleasing them like promising them a wage hike, transfers to the job of their interest, promotions etc. However, these two officers functioned in collaboration with a view to pull down Mr. David.
Answers
There should be a structured evaluation tool to analyze the performance appraisal
What is performance appraisal?The other parts of the question include:
a. How do you evaluate the workers appraisal in this case?
b. Do you suggest any technique to avert politics creeping into the performance of appraisal?
It should be noted that performance appraisal simply means review if the job performance of an employee.
In order to evaluate the workers appraisal, specific goals should be set and there should be performance standards.
The technique to avert politics creeping into the performance of appraisal is that personal bias should be avoided and the employees should be aware of the performance appraisal tools.
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Answer:
Explanation:
How do you evaluate the workers' appraisal in this case?
b) Do you suggest any techniques to avert politics creeping into the process of performance appraisal by subordinates?
(c) What measures would you like to suggest in dispensing with such an appraisal system?
(Economics)
In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.
Answers
International trade refers to the exchange of goods and services across national borders. It plays a significant role in promoting economic growth and providing several global benefits.
One of the primary advantages of international trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods that they can produce more efficiently and at a lower cost compared to other countries. As a result, resources are allocated more efficiently, leading to increased productivity and higher standards of living.Furthermore, international trade enables countries to access a wider variety of goods and services that may not be available domestically. This increases consumer choices and provides opportunities for individuals to enjoy a higher quality of life. For example, consumers in a landlocked country can still enjoy fresh seafood by importing it from coastal countries. Similarly, individuals in colder climates can purchase tropical fruits from countries where they are grown.Multinational corporations (MNCs) also contribute to the global benefits of international trade. These are companies that operate in multiple countries, with business activities ranging from production to distribution. MNCs play a crucial role in facilitating international trade by establishing global supply chains, investing in foreign markets, and creating jobs. They bring capital, technology, and managerial expertise to host countries, which can lead to economic development and improved living standards.Moreover, MNCs often engage in research and development (R&D) activities, driving innovation and technological advancements. This can have far-reaching benefits for both the host country and the global economy. For instance, a multinational pharmaceutical company conducting R&D in a developing country may discover new drugs or medical treatments that can benefit people worldwide.In conclusion, international trade and multinational corporations provide numerous global benefits. They promote specialization, resource allocation efficiency, and access to a wider variety of goods and services. Additionally, MNCs contribute to economic development, job creation, innovation, and technological advancements. Overall, international trade and MNCs play a crucial role in fostering economic growth and improving the well-being of individuals and nations around the world.
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when it comes to managing money success is about 80% knowledge and 20% Behavior true or false
Answers
Answer:
huh
Explanation:
do you have a picture of the question because I don't get it but I'm trying to help
Type the correct answer in the box. Spell all words correctly.
What does the last paragraph in a cover letter deal with?
The closing paragraph of a cover letter is where you can mention your
information and request for an interview
Answers
The closing paragraph of a cover letter typically deals with summarizing the main points of the letter and expressing your interest and enthusiasm for the position.
The closing paragraph serves as a conclusion to your letter and provides a final opportunity to make a strong impression on the employer. In this paragraph, you can briefly restate your qualifications and how they align with the requirements of the job. It's also a good place to mention any additional relevant information that you haven't already included in the body of the letter. Furthermore, you can express your gratitude for the opportunity to apply and express your interest in moving forward to the next stage of the hiring process. Finally, you can use the closing paragraph to request an interview or indicate that you are available for further discussion.
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The free enterprise system is a type of economy that:
O A. protects consumers by making sure businesses always act
ethically
O B. allows businesses to operate without much government
interference.
C. uses government policies to reduce the price of important
consumer goods.
D. does not strictly enforce intellectual or private property rights.
SUBMIT
Answers
Answer:
B. allows businesses to operate without much government
interference.
Explanation:
The free enterprise system is an economic model where government participation is minimal. The private sector owns the majority of factors of production. The laws of supply and demand determine market prices, the type, quality, and quantity of goods to be availed for sale.
The government's role is mainly regulatory. Buyers and sellers have the freedom to choose what to sell or buy. Profits are a big motivation to do business under the free enterprise system.
The free enterprise system is a type of economy that allows businesses to operate without much government interference. Thus, option B is appropriate.
Free enterprise is a market economic system that gives people the freedom to decide how to manage their own finances.
Supply and demand, two economic forces, govern the creation of goods and services in a market economy. Market economies are built on free transactions and are not governed by a centralized authority (such as a government).
A market economy is an economic system in which decisions about production, distribution, and investment are influenced by the signals provided by supply and demand on prices.
Thus, option B is correct.
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What makes penny stocks risky investments with uncertain rates of return? Choose four correct answers.
They generally have a low trading volume.
They have a low market price of less than $5.
They represent a share of a company’s value.
It is difficult to find reliable information about the company.
They are more likely to be a part of a “pump and dump” scheme.
Answers
Answer:1,2,4,5
Explanation: just took the assignment
Answer:
1, 2, 4, 5
Explanation:
Got it right on edge 2020
Which feature is a point of differentiation between products and services
Answers
Answer:
Products are tangible, offered by the companies to the customers in exchange for money.
Services are the intangible economic product that is provided by a person on the other person’s demand. It is an activity carried out for someone else.
Explanation:
Question 6 of 10
What was the main purpose of the Sarbanes-Oxley Act?
A. To increase competition in the accounting industry
B. To increase tax revenue for the government
O C. To create jobs for accountants
D. To protect investors from fraud and false financial reporting
Answers
The main purpose of the Sarbanes-Oxley Act is to protect investors from fraud and false financial reporting (option D).
What is financial reporting?Financial reporting is described as a process through which the financial statements of an organization are issued. It is a process that includes communication as well as documentation of the financial performance and financial activities of an organization that is carried out for a specific period.
The Sarbanes-Oxley Act is a law in the US, and the main purpose of this act is to protect investors. The disclosure made through financial reporting is made accurate and reliable through the implementation of this act.
It can be concluded that the main purpose of the Sarbanes-Oxley Act is to protect investors from fraud and false financial reporting (option D).
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Windborn Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock.
The following amounts were distributed as dividends:
20Y1 $30,000
20Y2 12,000
20Y3 45,000
Common Stock
(dividends per share)
I cannot figure out Y1 or Y3
Answers
The dividends per share for the common stock in year 1 (Y1) is $0.60 per share, and in year 3 (Y3) is $0.90 per share.
To calculate the dividends per share for the common stock in year 1 (Y1) and year 3 (Y3), we need to determine the total dividends distributed and divide them by the number of common shares outstanding.
Given information:
Cumulative preferred stock: 15,000 shares, 1% dividend
Common stock: 50,000 shares, $30 par value
Dividends distributed:
Y1: $30,000
Y2: $12,000
Y3: $45,000
First, let's calculate the dividends per share for the cumulative preferred stock in each year.
Dividends per share for cumulative preferred stock = (Par value * Dividend rate) / Number of preferred shares
Dividends per share for cumulative preferred stock = ($100 * 1%) / 15,000 shares
Dividends per share for cumulative preferred stock = $1 / 15,000
Dividends per share for cumulative preferred stock = $0.000067 per share
Now, let's calculate the dividends per share for the common stock in year 1 (Y1) and year 3 (Y3).
For Y1:
Total dividends for common stock = Dividends distributed - (Dividends per share for cumulative preferred stock * Number of preferred shares)
Total dividends for common stock = $30,000 - ($0.000067 * 15,000)
Total dividends for common stock = $30,000 - $1.005
Total dividends for common stock = $29,998.995
Dividends per share for common stock in Y1 = Total dividends for common stock / Number of common shares
Dividends per share for common stock in Y1 = $29,998.995 / 50,000 shares
Dividends per share for common stock in Y1 = $0.5999799 per share (rounded to $0.60 per share)
For Y3:
Total dividends for common stock = Dividends distributed - (Dividends per share for cumulative preferred stock * Number of preferred shares)
Total dividends for common stock = $45,000 - ($0.000067 * 15,000)
Total dividends for common stock = $45,000 - $1.005
Total dividends for common stock = $44,998.995
Dividends per share for common stock in Y3 = Total dividends for common stock / Number of common shares
Dividends per share for common stock in Y3 = $44,998.995 / 50,000 shares
Dividends per share for common stock in Y3 = $0.8999799 per share (rounded to $0.90 per share)
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You are appointed by the trade union to represent the members of the union on resolving disputes on discrimination involving salary. Explain ways that can be used to resolve the disputes.
Answers
As the appointed representative of the trade union in resolving disputes related to salary discrimination, there are several ways to address and resolve such issues. Collaboration, evidence-based discussions, and a commitment to equality are essential in resolving disputes related to salary discrimination effectively.
Negotiation and Mediation: Encourage open dialogue between the involved parties, including the affected employees, management, and relevant stakeholders. Engage in negotiation and mediation to explore potential solutions and reach a mutually agreeable resolution. This can involve discussing concerns, presenting evidence of salary disparities, and working towards a fair and equitable compensation structure.
Collect and Analyze Data: Gather comprehensive data on salaries, job roles, qualifications, and performance evaluations to identify any discriminatory patterns. Conduct a thorough analysis to determine if there are significant differences in pay between individuals based on protected characteristics (such as gender, race, or age). This data can serve as evidence in support of addressing the discriminatory salary practices.
Policy Review and Implementation: Review existing policies and procedures related to salary determination and promotion practices within the organization. Identify any gaps or biases that contribute to discrimination. Advocate for the development and implementation of fair and transparent policies that promote equal pay for equal work and provide guidelines for salary negotiations, evaluations, and promotions.
Legal Support: If informal resolution attempts are unsuccessful, seek legal assistance to address the salary discrimination issues. Consult with labor or employment lawyers who specialize in discrimination cases to explore legal options, including filing complaints with relevant authorities or pursuing litigation if warranted.
Awareness and Training: Promote awareness and education on issues of salary discrimination within the organization. Conduct workshops, training sessions, or seminars to educate employees and management about equal pay rights, anti-discrimination laws, and the importance of fair and unbiased salary practices. This can help foster a culture of inclusivity and equity within the workplace.
Monitor and Follow-Up: Regularly monitor and review salary practices and the implementation of agreed-upon resolutions. Ensure compliance with any newly established policies and continue to address any emerging issues or concerns promptly. Ongoing monitoring and follow-up are crucial to ensure sustainable changes and prevent future occurrences of salary discrimination.
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Create a table that identifies the macroeconomic policies for a high-income country, a middle-income country, and a low-income country.
Answers
Macroeconomic policies for a country can vary based on their economic development level.
The macroeconomic policies for a high-income country, a middle-income country, and a low-income country could be as follows:
High-income country:
A high-income country is typically characterized by high levels of economic development, a skilled labor force, and a stable economy. In such countries, macroeconomic policies may include:
Fiscal policy: The government may implement expansionary fiscal policies to stimulate economic growth, such as increasing government spending or reducing taxes.Monetary policy: The central bank may use monetary policy tools, such as adjusting interest rates or controlling the money supply, to manage inflation and stabilize the economy.Trade policy: The government may promote free trade to support international competitiveness and attract foreign investment.Middle-income country:
A middle-income country is a country that has made some progress in economic development but still faces challenges, such as income inequality and unemployment. In such countries, macroeconomic policies may include:
Fiscal policy: The government may focus on reducing income inequality by increasing public spending on social welfare programs, such as education and healthcare.Monetary policy: The central bank may focus on maintaining price stability to control inflation and encourage investment.Trade policy: The government may promote exports and attract foreign investment by offering tax incentives and establishing trade agreements with other countries.Low-income country:
A low-income country is typically characterized by low levels of economic development, limited infrastructure, and a high level of poverty. In such countries, macroeconomic policies may include:
Fiscal policy: The government may prioritize public investment in infrastructure, such as roads, schools, and hospitals, to encourage economic development.Monetary policy: The central bank may focus on increasing access to credit and improving financial inclusion to encourage investment and economic growth.Trade policy: The government may focus on increasing exports and diversifying the economy by promoting the development of local industries and establishing trade agreements with other countries.To know more about macroeconomic policies:
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List 10 ways you can apply green computing to your daily life.
Answers
1. Making Purchases from Businesses That Have a Commitment to the Environment
2. Taking Part in Programs for Recycling Electronic Equipment
3 Implementing Virtualization and Other Technologies
4 Reducing the Amount of Printed Material and Recycling Paper
5 Power down your computer and monitor
6. Modify the level of Brightness
7 Refrain from Utilizing a Screen Saver
8 Disconnect All Extraneous Devices
9 Make sure your printer is turned off.
10 Printed on Both Sides of the Sheet
This is further explained below.
What is computing?Generally, Computer refers to any goal-oriented activity that requires or benefits from the use of computing hardware or that creates such machinery.
The investigation and testing of algorithmic processes, as well as the creation of both hardware and software, are included in this field.
In conclusion,
1. Making Purchases from Businesses That Have a Commitment to the Environment
2. Taking Part in Programs for Recycling Electronic Equipment
3 Implementing Virtualization and Other Technologies
4 Reducing the Amount of Printed Material and Recycling Paper
5 Power down your computer and monitor
6. Modify the level of Brightness
7 Refrain from Utilizing a Screen Saver
8 Disconnect All Extraneous Devices
9 Make sure your printer is turned off.
10 Printed on Both Sides of the Sheet
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3. Jiro has £50 000 in a savings account. He intends to leave it there for the next 3
years and has a fixed annual interest rate of 3% per year. How much will his £50 000
be worth after 3 years?
Answers
Jiro', £50 000 in the savings account will be worth £54636.35 after 3 years.
What is a savings account?Savings accounts are deposit accounts that often pay more interest than checking accounts that do. Savings accounts place a cap on the number of specific transfers and withdrawals that can be made from the account throughout each cycle of monthly statements. Savings accounts are a secure place to save cash that you might need at a moment's notice. Almost any bank or credit union allows you to start one, frequently totally online and with little to no initial deposit. These accounts consistently pay the stated rate of interest, and while some have little fees, most do not.
Given,
Principle amount P = £50000
Rate of interest = 3% = 0.03
Time period T = 3 year
Total amount = P(1 + R)^T
Total amount = 50000(1 + 0.03)^3
= £54636.35
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Which is the BEST example of marketing within sports?
Answers
While super bowl ads and athlete endorsements are well-known examples of sports marketing in action, sports marketing also includes marketing that builds a brand around healthy or aspirationally athletic lifestyles. Using sports marketing strategies can add serious appeal for many consumers.
Josh buys an $8000 10-year bond that has a coupon rate of 4.5 %. If he keeps the bond to maturity, how much interest will he collect?
Answers
Josh will collect $3600 in interest if he keeps the $8000 10-year bond with a 4.5% coupon rate to maturity.
To calculate the interest that Josh will collect from the 10-year bond with an $8000 face value and a coupon rate of 4.5%, we need to consider the annual interest payment and the total number of interest payments over the bond's lifespan.
The annual interest payment can be calculated by multiplying the face value of the bond ($8000) by the coupon rate (4.5%). This gives us an annual interest payment of $360 (8000 * 0.045).
Since the bond has a 10-year maturity, there will be a total of 10 interest payments over its lifespan. Therefore, the total interest Josh will collect can be calculated by multiplying the annual interest payment ($360) by the number of interest payments (10).
Total interest = Annual interest payment * Number of interest payments
Total interest = $360 * 10
Total interest = $3600
Therefore, if Josh keeps the bond to maturity, he will collect a total of $3600 in interest over the 10-year period.
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Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)
What is the optimal production quantity for the card?
Answers
Answer:
≈ 9644 quantity of card
Explanation:
given data:
n = 4 regions/areas
mean demand = 2300
standard deviation = 200
cost of card (c) = $0.5
selling price (p) = $3.75
salvage value of card ( v ) = $ 0
The optimal production quantity for the card can be calculated using this formula below
= u + z (0.8667 ) * б
= 9200 + 1.110926 * 400
≈ 9644 quantity of card
First we have to find u
u = n * mean demand
= 4 * 2300 = 9200
next we find the value of Z
Z = ( \(\frac{p-c}{p-v}\) )
= ( 3.75 - 0.5 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV (0.8667 )
next we find б
б = 200\(\sqrt{n}\) = 400
Economic demand is?
A. the amount of a good or service that consumers are willing and able to buy at one price.
B. the amount of a good or service that consumers are willing and able to buy at various prices.
C.the amount of a good or service that producers are willing and able to produce at various prices.
D. the amount of a good or service that consumers are willing but not able to buy at various prices.
Which of the following is correct?
Answers
The correct answer is B. Economic demand is the amount of a good or service that consumers are willing and able to buy at various prices.
It reflects the relationship between the price of a product and the quantity that consumers are willing to purchase at that price. Demand is influenced by factors such as price, consumer preferences, income levels, and availability of substitutes.
As the price of a product decreases, the quantity demanded generally increases, and vice versa, following the law of demand. The demand curve represents this relationship, showing the quantity of a good or service that consumers are willing and able to buy at different price points.
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What adjustments would need to be made in the Operating Section of the statement of cash flows prepared under the indirect method to account for the changes in the Accounts Payable and Accrued Expenses account balances for Green Mountain Coffee Roasters?
Answers
Add back noncash expenses, such as depreciation, amortization, and depletion.
Explanation:
Question 1 of 5
What type of goal can help you be prepared for unexpected costs, such as
car repairs?
Long-term financial goal
An emergency fund
Retirement savings
Short-term financial goal
Subsi
Continue
Answers
A goal that can help you to be prepared when there are unexpected costs such as car repairs is An emergency fund.
How can you be prepared for unexpected costs?In order to be prepared for unexpected costs, the best thing to do is to have an emergency fund where you are able to save for when you may have to spend money that you are not prepared for.
The emergency fund would be best placed into an account that can earn interest but at the same time can be eaisly accessible. This was you can earn more money while saving for emergencies, and also be able to use the money for those unexpected costs.
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Al-Baida wants to buy a new machine with special purposes for an amount $ (1) million for the production of a product, and the economic life of the machine is (10) years, bearing in mind that there is no residual value for the machine at the end of its useful life. The company adopts the straight-line method in calculating the depreciation, and it is expected that the annual revenues from operating the machine will be 1,200,000 ID, and the annual expenses excluding taxes, (700,000 ID. If you know that the company adopts a discount rate of 12% The income tax rate is 30% for all years. Required: Calculate the following: .1. payback period. 2. Rate of accounting return on investment.
Answers
1. Payback period will be 2 years.
2. The rate of accounting return on investment for the machine is 35%.
To calculate the payback period, we need to determine the number of years it takes for the company to recover the initial investment of $1 million.
Step 1: Calculate the annual net cash flow.
Annual net cash flow = Annual revenues - Annual expenses excluding taxes
Annual net cash flow = $1,200,000 - $700,000 = $500,000
Step 2: Determine the payback period.
Payback period = Initial investment / Annual net cash flow
Payback period = $1,000,000 / $500,000
Payback period = 2 years
Therefore, the payback period for the investment in the machine is 2 years.
To calculate the rate of accounting return on investment, we need to determine the average annual net income generated by the investment.
Step 1: Calculate the average annual net income.
Average annual net income = (Annual revenues - Annual expenses excluding taxes) * (1 - Tax rate)
Average annual net income = $500,000 * (1 - 0.30)
Average annual net income = $350,000
Step 2: Calculate the rate of accounting return on investment.
Rate of accounting return on investment = Average annual net income / Initial investment * 100
Rate of accounting return on investment = $350,000 / $1,000,000 * 100
Rate of accounting return on investment = 35%
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SINGAPORE - Singtel will be implementing a wage freeze across the company, this year - except for operational and support staff - as part of a cost-cutting exercise by Singapore's largest
Group chief executive Chua Sock Koong said in a note to employees that the company
needed to brace itself for uncertainty because of the coronavirus outbreak and the weak
business sentiment.
Ms Chua said: “The management committee and I will each contribute at least half a month’s pay (to the Singtel Touching Lives Fund) while top management has been strongly urged to
make voluntary contributions of a quarter’s month’s pay.” She encouraged staff to give as well, adding that the company will match staff contributions dollar-to-dollar before directing the donations to the Community Chest’s Courage Fund and other beneficiaries working to fight the fall-out from the virus outbreak.
(a) Describe the THREE principles of Kant’s theory. (15 marks)
(b) Apply Kant’s theory to determine if the actions taken by Singtel CEO are considered ethical or not. (15 marks)
Answers
The three principles of Kant’s theory are the fact that the Transcendental Dialectic are known to be the soul, the world and God. The unique thing about the above ideas of reason is due to the fact that the reason is led by using the structure that posit objects which are said to be corresponding to those ideas.
When you Aapply Kant’s theory to determine if the actions taken by Singtel CEO, one is able to see that the motive (or means), and not consequence (or end), of an action is one that tells more on its moral value and thus it is ethical.
What are Kant's principles?Kant's moral philosophy is known to be one that is seen to be of the deontological normative theory.
It is one where he was said to have rejected the utilitarian idea which states that the rightness of an action is seen to be as a result of a function of how plentiful its outcome is.
Therefore, The three principles of Kant’s theory are the fact that the Transcendental Dialectic are known to be the soul, the world and God. The unique thing about the above ideas of reason is due to the fact that the reason is led by using the structure that posit objects which are said to be corresponding to those ideas.
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Which of the following describes the tax advantage of a qualified retirement plan
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Answer:
Qualified retirement plans give employers a tax break for the contributions they make for their employees. Those plans that allow employees to defer a portion of their salaries into the plan can also reduce employees' present income-tax liability by reducing taxable income.
Provides a way to accumulate substantial retirement income.
Those are some reasons, hope they helped!!
Explanation:
You are given the following information for Lightning Power Company. Assume the company’s tax rate is 24 percent.
Debt: 9,000 5.8 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.
Common stock: 420,000 shares outstanding, selling for $60 per share; beta is 1.11.
Preferred stock: 18,000 shares of 3.6 percent preferred stock outstanding, a $100 par value, selling for $81 per share.
Market: 5 percent market risk premium and 4.6 percent risk-free rate.
What is the company's WACC?
Answers
The Weighted Average Cost of Capital (WACC) for Lightning Power Company is 9.84%.
To calculate the Weighted Average Cost of Capital (WACC) for Lightning Power Company, we need to determine the cost of each component of its capital structure and their respective weights. The WACC is the weighted average of these costs.
Cost of Debt:
The debt component consists of 9,000 bonds with a 5.8 percent coupon rate, a $1,000 par value, and selling for 106 percent of par. The semiannual coupon payment is calculated as (5.8% * $1,000) / 2 = $29.
The current market price of the bond is 106% of $1,000, which is $1,060. The yield to maturity (YTM) can be calculated using financial calculators or Excel. Let's assume the YTM is 4.5%. Therefore, the cost of debt is 4.5%.
Cost of Common Stock:
The cost of common stock is determined using the Capital Asset Pricing Model (CAPM). The risk-free rate is given as 4.6%, and the market risk premium is 5%. The beta for Lightning Power Company's common stock is 1.11.
Using the CAPM formula: Cost of equity = Risk-free rate + Beta * Market risk premium. Therefore, the cost of equity is 4.6% + 1.11 * 5% = 9.71%.
Cost of Preferred Stock:
The cost of preferred stock is the dividend yield, which is the preferred dividend divided by the market price per share. The preferred stock has a 3.6% dividend yield, and it is selling for $81 per share. Therefore, the cost of preferred stock is 3.6% / $81 = 4.44%.
Next, we need to determine the weights of each component based on their market values. The market value of debt is 9,000 * $1,060 = $9,540,000. The market value of common stock is 420,000 * $60 = $25,200,000.
The market value of preferred stock is 18,000 * $81 = $1,458,000. The total market value of the company's capital structure is $36,198,000.
Now we can calculate the WACC using the formula:
WACC = (Weight of Debt * Cost of Debt) + (Weight of Equity * Cost of Equity) + (Weight of Preferred Stock * Cost of Preferred Stock).
Weight of Debt = $9,540,000 / $36,198,000 = 0.2639 (26.39%)
Weight of Equity = $25,200,000 / $36,198,000 = 0.6961 (69.61%)
Weight of Preferred Stock = $1,458,000 / $36,198,000 = 0.0401 (4.01%)
Plugging in the values, we get:
WACC = (0.2639 * 4.5%) + (0.6961 * 9.71%) + (0.0401 * 4.44%) = 2.88% + 6.78% + 0.18% = 9.84%.
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what a meaning this ;)
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Answer:
I guess your happy with one eye closed!
Explanation:
hehehe:>
A bank is preparing a financial asset for trading in the over-the-counter market. It most nearly sounds as though they are _____. securitizing securitizing collateralizing a loan collateralizing a loan creating a derivative creating a derivative offsetting negative risk
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A bank is preparing a financial asset for trading in the over-the-counter market. It most nearly sounds as though they are a derivative offsetting negative risk. The correct option is D.
What are over-the-counter financial instruments?OTC securities are those that are not listed on a national securities exchange. The majority of these securities are traded on Alternative Trading Systems (ATSs), which are quotation mediums that may include electronic interdealer quotation systems that show quotes from broker-dealers for many OTC securities.
In over-the-counter markets, trading is done electronically rather than in a physical location. An auction market system is very dissimilar from this. Dealers serve as market makers in OTC markets by quoting prices at which they will buy and sell securities, currencies, or other financial products.
Thus, the ideal selection is option D.
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