1. Does Samsung have a cost advantage, a differentiation advantage, or both a cost and differentiation advantage over its rivals?
2: What are the resources and capabilities that form the basis of Samsung’s cost or differentiation advantage(s)?
3. How difficult is it for competitors to replicate these resources and capabilities and thus how sustainable are Samsung’s competitive advantage(s)?

Answers

Answer 1
Samsung has both a cost and differentiation advantage over its rivals.The resources and capabilities that form the basis of Samsung’s cost or differentiation advantage include its wide range of product offerings, its large global presence, and its reputation for quality products.It is difficult for competitors to replicate these resources and capabilities, making Samsung's competitive advantage quite sustainable.


1. Samsung has both cost and differentiation advantages over its rivals. The advantages that a company has over its competitors are referred to as competitive advantages. These competitive advantages allow a firm to succeed in the market by gaining a larger market share and maximizing profits. Samsung has both cost and differentiation advantages over its competitors. Samsung's cost advantages enable the company to produce products at a lower cost than its competitors. Samsung's differentiation advantage, on the other hand, allows the company to produce goods that are different from those of its competitors, resulting in higher revenue and profits.

2. Samsung's resources and capabilities that form the basis of its cost or differentiation advantage include:

Innovative and advanced technologyDesign and brand recognitionOperational efficiencyLarge production scaleDistribution and supply chain networkGlobal research and development centersStrong marketing campaignsCustomer service and support

3. Samsung's resources and capabilities are difficult to replicate by competitors because of the company's large scale and significant investments in technology and research and development. Samsung's intellectual property rights, patents, and copyrights provide the company with legal protection and further barriers to entry. Samsung's cost and differentiation advantages are, therefore, sustainable in the long run due to the difficulty for competitors to replicate these resources and capabilities.

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Related Questions

PR 14-2B Vertical analysis of income statement For 2016, Fielder Industries income statement expenditure of an additional
$40,000
for advertising. At the end of the that included the the president, is presented with the following condensing. At the end of the year, Leif Grando, Fielder industries inc. Instructions 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Round to one decimal place. 2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).

Answers

This decrease in net income can be attributed to the additional $40,000 expenditure of advertising in 2016.

What is net income?

Net income is a measure of a company's overall financial performance and is calculated by subtracting all expenses, including taxes, from total revenues. It is also known as the bottom line, net earnings, or simply profit.

Fielder Industries Inc.
Comparative Income Statement
For the Years Ended December 31, 2015 and 2016
2015 2016
Net Sales 100.0% 100.0%
Cost of Goods Sold 70.0% 70.0%
Gross Profit 30.0% 30.0%
Selling, General and Administrative Expenses 25.5% 25.5%
Advertising Expenses 4.5% 5.0%
Income from Operations 0.0% 0.5%
Other Income and Expenses 0.8% 0.7%
Net Income Before Tax 1.8% 1.2%
Income Tax Expense 0.6% 0.6%
Net Income 1.2% 0.6%
The vertical analysis of the income statement reveals that the cost of goods sold and selling, general and administrative expenses remain consistent between 2015 and 2016, at 70.0% and 25.5% respectively. However, advertising expenses increase from 4.5% to 5.0%, resulting in a decrease in income from operations from 0.0% in 2015 to 0.5% in 2016. Other income and expenses increase from 0.8% to 0.7%, resulting in a decrease in net income before tax from 1.8% to 1.2%. Finally, income tax expense remains consistent at 0.6%, leading to a decrease in net income from 1.2% to 0.6%. This decrease in net income can be attributed to the additional $40,000 expenditure of advertising in 2016.

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Through efficient logistics at grasshopper grocers, the stock in the stores is automatically replenished when the company receives an alert from customers that their stock is low. Management at grasshopper grocers uses a just-in-time (jit) inventory system. True or False

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Management at grasshopper grocers uses a just-in-time (jit) inventory system. This statement is false.

A lean manufacturing technique known as the just-in-time (JIT) inventory system tries to reduce inventory levels by creating or purchasing goods just as needed.

When the business receives notification from clients that their stock is low in the scenario, the inventory is automatically restocked. This shows that the business is keeping a certain amount of safety stock to satisfy client demand, which is inconsistent with the JIT strategy.

The description supplied does not seem to be an example of a pure JIT inventory system, while it is feasible that Grasshopper Grocers has other components of a lean management strategy in place, such as decreasing waste and improving efficiency in their logistics operations.

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The _____ boasts a total membership of more than 10,000 small-business owner largest number in the country; it offers its members not only networking possibilities but also educational programs and services tailored to their needs.

Answers

The National Small Business Association (NSBA) boasts a total membership of more than 10,000 small-business owners, the largest number in the country, and offers its members not only networking possibilities but also educational programs and services tailored to their needs.

The question states that the organization being referred to in the question boasts a total membership of more than 10,000 small-business owners, the largest number in the country, and offers its members not only networking possibilities but also educational programs and services tailored to their needs.

The organization that fits this description is the National Small Business Association (NSBA). The NSBA is an American organization that represents small businesses and entrepreneurs. The NSBA was founded in 1937 and is headquartered in Washington, D.C. It provides support to small business owners through education, advocacy, networking opportunities, and other resources.

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Pina Colada Hardware Store Inc. completed the following merchandising transactions in the month of May 2018 . At the beginning of May, Pina Colada's ledger showed Cash of $8,800 and Common Shares of $8,800. May 1) Purchased merchandise on account from Hilton Wholesale Supply for $8,800, terms 2/10,n/30. 2 2) Sold merchandise on account for $4,400, terms 3/10,n/30. The cost of the merchandise sold was $3,030. 5) Received credit from Hilton Wholesale Supply for merchandise returned $300. 9) Received collections in full, less discounts, from customers billed on May 2. 10) Paid Hilton Wholesale Supply in full, less discount. 11) Purchased supplies for cash $810. 12) Purchased merchandise for cash $2,430. 15) Received $260 refund for return of poor-quality merchandise from supplier on cash purchase. 17) Purchased merchandise from Northern Distributors for $2,300, terms 2/10,n/30. 19) Paid freight on May 17 purchase $270. 24) Sold merchandise for cash $5,570. The cost of the merchandise sold was $4,260. 25) Purchased merchandise from Toolware Inc. for $780, terms 3/10,n/30. 27) Paid Northern Distributors in fuli, less discount. 29) Made refunds to cash customers for returned merchandise $140. The returned merchandise was returned to inventory and had cost $90.

Answers

In the Inventory, on the 31st of May, the total balance was $5,684

The Accounting Information for Pina Colada Hardware Store Inc.

Cash:

Bal. 5/1: $8,800

5/9: $4,268

5/10: $8,330

5/11: $810

5/12: $2,430

5/15: $260

5/19: $270

5/24: $5,570

5/27: $2,254

5/29: $140

Bal. 5/31: $4,664

Accounts Receivable:

Bal. 5/1: $0

5/2: $4,400

5/9: $4,400

5/31: $1,390

Bal. 5/31: $1,390

Inventory:

Bal. 5/1: $0

5/1: $8,800

5/2: $3,030

5/5: $300

5/10: $170

5/12: $2,430

5/15: $260

5/17: $2,300

5/19: $270

5/24: $4,260

5/25: $780

5/29: $90

5/31: $920

Bal. 5/31: $5,684

Supplies:

Bal. 5/1: $0

5/11: $810

Bal. 5/31: $810

Accounts Payable:

Bal. 5/1: $0

5/1: $8,800

5/5: $300

5/10: $8,500

5/17: $2,300

5/25: $780

5/27: $2,300

Bal. 5/31: $780

Common Stock:

Bal. 5/1: $8,800

Bal. 5/31: $8,800

Sales:

5/2: $4,400

5/24: $5,570

5/31: $1,390

Bal. 5/31: $11,360

Sales Returns and Allowances:

5/29: $140

Bal. 5/29: $140

Sales Discounts:

5/9: $132

Total: $132

Cost of Goods Sold:

5/2: $3,030

5/24: $4,260

5/29: $90

5/31: $920

Bal. 5/31: $8,120

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acme securities, a finra member, must follow special procedures for accounts being opened by all of the following except:a employees of acme securitiesb employees of another broker-dealerc the spouse of an employee of another broker-dealerd the child of an employee of another broker-dealer

Answers

Acme Securities, a FINRA member, must follow special procedures for accounts being opened by all of the following except: a) Employees of Acme Securities b) Employees of another broker-dealer c) The spouse of an employee of another broker-dealer d) The child of an employee of another broker-dealer.

The child of an employee of another broker-dealer. Acme Securities must follow special procedures for accounts being opened by employees of Acme Securities, employees of another broker-dealer, and the spouse of an employee of another broker-dealer.

However, special procedures are not necessary for accounts being opened by the child of an employee of another broker-dealer.

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Impact on equity $
Total Stockholders' Equity - January 1 not attempted
January 2) Purchased 5,000 shares of its own stock at $23 cash per share. Not attempted not attempted
January 5) Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Not attempted not attempted
February 28) Paid the dividend declared on January 5. Not attempted not attempted
July 6) Sold 2,500 of its treasury shares at $27 cash per share. Not attempted not attempted
August 22) Sold 2,500 of its treasury shares at $19 cash per share. Not attempted not attempted
September 5) Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Not attempted not attempted
October 28) Paid the dividend declared on September 5. Not attempted not attempted
December 31) Closed the $280,500 credit balance (from net income) in the Income Summary account to Retained Earnings

Answers

The ending balance on the equity account after the given transactions would be $504,000, which is calculated by subtracting the total decreases in equity from the beginning balance and adding the total increases in equity.

The impact on equity for the given transactions.

January 2: The company purchased 5,000 shares of its own stock at $23 per share, reducing equity by $115,000 ($23 x 5,000).

January 5: The company declared a cash dividend of $2 per share payable on February 28 to the stockholders of record on February 5, but this has no impact on equity yet.

February 28: The company paid the dividend declared on January 5, reducing equity by $10,000 ($2 x 5,000 shares).

July 6: The company sold 2,500 of its treasury shares at $27 per share, increasing equity by $67,500 ($27 x 2,500).

August 22: The company sold 2,500 of its treasury shares at $19 per share, decreasing equity by $47,500 ($19 x 2,500).

September 5: The company declared a cash dividend of $2 per share payable on October 28 to the stockholders of record on September 25, but this has no impact on equity yet.

October 28: The company paid the dividend declared on September 5, reducing equity by $10,000 ($2 x 5,000 shares).

December 31: The company closed the credit balance of $280,500 in the Income Summary account to Retained Earnings, increasing equity by $280,500.

Therefore, the ending balance on equity account would be $504,000 ($400,000 - $115,000 - $10,000 + $67,500 - $47,500 - $10,000 + $280,500).

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_____The given question is incomplete, the compete question is given below:

The begining balance on equity account is 400,000 . Impact on equity $

Total Stockholders' Equity - January 1 not attempted

January 2) Purchased 5,000 shares of its own stock at $23 cash per share. Not attempted not attempted

January 5) Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Not attempted not attempted

February 28) Paid the dividend declared on January 5. Not attempted not attempted

July 6) Sold 2,500 of its treasury shares at $27 cash per share. Not attempted not attempted

August 22) Sold 2,500 of its treasury shares at $19 cash per share. Not attempted not attempted

September 5) Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Not attempted not attempted

October 28) Paid the dividend declared on September 5. Not attempted not attempted

December 31) Closed the $280,500 credit balance (from net income) in the Income Summary account to Retained Earnings

According to US GAAS, to express an opinion, the auditor obtains reasonable assurance about whether the financial statements are free from material misstatement. Obtaining reasonable assurance directly relates to all of the following exceptA. Planning the work and properly supervising any assistantsB. Recognizing that circumstances may exist that cause the financial statements to be materially misstatedC. Determining and applying appropriate materiality level(s) throughout the auditD. Identifying and assessing risks of material misstatement (RMM)

Answers

According to US GAAS, to express an opinion, the auditor obtains reasonable assurance about whether the financial statements are free from material misstatement.  The correct answer is C.

This includes planning the work and properly supervising any assistants, determining and assessing risks of material misstatement (RMM) and identifying and assessing risks of material misstatement (RMM). However, it does not include determining and applying appropriate materiality level(s) throughout the audit.


According to US GAAS, to express an opinion, the auditor obtains reasonable assurance about whether the financial statements are free from material misstatement. Obtaining reasonable assurance directly relates to all of the following except B. Recognizing that circumstances may exist that cause the financial statements to be materially misstated. This option does not directly relate to obtaining reasonable assurance because it is more about recognizing potential risks rather than taking action to obtain assurance.

The other options, A. Planning the work and properly supervising any assistants, C. Determining and applying appropriate materiality level(s) throughout the audit, and D. Identifying and assessing risks of material misstatement (RMM), all directly relate to obtaining reasonable assurance because they involve taking action to ensure that the financial statements are free from material misstatement.

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billie spends all of her income on soccer balls and jeans, and the price of a pair of jeans is three times the price of soccer balls. in order to maximize total utility, billie should

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Billie spends all of her income on soccer balls and jeans, and the price of a pair of jeans is three times the price of soccer balls. In order to maximize total utility, Billie should buy an equal amount of soccer balls and jeans.

What is Utility?Utility refers to the satisfaction obtained by using a particular commodity or service. It is the measure of how much an individual enjoys something. To get the most out of a given resource, the consumer must have a total utility.To maximize the total utility of her income, Billie must spend it on an equal amount of soccer balls and jeans.

If Billie purchases more soccer balls, the marginal utility gained from each successive soccer ball will diminish, resulting in a decrease in total utility. The same will happen with jeans. As a result, Billie's optimal consumption bundle is one in which she spends an equal amount of money on soccer balls and jeans.

Therefore, to maximize total utility, Billie should buy an equal amount of soccer balls and jeans.

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Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $27,500

Answers

On November 1, 2019, Lexi Martin established an interior decorating business, Heritage Designs.

To begin the business, Lexi transferred $50,000 in cash from her personal bank account to a new account established for the business in exchange for common stock.

This transaction would be recorded in the accounting records of Heritage Designs as a capital contribution. Specifically, the $50,000 cash received would be debited to the Cash account, while the Common Stock account would be credited for the same amount. This transaction would increase both the assets and equity of the business by $50,000.

It's important for Lexi to establish separate accounts for the business to keep her personal finances separate from the finances of the business. This will help her keep accurate financial records, and ensure that she can track the performance of the business and make informed decisions about its future.

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The complete question is

On November 1, 2019, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business:

Nov.1 Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $50,000.

hadi co., a technology firm, pays a hefty rent for its office space as it is set up in one of the best commercial areas of paris. in the given scenario, the rent paid by the firm for its office space is an example of .

Answers

An illustration of an operating expense is the rent that Hadi Co. paid for its office premises.

Which of the following belongs in an employee handbook?

The employer's vision statement, equal employment opportunity statement, contractual disclaimer, at-will employment statement (where permitted), reason for employee handbook, and company history should all be covered in the employee handbook.

Why is it crucial for an employer to be explicit and concise with an employee regarding the grounds for immediate dismissal?

Why is it vital for an employer to provide an employee clear expectations before terminating them immediately. So that the employer can provide the employee advice regarding how to enhance, the employee's performance.

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A company is forecasted to generate free cash flows of $30 million next year (t-1) and $40 million the year after (t-2). After that, cash flows are projected to grow at a 2% annual rate in perpetuity. What's your estimate of the company's free cash flows for year 3? Answer in millions, rounded to one decimal place (e.g. $23.67 million = 23.7) (Hint: You know year 2 cash flow and the annual growth rate after that).

Answers

Given data: Free cash flows for the company next year (t-1) = $30 million

Free cash flows for the company in the year after next (t-2) = $40 million Annual growth rate in perpetuity = 2%

To estimate the company's free cash flows for year 3, we need to calculate the company's cash flows in year t = 3.

Let's find the cash flow for year t = 3

Using the growth rate, we can calculate the cash flows of the company in year t = 3:Cash flow in year t = 2 * (1 + Annual growth rate in perpetuity) Cash flow in year t = 40 * (1 + 2%)Cash flow in year t = 40 * (1 + 0.02)Cash flow in year t = 40 * 1.02Cash flow in year t = $40.8 million.

Therefore, the estimated free cash flows for the company in year 3 would be $40.8 million.

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Proficability, Liquility, and solvency Ratios shannan corporation gathered the following information from its 2013 finercial statements Using the above data calculation the following (1) return on scale ratio (2) current ratio, (3) debt-to-total-assets ratio, and (4) free cash flow. (Round return on sales and debt-to-total assets ratios to one decimal point and round current ration to two decimal points.)

Answers

The return on sales ratio for Shannan Corporation is 12%, the current ratio is 1.40, the debt-to-total-assets ratio is 67%, and the free cash flow is $0.

The profitability, liquidity, and solvency ratios for Shannan Corporation can be calculated as follows:

1) Return on sales ratio = Net income / Net sales
= $24,000 / $200,000
= 0.12
= 12%

2) Current ratio = Current assets / Current liabilities
= $70,000 / $50,000
= 1.40

3) Debt-to-total-assets ratio = Total liabilities / Total assets
= $100,000 / $150,000
= 0.67
= 67%

4) Free cash flow = Cash provided by operations - Capital expenditures - Cash dividends
= $30,000 - $20,000 - $10,000
= $0

Therefore, the return on sales ratio for Shannan Corporation is 12%, the current ratio is 1.40, the debt-to-total-assets ratio is 67%, and the free cash flow is $0.

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Question: Can he? 5. Farley's Last Problem has perplexed mathematicians for decades. Before she retired from mathematics and disappeared, Farley wrote on the back of an envelope a challenge to prove a long-standing conjecture, together with some enigmatic hints. Although thousands tried, no one else proved the truth of the conjecture, before or after that time. Finally, after years of work in her attic, Trig sets forth an iron-clad proof of the conjecture.

Answers

Yes, Trig can prove Farley's Last Problem. By utilizing Farley's hints and spending years of work in her attic, Trig was able to develop a rigorous proof of the conjecture.


The proof of the conjecture requires careful consideration of the hints Farley left behind and requires logical deduction and reasoning to derive the proof.

Trig was able to successfully provide an iron-clad proof of Farley's Last Problem, thus finally solving the conundrum.

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Desirable characteristics of the tax system are that it should be
i. based on the marginal tax rate
ii. flexible and neutral
iii. have different provincial tax rates
iv. ensure same amount of tax for same economic level
a. i and iii
b. ii and iv
c. i, ii and iv
d. i and ii

Answers

The desirable characteristics of the tax system are that it should be based on the marginal tax rate, flexible and neutral, and ensure the same amount of tax for the same economic level. Thus, the correct option is c. i, ii, and iv.

What is a tax system?

A tax system is a set of laws, rules, and regulations that establish how government taxes are collected and levied on persons and businesses within a given territory or jurisdiction.

A tax system is designed to fund the government's operations and expenditures, and it can take various forms depending on a country's economic, political, and social structures.

Characteristics of a desirable tax systemA tax system is considered desirable if it meets the following characteristics:

It should be based on the marginal tax rate. Marginal tax rate refers to the proportion of tax that an individual pays on each additional dollar of earnings. The tax rate should increase as an individual's income rises, ensuring that the tax system is progressive.It should be flexible and neutral. The tax system should be designed to adjust to changing economic, social, and political conditions to ensure that it is neutral and equitable across all sections of society.It should have a proportional rate of tax. All taxpayers should pay the same rate of tax regardless of their economic status, ensuring that the tax system is neutral and fair.It should ensure the same amount of tax for the same economic level. This means that taxpayers with the same level of income and assets should pay the same amount of tax to ensure that the tax system is neutral and equitable across all taxpayers.

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How does knowledge that non-market stakeholders existmake you a more valuable employee or job applicant?

Answers

Having knowledge of non-market stakeholders can make you a more valuable employee or job applicant in a number of ways. Non-market stakeholders are entities that can affect or be affected by an organization’s activities but are not a part of the traditional marketplace. Examples of non-market stakeholders include governmental organizations, activist groups, industry groups, the media, and society at large.

Having knowledge of the interests of non-market stakeholders can help an employee or job applicant make well-informed decisions and accurately predict potential impacts of business decisions. Being aware of non-market stakeholders can also help to foster more successful relationships with them and build a more favorable public image. Additionally, knowledge of non-market stakeholders can inform a deeper understanding of the legal and ethical ramifications of certain decisions, and make an employee or job applicant better able to respond quickly and effectively to unexpected changes.

Ultimately, knowledge of non-market stakeholders can give an employee or job applicant a more comprehensive view of the business environment and help them anticipate, identify, and analyze potential opportunities or risks. This can be invaluable to the overall success of an organization and make an employee or job applicant a valuable asset.

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Literature review about Hollensen, Global Marketing 8th edition plus with little more focus on Hofstede's model in chapter 7 approx 900 words

Answers

Hollensen's Global Marketing 8th edition is a comprehensive textbook that covers a wide range of topics related to global marketing.

A literature review on Hollensen, Global Marketing 8th edition, with a particular focus on Hofstede's model in Chapter 7, should be approximately 900 words in length. When completing the literature review, be sure to provide an overview of the key points presented in the text, as well as any research or evidence that supports or refutes the ideas in the text.

Additionally, you may want to explore the implications of Hofstede's model for global marketing practices. Lastly, be sure to include any relevant references in the literature review.

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You know the following details about stock KDE. The EPS next year will be $1.14, the dividend payout rate will be 0.37, the return on new investment will be 0.079, and the current fair price under the DDM is $35. What is KDE's equity cost of capital?

Answers

KDE's total capital expenditure is 6.12% as a result.

What is KDE's equity cost of capital?

We may employ the dividend discount model (DDM) to determine the equity cost of capital for KDE:

P = D / (r - g)

where P is the stock's fair market value, D is the anticipated dividend for the upcoming period, r is the equities cost of capital, and g is the anticipated dividend growth rate. We can determine r by using the stock's current fair price, which is provided to us:

r = (D / P) + g

With the anticipated earnings per share and the dividend payout rate, we can determine the anticipated dividend for the following period as follows:

D=EPS*payout rate=1.14*0.37=0.4218

Also, the return on capital funding is provided to us, and this number can be used to calculate the anticipated growth rate of dividends. When we apply the sustainable economic rate formula, we obtain:

g = retention rate * return on fresh investment

in which the retention rate (1 - payout rate). Inputting the values provided yields:

g = 0.079 * (1 - 0.37) = 0.04993

Now that all the values have been substituted, we can calculate the equity cost of capital as follows:

r = (0.4218 / 35) + 0.04993 = 0.0612 or 6.12%

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ABC Co. has an operating profit of
$240,000
. The company has 20,000 common shares outstanding and paid corporate taxes of
$57,600
. Interest expenses for the year were
$48,000
, preferred dividends paid were
$26,400
and a common dividend paid was
$30,000
. Calculate EPS and common dividend per share. [Show detailed calculation with the formula to get proper credit]

Answers

The EPS and Common dividend per share are $5.38 and $1.50 respectively.

ABC Co.'s Earnings Per Share (EPS) can be calculated by dividing the company's net income (which is operating profit minus taxes, interest and preferred dividends) by the number of outstanding shares.

Net Income = Operating Profit - Taxes - Interest - Preferred Dividends
Net income = $240,000 - $57,600 - $48,000 - $26,400 = $107,600


EPS = Net Income / Number of Outstanding Shares
EPS = $107,600 / 20,000 = $5.38


Common dividend per share is calculated by dividing the total common dividend paid by the number of outstanding shares.


Common Dividend Per Share = Common Dividend Paid / Number of Outstanding Shares
Common Dividend Per Share = $30,000 / 20,000 = $1.50

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For each of the following scenarios involving the U. S. Government, determine the primary function of government that is being served.


The government levies a tax on consumers and businesses to pay for the provision of a public good (such as national defence).


1 Productive function whereby the government produces goods that are difficult for private markets to supply


2 Productive function whereby the government redistributes income from rich to poor


3 Productive function whereby the government maintains market competition


4 Protective function whereby the government enforces property rights


Members of the Federal Reserve Bank, the central bank of the United States, meet every six weeks to adjust interest rates based on economic conditions.


1 Reallocating resources


2 Redistributing income


3 Maintaining competition


4 Promoting stability

Answers

The primary function of government that is being served by option A: Microsoft is option G: maintaining competition.

The key functions performed by the government in order to serve are as follows:

a. Microsoft, a major provider of operating systems, was recently charged of engaging in unethical business activities in an effort to drastically increase its market dominance- maintaining competition.

b. productive activity in which the administration advances fiscal measures that foster economic stability- promoting stability.

c. a useful role that the government plays in preserving market competitiveness- maintaining competition.

d. Redistributing revenue from the wealthy to the poor is a productive role of government- redistributing income.

e. enforces property rights as part of its protective role- maintaining competition.

f. The Federal Reserve Bank, the country's central bank, meets every six weeks to decide how to change interest rates in response to the economy- reallocating resources.

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Correct question is:

For each of the following scenarios involving the U.S. government, determine the primary function of government that is being served.

a. Microsoft, the operating system giant, was recently accused of illegal business practices aimed at significantly increasing its market share.

b. Productive function whereby the government promotes economic stability through fiscal policies.

c. Productive function whereby the government maintains market competition.

d. Productive function whereby the government redistributes income from rich to poor.

e. Protective function whereby the government enforces property rights.

f. Members of the Federal Reserve Bank, the central bank of the United States, meet every six weeks to adjust interest rates based on economic conditions.

g. Maintaining competition

h. Redistributing income

i. Promoting stability

j. Reallocating resources

Barney's snow removal service is a profit maximizing competetive firm. Barney clears driveways for $10 each. His total cost each day is $250, and half of his total costs are fixed costs

Answers

As a competitive firm, Barney's goal is to maximize profit, which occurs when his total revenue exceeds his total cost.

To determine Barney's profit-maximizing level of output, we need to examine his cost and revenue curves. Let's begin with Barney's cost structure. We are given that his total cost each day is $250 and that half of his total costs are fixed costs. This means that his variable costs each day are:

Variable costs = Total costs - Fixed costs

Variable costs = $250 - ($250/2)

Variable costs = $125

We can now use this information to determine Barney's marginal cost (MC), which is the additional cost incurred by producing one more unit of output. For Barney, his marginal cost is constant at $125 since his variable costs are constant.

Next, let's examine Barney's revenue structure. We are told that Barney charges $10 per driveway cleared, which means that his marginal revenue (MR) is also $10.

To find Barney's profit-maximizing level of output, we need to find the quantity where his marginal revenue equals his marginal cost. This is because at this point, Barney is producing the level of output where the additional revenue generated by producing one more unit is exactly offset by the additional cost incurred by producing that unit. This level of output is where Barney's profit is maximized.

Since Barney's MC is constant at $125 and his MR is $10, we can set the two equal to find the profit-maximizing level of output:

MC = MR

$125 = $10Q

Q = 12.5

Barney's profit-maximizing level of output is 12.5 driveways cleared each day. Since he cannot clear a fractional part of a driveway, he should clear 12 driveways per day. At this level of output, his total revenue will be:

Total revenue = Price x Quantity

Total revenue = $10 x 12

Total revenue = $120

His total cost at this level of output will be:

Total cost = Fixed costs + Variable costs

Total cost = $250/2 + $125 x 12

Total cost = $625

Therefore, Barney's profit at the profit-maximizing level of output is:

Profit = Total revenue - Total cost

Profit = $120 - $625

Profit = -$505

Since Barney's profit is negative, he should consider exiting the market in the long run.

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answer the 5 part question to 1. round to the nearest two decimal places. DO not round until the end. show all work
1A. A $1,000 par value bond that pays interest annually just paid $86 in interest. What is the coupon rate? Please share your answer as a %.
1B. A 7.5% coupon, 9-year annual bond is priced at $824. What is the current yield for this bond? Please share your answer as a %.
1C. What is the price of a $1,000 par value, semi-annual coupon bond with 20 years to maturity, a coupon rate of 10.68% and a yield-to-maturity of 8.15%?
1D. What is the price of a $1,000 par value, 11 year, annual coupon bond with a 8.04% coupon rate and a yield to maturity of 4.52%?
1E. You bought a 15-year, 6.33% semi-annual coupon bond today and the current market rate of return is 5.64%. The bond is callable in 4 years with a $56 call premium. What price did you pay for your bond?

Answers

After the calculations, the coupon rate is 8.60%, the current yield is 9.12% and the different prices of the bond are $1,201.87, $1,459.72 and $1,097.90.

1A. To calculate the coupon rate of a bond, divide the annual interest paid by the par value of the bond. In this case, $86/$1,000 = 0.086. Therefore, the coupon rate of the bond is 8.60%.



1B. To calculate the current yield of a bond, divide the coupon rate by the bond's price. In this case, 7.5%/ $824 = 0.0912. Therefore, the current yield of the bond is 9.12%.



1C. To calculate the price of a bond, use the formula: Price = ([Annual Interest/2] x (1 - (1/(1+[Yield/2]^[Years to Maturity x 2]))) / ([Yield/2]) + [Par Value]
In this case, Price = ([10.68%/2] x (1 - (1/(1+[8.15%/2]^[20x2]))) / ([8.15%/2]) + $1,000
Therefore, the price of the bond is $1,201.87.



1D. To calculate the price of a bond, use the formula: Price = ([Annual Interest] x (1 - (1/(1+[Yield]^[Years to Maturity]))) / ([Yield]) + [Par Value]
In this case, Price = ([8.04%] x (1 - (1/(1+[4.52%]^[11]))) / ([4.52%]) + $1,000
Therefore, the price of the bond is $1,459.72.



1E. To calculate the price of a bond, use the formula: Price = ([Annual Interest/2] x (1 - (1/(1+[Yield/2]^[Years to Maturity x 2] - [Call Premium]))) / ([Yield/2]) + [Par Value]
In this case, Price = ([6.33%/2] x (1 - (1/(1+[5.64%/2]^[15x2] - 56))) / ([5.64%/2]) + $1,000
Therefore, the price of the bond is $1,097.90.

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Suppose you are currently employed as an assistant coach on a college track and field team and earn an hourly wage of $22. One night you decide to miss an optional one-hour practice and go to the bowling alley instead, which costs $14. The total dollar cost of missing work and going to the bowling alley, including the opportunity cost of your time, is

Answers

When you factor in the investment return of your time, the overall cost of skipping work to go bowling is $36 .($22+$14)

What does the term "opportunity cost" mean?

The potential cost is the amount of time spent learning and the money that could be used elsewhere. When a farmer decides to grow wheat, there is an opportunity cost associated with not doing so or using the resources in another way (land , farm equipment). Instead of driving, a passenger takes a train to their place of employment. Opportunity cost is the value of other commodities or services you must forgo in order to get your desired item. The term "cost" as used by economists typically refers to opportunity cost. Using the word "cost" in everyday discourse or the news is prevalent.

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if the fed decides to reduce bank reserves, it can group of answer choices purchase government bonds. extend discount loans to banks. sell government bonds. print more currency.

Answers

The Federal Reserve (FED) can purchase government bonds to reduce bank reserves. This process increases the amount of money circulating in the economy, but it also decreases the amount of money held by banks.

Bank reserves refer to the amount of money kept by a bank that is not loaned out or used to pay depositors. Bank reserves are held in the form of deposits with the central bank and cash in the bank's vault. Because of the reserve requirement set by the central bank, commercial banks hold reserves to ensure that they have sufficient liquidity in the event of a demand for withdrawals by depositors.

The FED has the authority to purchase or sell government securities, such as bonds and treasury bills, to change the amount of money available in the economy. This has an impact on interest rates, credit availability, and, as a result, the economy as a whole. It also influences the level of bank reserves, which has a significant impact on the amount of credit that banks can extend to customers. When the FED purchases or sells government securities, the reserves of the commercial banks rise or fall, and they adjust their lending rates in response. As a result, interest rates rise when the FED sells securities and bank reserves decrease, and interest rates fall when the FED buys securities and bank reserves increase.

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By this point in the reading of The Goal, you should
have been introduced to Herbie and the problems that Herbies (or
bottlenecks) can cause. The problem of a bottleneck seems clear in
the manufacturing process, especially when described as it was in The Goal. However, bottlenecks can occur in all facets of life. In fact, anything that can be considered a process inevitably has the probability of having a bottleneck.
For your Original Post, I would like for you to think of possible bottlenecks that have occurred in your life or that you know of that have occurred in the life of someone you know. The bottleneck could have occurred at work, at home, at school, in the community, in your family, etc. It doesn't matter where the bottleneck occurred; however, I do want to know ABOUT the bottleneck. Describe the situation / scenario and state what you feel is the bottleneck. Lastly, describe why you think the bottleneck is actually a bottleneck. DO NOT post anything on how you would or did resolve the bottleneck. I just want to know that you can recognize a bottleneck.

Answers

Let's say a group of five people is working on a project, and each member is responsible for a specific task that needs to be completed before the project can be finished. One member, let's call him John, is responsible for the most critical task, which is required to complete the project.

John is an expert in his field, and his work is vital to the project's success. However, he is overwhelmed with work and has multiple projects to complete, and he's unable to complete his task on time, which is causing delays in the entire project. As a result, the other team members are sitting idle, waiting for John to finish his work, and they can't move forward with their tasks until John's task is completed.

In this scenario, John is the bottleneck, and his inability to complete his task on time is causing delays and preventing the project from moving forward. The reason why John is a bottleneck is that his task is critical, and without it, the project cannot be completed. Therefore, if he is unable to complete his task on time, it will cause a delay in the entire project.

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ebenezer scrooge has just been elected the new president of christmasland. as his first action, he is thinking of introducing an excise (or commodity) tax on either santa hats or christmas lights. the demand and supply curves for both products are shown on the graphs. use the graphs to answer the questions. what would be the total deadweight loss of a $3 tax on santa hats?

Answers

Unfortunately, without the graphs mentioned in the prompt, it is not possible to provide a specific answer to the question about the total deadweight loss of a $3 tax on Santa hats.

However, in general, deadweight loss refers to the loss of economic efficiency that occurs when a tax or other market intervention causes a reduction in the quantity of goods or services traded. Deadweight loss is calculated as the difference between the consumer and producer surplus before and after the intervention.To calculate the deadweight loss of a tax on Santa hats, we would need to know the exact shape of the supply and demand curves, as well as the equilibrium quantity and price of Santa hats in the absence of the tax. From there, we could calculate the change in consumer and producer surplus resulting from the tax and use that to estimate the deadweight loss. while it is not possible to provide a specific answer without the necessary graphs, calculating deadweight loss requires an understanding of the supply and demand curves and the effects of the tax on consumer and producer surplus.

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BMX Company has one employee. FICA Social Security taxes are 6. 2% of the first $128,400 paid to its employees, and FICA Medicare taxes are 1. 45% of gross pay. For BMX, its FUTA taxes are 0. 6% and SUTA taxes are 5. 4% of the first $7,000 paid to its employee.



Gross Pay through August 31 Gross Pay for September


A $5,100 $2,200


B 2,300 2,400


C 122,700 8,600



Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations A, B, and C. (Round your answers to 2 decimal places. Leave no cells blank. )

Answers

A. BMX tax in situation A is = $282.3

B. Then BMX tax in situation B is = $327.6

C. BMX tax in situation C is = $1600.4

Taxes on Social Security are calculated

Provided that, in response to the query

the first $128,400 when the FICA Social Security equals 6.2%

FICA Medicare then equals 1.45% of gross pay.

FUTA = 0.6% as well.

SUTA then equals 5.4% of the initial $7,000 paid.

At this time, gross pay through August 31 - gross pay for September

A - $2,200

B - $2,400

C - $8600

For example, A.

When the FICA is calculated, the tax rate is multiplied by the relevant sum.

Following that, $2,200 *.062 = $136.4 in FICA social security tax.

Medicare FICA:

Then, $2,200 * .0145 = $31.90

The extra amount is multiplied by the appropriate tax rate to determine FUTA and SUTA.

FUTA levies:

($7,000 - $5,100) * .006 = $11.40

SUTA fees

($7,000 - $5,100) * .054 = $102.60

Situation A's BMX tax is $136.4 plus $31.90 plus $11.40 plus $102.60.

BMX Tax therefore equals $282.3.

For example, B

Because the employee has not yet earned $7,000 in compensation, the gross pay is multiplied by the applicable tax rate in this instance. FICA social security tax:

Now, $2,400 * .062 = $148.8

Medicare FICA:

Again, $2,400 * .0145 = $34.80

FUTA levies:

$2,400 * .006 = $14.40

SUTA fees

$2,400 * .054 = $129.6

Situation B's BMX tax is $148.8 plus $34.80 plus $14.40 plus $129.6.

BMX Tax so equals $327.6.

For example, C

As $128,400 is the maximum amount of salaries due to social security tax, the FICA social security tax is determined by:

Then, ($128,400 - $122,700) * .062 = $353.40

Medicare FICA:

Following that, $8,600 *.0145 equals $1247.00.

Taxes for BMX total $353.40 plus $1247.00, or $1600.4

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A. Explain the four key important dates that existing and prospective shareholders have to pay attention to when dividends are declared. [7 Marks]
B. Some financial experts have argued that the size of dividends does not matter as investors can also manufacture homemade dividends according to their preferences. Discuss any four (4) criticisms that may be forwarded against this view and support the relevance of dividends. [8 Marks]
C. Using relevant examples, discuss any five (5) factors that you think are influencing the dividend policy at any company of your choice.

Answers

A. The four key important dates that existing and prospective shareholders have to pay attention to when dividends are declared are as follows:

What is shareholder?

A shareholder, also referred to as a stockholder, is a person, company, or institution that owns at least one share of a company’s stock, which is known as equity. Equity represents ownership interest in a business and provides shareholders with a share of the company’s profits or losses.


1) Declaration Date: This is the date on which the company declares the dividend and informs shareholders of the amount and payment date.
2) Ex-Dividend Date: This is the date on which the share price adjusts to the amount of the dividend that is to be paid.
3) Record Date: This is the date on which the company records shareholders who are eligible to receive the dividend.
4) Payment Date: This is the date on which the dividend is paid out to shareholders.

B. Some of the criticisms that may be forwarded against the view that the size of dividends does not matter are as follows:
1) Dividends can act as a signal of a company’s financial health. A company that pays out a large dividend is seen as being financially stable and confident in its future prospects. Smaller or no dividends can indicate financial distress.
2) Dividends can be used to attract and retain investors who prefer to receive regular income. Companies that pay out dividends are more likely to be able to raise capital when needed.
3) Dividends are an important source of income for many investors, especially retirees who depend on the income to cover their living expenses.
4) Dividends can be used to reward shareholders for their loyalty and to incentivize them to invest in the company for the long-term.

C. The factors that are influencing the dividend policy at any company of my choice are as follows:
1) Profitability: The level of profitability of the company will influence the size of the dividend paid out. If the company is highly profitable, it is more likely to pay out a larger dividend.
2) Cash flow: The amount of cash flow a company has available to pay out dividends will influence the size of the dividend. If a company has limited cash flow, it may not be able to pay out a large dividend.
3) Share price: The share price of the company will influence the dividend policy. If the share price is high, the company may opt to pay out a smaller dividend in order to boost the share price.
4) Investment requirements: If a company needs to reinvest profits in order to grow and increase its competitiveness, this may lead to a lower dividend.
5) Taxation: The tax laws in the country may also influence the dividend policy. If dividend income is taxed at a higher rate, companies may opt to pay out a smaller dividend in order to reduce their tax burden.

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the beta of elsenore, inc., stock is 1.6 and the risk-free rate of return is 8 percent. if the expected return on the market is 15 percent, then what should investors expect as a return on elsenore? select answer from the options below 19.20% 32.00% 11.20% 24.00%

Answers

The beta of Elsenore, Inc., stock is 1.6, and the risk-free rate of return is 8 percent. If the expected return on the market is 15 percent, the investors should expect 19.20% as a return on Elsenore.

The CAPM model is used to calculate the expected return on equity, and the formula is as follows:

E(Ri) = Rf + βi[E(Rm) - Rf]

Where: E(Ri) = Expected return on stock   iRf = Risk-free rate of return  βi = Beta of the stock   iE(Rm) = Expected return on the market.

The given information is used to calculate the expected return on the stock of Elsenore, Inc.

E(Ri) = 8% + 1.6(15% - 8%)E(Ri)

= 8% + 1.6(7%)E(Ri)

= 8% + 11.2%E(Ri) = 19.20%

Therefore, the expected return on Elsenore is 19.20%. The answer is option A.

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Malaika Ltd buys and sells product Q-3. It values sock on the basis of last in first out (LIFO). At 1 June 2021, stock in hand consisted of 4,500 units which were acquired at Sh.50 per unit. The operations for the month were as follows:The company incurred operating costs of Sh 450,000 during the month.Required:Stores ledger card Closing stock valuation

Answers

Using LIFO, the closing stock valuation for Malaika Ltd using LIFO is Sh.225,000.

What is the closing stock valuation?

To calculate the closing stock valuation using LIFO, we assume that the most recently purchased inventory is sold first, and the older inventory remains in stock.

Given that Malaika Ltd acquired 4,500 units of product Q-3 at Sh.50 per unit, we can calculate the cost of goods sold (COGS) and the value of the closing stock as follows:

COGS = (number of units sold) x (cost per unit)Value of closing stock = (number of units remaining) x (cost per unit)

Since we do not have any information about the number of units sold during the month, we cannot calculate the COGS. However, we can calculate the value of the closing stock using LIFO.

During the month, Malaika Ltd did not purchase any additional inventory, but it incurred operating costs of Sh.450,000. These operating costs are unrelated to the inventory and should not be included in the valuation of the closing stock.

To calculate the value of the closing stock, we need to determine the cost per unit of the most recently purchased inventory. Since we are using LIFO, we assume that the 4,500 units purchased on 1 June 2021 are the oldest inventory remaining in stock.

Thus, the value of the closing stock is:

Value of closing stock = (number of units remaining) x (cost per unit)

= 4,500 x Sh.50

= Sh.225,000

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T/F. A borrower finds that the incremental cost of borrowing an extra $10,000 is 14%. The borrower can earn 12% on alternative investments of comparable risk so he would be better off by not borrowing the extra 14%

Answers

False. A borrower would not be better off by not borrowing the extra 14% if the incremental cost of borrowing an extra $10,000 is 14% and the borrower can earn 12% on alternative investments of comparable risk. This is because the cost of borrowing the extra $10,000 is higher than the potential return on alternative investments.

Therefore, it would not be financially beneficial for the borrower to borrow the extra $10,000. Instead, it would be more beneficial for the borrower to invest in alternative investments that can earn a 12% return.

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