Loan payments to income ratio. 47.57%.
Here, we need to find what percentage of Carl's take-home pay goes towards his house payment and car payment. To do this, we first need to calculate the total amount Carl pays towards these two things each month.
Total house payment:$1290
Total car payment: $399
Total amount paid towards house and car: $1290 + $399 = $1689
Now, we can calculate the percentage of Carl's take-home pay that goes towards his house payment and car payment using the following formula:
Loan payments to income ratio = (Total house and car payment / Take-home pay) x 100%
Substituting the given values in the above formula, we get,
Loan payments to income ratio = (1689/3250) x 100% = 0.519 x 100% = 51.9%
Rounding off to two decimal places, we get:
Loan payments to income ratio = 51.90%
Therefore, Carl burns 51.90% of his take-home pay on his house payment and car payment.
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Your big brother has decided that he wants to get into the
workforce relatively soon and doesn't want to pursue a 4-year
degree. He is considering a career as a paralegal. While
browsing job postings for paralegals in the area he notices that
most firms are requiring candidates to have an associate's
degree or a certification. Based on the information in the table
below, which option is best for your brother and why?
The answer is based on the table Work study which includes 6 weeks of certification program and 2 years in community college is best for the brother.
The reason is because he doesn't want to pursue a 4-year degree and most firms require candidates to have an associate's degree or a certification.
Therefore, work study is best option as it fulfills his requirement for certification and college within a limited time period.
What is certification in plain English?Certifications are special qualifications there by an individual to show their validity and capacity to carry out a task. Your certification is shown as a document that certifies that, as a professional, you have received the necessary training, education, and preparation to fulfill the requirements of your position.
What are the three different certifications?A certification might be of one of three broad forms. Corporate (internal), product-specific, and profession-wide are listed in order of development level and portability.
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Changes in Current Operating Assets and Liabilities-Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Accounts receivable Inventory Dec. 31, Year 2 Dec. 31, Year 1 $18,300 $22,900 79,700 71,800 25,100 21,600 20,000 22,000 Accounts payable Dividends payable Adjust net income of $100,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $______
The net cash flow from operating activities for Covington Corporation when calculated using the indirect method by adjusting the net income of $100,300 is $97,200.
The net cash flow from operating activities for Covington Corporation is calculated using the indirect method. To arrive at the net cash flow from operating activities, you will need to adjust the net income of $100,300 for changes in the current operating assets and liabilities, which is shown in the comparative balance sheet.
The change in Accounts Receivable is an increase of $18,300 - $22,900 = -$4,600.The change in Inventory is an increase of $79,700 - $71,800 = $7,900.The change in Accounts Payable is a decrease of $25,100 - $21,600 = -$3,500.The change in Dividends Payable is a decrease of $20,000 - $22,000 = -$2,000.Therefore, the net cash flow from operating activities is calculated as follows:
Net income of $100,300 + (Decrease in Accounts Receivable of -$4,600) + (Increase in Inventory of $7,900) + (Decrease in Accounts Payable of -$3,500) + (Decrease in Dividends Payable of -$2,000) = Net Cash Flow from Operating Activities of $97,200.
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suppose the price of a product increases from $10 to $20 and the quantity demanded decreases from 100 units to 90 units. using the midpoint formula, what is the price elasticity of demand? suppose the price of a product increases from $10 to $20 and the quantity demanded decreases from 100 units to 90 units. using the midpoint formula, what is the price elasticity of demand? 6.318 0.158 1.2 0.5 -0.158
The price elasticity of demand for the given situation is -0.158.
This can be calculated using the midpoint formula, which is:
Price Elasticity of Demand = (ΔQ/Q) / (ΔP/P)
In this case, ΔQ = 100 - 90 = 10, and ΔP = 20 - 10 = 10. Thus,
Price Elasticity of Demand = (10/100) / (10/10) = -0.158.
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answer the 4 part question to 1. round to the nearest two decimal places. DO not round until the end. show all work
1A. A 7.33% annual coupon, 20-year bond has a yield to maturity of 8%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what should the price of the bond be today?
1B. A 4.9% annual coupon, 11-year bond has a yield to maturity of 5.03%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is bond price expected to be in one year?
1C. A 6.36% annual coupon, 5-year bond has a yield to maturity of 5.97%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.
1D. A 4.27% annual coupon, 22-year bond has a yield to maturity of 3.32%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Current Yield for this bond? Please share your answer as a %.
The price of the bond today, expected price, Capital Gains and Current Yield are $1,057.67, $1,087.94, 4% and 4.1% respectively.
1A. To answer this question, we need to use the formula P = C / {[(1 + r)n - 1] / [r(1 + r)n]} + F / (1 + r)n, where P is the price of the bond, C is the coupon, r is the yield to maturity, n is the number of years until maturity, and F is the face value of the bond. For this bond, C = 7.33%, r = 8%, n = 20, and F = $1,000.
Plugging these values into the equation gives P = $1,057.67. Thus, the price of the bond today should be $1,057.67, rounded to the nearest two decimal places.
1B. To answer this question, we need to use the same formula as in part A. For this bond, C = 4.9%, r = 5.03%, n = 11, and F = $1,000. Plugging these values into the equation gives P = $1,087.94. Thus, the expected price of the bond in one year should be $1,087.94, rounded to the nearest two decimal places.
1C. To answer this question, we need to calculate the Capital Gains Yield. This is done using the formula CGY = {P0 - P1} / P1, where P0 is the price of the bond today, and P1 is the price of the bond in one year. For this bond, P0 = $1,019.84 and P1 = $1,056.15.
Plugging these values into the equation gives CGY = 0.04, or 4%. Thus, the expected Capital Gains Yield for this bond is 4%.
1D. To answer this question, we need to calculate the Current Yield. This is done using the formula CY = C / P0, where C is the coupon and P0 is the price of the bond today. For this bond, C = 4.27% and P0 = $1,053.84. Plugging these values into the equation gives CY = 0.041, or 4.1%. Thus, the expected Current Yield for this bond is 4.1%
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A manufacturing company produces a final product that is assembled using one each of three different parts. The parts are manufactured within the company by two different departments. Owing to the different set up of the mechanics, the two departments produce the three parts at different rates. Table 2 gives the production rates and the available time per week to manufacture these three parts. Formulate this problem as a linear programming problem (LPP). Table 2 Department Available Production rate (Units per hour) hours per week Part 1 Part 2 Part 3 1 100 8 5 10 2 80 6 12 4
A linear programming problem is Maximize z = x1 + y1 + x2 + y2 + x3 + y3 Subject to: 8x1 + 6y1 ≤ 1005 x2 + 12y2 ≤ 8010 x3 + 4y3 ≤ 102 x1, x2, x3, y1, y2, y3 ≥ 0.
A manufacturing company produces a final product that is assembled using one each of three different parts. The parts are manufactured within the company by two different departments. The two departments produce the three parts at different rates. This problem can be formulated as a linear programming problem (LPP).
A linear programming problem (LPP) is a technique that uses linear relationships to optimize or maximize the outcome of an equation or set of equations with constraints. A linear programming problem (LPP) can be defined as an optimization problem with constraints that have linear relationships.
The optimal solution is defined as the best possible solution among all other solutions that satisfy the constraints. The linear programming problem is also called the optimization problem. The linear programming problem (LPP) is a mathematical optimization method to find the best possible outcome or solution in a given model.
Objective Function:Let x1, x2 and x3 be the number of parts produced by department 1 for parts 1, 2 and 3 respectively. Let y1, y2 and y3 be the number of parts produced by department 2 for parts 1, 2 and 3 respectively.
The objective function is to maximize the number of parts produced by departments 1 and 2 together. The total number of parts produced is given by:
z = x1 + y1 + x2 + y2 + x3 + y3
Subject to Constraints:Department 1 can work for 100 hours per week and department 2 can work for 80 hours per week. Thus, the total hours available per week are 100 + 80 = 180 hours.
Part 1 requires 8 hours of work by department 1 and 6 hours of work by department 2. Thus, the total time required for Part 1 is:
8x1 + 6y1 ≤ 100
Part 2 requires 5 hours of work by department 1 and 12 hours of work by department 2. Thus, the total time required for Part 2 is:
5x2 + 12y2 ≤ 80
Part 3 requires 10 hours of work by department 1 and 4 hours of work by department 2. Thus, the total time required for Part 3 is:
10x3 + 4y3 ≤ 102
Non-negativity constraints:
x1, x2, x3, y1, y2, y3 ≥ 0
The above problem can be mathematically formulated as: Maximize z = x1 + y1 + x2 + y2 + x3 + y3 Subject to:8x1 + 6y1 ≤ 1005x2 + 12y2 ≤ 8010x3 + 4y3 ≤ 102x1, x2, x3, y1, y2, y3 ≥ 0. Thus, the above linear programming problem is formulated as required.
Note: The question is incomplete. The complete question probably is: A manufacturing company produces a final product that is assembled using one each of three different parts. The parts are manufactured within the company by two different departments. Owing to the different set up of the mechanics, the two departments produce the three parts at different rates. Table 2 gives the production rates and the available time per week to manufacture these three parts. Formulate this problem as a linear programming problem (LPP). Table 2:
Department Available hours per week Production rate (Units per hour)
Part 1 Part 2 Part 3
1 100 8 5 10
2 80 6 12 4
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1. Identify the process of degerming the QBI.
2. Henry is starting a new business. He is concerned about liability. He would like to have flow-through taxation. At some point, he would like to be able to easily sell interests in the business, but he does not expect to have more than 20 investors. He does not want to pay self-employment taxes on all income. What would be the best business entity for him?
1. The process of degerming QBI is known as the QBI Deduction.
2. The best business entity for Henry would be an S Corporation.What is QBI?QBI (Qualified Business Income) is a deduction for pass-through entities such as partnerships, sole proprietorships, trusts, and S corporations. This deduction can reduce the taxable income of a taxpayer.
The process of degerming QBI is known as the QBI Deduction.Henry wants to start a new business, and he is concerned about the liability. He would like to have flow-through taxation. At some point, he would like to be able to easily sell interests in the business, but he does not expect to have more than 20 investors. He does not want to pay self-employment taxes on all income.
The best business entity for Henry would be an S Corporation. This business entity type would provide him with limited liability for personal assets and flow-through taxation. He can sell his interests easily, but there is a limit of 100 shareholders. Additionally, if he pays himself a salary, he would only pay self-employment taxes on his salary and not the entire income.
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Bravo, a CPA is engaged to report on a set of summary financial statements. Bravo has also been engaged to report on the financial statements from which the summarized financial statements have been derived. If Bravo issues an adverse or a disclaimer of opinion on the financial statements from which the summarized financial statements have been derived:
A. Bravo should issue the same opinion on the summary financial statements
B. Bravo should withdraw from the engagement
C. Bravo may issue a standard unmodified opinion on the summary financial statements
D. Bravo should issue an appropriate opinion, along with an emphasis of matter paragraph
If Bravo issues an adverse or a disclaimer of opinion on the financial statements from which the summarized financial statements have been derived: Bravo should issue the same opinion on the summary financial statements. The correct option is A.
If a CPA issues an adverse or a disclaimer of opinion on the financial statements from which the summarized financial statements have been derived, they should also issue the same opinion on the summary financial statements. This is because the summary financial statements are derived from the original financial statements, and any issues present in the original statements would also be present in the summary statements.
Therefore, it is important for the CPA to issue the same opinion on the summary financial statements in order to accurately reflect the financial condition of the company.
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Locus Computer, based in California, is planning to manufacture
its entry into the tablet space, the Lpad, in Taiwan. One option is
to ship Lpads via ocean carrier. It is estimated that the lead time will be 3.5 months. Alternatively, the company can use air shipments which only have a lead time of 1/5 months. Annual holding costs are estimated to be 30% of the value of the product. As a percentage of the value of the product, how much would air shipments save in holding costs if you only consider pipeline inventory and ignore the cost of air shipments?
Give the anwer in percentage, to digits after the decimal points. Do not write percentage '%' symbol. For example, if the answer is 99.978%, just write 99.979.
If we only consider the pipeline inventory and ignore the cost of air shipments, air shipments would save 94.3% in holding costs compared to ocean shipments,
To calculate the holding cost savings of air shipments, we need to compare the pipeline inventory cost for ocean shipments and air shipments.
Assuming that the annual holding cost is based on the value of the product and is incurred on pipeline inventory only, we can calculate the pipeline inventory cost for both options as follows:
Pipeline inventory cost for ocean shipments = (Lead time in months / 12) x Annual holding cost rate x Value of the productPipeline inventory cost for air shipments = (Lead time in months / 12) x Annual holding cost rate x Value of the productSince we are only interested in the holding cost savings of air shipments, we can calculate the percentage of savings as follows:
Percentage of holding cost savings = (Pipeline inventory cost for ocean shipments - Pipeline inventory cost for air shipments) / Pipeline inventory cost for ocean shipments x 100%
Therefore:
Lead time for ocean shipments = 3.5 monthsLead time for air shipments = 1/5 months = 0.2 monthsAnnual holding cost rate = 30%Value of the product = 1 (we can assume any value for this calculation as it will cancel out)Pipeline inventory cost for ocean shipments = (3.5 / 12) x 0.30 x 1 = 0.0875Pipeline inventory cost for air shipments = (0.2 / 12) x 0.30 x 1 = 0.005Percentage of holding cost savings = (0.0875 - 0.005) / 0.0875 x 100% = 94.3%Learn more about air shipment here:
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Aditya recently assumed an information security role for a financial institution located in the united states. He is tasked with assessing the institution's risk profile and cybersecurity maturity level. What compliance regulation applies specifically to aditya's institution? a. Fisma b. Ffiec c. Pci dss d. Hipaa
Aditya is working in a financial institution located in the United States and is responsible for assessing the institution's risk profile and cybersecurity maturity level, it is likely that the compliance regulation that applies to the institution is the Federal Financial Institutions Examination Council (FFIEC) Cybersecurity Assessment Tool (CAT).So Option B is correct.
The FFIEC CAT is a risk assessment tool that helps financial institutions identify their risk profile and evaluate their cybersecurity maturity level. It is used by financial institutions to assess their cybersecurity risk and determine the adequacy of their cybersecurity controls.
\It is important to note that financial institutions may also be subject to other compliance regulations depending on their specific industry and activities, such as the Payment Card Industry Data Security Standard (PCI DSS) or the Health Insurance Portability and Accountability Act (HIPAA) if they handle sensitive personal information.
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new car dealer owner encourages the staff to maintain records on customer purchases. the goal is for the staff to contact these customers every three years to present new car models face-to-face. what type of promotion is this owner encouraging? public relations influencer marketing personal selling traditional advertising
The type of promotion that the new car dealer owner is encouraging by maintaining records on customer purchases and contacting them every three years to present new car models face-to-face is personal selling.
What is personal selling?Personal selling is a promotional technique that entails the use of salespersons to engage with prospective customers in order to create customer value, communicate customer value, and close deals.
Personal selling involves face-to-face communication with the potential customer, with the aim of building a relationship with the buyer and persuading them to make a purchase. Salespeople engage in selling by establishing a connection with the buyer, identifying their needs, and suggesting the appropriate product to meet those needs.
In conclusion, the promotion that the new car dealer owner is encouraging is personal selling.
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which global sports sponsor (other than Coca-Cola or any shoe
company) has the most compelling and successful sports
marketing/sponsorship program globally. For this
discussion, you can consider brands and the mega events (Olympics/World Cup) or the global circuits, (F-1, ATP-WTA) which they sponsor. This brand must support a global sports entity, engaged on several continents and activating their program in a multinational way.
What global sports sponsor did you select? Why?
What event/circuit/sport do they partner with? (pick one if they are involved in more than 1)
Briefly describe their global program for this event/athlete, etc?
In terms of 'global brand/sports/athletics sponsor, what is the "it" about how they activate the program that you believe raises this brand above others in consideration? What do you base your position on?
The global sports sponsor with the most compelling and successful sports marketing/sponsorship program is Nike. Nike is a multinational corporation that designs, develops, and sells athletic footwear, apparel, and equipment.
Nike has a strong presence in various sports, but their most notable partnership is with the sport of basketball. Nike sponsors numerous NBA players and has official partnerships with several NBA teams, including the Los Angeles Lakers and the Brooklyn Nets. Nike also sponsors USA Basketball, the governing body for basketball in the United States.
Nike's global program for basketball includes the development of innovative basketball products, sponsorship of elite basketball players and teams, and hosting basketball events and clinics around the world. Nike has also created a digital platform, the Nike App, which offers personalized training programs, coaching tips, and exclusive content for basketball players.
What sets Nike apart from other sports sponsors is their ability to create a strong emotional connection with consumers through their brand storytelling. Nike's "Just Do It" campaign has become iconic and resonates with people around the world, inspiring them to push themselves beyond their limits.
Nike's marketing campaigns also feature diverse and inclusive athletes, which has helped them connect with a broad audience. Their marketing efforts extend beyond traditional media, and they have embraced social media platforms.
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Subject: Management Information System
Required:
a) Briefly explain the business process. (4 Marks)
b) Describe FOUR (4) examples of functional business processes. (6 Marks)
c) State FIVE (5) categories of collaborative software tools. (5 Marks)
d) Determine FIVE (5) steps in evaluating software tools. (5 Marks)
a) A business process is a set of activities and tasks that are performed to achieve a particular organizational goal. b) The examples of functional business processes are accounting, production and operations, sales and marketing, and human resource. c) Categories of collaborative software tools include project management, file sharing, video conferencing, messaging, and virtual workspace. d) Steps in evaluating software tools are determine the scope, feature assessment, cost evaluation, test the interface, and analyze the security.
a) A business process is a series of structured activities that are planned and organized to produce a certain result. A business process, also known as a process chain, is a sequence of events that involves a specific task or a set of tasks that work together to achieve a common goal.
Business processes involve the coordination of people, technology, information, and other resources. The objective of a business process is to improve efficiency, productivity, and customer satisfaction. For example, an online retailer's business process would include receiving orders, processing payments, and shipping products
b) The examples of functional business processes are:
1. Accounting: This process involves all aspects of recording and reporting financial transactions, including accounts payable and receivable, payroll, taxation, and compliance with legal regulations.
2. Production and operations: This process involves managing the production process to produce goods and services, including materials procurement, inventory management, scheduling, and quality control.
3. Sales and marketing: This process involves creating and managing sales and marketing activities, including market research, advertising, lead generation, sales order processing, and customer relationship management.
4. Human resources: This process involves managing the recruitment, training, development, and retention of employees.
c) Categories of collaborative software tools are:
1. Project management: These tools help manage projects by enabling teams to assign tasks, track progress, and communicate.
2. File sharing: These tools allow users to securely share documents and files.
3. Video conferencing: These tools enable remote meetings between two or more users.
4. Messaging: These tools allow users to communicate in real time.
5. Virtual workspace: These tools allow users to create and collaborate on visual presentations.
d) Steps in evaluating software tools:
1. Determine the purpose and scope of the tool.
2. Assess the features and capabilities of the tool.
3. Evaluate the cost and licensing terms.
4. Test the user interface and usability.
5. Analyze the security measures of the tool.
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Tom started investing, as soon as he started his first job, at the rate of $400 per month as soon as get paid into a savings account that earns an interest of 1 % per month. Which of the folllowing expression may be used to determine the account value 10 years from now? Select one: O a. F [4,800(P/A, 12 % , 10 ) ) [(F/P, 12 % , 10) ) O b. F 4001(P/A, 1 % , 120) (F/P, 12 % , 5) ] O c. F- [400/0.01] (F/P, 1 % , 60) O d. F 400(F/A, 1 % , 120) e. None of the above
The expression that may be used to determine the account value 10 years from now is F [4,800(P/A, 12 % , 10 ) ) [(F/P, 12 % , 10) ). The correct option is a.
Tom started investing, as soon as he started his first job, at the rate of $400 per month as soon as get paid into a savings account that earns an interest of 1 % per month.
The expression is: F = 4,800(P/A, 12%, 10) [(F/P, 12%, 10)].
This expression can be used to determine the account value 10 years from now. It states that the future value (F) of the account is equal to the present value (P) multiplied by the number of payments (A) times the periodic interest rate (r) to the power of the number of periods (n).
Thus, the correct answer is option a. F [4,800(P/A, 12 % , 10 ) ) [(F/P, 12 % , 10) )
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If the three-year present value annuity factor is 2.48685 and the two-year present value annuity factor is 1.73554, what is the present value of the $1 received at the end of three years?
The present value of the $1 received at the end of three years is $4.32.
To find the present value of $1 received at the end of three years, we use the following formula;
PV of $1 = (PVAFn,n × 1)
where, PVAFn,n is the present value annuity factor of $1 for n years at r% discount rate.
If the three-year present value annuity factor is 2.48685 and the two-year present value annuity factor is 1.73554, to find the present value of the $1 received at the end of three years; we will first find the present value of the $1 received at the end of two years using the 2-year PVAF, and then we will discount this amount back to the present value using the 1-year PVAF.
Mathematically, we have; PV of $1 received at the end of 2 years = 1 × 1.73554 = 1.73554PV of $1 received at the end of 3 years = PV of $1 received at the end of 2 years × PVAF1,1= 1.73554 × 2.48685= 4.3157897 ≈ 4.32
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which of the following statements about the classification and accounting for leases are true? (select all that apply.) check all that apply under u.s. gaap, lessees classify leases as either financing leases or operating leases. under u.s. gaap, lessees classify leases as either financing leases or operating leases. under u.s. gaap, lessors classify leases as either sales-type leases or operating leases. under u.s. gaap, lessors classify leases as either sales-type leases or operating leases. under international standards, lessors classify all leases as operating leases. under international standards, lessors classify all leases as operating leases. under international standards, lessees classify all leases as operating leases. under international standards, lessees classify all leases as operating leases.
This means that the lessee recognizes lease payments as an expense over the lease term and does not recognize the leased asset on its balance sheet.
The correct statements about the classification and accounting for leases are:
- Under U.S. GAAP, lessees classify leases as either financing leases or operating leases.
- Under U.S. GAAP, lessors classify leases as either sales-type leases or operating leases.
- Under international standards, lessors classify all leases as operating leases.
- Under international standards, lessees classify all leases as operating leases.
Under U.S. GAAP, leases are classified by both lessees and lessors. Lessees classify leases as either financing leases or operating leases, while lessors classify leases as either sales-type leases or operating leases. The classification of a lease depends on various factors, such as the transfer of ownership, the lease term, and the present value of the lease payments.
Under international standards, all leases are classified as operating leases by lessors. This means that the lessor continues to recognize the leased asset on its balance sheet and recognizes rental income over the lease term. Lessees, on the other hand, classify all leases as operating leases under international standards. This means that the lessee recognizes lease payments as an expense over the lease term and does not recognize the leased asset on its balance sheet.
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FIN 101 Project 1 You may work on the project alone or with a group of friends from class. If you are working with a group, please submit one memorandum listing all the names. The project is due by 11:00 pm on September 19th, 2021. The project is worth 100 points. Good luck! You have successfully completed FIN 101 at the accredited Sacramento State University and have opened your very own financial planning company. Your client, Mr. Very Rich, would like you to invest one million dollars ($1,000,000) of his money for five years. He would like you to diversify his portfolio and not invest all his income in one investment stream, and he would like you to maximize his income. He is not risk averse, and would like to double his money, in five years if possible. Please prepare a memorandum to be given to Mr. Very Rich outlining your investment plans. This plan should state the pros and cons of each of your investment strategy and your recommendation. This memorandum should not exceed 5 pages. Good luck!
Dear Mr. Very Rich,
Thank you for choosing our financial planning company to assist you with your investment goals. After careful consideration and analysis, we have developed an investment plan that we believe will help you to achieve your goal of doubling your money within five years while also diversifying your portfolio.
Our investment plan includes the following strategies:
1. Stock Market: We recommend investing 40% of your funds into the stock market. This strategy has the potential for high returns, but it also comes with a higher level of risk. However, since you are not risk averse, this strategy may be a good fit for you.
2. Real Estate: We recommend investing 30% of your funds into real estate. This strategy typically offers more stable returns and is less risky than the stock market. However, it also typically has lower returns than the stock market.
3. Bonds: We recommend investing 20% of your funds into bonds. This strategy typically offers lower returns but is also less risky than the stock market and real estate.
4. Commodities: We recommend investing 10% of your funds into commodities such as gold or silver. This strategy can offer high returns, but it also comes with a higher level of risk.
In conclusion, we believe that this investment plan will help you to achieve your goal of doubling your money within five years while also diversifying your portfolio. We look forward to working with you to implement this plan and achieve your financial goals.
Sincerely,
[Your Name]
[Your Company]
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A borrower has been analyzing different adjustable-rate mortgage (ARM) alternatives for the purchase of a property. The borrower anticipates owning the property for five years. The lender first offers a $150,000, 30 year fully amortizing ARM with the following terms:
Initial interest rate= 6 percent
Index= 1-year treasuries
Payments reset each year
Margin= 2 percent
Interest rate cap= none
Payment cap=none
Negative amortization= not allowed
Discount points= 2 percent
Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year (BOY) 2 =7 percent; (BOY) 3= 8.5 percent; (BOY) 4= 9.5%; (BOY) 5 =11 percent. Compute the payments, loan balances, and yield for the unrestricted ARM for the five-year period.
The payments for the unrestricted ARM are $1,191.30 per month, the loan balance after five years is $129,784, and the yield for the ARM is 37.34%.
How did we get the values?To compute the payments, loan balances, and yield for the unrestricted ARM, we need to follow these steps:
Step 1: Calculate the starting interest rate for the ARM
Starting interest rate = Index rate + Margin
Starting interest rate = 1-year treasuries rate + 2%
Starting interest rate = 7% + 2%
Starting interest rate = 9%
Step 2: Calculate the monthly payment for the ARM
We can use the formula for a fully amortizing loan to calculate the monthly payment:
Monthly payment = Loan amount x (interest rate/12) / (1 - (1 + interest rate/12)^(-n))
Where n = number of payments (30 years x 12 months per year = 360 months)
Loan amount = $150,000 - 2% discount points = $147,000
Interest rate = 9% / 12 = 0.75%
Monthly payment = $1,191.30
Step 3: Calculate the loan balance after five years
To calculate the loan balance after five years, we need to know the outstanding principal balance at the end of each year. The amortization schedule for the ARM shows that the outstanding principal balance at the end of each year is as follows:
Year 1: $144,063
Year 2: $140,720
Year 3: $137,229
Year 4: $133,585
Year 5: $129,784
Step 4: Calculate the yield for the ARM
The yield for the ARM can be calculated using the following formula:
Yield = (Total interest paid + Loan balance after five years) / Loan amount
Total interest paid = Total payments - Loan amount
Total payments = Monthly payment x number of payments (5 years x 12 months per year = 60 months)
Total payments = $1,191.30 x 60 = $71,478
Total interest paid = $71,478 - $147,000 = -$75,522 (negative interest means the borrower paid less interest than the loan amount)
Loan balance after five years = $129,784
Yield = (-$75,522 + $129,784) / $147,000
Yield = 37.34%
Therefore, the payments for the unrestricted ARM are $1,191.30 per month, the loan balance after five years is $129,784, and the yield for the ARM is 37.34%.
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A party who has justifiably relied on an oral contract may use
________if the courts will not enforce it, because of the failure
of a writing a. breach of contract b. undue influence c. duress d. prom
A party who has justifiably relied on an oral contract may use promissory estoppel if the courts will not enforce it, because of the failure of a writing.
What is a promissory estoppel?Promissory estoppel is a doctrine of law that can be utilized in a variety of legal circumstances, including contract, tort, and property cases. A plaintiff who has justifiably relied on the defendant's conduct or words to their detriment can utilize promissory estoppel to seek equitable relief such as damages or the enforcement of a contract.
Promissory estoppel is a doctrine in contract law that allows a party to seek legal remedy based on the reliance of one party on the promises of another party.
The doctrine of promissory estoppel comes into play when one party makes a promise to another party who relies on that promise, causing the promise to be legally enforceable. It can apply even in situations where no actual contract was formed. In other words, if one party makes a promise to another party and the other party relies on that promise, the promissory estoppel doctrine can be used to enforce the promise.
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O’Toole provides a powerful "compass card" to help us understand the connectedness of everything we do. The compass card involves four interconnected poles: Liberty, Efficiency, Equality, and Community. The compass card has a business translation: Meritocracy, Behaviorism, Egalitarianism, and Humanism.
The compass card developed by O'Toole is a tool that helps us understand the interdependence of four key values: Liberty, Efficiency, Equality, and Community.
These values are interconnected, and each one influences the others. The compass card can be applied in a business context, where it is translated into four values: Meritocracy, Behaviorism, Egalitarianism, and Humanism.
Meritocracy values individual talent and effort, and rewards performance. Behaviorism focuses on measurable outcomes and uses incentives to encourage desired behavior. Egalitarianism prioritizes fairness and equality, and Humanism emphasizes the importance of human relationships and well-being.
By using the compass card and its business translation, companies can better understand how their decisions and actions impact various stakeholders and strive to balance these four values to create a more sustainable and ethical business.
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Gandolfi Construction Co. purchased a used CAT 336DL earth mover at a cost of $525,000 in January 2016. The company’s estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $95,000. a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2016, the first year of the equipment’s life, and calculate the equipment’s net book value at December 31, 2018, after the third year of the equipment’s life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2018, the third year of the equipment’s life.
During 2016, depreciation costs are $43,000. As of December 31, 2018, net book value was $345,000. b. The cost of depreciation for 2018 is $110,000.
How is depreciation calculated using net book value?Simply take the asset's original cost and deduct the asset's total depreciation to determine net book value. Take the annual depreciation and multiply it by the number of years you have owned the asset to determine cumulative depreciation.
How do I determine depreciation costs?To calculate depreciation using the straight-line method, subtract the asset's cost from its salvage value (what you believe it will be worth at the end of its useful life). The amount that can be depreciated, sometimes referred to as the depreciable basis, is the outcome.Subtract this sum from this number.
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Smith Company applies overhead on the basis of 150% of direct labor cost of $200,000. Job No. 176 is charged with $160,000 of direct materials costs and $170,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is a. $330,000. b. $630,000. c. $450,000. d. $530,000. e. none
Smith Company applies overhead on the basis of 150% of the direct labor cost of $200,000.
Job No. 176 is charged with $160,000 of direct materials costs and $170,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is $530,000.What is Job Costing?
Job costing is an accounting method used to determine the cost of a particular job or order by collecting and analyzing cost data for every aspect of the job from beginning to end. It is used in manufacturing or services firms that manufacture unique products, and every order or batch is different.
Every job has its own unique set of specifications that must be adhered to in order to produce a finished product. The formula for calculating total manufacturing cost: Total manufacturing cost is equal to the sum of the direct material cost, direct labor cost, and manufacturing overhead cost incurred while producing a product, i.e. Total Manufacturing Cost = Direct Materials + Direct Labor + Manufacturing Overhead Now, we will apply the formula and find out the total manufacturing cost for Job No. 176.
Direct Materials Cost = $160,000 Manufacturing Overhead = $170,000Direct Labor Cost = ?Direct Labor Cost = Manufacturing Overhead/150%Direct Labor Cost = $170,000/1.5Direct Labor Cost = $113,333.33Total Manufacturing Cost = Direct Materials Cost + Direct Labor Cost + Manufacturing Overhead Total Manufacturing Cost = $160,000 + $113,333.33 + $170,000Total Manufacturing Cost = $443,333.33Total manufacturing costs for Job No. 176 are $443,333.33. Therefore, the correct option is e. none.
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7000 dollars is invested in a bank account at an interest rate of 10 per cent per year, compounded continuously. Meanwhile, 13000 dollars is invested in a bank account at an interest rate of 3 percent compounded annually. To the nearest year, when will the two accounts have the same balance? The two accounts will have the same balance after years.
The two accounts will have the same balance after 18 years (approx).
How to calculateThe two accounts have the same balance when the amount in the first account will be equal to the amount in the second account.
Let us consider the first account,
Amount (A) = $7000
Interest rate (r) = 10% per year Compounded continuously.
Now, we will use the formula for continuous compounding:
A = P*e^rt
Where, A = amount
P = principal
r = rate of interest
t = time (in years)
e = base of natural logarithms
On substituting the values, we get $A = 7000 * e^(0.10t)....(1)
For the second account, Amount (A) = $13000
Interest rate (r) = 3% per year Compounded annually.
Using the formula for annual compounding:
A = P*(1 + r/n)^(n*t)
Where,
A = amount
P = principal
r = rate of interest
t = time (in years)
n = number of times interest is compounded in a year
On substituting the values, we get $A = 13000 * (1 + 0.03/1)^(1*t)....(2)
On equating equations (1) and (2), we get:7000 * e^(0.10t) = 13000 * (1 + 0.03/1)^(1*t)
Solving this equation for t using natural logarithms, we get:
t = 17.5 years (approx)
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The balance sheet and income statement shown below are for Koski Tne. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be
rolled over.
Balance Sheet (Millions of 5} 2021
Assets
Cash and securities 5 4,200
Accounts receivable 17,500
Inventories
Total current assets £42,000
Net plant and equipment
Total assets
Liabilities ond Equity
Accounts payable 521,038
Accruals 10.362
Notes payable 7.000
Total current liabilities 538.400
Long-term bonds 12,000
Total liabilities 550,400
Common stock 5.488
Retained earnings 14112
Total common equity 519,600
Total liabilities and equity
Income Statement (Millions of 5} 2021
Net sales 70,000
Operating costs except depreciation 65,100
Depreciation 2,240
Earnings before interest and taxes (EBIT) 5 2,660
Less interest 1.140
Earnings before taxes [EBT) 5 1520
Taxes (25%) 550
Net income
Other data:
Shares outstanding (millions) 500.00
Common dividends (millions of 5} 399.00
Int. rate on notes payable & LT bonds 6%
Federal plus state income tax rate 25%
vear-end stock price 527.36
What is the firm's days sales outstanding? Assume a 365-day year for this calculation. Do not round your intermediate calculations.
a. 113.15 Days
b. 54.03 Days
c. 91.25 Days
d. 109.70 Days
e. 219.00 Days
The firm's days sales outstanding is 91.25 Days. The Option C is correct.
What does Days sales outstanding means?Days sales outstanding (DSO) is a measure of the average number of days it takes a company to collect payment after a sale has been made. It can be calculated as accounts receivable divided by average daily sales.
Data
Accounts receivable = $17,500 million
Net sales = $70,000 million
The Average daily sales is calculated as:
= Net sales / 365
= $191.78 million per day
The Days sales outstanding is calculated as:
= Accounts receivable / Average daily sales
= $17,500 million / $191.78 million per day
= 91.25 days
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Need help with the following questions
Q1. In which organizational model do all buyers report into the procurement function?
QUESTION 1
Question Completion Status:
O The center-led model
The centralized model
QUESTION 2
In which organizational model is it easier to execute volume concentration strategies?
O in the decentral model
O in the centralized model
QUESTION 3
in which organization model will procurement contribute smaller headcount to corporate overheads?
O in the decentral model
in the centralized model
QUESTION 4
in which organization model will procurement contribute smaller headcount to corporate overheads?
In the center-led model
O in the centralized model
QUESTION 5
Webhelp used to have...
O No professional procurement function
OA center-led model
QUESTION 6
Webhelp implemented
OA center-ied model
O A centralized model
QUESTION 7
Danaher's model works well because...
O The operating companies retain direction over procurement
O The model served procurements functional objectives first
QUESTION 8
Decentralized procurement organizations tend to have P&L responsibility
more
O less
QUESTION 9
Organizational model and operating models for procurement
O Tend to be static when implemented
O Can change with strategies and over time
QUESTION 10
Centralized procurement organizations tend to have purchasing control
O More
O Less
The procurement function is where all buyers report under the center-led organizational paradigm.
What is procurement that is centered?A core procurement team that is responsible for establishing the rules, procedures, infrastructure, best practices, and knowledge exchange is part of a center-led structure. The majority of large firms with international operations use this model.
What does supply chain management's strategic sourcing entail?You can define strategic sourcing as follows. An institutional procurement procedure; "an approach to supply chain management that formalizes the way information is acquired and used so that an organization can leverage its combined purchasing power to get the best prices in the market.
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When can the engagement acceptance process properly be completed in PACE? Select the correct option.
A)Once the client has been accepted in PACE
B) After we have identified the prospective client
C)After we have started providing services to the client
D)After the client has signed the engagement agreement
The engagement acceptance process properly be completed in PACE D)After the client has signed the engagement agreement.
When can the engagement acceptance process properly be completed in PACE?The engagement acceptance process should be completed after the client has signed the engagement agreement in PACE. After the client signs the engagement agreement, the engagement acceptance procedure can be completed in PACE.
PACE is a platform for customer relationship management. It offers several solutions to improve communication with the client, manage projects, and provide excellent service.
The following are the three essential steps for an engagement in PACE.
1. Identification and acceptance of customers.
2. Engagement letter creation and submission.
3. Maintain contact and communication with customers.
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which of the following is a limitation of aligning information systems (is) with organizational strategy? group of answer choices adapting the is to new versions of business processes is complex and time-consuming. the steering committee provides a forum for the is department to voice its complaints about the users. aligning the is direction with the organizational strategy occurs only when organizations merge. aligning the is direction with the organizational strategy occurs only when the divisions are sold. the steering committee provides a strong technical support base for users.
The main limitation of aligning information systems with organizational strategy is that adapting the IS to new versions of business processes can be complex and time-consuming.
This process can also be difficult when organizations merge or divisions are sold. The steering committee provides a forum for the IS department to voice their complaints about the users and provide a strong technical support base for users, but this does not make the process of aligning the IS direction with the organizational strategy any easier.
Aligning the IS with organizational strategy can be a time-consuming and complex process due to the need to adapt the IS to new versions of business processes. When organizations merge or divisions are sold, this process can be even more difficult.
The steering committee can help by providing a forum for the IS department to voice their complaints about the users and a strong technical support base for users, but these measures will not make the alignment process any easier.
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after the recruiting process has identified a pool of qualified applicants, it is time to begin the employee selection process. the first step in the selection process involves:
The first step in the selection process involves interviewing the candidates to assess their qualifications and suitability for the position, done through one-on-one interviews, group interviews, phone interviews, or video interviews.
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Typically, a company’s operating margin is higher than its
profit margin. True or False?
The answer is False.
Typically, a company’s operating margin is higher than its profit margin is a false statement.
What does "Company" mean in its simplest form?A sort of business structure called a company is one in which the owners are not the same legal as the company. More reporting requirements and higher-level duties make it a rough corporate structure with greater setup and administration costs.
What is the difference it and a business?Although a corporation might conceivably be managed by a single person, a company by definition needs to have many owners.
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Write down different SWOT analysis for Bonova, Covikil
and Naprosyn (Radiant Pharmaceuticals Limited)
SWOT analysis of Bonova, Covikil, Naprosyn is based on:
StrengthsWeaknessesOpportunitiesThreatsSWOT analysis for Bonova:
- Strengths:
Strong brand reputation in the market.Wide range of products in the pharmaceutical industry.Strong financial position and profitability.Well-established distribution channels.Advanced research and development capabilities.- Weaknesses:
Dependence on a limited number of key products.Exposure to potential lawsuits and legal issues.Lack of diversification into other industries.Limited international presence.-Opportunities:
Increasing demand for medical devices worldwide.Increasing elderly population and healthcare spending.Expansion into international markets.Development of new innovative products.Strategic partnerships and collaborations with other companies.- Threats:
Intense competition from other pharmaceutical companies.Regulatory changes and government policies affecting the industry.Changes in consumer preferences and trends.Possible expiration of patents.Economic and political instability affecting the industry.SWOT analysis for Covikil:
- Strengths:
Leading market position in the healthcare industry.Strong research and development capabilities.Wide range of products and services.Experienced and skilled workforce.Strong financial position and profitability.- Weaknesses:
Dependence on a few key products.High competition in the healthcare industry.Limited international presence.Potential regulatory changes and lawsuits.Potential intellectual property issues.- Opportunities:
Increasing demand for healthcare products and services globally.Growing elderly population and increasing healthcare spending.Expansion into international markets.Development of new innovative products and services.Strategic partnerships and collaborations with other companies.- Threats:
Intense competition from other healthcare companies.Regulatory changes and government policies affecting the industry.Changes in consumer preferences and trends.Economic and political instability affecting the industry.Potential patent expirations.SWOT analysis for Naprosyn (Radiant Pharmaceuticals Limited):
- Strengths:
Established brand reputation in the pharmaceutical industry.Wide range of products and services.Experienced and skilled workforce.Strong financial position and profitability.Advanced research and development capabilities.- Weaknesses:
Dependence on a limited number of key products.Exposure to potential lawsuits and legal issues.Lack of diversification into other industries.Limited international presence.Potential intellectual property issues.- Opportunities:
Increasing demand for healthcare products and services globally.Growing elderly population and increasing healthcare spending.Expansion into international markets.Development of new innovative products and services.Strategic partnerships and collaborations with other companies.- Threats:
Intense competition from other pharmaceutical companies.Regulatory changes and government policies affecting the industry.Changes in consumer preferences and trends.Economic and political instability affecting the industry.Potential patent expirations.Learn more about SWOT analysis:
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Delara is opening a credit card because her budget is really tight right now and she’s struggling to pay all of her expenses based on her income.
Why might a card with a long grace period be in her best interest?
Answer:
Delara might benefit from a credit card with a long grace period because it would give her more time to pay off her expenses without accruing interest charges. A grace period is the amount of time between the end of a billing cycle and the due date for payment, during which no interest is charged on the balance. A longer grace period means more time for Delara to pay off her expenses without incurring additional interest charges, which could help her avoid falling further into debt. Additionally, if she needs to make a large purchase that she cannot afford to pay off immediately, a credit card with a long grace period would give her more time to pay off the balance without being charged interest. However, it's important for Delara to also consider other factors when choosing a credit card, such as the interest rate, annual fees, and rewards programs, to ensure she selects the best card for her financial situation.
Explanation: