If the interest rate falls below the equilibrium point, the following occurs in the financial market excess demand occurs and credit card firms will lower interest rates to attract customers. The correct options are options A and B.
Equilibrium point: The equilibrium point is the point at which demand and supply are equal in quantity, and there is no shortage or surplus. The price of a commodity is also constant at the equilibrium point. In the financial market, if the interest rate falls below the equilibrium point, there is a high demand for credit cards, which leads to excess demand. This implies that demand is more than supply. In an attempt to attract customers, credit card firms will reduce interest rates. Hence, credit card firms will lower interest rates to attract customers.
Option C and option D are wrong because if the interest rate falls below the equilibrium point, credit card companies will not see an opportunity to raise interest rates. Also, firms will not be eager to supply loans to credit card customers as the demand is more than supply, and there is excess demand.
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Write a retirement plan which includes your age of retirement, the job you will have and income you earn, the amount of Social Security you can expect on retirement considering the age of retirement, as well as the retirement contributions you and your company make over the course of your career. Include all calculations used to formulate your response.
Answer:
I can provide an example retirement plan based on hypothetical values.
Retirement Plan Example:Age of Retirement: 65 years oldJob: Financial AnalystIncome: $100,000 per yearExpected Social Security Benefit at Retirement: $2,000 per month (based on current Social Security Administration estimates for someone retiring at age 65 with a $100,000 income)
Retirement Contributions:- Employee Contribution: 10% of salary- Employer Contribution: 5% of salaryAssumptions:- Retirement contributions are invested in a tax-advantaged retirement account with an average annual return of 7%.- Salary increases by 3% per year.- Inflation rate is 2% per year.Calculations:1. Calculate retirement contributions over the course of a 30-year career:
- Total employee contributions over 30 years = 10% x $100,000 x 30 years = $300,000- Total employer contributions over 30 years = 5% x $100,000 x 30 years = $150,000- Total retirement contributions over 30 years = $300,000 + $150,000 = $450,0002. Calculate retirement savings at age 65:
- Retirement savings at age 65 = $450,000 x (1 + 0.07)^30 = $2,550,050 (including investment returns)3. Calculate retirement income:
- Expected Social Security Benefit at Retirement = $2,000 per month = $24,000 per year- Retirement savings at age 65 = $2,550,050- Total retirement income = $24,000 + $2,550,050 = $2,574,0504. Adjust for inflation:
- To adjust for inflation, we can assume a 2% annual increase in retirement income.- Adjusted retirement income at age 65 = $2,574,050 / (1 + 0.02)^30 = $1,287,689 (in today's dollars)In summary, with a retirement plan that includes employee and employer contributions, expected Social Security benefits, and investment returns, someone retiring at age 65 with a $100,000 income could expect to have a retirement income of around $1.3 million (in today's dollars) based on these assumptions. However, it is important to note that retirement planning is a complex process and involves many variables, such as investment risk, taxes, and healthcare costs. It is recommended to seek professional financial advice when creating a retirement plan.
Consider the following aspects from an income statement
Items in income statement Amount
Net Sales 1000
Revenue from additional services 500
Wages 100
Rent 50
Cost of wages, raw materials, supplies & manufacturing 500
Utilities 10
Interest amount 100
Dividend 200
Consider Tax rate at 40% You need to recreate the income statement and calculate the increase in retained earnings.
What is the increase in retained earnings?
The increase in retained earnings is $244. Retained earnings represent a company's accumulated earnings that have not been paid out to shareholders as dividends. The increase in retained earnings can be calculated by subtracting the beginning balance of retained earnings.
Income statement is a financial statement that presents a company's revenue, expenses, and net income over a period of time. To recreate the income statement, we need to calculate the following: Total revenue: Net sales + Revenue from additional services = 1000 + 500 = 1500.
Total expenses: Wages + Rent + Cost of wages, raw materials, supplies & manufacturing + Utilities + Interest amount = 100 + 50 + 500 + 10 + 100 = 760
Pre-tax income: Total revenue - Total expenses = 1500 - 760 = 740, Taxes: Pre-tax income x Tax rate = 740 x 0.4 = 296 and Net income: Pre-tax income - Taxes = 740 - 296 = 444. Retained earnings: Net income - Dividend = 444 - 200 = 244
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Subject: Management Information System
Required:
a) Elaborate the following terms with examples.
i. Business intelligence. (4 Marks)
ii. Enterprise systems. (4 Marks)
b) Recognize TWO (2) systems that that support or related to each other. (4 Marks)
c) Describe FOUR (4) complex relationship influenced by organizations. (8 Marks)
a) i) Business intelligence is a set of technologies, processes, and practices used to collect, analyze, and present data in order to help organizations make better decisions. ii) Enterprise systems are software applications that provide integrated, comprehensive business solutions to meet the complex needs of an organization.
b) Two systems that support or related to each other are supply chain management and customer relationship management.
c) Four complex relationship influenced by organizations are employee relation, supplier relation, customer relation, and partner relation.
a) i) Business IntelligenceBusiness intelligence (BI) is an umbrella term used to describe a set of techniques and tools for collecting, processing, analyzing, and presenting data from various business operations. It helps the organization to gain an insight into its operations and make informed decisions.
Examples of business intelligence include data mining, online analytical processing, reporting, and querying, data visualization, analytics, predictive modeling, machine learning, artificial intelligence, etc.
ii) Enterprise SystemsEnterprise systems are large-scale software applications used by organizations to manage and integrate their business processes. It includes a wide range of activities such as accounting, finance, human resources, customer relationship management, and supply chain management.
Examples of enterprise systems include SAP, Oracle, and Microsoft Dynamics as well as enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM).
b) Two systems that support or related to each other.Two systems that support or related to each other are supply chain management and customer relationship management. Customer relationship management helps in building customer loyalty and retaining customers. It also provides insights into customer behavior and preferences that are important for supply chain management.
On the other hand, supply chain management involves the coordination and integration of various business activities such as procurement, production, and logistics. It helps in ensuring that products are delivered to customers in a timely and efficient manner.
c) Four complex relationships influenced by organizations.The following are the four complex relationships influenced by organizations:
1. Employee relations: Employee relations refer to the relationship between employers and employees. It involves various activities such as recruitment, training, performance management, and compensation. Organizations that have good employee relations are more likely to have a motivated and productive workforce.
2. Supplier relations: Supplier relations refer to the relationship between organizations and their suppliers. It involves various activities such as procurement, negotiation, and contract management. Organizations that have good supplier relations are more likely to have a reliable supply chain and get better deals from suppliers.
3. Customer relations: Customer relations refer to the relationship between organizations and their customers. It involves various activities such as marketing, sales, and customer support. Organizations that have good customer relations are more likely to have loyal customers and repeat business.
4. Partner relations: Partner relations refer to the relationship between organizations and their partners. It involves various activities such as joint ventures, strategic alliances, and collaborations. Organizations that have good partner relations are more likely to have access to new markets and technologies.
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I subscribe to the notion that there is no greater measure of success than one’s ability to help others succeed. My most personally gratifying moments have been the ones in which I taught a skill to someone else, whether it was martial arts, snowboardinging or fitness. I want my life’s work to make a much wider-reaching impact, however. This is what excites me about participating in Global Network week and gain a more well-rounded perspective on management, leadership, and the world of business.
I hold an undergraduate degree in applied management, which equipped me well for my leadership and management roles in the restaurant industry. These work experiences further drove home the importance of motivating a team to achieve collective goals — and, at times, the challenges of doing so. My time as a fitness and snowboarding instructor has taught me perseverance, patience, attention to detail, teamwork, and adaptability. There is no one size fits all approach to helping people learn and understanding this manages the expectation levels of myself and others while inspiring new and innovative ways of approaching and tailoring the classes and lessons I teach(taught?).
Positive motivation allows individuals to flourish and create and the lack thereof can incite struggle. I have felt the struggle of being guided by poor leadership, experiencing how much it can deplete us, greatly affecting our well-being. Empowered, motivated individuals are the foundation of impactful organizations, institutions, and communities. This e
Learning more about leadership, motivation, and decision-making will help me become a more effective mentor, manager, and leader in business and equip me with more ways to iimprove the quality of life on an individual level. I am confident that the program I'm seeking will build on the knowledge gained from my diverse experiences and contribute to the program in meaningful ways. Through… individual impact,,, society and I look forward to the opportunity to learn and grow from the exceptional leaders I will be surrounded by at GNW ***(i also want to tie the thesis back in) ????
I am motivated to participate in Global Network Week to gain a more well-rounded perspective. My diverse experiences have equipped me with the knowledge.
My undergraduate degree in applied management has equipped me well for my leadership and management roles in the restaurant industry, teaching me the importance of motivating a team to achieve collective goals. My time as a fitness and snowboarding instructor has further honed my skills in perseverance, patience, attention to detail, teamwork, and adaptability.
I am motivated to participate in Global Network Week to gain a more well-rounded perspective on management, leadership, and the world of business. By learning more about leadership, motivation, and decision-making, I am confident that I will become a more effective mentor, manager, and leader in business, and be able to help improve the quality of life on an individual level.
My diverse experiences have equipped me with the knowledge and skills necessary to contribute meaningfully to the program and to benefit from the exceptional leaders I will be surrounded by at GNW. My personal goal is to use my knowledge to help others succeed, which makes this opportunity even more gratifying.
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When the price of a haircut increases, a. the demand for haircuts increases. b. the demand curve for haircuts shifts. d. the quantity demanded for haircuts decreases. e. the quantity demanded for haircuts increases.
When the price of a haircut increases, the quantity demanded for haircuts decreases. The correct option is e.
The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded for that good. This means that as the price of a good increases, the quantity demanded for that good decreases, and as the price of a good decreases, the quantity demanded for that good increases.
The demand curve for haircuts does not shift in this scenario, but rather there is a movement along the demand curve. The reason for this is that as the price of a good increases, consumers are less willing and able to purchase that good. This is because their income can only stretch so far, and they have to make trade-offs between different goods and services. When the price of a haircut increases, consumers may decide to spend their money on other things, such as food or clothing, which they view as more essential.
In the short run, a change in price will not significantly impact the supply of haircuts, as it takes time for barbers and hairdressers to adjust their prices and services. However, in the long run, an increase in price may incentivize more people to enter the hairdressing profession, which can increase the supply of haircuts and drive prices down again.
In conclusion, when the price of a haircut increases, the quantity demanded for haircuts decreases. This is because of the inverse relationship between the price of a good and the quantity demanded for that good, which is the law of demand. The demand curve for haircuts does not shift in this scenario, but rather there is a movement along the demand curve.
Thus, the correct option is e. the quantity demanded for haircuts increases.
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Use the graphs provided to predict what will happen to the equilibrium price and quantity of oranges if the following events take place Instruction: Depict how this event will affect the market of oranges by dragging the appropriate curve in the graph a. A study finds that a daily glass of orange juice reduces the risk of heart disease. Market for oranges P* Q* Quantity (oranges/week) reset Equilibrium price will increase and equilibrium quantity will decrease. Equilibrium price will decrease and equilibrium quantity will increase. Equilibrium price will increase and equilibrium quantity will increase. Equilibrium price will decrease and equilibrium quantity will decrease. b. The price of grapefruit falls drastically. Market for oranges Q* Quantity (oranges/week) reset Equilibrium price will decrease and equilibrium quantity will increase Equilibrium price will increase and equilibrium quantity will decrease. Equilibrium price will increase and equilibrium quantity will increase. Equilibrium price will decrease and equilibrium quantity will decrease c. Suppose the wage paid to orange pickers rises. Market for ora nges Quantity (oranges/week) reset What will happen to the equilibrium price and quantity of oranges? Equilibrium price will increase and equilibrium quantity will decrease Equilibrium price will decrease and equilibrium quantity will decrease. Equilibrium price will increase and equilibrium quantity will increase Equilibrium price will decrease and equilibrium quantity will increase. d. Suppose exceptionally good weather provides a much bigger than expected orange harvest. Market for oranges 0 Q* Quantity (oranges/week) reset What will happen to the equilibrium price and quantity of oranges? Equilibrium price will decrease and equilibrium quantity will increase Equilibrium price will decrease and equilibrium quantity will decrease. Equilibrium price will increase and equilibrium quantity will increase. Equilibrium price will increase and equilibrium quantity will decrease
Equilibrium price will increase and equilibrium quantity will increase.
Equilibrium price will decrease and equilibrium quantity will decrease.
Equilibrium price will increase and equilibrium quantity will decrease.
Equilibrium price will decrease and equilibrium quantity will increase.
a. A study finds that a daily glass of orange juice reduces the risk of heart disease.
The study will increase the demand for oranges as more people will want to consume orange juice to reduce the risk of heart disease. This will shift the demand curve to the right, resulting in a higher equilibrium price and quantity.
b. The price of grapefruit falls drastically.
The decrease in the price of grapefruit will make it a more attractive substitute for oranges, causing a decrease in the demand for oranges. This will shift the demand curve to the left, resulting in a lower equilibrium price and quantity.
c. Suppose the wage paid to orange pickers rises.
The increase in wages will increase the cost of production for orange growers, causing a decrease in the supply of oranges. This will shift the supply curve to the left, resulting in a higher equilibrium price and lower equilibrium quantity.
d. Suppose exceptionally good weather provides a much bigger than expected orange harvest.
The good weather will increase the supply of oranges, causing a shift in the supply curve to the right. This will result in a lower equilibrium price and higher equilibrium quantity.
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In determining why, a firm becomes multinational there are many reasons. One reason is that the firm is a market seeker. Which of the following is NOT a reason why market-seeking firms produce in foreign countries?
A. To export to foreign markets
B. political safety and small likelihood of government expropriation of assets
C. All of the above are market-seeking activities.
D. Satisfaction of local demand in the foreign country
The correct answer is D. Satisfaction of local demand in the foreign country is not a reason why market-seeking firms produce in foreign countries
Market-seeking firms produce in foreign countries to export to foreign markets, take advantage of lower production costs, or gain access to political safety and a small likelihood of government expropriation of assets.
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An organization has been accused of disparate impact
discrimination through the use of a statistical argument. Provide
two alternative explanations for a statistically unbalanced work
force that are n
Under unequal impact discrimination, there are two alternative explanations for a statistically unbalanced workforce that are not due to unlawful discrimination:
Education and ExperienceAvailability of CandidatesEducation and Experience: The unbalanced workforce may be due to differences in education and experience levels among different groups of job candidates. For example, if certain protected groups have historically had limited access to education or training, they may be underrepresented in certain fields or positions that require specific qualifications.
Availability of Candidates: The unbalanced workforce may be due to differences in the availability of job candidates from different groups. For example, if certain groups are more likely to live in areas with high unemployment or limited job opportunities, they may be underrepresented in the organization's workforce.
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Question complete:
An organization has been accused of disparate impact discrimination through the use of a statistical argument. Provide two alternative explanations for a statistically unbalanced work force that are not due to illegal discrimination.
How would you ensure that all data collected were routinely
analyzed and synthesized?
To ensure that all data collected is routinely analyzed and synthesized, it is essential to establish a clear and structured data management plan. Here are some steps that can be taken to achieve this:
Define data collection methodsEstablish a data storage systemDevelop data analysis planAssign roles and responsibilitiesEstablish a timelineRegularly review progressExplanation of the steps to ensure that all data collected is routinely analyzed and synthesized:
Define data collection methods: Determine the data collection methods that will be used, such as surveys, interviews, observations, or secondary data sources. Establish protocols for data collection, including quality control measures to ensure data accuracy and completeness.Establish a data storage system: Develop a system for storing data that is secure, accessible, and organized. Consider using cloud-based storage or a database management system to facilitate data sharing and collaboration.Develop data analysis plan: Develop a plan for analyzing the data, including the software or tools that will be used, and the criteria for data synthesis. Define the analysis process and establish protocols for data cleaning, transformation, and normalization.Assign roles and responsibilities: Clearly define the roles and responsibilities of team members involved in data collection and analysis. Ensure that team members are trained and have the necessary skills to perform their tasks effectively.Establish a timeline: Develop a timeline for data analysis and synthesis, taking into account the project's objectives and the volume and complexity of the data. Ensure that milestones are established and met to avoid delays.Regularly review progress: Review progress regularly to ensure that data is being collected and analyzed according to the established plan. Establish protocols for data validation and verification to ensure that the results are reliable and valid.Learn more about data collected:
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procedures requiring that the recording of asset transactions be separated from the custody of those assets:
The accounting procedures that require that the recording of asset transactions be separated from the custody of those assets are called internal control.
Internal control refers to the accounting procedures designed by a company to ensure that financial transactions are processed in an accurate, secure, and efficient manner.
The following are the most common types of internal control procedures:
Separation of duties: Asset custody and asset recordkeeping should be separated to ensure that one person does not have complete control over a transaction's complete recording and processing.Monitoring of procedures: The accounting department should monitor accounting procedures to ensure that they are being followed appropriately.Authorization: Transactions should only be processed if authorized.Codes of conduct: A company should establish ethical and moral standards for employees to follow. This could include procedures for handling company resources, policies on inappropriate behavior, and so on.Security: A company should secure its assets to ensure that they are not lost, damaged, or stolen. This could include locking file cabinets or restricting access to sensitive data.The accounting department should regularly check internal controls to ensure that they are functioning correctly. They should look for any flaws in the system and make any necessary improvements. Companies that regularly review their internal controls are more likely to avoid fraud and other financial irregularities.
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Of the seven key principles of the theory of constraints, which is the first principal? A. every capital investment must be viewed from the perspective of its global impact product margin B. the focus should be on balancing capacity, not on balancing flow C. the focus should be on balancing flow, not on balancing capacity D. maximizing the output and efficiency of every resource is required to maximize the throughput of the entire system
The first principle of the Theory of Constraints is the focus should be on balancing flow, not on balancing capacity. (option C)
This principle suggests that in order to maximize the throughput of a system, the focus should be on identifying and eliminating bottlenecks that are limiting the flow of production, rather than on increasing the capacity of non-bottleneck resources.
The Theory of Constraints is a management philosophy developed by Dr. Eliyahu Goldratt, which emphasizes the importance of identifying and managing constraints that limit the performance of a system. The other six principles of the theory are:
Every capital investment must be viewed from the perspective of its global impact on product margin.The throughput of a system is limited by its bottleneck.An hour lost at a bottleneck is an hour lost for the entire system.Inventory is needed only where there is a constraint.The level of output of a system is determined by its bottleneck.Every employee in a company can be viewed as a part of a value-adding chain.Learn more about Theory of Constraints here:
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QUESTION 5
On 1January 2016, Hamududu bought a K100,000 5% bond for K95,000, incurring issues cost of
K2,000. Interest is received in arears. The bond will be redeemed at a premium of K5,960 over
nominal value on 31 December 2018. The effective rate of interest is 8%.
The fair value of the bond was as follows:
31/12/ 2016 K110,000
31/12/2017 K104,000
Required, explain with calculations, how the bond will been accounted for over relevant years
(30 marks
The fair value of bond at the end of the first year is K110,000, resulting in a fair value gain of K12,667.
What is fair value gain?Fair value gain refers to an increase in the value of an asset that is recognized as a result of changes in the market value of that asset. It typically applies to assets that are marked-to-market, such as financial instruments, which are revalued regularly based on current market prices. The fair value gain can result from a variety of factors, such as changes in interest rates, market volatility, or supply and demand conditions. It is important to note that fair value gains are not realized gains, meaning that the asset has not been sold, and the gain is only on paper until the asset is actually sold. Fair value gains are often used as a performance metric for investment portfolios, as they provide insight into how well the portfolio is performing relative to the market. However, it is important to consider the potential risks and uncertainties associated with fair value accounting when interpreting fair value gains.
Fair value gain= K110,000 - K97,333
= K12,667
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Imagine that you have just retired with a retirement account balance of $750,000. You plan to make a withdrawal from this account at the end of each of the next 25 years to support your lifestyle. Your financial advisor has suggested that a 6% annual rate of return would be a reasonable expectation for this account over the next 25 years. How much should you withdraw each year such that the account is depleted after the 25th, and final, withdrawal?
Now, suppose all the same facts from the previous question prevail, except that you wish to increase your withdrawal each year by 2% to offset increases in the cost of living.
a. First, what do we necessarily know about the size of the first yearly withdrawal, relative to that found in question 17? Will the first withdrawal be larger, smaller, or the same?
b. Exactly how much should be withdrawn in the first year?
c. How much will you withdraw in the second year?
The first yearly withdrawal Individual Retirement Accounts will be larger than the one found in question 17. The first year's withdrawal should be $45,000. The second year's withdrawal should be $46,200, which is calculated by multiplying the first year's withdrawal ($45,000) by the increase in the cost of living (2%).
Individual Retirement Accounts (IRAs) are a type of retirement savings account that allows individuals to save money for retirement in a tax-advantaged way. There are two main types of IRAs: traditional IRAs and Roth IRAs. With a traditional IRA, individuals can contribute pre-tax income, which reduces their taxable income for that year. The money in the account grows tax-deferred, meaning that no taxes are paid on the earnings until the money is withdrawn. Withdrawals from a traditional IRA are taxed as ordinary income.
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What is the best definition of a credit report?
A credit report is a detailed summary of an individual's credit history, including credit accounts, payment history, credit inquiries, and public records such as bankruptcies and tax liens. It is used by lenders, landlords, and other entities to evaluate an individual's creditworthiness and ability to repay debts. The report is compiled by credit reporting agencies, also known as credit bureaus, based on information obtained from creditors, public records, and other sources. The information on a credit report is used to calculate a credit score, which is a numerical representation of an individual's creditworthiness.
An individual's credit history, comprising credit accounts, payment history, credit inquiries, and public records like bankruptcies and tax liens, are all summarized in a credit report.
Lenders, landlords, and other organizations use it to assess a person's creditworthiness and capacity to pay back obligations. Credit reporting companies, commonly referred to as credit bureaus, generate the report using data gathered from creditors, public records, and other sources.
A credit score, which is a number that represents how creditworthy a person is, is created using the data on a credit report.
As a result, the significance of the best definition of a credit report are the aforementioned.
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How might the MEEI administrators use the information from the
split-cost accounting system
The MEEI administrators can use the information from the split-cost accounting system to determine the costs associated with different departments or products, monitor expenses, and make informed decision.
How might the MEEI administrators use the information from the split-cost accounting system?The MEEI administrators can use the information from the split-cost accounting system to determine the costs associated with different departments or products, monitor expenses, and make informed decisions.
For example, if the MEEI administrators are trying to decide whether to invest in a new department or product, they can use the information from the split-cost accounting system to determine the costs associated with that department or product. They can also use the system to monitor expenses and identify areas where cost savings can be achieved.
The split-cost accounting system can also help the MEEI administrators to identify inefficiencies in their operations. By analyzing the costs associated with each department or product, they can identify areas where improvements can be made, such as reducing waste, increasing productivity, or improving quality.
The split-cost accounting system can also help the MEEI administrators to make informed decisions about resource allocation. By analyzing the costs associated with each department or product, they can determine which areas of the organization are most profitable and which areas require additional investment or resources.
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Help
(Stock dividends)
In the spring of 2016, the CFO of HTPL Distributing Company decided to distribute a stock dividend to its shareholders.Specifically, the CFO proposed that the company pay 0.050.05 shares of stock to the holders of each share of common stock such that the holder of 1,000 shares of stock would receive an additional 5050 shares of common stock. a. If the firm had total net income for the year of $ 12 comma 000 comma 000$12,000,000 and had 21 comma 000 comma 00021,000,000 shares of common stock outstanding before the stock dividend, what was the firm's earnings per share?
b. After paying the stock dividend, what was the firm's earnings per share?
c. If you owned 1,000 shares of stock before the stock dividend, how many dollars of earnings did the firm earn from your 1,000-share investment? After the stock dividend waspaid, how many dollars of earnings did the firm earn on your larger share holdings? What effect would you expect from the payment of the stock dividend on your total investment in the firm?
a. To calculate the earnings per share before the stock dividend, we divide the total net income of the firm by the number of shares outstanding:
Earnings per share before the stock dividend = $12,000,000 / 21,000,000 = $0.57 per share
b. After the stock dividend, the total number of shares outstanding will increase by 0.05 shares for each share owned, so the new number of shares outstanding will be:
New number of shares outstanding = 21,000,000 + (0.05 * 21,000,000) = 22,050,000
To calculate the new earnings per share, we divide the total net income of the firm by the new number of shares outstanding:
Earnings per share after the stock dividend = $12,000,000 / 22,050,000 = $0.54 per share
c. Before the stock dividend, the earnings of the firm from your 1,000-share investment would be:
Earnings from 1,000 shares = 1,000 shares x $0.57 per share = $570
After the stock dividend, you would own 1,000 + (0.05 * 1,000) = 1,050 shares. The earnings from your larger share holdings would be:
Earnings from 1,050 shares = 1,050 shares x $0.54 per share = $567
The payment of the stock dividend would not affect the total earnings of the firm or the total value of your investment in the firm. However, the total number of shares outstanding would increase, so the value of each share would decrease proportionally. Therefore, the value of your investment per share would decrease, but the total value of your investment would remain the same.
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Based on the nature, the products can be classified into goods and services. However, regardless of whether the end product is a good or service, all activities that happen within the scope of organization are often viewed as a set of operations. Mr. Quarts and his team are expert in marketing but they want to open a manufacturing firms producing textile and garments in Arusha. They decided to consult you as MBA graduate studied Operations Management for advice on decisions they will make to ensure the plant is in operations in order to attain competitive advantage and become sustainable in this industry.
REQUIRED:
i. Describe Operations Management using Input- Process Output Model
ii. By giving examples, describe A ny F ive (5) critical decisions that Operations M anagers must have to
make in their organizations .
iii. Advise them on characteristics that will determine the sustainability of a this new plant distinctive competency:
iv. Explain why Operations Management(OM) decisions are strategic decisions
i. Operations Management is the process of converting inputs into outputs using various resources such as labor, machines, and materials. It involves planning, organizing, controlling, and supervising activities to produce goods and services that meet customer needs.
The Input-Process-Output (IPO) model provides a framework for understanding the basic elements of operations management, which include inputs such as raw materials, machines, and labor; the process of transforming inputs into outputs; and outputs such as finished goods or services.
ii. Operations Managers must make critical decisions in their organizations, including decisions related to product design, process design, capacity planning, quality control, and inventory management.
For example, product design decisions may involve selecting the right materials and designing products that are easy to manufacture and meet customer needs. Process design decisions may involve determining the most efficient way to transform inputs into outputs, such as using lean manufacturing techniques.
Capacity planning decisions may involve forecasting demand and determining the optimal level of resources needed to meet that demand.
Quality control decisions may involve implementing quality control processes to ensure that products meet customer expectations. Inventory management decisions may involve determining the optimal level of inventory to hold in order to meet demand while minimizing costs.
iii. Sustainability in manufacturing requires a focus on reducing waste and improving efficiency, as well as investing in technology and innovation.
To achieve distinctive competency, the plant should focus on producing high-quality products that meet customer needs while minimizing waste and maximizing efficiency. They should also focus on implementing sustainable practices, such as reducing energy consumption and using environmentally friendly materials.
iv. Operations Management decisions are strategic decisions because they impact the overall performance of the organization.
These decisions determine the effectiveness and efficiency of the production process, which in turn affects the ability of the organization to meet customer needs and achieve competitive advantage.
Strategic decisions related to operations management can include selecting the right technology, investing in training and development, and implementing quality control processes to improve the overall quality of products and services.
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A company manufactures and sells two type of products A and B. The total production cost of each unit is 200$ and 150$ respectively. Each unit A yield profit 20$ and each unit B yield profit 15$ on selling. The total demand of manufacturing is 500 units monthly and the production budget for month is 50,000$. How many units can manufacture a company in order to maximized profit on monthly sales from unit A and B?
To maximize profit, we need to maximize the revenue and minimize the cost.
Revenue = (Profit per unit of A × x) + (Profit per unit of B × y)
Revenue = 20x + 15y
From the production budget equation:
200x + 150y = 50,000
y = (50,000 - 200x) / 150
Substituting y in the revenue equation:
Revenue = 20x + 15[(50,000 - 200x) / 150]
Revenue = 5000
To maximize the revenue and profit, the company should produce the maximum possible quantity of products A and B.
Therefore, to maximize profit, the company should manufacture 500 units of product A and no units of product B.
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McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $840 per set and have a variable cost of $440 per set. The company has spent $154,000 for a marketing study that determined the company will sell 58,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,900 sets of its high-priced clubs. The high-priced clubs sell at $1,140 and have variable costs of $740. The company will also increase sales of its cheap clubs by 11,400 sets. The cheap clubs sell for $480 and have variable costs of $250 per set. The fixed costs each year will be $9,140,000. The company has also spent $1,150,000 on research and development for the new clubs. The plant and equipment required will cost $28,980,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,340,000 that will be returned at the end of the project. The tax rate is 38 percent, and the cost of capital is 10 percent.
Calculate the payback period. (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.)
Calculate the NPV. (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Calculate the IRR. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Payback Period:
The payback period refers to the period of time which the cash inflows will equal the cash outflow. This is calculated by adding back the cash inflow until the difference is zero.McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $840 per set and have a variable cost of $440 per set. The company has spent $154,000 for a marketing study that determined the company will sell 58,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,900 sets of its high-priced clubs. The high-priced clubs sell at $1,140 and have variable costs of $740. The company will also increase sales of its cheap clubs by 11,400 sets. The cheap clubs sell for $480 and have variable costs of $250 per set. The fixed costs each year will be $9,140,000. The company has also spent $1,150,000 on research and development for the new clubs. The plant and equipment required will cost $28,980,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,340,000 that will be returned at the end of the project. The tax rate is 38 percent, and the cost of capital is 10 percent.
Calculate the payback period. (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.)
Calculate the NPV. (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Calculate the IRR. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Payback Period:
The payback period refers to the period of time which the cash inflows will equal the cash outflow. This is calculated by adding back the cash inflow until the difference is zero.
The expression "payback time" alludes to how many years are expected to recover the underlying money-related cost. It is, as such, the time span that a machine, office, or other speculation has created sufficient overall gain to pay its venture costs.
To calculate the payback period, we need to determine how long it will take for the project's cash inflows to equal the initial investment.
Year 0 cash flow: -$40,470,000 ($28,980,000 + $1,340,000 + $9,140,000 + $1,150,000 - $154,000)
Year 1 cash flow: $18,320,000 [(58,000 - 9,900) x ($840 - $440) + 11,400 x ($480 - $250)]
Year 2 cash flow: $18,320,000
Year 3 cash flow: $18,320,000
Year 4 cash flow: $18,320,000
Year 5 cash flow: $18,320,000
Year 6 cash flow: $18,320,000
Year 7 cash flow: $18,320,000 + $40,260,000 ($1,140 - $740) x 9,900 x (1 - 0.38)
Cumulative cash flow at the end of year 3: -$5,510,000 (Year 0 cash flow + Year 1 cash flow + Year 2 cash flow + Year 3 cash flow)
Payback period = 3 + $5,510,000 / $18,320,000 = 3.300 years
To calculate the NPV, we discount each cash flow to its present value using a discount rate of 10 per cent and then sum them up.
NPV = -$40,470,000 + $18,320,000 / (1 + 0.1)^1 + $18,320,000 / (1 + 0.1)^2 + $18,320,000 / (1 + 0.1)^3 + $18,320,000 / (1 + 0.1)^4 + $18,320,000 / (1 + 0.1)^5 + $18,320,000 / (1 + 0.1)^6 + ($18,320,000 + $40,260,000) / (1 + 0.1)^7
NPV = $4,226,650.43
To calculate the IRR, we need to find the discount rate that makes the NPV equal to zero. We can use a financial calculator or spreadsheet software to solve for the IRR, which is found to be 16.03 per cent.
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ou receive $125,000 in year 1 for a job to be started and completed in year 2. However, you purchase materials and supplies to prepare for the upcoming job. Materials and supplies purchased in year 1 cost $60,000. In year 2 you determine that you would need to purchase an additional $30,000 in supplies.
Determine the profit for year 1 and 2 under both accrual and cash accounting (10 Marks):
Cash Basis Accrual Basis
Yr1 Yr2 Yr1 Yr2
Revenue ______ ___0____ __0___ _______
Supplies _______ ________ __0___ _______
Profit/Loss _______ ________ __0____ ________
Cash Basis: Yr1: Revenue: $125,000; Supplies: -$60,000; Profit/Loss: $65,000 Yr2: Revenue: $0; Supplies: -$30,000; Profit/Loss: -$30,000.
What is Revenue?Revenue is the total money earned or generated from the sale of goods, services, and other activities of a company or organization. It is the income that a business receives from its normal business activities, usually from the sale of goods and services to customers.
Accrual Basis:
Yr1: Revenue: $0; Supplies: -$60,000; Profit/Loss: -$60,000
Yr2: Revenue: $125,000; Supplies: -$30,000; Profit/Loss: $95,000
Under the cash basis, revenue and expenses are only recognized when cash is exchanged. This means that revenue is not recognized until cash is received in year 2. Additionally, expenses are only recognized when cash is paid. This means that supplies purchased in year 1 are not recognized until cash is paid, and supplies purchased in year 2 are not recognized until cash is paid in that year.
Under the accrual basis, revenue and expenses are recognized when the transaction is completed, regardless of when cash is exchanged. This means that revenue is recognized in year 2 once the job is completed, even though cash is not exchanged until the following year. Additionally, expenses are recognized in year 1 for supplies purchased, even though cash is not paid until the following year.
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The Ford Motor Company has investing $6 billion to build a "world car," the midsize Mondeo. The car was designed in the U.S., Germany, and the United Kingdom to be adaptable to any market in the world. Ford is a(n) _____ company
The Ford Motor Company has investing $6 billion to build a "world car," the midsize Mondeo. The car was designed in the U.S., Germany, and the United Kingdom to be adaptable to any market in the world.The Ford Motor Company is a multinational company.
This is because it operates and has investments in multiple countries, and is involved in the design, manufacturing, and marketing of automobiles on a global scale. The fact that the Mondeo was designed in the U.S., Germany, and the United Kingdom, and is meant to be adaptable to any market in the world, further supports the classification of Ford as a multinational company.multinational corporation (MNC), also called transnational corporation, any corporation that is registered and operates in more than one country at a time. Generally the corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in other countries.
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entrepreneurs look at five basic ways of opportunity for business ideas. which is not one of those five? raising prices in an existing market producing a product more cheaply finding new ways to use existing technology developing a new market for an existing product
Raising prices in an existing market is not one of the five basic ways entrepreneurs look for business ideas.
The five ways are: producing a product more cheaply, finding new ways to use existing technology, developing a new market for an existing product, entering an existing market with a new product, and creating an entirely new market.
Producing a product more cheaply involves finding a way to produce the same product with fewer resources, whether it be labor, materials, or both. Finding new ways to use existing technology can be accomplished by applying a technology to a different problem or industry. Developing a new market for an existing product is creating a demand for a product where there was none previously. Entering an existing market with a new product is introducing a unique product or service to a market already in existence. Finally, creating an entirely new market is making a product or service that is completely new and has never existed before.
Raising prices in an existing market, however, does not involve creating a new product or service, or creating a new market. Therefore, it is not one of the five basic ways entrepreneurs look for business ideas.
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The Sterling Tire Company’s income statement for 20XX is as
follows:
STERLING TIRE COMPANY
Income Statement
Year ended December 31, 20XX
Sales (20,000 tires
at $80 each)
$1,600,000
Less: Variable costs (20,000 tires at $55) : 1,100,000
Contribution margin 500,000
Less: Fixed costs 300,000
Earnings before interest and taxes (EBIT) 200,000
Interest expense 75,000
Earnings before taxes (EBT) 125,000 Income tax expense (30%) 37,500 Earnings after taxes (EAT) $ 87,500
Given this income statement, compute the following: a. Degree of operating leverage. (Round the final answer to 2 decimal places.) DOL____. b. Degree of financial leverage. (Round the final answer to 2 decimal places.)
The Degree of operating leverage, given Sterling Tire Company’s income statement is 2. 5.
The Degree of financial leverage, would be 1. 6.
How to find the Degree of operating leverage ?The Degree of Operating Leverage for Sterling Tire Company’s income statement can be found by the formula:
= Contribution margin / EBIT
= 500, 000 / 200, 000
= 2. 5
How to find the Degree of Financial Leverage ?The Degree of Financial Leverage can be found by the formula:
= EBIT / ( EBIT - Interest )
= 200, 000 / ( 200, 000 - 75, 000 )
= 1. 6
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Discuss the problem of assigning weights
and estimating correlations in QFD. Suggest a way to solve this
problem.
The problem of assigning weights and estimating correlations in QFD. A possible way to solve this problem is to utilize a multiple regression technique.
In QFD, the problem of assigning weights and estimating correlations in QFD can be a major issue that requires attention. When weights are assigned, the correct importance and priority must be provided to each quality characteristic that is under consideration. If we use the weights inappropriately, it may lead to an incorrect QFD result or an unreliable result. The correlation coefficients, on the other hand, can be difficult to estimate.
Since there are so many factors to consider in a product, and a single factor may have a strong impact on several other factors. Therefore, assigning weights and estimating correlations in QFD is a major challenge. A possible way to solve this problem is to utilize a multiple regression technique. This technique can help us estimate the correlation coefficients and assign the proper weights based on the quality characteristics.
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What are the 5 disciplines of the learning organization?
The five disciplines of the learning organization are systems thinking, personal mastery, mental models, building shared vision, and team learning.
What is a learning organization?A learning organization is a group of people who work together to continuously improve the organization's ability to develop new insights, transform beliefs, and enhance performance. The concept was introduced by Peter Senge in his book The Fifth Discipline, which outlines five disciplines that he believes are essential for creating a learning organization.
The five disciplines are as follows:Systems Thinking: This discipline involves understanding the underlying systems that shape how organizations behave. It involves seeing the connections between different parts of the organization, and understanding how changes in one area can affect the entire system.
Personal Mastery: Personal mastery involves a commitment to lifelong learning and personal growth. It means developing a clear vision of one's personal goals and aligning one's actions with that vision.
Mental Models: Mental models are the assumptions, beliefs, and values that shape how people view the world. This discipline involves recognizing and challenging one's own mental models, as well as those of others.
Building Shared Vision: This discipline involves creating a shared vision that motivates people to work together towards a common goal. It requires developing a shared understanding of what the organization is trying to achieve, and creating a sense of ownership and commitment among team members.
Team Learning: This discipline involves creating a culture of continuous learning and improvement within the organization. It means developing the skills and processes necessary for teams to work together effectively, share knowledge and experience, and learn from each other.
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which of the following statements are true? check all that apply. the natural unemployment rate minus the structural unemployment rate equals the frictional unemployment rate. the actual unemployment rate is equal to the sum of the frictional plus structural plus cyclical unemployment rates. the actual unemployment rate is zero when the economy is operating at full employment.
There are two statements that are true. The statements that are true include the natural unemployment rate minus the structural unemployment rate equals the frictional unemployment rate. The actual unemployment rate is equal to the sum of the frictional plus structural plus cyclical unemployment rates.
The natural unemployment rate minus the structural unemployment rate equals the frictional unemployment rate: This statement is true. The natural unemployment rate is the rate of unemployment that occurs when the labor market is in equilibrium. It is the rate of unemployment that prevails when the economy is at full employment.
Structural unemployment is a long-term and persistent type of unemployment caused by changes in the structure of the economy. It arises from the mismatch between the skills of the workforce and the skills required by the employers. Frictional unemployment, on the other hand, is the short-term unemployment that arises due to the time lag between the job search and the job offer.
The actual unemployment rate is equal to the sum of the frictional plus structural plus cyclical unemployment rates: This statement is also true. The actual unemployment rate is the rate of unemployment that is actually observed in the economy. It is the sum of all types of unemployment.
Cyclical unemployment is the type of unemployment that arises due to the fluctuations in the business cycle. It is the unemployment that occurs when the economy is in a recession or a slowdown. Therefore, the actual unemployment rate is equal to the sum of frictional, structural, and cyclical unemployment rates.
The actual unemployment rate is zero when the economy is operating at full employment: This statement is false. The actual unemployment rate cannot be zero when the economy is operating at full employment. Full employment is the condition when all those who are willing and able to work are employed. However, there may still be some frictional and structural unemployment even at full employment.
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a project with an initial investment of $446,900 will generate equal annual cash flows over its 8-year life. the project has a required return of 8.7 percent. what is the minimum annual cash flow required to accept the project?
$78,229.08 is the minimum annual cash flow required to accept the project.
The following is the process for determining it:
Calculation: Initial investment ($446,900); life of the project (8 years); Required return (8.7%).
Since the project generates equal annual cash flows over its 8-year life, we may use the annuity formula to calculate the annual cash flow.
Annuity PV formula:
PV = P {1 - (1 + r / n) ^ - nt } / (r / n)
where PV = Present value of the project;
P = Amount of annual cash flow;
r = Required rate of return;
n = Number of times the cash flow is compounded per year; and
t = Time (years).
Substituting the given values in the formula, we get:
PV = $446,900,
r = 8.7%,
n = 1, and
t = 8
We must now calculate the annual cash flow.
The calculation is as follows:
446900 = P {1 - (1 + 8.7/1) ^ -1(8)} / (8.7/1)
P = 78,229.08
The annual cash flow required to accept the project is $78,229.08.
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At the terminal of Gotham City airport there are 10 arrival gates named A through J. Luggage of arriving flights is unloaded at these gates and moved to a passenger luggage pick-up point. The quantities of luggage arriving per day at gates A through J are 3600, 2500, 1800, 2200, 1000, 4500, 5600, 1400, 1600 and 1000, respectively. A pictorial representation of the terminal that shows gates' coordinates is given below: Gotham City airport terminal 20 15- Y 10 XD H 5 A. Terminal building WJ 10 20 25 Where should the passenger luggage pick-up point be located in order to minimize movement of luggage?
The optimal location for the passenger luggage pick-up point is at coordinates (15, 15). By locating the pick-up point at this position, the movement of luggage would be minimized because it is in the center of the arrival gates and therefore the same distance from all gates.
To illustrate, the distance between the pick-up point and gate A would be the same as the distance between the pick-up point and gate J (10 units). Similarly, the distance between the pick-up point and gate H would be the same as the distance between the pick-up point and gate W (10 units). Moreover, the distance between the pick-up point and gates X, Y and D would be 5 units.
Theoretically, the sum of the distances between the pick-up point and all 10 arrival gates would be the same for any position within the terminal building. Therefore, the pick-up point should be located at the point which is the same distance from all 10 gates, in order to minimize the movement of luggage. In this case, the point at coordinates (15, 15) is the optimal solution.
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Supervisors being assessed by their superiors or their
subordinates after a training would evaluate which of the four
criteria?
a) Learning.
b) Behavior.
c) Reactions.
d) Results.
The supervisors being assessed by their superiors or subordinates after training would evaluate all four criteria, which are learning, behavior, reactions, and results.
Learning refers to the acquisition of new knowledge and skills as a result of training. Behavior refers to the changes in the supervisor's actions and habits as a result of the training.
Reactions refer to the supervisor's immediate response and feedback to the training. Results refer to the impact of the training on the supervisor's job performance, such as increased productivity or improved quality of work.
All of these criteria are important for assessing the effectiveness of training and the supervisor's ability to apply what they have learned in their work. Evaluating all four criteria ensures a comprehensive assessment of the training's impact on the supervisor and their ability to improve their performance.
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Supply management must maintain a number of communication flows and linkages between other key groups within and external to the organisation. Explain GM's supply management relationships with internal linkages, within the organisation as well as external linkages that have important in avoiding the mistakes in supply selection
Supply management is a critical aspect of any organization, as it involves maintaining communication flows and linkages between key groups within and external to the organization. General Motors (GM) is no exception, and their supply management relationships play a vital role in avoiding mistakes in supply selection.
GM's supply management relationships with internal linkages include managing the cost of materials, communication between the different departments, and adherence to company policies and regulations.
External linkages involve building a network of suppliers, both long-term and short-term, that can deliver on GM's quality and delivery requirements. This includes negotiations and contracts that guarantee a reliable source of materials and services.
GM also works with external organizations to ensure best practices in terms of supply chain management. This helps to reduce mistakes in supply selection by ensuring that proper procedures and protocols are followed.
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