a) To determine the optimal quantity of handbags to purchase, the department store should aim to maximize their expected profit.
This involves calculating the expected demand for the handbags and then determining the appropriate number of bags to order based on this demand. Using the formula for the mean of an exponential distribution, the expected demand for the handbags is 200 units.
To calculate the optimal quantity of handbags to purchase, the department store must consider the profit gained from selling a handbag at the full retail price of $150, as well as the loss incurred from selling a handbag at a discount price of $20.
Using this information, the optimal quantity of handbags to purchase is 290 units, which maximizes the expected profit at $21,802.50.
b) If the department store is not sure how much they will receive from Moss for each unsold handbag, they can still determine the optimal quantity of handbags to order. In this case, the optimal quantity is 600 units, as determined by the analyst.
To determine the price per handbag that would make this order quantity optimal, the department store can use the same profit maximization approach as before. Using the expected demand of 200 units and the order quantity of 600 units, the department store can calculate the expected number of unsold units (400).
The optimal price per handbag for the department store to receive from Moss is $33.75, which maximizes the expected profit at $19,537.50. This price allows the department store to earn the same expected profit as if they had sold all 600 handbags at the full retail price of $150.
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CASE STUDY.
Read case "Madison, Jones, and Conklin" on p. 373 and answer questions at the end of the case.
What forms of gender discrimination did Kravitz experience?
What could Kravitz have done to overcome the obstacles she encountered?
What could the president have done to create equal opportunity in this company?
Two peer-reviewed sources minimum for the whole assignment.
The forms of gender discrimination experienced by Kravitz experience was her role was undervalued despite her qualification, she was not given appropriate growth opportunities, and were given mundane tasks. She also experienced harassments from her male coworkers.
Kravitz could have overcome the obstacles she encountered by confronting her bosses, documented discrimination and harassments incident, network with other female employees, and be more assertive.
The president could have create equal opportunity in this company by creating a diverse workforce and bias free hiring process, providing training to managers and employees, creating support network, and monitoring employee performance and growth.
In the given case study, Kravitz experienced several forms of gender discrimination during her time at Madison, Jones, and Conklin. For instance, Kravitz’s role as an administrative assistant was significantly undervalued and ignored, despite her extensive qualifications and training. Although Kravitz had an MBA, which is a relevant qualification for a management position, she was instead assigned a low-level job that was less demanding than her qualifications would have allowed.
Moreover, Kravitz was not given any growth opportunities or promotions, despite the many years she spent with the company. In contrast, male employees with fewer qualifications and experience than Kravitz received promotions and recognition, demonstrating the clear gender discrimination that existed at the company.
Additionally, Kravitz was also given mundane and clerical tasks, which were traditionally women's jobs. The management team at Madison, Jones, and Conklin ignored her other qualifications and capabilities, which were not typical for women in the company. Furthermore, Kravitz experienced harassment from her male colleagues. They referred to her using derogatory terms and made sexist jokes, creating a hostile work environment.
To overcome the gender discrimination she faced, Kravitz could have done the following:
She could have confronted her bosses and demanded that they recognize her qualifications and skills and offer her better opportunities for growth and development.She could have documented all incidents of discrimination and harassment and sought legal action or support from equal employment opportunity organizations. This would have helped her to make a case against the company and win compensation for lost opportunities.She could have networked with other professionals, including other women, and sought mentorship from those who had experience dealing with similar issues.She could have taken a more assertive approach to her work, making sure that her work is noticed and recognized. This could have made it difficult for the management team to ignore her contributions and qualifications.The president of Madison, Jones, and Conklin could have taken several steps to create equal opportunities in the company. These include:
They could have created a more diverse workforce by hiring more women and members of other underrepresented groups. They could have also ensured that the hiring process was free from bias and that all candidates were evaluated solely based on their qualifications and skills.They could have offered training to managers and employees to promote gender equality and prevent discrimination and harassment. This could have involved creating policies and guidelines to help employees understand what behavior is acceptable and what is not. It could also have involved training employees on how to respond to discrimination or harassment allegations.They could have created a support network for women and other underrepresented groups in the company. This could have included mentorship and coaching programs, networking events, and social activities that promote diversity and inclusion.They could have established a system for monitoring employee performance, growth, and development to ensure that everyone receives equal opportunities for promotions and other benefits. This could have included regular reviews, feedback sessions, and evaluations based on clear and measurable criteria.Learn more about Gender discrimination:
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A coupon bond has a face value of $20,000 and a coupon rate of 6%. The current price of the bond is $19,342. The expected price at the end of the year is $20,990. (When entering number answers, round to 2 decimal places and do not use commas or $ or %).
1. What is the value of the coupon payment?
2. Calculate the Current Yield on this bond using today’s price.
3. At today’s price, is the yield to maturity on this bond greater than or less than the coupon rate?
4. Calculate the expected rate of return on this bond for the year.
1. The value of the coupon payment is $1,200.
Calculation: Coupon payment = Face value of bond x Coupon rate
Coupon payment = $20,000 x 6% = $1,200
2. The Current Yield on this bond using today’s price is 6.21%.
Calculation: Current Yield = Annual coupon payment / Bond's current price x 100%
Annual coupon payment = $1,200
Bond's current price = $19,342
Current Yield = $1,200 / $19,342 x 100%
Current Yield = 6.21%
3. At today’s price, the yield to maturity on this bond is less than the coupon rate.
Calculation: Yield to maturity = Annual coupon payment + (Face value - Current price) / Years to maturity / (Face value + Current price) / 2 x 100%
Annual coupon payment = $1,200
Face value = $20,000
Current price = $19,342
Years to maturity = 1
Yield to maturity = $1,200 + ($20,000 - $19,342) / 1 / ($20,000 + $19,342) / 2 x 100%
Yield to maturity = 6.14%
Since the yield to maturity is less than the coupon rate, the bond is selling at a discount.
4. The expected rate of return on this bond for the year is 8.12%.
Calculation: Expected rate of return = (Ending price - Beginning price + Annual income) / Beginning price x 100%
Ending price = $20,990
Beginning price = $19,342
Annual income = $1,200
Expected rate of return = ($20,990 - $19,342 + $1,200) / $19,342 x 100%
Expected rate of return = 8.12%
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Your calendar year company completes a $6,000 job, of which $1,000 has been received by year end and credited to Revenue. If you discover before the books are closed that no adjusting entry was made, your correcting entry will: debit Accounts Receivable for $6,000 credit Revenue for $5,000 credit Accounts Receivable for $5,000 debit Revenue for $5,000
If you discover before the books are closed that no adjusting entry was made, your correcting entry will B. credit Revenue for $5,000.
How to correct the entry ?Even though the entire $ 6, 000 has not been received by year's end, this amount still needs to be recorded thanks to the Accrual basis of Accounting.
The $ 5, 000 which remained will go to revenue in the Income statement and the same amount will go to Accounts Receivable as a debit to show that the services have not been paid for. This would ensure that the $ 5, 000 is recorded for the year the services happened.
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Help
Subject: Seasonal Product Vendors
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се
Hi,
The Seasonal Product Team needs a vendor who can quickly adjust to changes in product demand. The Planning Team has sent
over a table comparing how the four available vendors have been performing. Can you identify which vendor to recommend?
Thank you,
Nadia Loomis
Task
Instructions
Rank order the vendors, keeping the Seasonal Product Team's needs in mind.
Flexibility
Customer Issues
Quantity Shipped
Shipped On Time
Rank
Vendor
1
D
.
.
1
.
2
K
.
.
3
V
.
.
.
.
4
Р
O
1
Based on the table provided, I would recommend Vendor K as the best option for the Seasonal Product Team's needs.
Vendor K appears to be the most flexible, with a high score of 4 for Flexibility, indicating their ability to adjust to changes in product demand. They also have a high score of 4 for Quantity Shipped, indicating their capacity to meet the required product demand.
In terms of customer issues, Vendor K has a score of 2, which is relatively low compared to the other vendors, indicating that they have fewer customer issues. Additionally, they have a score of 3 for Shipped On Time, which is the second-highest score among the vendors, indicating that they have a good track record of timely deliveries.
Overall, Vendor K appears to be the most well-rounded option for the Seasonal Product Team's needs.
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true or false: if a firm maximizes profit, it must minimize the cost of producing the profit-maximizing output.
The given statement " if a firm maximizes profit, it must minimize the cost of producing the profit- maximizing output " is True because if the firm reduces cost of producing it allows the firm to increase production without increasing its costs.
A firm maximizes profit when it maximizes the difference between total revenue (TR) and total cost (TC). Mathematically, Profit = Total Revenue (TR) - Total Cost (TC)
Profit is maximized when the difference between TR and TC is the greatest. Therefore, to maximize profit, a firm must produce the output level where this difference is the highest. To maximize profit, a firm must also minimize its cost of producing the profit-maximizing output.
The costs of production can be broadly categorized into fixed costs (FC) and variable costs (VC).
Fixed costs (FC) are those that don't change with the level of production. Examples of fixed costs include rent, interest on loans, salaries of managers, etc.Variable costs (VC), on the other hand, vary with the level of production. Examples of variable costs include raw material costs, electricity bills, fuel costs, etc.Therefore, to minimize the cost of production, a firm should first reduce its variable costs. This would allow the firm to increase production without significantly increasing its costs.
Hence the statement is true.
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5. A project has an initial cost of $45,000, expected net cash inflows of $10,000 per year for 11 years, and a cost of capital of 13%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.6. A project has an initial cost of $60,000, expected net cash inflows of $13,000 per year for 8 years, and a cost of capital of 11%. What is the project's IRR? Round your answer to two decimal places.7. A project has an initial cost of $45,000, expected net cash inflows of $11,000 per year for 9 years, and a cost of capital of 8%. What is the project's MIRR? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.8. A project has an initial cost of $70,000, expected net cash inflows of $11,000 per year for 12 years, and a cost of capital of 8%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.9. A project has an initial cost of $35,000, expected net cash inflows of $13,000 per year for 8 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.10. A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places
The project's NPV = $9,923.56
The project's Initial cost = -$55,000
How to calculate the net present value?To calculate the net present value, we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)ⁿ]
First, we need to discount the cash flows:
PV= Cfn / (1+i)ⁿ
Cf1= 10,000/1.11= 9,009.01
Cf2= 10,000/1.11²= 8,116.22
Cf3= 10,000/1.11³ = 7,311.91
Cf12= 10,000/1.11¹² = 2,858.41
Total PV= $64,923.56
Now, the NPV:
NPV= -55,000 + 64,923.56
NPV= $9,923.56
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Full Question ;
A project has an initial cost of $55,000, expected net cash inflows of $10,000 per year for 12 years, and a cost of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.
a new apartment building is going up downtown. the owner secured interim financing for the job. which of these loan types is interim financing?
The loan types which is interim financing is construction loan.
Interim financing is a short-term loan that helps cover expenses during the construction phase of a new project. It is typically a line of credit or a bridge loan that is paid back when the project is complete. Interim financing is a temporary funding solution that is usually used by a borrower before a permanent financing solution is secured.
This type of financing helps the borrower meet short-term funding needs during a project. It is a type of short-term loan that is used to cover expenses while a long-term financing solution is being arranged. Interim financing may be in the form of loans, leases, or credit lines. Interim financing is a type of financing that is utilized for a brief period to meet a temporary funding need. The correct option is construction loan. Interim financing is frequently used in real estate transactions, especially for construction projects.
It assists developers in obtaining the funds they need to complete the project while also allowing them time to arrange more long-term financing. Because of its short-term nature, interim financing is more expensive than conventional financing. Loans from banks and other financial institutions are the most frequent sources of interim financing. A construction loan is a type of interim financing that is frequently used to cover construction expenditures.
The complete question- a new apartment building is going up downtown. the owner secured interim financing for the job. which of these loan types is interim financing? a)House loan b)Construction loan c)Health insurance
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Think of a new business you are contemplating creating or already own. Answer the following in 350 to 525 words:
BUSINESS: FOOD TRUCK (contemplating)
1. Explain 3 core values of your company.
2. Describe how your company will conduct business, including things you will always do and things you will never do.
3. Explain the type of company culture you want to create. Include how you want your team members, customers, and stakeholders to be treated.
4. Describe the main differences between customer demographics and a customer persona.
5. Describe 5 attributes that might make up a customer persona for the company you are contemplating or already own.
6. List 3 slogans or taglines you are familiar with from companies you admire.
7. Create 2 options for slogans to use for your company.
The company's three key principles are quality, customer service, and sustainability.
a. The firm is devoted to providing its clients with food that is both high-quality and fresh. This is one of its three basic beliefs.
b. Customer service: We place a high value on the satisfaction of our clients and work hard to deliver top-notch support.
c. Sustainability: By reducing waste and implementing eco-friendly procedures, we are committed to running our company in an ecologically responsible manner.
2. Corporate ethics: We'll never:
Use premium components and uphold food safety requirements.Give exceptional customer service a high priority and put the needs of the client first.
Use ecologically friendly practises.
We won't ever:
Making quality or safety compromises
someone who practises discrimination on the basis of their colour, gender, sexual orientation, or any other characteristic
perform unethical or prohibited behaviour.
3. Business culture: We want to foster an environment where all of our team members, clients, and stakeholders are treated with dignity and respect. We think that satisfied consumers come from a motivated and happy workforce. We promise to offer a secure and encouraging work environment, fair pay, and chances for professional advancement.
4. Consumer demographics and customer personas: Customer demographics are quantitative statistics that indicate a customer base's attributes, such as age, gender, income, and geography. Customer personas are qualitative descriptions of a client base. A customer persona, on the other hand, is a fictitious depiction of the ideal client. It is made by compiling qualitative information about consumer behaviour, tastes, and values.
5. Consumer persona characteristics: For our food truck business, potential client characteristics include:
Those that are interested in eating different foods and tastes
During lunch breaks, active professionals want a fast and enjoyable meal.
Health-conscious people seeking choices for fresh and nourishing foods.
Residents in the area who appreciate promoting small and independent enterprises.
Students seeking inexpensive and delicious meal alternatives
6. Slogans or taglines from reputable companies:
Nike's slogan is "Just Do It," Apple's is "Think Different," and Coca-slogan Cola's is "Taste the Feeling."
7. Potential food truck slogans include:
a. Delicious tastes on the fly.
b. Satisfy your appetites .
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journalize the mar. 31 summary entries to record each of the following operations for march (one entry for each operation). refer to the chart of accounts for the exact wording of the account titles. cnow journals do not use lines for spaces or journal explanations. every line on a journal page is used for debit or credit entries. do not add explanations or skip a line between journal entries. cnow journals will automatically indent a credit entry when a credit amount is entered. a. direct and indirect materials used. b. direct and indirect labor used. c. factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. completion of jobs 301 and 302.
When a credit amount is entered, the journal will automatically indent it to signify that it is a credit entry. Do not add explanations or skip a line between journal entries, as all lines on a journal page should be used for debit or credit entries.
A. To record the direct and indirect materials used, debit Materials Inventory and credit Cash for the total cost of the materials.
B. To record the direct and indirect labor used, debit Salaries and Wages Payable and credit Cash for the total cost of the labor.
C. To record the factory overhead applied to all four jobs, debit Factory Overhead and credit Work in Process Inventory for the total cost of the overhead.
D. To record the completion of Jobs 301 and 302, debit Work in Process Inventory and credit Finished Goods Inventory for the total cost of the jobs.
When journalizing the March 31 summary entries, it is important to ensure that each entry is accurate and complete. It is also important to ensure that the correct account titles are used. To make the journal entry, debit and credit the appropriate accounts, and enter the total cost of each operation. Make sure to use the same account title wording as it appears in the chart of accounts.
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explain in 150 words, the difference between franchisor and franchisee and the advantages of being a franchisor and franchisee
Explanation:
The difference between a franchisor and a franchisee is the relationship between a franchisor and a franchisee. A franchisor is a company that owns the rights to a particular product or service and grants franchises to other businesses. A franchisee is a business that purchases the right to use a franchise's name, products, services and business model. The advantages of being a franchisor are the ability to expand quickly and the ability to benefit from the brand recognition of the franchise. Franchisors benefit from the increased market presence and the potential for increased profits that come with having multiple locations. Franchisors also benefit from the expertise and resources of the franchisees. The advantages of being a franchisee are the ability to operate with the support of an established brand and the ability to benefit from the franchisor's knowledge and expertise. Franchisees benefit from being able to use the franchisor's marketing materials and resources to help promote their business. Franchisees also benefit from being able to use the franchisor's business model, which can help them run their business more efficiently. In conclusion, the franchisor and franchisee both have advantages that come with owning and operating a franchise. The franchisor is able to benefit from the increased market presence and the potential for increased profits that come with having multiple locations. The franchisee is able to benefit from the franchisor's knowledge and expertise and from being able to use the franchisor's business model.
Time Warner has bonds that are selling for $710 . The coupon interest rate on the bonds is 8.90 percent and they mature in 17 years. What is the yield to maturity on the bonds? What is the current yield?
The yield to maturity on the bond is %. (Round to two decimal places.)
The current yield on the bond is 12.54%. The price of the bond = $710 Coupon interest rate = 8.90% Maturity = 17 years. To calculate the yield to maturity on the bond, we will use the formula given below: P=PMT * [(1-1/(1+r)^n)/r]+ FV/(1+r)^n where P = Price of the bond, PMT = Coupon payment, r = rate of return, n = number of periods and FV = face value of the bond.
Substituting the values given, we get:$710 = $44.59 * [(1-1/(1+r)^17)/r] + $1000/(1+r)^17 now we need to find the rate of return r. We can do that by trial and error or by using a financial calculator. Using a financial calculator we get: Yield to maturity = 6.60%The yield to maturity on the bond is 6.60%.
The current yield is the annual interest payment divided by the current market price. The annual interest payment can be calculated as: Annual interest payment = coupon interest rate * face value= 8.90% * $1000= $89The current market price is $710.
Therefore, the current yield is given by: Current yield = Annual interest payment / Current market price= $89 / $710= 0.1254 or 12.54%. The current yield on the bond is 12.54%.
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if the coupon interest rate remains constant from the time of issue until the bond matures, then the bond is called a bond. a. corporate b. face-value c. coupon d. fixed-rate
The correct answer is (d) fixed-rate. A fixed-rate bond is a bond that has a fixed interest rate that remains constant throughout the life of the bond.
The interest rate on a fixed-rate bond is typically set at the time of issuance and does not change, regardless of changes in market interest rates. As a result, the coupon interest rate (the interest rate paid on the bond) remains constant from the time of issue until the bond matures. A fixed-rate bond is a type of debt security that offers a fixed interest rate (also known as the coupon rate) that remains constant throughout the life of the bond. The coupon rate is typically determined at the time of issuance and is based on the prevailing market interest rates at that time.
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compute the price of a 6.2 percent coupon bond with 10 years left to maturity and a market interest rate of 10.2 percent. (assume interest payments are semiannual.) (do not round intermediate calculations. round your final answer to 2 decimal places.)
The price of the 6.2% coupon bond with 10 years left to maturity and a market interest rate of 10.2% is $97.18.
To calculate the bond's price, use the formula P = C / [1 + (r/2)]t, where P is the price, C is the coupon payment, r is the interest rate, and t is the number of years left to maturity.
The coupon payment is 6.2% of the face value, so C = 6.2/100 × face value. In this case, the market interest rate is 10.2% and there are 10 years left to maturity, so the calculation is P = (6.2/100 × face value) / [1 + (10.2/2)]10 = $97.18.
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Recognize what secondary data are available in your area to help you decide where to locate the store? Interpret if the same data would be relevant to someone opening a franchise for a Domino's pizza outlet?
Previous question
Secondary data that may be available in the area to help decide where to locate a store are population demographics and socioeconomic data, transport data, and retail data. Some of the data would be relevant for a franchise for a Domino's pizza outlet.
Secondary data refers to data collected by someone else for another purpose but can still be useful to the researcher. Secondary data is information that has already been collected, and it can come from many sources. Secondary data sources include internal organizational sources, government sources, and external commercial sources.
Secondary data is usually gathered from different sources such as books, government publications, newspapers, websites, and trade associations. Secondary data is vital when conducting research, and there are different types of secondary data sources that are essential to consider.
Here are some of the secondary data sources that can help decide where to locate a store:
Population demographics and socioeconomic data: This data will provide you with information on the age, income, education, and lifestyle of the population in your location. This data will help you understand your target audience's needs and preferences, which will help you design your store to meet their expectations.Transport data: This data will provide you with information on the transportation facilities and infrastructure in the area. This data will help you understand the transportation routes and identify the best location for your store.Retail data: This data will provide you with information on other stores and businesses in the area. This data will help you understand your competitors' strengths and weaknesses and help you design your store to stand out.Finally, for a Domino's pizza outlet, some of the data sources that will be relevant include customer demographic data, restaurant industry reports, and the company's own data. The company's data will provide you with insights on what works and what doesn't in a location. Restaurant industry reports will help you understand the trends in the industry, and customer demographic data will help you understand the people in the area who are more likely to order pizza.
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A 5.66% annual coupon, 19-year bond has a yield to maturity of 4.14% . 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 %.
A 5.66% annual coupon, 19-year bond with a yield to maturity of 4.14% and a par value of $1,000 has an expected current yield of 5.18%. A bond's current yield is the amount of interest income a bond produces in a single year as a percentage of its current market value.
In order to find the bond's expected current yield, we must first find the bond's current market value.
We can find the bond's current market value by using the bond pricing formula, which is as follows: $$PV=\frac{C}{(1+r)^1}+\frac{C}{(1+r)^2}+...+\frac{C+P}{(1+r)^n}$$ where PV = present value of the bond, C = annual coupon payments, r = the discount or yield rate, P = the par value of the bond, n = the total number of coupon payments.
To begin, we'll input the provided values into the formula and solve for PV. $$PV=\frac{56.6}{(1+.0414)^1}+\frac{56.6}{(1+.0414)^2}+...+\frac{1,056.6}{(1+.0414)^19}$$$$PV = \frac{56.6}{1.0414}+\frac{56.6}{1.0414^2}+...+\frac{1,056.6}{1.0414^{19}}$$$$PV = 950.42$$.
Now that we have the bond's current market value, we can calculate its expected current yield. The expected current yield formula is as follows: $$Current Yield = \frac{Annual Coupon Payment}{Current Market Value}$$. We'll input the provided values into the formula.$$Current Yield = \frac{56.6}{950.42}$$$$Current Yield = 0.0596$$.
Finally, we'll convert the decimal to a percentage. The expected current yield for this bond is 5.18%.Therefore, the answer is 5.18%.
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State and explain the assertions of Absolute and Relative
Purchasing Power Parity
The assertion of Absolute Purchasing Power Parity (PPP) states that the ratio of two countries’ prices, when measured in terms of a common currency, should remain the same over time.
This is based on the notion that a unit of one currency should be able to purchase the same amount of goods and services in all countries. The assertion of Relative Purchasing Power Parity (RPPP) states that changes in exchange rates should be in proportion to changes in relative prices, i.e. relative inflation. It suggests that any changes in the exchange rate will be in direct proportion to the inflation rate of a country relative to that of another.
In summary, Absolute PPP states that the exchange rate should remain constant over time, while Relative PPP suggests that any changes in the exchange rate should be in proportion to the changes in relative prices. Both assertions are based on the idea that the same amount of currency should be able to purchase the same amount of goods and services in different countries.
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A Radant Beauty for a New Generation When Sam Rainer launched Radant Beauty in the USA in spring 2021, it was with a clearly articulated marketing strategy – a hefty first-year sales goal of $1.7 Million. Nine months after rollout, Rainer’s plan seemed to have worked quite well. His skincare company and product line had already topped the $1 Million mark and showed no signs of slowing. The line was formerly owned Zirh Skin Nutrition, a male skincare line that was acquired by Shisheido in 2000. Rainer immediately recognized an underserved market segment among young people ages fifteen to twenty-nine, a group he called "Generation Me". A combination of Generation X and Generation Y, Generation Me had long been ignored by the more recognized skincare companies, which tended to make products to help older consumers fight such skin ailments as wrinkles and recondition ageing skin. No serious conservatively priced high-end skin care solutions existed for young skin problems, such as oily skin, combination skin, and acne. That is, until Radant Beauty entered the market. Radant Beauty’s twelve-product line was developed by a group of dermatologists focusing on prevention and maintenance rather than repair. Although the products are serious skincare, their names all tie into the lingo used by the Generation Me market. Clean Me face wash, Scrub Me Gently facial scrub, Make Me Soft facial moisturizer, Help Me acne cream, Renew Me face peel, Make Me Moist body lotion, Rub Me message oil, Wash Me Everywhere body wash, Scrub Me Harder body scrub, Heal and Protect Me face and body cream for calming and reducing redness, and newest product, Shield Me sunscreen get with SPF 15. Radant Beauty intends to focus exclusively on skin care- and not branch out into cosmetics – in order to avoid losing the message of serious skincare. So, with only eleven products when the line was launched. Shield Me was added in Spring 2002). How did Radant Beauty ring up so many sales in such a short period of time? The starting point was zeroing onto the Generation Me market. Rainer wanted to identify what a fifteen to twenty-nine-year-old wanted. He found that they were consumers concerned about "me" and wanted products exclusively for "me". Once the market was clearly identified, Rainer developed a product line to meet its needs and wants. That is why none of the flagship products contained sun protection. Generation Me likes to look tan, and Radant Beauty products are geared toward a youthful market. The new Shield Me seems to send a conflicting message, but the SPF 15 only gives enough protection not to burn during daily activities. Also appealing to the larger target market is the product packaging. Colourful products packaged in clear bottles with funky writing attract interest. Creamier products are in an innovative style of packaging referred to as a "tattle" which is a tube and bottle combined, which prevents accidental discharge of the product. Once the market and products were ready, Radant Beauty introduced them to high-end retailers like Henri Bedel, Bloomingdale’s, Fred Segal, and Nordstrom. The idea was to build relationships with stores, train store personnel, and make brochures, literatures, and samples available to store customers. Radant Beauty co-sponsored a Teen Appreciation Day at Bloomingdale’s during the 2001 back-to-school season with Ralph fragrances, Tony & Tina cosmetics, and Lucky magazine. Teens received free facials and makeovers during the event, which generated a month’s worth of sales for Radant Beauty in a single day. The cost of the sponsorship was minimal. Keeping promotion costs minimal has been a key tactic for Rainer. Rather than roll out his new product and company with a pricey national advertising campaign, he chose to use catalogue inserts, postcards, in-store support combined with a heavy sampling programme, and store events like the Teen Appreciation Day. Low promotional costs help Radant Beauty make the most of its pricing strategy. Price points range from $15 for the Rub Me and Scrub Me products to $20 for Help Me acne products. In a market full of high-priced products aimed at older consumers, Radant Beauty is certainly poised to be a long-term success. Radant Beauty brings together a fun, cool skincare line (that’s still serious and effective) with the niche market it was designed to serve.
Radant Beauty has used its marketing mix elements effectively to meet the needs and wants of its target market, by developing a product line that addresses the common skin problems of the younger generation.
How was marketing used?The product line of Radant Beauty was developed specifically for the needs and wants of Generation Me. The products focus on prevention and maintenance rather than repair, with names that are relatable to the target market. The products are designed to address common skin problems of the younger generation, such as oily skin, combination skin, and acne. The packaging is also attractive to the younger market, with colourful products packaged in clear bottles with funky writing, and innovative packaging styles such as the "tattle" tube and bottle combined.
By developing a product line that addresses the common skin problems of the younger generation, implementing an affordable pricing strategy, making its products accessible in popular retail stores, and promoting its products through low-cost tactics that appeal to the younger market, Radant Beauty has successfully captured a previously underserved market segment.
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Explain how has Radant Beauty used the elements of its marketing mix to meet the needs and wants of its target market (Generation Me).
Please explain aboug your asnwer. Sheridan Corp. exchanged similar pieces of equipment with Elongo Corp. No cash was exchanged. Since this exchange will not significantly change the economic position of either company, this transaction lacks commercial substance. At this time, the carrying amount of Sheridan's asset is $37300, while the carrying amount of Elongo’s asset on their books is $33500. However, it has been reliably determined that the fair value of Sheridan’s asset is $37500, while the fair value of Elongo’s asset is $36800. Given these facts, at what amount should Sheridan record the asset it receives from Elongo?
a. $37300
b. $36800
c. $37500
d. $33500
Sheridan Corp. should record the asset received from Elongo Corp. at the carrying amount of Sheridan's original asset, which is $37300.
Based on the facts presented, it can be concluded that the exchange does not have commercial substance since no cash was exchanged and the transaction will not significantly change the economic position of either company.
In such a case, according to accounting rules, Sheridan Corp. should record the asset received from Elongo Corp. at the carrying amount of Sheridan's original asset, which is $37300.
This is because in a non-monetary exchange that lacks commercial substance, the acquiring company should recognize the asset received at the carrying amount of the asset given up, unless the fair value of the asset received is clearly more evident and reliable.
Therefore, the correct answer is option a) $37300.
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a landlord fails to make improvements to keep the balconies of his apartment building at a level of repair that meets the city code. after several warnings from the city, one of the balconies falls and smashes the furniture and barbecue of one of the tenants. another tenant is near the balcony when it falls but no one sustains physical injuries. compensatory damages may include .
Compensatory damages may include the cost of repair, warning, and payment to affected tenants.
Compensatory damage: Compensatory damages refer to monetary payment awarded by the court to the victim of a tort to compensate for the loss or damage they suffered. The primary purpose of compensatory damages is to make the victim "whole" again by compensating for the injury or loss suffered.
How can a tenant get compensatory damages?
The following is how tenants can get compensatory damages:
Document the damage and cause of the damage.Notify the landlord and request that the damage be fixed.Document the communication with the landlord and efforts made by the tenant to get the damage fixed.If the landlord fails to fix the damage, the tenant may bring a lawsuit against the landlord in a small claims court. The tenant must establish that the damage was caused by the landlord's negligence or breach of contract. If the tenant wins the lawsuit, the court may award compensatory damages to the tenant to compensate for the cost of repair, warning, and payment to affected tenants.Thus, the cost of repair, warning, and payment to affected tenants may include compensatory damages.
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jean peck's furniture manufactures tables for hospitality sector. it takes only bulk orders and each table is sold for $300 after negotiations. in the month of january, it manufactures 3,200 tables and sells 2,400 tables. actual fixed costs are the same as the amount of fixed costs budgeted for the month. the following information is provided for the month of january: variable manufacturing costs $140 per unit fixed manufacturing costs $105,000 per month fixed administrative expenses $27,000 per month at the end of the month jean peck's furniture has an ending inventory of finished goods of 800 units. the company also incurs a sales commission of $14 per unit. what is the cost of goods sold per unit when using absorption costing?
The cost of goods sold per unit using absorption costing is $215.18 and the gross margin is $201,552 with a gross margin percentage of 28%.
First, let's calculate the very total manufacturing cost per unit:
Variable manufacturing cost per unit = $140
Fixed manufacturing cost per unit = ($105,000 / 3,200) = $32.81
Total manufacturing cost per unit = $140 + $32.81 = $172.81
Now, let's calculate the gross margin:
Total sales revenue = (2,400 units sold x $300 per unit) = $720,000
Total variable costs = (2,400 units sold x $154 per unit) = $369,600
Total fixed costs = ($105,000 + $27,000) = $132,000
Total cost of goods sold = $518,448
Gross margin = Total sales revenue - Total cost of goods sold = $720,000 - $518,448 = $201,552
Finally, let's calculate the gross margin percentage:
Gross margin percentage = (Gross margin / Total sales revenue) x 100% = ($201,552 / $720,000) x 100% = 28%
Therefore, the cost of goods sold per unit using absorption costing is $215.18 ($518,448 / 2,400) and the gross margin is $201,552 with a gross margin percentage of 28%.
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The complete question is:
Jean peck's furniture manufactures tables for hospitality sector. it takes only bulk orders and each table is sold for $300 after negotiations. in the month of january, it manufactures 3,200 tables and sells 2,400 tables. actual fixed costs are the same as the amount of fixed costs budgeted for the month. the following information is provided for the month of january: variable manufacturing costs $140 per unit fixed manufacturing costs $105,000 per month fixed administrative expenses $27,000 per month at the end of the month jean peck's furniture has an ending inventory of finished goods of 800 units. the company also incurs a sales commission of $14 per unit. what is the cost of goods sold per unit and the gross margin when using absorption costing?
Your client, Albert Lee Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 25 years. Lee has an investment cost of $429,000 in the machine, which has a useful life of 25 years and no salvage value at the end of that time. Your client is interested in earning an 12% return on its investment and has agreed to accept 25 equal rental payments at the end of each of the next 25 years. Click here to view factor tables. You are requested to provide Lee with the amount of each of the 25 rental payments that will yield an 12% return on investment. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount of each rental payments $
The amount of each rental payment that will yield an 12% return on investment is $104,581.
What is return on investment?Return on investment (ROI) is a measure of the profitability of an investment. It is a ratio of the net profit of an investment divided by the cost of the investment. It is typically expressed as a percentage, and is used to evaluate the performance of an investment or to compare the efficiency of a number of different investments.
The present value of an annuity formula is used to calculate the value of each equal rental payment.
The formula is: PV = PMT x [1 - (1 / (1 + i)^n)] / i
Where:
PV = Present Value
PMT = Payment amount
i = Interest rate
n = Number of payments
In this case:
PV = ?
PMT = ?
i = 12% = 0.12
n = 25
Therefore:
PV = PMT x [1 - (1 / (1 + 0.12)^25)] / 0.12
PV = PMT x [1 - 0.507399] / 0.12
PV = PMT x 0.492601 / 0.12
PV = PMT x 4.10501
Since PV = $429,000,
PMT = $429,000 / 4.10501
PMT = $104,581
Therefore, the amount of each rental payment that will yield an 12% return on investment is $104,581.
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A merchant (unregulated) utility has a 300 MW combined cycle gas generation unit in PJM. For 2022, the utility received $50/MW-day for dedicating the capacity of the unit to PJM and $65/MWh for actual generation dispatched into PJM. During 2022, the combined cycle unit generated at a 65% capacity factor and all generation was dispatched into PJM. What is the annual revenue received by the merchant utility during 2022? Please show your work.
The annual revenue received by the merchant utility in 2022 is $46,935,000.
To calculate the revenue, we first need to determine the total amount of energy generated by the unit in 2022. At a 65% capacity factor, the unit would generate 1,825,500 MWh (300 MW x 24 hours x 365 days x 0.65).
Next, we can calculate the revenue from capacity payments by multiplying the capacity payment rate ($50/MW-day) by the capacity of the unit (300 MW) and the number of days in 2022 (365). This gives us a total capacity payment revenue of $5,475,000.
To calculate the revenue from energy payments, we multiply the energy payment rate ($65/MWh) by the total energy generated (1,825,500 MWh). This gives us a total energy payment revenue of $118,632,500.
Finally, we can add the capacity payment revenue and the energy payment revenue together to get the total annual revenue received by the merchant utility: $5,475,000 + $118,632,500 = $124,107,500.
However, we should subtract out the cost of fuel, which can be estimated at around $77,172,500 (assuming a fuel cost of $4/MMBTU and a heat rate of 7,500 BTU/kWh). This gives us a net revenue of $46,935,000.
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Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $600,000 P2 1,000,000 S1 364,000 Other data follow: P1 P2 Numbers of employees 150 50 Production capacity (units) 100,000 60,000 Space occupied (square feet) 5,000 15,000 Five-year average of S1's service output used 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating S1 cost to the producing departments
The total estimated overhead cost for P1 is $649,156 and for P2 is $1,014,844.
To allocate the cost of S1 to P1 and P2, we need to select an allocation base. Let's consider three different allocation bases:
Number of employees
P1 has 150 employees and P2 has 50 employees
S1 cost would be allocated based on the number of employees in each department
P1 would be allocated 65% of S1 cost and P2 would be allocated 35% of S1 cost
Total estimated overhead cost for P1: $634,600 ($600,000 + 65%*$364,000)
Total estimated overhead cost for P2: $1,057,400 ($1,000,000 + 35%*$364,000)
Production capacity
P1 has a production capacity of 100,000 units and P2 has a production capacity of 60,000 units
S1 cost would be allocated based on the production capacity of each department
P1 would be allocated 62.5% of S1 cost and P2 would be allocated 37.5% of S1 cost
Total estimated overhead cost for P1: $626,500 ($600,000 + 62.5%*$364,000)
Total estimated overhead cost for P2: $1,031,500 ($1,000,000 + 37.5%*$364,000)
Space occupied
P1 occupies 5,000 square feet and P2 occupies 15,000 square feet
S1 cost would be allocated based on the amount of space occupied by each department
P1 would be allocated 26.09% of S1 cost and P2 would be allocated 73.91% of S1 cost
Total estimated overhead cost for P1: $649,156 ($600,000 + 26.09%*$364,000)
Total estimated overhead cost for P2: $1,014,844 ($1,000,000 + 73.91%*$364,000)
Therefore, the total estimated overhead cost for P1 and P2 is calculated to be $649,156 and $1,014,844 respectively. It is to be noted that the allocation of S1 cost will vary depending on the allocation base chosen. Ultimately, the choice of allocation base should reflect the way in which S1's services are consumed by P1 and P2.
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Webster Company produces 40,000 units of product A, 27,000 units of product B, and 20,000 units of product C from the same manufacturing process at a cost of $440,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $30 for A, $25 for B, and $1 for C. None of the products require separable processing. Of the units produced, Webster Company sells 33,000 units of A, 26,000 units of B, and 20,000 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. (Do not round intermediate calculations.)
Required:
1. What is the value of the ending inventory of product A?
2. What is the value of the ending inventory of product B?
The value of the ending inventory for product A is $44,170. The value of the ending inventory for product B is $6,210.
To allocate joint costs using the net realizable value (NRV) method, we first need to determine the total net realizable value of the joint products (A and B) at the split-off point.
Calculate the total revenue for products A and B:
Product A: 33,000 units sold × $30 = $990,000
Product B: 26,000 units sold × $25 = $650,000
Total revenue (A + B) = $990,000 + $650,000 = $1,640,000
Calculate the revenue for the by-product (C) and deduct it from the total joint costs:
Product C: 20,000 units sold × $1 = $20,000
Joint costs after deducting by-product revenue: $440,000 - $20,000 = $420,000
Allocate the joint costs to products A and B based on their proportion of the total NRV:
Product A: ($990,000 / $1,640,000) × $420,000 = $252,439.02
Product B: ($650,000 / $1,640,000) × $420,000 = $167,560.98
Calculate the cost per unit for products A and B:
Product A: $252,439.02 / 40,000 units = $6.31 per unit
Product B: $167,560.98 / 27,000 units = $6.21 per unit
Calculate the value of the ending inventory:
Product A:Units in ending inventory: 40,000 produced - 33,000 sold = 7,000 units
Value of ending inventory: 7,000 units × $6.31 per unit = $44,170
Product B:Units in ending inventory: 27,000 produced - 26,000 sold = 1,000 units
Value of ending inventory: 1,000 units × $6.21 per unit = $6,210
So, the value of the ending inventory for product A is $44,170, and for product B, it is $6,210.
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suppose that government considers implementing a new tax cut to increase spending and add jobs in the economy. the economy is currently at full employment. what will happen to the number of jobs in the long run?
In the long run, a tax cut implemented to increase spending and add jobs in a full employment economy will have little effect on the number of jobs.
This is because when the economy is at full employment, there is no spare capacity in the labor market. As such, any extra spending created by a tax cut will be matched by the same reduction in aggregate demand, so the number of jobs will remain unchanged.
To explain further, when the economy is at full employment, the number of people who wish to work is equal to the number of jobs available. As such, any extra spending created by a tax cut will be offset by a decrease in aggregate demand, meaning that the number of jobs in the long run will stay the same.
Moreover, businesses are unlikely to hire more employees since the cost of doing so is likely to outweigh the benefit of additional spending from the tax cut. As such, the long-run effect of the tax cut will be negligible.
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Economic Systems: Communism Versus Capitalism
This activity is important because an economic system describes how a particular society distributes its resources to produce goods and services. A central issue of economics is how to fulfill an unlimited demand for goods and services in a world with a limited supply of resources. Different economic systems attempt to resolve this central issue in numerous ways.
The goal of this exercise is to demonstrate your understanding of the fundamental differences of communism and capitalism, two of the basic economic systems found in the world today, and how they address the distribution of resources.
Match each statement with the correct aspect of the economic system for both capitalism and communism.
Profits - Communism
Product Availability - Communism
Business Ownership - Capitalism
Competition - Capitalism
Competition - Communism
Price - Capitalism
Profits - Capitalism
Employment Options - Communism
Price - Communism
Product Availability - Capitalism
Employment Options - Capitalism
Business Ownership - Communism
Match each of the options above to the items below.
When Suzanna Kogan was a teenager, she worked at the state-owned bread factory where everyone in her family worked. - 8. Employment Options- Capitalism
When John Wakoski was a teenager, he worked at his uncle’s famous artisan pottery shop on the weekends.- 11. Employment Options- Communism
Since bread production and sales are the same each month, the factory managers can ignore competition from other bread companies.- 5. Competition- Communism
Jack Sampson works in a highly competitive industry. He has to make sure he knows the trends of his market so he always offers good value and retains his competitive advantage.- 4. Competition- Capitalism
All of the money earned beyond the cost of running the shoe manufacturing business goes to the government.
Selena Franka chose to give all the money earned beyond the cost of running her footwear company to charity.
Since sweater selection is so limited, Penny has a difficult time finding one to purchase that makes her stand out from the crowd.
When Janet goes to the mall to buy shorts for summer, she becomes frustrated when she can’t decide which ones to buy due to so many different choices.
Relative to people’s income, the price for gasoline is quite high, so those who own cars are very conscientious about using them.
Each time there is a risk that the oil supply will decrease, or the supply does in fact decrease, gasoline prices skyrocket.
Mike receives notice from the government regarding where he is assigned to work.
Sara completes her college application to start her studies in Accounting.
The first 4 are answered, unsure if correct but please match the rest.
Profits - Communism: All of the money earned beyond the cost of running the shoe manufacturing business goes to the government.
Product Availability - Communism: Since sweater selection is so limited, Penny has a difficult time finding one to purchase that makes her stand out from the crowd.
Business Ownership - Capitalism: Selena Franka chose to give all the money earned beyond the cost of running her footwear company to charity.
Competition - Capitalism: Jack Sampson works in a highly competitive industry. He has to make sure he knows the trends of his market so he always offers good value and retains his competitive advantage.
Competition - Communism: Since bread production and sales are the same each month, the factory managers can ignore competition from other bread companies.
Price - Capitalism: Each time there is a risk that the oil supply will decrease, or the supply does in fact decrease, gasoline prices skyrocket.
Profits - Capitalism: When John Wakoski was a teenager, he worked at his uncle’s famous artisan pottery shop on the weekends.
Employment Options - Communism: When Suzanna Kogan was a teenager, she worked at the state-owned bread factory where everyone in her family worked.
Price - Communism: Relative to people’s income, the price for gasoline is quite high, so those who own cars are very conscientious about using them.
Product Availability - Capitalism: When Janet goes to the mall to buy shorts for summer, she becomes frustrated when she can’t decide which ones to buy due to so many different choices.
Employment Options - Capitalism: Sara completes her college application to start her studies in Accounting.
Business Ownership - Communism: Mike receives notice from the government regarding where he is assigned to work.
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Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 144 Units in beginning inventory 0 Units produced 9,350 Units sold 8,950 Units in ending inventory 400 Variable costs per unit: Direct materials $ 26 Direct labor $ 68 Variable manufacturing overhead $ 14 Variable selling and administrative expense $ 18 Fixed costs: Fixed manufacturing overhead $ 140,250 Fixed selling and administrative expense $ 9,600 What is the net operating income (loss) for the month under variable costing
The net operating income (loss) for the month under variable costing is calculated to be $11,250.
To calculate the net operating income (loss) for the month under variable costing, we need to first calculate the total variable costs and the total contribution margin for the month.
Total variable costs = (Direct materials + Direct labor + Variable manufacturing overhead + Variable selling and administrative expense) × Units sold
Total variable costs = ($26 + $68 + $14 + $18) × 8,950 = $975,200
Contribution margin = Selling price - Total variable costs per unit
Contribution margin = $144 - ($26 + $68 + $14 + $18) = $18
Total contribution margin = Contribution margin × Units sold
Total contribution margin = $18 * 8,950 = $161,100
Next, we can calculate the total fixed costs for the month:
Total fixed costs = Fixed manufacturing overhead + Fixed selling and administrative expense
Total fixed costs = $140,250 + $9,600 = $149,850
Finally, we can calculate the net operating income (loss) for the month under variable costing:
Net operating income (loss) = Total contribution margin - Total fixed costs
Net operating income (loss) = $161,100 - $149,850 = $11,250
Therefore, the net operating income for the month under variable costing is $11,250.
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Imagine a Series A investor who has standard weighted average anti-dilution protection. Assume they have paid $100 for 25 shares. The series B investor puts in $100 and receives 50 shares. How many additional shares would be allocated to the Series A investor if the weighted average anti-dilution were honored? 25 shares 12.5 shares 37.5 shares 75 shares None of the above
Explanation:
To calculate the additional shares that would be allocated to the Series A investor, we need to determine the adjustment factor based on the weighted average anti-dilution protection.
The adjustment factor is calculated as follows:
Adjustment factor = A / B
Where: A = the original price paid per share by the Series A investor B = the new price per share after the Series B investment
In this case, the Series A investor paid $100 for 25 shares, which means they paid $4 per share. The Series B investor put in $100 and received 50 shares, which means they paid $2 per share. Therefore:
A = $4 B = $2
Adjustment factor = $4 / $2 = 2
This means that the Series A investor's original purchase price is multiplied by 2 to determine their new effective purchase price for the purposes of calculating their ownership percentage.
So, if the Series A investor's original investment of $100 for 25 shares is adjusted by the factor of 2, they would be treated as if they had invested $200 for 25 shares. This means their effective purchase price is $8 per share ($200 / 25).
Now, we can calculate how many additional shares the Series A investor would receive to maintain their ownership percentage:
Additional shares = (Series B shares * B) / (A + B)
Where: Series B shares = the number of shares issued to the Series B investor A = the original price paid per share by the Series A investor B = the new price per share after the Series B investment
In this case, plugging in the values, we get:
Additional shares = (50 * $2) / ($4 + $2) = 16.67
Rounding this number to the nearest whole share, the Series A investor would be allocated 17 additional shares.
Therefore, the correct answer is "17 shares".
What is the value of a bond if the present value of interest
cash flows is $200 and the present value of the face value to be
received when the bond matures is $150?
If the present value of the cash flows from interest payments is $200 and the present value of the face value that will be received when the bond matures is $150, the bond's value will be $350.
How do you calculate a bond's face value?
When calculating a bond's worth at any given time, sum the present value of interest payments and the present value of the principal you would get upon maturity.
Which bond's face value is paid back at maturity at a price less than the bond's purchase price?
Option D, "discount bond," is the appropriate response to the question. A bond that is issued at a price lower than the market rate is known as a discount bond. At maturity, the investor receives the face value plus interest. A bond of this type could have zero or one coupon.
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Case Study
Louise Simms, newly graduated with a master of business administration (MBA) degree, was hired by a prestigious multinational firm based in the United States. With minimal training, she was sent to join a company partner to negotiate with a high- ranking Middle Eastern government official. The partner informed Simms that he would introduce her to the government contact and then leave her to "get the job done." Her assignment was to "do whatever it takes to win the contract: it’s worth millions to us." The contract would enable Simms’ firm to select and manage technology companies that would install a multimillion-dollar computer system for that government. While in the country, Simms was told by the official that Simms’ firm had "an excellent chance of getting the contract" if the official’s nephew, who owned and operated a computer company in that country, could be assured "a good piece of the action." On two different occasions, while discussing details, the official attempted unwelcome advances toward Simms. He backed off both times when he observed her subtle negative responses. Simms was told that "the deal" would remain a confidential matter and the official closed by saying, "That’s how we do business here; take it or leave it." Simms was frustrated about the terms of the deal and about the advances toward her. She called her superior in Chicago and urged him not to accept these conditions because of the questionable arrangements and also because of the disrespect shown toward her, which she said reflected on the company as well. Simms’ supervisor responded, "Take the deal! And don’t let your emotions get involved. You’re in another culture. Go with the flow. Accept the offer and get the contract groundwork started. Use your best judgment on how to handle the details." Simms couldn’t sleep that night. She now had doubts about her supervisor’s and the government administrator’s ethics. She felt that she had conflicting priorities. This was her first job and a significant opportunity. At the same time, she had to live with herself.
Put yourself in Louise’s situation. Identify your ethical decisionmaking style.
1. Are you primarily an idealist, pragmatist, altruist, or individualist?
2. What are some of your blind spots?
3. Consider the three questions regarding a "defining moment" at the beginning of the chapter: "Who am I?" "Who are we?" "Who is the company?"
4. Describe the ethical principles you usually follow in your life: utilitarianism, rights, justice, universalism, ethical virtue
5. What is your moral responsibility to yourself, your family and friends, your colleagues and work team, and to the company?
6. What is your decision?
The cultural disparities and Louise's lack of prior international business expertise may be the cause of her blind spots. She might not fully comprehend regional business practises.
What does an MBA make in a month?A fresher MBA in finance typically makes 2.4 lakh rupees ($20.0,000) annually. Salary projections are based on 305 most recent salaries provided by MBA Finance freshmen from various companies.
Why is an MBA so costly?Many programmes include the price of extracurricular activities, real-world consulting assignments, and overseas business trips in their tuition. Moreover, setting up workshops, career fairs, and mentoring makes offering an MBA an expensive venture for schools.
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