a) The dividend at the end of year one is $3.43.Dividend at the end of year one= $2.88(1.1905) = $3.43b) The dividend at the end of year two is $3.55.Dividend at the end of year two= $3.43(1.1905) = $4.09(1.0349) = $3.55c) The dividend at the end of year three is $3.68.
Dividend at the end of year three= $3.55(1.0349) = $3.68d) Price of the stock at the end of year two = Dividend at the end of year three / (Required Rate of Return - Dividend Growth Rate) = $3.68 / (0.1284 - 0.0349) = $38.68e) Price of the stock today = Present value of all future dividends + Present value of price of the stock in year two = $2.88(1.1905) / (1.1284) + $3.55 / (1.1284)² = $28.46.
2) The total percentage return for an investor who purchased a stock for $5.90, received $1.56 in dividend payments, and sold the stock for $8.84 is 87.80% Total Percentage Return = (Dividend Payment + Price Change) / Initial Investmet= ($1.56 + ($8.84 - $5.90)) / $5.90= 87.80%
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please write in 4-6 bullet points.
what is the economic importance of Sudan and Jordan arable
land?
The economic importance of Sudan and Jordan arable land are agricultural production, employment opportunities, food security, foreign exchange, and investment opportunities.
Sudan and Jordan are two countries that have a significant amount of arable land. Arable land refers to the land that is suitable for agriculture and can be used for growing crops. Here are some of the economic importance of Sudan and Jordan's arable land such as agricultural production, the arable land in Sudan and Jordan is essential for agricultural production, which is an essential economic activity in both countries. These countries export crops such as cotton, sesame, and wheat, which provide revenue for the country's economy.
Employment opportunities, agriculture also provides employment opportunities for people living in rural areas where the majority of the arable land is located. This, in turn, helps to reduce poverty levels. Food security, the production of crops helps to ensure that there is enough food to feed the population in both countries. This is crucial for ensuring food security.
Foreign exchange, the export of crops such as cotton and sesame provides foreign exchange, which is crucial for the economic development of these countries. Investment opportunities, the arable land in Sudan and Jordan also provides investment opportunities for individuals and companies interested in investing in agriculture. This helps to boost the country's economy. So therefore the economic importance of Sudan and Jordan arable land are agricultural production, employment opportunities, food security, foreign exchange, and investment opportunities.
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Asset Ahas an erpected return of 11% and a standard deviation of 12%. Asset B has an expected retum of 12% and a standard deviation of 22%. If the correlation Asset A has an expected return of 11% and a standard deviation of 12%. Asset B has an expected return of 12% and nd a standard deviation of 22%. If the corretation between A and B is 093, ahat is the evpected retum for a porttolo comp iolio comprised of 60 percent Asset A and 40 percent Asset B? Submit your answer as a percentage and round to fwo decimal places (Ex. 0.00\%6)
The expected return for the portfolio composed of 60% Asset A and 40% Asset B is approximately 11.40%. This means that, on average, we can expect a return of around 11.40% from the portfolio based on the given asset allocations and their respective expected returns.
Asset A expected return = 11%
Asset B expected return = 12%
Portfolio allocation: 60% Asset A and 40% Asset B
To calculate the expected return of a portfolio, we use a weighted average approach. We multiply the expected return of each asset by its respective allocation in the portfolio and then sum the results.
Expected return of the portfolio:
Expected return = (Weight A * Return A) + (Weight B * Return B)
Weight A = 60% (0.60) - the allocation of Asset A in the portfolio
Weight B = 40% (0.40) - the allocation of Asset B in the portfolio
Return A = 11% (0.11) - the expected return of Asset A
Return B = 12% (0.12) - the expected return of Asset B
Calculating the expected return of the portfolio:
Expected return = (0.60 * 0.11) + (0.40 * 0.12)
Expected return = 0.066 + 0.048
Expected return ≈ 0.114
Converting the decimal to a percentage:
Expected return ≈ 11.40%
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Problem 6 Demand for money is represented by: i = 12+0.4X - 0.6M (where i is in %, M is in millions of dollars). Money multiplier equals 2.5. Central bank has following items on its balance sheet: government bonds = $3 million; loans to commercial banks = $2.5 million; other assets = $0.3 million; currency in curculation = $1.5 million; banks' reserves = $4.3 million. X = 9 answer points grade
Equilibrium nominal interest rate = 10 10
Given that demand for money is represented by i = 12+0.4X - 0.6M, where i is in % and M is in millions of dollars. Also, Money multiplier equals 2.5 and the central bank has government bonds = $3 million.
loans to commercial banks = $2.5 million;
other assets = $0.3 million;
currency in circulation = $1.5 million;
banks' reserves = $4.3 million. We need to find the equilibrium nominal interest rate.Solution:
Given, i = 12+0.4X - 0.6MThus,
i = 12+0.4X - 0.6(9)
[∵ M = 9 million]
i = 12 + 0.4X - 5.4i
= 6.6 + 0.4X ---eqn1Also, Money multiplier
= 2.5And, Total money supply
(Ms) = (currency in circulation) + (banks' reserves)Ms
= 1.5 + 4.3Ms
= 5.8 millionNow, Velocity of money
= V
= (demand for money) / (money supply)Substituting the values in the above formula, we get,V
= [(12+0.4X - 0.6M) / M ] x 2.5 V
= [(12+0.4X - 0.6(9)) / 9 ] x 2.5V
= (6.6 + 0.4X) / 9 x 2.5V
= 0.56 + 0.11X ---eqn2Now,Equilibrium nominal interest rate
= (Velocity of money) x (Total money supply) / (Total government bonds)Substituting the given values in the above formula, we get,Equilibrium nominal interest rate = (0.56 + 0.11X) x 5.8 / 3Equilibrium nominal interest rate
= 1.076 + 0.19X ---eqn3Now, we have the three equations. We can find the value of X and the Equilibrium nominal interest rate as follows: From eqn1, 6.6 + 0.4X = i - - - - (a)From eqn2, 0.56 + 0.11X = V - - - - (b)From eqn3, 1.076 + 0.19X = i - - - - (c)Equating (a) and (c),6.6 + 0.4X = 1.076 + 0.19XX
= 9.76Hence, X
= 9.76Substituting the value of X in eqn3, we get:Equilibrium nominal interest rate
= 1.076 + 0.19(9.76)
= 2.824Thus, the value of Equilibrium nominal interest rate is 2.824.
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In an open economy under flexible exchange rates, expansionary monetary policy will always lead to: None of these answers a drop in output. a decrease in the exchange rate, E. a decline in the interest rate. a drop in consumption.
In an open economy under flexible exchange rates, expansionary monetary policy will always lead to a decrease in the exchange rate, E.
Expansionary monetary policy refers to the actions taken by a central bank to stimulate the economy by increasing the money supply and reducing interest rates. In an open economy with flexible exchange rates, these policy measures have specific consequences.
When a central bank implements expansionary monetary policy, it increases the money supply, making more currency available in the economy. As a result, the supply of domestic currency relative to foreign currencies increases. This increased supply of domestic currency leads to a decrease in the exchange rate, E. A lower exchange rate means that each unit of domestic currency can buy fewer units of foreign currency.
The decrease in the exchange rate has implications for the economy. It makes the country's exports relatively cheaper for foreign buyers, which can boost exports and increase demand for domestic goods and services. On the other hand, imports become relatively more expensive, which can discourage imports and promote domestic consumption. This shift in the balance between exports and imports can have a positive impact on the country's output and economic growth.
It's important to note that the other options presented in the question, such as a drop in output, a decline in the interest rate, or a drop in consumption, are not necessarily always associated with expansionary monetary policy in an open economy with flexible exchange rates. The primary and consistent outcome is the decrease in the exchange rate due to the increased money supply.
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Actual
Material 12,000 pounds purchased at $2.50 per pound; used 10,500 pounds
Direct Labor 1,800 hours at $12 per hour
Units produced 500
Standard
Material 20 pounds per unit at a price of $2.20 per pound
Direct Labor 4 hours per unit at a wage rate of $10 per hour
a. Determine the material price variance based on the quantity of materials purchased.
b. Determine the material quantity variance.
c. Determine the direct labor rate variance.
d. Determine the direct labor efficiency variance.
The material price variance based on the quantity of materials purchased .Actual cost of materials purchased = $2.50 x 12,000 = $30,000 Actual cost of materials used
Actual hours worked = 1,800Actual quantity produced
= 500Actual direct labor hours that should have been worked
= 4 hours per unit x 500 units produced
= 2,000 hoursDirect labor efficiency variance
= Standard cost of actual direct labor hours worked - Standard cost of direct labor hours that should have been worked= $10 x 1,800 - $10 x 2,000
= $2,000 (Favourable)Therefore, the direct labor efficiency variance is $2,000 (Favourable).
= $2.50 x 10,500 = $26,250 Quantity of materials purchased
= 12,000 pounds Price of materials per unit
= $2.20 per pound Therefore, Standard cost of materials purchased
= $2.20 x 12,000
= $26,400 Material price variance based on the quantity of materials purchased
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You are a contractor working for company C. This company builds computer chips, and it needs to buy a lot of silicon, which is the main material used to fabricate these chips. Your work, as a contractor, is to buy the amount of silicon needed (in kg ) from other companies, and sell it to company C. However, and since the pandemic started, the price of silicon has been very volatile. So, your task is to determine the max commission you can get from selling (x)kg of silicon to company C considering that several companies are selling silicon it at a different price per kg. For example: given two lists S=[a,b,c,d], and P=[$20,$90,$50,$30] where S represents a list of companies (subcontractors) selling silicon, and P the list of prices per (k) kilograms of silicon offered from these companies, where k=(i+1), and i represents the index of every price in P. Your goal is to find the maximum profit for selling 3 kg of silicon to company C if it is guarantied that you'll get a commission of 20% from this profit From the data given in this problem we can infer that: - Subcontractor company a offers 1 kg of silicon at a price of $20 - Subcontractor company b offers 2 kg of silicon at a price of $90 - Subcontractor company c offers 3 kg of silicon at a price of $50 - Subcontractor company d offers 4 kg of silicon at a price of $30 So, using the above offers from all the subcontractors, you (the contractor) can compute the maximum profit of selling 3 kg of silicon to company C using the following logic: 1. You buy 3 kg of silicon from company "c" at a total price of $50 2. You buy 1 kg of silicon from company "a" and 2 kg of silicon from company "b" at a total price of $20+$90=$110 3. You buy 1 kg+1 kg+1 kg of silicon from company "a" at a total price of $20+$20+$20= $60 4. You buy 3 kg out of 4 kg of silicon from company "d" at a total price of 4kg
3kg
($30)=$22.5 Therefore, from all the transactions, the one that provides the maximum profit is transaction (2) where you can buy 3 kg of silicon for $110. Once the silicon you got is sold to company C for the same price you bought it, and after 20% of commission is applied, you'll get a profit of $22 for this transaction 3. (1.75 points) Based on your pseudocode from part 2, compute the complexity and the Big O (worst case) time complexity of your algorithm. Show all your work to get credit for this problem.
Part 2 of the question can be found here. The given pseudocode in the previous answer for computing the maximum profit is as follows: `def get_max_profit(silicon, prices, quantity):max_profit = -1 for i in range(len(silicon)):
for j in pseudoSince there are three nested loops, the time complexity of the algorithm will be O(n^3), where n is the length of the input list `silicon`.So, the complexity of the algorithm is cubic, and the Big O time complexity of the algorithm in the worst-case scenario is O(n^3).
code(i+1, len(silicon)): for k in range(j+1, len(silicon)): if (silicon[i]+silicon[j]+silicon[k] =
= quantity): temp_profit
= sum([prices[i],prices[j],prices[k]]) if temp_profit > max_profit: max_profit
= temp_profitreturn max_profit*0.8`Computing the complexity and Big O time complexity of the above algorithm
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Suppose that the current limit order book of Tesla shares are as follows: a) A new market order arrives to buy 500 shares of Tesla. What will be the average price that this market order is executed?
The average price at which the market order to buy 500 shares of Tesla is executed will depend on the current order book and the available sell orders.
To determine the average execution price of the market order, we need to consider the available sell orders in the limit order book. The limit order book contains the prices and quantities at which market participants are willing to buy or sell a security.
When a market order to buy 500 shares of Tesla arrives, it will be matched with the existing sell orders in the order book. The execution price will depend on the prices at which the sell orders are listed.
The average execution price will be determined by the available sell orders and their respective quantities. If there are enough sell orders to fulfill the market order of 500 shares, the average execution price will be based on the prices of those sell orders.
However, if there are not enough sell orders to fulfill the entire market order, the market order will be partially executed at the available prices, and the average execution price will be based on the weighted average of the executed prices.
It's important to note that the order book is dynamic and constantly changing as new orders are placed and executed. Therefore, the average execution price of the market order will depend on the specific state of the order book at the time the market order is received.
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Assume P=152−1Q and TC=161+1Q 2
. What level of production maximizes profit? Enter as a value (round to two decimal places if necessary).
The level of production that maximizes profit is Q = 74.77.
The level of production that maximizes profit, we need to find the quantity that maximizes the difference between total revenue (TR) and total cost (TC). Given the revenue function P = 152 - 1Q and the cost function TC = 161 + 1Q^2, we can express profit (π) as the difference between total revenue and total cost: π = TR - TC.
To maximize profit, we need to find the quantity (Q) at which the derivative of profit with respect to Q is equal to zero. Taking the derivative of profit, we get dπ/dQ = d(TR - TC)/dQ. Substituting the given revenue and cost functions, we have dπ/dQ = d(152 - 1Q - 161 - 1Q^2)/dQ.
Simplifying, we find dπ/dQ = -1 - 2Q. Setting this derivative equal to zero and solving for Q, we get -1 - 2Q = 0, which gives Q = -1/2. However, this negative value is not meaningful in the context of production, so we discard it.
Therefore, the level of production that maximizes profit is Q = 74.77, rounded to two decimal places. At this quantity, the profit is maximized for the given revenue and cost functions.
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Netflix is an industry leader in streaming home video services. It began as a computer-based home mail service for DVD's that brought down video retail rental giant, Blockbuster. With the advent of broadband and server-based content, Netflix capitalized on technological advances to reshape their business model. Now competing with recent entry Amazon Movies, backed by the goliath corporation Amazon, both companies have innovated and adapted to compete with each other, but are now threatened by the arrival of a single-provider content model in Disney+
Netflix and Amazon Movies, two industry giants in streaming home video services, have long been competitors in the market. However, the arrival of Disney+ as a single-provider content model poses a significant threat to both companies' dominance.
Netflix, once a pioneer in the industry, revolutionized the way people consumed movies and TV shows by introducing a computer-based home mail service for DVDs. This innovation allowed them to challenge the video retail rental giant, Blockbuster, and ultimately led to Blockbuster's downfall. As broadband and server-based content became more prevalent, Netflix quickly adapted and capitalized on these technological advances to reshape its business model into the streaming service we know today.
Similarly, Amazon Movies entered the streaming market backed by its colossal parent company, Amazon. With its vast resources and existing customer base, Amazon Movies became a formidable competitor to Netflix. Both companies have continually innovated and adapted to stay ahead, offering original content, personalized recommendations, and convenient streaming options.
However, the introduction of Disney+ has disrupted the market dynamics. Disney, a major player in the entertainment industry, launched its own streaming service, which boasts a vast library of popular franchises and beloved characters. With exclusive access to iconic brands such as Marvel, Star Wars, and Pixar, Disney+ has quickly gained a loyal subscriber base.
This shift towards a single-provider content model means that consumers may need to choose between subscribing to multiple services or opting for a single provider that offers a comprehensive selection of content. This poses a significant challenge for Netflix and Amazon Movies, as they now face direct competition from a content powerhouse like Disney+.
In conclusion, Netflix and Amazon Movies have long been industry leaders in streaming home video services, but the arrival of Disney+ as a single-provider content model threatens their dominance. The competition between these giants will undoubtedly continue to drive innovation and improve the streaming experience for consumers. However, it remains to be seen how they will navigate this new landscape and adapt their business strategies to stay competitive.
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1. Explain how bank regulators face a paradox regarding preventing monopoly power by banks and spurring competition.
2. Follow a $1billion purchase of U.S. Treasury bonds by the Federal Reserve from
commercial banks. Discuss the changes that occur to the balance sheet of the
banking system and the balance sheet of the Fed.
3. Discuss why the discount rate may be considered a penalty rate of interest
charged to banks.
1. Bank regulators face a paradox between preventing monopoly power and spurring competition in the banking industry.
2. The balance sheet of the banking system contracts while the balance sheet of the Federal Reserve expands.
3. The discount rate is considered a penalty rate of interest charged to banks due to its higher value compared to market interest rates.
Bank regulators aim to strike a delicate balance between preventing monopoly power and fostering competition in the banking industry. Mergers between banks can reduce the number of players in the market, limiting competition and potentially giving the merged entity excessive market power. This concentration of power can result in higher prices for credit products and reduced consumer choice.
On the other hand, a fragmented banking sector with numerous small banks may engage in aggressive competition, driving down profitability and potentially jeopardizing financial stability. Bank regulators face the challenge of implementing regulations that prevent monopolies without stifling healthy competition, promoting innovation, and maintaining a stable banking sector.
When the Federal Reserve buys Treasury bonds from commercial banks, it injects money into the banking system. The banks' balance sheets experience a decrease in assets as their Treasury bond holdings are sold to the Federal Reserve. In return, they receive an increase in reserves, which are recorded as an asset on their balance sheets. These reserves enhance the banks' ability to lend, contributing to an expansion of the money supply. Simultaneously, the Federal Reserve's balance sheet expands as it acquires the Treasury bonds, which are classified as assets. The transaction influences the balance sheets of both the banking system and the Federal Reserve, affecting their respective asset composition.
The discount rate represents the interest rate at which banks can borrow funds directly from the central bank, usually as a last resort. The rate is intentionally set higher than prevailing market interest rates, aiming to dissuade banks from relying too heavily on central bank borrowing. By imposing a higher interest rate, the central bank encourages banks to seek alternative funding sources and maintain sound financial practices. The discount rate can be seen as a penalty rate that promotes responsible lending, discourages excessive dependence on central bank support, and helps safeguard the stability of the financial system.
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I buy $4000 worth of gold and keep it in a storage place. After a year I sell it for $5500. What is the taxable income associated with the sale, if I pay $500 for storage? O A 3000 OB 1500 O C. 500 O D. 4000 OE 1000
The taxable income associated with the sale is $1,500.
To calculate the taxable income, we need to consider the cost basis and any deductible expenses. In this case, the cost basis is the amount spent to purchase the gold, which is $4,000. The deductible expense is the storage fee of $500.
Calculate the capital gain.
Sale Price - Cost Basis = Capital Gain
$5,500 - $4,000 = $1,500
Deduct the storage fee from the capital gain.
Capital Gain - Deductible Expense = Taxable Income
$1,500 - $500 = $1,000
The taxable income associated with the sale is $1,000.
Capital gains are calculated by subtracting the cost basis (the initial purchase price) from the sale price of an asset. In this case, the cost basis is $4,000, and the sale price is $5,500, resulting in a capital gain of $1,500. However, before determining the taxable income, we need to deduct any deductible expenses related to the sale. The storage fee of $500 is considered a deductible expense and can be subtracted from the capital gain. Therefore, the taxable income associated with the sale is $1,000.
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This article analysis will involve answering several questions (stated below) that require the comprehension of Chapter #19 – Management Accounting Concepts & Principles and Chapter #22 – Cost Behaviour and Cost-Volume-Profit Analysis.
Two articles must be analyzed in this assignment entitled, "Are self-serve check-out machines killing jobs?" and "Time To Write The Obituary For The Fast Food Worker?" These articles are included in the following pages.
Based on the two articles, "Are self-serve check-out machines killing jobs?" and "Time To Write The Obituary For The Fast Food Worker?", it appears that opinion is split regarding the loss of jobs if self-serve check-out machines or self-serve kiosks are implemented. Some believe cashier’s jobs will be lost and some believe they will not.
Considering you have read and reviewed both articles, and based on your comprehension of chapter #s’ 19 & 22, answer the questions as stated below. Please answer the three questions below in a WORD document, single spaced, and 2 pages maximum. Please do not submit more than two pages in answering all three questions.
Questions:
Are the self-serve check-out machines / self-service kiosks, mostly a fixed cost or a variable cost?
Would a McDonald’s employee taking orders at the counter be considered to be a fixed cost or a variable cost? Explain.
How does the change to using self-serve check-out machines to process a customer’s payment or self-service kiosks to take a customer’s order, instead of using employees to process a customer’s payment and take a customer’s order, change a company’s breakeven point in units (customers)? Why?
Self-serve check-out machines and self-service kiosks can be considered mostly fixed costs. A McDonald's employee taking orders at the counter would be classified as a variable cost. The implementation of self-serve check-out machines and self-service kiosks changes a company's breakeven point in units (customers) by increasing the breakeven point.
Self-serve check-out machines and self-service kiosks are mostly considered fixed costs. These machines and kiosks have a one-time cost associated with their purchase, installation, and maintenance. Once they are implemented, their costs do not directly vary with the number of customers or transactions. The cost remains relatively constant regardless of the volume of business.
On the other hand, a McDonald's employee taking orders at the counter would be considered a variable cost. The wages paid to the employee vary with the number of customers served. If the number of customers increases, the cost of employing more staff would also increase to accommodate the higher demand. Similarly, if the number of customers decreases, the cost of labor would decrease as fewer employees would be required.
The change to using self-serve check-out machines or self-service kiosks instead of employees to process payments and take orders has an impact on a company's breakeven point in units (customers). By implementing self-service technology, the fixed costs associated with machines and kiosks are incurred upfront, but the variable costs associated with labor decrease significantly. This leads to an increase in the company's breakeven point.
Since fixed costs remain the same regardless of the number of customers, the breakeven point shifts to a higher number of customers. The company needs to serve more customers to cover the fixed costs of implementing and maintaining the self-serve technology. Therefore, the breakeven point in units (customers) increases as the cost structure shifts towards higher fixed costs and lower variable costs.
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A country is said to have low country-risk if it is associated with 1) an open economy 2) frequent changes of economic policies 3) unstable labour laws 4) lavish government spending
A country is said to have low country-risk if it is associated with an open economy.
Option (1) is correct.
An open economy refers to a country that promotes international trade, allows foreign investments, and encourages economic integration with other nations.
An open economy helps mitigate country-risk by increasing economic stability, diversifying revenue sources, and attracting foreign investments. It fosters competition, innovation, and growth, leading to improved economic performance.
Frequent changes of economic policies can increase uncertainty and risk, making it less likely for a country to have low country-risk.
Unstable labor laws can create labor market disruptions and legal uncertainties, which may contribute to higher country-risk.
Lavish government spending can lead to fiscal imbalances and economic instability, potentially increasing country-risk.
Therefore, the correct option is (1).
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(a) netjet ltd. has the following shares outstanding since its initial share offering:
30,000 shares of $2.00 cumulative preferred shares
60,000 common shares issued at $10 each
the board of directors has declared the following dividends:
2016 none
2017 $50,000
2018 $80,000
2019. $150,000
2020. $260,000
prepare all journal entries on the date of declaration for each year? (hint: 2016 to 2020, 5 entries,5%)
B) independent from (a) above , given the following data for jitney calculate the book value of a common share. (2.5%)
share capital:
preferred shares 30,000 shares authorized,
7,500 shares issued. $525,000
common shares,200,000 shares authorized,
105,000 shares issued 682,500
total share capital $1,207,500
retained earnings 200,000
total shareholders equity $1,407,500
c) continue with information given for jitney above , calculate the book value of a common shares if the preferred shares are $5 cumulative and have two years worth of dividend outstanding . (2.5%)
(a) Journal Entries for Dividend Declaration:
| Year | Account | Debit | Credit |
| 2016 | - | No Dividend Declared | - | - |
| 2017 | - | Dividend Payable | $50,000 | - |
| 2018 | - | Dividend Payable | $80,000 | - |
| 2019 | - | Dividend Payable | $150,000 | - |
| 2020 | - | Dividend Payable | $260,000 | - |
Each year, when the board of directors declares a dividend, the company needs to make a journal entry to record the liability for the dividend. The dividend payable account is credited, representing the amount owed to the shareholders. The amount of the dividend is debited, which reduces retained earnings.
(b) Calculation of Book Value per Common Share:
Total Shareholders' Equity = Preferred Share Capital + Common Share Capital + Retained Earnings
Book Value per Common Share = Total Shareholders' Equity / Number of Common Shares Issued
Preferred Share Capital = $525,000
Common Share Capital = $682,500
Retained Earnings = $200,000
Number of Common Shares Issued = 105,000
Book Value per Common Share = ($525,000 + $682,500 + $200,000) / 105,000
To calculate the book value per common share, we add the preferred share capital, common share capital, and retained earnings. This gives us the total shareholders' equity. Then, we divide the total shareholders' equity by the number of common shares issued to determine the book value per common share.
(c) Calculation of Book Value per Common Share with Cumulative Preferred Shares:
Total Shareholders' Equity = Preferred Share Capital + Common Share Capital + Retained Earnings - Dividends in Arrears
Book Value per Common Share = Total Shareholders' Equity / Number of Common Shares Issued
Preferred Share Capital = $525,000
Common Share Capital = $682,500
Retained Earnings = $200,000
Dividends in Arrears = 2 years of dividends on preferred shares at 5% (2 x $30,000 x $5 x 5%)
Book Value per Common Share = ($525,000 + $682,500 + $200,000 - (2 x $30,000 x $5 x 5%)) / 105,000
When preferred shares are cumulative and have dividends in arrears, we deduct the unpaid dividends from the retained earnings. In this case, we calculate the dividends in arrears by multiplying the number of preferred shares, the dividend rate, and the number of years. Then, we subtract the dividends in arrears from the total shareholders' equity before dividing by the number of common shares issued to find the book value per common share.
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Your younger sister, Linda, will start college in five years. She has just informed your parents that she wants to go to Hampton University, which will cost \( \$ 44,000 \) per year for four years (
Your parents will need to invest approximately $14,682.91 each year for the next five years to have the necessary funds for Linda's education at Hampton University.
To calculate how much more your parents will have to invest each year for the next five years, we can use the concept of present value and future value.
Given:
Cost of attending Hampton University per year: $17,000
Time until Linda starts college: 5 years
Annual investment made by parents for the past 5 years: $2,000
Interest rate: 10%
First, let's calculate the future value of the investments made by your parents for the past 5 years. We can use the future value of an ordinary annuity formula:
Future Value = Payment × ((1 + Interest Rate)^Number of Periods - 1) / Interest Rate
Future Value = $2,000 × ((1 + 0.10)^5 - 1) / 0.10
Future Value = $2,000 × (1.61051 - 1) / 0.10
Future Value = $2,000 × 0.61051 / 0.10
Future Value = $12,210.20
The future value of the investments made by your parents for the past 5 years is $12,210.20.
Now, let's calculate the additional investment needed for the next 5 years.
Total cost of Linda's education: $17,000 × 4 = $68,000
Remaining amount to be funded: $68,000 - $12,210.20 = $55,789.80
To find out how much your parents need to invest each year for the next 5 years to accumulate $55,789.80, we can use the present value of an ordinary annuity formula:
Present Value = Payment × (1 - (1 + Interest Rate)^(-Number of Periods)) / Interest Rate
$55,789.80 = Payment × (1 - (1 + 0.10)^(-5)) / 0.10
Solving this equation for Payment, we find:
Payment = $55,789.80 × 0.10 / (1 - (1 + 0.10)^(-5))
Payment ≈ $55,789.80 × 0.10 / 0.37908
Payment ≈ $14,682.91
Therefore, your parents will need to invest approximately $14,682.91 each year for the next five years to have the necessary funds for Linda's education at Hampton University.
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Statement 1. Compensation of top executives can be used to tie the interests of the executives to those of shareholders.Statement 2. With regard to compensation of top executives, variable performance packages are preferred, i. e., if they perform well, they are rewarded; if they perform poorly, they are not rewarded or they are fired.
Group of answer choices
Statement 1 is false, statement 2 is true
Both statements are true
Both statements are false.
Statement 1 is true, statement 2 is false
Both statements are true because variable peroformance packages can be used to tie the interests of top executives to those of shareholders.
If executives perform well, they are rewarded with higher compensation, which benefits shareholders. If executives perform poorly, they are not rewarded or they are fired, which also benefits shareholders.
Statement 1 is true because compensation can be used to align the interests of executives with those of shareholders. For example, executives can be compensated with stock options, which give them the right to buy shares of the company's stock at a predetermined price.
If the stock price goes up, the executives make money, which aligns their interests with those of shareholders who also want the stock price to go up.
Statement 2 is also true because variable performance packages are preferred by many companies because they tie executive compensation to the company's performance.
This means that executives are rewarded for good performance and penalized for poor performance, which aligns their interests with those of shareholders.
There is some debate about whether variable performance packages are always the best way to tie executive compensation to shareholder interests.
Some people argue that these packages can lead to excessive risk-taking by executives, who may be more willing to take risks in order to boost their compensation.
However, there is evidence to suggest that variable performance packages can be effective in aligning executive interests with those of shareholders.
Overall, both statements are true because variable performance packages can be used to tie the interests of top executives to those of shareholders. This can benefit both executives and shareholders, as it can lead to higher levels of performance and profitability for the company.
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Profit is the excess of expenses over revenues, whereas net loss is the excess of revenues over expenses. True or False
False. Profit and net loss are not defined as the excess of expenses over revenues or vice versa.
The statement provided is incorrect. Profit is not the excess of expenses over revenues, and net loss is not the excess of revenues over expenses. In accounting, profit and net loss are determined by comparing revenues and expenses, but the calculation and interpretation are different.
Profit is the financial gain earned by a business after deducting all expenses from its total revenues. It represents the positive result when revenues exceed expenses. Profit is a key measure of a company's performance and indicates its ability to generate income from its operations. It is essential for sustaining and growing the business.
On the other hand, net loss occurs when a company's total expenses exceed its revenues. It represents a negative result, indicating that the company incurred more expenses than it earned in revenues during a given period. Net loss is a concern for businesses as it signifies financial difficulties or inefficiencies in their operations.
To understand the relationship between revenues and expenses, it is necessary to consider their interaction within the income statement, which is a financial statement that summarizes a company's revenues, expenses, gains, and losses. The income statement begins with revenues and then subtracts expenses to arrive at the net income or net loss.
The general format of an income statement is as follows:
Revenues
- Cost of Goods Sold (if applicable)
= Gross Profit
- Operating Expenses
= Operating Income
+/- Non-Operating Revenues/Gains or Expenses/Losses (if applicable)
= Income Before Taxes
- Income Taxes
= Net Income or Net Loss
From this format, it is evident that revenues are separate from expenses. Revenues represent the inflow of assets resulting from the sale of goods, provision of services, or other business activities. Expenses, on the other hand, represent the outflow of assets incurred to generate revenues and operate the business. The difference between revenues and expenses ultimately determines whether the company earns a profit or incurs a net loss.
In conclusion, profit represents the positive financial gain when revenues exceed expenses, while net loss occurs when expenses exceed revenues. The calculation of profit and net loss involves comparing revenues and expenses within the income statement.
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How does Crayola differ from Acco Brands, Newell Brands, and Pilot Corportion? Please include relevant references. TIA!
Crayola differs from Acco Brands, Newell Brands, and Pilot Corporation in terms of their core business focus and product offerings. Crayola is primarily known for its art supplies and coloring products, while Acco Brands specializes in office and school supplies, Newell Brands offers a wide range of consumer and commercial products, and Pilot Corporation focuses on writing instruments. Each company has its unique brand identity, target markets, and product portfolios, catering to different consumer needs and preferences.
Crayola is a well-known brand in the art supplies industry, recognized for its vibrant colors and innovative products for children and adults. They offer a diverse range of coloring tools, including crayons, markers, colored pencils, and paints, as well as art sets and craft materials.
Acco Brands, on the other hand, focuses on office and school supplies, offering products such as binders, staplers, paper shredders, and presentation tools. Their portfolio includes well-known brands like Swingline, Mead, and Five Star, catering to the needs of professionals and students.
Newell Brands is a diversified consumer goods company with a broad range of products in categories such as home appliances, writing instruments, baby products, and kitchenware. They own popular brands like Sharpie, Rubbermaid, Graco, and Calphalon, among others, serving various consumer segments.
Pilot Corporation specializes in writing instruments, including pens, markers, and mechanical pencils. They are known for their high-quality writing instruments and innovative pen technologies, offering a wide range of products for everyday writing needs.
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cements ignments des cussions abus om rary Research urse Evaluation U Question 12 6 pts Based on the corporate valuation model, the value of ABC Company's. operations is $1,308 million. The company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. The balance. sheet also shows $90 million in accounts payable, $120 million in notes payable, $340 million in long-term debt, $53 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. If ABC Company has 36 million shares of common shares outstanding. what is the best estimate of the stock price per share? Round your answer to two decimal places of dollar, but ignore dollar and million in your answer, e.g., xx.xx. (Hint: Refer to numerical examples in Corporate Valuation Model.)
The best estimate of ABC Company's stock price per share is approximately $36.33.
In order to calculate the stock price per share using the corporate valuation model, we need to subtract the company's total liabilities from its total equity and divide the result by the number of outstanding shares.
First, we calculate the company's total liabilities by summing the accounts payable, notes payable, long-term debt, and preferred stock, which amounts to $603 million ($90 million + $120 million + $340 million + $53 million).
Next, we calculate the company's total equity by summing the retained earnings and total common equity, which amounts to $980 million ($180 million + $800 million).
Subtracting the total liabilities from the total equity gives us $377 million ($980 million - $603 million).
Finally, we divide the result by the number of outstanding shares, which is 36 million.
Therefore, the best estimate of the stock price per share is approximately $36.33 ($377 million / 36 million).
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Select all the players acting as DEFICIT units below A grad student looking for a Studen Loan A grad student who just got paid in her internship opening a Robin Hood investment account A grad student getting an Auto Loan A grad student depositing the $3,000 he got from selling his car into the bank. General Motors issulng new Bonds General Motors issuing new Common Shares
These latter players are seeking to acquire funds from external sources rather than experiencing a personal deficit.
The players acting as DEFICIT units are:
1. A grad student looking for a Student Loan: This individual is seeking a loan to cover educational expenses, indicating a deficit in their current funds.
2. A grad student getting an Auto Loan: This individual is borrowing money to purchase a car, suggesting a deficit in their available funds to afford the vehicle.
3. Both of these grad students are seeking external financial assistance to fulfill their needs, indicating a deficit in their personal resources. On the other hand, the other players mentioned are not acting as DEFICIT units:
4. A grad student who just got paid in her internship opening a Robin Hood investment account: This individual is investing their earned money, indicating a surplus of funds.
5. A grad student depositing the $3,000 he got from selling his car into the bank: This individual is depositing money into the bank, suggesting a surplus of funds.
6. General Motors issuing new Bonds: General Motors is raising funds by issuing bonds, indicating a need for external capital.
7. General Motors issuing new Common Shares: General Motors is raising funds by issuing shares, indicating a need for external capital.
These latter players are seeking to acquire funds from external sources rather than experiencing a personal deficit.
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Ref/Def Assignment Topic: Using the UK and Japan as comparative examples, critically appraise the extent to which it is possible to transfer HR policies and practices across countries. (1500 words; plus/minus 10%).
Cross-border transfer of HR policies and practices has been a critical area of interest in the field of International Human Resource Management (IHRM) for many years.
This study seeks to compare and contrast the transfer of HR policies and practices across countries using the United Kingdom and Japan as comparative examples. The article begins with an introduction, followed by a literature review that highlights the significance of the study, and an overview of the HRM practices in the UK and Japan.
The article will then address the possible challenges of cross-border transfer of HR policies and practices across countries and the effectiveness of such a transfer. It will also include a discussion on the cultural differences between the UK and Japan. Finally, the article will conclude with recommendations on how companies can manage cross-border transfer of HR policies and practices.
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which of these groups could be viewed as a mixed or hybrid organization? a. a group advocating for clean air and water b. groups fighting discrimination on the basis of disability in employment and housing c. a group that focuses on maintaining agricultural subsidies d. a multinational corporation focused on lowering taxes e. labor unions that seek workers' compensation packages for members
Based on the given options, the group that could be viewed as a mixed or hybrid organization is option B: groups fighting discrimination on the basis of disability in employment and housing.
This group can be considered mixed or hybrid because it combines advocacy for a specific cause (fighting discrimination on the basis of disability) with multiple aspects and approaches. They not only advocate for the rights of disabled individuals in employment and housing but also work towards creating awareness, providing support, and promoting inclusivity in various sectors of society. They may engage in activities such as lobbying for policy changes, conducting education and training programs, providing legal assistance, and collaborating with other organizations to achieve their objectives.
In conclusion, groups fighting discrimination on the basis of disability in employment and housing can be viewed as a mixed or hybrid organization due to their multifaceted approach and involvement in various activities aimed at addressing and eliminating disability discrimination.
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Blue Wave Co. predicts the following unit sales for the coming four months: September, 4,000 units, October, 4,300 units, November, 6,100 units, and December, 8,000 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's sales. At the end of August, the company had 3,300 finished units on hand. Prepare a production budget for each of the months of September, October, and November.
The given problem is about calculating the production budget for the months of September, October, and November. Blue Wave Co. predicts sales of 4,000 units in September, 4,300 units in October, 6,100 units in November, and 8,000 units in December.
Calculation of the production budget for September:
Expected unit sales in September = 4,000 units.
Finished goods inventory for October = 60% of the next month's sales = 60% × 4,300 = 2,580 units.
Units needed for September = expected unit sales + required inventory - beginning inventory = 4,000 + 2,580 - 3,300 = 3,280 units.
Calculation of the production budget for October:
Expected unit sales in October = 4,300 units.
Finished goods inventory for November = 60% of the next month's sales = 60% × 6,100 = 3,660 units.
Units needed for October = expected unit sales + required inventory - beginning inventory = 4,300 + 3,660 - 2,580 = 5,380 units.
Calculation of the production budget for November:
Expected unit sales in November = 6,100 units.
Finished goods inventory for December = 60% of the next month's sales = 60% × 8,000 = 4,800 units.
Units needed for November = expected unit sales + required inventory - beginning inventory = 6,100 + 4,800 - 3,660 = 7,240 units.
Therefore, the production budget for September, October, and November are 3,280 units, 5,380 units, and 7,240 units, respectively.
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If TC \( =202+169 Q \), what is the marginal cost when \( Q=23 \) ? Enter as a value.
The marginal cost when Q = 23 is 169.
The marginal cost represents the additional cost incurred by producing one more unit of output. To find the marginal cost, we need to take the derivative of the total cost (TC) function with respect to quantity (Q). In this case, TC = 202 + 169Q.
Taking the derivative of TC with respect to Q, we find that the marginal cost (MC) is equal to the coefficient of Q, which is 169. Therefore, when Q = 23, the marginal cost is 169.
This means that producing one additional unit of output when the quantity is 23 will result in an additional cost of 169. The marginal cost represents the rate of change of total cost with respect to quantity and is an important concept in analyzing production decisions and optimizing resource allocation. In this case, with a linear cost function, the marginal cost remains constant at 169 regardless of the level of output.
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Between career and family life choose either one. Because they are not compatible together. Do you agree or not? Discuss in details.
I do not agree that career and family life are incompatible. They can be successfully balanced with proper planning and prioritization.
Balancing a career and family life is indeed a complex task, but it is not impossible. With effective time management and a clear understanding of personal and professional priorities, individuals can find harmony between their work and family responsibilities.
Firstly, it is important to establish open communication and support within the family. By involving all family members in discussions about career goals, schedules, and responsibilities, a supportive environment can be created. This allows for understanding and cooperation, enabling individuals to pursue their professional aspirations while still fulfilling their family obligations.
Secondly, setting realistic expectations and boundaries is crucial. It is essential to establish clear work hours, allocate dedicated time for family activities, and create a healthy work-life balance. This may involve making certain sacrifices and trade-offs, but it is possible to find a middle ground that satisfies both career ambitions and family needs.
Thirdly, utilizing available resources and support systems can significantly alleviate the challenges of juggling career and family life. This can involve outsourcing certain tasks, seeking help from family members or childcare services, or exploring flexible work arrangements. Employers are increasingly recognizing the importance of work-life balance and offering options such as remote work or flexible hours.
In conclusion, while balancing a career and family life requires effort and careful planning, it is not an either-or choice. By establishing effective communication, setting boundaries, and utilizing available resources, individuals can successfully navigate the challenges and find compatibility between their professional and personal lives.
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Define and explain the three levels of product features and then
discuss the two broad categories all products fall into
Product features refer to the attributes, traits, or qualities of a product that are important to the customer. These features can be classified into three different levels: core benefits, actual product, and augmented product.
Core Benefits: This is the first level of product features. It refers to the basic need that the product satisfies. For example, the core benefit of a watch is that it tells time. The core benefit is what the customer is really buying. It refers to the physical characteristics of the product such as the brand name, quality, design, and packaging. It is what the customer sees when they purchase the product.
Augmented Product: This is the third level of product features. It refers to the additional services and benefits that come with the product. This includes things like warranties, customer service, and after-sales support.All products can be classified into two broad categories: consumer products and industrial products.Consumer products are products that are used by the end consumer.
They can be further classified into four subcategories: convenience products, shopping products, specialty products, and unsought products. Industrial products, on the other hand, are products that are used in the production of other goods and services. These products can be further classified into three subcategories: materials and parts, capital items, and supplies and services.
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Walter White is a notorious producer of methamphetamine. He is very precise and requires exactly 1 pound of Chemical X and 3 pounds of Chemical Y in each batch that he makes. Any ratio other than 1:3 yields an imperfect batch that Walter insists on throwing away. (a) (4) Write down a possible utility function for Walter as a function of q, and q, if his utility is equal to the number of batches that he makes - be careful with the coefficients here. (b) (3) Graphically illustrate a few of Walter White's indifference curves based on your utility func- tion in part (A). Which property of indifference curves do Walter's violate? (c) (4) If Walter has Y to spend on ingredients and prices are p, and py, what is Walter's demand for each product? (d) (4) Based on your answer to (C), how many batches can Walter produce if Y = $1,000, p = $40, and p = $20? (e) (3) At his optimal bundle that you calculated in part (D), what is Walter's MRS: how many pounds of Chemical Y would he be willing to sacrifice for one more pound of Chemical X?
Walter's utility function: U(q, q) = q, indifference curves violate transitivity, demand for each product depends on budget and prices, Walter can produce 25 batches, MRS is 3 pounds of Chemical Y for one more pound of Chemical X.
What are the components of Walter White's utility function, indifference curves, demand for each product, the maximum number of batches he can produce given specific budget and prices, and his marginal rate of substitution?The given question presents a scenario involving Walter White, a methamphetamine producer, and various aspects of his decision-making process.
Part (a) asks for a utility function that represents Walter's satisfaction as the number of batches he makes, with careful consideration of coefficients.
Part (b) requires graphical representation of indifference curves based on the utility function, highlighting any violations of indifference curve properties.
Part (c) involves determining Walter's demand for each product based on his budget constraint and prices.
Part (d) asks for the maximum number of batches Walter can produce given specific budget and price values.
Finally, part (e) inquires about Walter's marginal rate of substitution (MRS), representing the willingness to sacrifice Chemical Y for one more pound of Chemical X at the optimal bundle calculated in part (d).
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Required information [The following information applies to the questions displayed below.] This year Jack intends to file a married-joint return. Jack received $173,000 of salary and paid $9,200 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $5,350 and $28,800 of alimony to his ex-wife, Diane, who divorced him in 2012 . (Round your intermediate calculations and final answer to the nearest whole dollar amount.) a. What is Jack's adjusted gross income? o. Suppose that Jack also reported Income of $10,750 from a half share of profits from a partnership. Disregard any potentlal selfemployment taxes on this income. What AGI would Jack report under these circumstances?
Calculation of Adjusted Gross Income The calculation of Jack's adjusted gross income is as follows:$173,000 (salary)-$9,200 (Interest paid on loans used to pay qualified tuition costs for Deb) -$5,350 (Moving expenses) -$28,800 (Alimony paid) = $129,650.
Therefore, Jack's adjusted gross income is $129,650.2. Calculation of AGI with additional income of $10,750Suppose that Jack also reported Income of $10,750 from a half share of profits from a partnership. The calculation of AGI with additional income of $10,750 is as follows: AGI = $129,650 + $10,750= $140,400Therefore, Jack's AGI with an additional income of $10,750 is $140,400.
Adjusted Gross Income (AGI)Adjusted Gross Income (AGI) is the total amount of income earned from all sources, including wages, salaries, tips, interest, dividends, rental income, and capital gains, minus specific deductions such as contributions to individual retirement accounts, alimony payments, and student loan interest. AGI is a crucial metric used to determine an individual's eligibility for specific tax credits and tax deductions.
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Answer the questions below as it relates to Targeting by Decile Grid: The Market Basket consists of the top 5 companies in the 3D printer business. In Q4 2019, the total number of 3D printers sold within the Market Basket was 10,000. Your company sold 2,000 printers which represent a 20% Market Share of this Market Basket. Assume that the Marketing Department has determined it will focus its efforts on 1,000 target accounts (customers) Using your knowledge of Targeting by Decile (3 Rows of 10 Columns (boxes) each); Title the first row AND complete the 10 columns in this row Title the second row AND complete the 10 columns in this row Title the third row AND complete the 10 columns in this row (the information in these 10 columns is NOT known with specific certainty but make it DIRECTIONALLY CORRECT)
The companies are listed alphabetically as placeholders, and the actual prioritization may vary based on various factors such as market analysis, customer data, and business strategies.
Title: Targeting by Decile Grid
Row 1: High Priority Accounts
Column 1: Company A
Column 2: Company B
Column 3: Company C
Column 4: Company D
Column 5: Company E
Column 6: Company F
Column 7: Company G
Column 8: Company H
Column 9: Company I
Column 10: Company J
Row 2: Medium Priority Accounts
Column 1: Company K
Column 2: Company L
Column 3: Company M
Column 4: Company N
Column 5: Company O
Column 6: Company P
Column 7: Company Q
Column 8: Company R
Column 9: Company S
Column 10: Company T
Row 3: Low Priority Accounts
Column 1: Company U
Column 2: Company V
Column 3: Company W
Column 4: Company X
Column 5: Company Y
Column 6: Company Z
Column 7: Company AA
Column 8: Company BB
Column 9: Company CC
Column 10: Company DD
The specific information in the 10 columns of each row is not known with certainty, but the general direction of prioritization is provided. The companies are listed alphabetically as placeholders, and the actual prioritization may vary based on various factors such as market analysis, customer data, and business strategies.
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Low Balance
Low Balance Medium Balance High Balance
Opening & closing accounts: $ 225,000 $ 45,000 $ 30,000
Issuing monthly statements: $ 337,500 $ 75,000 $ 37,500
Processing transactions $ 2,700,000 $ 300,000 $ 75,000
Customer inquiries (via phone) $ 300,000 $ 180,000 $ 120,000
ATM services $ 1,417,500 $ 210,000 $ 52,500
Total Cost Per Category $ 4,980,000 $ 810,000 $ 315,000
3. For each customer category, find the cost per account based on the total cost per account category and the # of checking accounts in that category. Cost per Account Low Balance Medium Balance High Balance 4. Based on the calculations above, which customer group is most profitable for the bank? Explain why.
The cost per account for low balance, medium balance, and high balance customers are $[tex]49.80[/tex] , $[tex]40.50,[/tex] and $[tex]63.00[/tex] respectively.The most profitable customer group for the bank is the medium balance group, because their cost per account is the lowest.
The High Balance group has the lowest cost per account because they have the fewest number of accounts. They also have the lowest average balance, which means that they generate less in fees.
However, they still generate a significant amount of interest income, which outweighs the costs.
Low Balance
Total cost per category: $4,980,000
Number of checking accounts: 100,000
Cost per account: $49.80
Medium Balance
Total cost per category: $810,000
Number of checking accounts: 200,000
Cost per account: $40.50
High Balance
Total cost per category: $315,000
Number of checking accounts: 50,000
Cost per account: $63.00
As you can see, the medium balance customer group has the lowest cost per account, followed by the low balance customer group and the high balance customer group.
Therefore, the medium balance customer group is the most profitable customer group for the bank.
Here is the calculation for the cost per account for the medium balance customer group:
Cost per account = Total cost per category / Number of checking accounts
Cost per account = $810,000 / 200,000
Cost per account = $40.50
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