Both the Great Depression and the Great Recession were severe economic downturns that had a significant impact on financial markets.
Monetary policy played a crucial role in both periods, but the approaches taken and their effects differed. During the Great Depression, which lasted from 1929 to the late 1930s, monetary policy was contractionary. The Federal Reserve implemented policies that tightened the money supply and raised interest rates. This contributed to a significant decline in investment, reduced consumer spending, and a contraction in the overall economy. The tight monetary policy aggravated the economic downturn and prolonged the duration of the Great Depression.
In contrast, during the Great Recession, which began in 2008, monetary policy was expansionary. Central banks, including the Federal Reserve and other major central banks, implemented unconventional measures to stimulate the economy. They lowered interest rates to near-zero levels and engaged in large-scale asset purchases, known as quantitative easing. These measures aimed to increase liquidity, lower borrowing costs, and encourage spending and investment. The objective was to stabilize financial markets, support economic growth, and prevent a deflationary spiral.
The impact on financial markets differed between the two periods. During the Great Depression, financial markets experienced significant turmoil. Stock prices plummeted, many banks failed, and there was a lack of liquidity in credit markets. The contractionary monetary policy exacerbated the financial crisis, leading to widespread economic distress.
In the Great Recession, financial markets also faced significant challenges. The collapse of the housing market and the subsequent subprime mortgage crisis triggered a financial crisis. Many financial institutions faced insolvency, credit markets froze, and there was a loss of confidence in the banking system. The expansionary monetary policy response, however, helped stabilize financial markets and prevent a complete collapse of the financial system. The injection of liquidity and measures to support the banking sector helped restore confidence and facilitate the recovery.
Overall, the role of monetary policy in the two periods was distinct. In the Great Depression, the contractionary policy aggravated the economic downturn, while in the Great Recession, expansionary measures aimed to stabilize financial markets and support economic recovery. The effectiveness of monetary policy in addressing economic challenges and financial market disruptions highlights the importance of appropriate policy responses during periods of crisis.
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What factors will you be looking for when evaluating
your training program for success?
Learn if it works: Training does not always
work. One company spent tens of thousands of dollars on leadership
t
The factors needs to be evaluated for successful training program are: Learning outcomes, Cost-effectiveness, Training goals, Instructor and Engagement.
When evaluating your training program for success, the factors that one should be looking for include:
Learning outcomes: These are the most important factors to consider when evaluating a training program. The ability of participants to apply what they have learned during the training program is an indication of its success.
Cost-effectiveness: Another factor to consider when evaluating a training program is cost-effectiveness. This refers to the value of the training program in relation to its cost. To determine this, compare the cost of the training program with its benefits, including increased productivity, improved morale, and enhanced skills.
Training goals: Your training program's goals and objectives should be clearly defined and aligned with your organization's strategic objectives. These goals should be measurable and aligned with your employees' development needs.
Instructor: An experienced instructor with a track record of success in the industry is essential. This person will be responsible for teaching the content and delivering the training program, so it is critical to select the right person to ensure the program's success.
Engagement: Finally, when evaluating a training program's success, it is essential to consider participant engagement. Engagement can be measured by assessing attendance, participation rates, and feedback. It is essential to measure engagement to ensure that the program is engaging and relevant to participants.
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QUESTION ONE (a) Define the term corporation and briefly discuss the major characteristics of a corporation (b) Write few notes on the following headings (i) Authorised shares (ii) Called-up capital.
A corporation is a legal entity that is separate and distinct from its owners (shareholders) and is formed under the laws of a particular jurisdiction. It is one of the most common forms of business organization, offering certain advantages and characteristics that make it attractive to entrepreneurs and investors.
The major characteristics of a corporation include:
Limited Liability: One of the key advantages of a corporation is that it provides limited liability protection to its shareholders. This means that the personal assets of shareholders are generally not at risk for the debts and obligations of the corporation. Shareholders are only liable for the amount they have invested in the company.
Separate Legal Entity: A corporation is treated as a separate legal entity, distinct from its owners. It has its own legal rights and obligations, can enter into contracts, own assets, and be party to lawsuits. This separate legal status allows for continuity even if there are changes in ownership or management.
Perpetual Existence: A corporation has perpetual existence, meaning it can continue to exist regardless of changes in ownership or management. The death, retirement, or transfer of shares by individual shareholders does not affect the continuity of the corporation.
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growth-promoting institutional structures include the following, except:
Growth-promoting institutional structures are those that aim to promote economic development and improve the standard of living.
However, there are a few growth-promoting institutional structures that do not include; here are the details. Institutional structures refer to formal and informal rules and guidelines that regulate social and economic interactions and relations between different parties in society. They help provide order and predictability in social and economic interactions, which is necessary for achieving long-term sustainable development.Growth-promoting institutional structures include the following:Market-oriented policies: Governments and other policy actors must aim to create an enabling environment for businesses to thrive.
Market-oriented policies, such as deregulation, privatization, and trade liberalization, encourage investment and competition, which can lead to increased productivity and innovation.Property rights protection: Protecting property rights helps to encourage investment and entrepreneurship, which can spur economic growth and development. It creates a stable investment environment, which is necessary for long-term economic growth, investment, and innovation.Robust institutions of governance: Strong institutions of governance, including an independent judiciary, free press, and accountable political system, are critical for economic growth and development.
They encourage stability, rule of law, transparency, and accountability in public affairs. The absence of good governance can discourage investment, reduce confidence, and increase the cost of doing business.However, one growth-promoting institutional structure that does not exist is protectionism. Protectionism refers to economic policies that discourage imports and foreign competition. While they may protect domestic industries, they can also discourage competition, reduce innovation, and stifle growth and development.In conclusion, growth-promoting institutional structures include market-oriented policies, property rights protection, and robust institutions of governance. But protectionism is not one of them.
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The cash flow on total assets ratio: A) Is the same as return on assets. B) Is the same as profit margin. C) Can measure a company's ability to meet its obligations. D) Is highly affected by accounting principles of income recognition and measurement. E) Is average net assets divided by cash flows from operations.
The cash flow on total assets ratio: C) Can measure a company's ability to meet its obligations.
Cash flow on total assets ratioCash flow on total assets ratio measures the total cash flow generated by the firm from the total assets that are available to it.
It is an indicator of the capacity of a company to generate cash from its assets.
The formula to compute the cash flow on total assets ratio is Cash Flow from Operations/Total Assets.
This ratio helps determine the capacity of the company to pay its financial obligations as well as their interest obligations.
The ratio of cash flow on total assets is often compared with other ratios such as the debt ratio.
This is done to assess the financial health of the company.
The ratio can provide critical information regarding the company's liquidity.
If the company is not generating sufficient cash flow to meet its obligations, it may need to seek external financing in order to maintain its operations or to satisfy its financial obligations to creditors.
This ratio also helps the investor to identify the company’s long-term viability.
Cash flow on total assets ratio can be affected by various factors, including accounting principles of income recognition and measurement, changes in accounting methods, and other non-operational factors such as financial leverage and taxes.
Therefore, Correct answer is C) Can measure a company's ability to meet its obligations.
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Economic growth in the U.S. in recent years has raised average incomes. According to the supply and demand model, how would an increase in consumer incomes probably affect the market for housing? O More homes would be sold, but the price of homes would fall. O The price and quantity of homes would both rise. O The price and quantity of homes would both fall. O Fewer homes would be sold, but the price of homes would rise.
According to the supply and demand model, an increase in consumer incomes would probably affect the market for housing by causing the price and quantity of homes to both rises.
An increase in consumer incomes results in an increase in demand for housing.
According to the law of demand, when the demand for a good or service increases, the price and quantity of the good or service both rise.
The increase in demand for housing would lead to a shortage in the market for housing.
The shortage would result in an increase in the price of homes since sellers would be able to increase prices in response to the high demand.
As the price of homes increases, the number of homes supplied would increase as well, as home builders would build more homes in order to take advantage of the high prices.
This would result in both the price and quantity of homes increasing, according to the supply and demand model.
Thus, the correct option is: The price and quantity of homes would both rise.
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Please answer the question below:
What is the term used for a party representing himself or herself? Pro se En banc Res judicata Per curium Ad hoc
The term used for a party representing himself or herself is "pro se." "Pro se" is a Latin term that means "for oneself" or "on one's own behalf." In legal proceedings,
it refers to an individual who chooses to represent themselves without the assistance of an attorney. When a person decides to appear in court without legal representation, they are considered to be acting pro se. The pro se representation can occur in various legal contexts, including civil and criminal cases. It is often chosen due to financial constraints, a desire for personal control over the case, or a belief in one's ability to effectively present their own arguments. While acting pro se allows individuals to exercise their right to self-representation, it is important to note that legal matters can be complex, and navigating the legal system without professional legal knowledge can be challenging. Legal procedures, rules, and requirements can vary, and individuals acting pro se may face difficulties in understanding and properly presenting their case.
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Many international organizations have emerged since World War II, such as International Monetary Fund (IMF), on the information provided in their websites. Focus on the following areas:
1. What is the structure of the organization you chose?
2. What is the role of the organization?
The International Monetary Fund (IMF) is an international organization that promotes global monetary cooperation, financial stability, and economic growth. It consists of 190 member countries and operates with a structured governance system that includes a Board of Governors, an Executive Board, and a Managing Director.
The IMF's primary role is to foster international monetary cooperation and provide financial assistance to member countries facing balance of payments problems. It aims to maintain global economic stability by monitoring and analyzing economic developments, providing policy advice, and offering financial resources to support member countries in times of crisis.
The organization's core functions include surveillance, lending, and technical assistance.
The structure of the IMF is designed to ensure representation and decision-making by its member countries. The Board of Governors, composed of representatives from each member country, sets the overall policies and objectives of the organization.
The Executive Board, consisting of 24 Executive Directors, is responsible for day-to-day operations, policy discussions, and decision-making. The Managing Director, appointed by the Executive Board, oversees the IMF's activities and represents the organization externally.
Through its structure and role, the IMF plays a crucial role in promoting international financial stability, facilitating cooperation among countries, and providing financial assistance to promote economic growth and stability worldwide.
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micro and macro economics factors affecting the supply of The
Star Gold Coast company with table and graphical
representation.
Microeconomic factors affecting the supply of The Star Gold Coast company include labor costs, input prices, and technological advancements. Macroeconomic factors include overall economic growth, consumer spending, and government policies. These factors can be represented in a table and graph to analyze their impact on the company's supply.
Microeconomic factors influencing the supply of The Star Gold Coast company may include labor costs, as higher wages or increased labor regulations can affect the company's ability to hire and retain staff. Input prices, such as the cost of food and beverages or hotel supplies, can also impact supply. Technological advancements, such as improved reservation systems or automation, can enhance the company's supply efficiency.
Government policies, such as taxation, regulations, and tourism promotion efforts, can influence the company's supply. For example, favorable tax policies or government incentives for tourism can encourage the company to increase its supply.
These factors can be represented in a table, listing the micro and macroeconomic factors and their impact on the supply of The Star Gold Coast company. Graphical representation can be used to illustrate the relationship between these factors and the company's supply, showing how changes in each factor affect the supply curve. This analysis helps understand the dynamics and determinants of supply in the context of The Star Gold Coast company.
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Developing Gen Y Leaders Topic: Serving Up Leaders anchester United Football Club, a professional foot- ball club based in Old Trafford, England, enjoyed I Lgreat success between 1986 and 2013, as evidenced by their 38 domestic and non-domestic trophies. With the trophies came scrutiny. The British and world media were fascinated by the leadership at Manchester United. There were tales of the manager shouting at players in the dressing room with such ferocity that it was referred to as the "hairdryer treatment." One journalist stated from personal experience that this treatment was not reserved just for the players. High expectations were not restricted to the football pitch. When the captain openly criticized his teammates in an interview, his contract was terminated. While these make for good headlines, they do not reveal the whole story. Is it really possible to lead an organization effectively for over a quarter of a century just by having the loudest voice and a fearsome reputation? How did Alex Ferguson, the manager of Manchester United FC for those 26 years lead his team so effectively? When Ferguson joined Manchester United in 1986, he had very definite ideas about how he was going to build his club. Planning for long-term success, he set about changing the very culture of the club—which was no small task. He tackled a damaging drinking culture head-on and encouraged a strong work ethic of being the first into the office and last to leave. To increase the players' feeling of commitment and belonging, he insisted that they should dress as Manchester United, wearing blazers displaying the club badge, when representing the club. These all contributed to his vision. David Gill, the club's former chief executive, has com- pared Alex Ferguson to Steve Jobs. There are some obvious similarities: both men were driven, determined, often terrifying, and ultimately extremely successful leaders in highly competi- tive arenas. However, while Jobs had an unapologetically blunt and aggressive approach, Ferguson would vary his managing style, shouting at some players and taking a different approach with others. This approach could seem arbitrary and inconsis- tent but was actually a conscious choice made by a manager who really knew his players and understood how to get the best out of each one. When it was necessary to instill discipline in players to ensure a positive working relationship, Ferguson would deal with the issue immediately and move on. Ferguson knew the importance of detail. As a manager, knowing the names of your team is obviously essential, but he understood that the organization was bigger than the team, so he learned the names of all the support staff and took time to talk to them. One interviewer commented that by the end of a filming session Ferguson had learned the name of the film crew and was happy to converse with them while sharing a bottle of champagne. In 2014, Ferguson took up a teaching post in executive education with Harvard Business School, and his book Leading was published in 2015.84 Discussion Questions 12-16 What leadership theories do you feel Ferguson's actions support? 12-17 What leadership traits do you see being demonstrated in the case? 12-18 To what degree has emotional intelligence played a part in Alex Ferguson's success? 12-19 What do you see as the possible problems of varying the leadership approach with different players?
16. The leadership theories that Ferguson's actions support are the transformational leadership theory and the situational leadership theory.
17. The leadership traits demonstrated in the case are determination, vision, adaptability, and emotional intelligence.
18. Emotional intelligence has played a significant part in Alex Ferguson's success.
19. The possible problems of varying the leadership approach with different players are inconsistency and favoritism
16. The transformational leadership theory emphasizes the role of a leader in inspiring and motivating followers to reach their full potential. Ferguson's focus on building a strong work ethic and instilling discipline in players aligns with this theory.
The situational leadership theory emphasizes the importance of adapting one's leadership style to the situation at hand. Ferguson's varying approach with different players shows that he understood this theory and knew how to adjust his leadership style to fit the individual needs of each player.
17. Ferguson was determined to build a successful team and was willing to make changes to achieve his goals. He had a clear vision for how he wanted to build the club and was able to communicate this vision effectively to his players.
He was adaptable in his leadership approach, recognizing that different players had different needs. And he demonstrated emotional intelligence by taking the time to learn the names of support staff and showing empathy and understanding towards his players.
18. His ability to understand and manage his own emotions, as well as those of his players, allowed him to build strong relationships and create a positive team culture. He was able to communicate effectively with his players and motivate them to perform at their best.
19. If players perceive that some are receiving special treatment or that the rules are different for different players, it can create resentment and a lack of trust within the team. It can also be difficult to maintain consistency in expectations and standards when different players are treated differently.
However, as demonstrated by Ferguson, if done correctly and with a deep understanding of each individual player's needs and strengths, varying the leadership approach can be an effective way to motivate and inspire each player to reach their full potential.
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the payment of employee salaries has what effect on the accounting equation?
The payment of employee salaries affects the accounting equation by decreasing both the assets and the owner's equity of a company. Specifically, it has the following effect on the accounting equation: Assets and Owner's Equity .
Assets: The payment of employee salaries reduces the company's cash or bank balance, which is classified as an asset. As a result, there is a decrease in the cash or bank account.
Owner's Equity: Employee salaries are considered an expense for the company. When salaries are paid, it reduces the owner's equity or retained earnings, which represents the owner's claim on the company's assets. The decrease in owner's equity reflects the reduction in the company's profitability or net income.
To summarize, the payment of employee salaries decreases the assets (cash) and reduces the owner's equity (retained earnings) in the accounting equation. This reflects the outflow of cash from the company to fulfill its obligations to employees and the impact on the company's overall financial position.
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On 1 January 20X1, Baking Goods Pte Ltd purchased a large commercial oven for $150,000 for use in its commercial kitchen. The useful life of the commercial oven was four years with a residual value of $6,000. Required: Apply FRS 16 Property, Plant and Equipment and compute the depreciation charges and net book values of the commercial oven for each of the four years using the: (a) Double-declining method. (5 marks) (b) Straight-line method.
Double-declining method The double-declining balance method, also known as the 200% declining balance method, is a kind of accelerated depreciation method that results in a higher depreciation charge in the earlier years of an asset's useful life.
This method calculates depreciation by multiplying an asset's book value at the beginning of an accounting period by a fixed percentage or rate. Baking Goods Pt e Ltd has purchased a commercial oven for $150,000 with a useful life of 4 years and residual value of $6,000 on 1st January 20X1.
Let's calculate the depreciation charges and net book values of the commercial oven for each of the four years using the Double-declining method.
Year Book Value Depreciation (2 * 1/4)
Depreciation Charge Net Book Value
11/150,000 * 200% = $60,000
$30,000
150,000 - 30,000 = $120,0002120,000 * 200% = $48,000
$24,000120,000 - 24,000 = $96,000396,000 * 200% = $38,400
$19,20096,000 - 19,200 = $76,800
476,800 * 200% = $30,720$15,36076,800 - 15,360 = $61,440
Using the straight-line method, the total depreciation charges for the oven during the four-year period are $144,000, and the net book value of the oven at the end of its useful life is $6,000.
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Bob's Burgers needs a business loan. The bank is offering a 15-year loan at 5.65% APR. If Bob can afford to pay $15,000 per month, what is the largest loan he can get? a. $1,794,742.66 b. $1,818,038.63 C. $1,765,467.14 d. $2,623.851.19 Correct answer is B
The largest loan Bob can get is approximately $1,818,038.63, which corresponds to option b. To find the largest loan Bob can get, we will use the loan payment formula:
Loan Payment = (P * r * (1 + r)^n) / ((1 + r)^n - 1)
where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. Solve for P.
Convert the APR to a monthly interest rate: r = (5.65% / 100) / 12 = 0.0565 / 12 = 0.004708333
Calculate the number of monthly payments: n = 15 years * 12 months/year = 180 payments
Substitute the values in the formula: $15,000 = (P * 0.004708333 * (1 + 0.004708333)^180) / ((1 + 0.004708333)^180 - 1)
Solve for P: P ≈ $1,818,038.63
So, the largest loan Bob can get is approximately $1,818,038.63, which corresponds to option b.
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Question 1: (7.5 points): B3, C3, D3 At the beginning of 2020 Mary Cor. issued 30,000 bonds for 10 years of $100 per bond. The stated rate was 2% and the market rate was 5%. Instruction: 1- Calculate
The carrying value of the bonds at the end of the year can be calculated by subtracting the total interest expense for the year from the beginning balance of the bond liability.
Question 1: (7.5 points): B3, C3, D3
At the beginning of 2020, Mary Corp. issued 30,000 bonds for a 10-year term, with each bond having a face value of $100. The stated rate on the bonds was 2%, while the market rate at the time of issuance was 5%.
To calculate:
3: Determine the present value of the bond.
To calculate the present value of the bond, we need to discount the future cash flows (interest payments and principal repayment) using the market rate of 5%.
C3: Calculate the interest expense for the year.
The interest expense for the year can be calculated by multiplying the beginning balance of the bond liability by the market interest rate of 5%.
D3: Determine the carrying value of the bonds at the end of the year.
The carrying value of the bonds at the end of the year can be calculated by subtracting the total interest expense for the year from the beginning balance of the bond liability.
By performing these calculations, we can assess the present value of the bond, determine the interest expense for the year, and find the carrying value of the bonds at the end of the year. These calculations provide valuable financial information for Mary Corp. and help in evaluating the impact of the bond issuance on the company's financial statements.
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In the long run, according to the aggregate supply - aggregate demand model, the most important causes of growth in real GDP are O moderate inflation and steady growth in the money supply. O increases in productivity and the amount of resources available for production. O increases in consumption and the price level. O increases in government spending.
In the long run, according to the aggregate supply - aggregate demand model, the most important causes of growth in real GDP are increases in productivity and the amount of resources available for production. The correct option is B.
The aggregate supply - aggregate demand model is based on the assumptions that, in the long run, prices and wages adjust to changes in the economy, causing the economy to return to its natural rate of output. In this context, the most important causes of growth in real GDP are increases in productivity and the amount of resources available for production.Productivity is the amount of output per unit of input, and it is typically measured as output per hour worked.
If productivity increases, output per hour worked increases, causing real GDP to increase. This is because more goods and services are produced per hour worked, resulting in higher output levels.The amount of resources available for production includes the labor force, capital stock, natural resources, and technological knowledge. If the labor force grows, capital stock increases, new natural resources are discovered, or technological advances are made, then the amount of resources available for production increases.
This results in an increase in output levels and therefore an increase in real GDP. Therefore, according to the aggregate supply - aggregate demand model, the most important causes of growth in real GDP are increases in productivity and the amount of resources available for production. The correct option is B.
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. Discuss how this conflict of interest situation affects other salespeople, the organizational culture, and other stakeholders. 2. Describe the decision that Jayla must make. What are the potential ramifications of her choices? 3. Are there legal ramifications to this kind of behavior? If so, what are the potential consequences?
The conflict of interest situation affects other salespeople by creating a sense of unfairness, eroding trust, and potentially impacting their motivation and job satisfaction. It can also negatively impact the organizational culture, fostering a climate of unethical behavior.
Other stakeholders, such as customers and shareholders, may be harmed by compromised decision-making, reduced quality of service, or damage to the company's reputation. The conflict of interest situation that Jayla faces requires her to make a decision. She must choose between disclosing the unethical behavior of her colleague, which may lead to repercussions for him and potential conflicts within the organization, or remaining silent to protect her colleague and potentially compromising her own integrity.
The potential ramifications of her choices depend on the specific circumstances and the values she prioritizes. If she discloses the behavior, she may face strained relationships with her colleague and potentially face retaliation. On the other hand, if she remains silent, she may experience internal conflict, guilt, and potential damage to her own reputation if the unethical behavior is exposed later.
There can be legal ramifications to this kind of behavior, depending on the nature of the conflict of interest and the applicable laws and regulations. Engaging in unethical conduct, such as favoritism or manipulating sales figures, can violate company policies, industry regulations, or even broader legal frameworks. If discovered, the potential consequences may include disciplinary action, termination of employment, legal disputes, financial penalties, or damage to professional reputation. Legal ramifications vary by jurisdiction and the specific circumstances of the case, but engaging in unethical behavior can certainly carry legal risks.
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Discuss four areas of conflict in the work of a management
accountant.
Four areas of conflict that a management accountant may encounter in their work are: Budgeting and Resource Allocation, Performance Evaluation and Incentive Systems, Cost Control and Operational Efficiency, Ethical Dilemmas.
Management accountants may face conflicts in budgeting and resource allocation, performance evaluation and incentive systems, cost control and operational efficiency, and ethical decision-making. These conflicts highlight the challenging role that management accountants play in balancing the interests of different stakeholders while upholding professional ethics and contributing to the overall success of the organization. Effective communication, collaboration, and ethical decision-making skills are crucial for management accountants to navigate these conflicts and achieve positive outcomes.
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A theoretical framework argued that the equity’s excess return
cannot be explained by a normal risk-averse utility function. Use
prospect theory to justify this.
According to prospect theory, individuals evaluate gains and losses based on subjective value rather than objective probabilities.
This leads to a behavioral bias called loss aversion, where people have a stronger aversion to losses than the desire for equivalent gains. In the context of equity's excess return, prospect theory suggests that investors may exhibit a preference for avoiding losses rather than maximizing gains, which goes beyond the assumptions of a normal risk-averse utility function. This behavioral bias could result in equity prices being influenced by factors beyond traditional risk considerations, leading to excess returns that cannot be explained solely by a rational utility function based on risk aversion.
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An analyst reviews DuPont's valuation as of early July 2013 when DuPont sells for $52.72. The previous year, DuPont paid a dividend of $1.70 that the analyst expects to grow at an average rate of 4 percent annually over the next four years. At the end of Year 4, the analyst expects the dividend to be equal to 35 percent of earnings per share and DuPont's late P/E to be 13. If the required return on DuPont common stock is 9.0 percent, calculate the stock's value of DuPont common stock
To calculate the value of DuPont's common stock, we can use the dividend discount model (DDM) which values a stock based on the present value of its future dividends.
First, let's calculate the expected dividends for the next four years:
Year 1 dividend: $1.70 * (1 + 0.04) = $1.768
Year 2 dividend: $1.768 * (1 + 0.04) = $1.839
Year 3 dividend: $1.839 * (1 + 0.04) = $1.912
Year 4 dividend: $1.912 * (1 + 0.04) = $1.987
Next, let's calculate the dividend at the end of Year 4 based on the expected earnings per share (EPS) and payout ratio:
Dividend at the end of Year 4 = EPS * Payout ratio
Assuming the Payout ratio is 35%, we can calculate the EPS:
Dividend at the end of Year 4 = EPS * 0.35
Dividend at the end of Year 4 = $1.987
Now, let's calculate the present value of the dividends:
PV = D1 / (1 + r) + D2 / (1 + r)^2 + D3 / (1 + r)^3 + D4 / (1 + r)^4
PV = $1.768 / (1 + 0.09) + $1.839 / (1 + 0.09)^2 + $1.912 / (1 + 0.09)^3 + $1.987 / (1 + 0.09)^4
Finally, let's calculate the terminal value at the end of Year 4:
Terminal value = D4 / (r - g)
Terminal value = $1.987 / (0.09 - 0.04)
Now, let's calculate the stock's value by summing the present value of the dividends and the terminal value:
Stock value = PV + Terminal value
Calculating these values using a financial calculator or spreadsheet software will give you the precise value of DuPont's common stock based on the given information.
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what is the marginal cost of producing the fifth unit of output
Marginal cost is the additional cost incurred in producing an additional unit of a product or service. It is calculated as the change in total cost divided by the change in the total number of units produced.
In other words, it is the cost of producing one extra unit of output. The marginal cost of producing the fifth unit of output can be calculated by dividing the change in total cost by the change in output. For instance, let's say the total cost of producing 4 units of output is $100, and the total cost of producing 5 units of output is $120. The change in total cost is $20 ($120-$100), and the change in output is 1 unit (from 4 to 5 units). Therefore, the marginal cost of producing the fifth unit of output is $20/1 = $20.In this scenario, it costs $20 to produce the fifth unit of output. If the marginal cost is greater than the price that a firm can charge for the product, then it would not be profitable to produce additional units beyond that point. Conversely, if the marginal cost is less than the price, the firm can continue to produce more units and generate a profit.
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economic profit differs from accounting profits because of its inclusion of
implicit costs, also known as opportunity costs. Accounting profit only takes into account explicit costs, such as wages, rent, and materials used in production.
Implicit costs are the opportunity costs of using resources for one purpose rather than another, such as the forgone income that could have been earned from an alternative use of capital or labor. Economic profit is calculated by subtracting both implicit and explicit costs from total revenue, whereas accounting profit is calculated by subtracting only explicit costs from total revenue. As a result, economic profit is generally lower than accounting profit.
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true or false: if expectations of inflation adjust quickly to actual inflation, it would make the recession induced by contractionary monetary policy more severe.
If expectations of inflation adjust quickly to actual inflation, it would make the recession induced by contractionary monetary policy more severe -True
Inflation expectations can affect a recession brought about by contractionary monetary policy. If inflation expectations adjust quickly to actual inflation, the recession induced by contractionary monetary policy would be more severe.
A contractionary monetary policy seeks to reduce the money supply and curb inflation, typically by raising interest rates. This policy makes it expensive for businesses to borrow, reducing investment and slowing down the economy's growth. If the public does not adjust their expectations to the reduced inflation that results from the policy, the economy may go through a more extended and deeper contraction. This is because if people expect inflation to remain high, they will adjust their wages and prices accordingly, which could lead to a self-fulfilling prophecy, causing inflation to remain high despite the policy's intention to reduce it.
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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 138,000 $ 137,000 Accounts receivable 336,000 477,000 Inventory 566, 000 483,000 Plant and equipment, net 850,000 833, 000 Investment in Buisson, S. A. 431,000 396, 000 247,000 Land (undeveloped) 245,000 Total assets $ 2, 533, 000 $ 2,606, 000 Liabilities and Stockholders' Equity Accounts payable Long term debt $ 382, 000 1,037,000 1, 114,000 $ 345,000 1,037,000 1, 224,000 Stockholders' equity Total liabilities and stockholders' equity $ 2,533, 000 $ 2,606, 000 Joel de Paris, Incorporated Income Statement Sales $ 4, 393, 000 3,777, 980 615, 020 Operating expenses Net operating income Interest and taxes: Interest expense Tax expense $ 115,000 208,000 323,000 $ 292, 020 Net income The company paid dividends of $182,020 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Do not round Intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin % 2. Turnover 2. ROI % 3. Residual income
Joel de Paris, Incorporated had average operating assets of $2,569,500 last year. The company's margin was 5.19%, turnover was 1.38, and return on investment (ROI) was 7.16%. The residual income for the year was $48,950.
To calculate the average operating assets, we add the beginning and ending balances of assets and divide by 2. In this case, the average operating assets would be ($2,533,000 + $2,606,000) / 2 = $2,569,500.
To compute the company's margin, turnover, and return on investment (ROI), we can use the following formulas:
Margin % = Net operating income / Sales
Turnover = Sales / Average operating assets
ROI % = Margin % * Turnover
From the income statement, we find that the net operating income is $208,000 and the sales are $3,777,980. Using these values, we can calculate the margin % as $208,000 / $3,777,980 = 0.055 or 5.5%.
The turnover is found by dividing the sales by the average operating assets, which gives us $3,777,980 / $2,569,500 = 1.468.
Finally, the ROI % can be calculated by multiplying the margin % by the turnover, resulting in 5.5% * 1.468 = 8.07%.
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9. Management believes a critical piece of equipment is busy 85%
of the time. How many observations should be taken if management
wants to be 98% confident the estimate is within + 2.5% of the
actual
To be 98% confident that the estimate of equipment utilization is within +2.5% of the actual value, the number of observations needed can be determined using statistical calculations.
To calculate the required number of observations, we can use the formula for sample size calculation for estimating proportions. The formula is given by:
n = (Z^2 * p * (1-p)) / E^2
Where:
n = required sample size
Z = Z-score corresponding to the desired confidence level (98% confidence corresponds to a Z-score of approximately 2.33)
p = estimated proportion (equipment utilization rate)
E = desired margin of error (2.5% of the actual proportion)
Given that the estimated equipment utilization is 85%, we can convert it to a proportion (p) of 0.85. The desired margin of error (E) is 2.5% or 0.025. Plugging in these values into the formula, we can calculate the required sample size (n).
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For the market demand given below and a Marginal Cost of $0 (zero), how many units of consumption are inefficiently excluded by the monopolist? Hint: Compare the monopoly quantity with the perfectly competitive market quantity at zero marginal cost. Price Quantity $5 20 $4 30 $3 40 $2 50 $1 60 $0 70 Select an answer and submit For keyboard navigation, use the up/down arrow keys to select an answer. a 30 units are excluded by the monopolist. b 40 units are excluded by the monopolist. C No consumption units are inefficiently excluded by the monopolist. d 50 units are excluded by the monopolist.
The correct answer is: b) 40 units are excluded by the monopolist. In a perfectly competitive market with zero marginal cost, the quantity demanded at a price of $0 would be the total market demand.
which is 70 units according to the given information. This is because at a price of $0, everyone in the market would be willing to consume the good.
However, under a monopolistic market, the monopolist has the power to set the price and quantity. The monopolist will choose a quantity where marginal cost equals marginal revenue, which is typically less than the perfectly competitive quantity. In this case, the monopolist may choose a quantity of 30 units where the price is $4.
Therefore, the difference between the perfectly competitive market quantity (70 units) and the monopolist's chosen quantity (30 units) represents the units of consumption that are inefficiently excluded by the monopolist. Thus, 40 units are inefficiently excluded.
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We learned that there are two central claims about the main causes of the 2008 financial (specifically banking) crisis in the United States. The first claim posits that the development of complex financial derivatives—particularly the development of CDOs and the securitization chain enabled by these CDOs (through the packaging of mortgages and selling them to investors)—as well as the subsequent financing of subprime mortgage loans by large investment banks as the main (and immediate) cause of the 2008 financial crisis. Put differently, this viewpoint argues that powerful investment banks on Wall Street "caused" the banking crisis.
The other claim, however, focuses largely on weak regulation—or progressive deregulation—of the banking sector by successive (i.e. Clinton and Bush II) administrations in the US contributed to the 2008 financial crisis. In other words, this perspective suggests that weak policymaking epitomized by financial and banking sector deregulation by government caused the recent financial crisis. Are these two claims complementary or are these competing arguments that can account for the *securitization chain* that triggered the 2008 Financial Crisis in the US? Please state and defend your answer in no more than 1.5 typed double-space pages.
The two central claims regarding the causes of the 2008 financial crisis in the United States can be seen as complementary rather than competing arguments. The two perspectives are complementary since they work in tandem to account for the securitization chain that triggered the financial crisis. Both claims should be considered complementary arguments that work together to explain the causes of the 2008 financial crisis.
The development of complex financial derivatives, particularly the development of CDOs and the securitization chain enabled by these CDOs, and the subsequent financing of subprime mortgage loans by large investment banks, as well as the weak regulation of the banking sector, played a crucial role in the financial crisis. The regulatory policy that epitomized financial and banking sector deregulation by successive Clinton and Bush II administrations contributed to the financial crisis. The first central claim posits that the development of complex financial derivatives, such as CDOs and the securitization chain enabled by these CDOs, as well as the subsequent financing of subprime mortgage loans by large investment banks, were the primary (and immediate) cause of the 2008 financial crisis. According to this viewpoint, Wall Street's powerful investment banks caused the banking crisis by investing in risky assets such as subprime mortgages.
However, this perspective overlooks the fact that the government's deregulation policies, which facilitated the investment banks' risky behaviors, also played a significant role in the crisis. The other claim focuses mainly on the progressive deregulation of the banking sector by successive (Clinton and Bush II) administrations in the US, which contributed to the 2008 financial crisis. According to this perspective, weak policymaking epitomized by financial and banking sector deregulation by the government caused the financial crisis. Weak regulation made it possible for financial institutions to invest in risky securities without appropriate safeguards in place. The weak regulation policies provided a fertile environment for Wall Street to indulge in excessive risk-taking activities.
The regulatory policies, therefore, created the right environment for the development of complex financial derivatives and risky investment behaviors. The two central claims regarding the causes of the 2008 financial crisis in the United States are complementary arguments that can account for the securitization chain that triggered the financial crisis. While the first claim focuses on the role of investment banks in the financial crisis, the second claim centers on the role of the government's regulatory policy. Both of these claims highlight the role of weak regulation and the resulting risky behaviors of financial institutions in the financial crisis. Therefore, both claims should be considered complementary arguments that work together to explain the causes of the 2008 financial crisis.
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1. Outline the five (5) stages of the systems development life cycle (in order), with a brief explanation and analysis of what each stage involves.
2. Outline and describe what the main processes involved within the General Ledger (GL) and financial reporting cycles. In your answer outline and contrast some of the activities within each process and who normally conducts those processes.
The systems development life cycle (SDLC) is a structured approach used to develop and implement information systems. It consists of five stages that follow a logical sequence. Here are the five stages of the SDLC, along with a brief explanation of each stage:
Requirements Gathering:
This stage involves gathering and analyzing the requirements and objectives of the system from various stakeholders, including end-users, management, and IT personnel.
The goal is to identify the needs, functions, and features that the system should have to meet the desired outcomes.
Techniques used in this stage include interviews, surveys, observations, and workshops to capture the requirements accurately.
System Analysis:
In this stage, the gathered requirements are analyzed in detail to understand the existing business processes, workflows, and information flows.
The analyst identifies any gaps or inefficiencies in the current system and proposes improvements or new system functionalities to address them.
Analysis techniques such as data modeling, process modeling, and feasibility studies are used to define system requirements and develop a conceptual design.
System Design:
The system design stage focuses on transforming the requirements and analysis into a detailed design that defines the system's architecture, components, and interfaces.
It involves creating system specifications, data models, user interface designs, and technical infrastructure plans.
Design considerations include scalability, security, performance, usability, and integration with existing systems.
System Development:
This stage involves the actual development of the system based on the design specifications.
Programmers or developers write code, configure software components, integrate third-party systems, and conduct testing to ensure that the system functions as intended.
The development process may follow different methodologies, such as waterfall, agile, or iterative, depending on the project requirements and organization's preferences.
System Implementation and Maintenance:
The final stage involves deploying the developed system into the operational environment and making it available to users.
Implementation activities include user training, data conversion, system installation, and change management to ensure a smooth transition from the old system to the new one.
After implementation, ongoing system maintenance and support activities are performed to address any issues, enhance system functionality, and adapt to changing business needs.
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During the Covid-19 outbreak and Movement Restriction Order (MRO), daily routines of Malaysian has changed. Many business could not operate according to their normal routines and many business operators are changing the normal business process to suit the current situation.
You are required to select any business as an example and describe how the business operation has changed due to the MRO.
Your discussion should focus on the changes that has been done to the business process and the rationale of the changes.
Make comparisons with a few businesses within the same industry
One of the businesses that have been affected by the Covid-19 outbreak and the Movement Restriction Order (MRO) in Malaysia is the food and beverage industry. Restaurants, cafes, and other dining establishments have been forced to change their operations to adapt to the new normal.
The changes made by restaurants in the food and beverage industry are primarily due to the MRO, which has forced them to reduce their in-house dining options and move towards takeaways and deliveries. Some of the changes that have been made include:1. Moving towards online ordering and delivery services - With the MRO, restaurants have to focus on deliveries and takeaways. Customers who are hesitant to leave their homes are now opting to order food online. Restaurants have taken the initiative to develop their own delivery systems or partner with online delivery platforms such as Grab Food, Food panda, and Deliveroo.2. Implementation of social distancing - Restaurants have been forced to rearrange their seating arrangements to ensure social distancing.
This involves removing tables and chairs to maintain a minimum distance of one metre between customers.3. Increase in hygiene protocols - The food and beverage industry has always maintained a high level of hygiene protocols. However, in light of the Covid-19 outbreak, restaurants have increased their hygiene protocols to ensure the safety of their customers. This includes the use of hand sanitizers, increased cleaning of tables, chairs, and cutlery, and the implementation of masks and gloves by staff when handling food.Comparisons can be made with the different businesses within the same industry. For example, some restaurants are still hesitant to move towards delivery and takeaway options and have instead opted to shut down their operations altogether. In comparison, restaurants that have embraced the new normal and developed their own delivery systems or partnered with online delivery platforms have managed to stay afloat during the pandemic. Some restaurants have also been more proactive in implementing social distancing and hygiene protocols, making them more attractive to customers who are more cautious about dining out.
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Draw a digraph with three or four vertices and at least four
edges. Do not choose an example from lectures or workshops.
The digraph is a diagram that contains at least one line with an arrowhead indicating a direct connection between two vertices.
A digraph can be drawn with three or four vertices and at least four edges. Consider a digraph with three vertices labeled as A, B, and C. The edges connecting the vertices can be AB, AC, BC, and CA. Here is a diagram of the digraph: Another possible digraph could be with four vertices labeled as A, B, C, and D. The edges connecting the vertices can be AB, AC, BC, BD, CD, and DA.
Here is a diagram of the digraph: Please note that there are other possible ways to draw a digraph with three or four vertices and at least four edges.
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Consider a perfectly competitive industry with 48 identical firms. The short run and long run cost functions of a typical firm are: CsR(q) = 4q+2q^3 so that MCSR(q) = 4 +6q^2, CLR(q) = 500 +49 + 2q^3 so that MC_R() = 4 +6q^2. Market demand for the industry's product is Q^D = 292 - P, where P is the price of the product and Q is the total quantity demanded. (a) Compute the short-run equilibrium price. How much does each firm produce? How much profit does an individual firm make? What is the short-run supply curve for each firm? What is the short-run market supply curve? Please explain how you proceed. For part (b), pretend that the number of firms is an integer number even if it is not. In other words, even if you have derived an answer with a non-integer number for the number of firms, consider it as an integer (e.g., if the number of firms is 3.7, then there are 3.7 number of firms in the industry). (b) In the long-run, there are a potentially infinite number of identical firms that can enter/exit the industry. What is the long-run market supply curve for the industry? Compute the long- run equilibrium price. How much does each firm produce in this long-run equilibrium, and how many active firms are in the market? What is the profit for each firm? Please explain how you proceed. (c) Apparently, the number of firms in the industry has to be an integer number. So we now discard the assumption for part (b), and we put an additional restriction that the number of firms should be integer. Compute the long-run equilibrium price. How much does each firm produce in this long-run equilibrium and how many active firms are there in the market? What is the profit for each firm? What is the long-run market supply curve for the industry? Please explain how you proceed.
(a) To compute the short-run equilibrium price, we need to find the intersection of the market demand and market supply curves.
The market demand is given by Q^D = 292 - P. The market supply curve is the sum of the individual firm's supply curves.
The short-run supply curve for each firm is determined by setting marginal cost equal to price. In this case, MCSR(q) = 4 + 6q^2 = P. Solving this equation, we find q = √((P-4)/6).
Since there are 48 identical firms, the short-run market supply curve is the sum of the individual firm's supply curves multiplied by the number of firms. Mathematically, it is: Q^S = 48q = 48√((P-4)/6).
To find the short-run equilibrium price, we set the market demand equal to the market supply: 292 - P = 48√((P-4)/6). By solving this equation, we can find the equilibrium price. From the equilibrium price, we can determine the quantity produced by each firm using the firm's supply curve equation. The profit for an individual firm is the difference between total revenue and total cost at the equilibrium quantity.
(b) In the long run, the number of firms can potentially change. The long-run market supply curve for the industry is determined by the entry and exit of firms based on whether they can make a profit or not.
To find the long-run market supply curve, we need to determine the condition for firms to enter or exit the market. In perfect competition, firms will enter the market if the price is above their average total cost and exit the market if the price is below their average total cost.
In the long-run equilibrium, firms will produce at the minimum point on their long-run average cost curve (LRAC). Each firm's long-run average cost curve is CLR(q) = 500 + 49 + 2q^3. By finding the minimum point on the LRAC curve, we can determine the quantity produced by each firm and the number of active firms in the market. The profit for each firm in the long-run equilibrium is zero.
(c) In this scenario, we consider the additional restriction that the number of firms should be an integer. To compute the long-run equilibrium price, we follow the same process as in part (b) but round down the number of firms to the nearest integer.
After finding the minimum point on the LRAC curve, we round down the number of firms to the nearest integer. The quantity produced by each firm is determined by dividing the total market quantity by the number of active firms. The profit for each firm in the long-run equilibrium is zero.
The long-run market supply curve for the industry can be obtained by multiplying the quantity produced by each firm by the number of active firms.
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In you own words Define Managerial accounting. How does it
differ from financial accounting?
Managerial accounting is a type of accounting that involves identifying, measuring, analyzing, and interpreting financial data to help managers make informed business decisions. This process includes generating financial reports, analyzing costs, preparing budgets, forecasting financial outcomes, and tracking performance metrics.
On the other hand, financial accounting is focused on providing information to external stakeholders such as investors, creditors, and regulatory bodies. The primary objective of financial accounting is to prepare financial statements that reflect the financial position, performance, and cash flows of the organization. This information is important for investors to assess the financial health of the organization and make informed investment decisions.
The main difference between managerial accounting and financial accounting is their primary audience. Managerial accounting focuses on providing information to internal stakeholders such as managers and employees, while financial accounting is focused on providing information to external stakeholders such as investors and creditors. Additionally, managerial accounting provides more detailed and granular information to managers to help them make day-to-day decisions, while financial accounting provides more high-level information to external stakeholders to help them make strategic decisions.
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