The buying and selling of pounds and dollars takes place on the foreign exchange market. The foreign exchange market is a global decentralized marketplace where currencies are traded. It is not limited to a specific country or government.
Traders, including banks, financial institutions, and individuals, engage in currency exchange transactions on this market. The exchange rates of currencies, such as the dollar and the pound, fluctuate based on supply and demand factors. Therefore, the value of these currencies can change throughout the trading day. The foreign exchange market plays a crucial role in facilitating international trade and investment by allowing participants to convert one currency into another.
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- We put Lola in charge of new products because she's so creative and always has new ideas. - Without a doubt, we can always count on Anabel. She never lets us down. - It seems like Christophe is always the first to speak. - Sasha seems to accept the fact that her job isn't very interesting. - Irina is such a team player. She'll always go along with what the team thinks is best. - Gina is always worrying about things. - Tiziana never stops working and is constantly doing two things at the same time. - Jason thinks very carefully about his choices and makes very deliberate decisions because he knows they have consequences. - Antoaneta sets high goals and achieves them. It's likely due to the fact that she's so confident in her capabilities. - Openness to experience - Agreeableness - Type A - Conscientiousness - Extraversion - Neuroticism - External locus of control - Internal locus of control - Core self-evaluation
The given description can be related to the traits and qualities that are associated with the Big Five Personality Traits. These Big Five Personality Traits are as follows: Extraversion,Agreeableness,Conscientiousness,Neuroticism,Openness to Experience
The given statements can be related to the following traits:We put Lola in charge of new products because she's so creative and always has new ideas. - Openness to experience Without a doubt, we can always count on Anabel. She never lets us down.
- Conscientiousness It seems like Christophe is always the first to speak.
- ExtraversionSasha seems to accept the fact that her job isn't very interesting.
- NeuroticismIrina is such a team player. She'll always go along with what the team thinks is best.
- AgreeablenessGina is always worrying about things.
- NeuroticismTiziana never stops working and is constantly doing two things at the same time.
ConscientiousnessJason thinks very carefully about his choices and makes very deliberate decisions because he knows they have consequences. - ConscientiousnessAntoaneta sets high goals and achieves them. It's likely due to the fact that she's so confident in her capabilities. - Conscientiousness and Internal locus of controlThe term that is related to all these personality traits is Core self-evaluation. It is a broad personality concept that encompasses different individual traits such as self-esteem, self-efficacy, emotional stability, and locus of control.
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Case Study Pete Klstler was lookiog for a job. When he typed his name into an internet search engine, he was troubled to learn that the top search results were related to other people who share his name. Reputation management services were available, but they were. expensive. Kistler solved this challenge by partnering with a classmate at Syracuse University who understood search engine optimization. The result was the development of an online reputation management service, which they named lirandrourself, ft's secured several million dollars in funding from investors. Owned by Kistler and two parthers, the business earns an estimated $4 million in revenues annualy. (Source: Okyle, C. (2014, September 15). Top 30 start-ups to watch. Entrepreneur, Retrieved from httpi//www.entrepreneur,com/slideshow/237370/) Which of the following facts indicates that Beandrourself is a small business? Brand Yourself relies upon investor funding for growth and expansion. The company's service is the ability to monitor and influence one's online reputation. BrandYourseif is privately owned by three partners and has revenues and assets that are not large enough to influence its environment.
The combination of private ownership, limited revenues and assets, and reliance on investor funding supports the classification of BrandYourself as a small business in the context of the provided information.
The fact that BrandYourself is privately owned by three partners and has revenues and assets that are not large enough to influence its environment indicates that it is a small business.
Despite securing several million dollars in funding from investors, the reliance on investor funding for growth and expansion is a common characteristic of many small businesses that may not have substantial internal resources to fuel their growth.
The ownership structure of the company, with only three partners, further suggests that it operates on a smaller scale compared to larger corporations with a more complex ownership structure involving multiple shareholders.
Additionally, the estimated annual revenue of $4 million indicates that BrandYourself operates at a relatively modest level of financial performance.
Small businesses are typically characterized by their limited resources, both in terms of revenue and assets, which differentiate them from larger enterprises that often wield significant financial influence in their respective industries.
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Assume the following information for one of a company's variable expenses: • The actual amount of the expense is $8,300. • The planned level of activity is 1,000 hours. • The spending variance is $200 unfavorable. • The cost formula is $9.00 per hour. The activity variance must be: Multiple Choice a. $600 b. U. $900 c. F. $900 d. U. $600 F.
The question provides information about a company's variable expense, including the actual amount of $8,300, planned level of activity of 1,000 hours, spending variance of $200 unfavorable, and a cost formula of $9.00 per hour. The question asks for the activity variance.
The activity variance represents the difference between the actual level of activity and the planned level of activity, multiplied by the cost per unit of activity. In this case, the actual amount of the expense is $8,300, and the planned level of activity is 1,000 hours.
Using the cost formula of $9.00 per hour, we can calculate the planned expense based on the planned level of activity: 1,000 hours multiplied by $9.00 per hour equals $9,000. Comparing this with the actual expense of $8,300, we can determine that there is a spending variance of $700 favorable ($9,000 - $8,300).
Since the spending variance is unfavorable by $200, we can determine that the activity variance must be unfavorable to offset this amount. Therefore, the activity variance would be $900 unfavorable (the difference between the $700 favorable spending variance and the $200 unfavorable spending variance). The correct answer is option d: U. $900.
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You estimate you will need $3,976,122 in 31 years. How much do you need to save on a yearly basis in order to achieve your goal. Consider that prevailing interest rate is 7%. Round your answer to the nearest two decimals if necessary. Do not type the $ symbol. Question 12 0.3 pts What is the value of a perpetuity with yearly payments of $13,483 if the prevailing interest rate is 12%. Round your answer to the nearest two decimals if necessary. Do not type the $ symbol.
The value of the perpetuity with yearly payments of 13,483 and a 12% interest rate is approximately 112,358.33. To calculate the yearly savings needed to achieve your goal, you can use the future value of an annuity formula.
First, calculate the future value (FV) of 3,976,122 in 31 years with an interest rate of 7%. The formula for future value is: FV = PV * [tex](1 + r)^n[/tex], where PV is the present value, r is the interest rate, and n is the number of periods.
FV = 3,976,122 * [tex](1 + 0.07)^{31[/tex]
FV = 3,976,122 * [tex](1.07)^{31[/tex]
FV = 3,976,122 * 5.1698 ≈ 20,531,488.43.
PV = P * [(1 - [tex](1 + r)^{-n[/tex]) / r], where PV is the present value, P is the yearly savings, r is the interest rate, and n is the number of periods. Using the given future value, we can rearrange the formula to solve for P:
P = PV / [(1 - [tex](1 + r)^{-n[/tex]) / r].
P = 20,531,488.43 / [(1 - [tex](1 + 0.07)^{-31[/tex]) / 0.07] ≈ 20,531,488.43 / 10.0883 ≈ 2,033,873.41.
Therefore, you would need to save approximately 2,033,873.41 annually to achieve your goal of 3,976,122 in 31 years with a 7% interest rate. Now let's move on to the second question. To calculate the value of a perpetuity with yearly payments of 13,483 and an interest rate of 12%.
We can use the formula for the present value of a perpetuity: PV = P / r, where PV is the present value, P is the payment, and r is the interest rate. PV = 13,483 / 0.12 ≈ 112,358.33.
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Distell currently outsources most of its packaging activities to external sources. The suggestion is made that Distell start their own packaging department. There are two options to consider. For Option A it is estimated that the cost of setting up an in-house packaging department for limited products will be R5 million with the equipment being depreciated in a straight line over 8 years. They believe packaging the limited products in-house will result in an annual saving of R1 million. The expenses of running the department is estimated to be R200 000 per year. The life-of -service of this option is 8 years and the salvage value is zero.
For Option B it is estimated that the cost of setting up an in-house packaging department for all products will be R9 million with the equipment being depreciated in a straight line over 8 years. They believe packaging all products in-house will result in an annual saving of R1.8 million on material. The expenses of running the department is estimated to be R320 000 per year. The life-of -service of this option is 16 years and the salvage value is R1 million. Distell's MARR is 16.3%.
What is the after tax discounted payback period in years of option B using the MARR rate to discount? The discounted payback looks at the cumulative sum of discounted cash flows and sees where it first becomes positive. The company pays 28% tax.
The after-tax discounted payback period of Option B is 2 years.
To calculate the after-tax discounted payback period for Option B, we need to consider the cash flows, the discount rate, and the tax rate.
1. Determine the cash flows for each year:
Year 1: Savings - Expenses = R1.8 million - R320,000 = R1,480,000
Years 2-16: Savings - Expenses = R1.8 million - R320,000 = R1,480,000
Year 17: Savings - Expenses + Salvage Value - Tax on Salvage Value = R1.8 million - R320,000 + R1 million - (28% * R1 million) = R2,056,000
2. Calculate the discounted cash flows:
Year 1: R1,480,000 / (1 + 0.163)^1 = R1,272,951
[tex]Years\ 2-16: R1,480,000 / (1 + 0.163)^2 + R1,480,000 / (1 + 0.163)^3 + ... + R1,480,000 / (1 + 0.163)^{16} = R12,665,867[/tex]
[tex]Year\ 17: R2,056,000 / (1 + 0.163)^{17} = R398,279[/tex]
3. Calculate the cumulative discounted cash flows:
Cumulative Cash Flow Year 1: R1,272,951
Cumulative Cash Flow Year 2: R1,272,951 + R12,665,867 = R13,938,818
Cumulative Cash Flow Year 17: R13,938,818 + R398,279 = R14,337,097
4. Determine the year when the cumulative discounted cash flows become positive:
The after-tax discounted payback period is the year when the cumulative discounted cash flows first become positive. In this case, the cumulative cash flow becomes positive in Year 2.
Therefore, the after-tax discounted payback period for Option B is 2 years.
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A school district is considering whether to buy electric or diesel buses. The diesel bus costs $105,000 to purchase today, and consumes an average of $6,300 in diesel fuel per year. Both buses will be used for 18 years. At the end of those 18 years, they will be sold. The diesel bus has a scrap value of $7,000. The electric bus costs $225,000 to buy, uses $2,300 worth of electricity per year, and has a scrap value of $18,000. Find the net present value (NPV) of both buses, assuming the district has a discount rate of 2%. Which is a better financial investment? What other costs could a school district consider when making this decision?
Based on the NPV criterion and a discount rate of 2%, the diesel bus is the better financial investment. Considering the additional costs the school district should conduct a comprehensive cost-benefit analysis.
To find the net present value (NPV) of both buses, we need to calculate the present value of the costs and benefits associated with each option. The NPV represents the difference between the present value of cash inflows and cash outflows, discounted at a specific rate.
Let's calculate the NPV for each bus:
For the diesel bus:
- Initial cost: -$105,000
- Annual fuel cost: -$6,300 for 18 years, discounted at a rate of 2% per year
- Scrap value: +$7,000 at the end of 18 years, discounted to the present value
- Discount rate: 2%
The present value of the annual fuel costs can be calculated using the formula for the present value of an annuity:
PV = C × (1 - (1 + r)^(-n)) / r
Where:
- PV is the present value
- C is the annual cash flow ($6,300)
- r is the discount rate (2% or 0.02)
- n is the number of years (18)
Using this formula, we find the present value of the fuel costs for the diesel bus is approximately -$91,272.
The present value of the scrap value is calculated as:
Scrap Value / (1 + r)^n = $7,000 / (1 + 0.02)^18 ≈ $5,680.
Summing up all the present values, we get:
NPV(diesel) = -$105,000 - $91,272 + $5,680 ≈ -$190,592.
For the electric bus:
- Initial cost: -$225,000
- Annual electricity cost: -$2,300 for 18 years, discounted at a rate of 2% per year
- Scrap value: +$18,000 at the end of 18 years, discounted to the present value
- Discount rate: 2%
Using the same formula for the present value of an annuity, we find the present value of the electricity costs for the electric bus is approximately -$41,556.
The present value of the scrap value is calculated as:
$18,000 / (1 + 0.02)^18 ≈ $14,566.
Summing up all the present values, we get:
NPV(electric) = -$225,000 - $41,556 + $14,566 ≈ -$251,990.
Comparing the NPVs, we find that the NPV of the diesel bus is approximately -$190,592, while the NPV of the electric bus is approximately -$251,990.
However, it's important to consider other costs that a school district could take into account when making this decision. Some factors to consider include:
1. Maintenance and repair costs: Electric buses generally have lower maintenance and repair costs compared to diesel buses due to the simpler nature of electric drivetrains.
2. Environmental impact: Electric buses produce zero tailpipe emissions, contributing to cleaner air quality and reduced greenhouse gas emissions.
3. Fuel price volatility: Diesel fuel prices can fluctuate over time, potentially affecting the operational costs of diesel buses.
4. Government incentives and subsidies: There may be government incentives or subsidies available for the purchase of electric buses, which can help offset the higher upfront cost.
5. Long-term cost savings: Although the initial investment for electric buses is higher, the lower operating costs (including fuel and maintenance) over their lifespan could lead to cost savings in the long run.
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WAL has decided to manufacture a new product: A leather \& wood END TABLE. They have identified the following budgeted costs. They also think that this product will be a Price Setter and expect a Gross Margin Ratio of 60%. What Price should they use?
WAL should set the price for the leather and wood end table at $250 in order to achieve a gross margin ratio of 60%.
To determine the price for the leather and wood end table, we need to consider the budgeted costs and the desired gross margin ratio.
Let's assume the total budgeted costs for manufacturing the leather and wood end table amount to $100.
The gross margin ratio is given as 60%. The gross margin ratio is the percentage of sales revenue that exceeds the cost of goods sold (COGS). In this case, it means that the COGS will be 40% of the sales price (100% - 60% = 40%).
To calculate the sales price, we can use the following formula:
Sales Price = COGS / (1 - Gross Margin Ratio)
COGS = $100
Gross Margin Ratio = 60% or 0.60
Sales Price = $100 / (1 - 0.60) = $100 / 0.40 = $250
Therefore, WAL should set the price for the leather and wood end table at $250 in order to achieve a gross margin ratio of 60%.
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WAL has decided to manufacture a new product: A leather [tex]\&[/tex] wood END TABLE. They have identified the following budgeted costs. They also think that this product will be a Price Setter and expect a Gross Margin Ratio of 60%. What Price should they use?
Critically discuss the role of working capital, and the theoretically ideal patterns of working capital management, during hard times.
Effective working capital management is a balancing act between maintaining sufficient liquidity and optimizing the utilization of resources to weather the storm and emerge stronger from the challenging period.
Here are some key points regarding the role of working capital and the theoretically ideal patterns of working capital management during hard times:
1. Maintaining Sufficient Liquidity: Hard times often bring increased uncertainty and financial challenges. Having sufficient working capital allows businesses to maintain liquidity and meet short-term obligations, such as paying suppliers, covering payroll, and managing unexpected expenses.
2. Efficient Cash Conversion Cycle: The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. During hard times, businesses should strive to optimize their cash conversion cycle by reducing the time between paying suppliers and collecting cash from customers.
3. Tighter Working Capital Management: In challenging economic conditions, businesses should focus on reducing unnecessary working capital tied up in assets. This includes managing inventory levels efficiently, negotiating favorable credit terms with suppliers, and closely monitoring accounts receivable to ensure timely payment collection.
4. Collaboration with Suppliers and Customers: During hard times, maintaining strong relationships with suppliers and customers becomes crucial. Collaborative efforts such as negotiating extended payment terms with suppliers or offering discounts for early payment by customers can help manage working capital effectively.
5. Flexibility and Adaptability: Hard times often require businesses to be flexible and adapt their strategies to changing market conditions. Working capital management should align with the company's overall strategic goals and respond to the specific challenges faced during the downturn.
The theoretically ideal patterns of working capital management may vary depending on the industry, business model, and specific circumstances. Each business must assess its unique situation and adopt a tailored approach to working capital management during hard times.
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Long-term liabilities are significant to users for all of the following reasons, except A. it affects the company for many year into the future. B.it has an impact on the firm's liquidity. C.it provides information on potential litigation and contractual obligations. D.it provides information about the health of employee pension plans.
Long-term liabilities are significant to users for all of the following reasons except option D.
It provides information about the health of employee pension plans. Long-term liabilities are debts or obligations that are not due within a year or the company's operating cycle.
Long-term liabilities play a vital role in understanding a company's financial health. Investors, creditors, and analysts are interested in long-term liabilities because they reflect the company's ability to manage its debt and meet its financial obligations over time. In general, long-term liabilities impact the company for many years into the future.
They are an essential part of a company's capital structure, and they represent money that a company has borrowed that it must repay in the future. Here are some reasons why long-term liabilities are significant to users:1. Affects the company for many years into the future2. Has an impact on the firm's liquidity.
Provides information on potential litigation and contractual obligations4. Provides information about the financial health of the company Long-term liabilities affect a company's liquidity because they represent money that a company owes over an extended period.
The higher the long-term liabilities, the greater the financial burden on the company. Additionally, long-term liabilities provide valuable information about a company's potential litigation and contractual obligations. This is important because it can impact the company's financial position and reputation. For example, if a company has a lot of long-term liabilities, it may be less able to handle potential lawsuits.
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What is price elasticity of demand? Multiple Choice Price multiplied by quantity demanded. Price divided by quantity demanded. The responsiveness of price to a change in the quantity demanded. The responsiveness of quantity demanded to a change in price.
The responsiveness of quantity demanded to a change in price is price elasticity of demand. The answer is OPTION D.
The responsiveness of the quantity desired or supplied of an item to a change in its price is measured by price elasticity. It is calculated by dividing the percentage change in quantity sought (or supplied) by the percentage change in price.
The degree to which price changes affect product demand is referred to as price elasticity. In other words, it assesses how responsive consumers are to changes in the price of a product. If a product's pricing is elastic, a minor change in price will result in a huge change in demand. Price elasticity informs businesses about how far they can stretch the price (thus the word elasticity) of any product before it has an impact.
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Stock Dividends Crystal Corporation has the following information regarding its common stock: $10 par, with 500,000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $40 per share. Required: 1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it blank.
The fair value of the shares to be distributed is $40 per share, so the total fair value of the dividend is $1,092,200. The par value of the shares to be distributed is $10 per share, so the total par value of the dividend is $275,550.
When a company declares a stock dividend, it is essentially giving its shareholders a gift of additional shares of stock. The fair value of the shares to be distributed is credited to Common Stock Distributable. The excess of the fair value over the par value of the shares is credited to Additional Paid-in Capital.
When the shares are actually distributed, the Common Stock Distributable account is debited for the par value of the shares and Treasury Stock is credited for the fair value of the shares.
In this case, Crystal Corporation is declaring a 15% stock dividend, which means that it will distribute 15% of the number of shares outstanding as a dividend. The number of shares outstanding is 183,700, so Crystal Corporation will distribute 27,555 shares as a dividend.
Therefore, the journal entries to record the declaration and payment of the stock dividend would be as follows:
Declaration:
Debit Retained Earnings $1,092,200.
Credit Common Stock Distributable $183,700.
Credit Additional Paid-in Capital $908,500.
Payment:
Debit Common Stock Distributable $183,700.
Credit Treasury Stock $1,092,200.
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Company: Walgreens-Boots Alliance, Inc. Determine and defend an investment hurdle rate (WACC) to be used by the firm for future investment decisions as of the last fiscal year end. Choose an appropriate technique and time frame.
Company: Walgreens-Boots Alliance, Inc. Determine and defend an investment hurdle rate (WACC) to be used by the firm for future investment decisions as of the last fiscal year end.
To establish an appropriate WACC for future investment decisions, it is essential to consider several factor including the company's capital structure, cost of debt, cost of equity and overall market conditions.
To determine an accurate WACC, it is recommended to consult the most recent financial statements, conduct a thorough analysis of the company's capital structure. Financial professionals such as investment bankers can provide valuable expertise and utilize appropriate techniques to calculate the WACC based on the specific circumstances of the company.
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WENC Problems All applicable Problems are available in Connect. Common and preferred stock-issuances and dividends Homestead Oil Corp./Problem 8.23 was incorporated on January 1, 2019, and issued the following stock for cash: LO 1,2 connect 800,000 shares of no-par common stock were authorized: 150,000 shares were issued on January 1, 2019, at $38 per share. 200,000 shares of $100 par value, 6.5% cumulative, preferred stock were per share. authorized; 90,000 shares were issued on January 1, 2019, at $122 Net income for the years ended December 31, 2019 and 2020 was $2,600,000 and $5,600,000, respectively. 310 Part 1 Financial Accounting No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $3,600,000, payable on February 12, 2021, to holders of record as of January 19, 2021. Required: a. Use the horizontal model (or write the entry) to show the effects of The issuance of common stock and preferred stock on January 1, 2019. 2. The declaration of dividends on December 28, 2020. 1. 3. The payment of dividends on February 12, 2021. b. Of the total amount of dividends declared during 2020, how much will be received by preferred shareholders? 74 Comm Jespres and dividends Permabilt Corp, was
a. The issuance of common stock and preferred stock on January 1, 2019:
Common Stock: Cash is debited and Common Stock is credited for $5,700,000. - Preferred Stock: Cash is debited and Preferred Stock is credited for $11,040,000.b. The declaration of dividends on December 28, 2020:
Retained Earnings is debited and Dividends Payable is credited for $3,600,000.c. The payment of dividends on February 12, 2021:
Dividends Payable is debited and Cash is credited for $3,600,000.b. The preferred shareholders will receive $585,000 of the total dividends declared during 2020.
To show the effects of the issuance of common stock and preferred stock on January 1, 2019:
1. Issuance of Common Stock:
Debit: Cash - $5,700,000 ($38 per share x 150,000 shares) Credit: Common Stock - $5,700,0002. Issuance of Preferred Stock:
Debit: Cash - $11,040,000 ($122 per share x 90,000 shares) Credit: Preferred Stock - $11,040,000To show the effects of the declaration of dividends on December 28, 2020:
Debit: Retained Earnings - $3,600,000Credit: Dividends Payable - $3,600,000To show the effects of the payment of dividends on February 12, 2021:
Debit: Dividends Payable - $3,600,000Credit: Cash - $3,600,000To determine the amount of dividends received by preferred shareholders:
The preferred shareholders are entitled to receive dividends before the common shareholders. The preferred stock is cumulative and has a 6.5% dividend rate. The preferred shareholders will receive dividends for the current year (2020) and any unpaid dividends from prior years.
For the current year (2020):
Preferred Dividends = Preferred Shares Outstanding * Par Value * Dividend RatePreferred Dividends = 90,000 shares * $100 par value * 6.5%Preferred Dividends = $585,000Therefore, preferred shareholders will receive $585,000 of the total dividends declared during 2020.
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Questions 6-8 are based one the following excerpt from Chicago Tribune (May 9, 2016) Tribune Publishing's board has adopted a shareholder rights plan to defend itself against Gannett's unsolicited bid to buy the Chicago-based newspaper company The publisher of the Chicago Tribune, the Los Angeles Times and other papers said Monday the plan, commonly known as a "poison pill," would kick in if a group buys more than 20 percent of Tribune Publishing's shares or begins a tender offer to seek a 20 percent stake from existing shareholders When the plan is triggered, existing shareholders, other than an acquiring entity, could buy preferred shares at a substantial discount, thereby diluting the stake of any acquiring company and making a takeover more expensive. The plan expires in a year. Tribune Publishing's adoption of the defense, widely used in hostile takeover battles, follows its formal rejection last week of Gannett's April 12 offer of $12.25 a share to acquire the company in a deal that was valued at $815 million, including the assumption of $390 million in debt 6. What was Gannett's offer price per share to Tribune in April 2016? QUESTION 7 7 What was the number of shares (in milions) at Tribune? QUESTION 8 8 What is the triggering percentage that the poison pill would be activated? (in percentage)
Gannett's offer price per share to Tribune in April 2016 was $12.25.
In April 2016, Gannett made an unsolicited bid to acquire Tribune Publishing, the publisher of the Chicago Tribune and the Los Angeles Times. The offer price per share was $12.25, as stated in the excerpt from the Chicago Tribune. This offer was part of a deal valued at $815 million, including the assumption of $390 million in debt.
During that time, Tribune Publishing's board adopted a shareholder rights plan, also known as a "poison pill," as a defense mechanism against Gannett's hostile takeover attempt. The plan would be triggered if a group purchased more than 20 percent of Tribune Publishing's shares or initiated a tender offer to seek a 20 percent stake from existing shareholders.
When triggered, the plan allowed existing shareholders, excluding the acquiring entity, to buy preferred shares at a significant discount. This would dilute the stake of any acquiring company and make a takeover more expensive. The plan had a duration of one year, after which it would expire.
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. Social Obligation Social Responsibility Business Ethics Social Awareness ______ 7. Which Of The Following Best Describes The Objective Of Marketing?
______ 6. Rules of conduct that guide actions in the marketplace are called ________.
social obligation
social responsibility
business ethics
social awareness
______ 7. Which of the following best describes the objective of marketing?
A. to create awareness that consumer needs exist
B. to provide consumers with an incentive to purchase
C. to create needs that a business can satisfy
D. to facilitate the sale of assorted goods and services
______ 8. Which of the following regulatory agencies is responsible for enforcing laws against deceptive advertising and product labeling regulations?
A. Consumer Product Safety Commission
B. Federal Trade Commission
C. Federal Communications Commission
D. Food and Drug Administration
______ 9. Marketers will sometimes align themselves with organizations that seek to support a particular cause (i.e. breast cancer research). This is called:
transformative research
social media
cause marketing
market development
______ 10. A ‘triple bottom-line’ orientation refers to business strategies that strive to maximize return in three ways: financial, social and __________.
political
economical
industrial
environmental
7. Social Responsibility.6. Business Ethics. 7. To facilitate the sale of assorted goods and services. 8.Federal Trade Commission (B). 9.Cause marketing. 10.Environmental
Generate interest, and persuade consumers to make a purchase. It involves various strategies and tactics to effectively reach and engage target audiences, build brand recognition, and ultimately drive sales. By understanding consumer needs and preferences, businesses can tailor their marketing efforts to meet those needs and position their products or services in a way that resonates with consumers. 8. The regulatory agency responsible for enforcing laws against deceptive advertising and product labeling regulations is the Federal Trade Commission (B). The FTC is tasked with protecting consumers from unfair and deceptive practices in the marketplace. It monitors and investigates false advertising claims, ensures proper product labeling, and takes legal action against companies that violate regulations. Its role is crucial in maintaining transparency and trust between businesses and consumers.
9. When marketers align themselves with organizations to support a particular cause, it is called cause marketing. Cause marketing involves establishing partnerships or collaborations with nonprofit organizations or social causes to create mutually beneficial outcomes. By associating their brand with a cause, marketers aim to generate positive brand perception, enhance reputation, and demonstrate social responsibility. Cause marketing campaigns often involve supporting charitable initiatives, raising awareness, or donating a portion of proceeds to the cause. It allows businesses to contribute to social good while also enhancing their brand image and connecting with consumers on a deeper level.
10. A 'triple bottom-line' orientation refers to business strategies that strive to maximize return in three ways: financial, social, and environmental. In addition to financial profitability, businesses with a triple bottom-line approach also consider their social and environmental impacts. They aim to create value not only for shareholders but also for stakeholders such as employees, customers, communities, and the environment. By incorporating social and environmental considerations into their decision-making processes and practices, organizations can contribute to sustainable development, ethical business practices, and long-term success. This approach recognizes the interconnectedness of economic, social, and environmental factors and promotes a more holistic and responsible approach to business.
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Using a search engine, look for the term "company organizational charts," and find at least three examples of organizational charts for corporations, not-for-profits, or government agencies. Analyze each entity’s organizational structure. Is it organized by function, product/service, process, customer type, or geographic location?
By analyzing the organizational charts of corporations, non-profits, or government organizations that were found on the search engine, the following information will discuss the structure of the entity. The article will also answer if the entity is organized by function, product/service, process, customer type, or geographic location.
An organizational chart, also known as an org chart, is a graphical representation of a company's structure. It illustrates the hierarchy of different positions in the company and their relationships to one another. Org charts can show the management chain of command, the different departments that make up a company, and how they interact. There are different ways to structure an org chart, including by function, product/service, process, customer type, or geographic location.
When analyzing the organizational charts of three different entities, the following structures can be found. The first entity is a non-profit organization, and its organizational chart shows that it is organized by function. The chart illustrates a hierarchical system that has a board of directors, followed by executive management, program staff, and administrative staff. The second entity is a corporation that is organized by product/service. Its organizational chart illustrates a product line, with a chief executive officer, followed by product managers and their respective teams.
The third entity is a government agency that is organized by function. Its organizational chart illustrates the various departments that make up the agency, such as law enforcement, transportation, and education. Each department is headed by a director who reports to the agency head. Therefore, it is concluded that the organizations can be organized by different structures to achieve their objectives.
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As a production manager for Rochester Manufacturing Corporation, what do you recommend? Why?
As a production manager for Rochester Manufacturing Corporation, I recommend implementing a lean manufacturing approach. This approach focuses on eliminating waste and improving efficiency in the production process.
By using lean manufacturing principles, such as just-in-time inventory management and continuous improvement, the company can reduce costs, improve quality, and increase productivity.
Additionally, lean manufacturing promotes a culture of teamwork and employee engagement, leading to higher job satisfaction and morale. Overall, implementing a lean manufacturing approach would benefit Rochester Manufacturing Corporation by making its operations more streamlined and competitive in the market.
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The following facts relate to the postretirement benefits plan of Wall, Inc.
for 2021:
Service cost: $510,000
Discount rate: 7%
EPBO, January 1, 2021: $6,329,000
APBO, January 1, 2021: $5,632,000
Average remaining service to full eligibility: 16 years
Average remaining service to expected retirement: 26 years
The plan is unfunded. The amount of postretirement expense for 2021 is..................
The amount of postretirement expense for 2021 is $904,240.The amount of postretirement expense refers to the financial cost incurred by a company for providing postretirement benefits to its employees.
Postretirement expense = Service cost + Interest cost - Expected return on plan assets
Where, Service cost = $510,000 Discount rate = 7% EPBO, January 1, 2021 = $6,329,000 APBO, January 1, 2021 = $5,632,000
Interest cost = Discount rate * APBO = 7% * $5,632,000 = $394,240
Expected return on plan assets = 0 (since the plan is unfunded)
Therefore, Postretirement expense for 2021 = $510,000 + $394,240 - $0 = $904,240
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vella owns and operates an illegal gambling establishment. in connection with this activity, he has the following expenses during the year: rent $40,500 bribes 60,750 travel expenses 4,050 utilities 24,300 wages 335,500 payroll taxes 20,250 property insurance 2,025 illegal kickbacks 36,450 what are vella's total deductible expenses for tax purposes? $fill in the blank 1
Vella's total deductible expenses for tax purposes, excluding the illegal activities, would amount to $426,625.
Vella's total deductible expenses for tax purposes can be calculated by adding up all the expenses that are allowed as deductions by the tax authorities. From the list provided, the deductible expenses would include rent ($40,500), travel expenses ($4,050), utilities ($24,300), wages ($335,500), payroll taxes ($20,250), and property insurance ($2,025).
However, it's important to note that illegal activities, such as operating an illegal gambling establishment and engaging in bribery, are not recognized as legitimate business expenses by tax authorities.
Therefore, expenses related to bribes ($60,750) and illegal kickbacks ($36,450) would not be deductible.
To calculate Vella's total deductible expenses, we add up the allowable expenses:
$40,500 + $4,050 + $24,300 + $335,500 + $20,250 + $2,025 = $426,625.
Thus, Vella's total deductible expenses for tax purposes would be $426,625.
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For each unit of computer sold, Blue Company sells a service contract. The contract provides that the computers sold will be repaired by the company within a period of three years from the date of sale. Based on company's experience, 10% of repairs are done in the 1st year from the date of sale, 30% in the 2nd year and 60% in the 3rd year. Sale of service contracts for the year 2019, 2020 and 2021 are; P500,000; P600,000 and P700,000 respectively. Sale of service contracts and repairs are made evenly throughout the year. How much is the unearned service contract revenue at December 31, 2021? 2. What is the amortized cost of accounts receivable at December 31, 2021?On January 1, 2021, Blue Company had Accounts Receivable and Allowance for bad debts of P360,000 and P12,000 respectively. Sales during the year 2021 amounts to P1,800,000 (all on credit). Accounts of P7,500 were written off during the year 2021. Analysis of the company's accounts receivable at December 31,2021 revealed the following: Age Amount Estimated uncollectible 0-60 days P125,000 1% 61-120 days 90,000 3% Over 120 days 100,000 10%
For 2019, 10% of repairs were done, so the unearned revenue is P500,000 x 10% = P50,000. For 2020, 30% of repairs were done, so the unearned revenue is P600,000 x 30% = P180,000.
Adding these amounts together, the unearned service contract revenue at December 31, 2021 is P50,000 + P180,000 + P420,000 = P650,000. The amortized cost of accounts receivable at December 31, 2021 can be calculated by subtracting the allowance for bad debts from the accounts receivable balance.
For over 120 days, 10% is uncollectible, so P100,000 x 10% = P10,000 is subtracted. Adding these amounts together, the amortized cost of accounts receivable at December 31, 2021 is P2,152,500 - P1,250 - P2,700 - P10,000 = P2,138,550.
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Discussion Question – Earning management & IFRS (Acc 304 Accounting Theory)
With reference to the reading list: Ayedh, Fatima & Mohd (2019). Earnings Management in Malaysian Companiesduring the Global Financial Crisis and the Coincidental Effect of IFRS Adoption. AABFJ,13(1),1-26.
Assuming you are a researcher who is interested to examine the impact of COVID-19’s financial reporting/or IFRS adoption during the pandemic on earning management of Malaysian entities.
You are required to: Propose how you will carry out a search/study to contribute to the body of knowledge in this aspect.
Submission format: propose at least 5 areas (theory, variable, method, analysis etc) with examples on how you can contribute to this research.
As a researcher interested in examining the impact of COVID-19’s financial reporting or IFRS adoption during the pandemic on earning management of Malaysian entities, the following are five areas that I would consider researching:
1. Theory: To contribute to the body of knowledge in this aspect, I would propose the event study theory. This theory involves investigating the effect of external events such as the COVID-19 pandemic on a company's stock price. An event study would provide empirical evidence on whether the financial reporting practices adopted by Malaysian entities during the COVID-19 pandemic were effective in mitigating earnings management practices.
2. Variable: I would consider using earning management as an independent variable. This variable would enable me to determine the extent to which Malaysian entities are using IFRS reporting standards to manage their earnings during the pandemic. Additionally, I would consider using factors such as leverage, firm size, and industry to control the effects of other variables on earning management.
3. Method: For this study, I would propose a quantitative research method. This method would involve collecting and analyzing numerical data using statistical tools such as regression analysis. By using a quantitative approach, I would be able to determine the strength of the relationship between earning management practices and IFRS adoption during the COVID-19 pandemic.
4. Analysis: To analyze the data collected, I would use various statistical methods. One of the methods I would consider is regression analysis. Regression analysis would enable me to determine the extent to which the dependent variable (earning management) is explained by the independent variable (IFRS adoption during the pandemic). Additionally, I would use descriptive statistics to summarize the data collected.
5. Sample selection: I would select a sample of Malaysian entities that have adopted IFRS reporting standards during the COVID-19 pandemic. The sample would be representative of different industries and sectors in Malaysia. Additionally, I would ensure that the sample includes entities that have been adversely affected by the pandemic to provide a comprehensive analysis of earning management practices during the COVID-19 pandemic.
Conclusively, these are the areas I would propose researching to contribute to the body of knowledge in this aspect.
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"Blank 1: 14.25%, 15.00%, 13.50%, or 15.75%
Blank 2: $1.20, $1.50, $1.58, $1.27, or $1.35
Blank 3: 21% and $2.10, 22.05% and $2.00, 19.95% and $1.89, or
23.10% and $2.21
Blank 4: increase or decrease
The impact of financial leverage on return on equity and earnings per share Consider the following case of Lost Pigeon Aviation: Suppose Lost Pigeon Aviation is considering a project that will require"
Lost Pigeon Aviation is considering a project requiring $200,000. If financed with 100% equity, the return on equity (ROE) will be X, and earnings per share (EPS) will be Y. Alternatively, with 50% debt and 50% equity, ROE and EPS will be Z.
Lost Pigeon Aviation is evaluating a project with $200,000 in asset requirements. If the project is financed solely with equity capital, the company's ROE will be calculated as the earnings before interest and taxes (EBIT) divided by the common equity outstanding. In this case, with $40,000 in EBIT and 20,000 shares outstanding, the ROE will be a certain percentage. Additionally, the earnings per share (EPS) will be determined by dividing the EBIT minus taxes by the number of outstanding shares.
Alternatively, the CFO is considering a financing mix of 50% debt and 50% equity. With an interest rate of 12% on the debt, the ROE and EPS calculations will differ. The equity portion will be reduced to 10,000 shares, and the interest expense will be deducted from the EBIT to calculate net income before taxes. After applying the 25% tax rate, the net income will be divided by the reduced number of outstanding shares to determine the EPS. The ROE will reflect the profitability of the project with the altered capital structure.
Typically, using financial leverage, such as debt, increases a project's expected ROE. By incorporating debt into the financing mix, companies can amplify their returns if the project generates higher profits than the cost of borrowing. However, it also increases the risk due to interest payments and the potential impact on earnings.
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complete question: The impact of financial leverage on return on equity and earnings per share Consider the following case of Lost Pigeon Aviation: Suppose Lost Pigeon Aviation is considering a project that will require $200,000 in assets. - The company is small, so it is exempt from the interest deduction limitation under the new tax law. - The project is expected to produce earnings before interest and taxes (EBIT) of $40,000. - Common equity outstanding will be 20,000 shares. - The company incurs a tax rate of 25%. If the project is financed using 100% equity capital, then Lost Pigeon Aviation's return on equity (ROE) on the project will be addition, Lost Pigeon's earnings per share (EPS) will be Alternatively, Lost Pigeon Aviation's CFO is also considering financing the project with 50% debt and 50% equity capital. The interest rate on the company's debt will be 12%. Because the company will finance only 50% of the project with equity, it will have only 10,000 shares outstanding. Lost Pigeon Aviation's ROE and the company's EPS will be if management decides to finance the wroject 50% debt and 50% equity. Typically, using financial leverage will a project's expected ROE.
8. Jedstone Home Decors has net income of $26,000, total assets of $143,000, total liabilities of $54,000, and a price-book ratio of 4.3. There are 50,000 shares of stock outstanding. What is the firm's price-earnings ratio?
Previous question
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The firm's price-earnings ratio is approximately 14.7.
The formula to calculate price-earnings ratio is:
Price-earnings ratio = market price per share/earnings per share (EPS)
Net Income = $26,000
Total Assets = $143,000
Total Liabilities = $54,000
Price-Book Ratio = 4.3
Number of Shares Outstanding = 50,000
We can calculate the market price per share using the price-book ratio as:
Price-Book Ratio = market price per share/book value per share
4.3 = market price per share/($143,000-$54,000)/50,000
4.3 = market price per share/$1.78
market price per share = $1.78 × 4.3
market price per share = $7.634
As we have found the market price per share, we can now calculate the earnings per share as:
EPS = Net Income/Number of Shares Outstandings
EPS = $26,000/50,000s
EPS = $0.52
Now that we know the market price per share and the earnings per share, we can calculate the price-earnings ratio:
Price-earnings ratio = market price per share/earnings per share
Price-earnings ratio = $7.634/$0.52
Price-earnings ratio ≈ 14.7
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After reading the article entitled "The U.S. – China War Over Trade and Tariffs, Explained", explain in your own words:
- The role of globalization in the U.S. – China trade war. (Did globalization lead to the current trade war between the United States and China)
- The effect of the trade war on globalization moving forward. (Will the tensions between two of the world’s largest economies affect globalization)
Globalization has played a significant role in the U.S.-China trade war, with both countries competing for economic dominance. Whereas, the trade war has created uncertainties and disruptions in global trade, which could impact globalization moving forward. The long-term effect of the trade war on globalization will depend on how countries adapt and respond to these challenges.
Globalization refers to the interconnectedness and interdependence of economies around the world. It has facilitated the growth of international trade, allowing countries to benefit from specialization and comparative advantage. However, it has also led to increased competition between countries, resulting in the situation of a trade war.
The role of globalization in the U.S.-China trade war is significant. As both countries became major players in the global economy, they started competing in various industries. China's rapid rise as a manufacturing hub, with its low labor costs and large domestic market, has posed challenges to American industries. This has led to accusations of unfair trade practices, such as intellectual property theft and government subsidies, from the United States.
The effect of the trade war on globalization moving forward is uncertain. On one hand, the tensions between the United States and China have created disruptions in global supply chains and increased uncertainty for businesses. This could lead to a slowdown in global trade and investment, potentially impacting globalization. Additionally, the trade war has prompted countries to reassess their economic relationships and consider alternative trading partners.
On the other hand, the trade war has also revealed the vulnerabilities of globalization, particularly its dependence on a few key players. As tensions between the United States and China escalate, there has been a growing call for diversification and reshoring of supply chains. This could lead to regionalization and a shift away from the globalized model of production, potentially reducing the impact of globalization.
Thus, we can conclude that globalization has played a crucial role in the U.S.-China trade war. However, the trade war has also prompted a reevaluation of the risks and vulnerabilities associated with globalization.
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. Rudy Chappa owns a internet running goods website. He sells a single type of shoe: ‘Nike elite’ cross country shoes. If the revenue function for the shoes is TR = (120- Q)Q and the cost function is TC = 1200 + 20Q, what is his profit maximizing number of shoes?
a. 20
b. 40
c. 60
d. 80
If the revenue function for the shoes is TR = (100- Q)Q and the cost function is TC = 1200 + 20Q, the profit-maximizing number of shoes is 40. So, correct option is B.
To find the profit-maximizing number of shoes for Rudy Chappa's internet running goods website, we need to determine the quantity of shoes that maximizes the difference between total revenue (TR) and total cost (TC), which represents the profit (π).
The revenue function is given as TR = (100 - Q)Q, where Q represents the quantity of shoes sold. The cost function is TC = 1200 + 20Q, where Q represents the quantity of shoes produced.
To find the profit-maximizing quantity, we need to find the point where the marginal revenue (MR) equals the marginal cost (MC). MR is the derivative of the revenue function with respect to Q, and MC is the derivative of the cost function with respect to Q.
MR = d(TR)/dQ = 100 - 2Q
MC = d(TC)/dQ = 20
Setting MR equal to MC and solving for Q:
100 - 2Q = 20
2Q = 80
Q = 40
Therefore, correct option is B.
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Complete question is:
Rudy Chappa owns a internet running goods website. He sells a single type of shoe: ‘Nike elite’ cross country shoes. If the revenue function for the shoes is TR = (100- Q)Q and the cost function is TC = 1200 + 20Q, what is his profit maximizing number of shoes?
a. 20
b. 40
c. 60
d. 80
The exchange rate 110 JPY / USD in New York, USA is a/an: indirect quote direct quote In the quote, EUR 0.7353 - 75 / USD, EUR 0.7375 is the: bid rate ask rate
a)The exchange rate 110 JPY/USD in New York, USA is a direct quote.
In the quote EUR 0.7353 - 0.7375 / USD, EUR 0.7375 is the ask rate.In the given exchange rate, 110 JPY / USD in New York, USA, it is a direct quote.
direct quote expresses the amount of the domestic currency required to buy one unit of the foreign currency. In this case, it means that it takes 110 Japanese Yen (JPY) to buy 1 US Dollar (USD).
Regarding the quote "EUR 0.7353 - 75 / USD," EUR 0.7375 is the ask rate. The ask rate represents the price at which the market is willing to sell the base currency (EUR in this case) in exchange for the quote currency (USD). It indicates the price that the buyer needs to pay to acquire one unit of the base currency.
The bid rate, on the other hand, refers to the price at which the market is willing to buy the base currency in exchange for the quote currency. However, the given quote does not provide the bid rate information.
In summary, the exchange rate 110 JPY / USD is a direct quote, and in the quote "EUR 0.7353 - 75 / USD," EUR 0.7375 represents the ask rate.
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Suppose you deposit $1,160.00 into an account 4.00 years from today. Exactly 13.00 years from today the account is worth $1,628.00. What was the account's interest rate?
The account's interest rate is approximately 3.2782%.
To calculate the interest rate, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
A = Final amount
P = Principal amount (initial deposit)
r = Interest rate (unknown)
n = Number of times interest is compounded per year (assumed to be 1)
t = Number of years
P = $1,160.00
A = $1,628.00
t = 13 years
Substituting the given values into the formula, we have:
$1,628.00 = $1,160.00(1 + r/1)^(1*13)
Simplifying the equation:
1.40448275862069 = (1 + r)^13
Taking the 13th root of both sides:
(1 + r) ≈ 1.40448275862069^(1/13)
(1 + r) ≈ 1.03278202160479
Subtracting 1 from both sides:
r = 0.03278202160479
To convert the decimal to a percentage, multiply by 100:
r = 3.278202160479%
Therefore, the account's interest rate is approximately 3.2782%.
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Derek borrows $42,888.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 6.29%. What will the payments be? Answer format: Currency: Round to: 2 decimal places.
Derek borrows $42,888 to buy a car and will make monthly payments for 6 years. The car loan has an interest rate of 6.29%. We need to calculate the monthly payments he will have to make on the loan. By using the loan payment formula, we can determine the amount of each monthly payment.
To calculate the monthly payments on the car loan, we can use the loan payment formula. The formula takes into account the loan amount, the interest rate, and the loan term.
First, we need to convert the annual interest rate to a monthly interest rate by dividing it by 12. In this case, the monthly interest rate is 6.29% divided by 12.
Next, we calculate the total number of payments by multiplying the number of years by 12 months.
Using the loan payment formula, we can determine the monthly payment amount by plugging in the values of the loan amount, the monthly interest rate, and the number of payments.
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During 2020. Dyrdek's Skate Shop, Inc,, had a cash flow to creditors of $10,000 and the cash flow to stockholders for the year was $65,000. Suppose you also know that the firm's net capital spending for 2020 was $1,460,000, and that the firm reduced its net working capital investment by $87,000. What was the firm's 2020 operating cash flow, or OCF? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
By using the OCF formula, the firm's 2020 operating cash flow (OCF) was $1,448,000.
To calculate the firm's 2020 operating cash flow (OCF), we need to use the following formula:
OCF = Cash flow to creditors + Cash flow to stockholders + Net capital spending + Change in net working capital
Given information:
Cash flow to creditors = $10,000
Cash flow to stockholders = $65,000
Net capital spending = $1,460,000
Change in net working capital = -$87,000 (reduced investment)
Substituting the values into the formula:
OCF = $10,000 + $65,000 + $1,460,000 + (-$87,000)
OCF = $1,448,000
Therefore, the firm's 2020 operating cash flow (OCF) was $1,448,000.
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Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry has decided to go to Elite U. Assuming that all of the values described are correct, for Larry to decide on Elite U, he must have:
A. Calculated his surplus from each choice and picked the one with the highest surplus.
B. Underestimated the benefits of attending No Name.
C. Miscalculated the surplus of attending Elite U.
D. Determined the opportunity cost of each choice and picked the one with the lowest opportunity cost
To determine the correct answer, let's analyze Larry's decision-making process and the information provided. Larry must have miscalculated the surplus of attending Elite U.
Larry has three options for graduate school: Elite U, State College, and NoName U. Larry's decision is based on the value he assigns to attending each school and the associated costs. Let's review the information given:
- Elite U: Costs $50,000 per year and Larry values attending at $60,000 per year.
- State College: Costs $30,000 per year and Larry values attending at $40,000 per year. Larry receives a $10,000 annual scholarship.
- NoName U: Costs $20,000 per year and Larry values attending at $15,000 per year. Larry receives a full $20,000 annual scholarship.
According to the information provided, Larry has decided to attend Elite U. However, based on the given values, Larry would have a higher surplus by attending NoName U. Let's calculate the surpluses for each option:
- Elite U: Surplus = Value - Cost = $60,000 - $50,000 = $10,000
- State College: Surplus = Value - Cost + Scholarship = $40,000 - $30,000 + $10,000 = $20,000
- NoName U: Surplus = Value - Cost + Scholarship = $15,000 - $20,000 + $20,000 = $15,000
From the calculations, it is clear that Larry would have a higher surplus by attending State College or NoName U compared to Elite U. Therefore, Larry must have miscalculated the surplus of attending Elite U if he has chosen it over the other options.
In conclusion, the correct answer is that Larry must have miscalculated the surplus of attending Elite U.
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