Macroeconomics is a branch of economics that studies the overall behavior and performance of the economy. It examines the economy as a whole, rather than focusing on individual markets and individual participants.
The following questions are the major macroeconomic questions, except for one:The answer is option A.
This question belongs to the microeconomics branch of economics, which deals with individual markets and firms and their interactions.
Macro and microeconomics have different focuses.
Macroeconomics examines the overall economy, while microeconomics examines individual markets and individual participants.
Macroeconomics includes a broad range of topics, including inflation, unemployment, economic growth, and international trade.
Understanding macroeconomic concepts is critical for policymakers, businesses, and individuals to make informed decisions.
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Under the Investment Company Act of 1940, the investment adviser's contract must be renewed by a majority vote of the fund's:
A
Board of Directors
B
outstanding shares
C
Board of Directors or the outstanding shares
D
unaffiliated Directors
Board of Directors or the outstanding shares, Under the Investment Company Act of 1940, the investment adviser's contract must be renewed by a majority vote of either the fund's Board of Directors or the outstanding shares.
This means that the renewal can be approved by either the fund's Board of Directors or by a majority vote of the shareholders holding the outstanding shares. The Act provides flexibility in determining who has the authority to approve the renewal of the investment adviser's contract, allowing for input and decision-making from both the fund's management and its shareholders
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What challenges posed by it being a member of BRICS and what
possible challenges will it pose to South African economy if SA
exit BRICS?
BRICS is an acronym for Brazil, Russia, India, China, and South Africa. These countries were established as emerging economies with large markets and significant growth potential.
South Africa joined BRICS in 2011, becoming the organization's newest member. Challenges posed by it being a member of BRICS: Although being a member of BRICS has various benefits, such as trade and investment, it has also posed several challenges for South Africa. One such issue is the slow pace of reforms.
South Africa faces significant structural issues such as low growth, high unemployment, and inequality, which are exacerbated by a shortage of appropriate skills. As a result, South Africa has been accused of being the group's weakest link due to its comparatively smaller economy, insufficient infrastructure, and inadequate skill levels compared to the other members.
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BTL Company manufactures speaker systems. The company estimated there will be 49,500 units in inventory at the beginning of December 2019. BTL Company wants to have half of that amount in its inventory at the end of December. Based on the forecasted sales, 138, 100 speaker systems will be sold in the month of December Do not enter dollar signs or commas in the input boxes Use the negative sign for negative values or values that must be subtracted, a) Determine the number of speakers to be produced in December n Budgeted Production Units - b) Prepare a production budget. BTL Company Production Budget Month Ending December 31, 2019 Budgeted Sales Budgeted Ending Inventory Budgeted Beginning Inventory Budgeted Production Units
113,350 speaker systems would be the budgeted production units for BTL Company in December 2019. We must compute the budgeted production units by taking into account the projected sales as well as the intended ending and beginning inventory levels in order to establish the number of speakers to be manufactured in December.
given information: - 49,500 units are predicted to be in the initial inventory. Desired ending inventory: 24,750 units, which is equal to 50% of the anticipated beginning inventory (49,500/2) Units sold within budget: 138,100 We can use the following calculation to determine the budgeted production units: Budgeted Production Units are calculated as follows: Budgeted Sales + Desired Ending Inventory - Beginning Inventory Putting the values in the formula as substitutes: 138,100 + 24,750 - 49,500 are the budgeted production units. 113,350 are the budgeted production units The BTL Company's production budget for the month of December 2019 would consist of the the following details: Sales as planned: 138,100 units Ending Inventory Budgeted: 24,750 units Starting inventory budgeted at 49,500 units Units of Production Budgeted: 113,350
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An interesting video showed a man trying to deposit a banana into his bank account. The teller politely told him that only items that last for long periods of time are money. Therefore, she could not accept the banana as a deposit. What function of money did the banana lack? It cannot be counterfeited It is not a measure of worth It is not a store of value It is not a medium of exchange Question 59 1 pts Modern US currency is light and easy to carry. Therefore, it is ... stable divisible durable portable How do banks create money? The mint new coins They charges fees for services They take in deposits and make loans They print new currency Question 61 1 pts During the great recession of 2007 to 2009 , the U.S. economy experienced the greatest economic downturn since the Great Depression of the 1930s. Unemployment spiked at 25 percent and GDP declined 10 percent. Which action could the Federal Reserve Bank to end the recession? Raise the discount rate Increase the reserve requirements Print more money Buy government securities
The man who tried to deposit a banana in his bank account lacked the function of money, which is "store of value."
Money has several functions, including a medium of exchange, unit of account, store of value, and standard of deferred payment. It is accepted as a means of payment in exchange for goods or services in the first function. In the second function, the prices of products and services are expressed.
In the third function, it can be kept for future transactions as an item of value, and in the fourth function, it is utilized to repay obligations, such as loans, over an extended period of time.Banks generate money by taking in deposits and issuing loans. Deposits are kept by banks, and the money is utilized to give loans.
As a result, new money is created as banks take in deposits and create loans. Money in an economy is critical for its operation. It enables people to purchase goods and services while also allowing companies to grow. Money has various functions, including serving as a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.The Federal Reserve Bank, which is the central bank of the United States, is responsible for overseeing the economy's monetary policy.
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Read paragraph below and respond with a paragraph explaining your thought.
Central bankers are worried that inflation will become the norm. With the pandemic and war in Ukraine, the cost of goods and services has increased. With the high-interest rates, some economists are concluding we are headed towards another great depression. The high-interest rates are happening to strengthen the economy and the U.S. dollar. Yes, this will significantly affect the people at home, but it gives the U.S. a better outlook or ability to trade in the global market. With the conclusion of the Cold War and China's admission into the world economic system in the 1990s, increased flows of commerce, money, people, and ideas grew. Global supply chains were built by multinational corporations employing new technology to reduce costs by locating the lowest-cost factories and laborers Price reductions for several products were caused by global competition.
The article discusses that inflation may become the norm, and the pandemic and war in Ukraine have resulted in the increase in the cost of goods and services. Furthermore, high-interest rates have led some economists to believe that the United States is heading towards another great depression.
This situation may affect people at home, but it will give the United States a better outlook on trading in the global market.The conclusion of the Cold War and China's admission to the world economic system in the 1990s resulted in increased flows of commerce, money, people, and ideas. Global supply chains were created by multinational corporations utilizing new technology to reduce costs by locating the lowest-cost factories and laborers, leading to a decrease in prices for several products due to global competition. Globalization may be considered a positive development because it has reduced the cost of goods for consumers while also increasing competition and innovation, resulting in greater productivity. It is undeniable that global trade is critical to the economic development of many nations. Nonetheless, the benefits of globalization must be balanced against the risks, particularly to domestic employment and economic development.
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The equilibrium payoffs of the following sequential move game
are:
A. (1,4)
B. (-2,0)
C. (0,5)
D. (5,0)
The correct equilibrium payoffs of the following sequential move game are: (1,4).Given sequential move game is:In the given game, there are two players; Player 1 and Player 2 and there are two stages. The first stage is the nature move. In this stage, there is a probability of 0.5 for the occurrence of each node. The second stage is the player move. In this stage, each player chooses their strategy.
In this game, there are two sub-games. The first sub-game is the upper one, and the second sub-game is the lower one. The backward induction method is used to find the equilibrium payoffs of the game, which involves starting from the end of the game and working backward. In sub-game 2, Player 2 has two strategies: U and D. If Player 2 chooses U, then the payoff of Player 1 will be 4, and if Player 2 chooses D, then the payoff of Player 1 will be 1.So, Player 2 will choose the U strategy, which results in the equilibrium payoffs of (1,4).Therefore, the correct answer is A. (1,4).
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Please solve for the equilibrium quantity in the following
competitive market, where Qd is quantity demanded and Qs is
quantity supplied:
P = 104 - 6*Qd
P = 26 + 3*Qs
The equilibrium quantity in the market is 7, where the quantity demanded is equal to the quantity supplied.
The equilibrium quantity in a competitive market is the quantity where the quantity demanded is equal to the quantity supplied.
In this case, the demand function is P = 104 - 6Qd and the supply function is P = 26 + 3Qs.
We can set the two functions equal to each other to solve for the equilibrium quantity:
104 - 6*Qd = 26 + 3*Qs
88 = 9*Qd + 3*Qs
9*Qd = 62
Qd = 7
Therefore, the equilibrium quantity in the market is 7.
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these managers are largely responsible for creating the organization’s climate through their behaviors.
Managers are largely responsible for creating the organization's climate through their behaviors. Climate refers to the atmosphere of the organization, which includes its shared values, beliefs, attitudes, and behaviors that influence employee behavior.
Managers have a significant impact on their subordinates' perceptions of organizational climates, as they are responsible for setting the tone and pace of work within the organization. Employees watch their managers' behavior, actions, and reactions and interpret them in terms of what is acceptable and what is not. As a result, managers who model appropriate behaviors will create a positive and productive work environment, while those who do not will contribute to a negative and potentially harmful one. Employees tend to adjust their behaviors to reflect what they perceive as the prevailing attitudes and behaviors in the workplace. Therefore, the manager's behavior is one of the most critical factors in shaping the organization's climate.
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Which of the following statements is true regarding product and period costs?
Select one:
a. Office salaries expense and factory maintenance are both product costs.
b. Office rent is a product cost and supervisors' salaries expense is a period cost.
c. Factory rent is a product cost and advertising expense is a period cost.
d. Delivery expense is a product cost and indirect materials is a period cost.
e. Sales commissions and indirect labor are both period costs.
The correct statement regarding product and period costs is: c. Factory rent is a product cost and advertising expense is a period cost. Option C
Product costs and period costs are two categories used in cost accounting to classify different types of expenses related to the production and sale of goods or services. Understanding the distinction between these costs is important for accurate financial reporting and decision-making.
Product costs are costs directly incurred in the production process and are typically associated with the manufacturing or acquisition of goods. These costs are assigned to the inventory and are not expensed until the goods are sold. Examples of product costs include direct materials, direct labor, and manufacturing overhead costs like factory rent, utilities, and depreciation.
On the other hand, period costs are expenses not directly tied to the production process and are recognized as expenses in the period incurred. They are not included in the cost of goods sold or the valuation of inventory.
Period costs are typically associated with non-production functions such as sales, marketing, and administrative activities. Examples of period costs include advertising expenses, office rent, salaries of administrative staff, and sales commissions.
Option C
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Pena Company is considering an investment of $21,705 that provides net cash flows of $6,700 annually for four years. (a) If Pena Company requires a 7% return on its investments, what is the net present value of this investment? (PV of $1, FV of $1. PV of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. What is the net present value of this investment?
To calculate the net present value (NPV) of the investment, we need to discount the net cash flows using the required rate of return.
Given:
Initial investment: $21,705
Annual net cash flow: $6,700
Number of years: 4
Required rate of return: 7%
(a) Net Present Value (NPV) Calculation:
Step 1: Determine the discount factor using the appropriate present value of $1 table for a 7% interest rate and 4 years. The discount factor is the present value factor.
From the table, the present value factor for 7% and 4 years is 0.7130.
Step 2: Calculate the present value of each net cash flow.
Year 1: $6,700 * 0.7130 = $4,783.10
Year 2: $6,700 * 0.7130^2 = $3,409.96
Year 3: $6,700 * 0.7130^3 = $2,429.16
Year 4: $6,700 * 0.7130^4 = $1,730.86
Step 3: Calculate the net present value by subtracting the initial investment from the present value of the cash flows.
NPV = Present value of cash inflows - Initial investment
NPV = ($4,783.10 + $3,409.96 + $2,429.16 + $1,730.86) - $21,705
NPV = $12,353.08 - $21,705
NPV = -$9,351.92
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A market-to-book value less than one:
A) indicates that investors perceive the market value of the firm's assets is less than the depreciated value of the assets
B) indicates that the market value of firm's assets are probably undervalued
C) indicates that the market value of the firm's assets are probably overvalued
D) indicates that the book value of the firm's assets are based on an incorrect calculation of accumulated depreciation
Market-to-book value (M/B) less than one indicates that the market value of the firm's assets are probably undervalued. M/B is a financial metric that compares a firm's market value to its book value.
It is calculated by dividing the market capitalization by the book value of shareholders' equity.
Book value represents a firm's accounting value on its balance sheet, while market value represents the value that the stock market places on the firm's future growth prospects. A market-to-book value less than one suggests that investors do not place a premium on the company's assets and, as a result, the stock is undervalued.
The market capitalization, which represents the total value of the company's stock, is lower than the book value of the equity on the balance sheet. In summary, when a firm's M/B value is less than one, it indicates that the market value of the firm's assets is undervalued, hence it means that the answer is option B.
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Given a known population density, __________ primarily drive retailer's site selections for multiple stores in the same community.
None of these is correct.
trade areas
property values
mass transit routes
Given a known population density, trade areas primarily drive retailer's site selections for multiple stores in the same community.
Trade area refers to the geographic area that is convenient for consumers to do their shopping for goods and services. A trade area is defined by the circumstances and is unique for every retail location.It includes the physical characteristics of the area, like the neighborhoods, streets, buildings, and natural barriers.
Trade areas can be used to identify the locations of potential customers and competitors. So, given a known population density, trade areas primarily drive retailer's site selections for multiple stores in the same community. In conclusion, retailers take into account the trade areas that have been defined around the already established stores when they select the location for their new stores.
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Luna Ltd. acquired a machine on 30 th April 2018 for £104,500 financed with a 3-years loan. The company uses the straight-ne depreciation method. The estimated useful life of the machine is 20 years and the residual value equals £2,500. The accounting-year end for Luna Ltd. is 31 st December. Considering this information, which of the following statements is true on 31st December 2020? a. Net book value of the machine is £96,000 on 31st December 2020 . b. Accumulated depreciation of the machine on 31st December 2019 equals £8,500. c. The depreciation expense of the machine equals £5,100 on 31 st December 2018. d. None of the answers is true.
To determine the correct statement, let's calculate the depreciation expense and accumulated depreciation for each year.
Depreciation expense per year = (Purchase cost - Residual value) / Useful life
Depreciation expense per year = (£104,500 - £2,500) / 20
Depreciation expense per year = £102,000 / 20
Depreciation expense per year = £5,100
a. Net book value of the machine is £96,000 on 31st December 2020.
To determine the net book value, we subtract the accumulated depreciation from the purchase cost.
Net book value = £94,300
Therefore, statement a is incorrect because the net book value is £94,300, not £96,000.
b. Accumulated depreciation of the machine on 31st December 2019 equals £8,500.
The accumulated depreciation after 1 year (2018) = Depreciation expense per year × Number of years
Accumulated depreciation after 1 year = £5,100 × 1
Accumulated depreciation after 1 year = £5,100
Therefore, statement b is incorrect because the accumulated depreciation on 31st December 2019 is £5,100, not £8,500.
c. The depreciation expense of the machine equals £5,100 on 31st December 2018.
This statement is correct because the depreciation expense per year is £5,100, and the machine was acquired on 30th April 2018, so it had been used for a portion of the year.
Therefore, the correct statement is c. The depreciation expense of the machine equals £5,100 on 31st December 2018.
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Johnson, Inc., a U.S.-based MNC, will need 10 million Thai baht on August 1. It is now May 1. Johnson has negotiated a non-deliverable forward contract with its bank. The reference rate is the baht’s closing exchange rate (in $) quoted by Thailand’s central bank in 90 days. The baht’s spot rate today is $.02. If the rate quoted by Thailand’s central bank on August 1 is $.022, Johnson will ________ $__________.
A) pay; 20,000
B) be paid; 20,000
C) pay; 2,000
D) be paid; 2,000
E) none of the above
If the rate quoted by Thailand’s central bank on August 1 is $.022, Johnson will pay $20,000.The correct answer is A) pay; 20,000.
A non-deliverable forward (NDF) contract is a financial agreement used to hedge foreign exchange risk. In this case, Johnson, Inc., a U.S.-based multinational corporation (MNC), needs 10 million Thai baht on August 1. To protect against potential exchange rate fluctuations, Johnson has negotiated an NDF contract with its bank.
The NDF contract's settlement will be based on the reference rate, which is the baht's closing exchange rate quoted by Thailand's central bank in 90 days. The spot rate, which is the current exchange rate, is given as $0.02.
If the rate quoted by Thailand's central bank on August 1 is $0.022, it means that the Thai baht has appreciated against the U.S. dollar. In this scenario, Johnson, Inc. will have to pay the bank the predetermined amount in U.S. dollars based on the agreed exchange rate.
Payment amount = Amount in baht × Exchange rate
Payment amount = 10,000,000 baht × $0.002 = $20,000
Hence, the correct answer is A) pay; $20,000.
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Identify the key assumption(s) made about a Nash equilibrium. (Check all that apply.)
-All players understand that other players understand the game.
-All players understand the game and the payoffs associated with each strategy.
The key assumptions made about a Nash equilibrium are:
All players understand the game and the payoffs associated with each strategy.
All players understand that other players understand the game.
Both of these assumptions are important for the concept of Nash equilibrium. The first assumption ensures that players have knowledge of the game's rules, strategies, and potential outcomes. The second assumption implies that players have a rational understanding of the payoffs associated with different strategies and can make informed decisions based on that knowledge.
By assuming that all players understand the game and its payoffs, Nash equilibrium analysis can be used to predict stable outcomes where no player can unilaterally deviate from their chosen strategy to improve their own outcome. These assumptions form the foundation for analyzing strategic interactions and equilibrium outcomes in various fields, including economics, game theory, and social sciences.
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Q1) an index is 1,200 . The three-month risk-free rate is 4% per annum and the dividend yield over the next three months is 1.2% per annum. The six-month risk-free rate is 4.5% per annum and the dividend yield over the next six months is 1% per annum. Estimate the futures price of the index for three-month and six-month contracts. All interest rates and dividend yields are continuously compounded
The futures price of the index for three-month and six-month contracts is to be estimated with an index of 1,200, 3-month risk-free rate is 4% per annum, 3-month dividend yield is 1.2% per annum,
6-month risk-free rate is 4.5% per annum and 6-month dividend yield is 1% per annum. All interest rates and dividend yields are continuously compounded. The formula to calculate futures price is given by,
Future price = S0 × e^(r−q)×T
where S0 = current spot price of the index;
r = continuously compounded risk-free rate of interest;
q = continuously compounded dividend yield;
T = time to maturity of the futures contract.
For three-month contracts, we need to find the future price after 3 months. Therefore, the time to maturity of the futures contract (T) is 0.25.Using the above formula,
we get,
Futures price for 3-month contracts = 1200 x [tex]e^{(0.04 - 0.012)[/tex] x 0.25
Futures price for 3-month contracts = 1200 x [tex]e^{0.028[/tex] x 0.25
Futures price for 3-month contracts = 1200 x [tex]e^{0.007[/tex]
Futures price for 3-month contracts = 1200 x 1.007027
Futures price for 3-month contracts = 1208.432
For six-month contracts, we need to find the future price after 6 months. Therefore, the time to maturity of the futures contract (T) is 0.5.Using the above formula, we get,
Futures price for 6-month contracts = 1200 x [tex]e^{(0.045 - 0.01)[/tex] x 0.5
Futures price for 6-month contracts = 1200 x [tex]e^{0.035[/tex] x 0.5
Futures price for 6-month contracts = 1200 x [tex]e^{0.0175[/tex]
Futures price for 6-month contracts = 1200 x 1.017679
Futures price for 6-month contracts = 1215.214
Hence, the futures price of the index for three-month and six-month contracts is 1208.432 and 1215.214 respectively.
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Martin corporation reported net sales of $768,000, net income of $139,000 and total assets of $7,664,355. the profit margin is
553.0% 5.53% 81.90% 1.81% 18.10%
The given information in the problem is:
Net sales = $768,000
Net income = $139,000
Total assets = $7,664,355
We know that the profit margin is the ratio of net income to net sales.
This can be represented as: Profit margin = Net income/Net sales
Now, substituting the values given in the problem, we get:
Profit margin= $139,000/$768,000
Profit margin= 0.181
This value can be converted to a percentage by multiplying it with 100.
Hence, Profit margin= 0.181 × 100
Profit margin= 18.1%
Therefore, the profit margin for Martin Corporation is 18.1%.
Hence, the correct option is 18.10%.
Note: The profit margin indicates how much profit a company generates per dollar of sales. In simple words, it measures the efficiency of the company in generating profit from the sales it makes.
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Final Paper Instructions A technical writer may be assigned the task of compiling an emergency plan for a company. A strategic emergency is nem to understand what to do in the case of an emergency. Please think of the current pandemic and write a 1-2 page document outlining a return to work plan after a pandemic. Please include the following areas: 1. How to phase employees back into the workplace 2. Social distancing plan 3. How to handle emergencies in the workplace (employee illness) 4. How to relay the emergency plan to employees Your paper will be due next week in week 12 of the class. Please submit within the week 12 module.
Introduction A technical writer is responsible for creating documents that are clear, concise, and informative. When it comes to compiling an emergency plan for a company, it is essential to understand the steps to take in the event of an emergency.
As the world is currently dealing with a pandemic, it is crucial to have a plan in place for the return to work after the pandemic. This 1-2 page document will outline a return to work plan after the pandemic. It will include the following areas: 1. How to phase employees back into the workplace
2. Social distancing plan
3. How to handle emergencies in the workplace (employee illness)
4. How to relay the emergency plan to employeesPhasing Employees Back into the Workplace After a pandemic, it is important to phase employees back into the workplace gradually. This is to prevent overcrowding and ensure that the workplace is safe for everyone. The following phases are recommended:
Phase 1: Essential Workers Only - Only employees that are essential to the running of the business should return to work. This includes employees that cannot work from home or those that are needed to get the business up and running. This phase should last for two weeks.
Phase 2: Rotating Work Schedule - After the first two weeks, the next phase should include a rotating work schedule. This will allow employees to come back to work but on a rotating schedule. This will allow for social distancing and ensure that the workplace is not overcrowded. This phase should last for two weeks.
Phase 3: Return to Full Schedule - After two weeks of the rotating schedule, the company can then move to a full schedule. This means that all employees will be back to work and will be following the social distancing guidelines.
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A stock has a beta of 1.7. The expected return on the market is 8% and T-bills are yielding 2%. What is the expected return on the stock? show all calculations.
a 11.50%
b 10.95%
c 12.20%
d 10.00%
e 12.00%
Beta is a metric that reflects the sensitivity of an asset's return to the market's return. Beta is frequently employed in capital asset pricing model (CAPM) calculations, which are used to calculate the anticipated return of an asset given the return of the market. The expected return on the stock is 12.2%. Hence, the correct option is c) 12.20%.
The anticipated return on a stock is determined by using the capital asset pricing model (CAPM), which includes the risk-free rate, expected market return, and beta. The following is the formula for the capital asset pricing model (CAPM):E(Ri)=Rf + [E(Rm)-Rf] x βi, where:E(Ri) = expected return on stock iRf = risk-free rate (2%)E(Rm) = expected return on market (8%)βi = beta of stock iLet's put the given values into the formula:E(Ri) = 2% + (8% - 2%) x 1.7E(Ri) = 2% + (6%) x 1.7E(Ri) = 2% + 10.2% = 12.2%Therefore, the expected return on the stock is 12.2%.
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In an Edgeworth box, suppose that the preferences of the two consumers are represented by lines (and not curves) with different marginal rates of substitution (the slopes of the lines are different). In this case, the competitive market equilibrium is necessarily:
A. On the price line that goes through the initial endowment
B. an allocation with all units of one good for one consumer, and all units of the other good for the other consumer
C. impossible to find
D. the initial endowment
E. an allowance on the edges of the Edgeworth box
Edgeworth Box is an economic model, named after Francis Ysidro Edgeworth, that can help in demonstrating how two-party, two-good exchange relationships can be in equilibrium. In an Edgeworth box, the preferences of the two consumers are represented by lines (and not curves) with different marginal rates of substitution (the slopes of the lines are different). In this case, the competitive market equilibrium is necessarily on the price line that goes through the initial endowment.
Therefore, option (A) is the correct answer. This is because; the competitive market equilibrium in an Edgeworth box, where the preferences of the two consumers are represented by lines (and not curves) with different marginal rates of substitution, is necessarily on the price line that goes through the initial endowment.
It can be observed that with unequal slopes of the indifference curve, the point of maximum satisfaction for both the consumers can't be located on the contract curve. However, an optimal point of equilibrium is located on the price line. The allocation of goods to each consumer varies with the preference of the consumers.
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Which of the following is NOT associated with an inefficient allocation of resources?
1. Oligopolies
2. Monopolies
3. Perfect competition
4. None of the above
Perfect competition is not associated with an inefficient allocation of resources. Efficient allocation of resources refers to the distribution of resources in a way that maximizes the total benefit of society. The efficient allocation of resources occurs when goods and services are produced and distributed according to the wants and needs of consumers.
The term "market structure" refers to the level of competition in a market. In a monopoly, there is only one supplier of a particular good or service, while in an oligopoly, there are a few suppliers. In perfect competition, there are many suppliers of a particular good or service, and each supplier is too small to influence the market price.
In a monopoly or oligopoly, firms have the power to control the price and quantity of goods and services they produce and sell. This leads to inefficient allocation of resources because the price charged is usually higher than the equilibrium price and the quantity supplied is lower than the equilibrium quantity.
On the other hand, in perfect competition, the price charged is equal to the equilibrium price, and the quantity supplied is equal to the equilibrium quantity. Hence, there is an efficient allocation of resources in a perfect competition market structure.
Therefore, the answer to the question is option 3, Perfect competition, since it is not associated with an inefficient allocation of resources.
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You are the County Commissioner of Hazard County. Jeb brings a complaint before you that Dwight's hog farm is creating a terrible odor.
Your first instinct is to tell the neighbors to work it out among themselves. The __________ provides theoretical support for private bargaining as an effective approach to _____________
The Coase Theorem provides theoretical support for private bargaining as an effective approach to externality problems.
The Coase Theorem states that, in the absence of transaction costs, the parties to an externality problem will be able to bargain and reach an efficient solution, even if the property rights are not initially well-defined. In the case of Jeb and Dwight, the externality problem is the odor from Dwight's hog farm.
If Jeb and Dwight are able to bargain effectively, they will be able to reach an agreement that minimizes the negative impact of the odor on Jeb and maximizes the profits of Dwight's hog farm.
Of course, in the real world, transaction costs can prevent the parties from reaching an efficient solution. For example, Jeb and Dwight may not be able to agree on a price for the odor, or they may not be able to trust each other to uphold their end of the bargain. In these cases, the government may need to intervene to ensure that an efficient solution is reached.
If the parties are able to bargain effectively, they will be able to reach an efficient solution that benefits both of them.
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suppose george and his wife martha own a small corporation with less than 50 employees, of which george and martha are the only shareholders. they each own 50% of the total shares of the corporation. the corporation is a restaurant supply business that has fallen on hard times when the economy went south as a result of the pandemic. the company has been unable to pay its bills and its debt. the company's creditors have sued george and martha, claiming they should be personally liable for the corporation's debt.
George and his wife Martha own a small corporation with less than 50 employees, of which George and Martha are the only shareholders. they each own 50% of the total shares of the corporation.
In this case, George and Martha as the sole shareholders of a small corporation facing financial difficulties may potentially be held personally liable for the company's debt.
The concept of piercing the corporate veil allows creditors to pursue the personal assets of shareholders under certain circumstances and the factors such as the failure to maintain corporate formalities and corporate assets.
Therefore, the decision to pierce the corporate veil is subject to the laws and regulations of the specific jurisdiction.
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Palmer Bhd. markets tennis balls to various clients throughout Malaysia. The company is reviewing its purchasing policy. It expects to sell 750,000 tennis balls next year. A 3-Ball can have a selling price of RM29.75 and is purchased for RM8.25 per ball. The company places an order for 187,500 tennis balls at regular intervals throughout the year. Storage and other carrying cost are estimated at RM0.05 per ball. Ordering cost is RM235 per order. The company maintains a safety (buffer) stock which is sufficient to meet demand for 20 working days and the delivery time is 14 days based on a 365-day year. The demand for such balls per year is about 250,000 3-Ball cans. Required: a) Calculate the reordering level. b) Calculate the annual cost of the current ordering policy. ( 9 Marks) c) Calculate the annual cost of the economic order quantity model policy. d) What order size should the company place? (Total: 25 Marks)
a) Reordering level The reordering level is the level of inventory at which a company has to order a new batch of inventory to ensure that it does not run out of stock.
Reordering Level = Maximum usage rate x Maximum lead time= (250,000 / 365) x (14 + 20)= 2,945 balls
b) Annual cost of the current ordering policy
Total Annual Cost (TAC) = (Annual ordering cost) + (Annual carrying cost)= [(Number of orders per year) x (Ordering cost per order)] + [(Average inventory) x (Carrying cost per unit)]
Number of orders per year = Annual demand / Order quantity per order= 250,000 / 187,500= 1.33 orders
Ordering cost per order = RM235Average inventory = Order quantity per order / 2= 187,500 / 2= 93,750
Carrying cost per unit = RM0.05
Total Annual Cost (TAC) = (1.33 x 235) + (93,750 x 0.05)= RM 26,198.75
c) Annual cost of the economic order quantity (EOQ) model policy
EOQ = √ [(2 x Annual demand x Ordering cost per order) / Carrying cost per unit]= √ [(2 x 250,000 x 235) / 0.05]= √ 23,500,000= 4,848 units
Total Annual Cost (TAC) = (Annual demand / EOQ) x (Ordering cost per order) + (EOQ / 2) x (Carrying cost per unit)= (250,000 / 4,848) x 235 + (4,848 / 2) x 0.05= RM 9,755.11
d) Order size that the company should place The order size that the company should place is the EOQ which is 4,848 units as calculated above.
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A researcher wants to know the daily number of hours college students spent playing computer games. A random sample of 10 college students were selected. The mean was found to be 3.2 hours with a sample standard deviation of 2.4 hours. A 95% confidence interval estimate is constructed. Which of the following statements is true?
The point estimate is 5.6 hours.
z-distribution is to be used to construct the interval.
t-distribution is to be used to construct the interval.
The standard error is 0.1.
If the mean was found to be 3.2 hours with a sample standard deviation of 2.4 hours, t-distribution is to be used to construct the interval. The correct statement is c)
In this scenario, a random sample of 10 college students was selected to estimate the daily number of hours spent playing computer games. The sample mean was found to be 3.2 hours, and the sample standard deviation was 2.4 hours.
To construct a confidence interval estimate, we need to consider the distribution of the sample mean. Since the population standard deviation is unknown and the sample size is small (n < 30), the t-distribution should be used.
The t-distribution takes into account the variability of the sample mean and provides more accurate confidence intervals for small sample sizes. It has fatter tails compared to the standard normal distribution (z-distribution), which accounts for the added uncertainty due to the smaller sample size.
The confidence interval estimate will provide a range of values within which the true population mean is likely to fall. The choice of using the t-distribution reflects the need to account for the variability associated with small sample sizes, improving the accuracy of the estimate.
Therefore, the correct statement is c) t-distribution is to be used to construct the interval.
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barrington box enterprises has two divisions, large and small, that share the common costs of the company's communications network. the annual common costs are $4,250,000. you have been provided with the following information for the upcoming year: calls time on network (hours) large 111,000 170,000 small 74,000 255,000 the cost accountant determined $2,650,000 of the communication network's costs were fixed and should be allocated based on the number of calls. the remaining costs should be allocated based on the time on the network. what is the total communication network costs allocated to the large box division, assuming the company uses dual-rates to allocate common costs?
The total communication network costs allocated to the large box division, assuming the company uses dual-rates to allocate common costs, is $2,230,000.
To determine the total communication network costs allocated to the large box division, we need to follow these steps:
1. Calculate the total number of calls for both divisions:
- Large division: 111,000 calls
- Small division: 74,000 calls
2. Determine the allocation of fixed costs based on the number of calls:
- The cost accountant determined that $2,650,000 of the communication network's costs were fixed and should be allocated based on the number of calls.
- To allocate the fixed costs, we need to determine the proportion of calls made by each division out of the total calls.
- Total calls: 111,000 (large division) + 74,000 (small division) = 185,000 calls
- Proportion of calls made by the large division: 111,000 / 185,000 = 0.6
- Proportion of calls made by the small division: 74,000 / 185,000 = 0.4
- Allocation of fixed costs to the large division: $2,650,000 * 0.6 = $1,590,000
3. Allocate the remaining costs based on the time on the network:
- The remaining costs are $4,250,000 (total common costs) - $2,650,000 (fixed costs) = $1,600,000
- We need to allocate these costs based on the time spent on the network by each division.
- Total time on the network: 170,000 hours (large division) + 255,000 hours (small division) = 425,000 hours
- Proportion of time on the network for the large division: 170,000 / 425,000 = 0.4
- Proportion of time on the network for the small division: 255,000 / 425,000 = 0.6
- Allocation of remaining costs to the large division: $1,600,000 * 0.4 = $640,000
4. Calculate the total communication network costs allocated to the large box division:
- Total allocated costs for the large division: Fixed costs + Remaining costs = $1,590,000 + $640,000 = $2,230,000
Therefore, the total communication network costs allocated to the large box division, assuming the company uses dual-rates to allocate common costs, is $2,230,000.
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1) Why is it necessary for a company to build a data
warehouse?
2) What could go wrong if a company did analysis on their
operational database?
Conducting analysis on operational databases can impact performance, data consistency, analytical capabilities, security, and compliance.
It is necessary for a company to build a data warehouse for several reasons: a) Centralized Data: A data warehouse provides a centralized repository where data from various sources within the organization can be consolidated. This allows for easy access to integrated and consistent data, eliminating data silos and ensuring data integrity. b) Data Analysis and Reporting: A data warehouse is designed to support complex analytical queries and reporting requirements. By organizing and structuring data in a way that is optimized for analysis, it enables efficient data mining, trend analysis, and decision-making. c) Historical Data Preservation: A data warehouse typically stores historical data over a long period. This allows organizations to track and analyze trends, patterns, and historical performance, which can be valuable for strategic planning, forecasting, and identifying business opportunities.
d) Performance and Scalability: Operational databases are optimized for transactional processing and day-to-day operations. Analyzing data directly from operational databases can put a heavy load on the system, impacting its performance and scalability. A data warehouse acts as a separate environment, optimized for analytical processing, ensuring that operational systems are not affected.
e) Data Integration and Transformation: Data warehouses provide mechanisms to integrate and transform data from different sources, including legacy systems, external databases, and third-party applications. This consolidation and transformation process ensures data consistency and standardization for analysis, even when the source systems have different data structures or formats.
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When Arthur Andersen audited Enron, they should have recognized an acceptable level of detection risk is inversely related to the:
a. Assurance provided by substantive testing
b. Risk of misapplication of audit procedure
c. Preliminary judgement about materiality levels
d. Risk of failing to discover material misstatements.
The option is d. Risk of failing to discover material misstatements.
Auditors should recognize that an acceptable level of detection risk is inversely related to the risk of failing to detect significant misstatements. In other words, the greater the auditor's concern about the risk of material misstatement, the lower the acceptable level of detection risk and the more persuasive the evidence required to reduce detection risk to an acceptable level. The auditor's assessment of risk is the driving force behind audit planning, control, and testing activities.
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Mr Ranjit, who is a trader trade with a share portfolio valued at RM1 million, thinks that the
local stock market will nosedive in line with the overall bearish outlook on regional bourses.
This is underpinned by the incessant surge of world oil and food prices which provide trading
opportunities for those who simply wish to take a view on the direction of the local market.
Therefore, Mr Ranjit wishes to protect his investment against any unexpected fall in the share
market. In June, the stock index futures trade at 1182.0. In the same month, he decides to
hedge using September KLCI futures which are trading at 1194.0 Later in September, KLCI
closed at 1159.0.
a. Do you think it is important for Mr Ranjit to protect his investment? Why?
b. Outline an appropriate hedging strategy for Mr Ranjit.
c. Illustrate the outcome of the hedging strategy assuming Mr Ranjit closes out his
position in early September at a price of 1163.0.
d. Comment the outcome of the hedging strategy proposed.
e. How hedger can use the futures market to protect his position in the cash market?
a. It is crucial for Mr Ranjit to safeguard his investment against any unexpected fall in the stock market.
b. The most appropriate hedging strategy for Mr Ranjit is to purchase the KLCI futures at 1194.0 in June to cover his current share portfolio value of RM1 million.
c. Mr Ranjit's profits are as follows:
Change in Portfolio Value = RM1,000,000 - (1182/100 × RM1,000,000) = RM18,000Profits from futures market = (1194 - 1182) × RM50 = RM600
Profits from Hedging = RM18,000 + RM600 = RM18,600
d. The hedging strategy has worked well for Mr Ranjit, as it has reduced the risk of any unexpected decline in the stock market, and he has benefitted from the futures market's profits.
e. A hedger can use the futures market to protect his position in the cash market by taking the following steps:
To reduce risk, he buys futures to cover his current position, which provides security to his current holdings.As the futures contracts expire, the position in the futures market is closed, and the hedger profits or losses based on the differential between the spot and futures market rates.
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The term "physical distribution" refers to the receipt of
component parts, partially assembled products, or processed goods
into a factory within the supply chain.
True
False
The "sorting function"
The statement "The term "physical distribution" refers to the receipt of component parts, partially assembled products, or processed goods into a factory within the supply chain" is False. Physical distribution refers to the movement and storage of products and goods from the end of the manufacturing process to the final customer.
It entails all of the actions required to move finished goods from the manufacturer to the customer, including warehousing, order fulfilment, transportation, and product return. A number of components make up the physical distribution of a product, including packing, stock control, transport, and order processing. Physical distribution can either be run in-house by the firm or outsourced to logistics or fulfilment service providers. Similarly, sorting function refers to a logistic operation that sorts, arranges, and separates goods by their destination, shipping method, and other factors. Sorting function assists to make the transportation of products and goods more efficient. Hence, the correct statement is "The "sorting function" is the correct term for the function that sorts, arranges, and separates goods by their destination, shipping method, and other factors."
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