NCC Bank Limited is a private sector commercial bank in Bangladesh. Its primary focus is to manage liquid assets. It follows a sound asset-liability management policy.
NCC Bank Limited’s management of liquid assets is good, which has helped it achieve a good financial performance.
Liquid assets refer to cash, securities, and other assets that can be converted to cash quickly. Banks must manage their liquid assets efficiently to maintain liquidity. Liquidity is crucial for banks as they need to meet their customers’ cash demands and maintain their confidence. The bank’s management of liquid assets is also important because it affects its profitability.
NCC Bank Limited manages its liquid assets by investing in government securities, inter-bank call money market, and short-term deposits. The bank invests in government securities, such as treasury bills and bonds, which are highly liquid. It also invests in inter-bank call money market, which allows it to earn a higher return on its liquid assets. The bank also invests in short-term deposits, which provide higher returns than current accounts.
NCC Bank Limited’s management of liquid assets has helped it achieve a good financial performance. The bank’s liquidity ratio is good, which indicates that it has sufficient liquid assets to meet its short-term obligations. Its return on assets and return on equity are also good, which indicates that the bank is managing its assets and equity efficiently.
In conclusion, NCC Bank Limited’s management of liquid assets is good, which has helped it achieve a good financial performance. The bank manages its liquid assets by investing in government securities, inter-bank call money market, and short-term deposits. Its liquidity ratio, return on assets, and return on equity are good, which indicates that the bank is managing its assets and equity efficiently.
To know more about management visit:
https://brainly.com/question/32216947
#SPJ11
When a store sells an item to a customer, the store transfers possession from the store to the consumer. Which type of utility does this best describe?
A.
Place utility
B.
Time utility
C.
Possessor utility
D.
Value utility
E.
Ownership utility
When a store sells an item to a customer, the store transfers possession from the store to the consumer. The utility is E. Ownership utility.
When a store sells an item to a customer and transfers possession from the store to the consumer, it best describes ownership utility. Ownership utility refers to the value or satisfaction that a customer derives from owning a product or having physical possession of it.
By purchasing the item, the customer gains ownership and control over the product, allowing them to use it, benefit from it, or dispose of it as they see fit. This transfer of possession creates ownership utility as it fulfills the customer's desire to possess and control the product.
The other types of utility mentioned are:
A. Place utility: The convenience and accessibility of a product or service to customers in the desired location.
B. Time utility: The availability of a product or service when it is needed or desired by customers.
C. Possessor utility: The ability to physically handle or touch a product before making a purchase decision.
D. Value utility: The perception of a product's worth or value based on its features, quality, and price.
While these types of utility are important in the overall customer experience, the specific scenario described in the question relates to the transfer of possession, which aligns with ownership utility.
To learn more about, customer, click here, https://brainly.com/question/31192428
#SPJ11
A bond is issued at a price of $1500 and pays a interest of $50 per year for the next 10 years. If the interest rate in the market is 4.5% and the bond is redeemed for a price of $1500 then what is the price of the bond today
Face value or par value (FV) of the bond = $1500Coupon rate or interest rate (r) = $50Number of years (n) = 10Market interest rate or required rate of return (i) = 4.5%To find:
The price of the bond today Formula used: The price of the bond is calculated using the following formula:
Price of bond = Present value of interest payments + Present value of face value of the bond Or Price of bond = (Coupon payment / (1 + i)¹ + Coupon payment / (1 + i)² + + Coupon payment / (1 + i)ⁿ) + (FV / (1 + i)ⁿ) Where, Coupon payment = FV × r.
Price of bond = (Coupon payment / (1 + i)¹ + Coupon payment / (1 + i)² + Coupon payment / (1 + i)ⁿ) + (FV / (1 + i)ⁿ)= ($750 / (1 + 4.5%)¹ + $750 / (1 + 4.5%)² + ... + $750 / (1 + 4.5%)¹⁰) + ($1500 / (1 + 4.5%)¹⁰)= ($750 / 1.045¹ + $750 / 1.045² + ... + $750 / 1.045¹⁰) + $1500 / 1.045¹⁰= ($750 / 1.045 + $750 / 1.045² + ... + $750 / 1.598) + $844.11≈
To Know more about Coupon payment
https://brainly.com/question/29036738
#SPJ11
____ inflation and current account _____ will lead to currency crises. Group of answer choices High; deficit Low; surplus High; surplus Low; deficit
High inflation and current account deficit will lead to currency crises.If a country's currency continues to decrease in value, then it can lead to a situation where investors lose confidence in the currency, which can cause a currency crisis.
Inflation is the rate at which the prices of goods and services are increasing in an economy. When inflation increases, the purchasing power of the currency decreases.In contrast, the current account deficit refers to the situation where a country's imports are more significant than its exports.
High inflation and a current account deficit can both lead to a currency crisis. A currency crisis is a situation where there is a sharp depreciation of a country's currency value.
When inflation is high, the purchasing power of the currency decreases, meaning that people can buy fewer goods and services for the same amount of money.
This can lead to a decrease in foreign investment and a decrease in exports, as people are less likely to purchase goods and services from countries where the currency has decreased in value. A current account deficit can also lead to a currency crisis.
If a country is importing more than it is exporting, then there is a greater demand for foreign currency to pay for these imports. As a result, the value of the country's currency can decrease.
To learn more about foreign currency
https://brainly.com/question/28180135
#SPJ11
A business executive has the option to invest money in two plans: Plan A guarantees that each dollar invested will earn 70 cents a year later, and plan B guarantees that each dollar invested will earn $2 after 2 years. In plan A, investments can be made annually, and in plan B, investments are allowed for periods that are multiples of two years only. How should the executive invest $100, 000 to maximize the earnings at the end of 3 years? Formulate a linear program and find the optimal solution. *** USING PYTHON CODE****
Linear programming is a method of optimizing a linear objective function and linearly equal constraints over a polyhedron.
The Polyhedron is characterized by a set of linear inequality constraints or equations. It can be implemented with the help of Python.
First, let us begin by defining the variables. Let x be the amount spent on plan A, and let y be the amount spent on plan B. The total amount spent will be $100,000, therefore:
x + y = 100000
The next step is to compute the amount earned in each plan. For plan A, the investment is made annually, therefore the interest rate must be adjusted for the number of years. 70 cents in the first year will be worth 77 cents after two years, and 85 cents after three years. Therefore, the amount earned in plan A is:
0.7x + 0.77x + 0.85x
For plan B, the interest rate is $2 after two years. This must be adjusted for the number of years invested, therefore the amount earned in plan B is:
$[tex]\frac{2y}{2}[/tex] + $[tex]\frac{2y}{2}[/tex] + $[tex]\frac{2y}{2}[/tex]
$1.04y
The total amount earned is:
x + y = $0.7x + $0.77x + $0.85x + $1.04y
The objective is to maximize this amount. Therefore, the linear program is: Maximize
z = $0.7x + $0.77x + $0.85x + $1.04y
Subject to:
x + y = 100000x, y >= 0
We can implement this linear program in Python using the PuLP package.
Learn more about Linear programming: https://brainly.com/question/30763902
#SPJ11
2. The Go-Blue Company has common stock outstanding that has a current price of $20 per share and the most recent dividend $1.50/ share. G0-Blue's dividends are expected to grow at a rate of 5% per year, forever. The expected risk-free rate of interest is 4%, and the expected market Risk premium is 8%. The beta on Go-Blue 's stock is 1.2. a. What is the cost of equity for Go-Blue using the constant dividend growth model? b. What is the cost of equity for Go-Blue using the capital asset pricing model? c. Calculate the overall cost of equity. (Average of the two methods).
The cost of equity for Go-Blue using the constant dividend growth model The constant dividend growth model is also known as the Gordon Model. It is used to calculate the cost of equity of a firm that pays dividends and grows at a constant rate.
The formula to calculate the cost of equity for Go-Blue using the constant dividend growth model is as follows:
Cost of equity using the constant dividend growth model (Ke) = (Expected dividend/ Current stock price) + growth rate [tex]Ke = (1.5/20) + 5% Ke = 12.5%b[/tex]
The cost of equity for Go-Blue using the Capital Asset Pricing Model The Capital Asset Pricing Model (CAPM) is a financial model that is used to calculate the cost of equity of a company. The formula to calculate the cost of equity for Go-Blue using the Capital Asset Pricing Model is as follows:
[tex]CAPM = Rf + Beta × (Rm - Rf)CAPM = 4% + 1.2 × 8%CAPM = 13.6%c[/tex]
The overall cost of equity (Average of the two methods)To calculate the overall cost of equity, we need to take the average of the two methods.
[tex]Overall cost of equity = (Ke using constant dividend growth model + Ke using CAPM)/ 2[/tex]
[tex]Overall cost of equity = (12.5% + 13.6%)/ 2[/tex]
[tex]Overall cost of equity = 13.05%[/tex]
Thus, the [tex]overall cost of equity of Go-Blue is 13.05%.[/tex]
To know more about Gordon Model visit:
https://brainly.com/question/30355598
#SPJ11
When people think about organisational structure, the obvious things that come to their minds are the organisational chart, the functional departments, and the authority that various positions have in the organisation. The other design Issues related to structure, differentiation and integration aithough not so obvious are by no means less important. Summarise how authority operates in the organisation, and how differentiation and integration influence an organisation's structure. What information does the organisation chart convey about the organisation?
Authority is the power to give orders, make decisions, and enforce obedience; the exercise of such power is regarded as one’s right. Differentiation refers to the distribution of tasks among various people, groups, or departments, which in turn form divisions, while integration refers to coordination. The organizational chart provides information about the structure of the organization, such as who is in charge of which department and how various roles are connected.
An organizational chart typically shows how various departments, teams, or positions within a company are connected. By displaying the organization’s hierarchy, it assists in determining the division of work, the chain of command, and the span of control.
A company's organizational structure's overall effectiveness is influenced by how well authority is exercised in the company. Authority is the power to give orders, make decisions, and enforce obedience, and its exercise is regarded as one’s right. It's crucial to an organisation because it gives an individual, position, or department the ability to get things done.
Thus, the distribution of authority in an organisation significantly impacts its structure.Differentiation and integration are the two factors that impact a company's organisational structure. Differentiation refers to the distribution of tasks among various people, groups, or departments, which in turn form divisions. On the other hand, integration refers to coordination.
The degree of differentiation and integration required in a company is determined by the type of work it performs, the number of employees, and the geographical areas it covers.
The organizational chart provides information about the structure of the organization, such as who is in charge of which department and how various roles are connected. It is essential for new employees because it helps them understand the organizational structure and where they fit in.
Additionally, it's used to clarify job roles, identify opportunities for improvement, and assist with strategic planning. The organizational chart is a tool for achieving organizational goals and is utilized in a variety of circumstances.
To learn more about Differentiation
https://brainly.com/question/31539041
#SPJ11
A company's income statement for 2021 showed the following: Net income, SR150, 000; depreciation expense, SR20,000 - Changes in current assets and current liabilities: Accounts receivable decreased SR20, 000 merchandise inventory increased 8,000 accounts payable increased 3,000. Required: Prepare the operating activity section of the statement of cash flow using the indirect method.
The operating activity section of the statement of cash flow using the indirect method is prepared using the income statement for 2021 as well as changes in current assets and current liabilities.
The purpose of this statement is to demonstrate the cash generated and spent from the company's normal business activities, which is an important metric for investors, analysts, and management teams.
The indirect method involves adjusting net income to account for non-cash items and changes in current assets and liabilities that occurred during the year. Depreciation expense is added back to net income since it is a non-cash expense.
Changes in current assets and current liabilities are then added or subtracted to net income to calculate cash flow from operating activities.
Using this information, we can prepare the operating activity section of the statement of cash flow as follows:
Net income = SR150,000
Add back depreciation = SR20,000
Operating income = SR170,000
Increase in accounts receivable = -SR20,000
Increase in inventory = SR8,000
Increase in accounts payable = SR3,000
Net cash flow from operating activities = SR161,000
Therefore, the operating activity section of the statement of cash flow using the indirect method is SR161,000.
To know more about income visit:
https://brainly.com/question/2386757
#SPJ11
the first sdlc model, replaced in many organizations but still used for very complex systems
The Waterfall model was the first SDLC (Software Development Life Cycle) model that was introduced in 1970 by Winston Royce.
This model is a sequential and linear approach to software development, meaning that each phase must be completed before the next phase can start. This model has been replaced in many organizations by more iterative and flexible approaches, such as Agile and DevOps.
The Waterfall model is still used for very complex systems where there is a clear understanding of the requirements and the system architecture. This is because the Waterfall model requires a lot of planning and documentation, which can be beneficial for complex systems that need to be developed over a long period of time.
To know more about introduced visit:
https://brainly.com/question/13154284
#SPJ11
Correcting for negative externalities - Regulation versus tradablepermits
Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods:
The government can choose between two methods to reduce total pollution emitted by the three local firms: regulation or tradable permits.
Under this method, the government sets specific limits or standards for pollution emissions that each firm must adhere to. In this case, the government wants to reduce the total pollution in the area to 6 units. Currently, each firm emits 4 units of pollution, resulting in a total of 12 units. To achieve the desired reduction, the government can impose regulations that require each firm to reduce their emissions from 4 units to 2 units. Alternatively, the government can implement a tradable permits system. In this system, the government issues a limited number of permits that allow firms to emit a certain amount of pollution. Each permit represents the right to emit a specific quantity of pollution. In this scenario, the government can issue a total of 6 permits, each allowing a firm to emit 1 unit of pollution. The firms can then trade these permits among themselves.
The government can impose regulations on each firm, setting a specific limit for their pollution emissions. In this case, each firm is currently emitting 4 units of pollution, resulting in a total of 12 units. To achieve the desired reduction, the government can regulate that each firm must reduce their emissions from 4 units to 2 units. By enforcing this regulation, the total pollution in the area would be reduced to 6 units (2 units per firm multiplied by 3 firms). The government can also implement a tradable permits system. Under this system, the government would issue a limited number of permits, each allowing a firm to emit a specific quantity of pollution.
To konw more about pollution visit:
https://brainly.com/question/23857736
#SPJ11
Which of the following employees would likely receive a salary instead of wages? A. Manual laborer. B. Sales manager. C. Store clerk. D. Factory employee.
The sales manager would likely receive a salary instead of wages.
A sales manager, being a managerial position, is more likely to receive a salary rather than wages. Salary is a fixed amount of compensation paid to employees on a regular basis, typically on a monthly or annual basis, regardless of the number of hours worked. This is common for employees in professional, administrative, or managerial roles who are responsible for overseeing operations, managing teams, and making strategic decisions. On the other hand, manual laborers, store clerks, and factory employees are more commonly paid wages, which are based on an hourly rate or the number of hours worked.
Learn more about sales manager here:
https://brainly.com/question/32262806
#SPJ11
Black Ltd provides a range of cleaning services to commercial clients, including office cleaning. On 1 December 20X1, Black Ltd entered into a contract with White Ltd, to clean several of the office buildings managed by White Ltd for 6 months from 1 January 20X2 to 30 June 20X2 for a fee of $6,000. The contract required White Ltd to pay for the services in advance, and on 1 January 20X1, White Ltd paid $6,000 to Black Ltd.
Black Ltd provides cleaning services to various clients, including office cleaning. A contract was signed between Black Ltd and White Ltd on December 1, 20X1. The contract is for cleaning several of the office buildings managed by White Ltd for a period of six months from January 1, 20X2, to June 30, 20X2, for a fee of $6,000. The contract requires that White Ltd pays in advance for the services, and they paid the full amount on January 1,
20X1.The accounting treatment of the contract would be to record the payment received in the current liabilities section of the balance sheet, which is a liability because the service has not yet been rendered. The amount of $6,000 is to be recorded as an unearned revenue in the balance sheet.
The treatment of unearned revenue will be recognized as income as and when the services are performed by Black Ltd. In this case, the income recognition will be over six months, which is the duration of the contract, which means $1,000 will be recognized as income each month.The revenue of $1,000 would be recorded in the profit and loss account each month during the duration of the contract, and this would continue until the service is fully rendered. The financial statements for Black Ltd would show the increase in revenue by $1,000 every month, while the balance sheet would show the unearned revenue decreasing every month until the contract's completion.
To know more about provides visit:
https://brainly.com/question/30600837
#SPJ11
A colleague who is now your client has approached you with a question. They are looking into Treasury Bills. For $888.06 they can purchase a 1 Year Treasury Bill that will pay them $900 with no coupon payments. They want to know their return on investment expressed as a percentage. What would you tell them?
Treasury Bills (T-bills) are issued by the U.S. Treasury to fund the federal government’s short-term financing requirements. They are used to raise funds for the government at a low cost of borrowing.
Treasury bills are an excellent investment vehicle for those looking to invest in a risk-free instrument that is free of credit risk. The investor's return on investment (ROI) is the percentage gain or loss they receive on their investment over a given period.
The return on investment (ROI) formula is calculated as follows:
ROI = (Gain from Investment - Cost of Investment) / Cost of InvestmentGiven that a 1-year Treasury Bill costs $888.06 and pays $900 at maturity, we can calculate the ROI.ROI = (Gain from Investment - Cost of Investment) / Cost of InvestmentROI = ($900 - $888.06) / $888.06ROI = $11.94 / $888.06ROI = 0.0134 or 1.34%Therefore, the return on investment expressed as a percentage for the 1 Year Treasury Bill is 1.34%.
To know more about Bills visit:
https://brainly.com/question/20630395
#SPJ11
Consider an asset that costs $325,600 and is depreciated straight-line to zero over its 5-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $40,700. If the relevant tax rate is 22 percent, what is the aftertax cash flow from the sale of this asset? $57,378.86 $31,746.00 $60,398.80 $192,930.00 $63,418.74
Given the following data: An asset that costs[tex]$325,600[/tex] and is depreciated straight-line to zero over its 5-year tax life. Asset is to be used in a 3-year project. At the end of the project, the asset can be sold for [tex]$40,700[/tex].
The relevant tax rate is [tex]22%[/tex]. We are supposed to calculate the after-tax cash flow from the sale of this asset. Solution: Firstly, we will calculate the annual depreciation charge and the book value of the asset for each of the three years.
Depreciation per year = (Cost of asset - Salvage value) / Number of years
[tex]= ($325,600 - $40,700) / 5[/tex]
[tex]= $57,380 per year[/tex]
The book value of the asset for the three years would be:
Year 1: [tex]$325,600 - $57,380[/tex]
[tex]= $268,220Year[/tex]
2: [tex]$268,220 - $57,380[/tex]
[tex]= $210,840Year[/tex]
3: [tex]$210,840 - $57,380[/tex]
[tex]= $153,460[/tex]
So the after-tax cash flow from the sale of the asset will be:
Step 1: Calculate the tax benefit due to the sale of the asset. The asset will be sold for [tex]$40,700[/tex] and has a book value of [tex]$153,460[/tex].The resulting loss will be
[tex]$153,460 - $40,700[/tex]
[tex]= $112,760Tax benefit[/tex]
[tex]= 0.22 × $112,760[/tex][tex]$268,220 - $57,380[/tex]
[tex]= $24,807.20[/tex]
Step 2: Calculate the cash inflow due to the sale of the asset.
Sales price of the asset
[tex]= $40,700[/tex]
After-tax salvage value of the asset
[tex]= $40,700 + $24,807.20[/tex]
[tex]= $65,507.20[/tex]
Therefore, the after-tax cash flow from the sale of this asset is [tex]$65,507.20.[/tex]
Answer: [tex]$65,507.20[/tex]
To know more about Asset visit:
https://brainly.com/question/14826727
#SPJ11
research finds that which of the following is a major reason women increasingly work in the paid labor force?
One major reason for the increasing participation of women in the paid labor force is the changing social and economic dynamics in society.
One major reason for the increasing participation of women in the paid labor force is the changing social and economic dynamics in society. Several key factors have contributed to this trend:
Changing Gender Roles: Over the past few decades, traditional gender roles and expectations have evolved. There has been a shift towards more gender equality, with greater recognition of women's rights and opportunities. This has led to increased educational attainment among women and a desire for economic independence and career advancement.
Economic Necessity: Economic factors play a significant role in women's increased workforce participation. In many households, dual incomes have become necessary to maintain a certain standard of living due to rising living costs and the changing structure of families. Women's income has become crucial for financial stability and to support their families.
Educational Attainment: Women's educational attainment has risen significantly, and they are now more likely to pursue higher education and professional careers. Improved access to education, scholarships, and changing societal attitudes towards women's education have contributed to this trend. As women gain knowledge and skills, they are more likely to enter and thrive in the labor market.
Workforce Opportunities and Policies: The availability of diverse job opportunities and supportive policies promoting gender equality in the workplace have played a crucial role. Increased awareness about the importance of diversity and inclusion has led to organizations actively seeking and hiring women, creating more opportunities for their professional growth.
Technology and Flexible Work Arrangements: Advancements in technology have facilitated flexible work arrangements, such as remote work and flexible schedules. This flexibility has made it easier for women to balance work and family responsibilities, encouraging their participation in the labor force.
It is important to note that the reasons for women's increasing participation in the paid labor force may vary across different societies and cultures. Additionally, these factors are interconnected and can reinforce each other, leading to a broader societal transformation in gender roles and workforce dynamics.
To learn more about society
https://brainly.com/question/20713438
#SPJ11
A twenty year bond with a $1000 face value was issued with a yield to maturity of 4.3% and pays coupons semiannually. After ten years, the yield to maturity is still 4.3% and the clean price of the bond is $959.71. After three more months go by, what would you expect the dirty price to be? A. $997.71 B. $969.21 C. $978.71 D. Cannot be determined from information given
The expected dirty price of the bond after three more months would be $969.21. So, correct option is C,
To calculate the dirty price of the bond after three more months, we need to consider the accrued interest over that period.
Given that the bond has a 20-year maturity, pays coupons semiannually, and after ten years the yield to maturity is still 4.3%, it means there are 20 * 2 = 40 coupon payments in total.
To determine the accrued interest, we need to calculate the number of coupon payments that have accrued since the last payment. Since three more months have passed, it corresponds to 3/12 * 2 = 0.5 coupon payments.
The coupon payment can be calculated as $1000 * (4.3% / 2) = $19.
Therefore, the accrued interest is 0.5 * $19 = $9.5.
To find the dirty price, we add the accrued interest to the clean price:
Dirty Price = Clean Price + Accrued Interest
Dirty Price = $959.71 + $9.5 = $969.21.
Thus, correct option is B.
To learn more about bond click on,
https://brainly.com/question/20348880
#SPJ4
According to the Katznelson text, all of the following are methods of voter suppression except limits on early and absentee voting restrictions on voter registration campaigns holding elections on Sundays or national holidays felony disenfranchisement laws
According to the Katznelson text, all of the following are methods of voter suppression except limits on early and absentee voting restrictions on voter registration campaigns holding elections on Sundays or national holidays felony disenfranchisement laws.
Limits on early and absentee voting are one of the many methods of voter suppression. There are a number of ways in which early voting is being restricted, particularly in states with Republican-controlled statehouses. Texas Governor Greg Abbott has limited early voting to just one week in an attempt to discourage voters from casting their ballots.The other three methods, on the other hand, are frequently used to limit voter turnout by making it more difficult or impossible for certain people to vote. Restrictions on voter registration campaigns, for example, may limit the amount of time and resources available to register voters in certain areas or among certain demographics.Felony disenfranchisement laws, which prohibit individuals who have been convicted of certain crimes from voting, disproportionately affect Black and Latinx communities. Additionally, holding elections on Sundays or national holidays can make it difficult for religious minorities or individuals with inflexible work schedules to cast their ballots.
To know more about disenfranchisement laws.visit:
https://brainly.com/question/7133307
#SPJ11
under the _____, the securities and exchange commission (sec) may suspend trading if prices vary excessively over a short period of time.
Answer: Market Reform Act of 1990
Explanation:
The following table shows the case of a country for which the only difference between year 1 and 2 is that it has been able to develop and produce more efficient (i.e., less gas-consuming) cars. Lev 1
Nem m
=30(100)+200(41
R e0
=30(100)+cov(4)
The given expression can be interpreted as the regression equation for year 2, as given by the following mathematical model:y = b0 + b1x + uwhere y is the dependent variable, x is the independent variable, b0 is the constant term, b1 is the coefficient of x and u is the random error term.
By comparing the given expression with the mathematical model, it can be stated that:y = Lev1, Nemm=30(100)+200(41Re0=30(100)+cov(4)where Lev1 is the dependent variable and Nemm and Re0 are the independent variables. The given expression, therefore, represents a multiple linear regression equation that predicts Lev1 based on the values of Nemm and Re0. The coefficient of Nemm is 30, which indicates that a unit increase in Nemm would lead to an increase in Lev1 by 30 units, all other variables remaining constant. Similarly, the coefficient of Re0 is 200, which indicates that a unit increase in Re0 would lead to an increase in Lev1 by 200 units, all other variables remaining constant.
The constant term is 30(100) + cov(4), which represents the value of Lev1 when Nemm = 0 and Re0 = 0. Therefore, the given expression can be used to estimate Lev1 for any given values of Nemm and Re0, and to understand the effects of these variables on Lev1.
To know more about regression visit:
https://brainly.com/question/32505018
#SPJ11
Question 2 u A
=x A
02
y A
0.6
,u B
=x B
0.4
y B
0.6
,ω A
=(60,25),ω B
=(40,25). Consider the following pure exchange economy with different consumer preferences and endowments ( e.g., ω A
=(ω x
A
,ω y
A
)), and answer the following question: (a) Draw the Edgeworth box and the endowment point. (b) Find the contract curve y A
=f(x A
), and plot it on the graph. (c) Find the Pareto optimal allocation and price ratio for the corresponding competitive equilibrium. (d) Is the Pareto optimal allocation a fair allocation? Why?
The question pertains to a pure exchange economy with different consumer preferences and endowments. The task is to draw the Edgeworth box, find the contract curve, determine the Pareto optimal allocation, and analyze whether it is a fair allocation.
(a) The Edgeworth box is constructed by plotting the endowment points, ωA = (60, 25) and ωB = (40, 25), to form a box on a graph representing goods A and B.
(b) To find the contract curve yA = f(xA), we need to identify the points where the indifference curves of both consumers are tangent, indicating the feasible allocations that maximize one individual's utility without making the other worse off.
(c) The Pareto optimal allocation is determined by finding the point where the marginal rates of substitution (MRS) of both consumers are equal. By equating the MRS values, we can identify the optimal allocation. The price ratio can be derived from the marginal rate of substitution of the two goods in the competitive equilibrium.
(d) Whether the Pareto optimal allocation is considered fair depends on the definition of fairness being used. Pareto optimality ensures that no individual can be made better off without making another individual worse off. However, fairness is a subjective concept that extends beyond the scope of Pareto optimality.
It's important to note that a visual representation or additional context would aid in providing a more accurate and detailed response.
To know more about allocation, click here:
brainly.com/question/16666093
#SPJ11
Felton Publishing recently completed its IPO. The stock was offered at a price of $13.96 per share. On the first day of trading, the stock closed at $18.31 per share. If Felton Publishing paid an underwriting spread of 7.1% for its IPO and sold 5 million shares, what was the total cost (exclusive of underpricing) to the company of going public? The total cost of going public was 9 million. (Round to one decimal place.)
Previous question
Felton Publishing recently completed its IPO. The stock was offered at a price of $13.96 per share. On the first day of trading, the stock closed at $18.31 per share.
The IPO (Initial Public Offering) refers to a company's first issuance of shares to the public.
Underwriting is the term used to describe the process of raising capital for the company by selling its shares to the general public through an IPO or some other means.
In the question, Felton Publishing has offered 5 million shares in its IPO at a price of $13.96 per share.
The total amount raised through the IPO is:
Total amount raised = Number of shares offered x Price per share
= 5,000,000 x $13.96
= $69,800,000
Now, we need to determine the cost to the company of going public.
The cost of going public includes the underwriting spread paid to the underwriters.
The underwriting spread is expressed as a percentage of the total amount raised. It is equal to 7.1%.
Therefore, the underwriting spread paid by Felton Publishing is:
Underwriting spread
= 7.1% x $69,800,000
= $4,954,800
Hence, the total cost to Felton Publishing of going public (exclusive of underpricing) is:
Total cost of going public = Total amount raised - Underwriting spread
= $69,800,000 - $4,954,800
= $64,845,200
Therefore, the total cost (exclusive of underpricing) to the company of going public was $64,845,200 (rounded to one decimal place).
To know more about stock visit:
https://brainly.com/question/31940696
#SPJ11
In 2019, Mrs. Ulm paid $80,000 for a corporate bond with a $100,000 stated redemption value. Based on the bond's yield to maturity amortization of the $20,000 discount was $1,512 in 2019,$1,480 in 2020 , and $295 in 2021 . Mrs. Ulm sold the bond for $84,180 in March 2021. Assume the taxable year is 2021. Required: a. What are her tax consequences in each year assuming that she bought the newly issued bond from the corporation? b. What are her tax consequences in each year assuming that she bought the bond in the public market through her broker? × Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What are her tax consequences in each year assuming that she bought the bond in the public market through her broker?
Tax consequences of Mrs. Ulm in each year assuming that she bought the bond in the public market through her broker are as follows:
Part a of the question suggests the case where Mrs. Ulm purchases the newly issued bond from the corporation. Whereas, in part b, Mrs. Ulm bought the bond in the public market through her broker. There is no need to consider the amortization in this case as the bond was not bought at a discount. Instead, it was bought at a premium.The following steps can be followed to solve this question:
Step 1: Find the adjusted basis of the bond
Mrs. Ulm paid $80,000 to buy the bond. Since the bond was purchased at a premium, the adjusted basis of the bond is calculated by adding the premium paid to the purchase price:
Adjusted basis of bond = Purchase price + Premium paid
= $80,000 + $20,000= $100,000
Therefore, the adjusted basis of the bond is $100,000.
Step 2: Calculate capital gain or loss when bond sold
Capital gain or loss when the bond is sold can be calculated as follows:
Capital gain or loss = Amount realized - Adjusted basis of bond
Mrs. Ulm sold the bond for $84,180.
Amount realized = Sale price received by Mrs. Ulm= $84,180
Therefore, the capital loss or gain can be calculated as:
Capital gain or loss = Amount realized - Adjusted basis of bond
= $84,180 - $100,000= -$15,820
Mrs. Ulm had a capital loss of $15,820 when she sold the bond.S
tep 3: Calculate taxable gain or loss
Taxable gain or loss is calculated by taking into account the holding period of the bond. If the bond is held for less than one year, the gain is treated as a short-term gain. If it is held for more than one year, it is treated as a long-term gain.In this case, Mrs. Ulm sold the bond in March 2021, so it was held for less than a year. Therefore, the capital loss is treated as a short-term loss. Short-term losses can be used to offset any short-term gains, or it can be used to offset long-term gains up to $3,000 per year. Any unused losses can be carried over to the next year.
In this case, Mrs. Ulm did not have any short-term gains to offset. So, she can use her entire short-term loss to offset any long-term gain. She had a taxable capital loss of $15,820 in 2021. She can use $3,000 of this loss to offset her income in 2021, and she can carry over the remaining loss of $12,820 to the next year.
To know more about Tax consequences visit:
https://brainly.com/question/31477274
#SPJ11
. In February 2020, the U.S. economy fell into a recession due to the COVID-19 pandemic. a. (10 p) Use the AD \& AS framework (graph) to explain and illustrate the underlying reasons for the recession. b. (20 p) What fiscal policy measures were taken to help the economy recover? Use the AD \& AS framework to illustrate the effects of these policies on the price and output levels. c. (20 p) What monetary policies were employed? Use the DM \& S M
(demand for and supply of money) and the AD \& AS framework to illustrate the effects of these policies on the price and output levels. Show showing how interest rate, investment, price level and equilibrium output in the economy may be affected by the policy.
The AD and AS framework can explain the U.S. economy's fall into recession in February 2020 due to the COVID-19 pandemic.
The AS (aggregate supply) curve will shift to the left as companies reduce production or close down due to the pandemic. Also, there is a reduction in the demand for products and services. This results in reduced GDP, which is a determinant of the AS curve.
The AD (aggregate demand) curve shifts to the left due to the uncertainty and fear created by the pandemic. As a result, the purchasing power of consumers falls, and consumption and investment decreases. The decrease in consumption also reduces the multiplier effect. As a result, the AD curve will shift leftward.
To know more about uncertainty visit:
https://brainly.com/question/15103386
#SPJ11
which of the following statements best characterizes the author's' view of deception as an influence strategy?
The author's view of deception as an influence strategy can be characterized as nuanced, considering both its potential effectiveness and its ethical implications.The author believes that deception can be an effective strategy for influencing others.
Deception involves deliberately misleading or manipulating others by presenting false information or distorting the truth. The author acknowledges that deception can sometimes achieve desired outcomes or gain advantages in certain situations. However, the author also recognizes the ethical concerns and potential negative consequences of deception as an influence strategy. Deception can erode trust, damage relationships, and have long-term repercussions.
The author suggests that the effectiveness of deception as an influence strategy depends on various factors, such as the context, the intentions behind the deception, and the awareness of the target audience.It is important to note that the author's view on deception as an influence strategy may vary depending on the specific context, the audience, and the purpose of the influence.The author's perspective may evolve or change when considering different scenarios or examining the potential consequences of deception.
To know more about deception visit:
https://brainly.com/question/32168968
#SPJ11
Cavern Company's output for the current period results in a $6,100 unfavorable direct material price variance. The actual price per pound is $60.00 and the standard price per pound is $55.00. How many pounds of material are used in the current period? Multiple Choice 6,100 7,320. 1,220. 1,118. 7,218.
The amount of material used in the current period of Cavern Company is 1,220 pounds. option 3: 1,220 is the correct answer.
The amount of material used in the current period of Cavern Company that results in an unfavorable direct material price variance can be calculated using the given information.
The formula to calculate the direct material price variance is DM price variance = (Actual Quantity x Actual Price) - (Actual Quantity x Standard Price)Where Actual Quantity = The actual amount of material used during the period.
Actual Price = The actual price per unit of material used during the period. Standard Price = The standard price per unit of material used during the period.
Given, Actual price per pound = $60 Standard price per pound = $55DM price variance = $6,100Substituting the values in the formula, we get: DM price variance = (Actual Quantity x Actual Price) - (Actual Quantity x Standard Price)$6,100 = Actual Quantity x ($60 - $55)$6,100 = Actual Quantity x $5Actual Quantity = $6,100/$5 Actual Quantity = 1,220 pounds
For more such questions on Cavern Company
https://brainly.com/question/14159720
#SPJ8
Problem 5 - COST VOLUME ANALYSIS Tamati has been pleased with the success at Fush in recent years, and is thinking about expanding to a 2 nd location across the city. Fush II will have a slightly different approach, while maintaining the current culture and mission of the organisation. Tamiti is tentatively planning for the following 4 categories of revenue: - Beer and wine. He estimates that 15,000 drinks will be served, with an average selling price of $9.00. Average cost per drink will be $7.00. - Fish Dinners. The average fish dinner will sell for $19.50, with a cost of $15.00 Tamati estimates selling 20,000 meals. - Dessert. The specialty cakes and tarts will sell for $8.00, at a cost of $6.50. Tamati estimates selling 9,500 . - Lunch specials. Opening for lunch, with a special lunch menu will be a new offering at Fush II. Tamati expects to draw a steady group of customer, selling 10,000 lunches in the next year. Lunch prices will average $10.00, with a cost of $8.00. - The new location being consider for Fush II will have expenses of $5,300 per month in rent (including utilities). Tamati estimates monthly labour costs of $7,600. Although labour is often considered a variable cost, the estimate can be considered a fixed cost in this situation due to its predictability. a. What is the breakeven point in dollars? (Marks: 5) b. Would you advise Tamati to go ahead with his plans to open this restaurant? Justify your response. If yes, why? If no, why not, and what would need to change to make this a good idea? Use further analysis to support your recommendations. (Marks: 5)
The formula for the calculation of the breakeven point in dollars is;
[tex]BE point in $= (FC/CM Ratio) = $208,250[/tex]
Explanation: Calculation of BEP requires some data from the given problem that includes; Total Sales Mix, Total Variable Costs and Total Fixed Costs. These figures are:
[tex]Total Sales Mix = (15,000 * 9.00) + (20,000 * 19.50) + (9,500 * 8.00) + (10,000 * 10.00) = 166,000[/tex]
[tex]Variable Cost Mix = (15,000 * 7.00) + (20,000 * 15.00) + (9,500 * 6.50) + (10,000 * 8.00) = 342,500[/tex]
[tex]Fixed Costs = 5,300 + 7,600 = 12,900CM[/tex]
[tex]Ratio = (166,000 - 342,500)/166,000 = -0.0663BEP in Units = 12,900/-0.0663 = 194,723 units[/tex]
[tex]BEP in $ = BEP in Units *[/tex]
[tex]Sales Price per unit= 194,723*0.85 = $208,250b[/tex].
Justification: Since the break-even point is the point at which a business has sold enough products to cover all of its fixed and variable costs and has not made any profit or loss, we may evaluate the business' potential performance by comparing it to this point. In this situation, the Break-even point (BEP) is high, making the company vulnerable to financial risks and thus making it a bad investment for Tamati to go ahead with his plans. As a result, the venture is risky and it is not advised for Tamati to go ahead with his plans.
To know more about dollars visit:
https://brainly.com/question/22068772
#SPJ11
(PROJECT RISK MANAGEMENT)
Contingency planning should be part of the risk management plan. Fires, floods and pandemics are the types of events that we often associate with contingency planning. Based on a project scenario :-
(a) Discuss why it is important to make contingency planning for this project.
Contingency planning is essential for every project because it helps to prevent the loss of time, money, and resources in the event of unforeseen circumstances.
Unforeseen circumstances are circumstances that are not anticipated at the start of a project and are therefore not included in the project plan. Unforeseen circumstances can include a variety of events that can disrupt the project and make it difficult to achieve the objectives set out in the project plan. For example, fires, floods, and pandemics are some of the unforeseen circumstances that can occur during a project.
Contingency planning is an essential part of the project risk management plan. It is important because it helps to prevent the loss of time, money, and resources in the event of unforeseen circumstances. In the case of this project scenario, it is important to make contingency planning for the project to ensure that the project is completed successfully and on time. The following are some of the reasons why contingency planning is important for this project:- To prevent project delays: Contingency planning can help to prevent project delays by identifying potential risks and developing strategies to mitigate those risks.- To reduce the impact of risks: Contingency planning can help to reduce the impact of risks by developing strategies to minimize the impact of those risks on the project.- To ensure project success: Contingency planning can help to ensure project success by developing strategies to deal with unforeseen circumstances and to ensure that the project objectives are achieved within the specified time frame.
Learn more about Contingency planning: https://brainly.com/question/939242
#SPJ11
1. When do customers purchase the fi’s products? How does purchase behavior vary based on different promotional events (communication and price changes) or customer services (hours of operation, online/mobile applications, delivery speed/cost)? How does purchase behavior vary based on uncontrollable influences such as seasonal demand patterns, time-based demand patterns, physical/social surroundings, or competitive activities?
2. Why (and how) do customers select the fi’s products? Describe the advantages of the fi’s products relative to competing products. How well do the fi’s products fulfill customers’ needs relative to competing products? What products have emerged as new competition? Describe how issues such as brand loyalty, value, commoditization, and relational exchange processes affect customers’ purchase behaviors. Describe how credit or financing is used in purchasing the fi’s products. Also, do customers seek long-te relationships with the fi, or do they buy in a transactional fashion (based primarily on price)? Is the product sold via a subscription model, or should it be?
Customers purchase the fi' s products when there is a promotional event or customer service that caters to their needs. Customers often vary their purchase behavior based on different promotional events such as communication.
Price changes or customer service such as hours of operation, online/mobile applications, delivery speed/cost. These services and events play a significant role in influencing customer's purchase behavior. Purchase behavior can also vary based on uncontrollable influences such as seasonal demand patterns, time-based demand patterns, physical/social surroundings, or competitive activities.
For instance, if there is an increase in demand for a particular product in the winter season, then customers tend to purchase that product more than 100. Competitive activities can also have a significant influence on the customer's purchase behavior. Customers select fi' s products because of the advantages that they have over competing products. The fi' s products meet customers' needs relative to competing products.
To know more about Customers visit:
https://brainly.com/question/33030308
#SPJ11
what is the main question that both individuals and companies must consider when making financial decisions to reach a goal?
The main question that both individuals and companies must consider when making financial decisions to reach a goal is Option A. Will the benefits of the action outweigh the costs?
In simpler terms, it is an assessment of whether the return on investment is higher than the cost of the investment. There are various financial decisions that individuals and companies have to make, such as investment decisions, financing decisions, and dividend decisions. When making investment decisions, individuals and companies must decide whether to invest in a project or not. In making such decisions, they need to evaluate the expected cash inflows and outflows.
This will help determine whether the investment will generate positive cash flows and whether these cash flows will exceed the cost of the investment. When making financing decisions, individuals and companies need to decide whether to use debt or equity to finance the investment. In making such decisions, they need to evaluate the cost of each source of finance and the impact it will have on the profitability of the investment. When making dividend decisions, companies need to decide on the amount of profits to be paid out to shareholders as dividends.
In making such decisions, they need to evaluate the impact of the dividend payment on the financial position of the company. The above examples demonstrate the importance of considering the benefits of an action against its costs. The decision to invest, finance, or pay dividends will ultimately depend on whether the benefits outweigh the costs or not. Therefore, the correct option is A.
The question was incomplete, Find the full content below:
what is the main question that both individuals and companies must consider when making financial decisions to reach a goal? A. Will the benefits of the action outweigh the costs?
A. Will the benefits of the action outweigh the costs?
B. Will this decision require debt or equity financing?
C. Will utility be maximized through this decision?
Know more about Financial decisions here:
https://brainly.com/question/30478000
#SPJ8
Differential Analysis for a Lease-or-sell Decision Stowe Construction Company is considering selling excess machinery with a book value of $281,200 (original cost of $400,700 less accumulated depreciation of $119,500) for $276,800 , less a 5% brokerage commission. Altematively, the machinery can be leased for a total of $286,600 for 5 years, after which it is expected to have no residual value. Dunng the period of the lease, Stowe Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $12,000 , a. Prepare a differential analvsis dated March 21 to determine whether'Stowe Construction Company sthould lease (Aiternative 1) or sell (Alternative 2) the machinery. If required, use a minus sign to indicate a loss. b. On the basis of the data presented, would it be advisable to lease or sell the machinery?
Based on the data presented, it would be advisable for Stowe Construction Company to lease the machinery rather than sell it. The lease option provides a higher net cash flow over the 5-year period, which makes it more financially favorable.
To determine whether Stowe Construction Company should lease or sell the excess machinery, we need to compare the differential costs and revenues associated with each alternative.
Here is a step-by-step analysis to determine the most advisable option:
1. Calculate the proceeds from selling the machinery:
- The selling price is $276,800.
- Subtract the 5% brokerage commission: $276,800 - (5% * $276,800) = $262,960.
2. Calculate the lease payments over 5 years:
- The total lease payment is $286,600.
3. Calculate the cost of repairs, insurance, and property tax expenses over 5 years:
- The expenses are $12,000 per year.
- Multiply by 5 years: $12,000 * 5 = $60,000.
4. Calculate the net cash flow for each alternative:
- For the sale option: Net cash flow = Proceeds from selling - Cost of repairs, insurance, and property tax expenses
- For the lease option: Net cash flow = Lease payments - Cost of repairs, insurance, and property tax expenses
Net cash flow for the sale option: $262,960 - $60,000 = $202,960
Net cash flow for the lease option: $286,600 - $60,000 = $226,600
5. Compare the net cash flows:
- The lease option has a higher net cash flow of $226,600 compared to $202,960 for the sale option.
Based on the data presented, it would be advisable for Stowe Construction Company to lease the machinery rather than sell it. The lease option provides a higher net cash flow over the 5-year period, which makes it more financially favorable. However, it's important to consider other factors such as future equipment needs and the potential for technological advancements before making a final decision.
Know more about selling the machinery here:
https://brainly.com/question/32179957
#SPJ11
1. Which one of the following market is a dealer market? A. Currency market B. Real estate market C. Shanghai Stock Exchange D. Structured Option 2. What is the advantage of the dealer market compared
1. Currency market is a dealer market among the given options A dealer market is a financial market mechanism where dealers buy and sell securities among themselves in order to maintain inventory levels and fulfill the needs of their clients.
In contrast to an auction market, where buyers and sellers compete with each other to obtain the best price, a dealer market involves dealers who buy and sell securities for their own accounts, hoping to profit from the bid-ask spread (the difference between the buying and selling price) as well as by providing liquidity to the market.The currency market is a type of dealer market where currencies are traded in the form of spot transactions, futures contracts, options, swaps, and other derivative instruments.
The currency market, also known as the foreign exchange market, is a decentralized global market where banks, financial institutions, and traders buy and sell currencies according to the prevailing exchange rates. The currency market is open 24 hours a day, five days a week, and is the largest financial market in the world in terms of daily trading volume, which is estimated to be more than 6.6 trillion in April 2019.2. The advantage of a dealer market compared to an auction market The dealer market has several advantages over the auction market.
To know more about global market visit :
https://brainly.com/question/26958871
#SPJ11
