New job has 2 pay options. 1. $14,000, commission of 10%. 2. base salary $19,000, commission 4%. how much would you have to sell for option 1 to produce a largee income?

Given: Discount rate = 16%Costs and Revenues are given in the following table

Calculation of Present Value for Year 1:Cash Outflows

$900,000 * 0.25 = $225,000Cash Inflows

$1,500,000 * 0.25 = $375,000Net Cash Outflow

$225,000 - $375,000

$150,000PVIFA (16%, 1 year)

0.86243Present Value of Net Cash Outflow (Year 1)

$150,000 * 0.86243 = $129,364Calculation of Present Value for Year 2:Cash Outflows = $450,000 * 0.25  $112,500Cash Inflows = $900,000 * 0.25 = $225,000

Net Cash Outflow = $112,500 - $225,000 = -$112,500PVIFA (16%, 2 years) = 0.74339

Present Value of Net Cash Outflow (Year 2) = $112,500 * 0.74339 = $83,342

Calculation of Present Value for Year 3:Cash Outflows = $350,000 * 0.25 = $87,500Cash Inflows = $700,000 * 0.25 = $175,000

Net Cash Outflow = $87,500 - $175,000 = -$87,500PVIFA (16%, 3 years) = 0.64114

Present Value of Net Cash Outflow (Year 3) = $87,500 * 0.64114 = $56,054

Calculation of Present Value for Year 4:Cash Outflows = $250,000 * 0.25 = $62,500

Cash Inflows = $600,000 * 0.25 = $150,000

Net Cash Outflow = $62,500 - $150,000 = -$87,500PVIFA (16%, 4 years) = 0.55241

Present Value of Net Cash Outflow (Year 4) = $87,500 * 0.55241 = $48,272Therefore,

the net present value of this investment opportunity is $129,364 + $83,342 + $56,054 + $48,272 = $317,032 which can be rounded to the nearest whole dollar amount as $317,032. Thus, the answer is $317,032.

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In a perfectly competitive market, a firm will shut down in the short run if the price falls below the minimum average variable cost (AVC). The minimum AVC represents the point at which the firm is unable to cover its variable costs and would incur greater losses by continuing to operate.

In the short run, a firm has both fixed costs and variable costs. Fixed costs are expenses that do not change with the level of production, such as rent or equipment costs. Variable costs, on the other hand, vary with the level of production, such as labor or raw material costs.
If the price of the product falls below the minimum AVC, it means that the firm cannot cover its variable costs, let alone its fixed costs. In such a situation, the firm would minimize its losses by shutting down and not producing any output. By shutting down, the firm avoids incurring further variable costs and limiting its losses to the amount of its fixed costs.
Therefore, in a perfectly competitive market, a firm will shut down in the short run if the price falls below the minimum AVC.

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The option (b) is correct. Juan Manuel Marquez, who is Manny Pacquiao's guardian, persuades/convinces him to buy some property from Danny Garcia at a very highly inflated price. Juan Manuel Marquez may be liable for fraud.

What is fraud?

Fraud is defined as the use of deliberate deceit for personal advantage. It's when one individual deceives or tricks another to achieve some personal advantage that they wouldn't have been able to get without the other's help.

Fraud involves the following essential components: false statements, made with an intention to deceive, and inducing reliance on the false statement by the person who hears it. The plaintiff must prove that the defendant intentionally or recklessly made a false statement that led to the plaintiff's injury in a fraud case.In this case, Juan Manuel Marquez, who is Manny Pacquiao's guardian, persuades or convinces him to buy some property from Danny Garcia at a very highly inflated price. Juan Manuel Marquez may be held accountable for fraud because he intentionally deceived Manny Pacquiao by convincing him to buy property at an extremely high price, causing Manny Pacquiao to suffer financial damage. Therefore, option (b) is correct.

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We require further details regarding the associated costs in order to calculate the net operating income under absorption costing. Both variable and fixed production costs are considered in absorption costing.

It distributes production units with fixed manufacturing overhead expenses. It is impossible to determine the net operating income under absorption costing without particular information on the variable and constant production expenses. The supplied selections (19,300, 6,000, 10, 700, and 16, 700) don't present enough background information to help you figure out the right response. To accurately calculate the net operating income under absorption costing, additional information about the expenses involved, such as variable and fixed manufacturing costs, is requested.

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True. One of the areas where operations research methods can contribute to improving healthcare is in the modelling of patient volumes and flow through organizations and health systems.

Operations research (OR) is an interdisciplinary branch of mathematics that uses analytical and mathematical models, statistical analysis, and optimization to make better decisions about complex problems.

In healthcare, operations research can be applied to the improvement of the efficiency and effectiveness of healthcare systems and processes.

One of the ways that operations research methods can contribute to improving healthcare is through the modelling of patient volumes and flow through organizations and health systems.

By developing models that simulate patient flow, healthcare organizations can optimize their resource allocation, identify areas where improvements can be made, and increase efficiency and patient satisfaction.

Overall, operations research is an important tool for improving healthcare systems and delivering high-quality care to patients.

Hence, the statement is true.

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Markus Limited’s Statement of Financial Position and Statement of Income is given for the year ended December 31, 2021. In this statement, the Assets and Liabilities of Markus Limited are compared with those of the previous year.


In the given Statement of Financial Position, the assets and liabilities of Markus Limited are presented for the years 2020 and 2021. In 2021, the company's non-current assets were C500,000, which is C25,000 more than in 2020.

The firm's inventory has increased by C70,000 to reach C205,000 in 2021.

Furthermore, cash and cash equivalents also increased to C115,000 in 2021, compared to C100,000 in 2020.

When we look at the liability section, Markus Limited’s accounts payable increased by C50,000 to C270,000 in 2021. The company also took out a loan of C80,000 in 2021, compared to none in 2020.

In terms of Equity, Markus Limited’s retained earnings increased by C35,000 in 2021, while common shares remained unchanged.

Overall, Markus Limited has seen a growth in assets and liabilities in 2021 compared to 2020. This growth can be seen in the increase of non-current assets, inventory and cash, which all increased during the year.

While there was an increase in accounts payable and loan, there was no change in the number of common shares, and retained earnings increased by C35,000. This indicates that the company has been profitable and has retained a portion of the profit in the business.

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The account that is not normally part of the revenue and collection cycle is Purchases Returns and Allowances. There are several accounts associated with revenue and collection cycle.

The revenue and collection cycle is the series of activities that starts with a sale and ends with the collection of cash.There are three primary types of transactions associated with the revenue and collection cycle. These include:1. Sales2. Accounts Receivable3. Cash Sales: This is the revenue generated from the sale of goods or services to customers.

This account records the sale of goods or services to customers.Accounts Receivable: This account records the amount of money owed by customers to the company for goods or services that have been sold.Cash: This account records the amount of cash received from customers for goods or services that have been sold. Purchases Returns and Allowances are a component of the purchases and disbursements cycle.

Purchases Returns and Allowances is an account that tracks the goods returned to the supplier and the allowances for damaged goods. Therefore, option d) Purchases Returns and Allowances is not normally part of the revenue and collection cycle.

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The IRS's general authority to issue binding rules and regulations comes from the Internal Revenue Code (IRC).

The Internal Revenue Code (IRC) serves as the primary source of authority for the IRS to issue binding rules and regulations. The IRC is the body of federal tax laws enacted by the U.S. Congress, outlining the rights and obligations of taxpayers and providing the legal framework for administering the tax system. It grants the IRS the power to promulgate regulations and interpret the provisions of the tax code. These regulations provide detailed guidance and clarify the application of the law in various tax matters. They carry the force of law and must be followed by taxpayers and the IRS alike. The IRS's rulemaking authority ensures consistent and uniform application of tax laws, provides clarity to taxpayers, and enables effective tax administration.

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Product differentiation refers to the attempt of firms to make real or apparent differences in essentially substitutable products look different in the minds of the consumers.

Product differentiation is a strategy used by firms to make their products stand out from competitors in the market. It involves creating unique features, characteristics, or brand image for a product that makes it distinct and appealing to consumers.The purpose of product differentiation is to make consumers perceive the product as different or better than similar products offered by competitors.

This differentiation can be achieved through various means such as product design, packaging, branding, advertising, and customer service.By differentiating their products, firms aim to create a competitive advantage and attract customers who value the unique attributes or benefits offered. This strategy allows firms to charge higher prices, gain customer loyalty, and increase market share.

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As a human resource manager for ABC's Canada branch, my duties will include recruitment and selection of potential employees, conducting interviews, and ensuring that the company's policies and procedures are followed. My job also includes managing employee relations and providing training and development programs for them.

To ensure that I excel in this role, my main points of concern and focus will be to:

Understand the company's objectives and requirements to ensure that my hiring decisions align with these objectives.

Develop and maintain a comprehensive employee database to help in making informed decisions.

Stay current on the latest industry trends and regulatory requirements to keep up with changing employment laws and regulations.

Foster a positive working environment to retain employees, encourage employee productivity, and improve company culture.

Ensure that the recruitment process is fair, transparent, and free of bias.

Develop a comprehensive training program to enhance the skills and knowledge of employees.

Establish a process for performance evaluations to help in identifying areas for improvement and promotions.

A successful human resource manager should also have excellent communication, organization, and problem-solving skills. I will be committed to enhancing and ensuring the well-being of all employees within the company, creating an environment that fosters innovation, productivity, and continuous growth. In conclusion, my main duties as a human resource manager will be recruitment, employee management, training, and development. My main points of focus and concern will be fostering a positive working environment, maintaining a comprehensive database, staying current on industry trends and regulations, ensuring a fair recruitment process, and developing a comprehensive training program for employees.

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1. The initial journal entry to record the purchase of equipment will be:

Equipment                     $300,000
Cash                                 $300,000

2. Straight-line depreciation will be calculated as follows:

Annual Depreciation Expense = (Equipment Cost – Salvage Value) / Useful Life

$300,000 - $10,000 = $290,000
$290,000 ÷ 60 months = $4,833.33 per month

Depreciation Expense          $4,833.33
Accumulated Depreciation       $4,833.33

3. The initial journal entry to record the purchase of the compressor with a loan will be:

Compressor                   $100,000
Loan Payable                $100,000

4. Units of production depreciation will be calculated as follows:

Depreciation per unit = (Equipment Cost – Salvage Value) / Total Units of Production
Depreciation Expense = Depreciation per unit x Units used

$100,000 - $5,000 = $95,000
$95,000 ÷ 2,000 hours = $47.50 per hour
$47.50 x 300 hours = $14,250

Depreciation Expense          $14,250
Accumulated Depreciation       $14,250

5. The initial journal entry to record the purchase of the press with cash will be:

Press                            $25,000
Cash                            $25,000

Double-declining balance depreciation will be calculated as follows:

Depreciation Rate = 2 ÷ Useful Life
Double-Declining Balance Depreciation Rate = Depreciation Rate x 2

Depreciation Expense for the First Year = (Equipment Cost – Accumulated Depreciation) x Double-Declining Balance Depreciation Rate

$25,000 x 40% = $10,000

Depreciation Expense          $10,000
Accumulated Depreciation       $10,000

6. Revenue for the month of $120,000 is recorded as follows:

Cash                            $120,000
Revenue                       $120,000

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Economic growth can bring about significant benefits to society, including job creation, higher wages, increased tax revenues, and improved living standards. However, these benefits are not always distributed equally, and some individuals or groups may not experience the same positive outcomes as others. To ensure that the benefits of economic growth are more equally distributed, several strategies can be implemented.

1. Progressive taxation: One way to distribute the benefits of economic growth more equally is to implement a progressive tax system. This means that individuals with higher incomes pay a higher percentage of their income in taxes. The revenue generated from these taxes can then be used to fund social programs such as education, healthcare, and social security, which can help to alleviate poverty and reduce income inequality.

2. Increase minimum wage: Another strategy is to increase the minimum wage. This can help to ensure that low-wage workers are able to benefit from economic growth by receiving a fair wage for their labor.

3. Improve access to education and training: Investing in education and training can help to ensure that workers have the skills and knowledge they need to take advantage of new job opportunities created by economic growth. This can help to reduce inequality by increasing the earning potential of workers who may have previously been stuck in low-wage jobs.

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The slope of the social supply curve is found to be 3.9.

The private supply curve for kilos of tomatoes is

P=21.4 + 5.8Q.

We have to add the externalities (smelly cow manure), which increases the value by $9.9.

However, the manure required by each additional kilo of tomatoes also causes discomfort for the neighbors, imposing a cost of $9.9 on them.

The social supply curve considers the externalities.

We can get the social supply curve by adding the marginal cost to the private supply curve.

Marginal cost (MC) = change in total cost / change in output.

Change in total cost = $9.9 (external cost) – $9.9 (external benefit)

= 0

Therefore,

MC = 0 + 5.8Q

= 5.8Q

The social supply curve is:

P = 21.4 + MC

= 21.4 + 5.8Q

The slope of the social supply curve is the coefficient of Q, which is 5.8.

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The 1960s was a decade of social and cultural revolution in America, marked by major struggles for racial, gender, and economic justice.

Though significant progress had been made in these areas during the era, the United States was still facing a number of ongoing international challenges that would continue to influence and challenge the country in the 1970s.
The Civil Rights movement had made significant gains in the 1960s, but racial inequality and discrimination persisted in many parts of the country. The 1970s saw continued struggles for equality and justice for people of color, including protests against police brutality, affirmative action policies, and the desegregation of schools and housing. These ongoing efforts to address racial inequality contributed to broader social and cultural changes in America, including the rise of a new generation of activists and a growing awareness of intersectional issues related to race, gender, and class.In addition to the ongoing struggles for racial justice, the United States faced a number of economic challenges in the 1970s. The decade was marked by a number of economic downturns and recessions, which led to high rates of unemployment and inflation. These economic struggles were exacerbated by the oil crisis of 1973, which led to a significant increase in energy costs and further strained the economy. These economic challenges contributed to growing social and political unrest in America, as many Americans struggled to make ends meet and saw their standard of living decline during the decade.
The United States also faced a number of ongoing international challenges in the 1970s. The Vietnam War had officially ended in 1973, but the country was still dealing with the aftermath of the conflict. The war had left a deep scar on American society, and the country struggled to come to terms with the human and financial costs of the conflict. In addition to the ongoing challenges related to Vietnam, the United States also faced new international challenges in the 1970s, including the rise of terrorism and the continued Cold War tensions with the Soviet Union. These challenges would continue to shape American foreign policy and national security in the decades to come.

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Based on the context of the information, it can be concluded that Kriselle is either a Part-Time or Full-time security guard employed by the apartment complex.

Full time job is a term that is used to describe

an employee employed on average at least 30 hours of service per week, or 130 hours of service per month.

On the hand, Part time job is a term that used to describe a form of employment that carries fewer hours per week than a full-time job usually with fewer than 30 hours per week.

In this case, since Kriselle is classified as an hourly employee, responsible for maintaining the safety and security of the apartment complex and its residents but is not provided with a company vehicle for commute, but flexible to sign up for different shifts, with the ability to choose preferred trolling routes suggests some level of autonomy.

Also, receiving benefits implies that Kriselle is likely a full-time employee and meets the eligibility criteria for benefits such as health insurance, retirement plans, and possibly paid time off.

Hence, in this case, it is concluded that considering all these factors, it can be concluded that Kriselle is most likely a part-time or full-time security guard with an hourly basis, benefits, flexibility in shifts, and some autonomy in performing her job duties.

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To recover from the COVID-19 pandemic effects, businesses can consider diversifying their supply chain, enhancing visibility, developing robust risk management plans, strengthening supplier relationships, embracing digital transformation, and more.

In order to recover from the effects of the COVID-19 pandemic, here are some additional strategies that could be considered for implementation in operations and supply chain management:

Diversify the supply chain: Relying on a single source or region for supplies proved to be risky during the pandemic. Companies can consider diversifying their supplier base to mitigate future disruptions. This can involve identifying alternative suppliers, exploring local sourcing options, or implementing dual sourcing strategies.

Enhance supply chain visibility: Implementing advanced technology solutions like real-time tracking, IoT sensors, and data analytics can provide better visibility into the supply chain. This helps identify potential bottlenecks or disruptions early on, enabling proactive decision-making and swift response.

Develop robust risk management plans: Establishing comprehensive risk management plans that specifically address pandemic-related risks can help in responding effectively to future crises. This includes conducting risk assessments, implementing contingency plans, and regularly reviewing and updating the plans.

Strengthen supplier relationships: Building strong relationships with key suppliers can foster collaboration and mutual support during challenging times. This can involve sharing information, collaborating on risk mitigation strategies, and establishing long-term partnerships based on trust and cooperation.

Embrace digital transformation: Accelerating digital transformation initiatives can enhance agility and resilience in operations and supply chain management. This can include automation of processes, adoption of cloud-based technologies, and leveraging data analytics for forecasting and demand planning.

Implement flexible manufacturing strategies: Adopting agile manufacturing practices, such as lean manufacturing or just-in-time production, allows for quick adjustments to changing market demands. This enables companies to respond rapidly to disruptions and optimize resource utilization.

Focus on employee well-being: Prioritizing the health and safety of employees is crucial for business continuity. Implementing measures such as remote work options, flexible scheduling, and providing necessary resources and support can help maintain workforce productivity and morale during crises.

Explore alternative distribution channels: With the disruption of traditional distribution channels, companies can explore alternative channels such as e-commerce, direct-to-consumer models, or partnerships with third-party logistics providers. This diversification can ensure continuity of product delivery and reach a wider customer base.

Implementing these strategies can enhance the resilience and agility of operations and supply chain management, enabling organizations to recover from the effects of the COVID-19 pandemic and be better prepared for future disruptions.

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As seen in the passage, Jamilah was asked by her manager to plan and conduct a two-days training course on the pedagogy of teaching online students.

She had observed another senior trainer delivering a similar training course, read through the training materials several times, looked through materials from previous courses conducted by the other trainers and tried to think of some creative activities she could include in the course. However, during her first session, Jamilah noticed that the participants were not paying attention to her presentation. There were no questions being asked and the participants looked bored and distracted.

After the presentation, the participants left the room for a break. Jamilah had a feeling that her first presentation was a failure.There are a few areas that Jamilah can improve to make the rest of the training a success. First, it is important to remember that preparation is key to the success of any training course. Jamilah had prepared by observing senior trainers and reading through training materials. However, there are other ways to prepare as well. For instance, she could have conducted a pilot session with a smaller group of participants to identify potential problems and to make adjustments.

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Management Liability insurance includes Directors' and Officers', Employment Practices Liability, Fiduciary, and Crime coverages, providing protection for directors/officers, employment-related claims, breaches of fiduciary duty, and losses from criminal activities.

Management Liability is a unique segment of insurance that encompasses different lines of coverage. These lines of insurance include Directors' and Officers' (D&O), Employment Practices Liability (EPL), Fiduciary, and Crime. Let's delve into each of them in detail.

Directors' and Officers' (D&O) insurance is designed to protect directors and officers of a company. It covers losses incurred when these individuals are held liable for their actions or decisions on behalf of the company. D&O insurance safeguards against losses arising from errors in judgment, negligence, or breach of duty. It provides coverage for claims brought against directors and officers by shareholders, regulators, and other parties. Such claims can stem from misrepresentation, breach of contract, or lack of corporate governance.

Employment Practices Liability (EPL) insurance shields companies from lawsuits related to employment matters. It offers coverage against claims such as discrimination, sexual harassment, wrongful termination, and other employment-related disputes. EPL insurance protects both the company and its employees. It addresses claims brought by employees, former employees, or job applicants against the company.

Fiduciary insurance is intended to safeguard companies against claims arising from breaches of fiduciary duty. This coverage applies when the company or its employees fail to fulfill their fiduciary responsibilities towards clients, investors, or other stakeholders. Fiduciary insurance addresses claims made by clients, investors, or other stakeholders against the company.

Crime insurance protects companies from losses resulting from criminal activities such as theft, forgery, or fraud. It provides coverage for both internal and external criminal acts. Crime insurance addresses losses incurred due to theft or fraud committed by employees, vendors, or other parties.

The terms and conditions of these insurance coverages are influenced by various factors, including specific circumstances and government regulations. For instance, certain federal or state regulations may require companies to obtain D&O insurance. Anti-discrimination laws may necessitate the purchase of EPL insurance to ensure compliance. Companies handling employee benefit plans might be obligated to acquire fiduciary insurance in accordance with the Employee Retirement Income Security Act (ERISA). Furthermore, government legislation and court rulings play a role in shaping the terms and conditions of these coverages.

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If the reserve ratio is 10% then calculate any excess reserve.The reserve ratio is the portion of the deposit that banks must hold in reserve.

Reserve ratio is expressed as a percentage of a bank's total deposits. Excess reserves refer to the amount of funds banks keep as cash, either in their vaults or on deposit with the Federal Reserve. Reserve = 10% of 25,000Reserve = 10/100 × 25,000Reserve = 2,500Excess Reserve = Reserve - Required Reserve Excess Reserve = 3,000 - 2,500Excess Reserve = 5002.

Money Multiplier = 1/RR Where RR = Reserve Ratio Money Multiplier = 1/10%Money Multiplier = 10Change in money supply = Excess Reserve x Money Multiplier Change in money supply = 500 x 10Change in money supply = 5,000.

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The conversion process introduces the system first to a limited portion of the organization. The correct option is A) The pilot study strategy.

The pilot study strategy is the conversion process that introduces the system first to a limited portion of the organization. In this approach, a small-scale implementation of the system is conducted in a specific department, division, or location within the organization. This allows for testing, evaluation, and fine-tuning of the system before a full-scale implementation is carried out.

By implementing the system in a controlled and limited environment, the pilot study strategy enables organizations to identify and address any issues or challenges that may arise. It provides an opportunity to assess the system's functionality, compatibility with existing processes, and its impact on the specific area of the organization where it is being tested.

Once the pilot study is deemed successful, the organization can then proceed with a wider implementation of the system across the entire organization using a phased approach, limited cutover, or parallel strategy, depending on the specific circumstances and requirements. However, the pilot study strategy is the initial step in introducing the system to a limited portion of the organization for evaluation and testing purposes.

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The optimal order size is 212 kg, and this is the calculation.

EOQ is used to calculate the optimal order size. The economic order quantity formula is

EOQ = √(2 x Z x Cs/cC)

Where, Z = Total annual usage Cs = Cost of placing an order C = Carrying cost rate per year c = Unit cost of the item

Given,

Total annual usage = 2600 kg

Unit cost of the item, c = € 33

Cost of placing an order, Cs = € 250

Stock costs per piece, C = € 30.5

Calculate the optimal order size using the economic order quantity formula

EOQ = √(2 x Z x Cs/cC)

EOQ = √(2 x 2600 x 250/30.5 x 33)

EOQ = 212 kg

Therefore, the optimal order size is 212 kg, and this is the calculation.

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Question 1The bond's market price can be calculated by using the formula given below:

Market price = PV(Coupon payments) + PV(Face value)

PV is the Present Value of the payments. Coupon payment = Par value x Coupon rate = 1000 x 9% = $90 per year

PV(Coupon payments) = Coupon payment x [1 - 1/(1 + r)ⁿ]/rwhere r is the required rate of return and n is the number of years.PV(Coupon payments) = 90 x [1 - 1/(1 + 0.08)⁵]/0.08 = $382.20Face value = $1,000PV(Face value) = Face value/(1 + r)ⁿ = 1000/(1 + 0.08)⁵ = $680.58Therefore,Market price = PV(Coupon payments) + PV(Face value) = $382.20 + $680.58 = $1,062.78

Question 2The bond's worth can be calculated by using the formula given below:

Bond's worth = PV(Coupon payments) + PV(Face value)PV is the Present Value of the payments.Coupon payment = $35 per half year.FV = $1,000Yield to maturity = 5.5%Yearly coupon payment = 2 x $35 = $70PV(Coupon payments) = $70 x [1 - 1/(1 + 0.055/2)¹²]/(0.055/2) = $1157.31PV(Face value) = $1000/(1 + 0.055/2)¹² = $751.32Therefore,Bond's worth = PV(Coupon payments) + PV(Face value) = $1,157.31 + $751.32 = $1,908.63

Question 3Yield on corporate bonds that would be required to be competitive can be calculated as shown below:

Tax-free bonds yield = 6%Investors face a tax rate = 30%After-tax yield on tax-free bonds = 6% x (1 - 30%) = 4.20%After-tax yield on corporate bonds = 4.20%Tax-adjusted yield on corporate bonds = 4.20%/(1 - 30%) = 6%Therefore, Yield on corporate bonds that would be required to be competitive is 6%.

Question 4The market price of the preferred equity today can be calculated as shown below:

Annual dividend = Par value x Dividend rate = $100 x 9% = $9Next year dividend = $9Required rate of return = 7%Price of preferred equity = Next year's dividend/ (required rate of return - dividend rate)= $9/(7% - 9%) = $(-450) which is not possible, this means that the calculation is wrong. Hence the market price of the preferred equity today is not possible.

Question 5Return required on AMC preferred equity can be calculated as shown below:

Annual dividend = $10Market price = $60Next year dividend = $10Required rate of return =

Dividend growth rate = (10/60) x 100 = 16.67%Dividend growth rate (g) = Retention ratio (b) x Return on equity (ROE)b = (ROE-g)/ROEThe average ROE of S&P 500 companies is 15%.b = (15% - 16.67%)/15% = -0.1111

Dividend growth model can be used to calculate the required rate of return as shown below:r = (D₁/P₀) + gwhere,r = Required rate of returnD₁ = Next year's dividendP₀ = Current market priceg = Dividend growth rater = (10/60) + 16.67% = 33.33%Therefore, return required on AMC preferred equity is 33.33%.

Question 6Dividend on preferred equity can be calculated as shown below:

Annual return = 10%Current share price = $80

The dividend is annual.

Dividend = Share price x Annual return = $80 x 10% = $8Therefore, the dividend on preferred equity is $8.

Question 7

The dividend is expected to increase by 7% per year forever.

The market price of the share is $12.14 and the annual expected return is at least 13%.

The required rate of return on Petscan equity can be calculated using the Gordon Growth Model as shown below:

r = D₁/P₀ + g where, D₁ = Expected dividend next year P₀ = Current market price g = Dividend growth rate = 7%r =

Required rate of return = 13%D₁ = $0.85 x 1.07 = $0.9095r = $0.9095/$12.14 + 0.07 = 0.1459 or 14.59%

Required rate of return (r) is greater than the expected rate of return (13%).

Therefore, Gail should buy the Petscan shares.Question 8The present value of the dividend payments during the first three years can be calculated using the formula given below:Present value of the first three years of dividends = D₁/(1 + r) + D₂/(1 + r)² + D₃/(1 + r)³where,r = Required rate of return

D₁ = dividend payment in year 1D₂ = dividend payment in year 2D₃ = dividend payment in year 3Dividend payment in year 1 = $2.70 x 1.25 = $3.38

Dividend payment in year 2 = $3.38 x 1.25 = $4.22

Dividend payment in year 3 = $4.22 x 1.25 = $5.28

Present value of the first three years of dividends = $3.38/(1 + 0.11) + $4.22/(1 + 0.11)² + $5.28/(1 + 0.11)³ = $10.02

The present value of the dividend payments after year 3 can be calculated using the formula given below:Present value of all subsequent dividend payments = D₄/(r - g) x [1/(1 + r)³]

where,g = Dividend growth rate = 6%Dividend payment in year 4 = $5.28 x 1.06 = $5.60

Present value of all subsequent dividend payments = $5.60/(0.11 - 0.06) x [1/(1 + 0.11)³] = $66.62

The current market price of the stock can be calculated by adding the present value of the dividends for the first three years to the present value of all subsequent dividend payments as shown below:

Current market price of the stock = Present value of the first three years of dividends + Present value of all subsequent dividend payments = $10.02 + $66.62 = $76.64Therefore, the share should sell for $76.64 today.

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In order to determine the fair price of the shares, the following steps need to be followed:

Step 1:

Calculation of dividends for the first 5 years:

Year 1 - 3:

No dividends are expected.

Year 4:

Dividend expected = 6p per share

Year 5:

Dividend expected = 6p per share

The present value of the above dividends is as follows:

Year

Present Value 4 5(6/(1+0.05 )^4) = 4.69(6/(1+0.05)^5 ) = 4.45

Step 2:

Calculation of dividends for the next 20 years:

The first year in which dividend growth occurs is in year 6.

Hence, growth occurs from year 6 to year 25.

Dividend in year 6 = 6.6p per share.

Dividend in year 7 = 7.26p per share.

Dividend growth rate = 10%Step 3:

Calculation of terminal value:

The growth rate of dividends after year 25 is 3.5% per annum.

The present value of dividends is calculated till year 25.

After year 25, we need to find the terminal value.

Terminal Value = Dividend at year 26 / (discount rate - growth rate) = 96.5p per share/(0.05 - 0.035) = 579.48p per share

Present value of the terminal value = 579.48/(1+0.05)^25 = 123.91p per share

Total present value of dividends = 4.69 + 4.45 + Σ PV of dividends from year 6 to 25 + 123.91= 145.05p per share

Approximate fair price of the share = Present value of dividends / (1+discount rate)^

n= 145.05p

per share / (1+0.05)^3= £16.84 per shareb)

If the discount rate is reduced from 5% to 3% per annum, the fair price of the shares will increase.

The new fair price of the shares can be calculated using the following formula:

New approximate fair price of the share = Present value of dividends / (1+discount rate)^n= 145.05p per share / (1+0.03)^3= £19.17 per sharec)

The initial investment is £16.84 per share and the selling price is £22.50 per share.

apital gain per share = £22.50 - £16.84 = £5.66 per share.

The investor paid income tax at 40% and capital gains tax at 28%.

Net yield on investment after tax = (capital gain - capital gain tax) * (1 - income tax rate)= (£5.66 - 0.28 * £5.66) * (1 - 0.4) = £1.98 per share.

The net yield on investment after tax is £1.98 per share.

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Per capita real GDP is an economic measure that has been used for decades to determine a country’s standard of living. However, it has some limitations when used as the sole indicator of economic welfare. Firstly, it measures economic growth, not economic welfare.

It does not reflect distribution issues; hence, two nations may have similar per capita GDPs, but the income distribution may differ widely. It can also give a misleading impression of economic welfare in a country. For instance, a country can have a high per capita GDP and a low welfare level or vice versa.

Moreover, per capita GDP is based on monetary values, and it does not consider non-monetary factors such as environmental issues, quality of life, social welfare, and economic security. Per capita real GDP cannot reflect the inequality in income distribution and cannot gauge economic welfare. It is therefore limited in its capability to measure economic welfare as a stand-alone variable.

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a. Graph showing marginal benefit, marginal private cost, and marginal social cost, with socially optimal output: The external cost incurred by the city with the number of fixed gear bikes can be expressed as external cost = 2/3Q.The graph below shows the marginal benefit (MB),

marginal private cost (MPC), and marginal social cost (MSC). The intersection point of the MPC and the MSC curves represents the socially optimal output, Q*.

The marginal social cost (MSC) curve is above the marginal private cost (MPC) curve since the external cost of the externality is not reflected in the private cost. The socially optimal output (Q*) is less than the market equilibrium output (Q0).

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Out of the 1110 warehouse workers, the number of workers who did not lie can be calculated by subtracting the number of workers who actually lied from the total number of workers.

Therefore, the number of workers who did not lie is 1110 - 20 = 1090.

To determine the number of workers who tested positive for lying but were actually telling the truth, we need to consider the accuracy of the polygraph test. Since the test is 87% accurate, it means that 87% of the workers who did not lie would test negative, and 13% of them would test positive incorrectly. Therefore, the number of workers who did not lie but tested positive for lying is 1090 * 0.13 = 141.7, which we can round to 142 workers.

Similarly, for the workers who actually lied, the test would correctly identify them as lying with an accuracy of 87%. Hence, the number of workers who lied and tested positive for lying would be 20 * 0.87 = 17.4, rounded to 17 workers.

The total number of workers who tested positive for lying is the sum of workers who lied and tested positive (17 workers) and workers who did not lie but tested positive (142 workers). Therefore, the total number of workers who tested positive for lying is 17 + 142 = 159.

To find the fraction of workers who tested positive for lying but were not lying, we divide the number of workers who did not lie but tested positive (142 workers) by the total number of workers who tested positive (159 workers). The fraction is 142/159 ≈ 0.892, which, when expressed as a percentage rounded to one decimal place, is 89.2%.

In summary:

- Number of workers who did not lie: 1090

- Number of workers who did not lie but tested positive for lying: 142

- Number of workers who lied but tested positive for lying: 17

- Total number of workers who tested positive for lying: 159

- Fraction of workers who tested positive for lying but were not lying: 89.2%

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When property taxes are assessed for $800,000, journal entries should be made. To properly record these journal entries, one should take note of the percentages that will be collected in the current period, subsequent year, and uncollectable amounts.

Assuming that 90% is assumed to be collected in the current period, 6% in the subsequent year, and the remaining is assumed uncollectable, the journal entries will be as follows:

Current Year: Debit: Property Taxes Receivable - $720,000 Credit:

Property Taxes Revenue- $720,000

Subsequent Year: Debit: Property Taxes Receivable - $48,000

Credit: Property Taxes Revenue - $48,000

Uncollectable amount: Debit: Property Taxes Receivable - $32,000

Credit: Allowance for Uncollectable Accounts - $32,000

In conclusion, the journal entries for when property taxes are assessed for $800,000 would be:

Current Year: Debit: Property Taxes Receivable - $720,000

Credit: Property Taxes Revenue - $720,000

Subsequent Year: Debit: Property Taxes Receivable - $48,000

Credit: Property Taxes Revenue - $48,000

Uncollectable amount: Debit: Property Taxes Receivable - $32,000

Credit: Allowance for Uncollectable Accounts - $32,000.

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A cash receipts clerk is responsible for receiving cash while General Accounting is responsible for preparing the bank's reconciliation.

Meanwhile, employees in Accounts Payable are responsible for examining the price of items ordered on the Purchase Order to the unpriced items received on the Vendor Invoice to ensure that fit and finish meet the company's criteria. They are also responsible for supervising, calculating, segregating, and documenting. In general, the primary responsibility of the cash receipts clerk is to collect and document payments from customers.

Accounts Payable is responsible for ensuring that all vendors and suppliers are paid in a timely and accurate manner. This department is responsible for examining vendor invoices, ensuring that the price of items ordered on the Purchase Order matches the unpriced items received on the Vendor Invoice, and resolving any discrepancies or errors that are identified. Accounts Payable is also responsible for supervising, calculating, segregating, and documenting invoices to ensure that they are properly processed and recorded.

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Requirement 1: Journalize the company's purchase of inventory. Date Account Title and Description Debit CreditAugust 1 Inventory 58,000Note Payable 58,000 Requirement.

 Make the adjusting entry for accrual of interest on the note payable on December 31, 2022.On December 31, interest must be accrued for five months (August 1 to December 31). The calculation of interest is:

Principal amount x annual interest rate

time = Interest58,000 x 6% x 5/12 = 1,450Date Account Title and Description Debit
Credit December 31 Interest Expense 1,450 Interest Payable 1,450

Requirement 3: At December 31, 2022, what is reported on the balance sheet related to this note payable?The note payable's balance will be the principal amount, $58,000, since no payment have been made yet. The interest accrued as of December 31, 2022, $1,450, will be shown as interest payable.

Date Account Title and Description Debit Credit December 31 Note Payable 58,000Interest Payable 1,450Requirement Record the payment of the note payable (principal and interest) on its maturity date. On February 1, 2023, the company will pay the note's entire amount (principal plus interest).Interest can be computed by the following formula:

Principal amount x annual interest rate x time = Interest

58,000 x 6% x 6/12 = 1,740Date Account Title and Description Debit

Credit February 1 Note Payable 58,000Interest Payable 1,450

Cash 59,450Interest Expense 1,740

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a) Real exchange rate can be defined as the rate at which the goods and services of one country can be exchanged for the goods and services of another country. The real exchange rate between two countries equals the nominal exchange rate multiplied by the ratio of the price levels of the two countries in terms of a common currency.

In this case, the nominal exchange rate is Can1.50 per pound. The ratio of the price level of a typical consumption basket in Canada to that in the United Kingdom is 1.50.

The real exchange rate is given by:

Real exchange rate = Nominal exchange rate × (Price level of Canadian consumption basket / Price level of U.K. consumption basket)= Can1.50 per pound × (1.50 / 1)

= Can2.25 per pound

b) In order to calculate the new real exchange rate, we need to find the new nominal exchange rate using the information given. The price levels in Canada and the United Kingdom have risen by 2% and 4% respectively.

This means that the price level of the Canadian consumption basket is now 1.5 × 1.02 = 1.53 times that of the U.K. consumption basket.

Let X be the new nominal exchange rate such that X pounds can be exchanged for 1 Canadian dollar.

Then, we have:

X × (1/1.53) = 1.4708

Or,

X = 1.4708 × 1.53 = 2.2469

The new nominal exchange rate is Can1 = 2.2469.

The new real exchange rate is given by:

Real exchange rate = Nominal exchange rate × (Price level of Canadian consumption basket / Price level of U.K. consumption basket)= Can1

= 2.2469 × (1.53 / 1)

= Can3.4344 per pound

c) Yes, the Canadian investor experienced a change in the real exchange rate.  

The real exchange rate has increased from Can 2.25 per pound to Can 3.4344 per pound, which means that the Canadian investor can now purchase more goods and services in the United Kingdom than before for the same amount of Canadian dollars.

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