Some firms use the payback method as a decision criterion or as a supplement to sophisticated decision techniques, because payback method . The correct answer is D) it considers the timing of cash flows and therefore the time value of money.
The payback mechanism, according to the claim, does not take the time value of money into account.A straightforward investment analysis tool called the payback method determines how many years it will take for the initial investment to be repaid through cash flows. The time value of money is not taken into account, therefore future cash flows are not discounted to their present value. This is a crucial distinction because the time worth of money is taken into consideration by other investment selection techniques like Net Present worth (NPV) and Internal Rate of Return (IRR).
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what dividend yield would be reported in the financial press for a stock that currently pays a $1.70 dividend per quarter and the most recent stock price was $50?
The dividend yield reported in the financial press for this stock would be 13.6%.
To calculate the dividend yield for a stock, you need to divide the annual dividend per share by the current stock price and express the result as a percentage.
Next, you divide the annual dividend per share ($6.80) by the most recent stock price ($50) and multiply the result by 100 to convert it to a percentage. The calculation looks like this:
($6.80 / $50) x 100 = 13.6%
Dividend Yield = (Annual Dividend / Stock Price) x 100
In this case, the stock pays a $1.70 dividend per quarter. To find the annual dividend, multiply the quarterly dividend by the number of quarters in a year (4):
Annual Dividend = $1.70 x 4 = $6.80
Now, divide the annual dividend by the most recent stock price ($50) and multiply by 100 to find the percentage:
Dividend Yield = ($6.80 / $50) x 100 = 13.6%
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last word why is it so hard for actively managed funds to generate higher rates of return than passively managed index funds having similar levels of risk? is there a simple way for an actively managed fund to increase its average expected rate of return?
Actively managed funds are those where the fund managers make investment decisions based on their research and analysis of the market, in order to outperform a specific benchmark or index.
On the other hand, passively managed index funds aim to replicate the performance of a specific benchmark or index, with little or no active management involved.
One of the main reasons why it is hard for actively managed funds to generate higher rates of return than passively managed index funds is due to the higher fees and expenses associated with active management.
Actively managed funds require a team of analysts, managers, and other professionals, which means higher costs for investors.
These fees are deducted from the returns generated by the fund, which reduces the net return for investors.
Another reason is the difficulty of consistently outperforming the market.
Active fund managers need to make the right investment decisions at the right time in order to beat the market.
This requires a high level of expertise, research, and analysis, as well as a bit of luck.
Even with all of these factors in their favor, they may not be able to consistently generate higher returns than the market, as the market is influenced by a wide range of factors that are often beyond their control.
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The knowledge, know-how, experience or education that an employee has is called:.
The knowledge, know-how, experience, or education that an employee has is called "human capital." Human capital refers to the intangible value that individuals bring to a company or organization through their knowledge, skills, experiences, and abilities.
This concept is important in the business world because it helps to recognize the essential role that employees play in contributing to the overall success and growth of a company. Human capital is developed over time through education, training, and on-the-job experiences, which enables employees to improve their skills and capabilities. Employers often invest in their employees' human capital through various training programs and development opportunities to enhance their skills, knowledge, and abilities. This investment is beneficial for both the organization and the employees, as it leads to increased productivity, innovation, and overall performance. Moreover, human capital is a critical factor in determining the competitive advantage of a company in the market. When employees possess the right combination of knowledge, know-how, and experience, they can drive innovation, improve business processes, and ultimately lead the company to greater success. In summary, human capital is an essential component of a company's success and refers to the valuable knowledge, know-how, experience, and education that an employee possesses.
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The Converting Department of Forever Fresh Towel and Tissue Company had 760 units in work in process at the beginning of the period, which were 25% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 840 units in process at the end of the period, which were 30% complete. Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs.
The number of equivalent units of production with respect to direct materials and conversion costs is 16,252.
To calculate the equivalent units of production, we need to consider both the units that are completed and transferred out, as well as the units that are in process at the end of the period and are partially complete.
For direct materials:
Equivalent units of production = (units completed and transferred out) + (ending work in process x percentage complete)
Equivalent units of production = (16,000) + (840 x 30%)
Equivalent units of production = 16,000 + 252
Equivalent units of production = 16,252
For conversion costs:
Equivalent units of production = (units completed and transferred out) + (ending work in process x percentage complete)
Equivalent units of production = (16,000) + (840 x 30%)
Equivalent units of production = 16,000 + 252
Equivalent units of production = 16,252
Therefore, the number of equivalent units of production with respect to direct materials and conversion costs is 16,252.
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if the united states system of incom taxation, the reason shareholders normally have to pay income taxes
In the United States, shareholders of corporations are typically required to pay income taxes on any dividends they receive from the corporation.
A corporation is a legal entity that is separate from its owners, who are known as shareholders. It is created by a group of individuals or entities coming together to form a company, which is then granted legal recognition as a separate entity by the government. This allows the corporation to enter into contracts, sue or be sued, own assets, and pay taxes in its own name, rather than in the names of its shareholders.
Corporations have several advantages, including limited liability for their shareholders, which means that they are only responsible for the amount they have invested in the company. This protects their personal assets from being used to pay the corporation's debts or legal liabilities. Additionally, corporations can issue stocks or shares to raise capital, allowing them to expand their operations or invest in new ventures.
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What would likely happen for some firms (in a perfectly competitive market) when the price is greater than the minimum average total cost for most other firms?
A) Enter until the price drops to equal minimum ATC.
B) Exit until the price drops to equal minimum ATC.
C) Exit until the price drops to equal minimum ATC.
D) Enter until the price increases to equal minimum ATC.
The answer is B) Exit until the price drops to equal minimum ATC.
In a perfectly competitive market, firms will exit if they are unable to sell their output at the market price. If the price of a good is greater than the minimum average total cost (MATC) for most firms, then some firms may choose to exit the market in order to reduce their costs.
On the other hand, if the price is below the MATC for most firms, then some firms may choose to enter the market in order to take advantage of the higher price and increase their profits. This will lead to an increase in the supply of the good, which will decrease the market price and bring it closer to the MATC of the remaining firms.
Therefore, in a perfectly competitive market, firms will exit until the price drops to equal the minimum ATC, as this is the price at which they can profitably sell their output.
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mast company reports net income of $337,500 for the year ended december 31. it also reports $110,600 depreciation expense and a $11,950 loss on the sale of equipment. its comparative balance sheet reveals a $48,000 increase in accounts receivable, a $12,150 decrease in prepaid expenses, a $18,450 increase in accounts payable, and a $15,100 decrease in wages payable. calculate the net increase in cash for the year.
To calculate the net increase in cash for the year, we need to consider the changes in all the cash inflows and outflows that have taken place during the year.
Here are the steps to calculate the net increase in cash for the year:
1. Start with the net income of the company, which is $337,500.
2. Add back the depreciation expense of $110,600, as this is a non-cash expense and doesn't affect the cash balance of the company.
3. Subtract the loss on the sale of equipment of $11,950, as this is a cash outflow.
Net income + Depreciation - Loss on sale of equipment
= $337,500 + $110,600 - $11,950
= $436,150
4. Next, we need to consider the changes in the company's working capital accounts, as these affect the cash balance of the company.
- Accounts receivable increased by $48,000, which means that the company received less cash than it earned from sales. This is a cash outflow.
- Prepaid expenses decreased by $12,150, which means that the company used cash to pay for expenses in advance. This is a cash outflow.
- Accounts payable increased by $18,450, which means that the company delayed payment to its suppliers. This is a cash inflow.
- Wages payable decreased by $15,100, which means that the company paid its employees less than it owed them. This is a cash inflow.
Net increase in cash from working capital changes
= -$48,000 - (-$12,150) + $18,450 + $15,100
= -$53,500
5. Finally, we can calculate the net increase in cash for the year by adding up the cash inflows and outflows:
Net increase in cash
= Net income + Depreciation - Loss on sale of equipment + Net increase in cash from working capital changes
= $436,150 - $53,500
= $382,650
Therefore, the net increase in cash for the year is $382,650.
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Why is it important to know how much output is being produced? Who uses such information?
It is essential to know how much output is being produced to understand the current state of the economy, identify trends, and plan for the future. The measure of output, also known as Gross Domestic Product (GDP), is the most widely used indicator of a country's economic performance.
It is calculated by summing up the total value of all goods and services produced within a country's borders during a specific period, usually a quarter or a year.Governments, policymakers, and investors use GDP and other output measures to make informed decisions about economic policies and investments. For example, central banks use GDP data to set interest rates, which can impact inflation, unemployment, and economic growth. Businesses also use GDP data to inform decisions about expanding or contracting their operations based on the current state of the economy. Overall, understanding the level of output being produced is crucial for assessing the current state of the economy and making informed decisions about future economic policies and investments.
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True/False: during the eisenhower administration, social security benefits were extended to additional recipients.
TRUE.During the Eisenhower administration, social security benefits were extended to additional recipients through the Social Security Amendments of 1954.
The amendments broadened coverage to include disabled children over 18 years of age, as well as widows and widowers over the age of 60. This was the first significant expansion of social security benefits since the program's inception in 1935.
The Eisenhower administration refers to the presidency of Dwight D. Eisenhower, who served as the 34th President of the United States from 1953 to 1961. Eisenhower was a Republican and a former general in the U.S. Army who led Allied forces in Europe during World War II.
During his presidency, Eisenhower oversaw a period of economic growth and prosperity known as the "Eisenhower Era." He pursued a policy of containment in foreign affairs, seeking to limit the spread of communism around the world. Eisenhower also oversaw significant civil rights advancements, including the desegregation of schools and the creation of the Civil Rights Commission.
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suppose an industry has 3 firms each with 20% of sales, and 5 firms each with 8% of sales. the hhi for this industry is
The HHI for this industry is based on the information provided by calculating HHI formula = 1520
The HHI is a formula to determine how concentrated a market's firms' markets are. We square the shares of each company in the market and add them up to determine the HHI. Thus, the equation is
(S1)^2 + (S2)^2..............................(SN)^2
In this question we have 3 firms with 20% share and 5 firms with 8% share so we will put these market shares in the formula
3*(20^2)+5*(8^2)=1520
The Herfindahl-Hirschman Index (HHI), a popular indicator of market concentration, is frequently used before to and after merger and acquisition (M&A) transactions to assess market competitiveness.
The index gauges a company's size in relation to the size of the industry it operates in as well as its level of competition. The market share of each company that competes in a market is squared, and the resulting numbers are then added to determine the HHI.
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What would be an example of capital good?
A) Jeanette buys a new dress.
B) The local driver's license office purchases a new digital camera and printer.
C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer.
D) Apple sells computers to Japan.
E) Rhianna gets a haircut.
Option B) The local driver's license office purchases a new digital camera and printer, would be an example of a capital good.
Capital goods are durable goods that are used in the production of other goods or services. They are assets that are used to produce other goods and services, rather than being consumed directly. In this case, the digital camera and printer purchased by the driver's license office are capital goods, as they will be used to produce driver's licenses and other documents. Examples of capital goods include machinery, tools, buildings, and equipment.
Capital goods are different from consumer goods, which are goods that are produced for direct consumption by individuals or households. Examples of consumer goods include food, clothing, and electronics.
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you have a 25-year maturity, 10.2% coupon, 10.2% yield bond with a duration of 10 years and a convexity of 135.7. if the interest rate were to fall 127 basis points, your predicted new price for the bond (including convexity) is $ . group of answer choices 1,126.19 1,162.19 1,115.25 1,151.25
The predicted new price for the bond (including convexity) if the interest rate were to fall 127 basis points is $1,126.19. To calculate the predicted new price of the bond with convexity included, we can use the following formula:
New price = current price + (change in yield * duration) + (1/2 * convexity * change in yield 2)
Plugging in the given values:
Current price: unknown
Change in yield = -1.27%
Duration: 10 years
Convexity = 135.7
First, we need to calculate the change in yield in decimal form:
-1.27% = -0.0127
Now we can solve for the new price:
New price = current price + (-0.0127 * 10) - (1/2 * 135.7 * (-0.0127)^2)
New price = current price - 0.127 - 0.0001087
New price = current price - 0.1271087
We know the predicted new price is $, so we can set up an equation:
$ = current price - 0.1271087
Solving for current price:
Current price = $ + 0.1271087
Current price = $1,151.25 + 0.1271087
Current price = $1,151.3771
Therefore, the predicted new price for the bond (including convexity) if the interest rate were to fall 127 basis points is $1,126.19.
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the ncaa is an example of which market failure? question 34 options: derived demand (for labor) monopsony monopoly wage discrimination
The NCAA (National Collegiate Athletic Association) is an example of monopsony, which is a type of market failure. Monopsony occurs when there is only one buyer of a good or service, and this buyer has market power to set the price for the good or service.
In the case of the NCAA, they are the sole buyer of college sports labor, as college athletes are not allowed to receive compensation beyond scholarships. This gives the NCAA significant market power to determine the terms and conditions of employment for college athletes, including their compensation and benefits.
As a result, college athletes may not receive fair compensation for their labor, and may be exploited by the NCAA. This is a form of market failure, as the market is not producing an efficient outcome that maximizes the welfare of all parties involved.
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when should you use awareness based bidding strategies?
Awareness-based bidding strategies are effective when a marketer's goal is to create brand awareness among a large audience, rather than focusing on driving conversions or sales.
These strategies are particularly useful for businesses that are new to the market or for those who want to introduce a new product or service. This type of bidding strategy helps to reach as many people as possible and to increase visibility for a brand or product.Awareness-based bidding strategies often prioritize reaching a large number of people over optimizing for a specific action, such as a click or conversion. Therefore, they may be less effective for businesses that are looking to drive immediate sales or conversions. However, they can be useful for businesses that are looking to build their brand and establish themselves in the market. Ultimately, the decision to use awareness-based bidding strategies should be based on a business's specific goals and marketing objectives.
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devonshire company borrowed $250,000 cash on april 1, 2022, and signed a one-year, 12% interest-bearing note payable. the interest and principal are both due on march 31, 2023. assume that the appropriate adjusting entry was made on december 31, 2022 and that no adjusting entries have been made during 2023. what is the amount of interest expense to be recorded when the interest and principal are paid on march 31, 2023? multiple choice $30,000 $22,500 $20,000 $7,500
The interest and principal are paid on March 31, 2023, is $22,500.
The amount of interest expense to be recorded when the interest and principal are paid on March 31, 2023, can be calculated as follows:
Interest expense for 9 months (April 1, 2022, to December 31, 2022):
= 250 thousand dollars × 12 % × 9/12
= $22,500
It is important to note that the adjusting entry made on December 31, 2022, would have recorded $7,500 as interest expense for the three months from October 1, 2022, to December 31, 2022. This entry would have increased the interest expense account and increased the interest payable liability account.
However, since no adjusting entries have been made during 2023, the interest payable liability account would have remained unchanged, and the full amount of $22,500 ($7,500 + $15,000) would be recorded as interest expense when the interest and principal are paid on March 31, 2023, is $22,500.
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Comments on Cost Approach
Miscellaneous
The Comments space may also be used for miscellaneous cost approach comments.
The cost approach is a method used to estimate the value of a property by calculating the cost of rebuilding or replacing it, less any depreciation or obsolescence. This method is based on the idea that a property's value is closely linked to the cost of constructing a similar property from scratch.
Some important factors to consider when using the cost approach include the cost of materials and labor, the age and condition of the property, and the level of depreciation or obsolescence that the property has experienced. It is also important to take into account any changes in building codes or regulations that may affect the cost of construction.
While the cost approach can be a useful tool for estimating the value of a property, it is important to remember that it is only one of several methods used by appraisers and may not always provide an accurate estimate of the property's value. It is important to consider the other methods used to value a property, such as the income approach and the sales comparison approach, in order to arrive at a more complete picture of its value.
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what is considered a valid reason for small businesses to insure the lives of its major stockholders
A valid reason for small businesses to insure the lives of their major stockholders is to protect the company from financial loss and instability in the event of their death.
When a major stockholder passes away, it can have significant consequences for a small business. To minimize the potential risks, small businesses may take out key person life insurance policies on the lives of their major stockholders. These policies provide financial protection to the business in the event of a major stockholder's death.
Step-by-step explanation:
1. Identify major stockholders: These are individuals who have a significant ownership stake in the business and play a crucial role in its success.
2. Assess the financial risk: Determine the potential financial impact on the business in case a major stockholder passes away. This includes loss of income, decreased sales, and difficulty in securing new investments.
3. Purchase key person life insurance: The business takes out a life insurance policy on the major stockholder, with the company as the beneficiary. This helps ensure that the business will receive a payout in the event of the stockholder's death.
4. Utilize insurance payout: In the event of a major stockholder's death, the company can use the insurance payout to help stabilize the business, cover expenses, pay off debts, and potentially find a suitable replacement.
In conclusion, insuring the lives of major stockholders is a valid strategy for small businesses to protect themselves from financial loss and maintain stability in the event of their death. This is especially important for small businesses that rely heavily on the contributions of a few key individuals.
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according to research, which statement regarding race diversity in the american workplace is correct? group of answer choices ethnic minorities experience a slight wage gap but no glass ceiling in u.s. workplaces. highly paid minority managers indicate that they have experienced very few situations in the workplace where race was an issue. most american employees surveyed indicate that their firms are effective at hiring and promoting minorities. overt discrimination against ethnic minorities still occurs in many u.s. workplaces.
Overt discrimination against ethnic minorities still occurs in many U.S. workplaces.
While it is true that ethnic minorities may experience a slight wage gap, research suggests that there is still a glass ceiling in U.S. workplaces that prevents them from advancing to higher-level positions. Additionally, while highly paid minority managers may indicate that they have experienced few situations where race was an issue, this does not necessarily reflect the experiences of all ethnic minorities in the workplace. Lastly, while some American employees may believe that their firms are effective at hiring and promoting minorities, this may not reflect the reality of the situation for many ethnic minorities who continue to face systemic barriers and discrimination in the workplace.
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during the new deal, the agricultural adjustment administration (aaa) paid farmers to . a) increase the production of their crops; b) reduce the production level of their crops; c) maintain the same level of crop production that they had grown in previous years; d) destroy all of their crops every year.
During the New Deal, the Agricultural Adjustment Administration (AAA) paid farmers to reduce the production level of their crops. Option b is correct.
The goal of this policy was to stabilize crop prices by reducing surpluses that were driving down prices and causing financial hardship for farmers. The AAA paid farmers to take land out of production, reduce acreage planted, and destroy crops or livestock. The program was controversial and faced legal challenges, but it did succeed in raising crop prices and increasing farm income in the short term. Hence, option b is correct choice.
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true or false: if alternatively jabari's hooknladder were a competitive firm and $100,000 were the market price for an engine, increasing production would not affect the price at which the company is able to sell engines.
False.
If Jabari's Hooknladder were a competitive firm and the market price for an engine is $100,000, increasing production would likely affect the price at which the company is able to sell engines. In a competitive market, firms are price takers and have no control over the market price. If Jabari's Hooknladder increases production, it will add more supply to the market. This increased supply will likely drive down the market price of engines as consumers will have more options to choose from. Thus, if Jabari's Hooknladder wants to maintain its market share, it will have to reduce the price of its engines.
In a competitive market, firms are price takers, meaning they have no control over the market price. The market price is determined by the intersection of supply and demand. If Jabari's Hooknladder were a competitive firm and the market price for an engine is $100,000, the firm would have to sell its engines at this price to remain competitive. However, if Jabari's Hooknladder were to increase its production, it would add more supply to the market. This increased supply would likely shift the supply curve to the right, leading to a new intersection of supply and demand at a lower price. In other words, the market price of engines would decrease due to the increase in supply. If Jabari's Hooknladder wants to maintain its market share, it will have to reduce the price of its engines to match the new market price. This is because consumers will have more options to choose from, and if Jabari's Hooknladder does not reduce its prices, consumers may choose to buy from a competitor instead. In conclusion, if Jabari's Hooknladder were a competitive firm and the market price for an engine is $100,000, increasing production would likely affect the price at which the company is able to sell engines. The increased supply would likely drive down the market price, and Jabari's Hooknladder would have to reduce its prices to remain competitive. Thus, the statement "if alternatively Jabari's Hooknladder were a competitive firm and $100,000 were the market price for an engine, increasing would not affect the price at which the company is able to sell engines" is false.
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the given statements refer to the pricing, economic efficiency, and resource allocation for monopolistically competitive firms. label the statements as being either true or false. each term is used more than once.
Pricing, economic efficiency, and resource allocation for monopolistically competitive firms
Monopolistically competitive firms are those that operate in a market with many other firms, selling products that are slightly differentiated from each other. In this type of market structure, firms have some market power and can set prices to a certain extent.
- Pricing: True. Monopolistically competitive firms have some control over their prices due to their product differentiation. They can charge a premium for their products, but this also depends on the elasticity of demand for their particular product.
- Economic efficiency: False. Monopolistically competitive markets are not considered economically efficient because there is some degree of market power and firms are not producing at the lowest possible cost. This can result in higher prices for consumers and lower levels of output compared to a perfectly competitive market.
- Resource allocation: True. In a monopolistically competitive market, firms will allocate resources based on their particular product and the preferences of consumers. They will invest in advertising, research and development, and other activities to differentiate their product and gain a competitive advantage.
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public relations group of answer choices should be used mostly to counteract any competitive promotions or negative publicity. is paid communication that helps enhance a company's image by highlighting its philanthropic efforts. should be used solely to respond to emergencies that could significantly damage the company's reputation. is generally not given much weight because the information is generated by the company itself. is an element of promotion that should be handled on a continuous basis.
The correct option for the given statement is "public relations group should be used mostly to counteract any competitive promotions or negative publicity." However, it is important to note that public relations is not just about countering negative publicity but also about building and maintaining a positive image of the company in the eyes of the public.
Paid communication that helps enhance a company's image by highlighting its philanthropic efforts is known as corporate social responsibility (CSR) and is a part of a company's overall public relations strategy. CSR can help improve a company's reputation and build trust with stakeholders, including customers, employees, and investors.
While public relations can be used to respond to emergencies that could significantly damage the company's reputation, it should not be the sole purpose of PR. Instead, PR should be handled on a continuous basis, proactively building and maintaining relationships with the public and various stakeholders.
It is not true that information generated by the company itself is generally not given much weight. PR professionals are trained to communicate information in a way that is credible and valuable to the public. It is important for companies to be transparent and honest in their communication with the public to build trust and credibility.
In conclusion, public relations is an important element of promotion that should be handled on a continuous basis, not just to counteract negative publicity. PR can be used to build and maintain a positive image of the company, including through CSR efforts, and should be approached with transparency and credibility.
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in a historic sense, globalism is the economic policy of applying tariffs on imported goods for government funding to reduce or eliminate the need for taxation on domestic industries. T/F
In a historic sense, globalism refers to the process of increased interconnectedness and integration of economies, societies, and cultures across the world. False
It involves the increasing flow of goods, services, capital, information, and people across borders, facilitated by advancements in technology, transportation, and communication. Globalism is often associated with the expansion of international trade, the rise of multinational corporations, and the growth of international financial markets.
The policy of applying tariffs on imported goods for government funding is known as protectionism, which is often seen as the opposite of globalism.
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Drysdale Co. (a U.S. firm) is considering a new project that would result in cash flows of 5 million Argentine pesos in 1 year under the most likely economic and political conditions. The spot rate of the Argentina peso in 1 year is expected to be $.40 based on these conditions. However, it wants to also account for the 10 percent probability of a political crisis in Argentina, which would change the expected cash flows to 4 million Argentine pesos in 1 year. In addition, it wants to account for the 20 percent probability that the exchange rate may only be $.36 at the end of 1 year. These two forms of country risk are independent. Drysdale’s required rate of return is 25 percent and its initial outlay for this project is $1.4 million. Show the distribution of possible outcomes for the project’s net present value.
So the distribution of possible outcomes for the project's net present value is $430,400, with a range of $232,000 to $520,000, depending on the scenario that plays out.
Distribution of possible outcomes for the project's net present value, we need to calculate the expected cash flows under different scenarios and then discount them back to their present values using Drysdale's required rate of return of 25%.
Under the most likely economic and political conditions, the project will generate cash flows of 5 million Argentine pesos in 1 year. At an exchange rate of $.40, this is equivalent to $2 million. Discounting this back to its present value using a rate of 25%, we get:
NPV = -1.4 + (2,000,000 / 1.25) = $520,000
In the event of a political crisis in Argentina, the project's cash flows would be reduced to 4 million Argentine pesos, or $1.6 million at an exchange rate of $.40. Discounting this back to its present value, we get:
NPV = -1.4 + (1,600,000 / 1.25) = $248,000
cash flows would still be 5 million Argentine pesos, but this would be equivalent to only $1.8 million. Discounting this back to its present value, we get:
NPV = -1.4 + (1,800,000 / 1.25) = $232,000
NPV calculations by the probability of its corresponding scenario occurring. The probability of the most likely scenario occurring is 70% (100% - 10% - 20%), the probability of a political crisis occurring is 10%, and the probability of an unfavorable exchange rate is 20%. Therefore, the distribution of possible outcomes for the project's net present value is:
NPV = ($520,000 x 0.7) + ($248,000 x 0.1) + ($232,000 x 0.2)
= $430,400
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Using the aging of receivables method, an unadjusted Allowance for Doubtful Accounts will have a credit balance when the amount of write offs recorded during the period is ______ the amount allowed in the prior accounting period.
The aging of receivables method is a technique used to estimate the amount of bad debt expense for a company. It involves analyzing the age of a company's accounts receivable balances and applying a percentage to each age category based on historical collection experience.
This method is commonly used because it provides a more accurate estimate of the allowance for doubtful accounts.
When using the aging of receivables method, the unadjusted allowance for doubtful accounts will have a credit balance when the amount of write offs recorded during the period is less than the amount allowed in the prior accounting period. This means that the company has overestimated the amount of bad debt expense in the previous accounting period and has written off less than expected. As a result, the unadjusted allowance for doubtful accounts has a credit balance that needs to be adjusted in the current period.
To adjust the unadjusted allowance for doubtful accounts, the company needs to recognize an expense for the difference between the amount allowed in the prior accounting period and the actual write-offs recorded. This will decrease the credit balance of the allowance for doubtful accounts and reflect a more accurate estimate of the bad debt expense for the current period.
In summary, the aging of receivables method is a useful technique for estimating the allowance for doubtful accounts. When the unadjusted allowance for doubtful accounts has a credit balance, it means that the company needs to adjust the allowance to reflect the actual write-offs recorded and the estimated bad debt expense for the current period.
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a consumer affairs investigator records the repair cost for 4 randomly selected tvs. a sample mean of $91.78 and standard deviation of $23.13 are subsequently computed. determine the 90% confidence interval for the mean repair cost for the tvs. assume the population is approximately normal. step 2 of 2 : construct the 90% confidence interval. round your answer to two decimal places.
A consumer affairs investigator records the repair cost for 4 randomly selected tvs. a sample mean of $91.78 confidence interval and standard deviation of $23.13 are subsequently computed. determine the 90% confidence interval.
To determine our level, we must divide the confidence interval by two and subtract one from the result. So: 1-0.9 = 0.052
We now need to locate z in the Ztable because it has a pvalue of 1l - a.
Z=1.645 since it has a pvalue of 1-0.05 = 0.95.
Find M now to be such.
M = z *, where is the population's standard deviation and n is the sample size.
14.32 M=1.645 * = 11.78
The sample mean has been subtracted by M to produce the interval's lower end. Therefore, 82.64 – 11.78 = $70.86.
The sample mean plus M determines the upper end of the interval. 82.64 plus 11.78 equals $94.42 as a result.
90% of the time.
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a firm has market power when it can responses a produce as much as it can.produce as much as it can. b make a profit.make a profit. c change its price without losing its market share.change its price without losing its market share. d affect other firms' output decisions.
a firm has market power when it can control production levels, make a profit, change prices without losing market share, and affect the output decisions of other firms.
I'll provide a concise explanation using the terms you've mentioned.
A firm has market power when it can:
a) Produce as much as it can: This means the firm can control its production levels and meet market demands without facing significant constraints or barriers.
b) Make a profit: Market power enables a firm to set prices that allow it to earn a profit, rather than just covering costs.
c) Change its price without losing its market share: A firm with market power can raise or lower prices without experiencing a significant loss in its share of the market, as customers may have limited alternatives.
d) Affect other firms' output decisions: Market power allows a firm to influence the decisions of other firms in the market, either by setting prices that impact competitors' costs or by adjusting production levels to influence market supply.
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all of the following are associated with transactional leaders except question 18 options: a) making decisions. b) evaluating performance. c) overseeing routine work. d) executing change. e) assigning work.
Executing change is not typically associated with transactional leaders.
Transactional leadership is characterized by a focus on maintaining the status quo, overseeing routine work, assigning tasks, making decisions based on predetermined rules, and evaluating performance based on established standards. Some transactional leaders may still execute change when it aligns with their goal of maintaining order and efficiency. Additionally, executing change is often associated with transformational leadership, which focuses on inspiring and motivating followers to pursue a shared vision of the future.
Transactional leaders primarily focus on making decisions, evaluating performance, overseeing routine work, and assigning work, but they are generally not involved in executing significant changes in the organization.
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if the cross elasticity of demand for two goods is negative, question 14 options: one of the goods is necessarily a normal good, and the other good is necessarily an inferior good.
it is possible for both goods to be normal goods or both goods to be inferior goods, even if the cross elasticity of demand between them is negative.
Elasticity is a concept used in economics to measure the responsiveness of one variable to changes in another variable. Specifically, it measures the percentage change in the quantity demanded or supplied of a good or service in response to a percentage change in the price, income, or other relevant factor.
There are different types of elasticity measures, including price elasticity of demand, income elasticity of demand, and cross-price elasticity of demand. Price elasticity of demand, for example, measures the responsiveness of the quantity demanded of a good or service to changes in its price. A high price elasticity of demand indicates that a small change in price results in a large change in the quantity demanded, while a low price elasticity of demand indicates that a change in price has a relatively small effect on the quantity demanded.
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betty buyer discovers that the pin she bought from sally seller is not a ruby as sally had claimed. she believes that sally's misrepresentation was innocent, but she wants to get her money back. in order to get her money back, betty will have to return the pin to sally. this is the duty of
Betty Buyer's duty in order to get her money back is to return the pin to Sally Seller.
Betty can request a refund from Sally and provide evidence that the pin is not a ruby as claimed. If Sally refuses to refund the money, Betty may need to take legal action to recover the cost of the pin. It's important to note that the laws and regulations surrounding consumer protection and misrepresentation can vary by jurisdiction, so Betty may need to seek legal advice specific to her location.
In this scenario, Betty Buyer needs to return the pin to Sally Seller to get her money back. This process is called restitution, which aims to restore both parties to their original positions before the transaction occurred.
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