The two sons Stacey Derringer has are five and six years old and she is divorced. Child support from her ex-husband amounts to $100 per week each child.
She has been putting the money into a savings account for the past year, collecting just 1% interest every year, and she has amassed $10,600.
Assuming that Stacey’s ex-husband will continue to pay the same amount of child support for each son until they reach the age of 18, calculate how much Stacey will be able to accumulate using this investment strategy. For ease of computation, you can assume end-of-year child support payments of $5,200 per year for each child.
The total amount of child support for two children in a year is $10,400 ($5,200 per child).Stacey’s current savings balance is: Balance at the end of the first year = Principal amount + Simple interest= $10,400 + 1% of $10,400= $10,400 + $104= $10,504Stacey will get $10,504 at the end of the second year, $10,608 at the end of the third year, and so on.
Hence, Stacey will accumulate $232,168 ($10,504 for 18 years) with this investment strategy.
The risk of this type of investment strategy is inflation risk. The money Stacey is putting into the savings account will not be able to keep up with inflation since the interest earned is only 1%. As inflation increases, the money’s value is reduced, causing the fund's purchasing power to be weaker.
As a result, the $232,168 that Stacey will accumulate over 18 years may not be enough to cover her sons' college education expenses due to inflation. Assuming that Stacey’s ex-husband will continue to pay the same amount of child support for each son until they reach the age of 18, calculate how much Stacey will accumulate.
If Stacey invests in a balanced mutual fund that earns 6�ter taxes, the growth in the college fund will be significant. Stacey will be able to accumulate a total of $329,230 ($18,290 for 18 years) if she invests the child support in a balanced mutual fund that earns 6�ter taxes. The formula used to calculate the future value of an annuity is: FV = P * [(1 + r)n - 1] / r where, P = Annuity payment r = Rate of interest n = Number of payments FV = Future value of an annuity
So, the future value of the investment made in a balanced mutual fund that earns 6�ter taxes is:$5,200 * [(1 + 6%)18 - 1] / 6% = $95,418The total future value of the child support investment in a balanced mutual fund that earns 6�ter taxes would be:$95,418 * 2 (as there are two children) = $190,836The current value of $190,836 in 18 years' time, assuming inflation is 2.5% per year, will be $115,055.
To Know more about investment strategy
https://brainly.com/question/30160319
#SPJ11
the hypothesis that market prices reflect all publicly-available information is called efficiency in the: question 49 options: open form. strong form. semi-strong form. weak form. stable form.
Out of these options, the correct answer is:
3. Semi-strong form.
The hypothesis that market prices reflect all publicly-available information is called market efficiency. Market efficiency is classified into different forms based on the type of information that is incorporated into prices.
The semi-strong form of market efficiency states that market prices reflect all publicly available information, including not only historical price data but also information such as company announcements, news, and financial statements. In other words, all publicly-available information is quickly and accurately reflected in the stock prices.
To illustrate this, let's say that a company announces better-than-expected earnings. According to the semi-strong form of market efficiency, this information will be quickly incorporated into the stock price, causing it to rise. Similarly, if negative news about a company is released, the stock price would be expected to fall as this information is also quickly factored into the price.
It is important to note that the semi-strong form of market efficiency does not imply that stock prices are always correct or that they accurately reflect the intrinsic value of a company. Instead, it suggests that all available information is rapidly and efficiently incorporated into prices, making it difficult to consistently outperform the market by trading on public information alone.
In summary, the hypothesis that market prices reflect all publicly-available information is called market efficiency, specifically in the semi-strong form. This form asserts that stock prices promptly and accurately reflect all publicly available information, including company announcements and financial reports.
To know more about efficiency here:
brainly.com/question/30861596
#SPJ11
Logistics Solutions provides order fullilment services for dot.com merchants. The company maintains warehouses that stock items canled by its dot com clients. When a cllent recelves an order from a customet, the order is forwarded to Logistics Solutions, which puils the rem from storoge, packs it, and ships it to the customet. The company uses a predetermined varlable overhead rate based on direct labothours: In the most recent month, 160,000 items were shipped to customers using 6.500 direct labor-hours. The company incufred a total of $20.800 in variable overhead costs. According to the company's standards, 0.03 direct labor-hours are required to fulfil an order for one item and the variable overhead rate is $325 per direct inbor hour. Required: 1. What is the standard laborhours allowed (SH) to ship 160,000 liems to customers? 2. What is the standard variable overhead cost allowed (SH × SF) to ship 160,000 items to customers? 3. Whot is the variable overhead spending variance? 4. What is the variable overbead rate variance and the variable overhead efficiency variance? (For requirements 3 and 4 , indicate the effect of each variance by selecting " F " for favorable, " U " for unfavorable, and "None" for no effect (i.e, xero varlance), Input all amounts as positive values. Do not round intermediate calculations.)
Variable Overhead Efficiency Variance = (6,500 DLH × $3 per DLH) − (4,800 SH × $3 per DLH) = $8,100 F
Standard labor hours allowed (SH) to ship 160,000 items to customers are given as follows:-
Direct Labor-Hours per Unit × Number of Units SH = DLH/U × NU
Substituting the given values, we get:-SH = 0.03 DLH/U × 160,000 USH = 4,800 labor-hours
Standard variable overhead cost allowed (SH × SF) to ship 160,000 items to customers are given as follows:-
SH × SVO
Rate = SH × VOHR
Substituting the given values, we get:-SH × SVO
Rate = 4,800 × $325 = $1,560,0003.
The variable overhead spending variance is given as follows:-
Actual VOH − (AH × SR) = Spending Variance
Substituting the given values, we get:-$20,800 − (6,500 DLH × $3 per DLH) = $1,300 U4. Variable Overhead Rate Variance and Variable Overhead Efficiency Variance is given as follows:-
Actual VOH
Rate − Standard VOH
Rate = Rate Variance(AH × SR) − (SH × SR) = Efficiency Variance
Substituting the given values, we get:-
Variable Overhead Rate Variance = $20,800 / 6,500 DLH − $3 per DLH = $0.80 F
Variable Overhead Efficiency Variance = (6,500 DLH × $3 per DLH) − (4,800 SH × $3 per DLH) = $8,100 F
To know more about Standard visit:
https://brainly.com/question/31979065
#SPJ11
The form of market efficiency in which market prices incorporate all types of information (past, current, and insider), and no one can beat the markef by making an excess return. a. semi-strong form b. weak-form c. inefficient market d. strong form
The efficient market hypothesis is a cornerstone of modern finance and states that all market participants have access to the same information and that prices adjust quickly to reflect new information. The hypothesis comes in three forms: weak, semi-strong, and strong.
The weak form states that current prices incorporate all past market information. The semi-strong form adds that prices also reflect all publicly available information (such as earnings reports, news articles, and government reports). Finally, the strong form says that prices reflect all information, including insider information.
However, some economists argue that the efficient market hypothesis does not always hold, as market participants are not always rational and can be driven by emotions and biases.
In summary, the strong form of market efficiency is the highest level of efficiency and suggests that no one can earn returns in excess of the market by using any type of information, including insider information.
To know more about hypothesis visit:
https://brainly.com/question/32298676
#SPJ11
When a company chooses to divest a particular strategic business unit, it ________.(sells off or phases out the strategic business unit)
When a company chooses to divest a particular strategic business unit, it can either sell off or phase out the strategic business unit, depending on the specific circumstances and objectives of the company.
Sell off: Selling off a strategic business unit involves finding a buyer for the unit and transferring ownership to them. This option is typically chosen when the company believes that selling the business unit will result in a favorable financial outcome. It may be done to generate funds, reduce debt, streamline operations, or focus resources on core business areas.
Phase out: Phasing out a strategic business unit involves gradually reducing or discontinuing its operations over a period of time. This approach is typically chosen when the company determines that the business unit no longer aligns with its long-term goals or does not offer sufficient growth potential.
Phasing out allows the company to wind down operations, minimize disruptions, and reallocate resources to more promising areas.
The decision to sell off or phase out a strategic business unit depends on various factors such as market conditions, financial considerations, strategic priorities, and the potential impact on employees and stakeholders. It requires careful evaluation and analysis to determine the most appropriate course of action for the company's overall growth and profitability.
To learn more about strategic business click on,
https://brainly.com/question/28149656
#SPJ4
The budget components for Sheffield Company for the quarter ended June 30 appear below. Sheffield sells high performance coolers for $120 each. Budgeted sales and production for the next three months are: Sheffield desires to have coolers on hand at the end of each month equal to 30 percent of the following month's budgeted sales in units. On March 31. Sheffield had 6,090 completed units on hand. Five pounds of plastic are required for each cooler. At the end of each month, Sheffield desires to have 10 percent of the following month's production material needs on hand. At March 31 , Sheffield had 13.250 pounds of plastic on hand. The materials used in production cost $0.50 per pound. The production of each cooler requires 0.10 hours of direct labor. Determine the budgeted cost of direct materials purchases for the month of April. Budgeted cost of direct materials purchases for April
Budgeted cost of direct materials purchases for April = (900 - 13,250 + 360) x $0.50 = $4985.
The budgeted cost of direct materials purchases for April can be determined by using the following formula; Budgeted cost of direct materials purchases = Desired ending inventory of materials - Beginning inventory of materials + Materials needed for production. Here, Desired ending inventory of materials = 10% of following month's production material needs Beginning inventory of materials = 13,250 pounds of plastic Materials needed for production = (0.10 direct labor hours x 2 pounds per hour) x 1,800 budgeted production = 360 pounds. So, Desired ending inventory of materials = 10% of (1,800 x 5) = 900 pounds
learn more about purchases here:
https://brainly.com/question/31035675
#SPJ11
the practical and theoretical approaches describe authentic leadership as
Authentic leadership is a relatively new leadership concept that has received increased attention in recent years. It is defined as a leadership style that is transparent, ethical, and genuine. In practical terms, authentic leaders are those who model the principles that they espouse. They are people who are open and honest, and who are willing to admit their shortcomings.
Authentic leadership can be contrasted with other leadership styles that may rely on manipulation or coercion to get things done. For example, a transactional leader may offer rewards for good behavior or punish negative behavior. This type of leadership is effective in some situations, but it can also lead to resentment and decreased motivation among employees.
In theoretical terms, authentic leadership can be seen as a combination of two related concepts: moral leadership and transformational leadership. Moral leadership refers to the idea that leaders should act in accordance with a set of ethical principles. Transformational leadership refers to the ability of a leader to inspire and motivate followers to achieve great things.
In summary, authentic leadership can be described as a practical and theoretical approach to leadership that emphasizes transparency, ethics, and genuine relationships between leaders and followers. This approach can be contrasted with other leadership styles that may rely on manipulation or coercion to get things done. Authentic leadership is seen as a combination of moral and transformational leadership, and it is effective in inspiring and motivating followers to achieve great things.
Learn more about Moral leadership from the given link:
https://brainly.com/question/15396306
#SPJ11
The purpose of diversity training is to help employees __________ their biases.
a. ignore
b. hide
c. become aware of
d. eliminate
e. expand
The purpose of diversity training is to help employees become aware of their biases.
Option c) "become aware of" is the correct answer. Diversity training aims to educate employees about various aspects of diversity, including race, ethnicity, gender, age, religion, sexual orientation, and more.
By providing education and awareness, diversity training helps individuals recognize and understand their own biases, stereotypes, and prejudices that they may hold unconsciously. It encourages employees to examine their beliefs and attitudes and fosters an inclusive and respectful work environment.
Options a) "ignore" and b) "hide" are not accurate because diversity training aims to address biases rather than ignore or hide them. Option d) "eliminate" is partially correct, as the goal is to minimize and mitigate biases, but complete elimination may not be entirely feasible. Option e) "expand" is not applicable as it does not capture the purpose of diversity training related to biases.
Therefore, the most appropriate answer is c) become aware of.
To learn more about, Diversity Training, click here, https://brainly.com/question/33084127
#SPJ11
There are several reasons as to why the American automobile industry collapsed in 2008. Which of the following correctly identifies the reason/s for the collapse: 1) The volume of cars sold in the U.S. was significantly tied to home equity lines of credit, with 24% of auto sales financed this way in 2006− when people could no longer pay their mortgage they could no longer finance new automobiles. 2) American employees' salaries helped drive the industry toward its collapse; in that, total compensation for General Motors employees was approximately $73 per hour while for Toyota's employees the salary was about $48 /hour." 3) In 2006, Consumer Reports cited their top 10 best automobiles............and not one of the top 10 was an American made automobile; thus, consumers had turned to foreign made cars because they were rated better than American made cars. 4) During the 1990 s General Motors, Chrysler, and Ford had all begun to produce smaller fuel efficient automobiles at a time when consumers still wanted to purchase large sport utility vehicles, so consumers turned to foreign made automobiles. 5) 1, 2 and 3 are ALL reasons for the collapse of the automobile industry. Over the past few decades, what no so very bright strategies were utilized by financial institutions that contributed negatively to the mortgage crisis and banking crisis that we experienced during 2006-2010? 1) Savings \& Loans and other financial institutions invested in fairly unstructured types of financial investments-including the Mortgage Backed Securities created by Freddie and Fannie. 2) Commercial banks worked diligently to control their use of debt and were very careful about who they loaned money to. 3) Many smaller banks over-extended their debt loads (borrowing) and had multiple loans with larger banks, so the failure of the smaller bank caused some of the larger banks to fail, too. 4) Because financial institutions lobbied for deregulation; in that, they did not want the government to oversee their choices; thus, they became fully exposed to the risks of bubbles and crashes in adjoining markets-such as the auto industry collapse and the housing market collapse. 5) 1, 3 and 4 are correct.
The correct option is 5) 1, 2 and 3 are ALL reasons for the collapse of the automobile industry.The following identifies the reasons for the collapse of the American automobile industry in 2008:
1. The volume of cars sold in the U.S. was significantly tied to home equity lines of credit, with 24% of auto sales financed this way in 2006− when people could no longer pay their mortgage they could no longer finance new automobiles.
2. American employees' salaries helped drive the industry toward its collapse; in that, total compensation for General Motors employees was approximately $73 per hour while for Toyota's employees the salary was about $48 /hour.3. In 2006, Consumer Reports cited their top 10 best automobiles and not one of the top 10 was an American made automobile; thus, consumers had turned to foreign made cars because they were rated better than American made cars.
4. During the 1990s, General Motors, Chrysler, and Ford had all begun to produce smaller fuel-efficient automobiles at a time when consumers still wanted to purchase large sport utility vehicles, so consumers turned to foreign-made automobiles.Therefore, the correct option is 5) 1, 2 and 3 are ALL reasons for the collapse of the automobile industry.
To know more about automobile visit:
https://brainly.com/question/31418534
#SPJ11
When the Federal Reserve buys assets on the open market the monetary base declines because funds flow out of the Fed to the commercial banking system.
True
False
If the reserve requirement is 100% then a $1,000 increase in reserves will lead to a $1,000 increase in M1.
True
False
The Federal Reserve buys assets on the open market the monetary base declines because funds flow out of the Fed to the commercial banking system.
On the other hand, when the Federal Reserve sells securities, it receives payment from the dealer, which reduces the dealer's reserve balance and lowers the monetary base as well. The monetary base is the sum of reserves held by commercial banks and the currency in circulation.
Reserve requirements are the minimum amount of reserves that banks must maintain against their deposits. When the reserve requirement is 100%, then a[tex]$1,000[/tex] increase in reserves will lead to a [tex]$1,000[/tex] increase in M1.False When the reserve requirement is 100%, then a [tex]$1,000[/tex] increase in reserves will lead to a [tex]$1,000[/tex] increase in the monetary base, not M1.
To know more about Federal visit:
https://brainly.com/question/1951874
#SPJ11
what could happen to a person who fails to diversify his investments?
Failing to diversify investments can expose a person to several potential risks and negative consequences.
Here are some potential outcomes that could occur when an individual fails to diversify their investments:
Concentrated Risk: By investing in a single asset or a limited number of assets, an individual becomes overly exposed to the performance and volatility of those specific investments. If any of those investments perform poorly or experience significant declines, the person's entire portfolio could suffer significant losses.
Lack of Risk Mitigation: Diversification is a risk management strategy that aims to spread investments across different asset classes, industries, or geographic regions. By diversifying, one can potentially mitigate the impact of negative events affecting a particular investment. Without diversification, a person is more susceptible to the adverse effects of market fluctuations, economic downturns, or sector-specific issues.
Lost Opportunities: Focusing solely on a few investments may result in missed opportunities for potential gains. Diversification allows investors to participate in various market sectors and asset classes, potentially benefiting from the growth and success of different industries or regions.
Lack of Liquidity: If a person fails to diversify and invests a significant portion of their wealth in illiquid assets or a single asset class, they may encounter difficulties accessing funds when needed. Illiquid investments can be challenging to sell quickly, potentially leaving an individual in a cash-strapped situation during emergencies or unforeseen circumstances.
Limited Exposure to New Ideas: Diversification enables exposure to a wider range of investment opportunities and ideas. By investing in different sectors or asset classes, individuals can explore emerging trends, innovative technologies, or promising industries, which can contribute to long-term growth. Failing to diversify restricts exposure to these new ideas and potential sources of future returns.
Increased Vulnerability to External Factors: If a person's investments are heavily concentrated in a specific industry or geographic region, they become more vulnerable to external factors that impact that industry or region. Factors like regulatory changes, economic conditions, or geopolitical events could have a disproportionately negative effect on their portfolio.
It's important to note that diversification does not guarantee profits or protect against all possible losses, but it is generally considered a prudent risk management strategy that can help mitigate the impact of unforeseen events and reduce overall investment risk.
To learn more about, diversify investments, click here, https://brainly.com/question/33447024
#SPJ11
The ICS Marketing Department wants to increase subscriptions to its "Trident" product bundle which includes telephone, cable television, and Internet services. The Marketing Department gathered information about current customers, and whether or not they currently subscribe to the Trident bundle. Current customers might subscribe to only one or two of the services offered, and ICS would like to upgrade such customers to the Trident bundle.
Marketing staff designed a 5-question survey for customers who currently do not subscribe to the Trident bundle. One of the questions posed in the survey was: "Would you consider subscribing to the Trident bundle if a discount was offered?"
Out of 500 households selected for the survey, several households chose not to participate, could not be contacted after repeated attempts, or had telephone numbers that were not in service. An Excel file has been provided to you in Blackboard, containing the results for this survey question (see Case Assignment #3 Data.xlsx, tab SURVEY).
(a) Prepare a confidence interval for the proportion of all current households which would subscribe to the Trident bundle if a discount was offered. Use a confidence level of 95%. [8 marks]
(b) Briefly comment on the marketing implications these results might have for ICS. [2 marks]
To prepare a confidence interval for the proportion of all current households that would subscribe to the Trident bundle if a discount was offered, we need to use the provided survey data and calculate the confidence interval using a confidence level of 95%.
First, locate the data for the survey question "Would you consider subscribing to the Trident bundle if a discount was offered?" in the provided Excel file.Calculate the sample proportion (p-hat) by dividing the number of "Yes" responses by the total number of survey responses.Next, calculate the standard error (SE) using the formula: SE = sqrt((p-hat * (1 - p-hat)) / n), where n is the total number of survey responses.Using a confidence level of 95%, find the critical value (Z) associated with that confidence level. For a two-tailed test, the critical value is approximately 1.96.Finally, calculate the confidence interval using the formula: Confidence Interval = p-hat ± (Z * SE).(b) The marketing implications of these results for ICS depend on the obtained confidence interval. The confidence interval represents a range of values within which the true proportion of all current households that would subscribe to the Trident bundle if a discount was offered is likely to fall.
To learn more about confidence level:
https://brainly.com/question/22851322
#SPJ11
What are some common pitfalls of intelligence analysis, and how can you avoid them?
Some common pitfalls of intelligence analysis include biases, limited data or incomplete information, and cognitive traps.
Intelligence analysis is a complex process that involves gathering and evaluating information to produce accurate and meaningful insights.
However, there are several common pitfalls that analysts may encounter.
Here are some of them and strategies to avoid them:
1. Cognitive biases:
Analysts can fall victim to cognitive biases, such as confirmation bias (favoring information that supports pre-existing beliefs) or anchoring bias (relying too heavily on initial information).
To mitigate this, analysts should consciously challenge their assumptions, seek diverse perspectives, and consider alternative hypotheses.
2. Lack of objectivity:
Personal opinions and biases can influence analysis.
It is important for analysts to strive for objectivity and separate personal beliefs from the analytical process.
Applying structured analytic techniques, peer review, and external validation can help in maintaining objectivity.
3. Incomplete or biased data:
Limited or biased data can lead to incomplete or inaccurate analysis.
Analysts should be aware of the limitations of their data sources and seek multiple, reliable sources to gather comprehensive information.
It is important to critically evaluate the quality and reliability of the data used in the analysis.
4. Overconfidence:
Analysts may become overly confident in their assessments, leading to unwarranted certainty.
To avoid this, analysts should communicate uncertainties and limitations associated with their analysis.
They should also encourage continuous review and update of analysis as new information becomes available.
5. Lack of collaboration and information sharing:
Analysts working in isolation may miss out on valuable insights or alternative perspectives.
Collaborative approaches, such as team analysis, red teaming, and interagency cooperation, can help overcome this pitfall.
Sharing information and engaging in constructive dialogue with other analysts can enhance the quality of analysis.
6. Inadequate communication of analysis:
Even the most accurate and insightful analysis is ineffective if it is not communicated clearly and effectively.
Analysts should use appropriate visualization techniques, avoid jargon, and tailor their communication to the intended audience.
Feedback from recipients of the analysis can help refine communication strategies.
7. Failure to update analysis:
Intelligence analysis is an iterative process, and new information can emerge that requires updating previous assessments.
Analysts should remain vigilant, continuously monitor developments, and be prepared to revise their analysis based on new evidence or changing circumstances.
By being aware of these common pitfalls and employing strategies to mitigate them, intelligence analysts can enhance the accuracy, objectivity, and usefulness of their analysis.
Ongoing training, critical thinking, and a commitment to professional standards are essential in avoiding these pitfalls and improving the overall quality of intelligence analysis.
Learn more about Intelligence analysis from this link:
https://brainly.com/question/12774131
#SPJ11
In economic terms, how would Hilo state what has happened when his coworker says she will help him fix his car because Hilo is willing to teach her son to play the drums? The arrangement acts as a money multiplier. Money is backed by commodities. There are two equal units of account. The double coincidence of wants is satisfied.
In economic terms, Hilo would state that his coworker's willingness to help him fix his car in exchange for teaching her son how to play drums is a form of barter trade. It is a mutually beneficial arrangement that satisfies the double coincidence of wants; this is because both parties have something the other party wants.
Therefore, they have no need to exchange currency in order to fulfill their respective wants. Hilo would also point out that the arrangement acts as a money multiplier in the sense that it increases the purchasing power of both parties. For instance, if Hilo were to take his car to a mechanic, he would have to pay cash to get it fixed.
However, since his coworker has agreed to help him, he can save that money. Similarly, if his coworker were to pay a professional drum instructor to teach her son how to play drums, she would have to spend cash.
To know more about coworker's visit:
https://brainly.com/question/32416241
#SPJ11
Suppose that we want to have a yearly income of $50,000 in retirement. We expect to live 25 years in retirement and our inflation-adjusted rate of return on our safe investment is 3%. How much money do we need to have saved in order to have this consistent income? What are some issues that we could have that would cause our estimates to deviate in a way that is harmful for us?
Suppose that we want to have a yearly income of $50,000 in retirement. We expect to live 25 years in retirement and our inflation-adjusted rate of return on our safe investment is 3%. The amount of money we require to have saved in order to have this consistent income is $ 1,030,272.70.
Here, the present value (PV) of the annuity can be found using the PV of annuity formula, which is as follows:
PV = C × [(1 - (1 + r)-n)/r]
Where,
C is the periodic payment or cash inflow,$50,000
n is the number of payments or cash inflows,25 (since we want to live for 25 years in retirement)
r is the inflation-adjusted rate of return on our safe investment or discount rate. In this case, the rate is 3%.
Therefore,
PV = $50,000 × [(1 - (1 + 3%)-25)/3%]
= $50,000 × [(1 - (1.03)-25)/0.03]
= $50,000 × [(1 - 0.41646)/0.03]
= $1,030,272.70
Some of the issues that can cause our estimates to deviate in a way that is harmful for us are:
Inflation risk: If inflation is higher than the estimated 3%, then our purchasing power will decrease over time. As a result, we may not have enough income to meet our retirement expenses, resulting in a reduced standard of living. We could also lose our savings to inflation.
Interest rate risk: The interest rate may change over time, affecting the amount of money we can earn on our savings. If interest rates fall, our savings will earn less money, resulting in lower retirement income, and if interest rates rise, we may have to reinvest our money at a lower rate, resulting in lower retirement income. As a result, interest rate risk may cause our retirement income to fluctuate.
Market risk: Market risk may cause our retirement savings to fluctuate in value. This may be due to stock market downturns or recessions. As a result, we may lose money on our investments or be forced to withdraw funds at a lower price, resulting in a lower retirement income.
Learn more about Inflation risk: https://brainly.com/question/898238
#SPJ11
Use the AD–AS diagram to show the effect of an increase in oil
prices (assume the LRAS is constant).
The AD-AS model depicts the consequences of changes in the economy's monetary and fiscal policies on national output and price level.
In the long run, the equilibrium GDP is determined by the economy's productive capacity, known as the long-run aggregate supply (LRAS).In the AD-AS diagram, an increase in oil prices leads to a leftward shift in the short-run aggregate supply (SRAS) curve.
This is because higher oil prices result in higher input prices for businesses, which leads to an increase in production costs. The new equilibrium point is where the AD curve intersects with the new SRAS curve to the left. which results in a new equilibrium at E2.
To know more about consequences visit:
https://brainly.com/question/23037584
#SPJ11
Margin of Safety Jake's Sub Shop sells large subsandwiches for $7.75. Unit variable expenses total $2.85. The break-even sales in units is 5.700 and budgeted sales in units is 9.500. Round answers to the nearest dollar, if applicable. What is the margin of safety in dollars? What are Jakes fixed costs?
Margin of safety is the sales revenue required to cover variable and fixed costs before a profit is earned.
It can also be defined as the difference between actual sales and break-even sales in percentage or dollar terms.
What is the margin of safety in dollars?
Formula for margin of safety in dollars = Total sales - Break-even sales
Margin of safety = (9,500 - 5,700) x $7.75 = $29,050
The margin of safety for Jake’s sub shop is $29,050.
What are Jake’s fixed costs?
Fixed costs can be calculated by using the formula,
Fixed costs = Total costs - Total variable costs
Fixed costs = (5,700 x $2.85) - (5,700 x $7.75)
Fixed costs = $-16,305
The calculation gives a negative result which is not possible,
this means that Jake’s fixed costs are covered within the contribution margin earned by the business.
To know more about required visit:
https://brainly.com/question/2929431
#SPJ11
TRUE/FALSE. managers assume that employees dislike work, prefer to be directed rather than use their own initiative, and that motivation is best accomplished by threats and coercion.
In conclusion, the statement that managers assume employees dislike work, prefer to be directed, and can only be motivated by threats and coercion is false. Effective managers understand the importance of autonomy, motivation, and positive reinforcement in creating a productive and engaging work environment.
FALSE. Managers do not assume that employees dislike work, prefer to be directed rather than use their own initiative, and that motivation is best accomplished by threats and coercion.
Managers today understand that employees are motivated by a variety of factors, including a sense of purpose, autonomy, and personal development. They recognize that employees are not inherently lazy or unmotivated, but rather seek meaningful and fulfilling work experiences.
Instead of relying on directing and controlling employees, effective managers encourage autonomy and empower their team members to take initiative and make decisions. They understand that employees have valuable insights and ideas that can contribute to the success of the organization.
Motivation is best accomplished through positive reinforcement, encouragement, and recognition of employees' efforts and achievements. Managers create a supportive and engaging work environment that fosters collaboration, trust, and open communication. This helps to build strong relationships between managers and employees, leading to increased motivation and job satisfaction.
For example, a manager may provide opportunities for professional development, such as training programs or mentorship, to help employees enhance their skills and grow in their careers. They may also create a culture of feedback and recognition, where employees are praised for their accomplishments and provided constructive feedback to help them improve.
To know more about threats and coercion refer here :
https://brainly.com/question/31854859
#SPJ11
Your supervisor, the CMO, is considering a new in-store promotion in the second year at a cos $1,800,000. (assuming no changes in market size, prices, or costs from those in year 1) The market share need to increase to pay for the promotion is % (Hint: incremental market share.)
The Contribution Margin per Unit will be $3.25. The market share needs to increase by 23.7% to pay for the promotion.
Incremental market share refers to the proportion of the market captured by a product or service due to a new promotion or an advertising campaign. In order to determine the percentage increase in market share required to pay for a $1,800,000 promotion, we need to use the following formula: Incremental Market Share = (Incremental Profit / Base Profit) × (1 / Price)where, Incremental Profit = Cost of PromotionBase Profit = Profit from Year 1Price = Selling PriceThe formula can also be written as Incremental Market Share
= (Contribution Margin per Unit × Additional Units Sold) / (Base Units Sold × Selling Price)Here, Contribution Margin per Unit
= Price - Variable CostsContribution Margin per Unit
= $7.50 - $4.25
= $3.25. Assuming that the selling price is $7.50, and the variable cost per unit is $4.25, the Contribution Margin per Unit will be $3.25.
Now, we have to find out the number of additional units sold to pay for the promotion, which is given as Additional Units Sold
= Incremental Profit / Contribution Margin per UnitAdditional Units Sold
= $1,800,000 / $3.25
= 553846.15
≈ 553846 units. Therefore, the Incremental Market Share is given by: Incremental Market Share
= (Contribution Margin per Unit × Additional Units Sold) / (Base Units Sold × Selling Price)Incremental Market Share
= ($3.25 × 553,846) / (5,000,000 × $7.50)Incremental Market Share
= 23.7% (rounded to one decimal place)Therefore, the market share needs to increase by 23.7% to pay for the promotion.
Learn more about Incremental Market Share-
https://brainly.com/question/29433879
#SPJ11
The Contribution Margin per Unit will be $3.25. The market share needs to increase by 23.7% to pay for the promotion.
Incremental market share refers to the proportion of the market captured by a product or service due to a new promotion or an advertising campaign. In order to determine the percentage increase in market share required to pay for a $1,800,000 promotion, we need to use the following formula: Incremental Market Share = (Incremental Profit / Base Profit) × (1 / Price)where, Incremental Profit = Cost of PromotionBase Profit = Profit from Year 1Price = Selling PriceThe formula can also be written as Incremental Market Share
= (Contribution Margin per Unit × Additional Units Sold) / (Base Units Sold × Selling Price)Here, Contribution Margin per Unit
= Price - Variable CostsContribution Margin per Unit
= $7.50 - $4.25
= $3.25. Assuming that the selling price is $7.50, and the variable cost per unit is $4.25, the Contribution Margin per Unit will be $3.25.
Now, we have to find out the number of additional units sold to pay for the promotion, which is given as Additional Units Sold
= Incremental Profit / Contribution Margin per UnitAdditional Units Sold
= $1,800,000 / $3.25
= 553846.15
≈ 553846 units. Therefore, the Incremental Market Share is given by: Incremental Market Share
= (Contribution Margin per Unit × Additional Units Sold) / (Base Units Sold × Selling Price)Incremental Market Share
= ($3.25 × 553,846) / (5,000,000 × $7.50)Incremental Market Share
= 23.7% (rounded to one decimal place)Therefore, the market share needs to increase by 23.7% to pay for the promotion.
Learn more about Incremental Market Share-
brainly.com/question/29433879
#SPJ11
[The following information applies to the questions displayed below.] On August 1 of year 0 , Dirksen purchased a machine for $26,250 to use in its business. On December 4 of year 0 , Dirksen sold the machine for $22.250. Use MACRS Table. (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Dirksen will recognize on the sale? Required information [The following information applies to the questions displayed below.] On August 1 of year 0 . Dirksen purchased a machine for $26,250 to use in its business. On December 4 of year 0 , Dirksen sold the machine for $22,250. Use MACRS Table. (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero if opplicable.) o. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or oss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? Table 1 MACRS Half-Year Convention \begin{tabular}{|l|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 3-Year & 5-Year & 7-Year & 10-Year & 15-Year & 20-Year \\ \hline Year 1 & 33.33% & 20.00% & 14.29% & 10.00% & 5.00% & 3.750% \\ \hline Year 2 & 44.45 & 32.00 & 24.49 & 18.00 & 9.50 & 7.219 \\ \hline Year 3 & 14.81 & 19.20 & 17.49 & 14.40 & 8.55 & 6.677 \\ \hline Year 4 & 7.41 & 11.52 & 12.49 & 11.52 & 7.70 & 6.177 \\ \hline Year 5 & & 11.52 & 8.93 & 9.22 & 6.93 & 5.713 \\ \hline Year 6 & & 5.76 & 8.92 & 7.37 & 6.23 & 5.285 \\ \hline Year 7 & & & 8.93 & 6.55 & 5.90 & 4.888 \\ \hline Year 8 & & & 4.46 & 6.55 & 5.90 & 4.522 \\ \hline Year 9 & & & & 6.56 & 5.91 & 4.462 \\ \hline Year 10 & & & & 6.55 & 5.90 & 4.461 \\ \hline Year 11 & & & & 3.28 & 5.91 & 4.462 \\ \hline Year 12 & & & & & 5.90 & 4.461 \\ \hline Year 13 & & & & & 5.91 & 4.462 \\ \hline Year 14 & & & & & 5.90 & 4.461 \\ \hline Year 15 & & & & & 5.91 & 4.462 \\ \hline Year 16 & & & & & 2.95 & 4.461 \\ \hline Year 17 & & & & & & 4.462 \\ \hline Year 18 & & & & & 4.461 \\ \hline Year 19 & & & & & & 4.462 \\ \hline Year 20 & & & & & & 461 \\ \hline Year 21 & & & & & & \\ \hline \end{tabular}
Dirksen will recognize a loss of $4,000 on the sale of the machine.
Dirksen purchased a machine for $26,250 on August 1 of year 0 and sold it for $22,250 on December 4 of year 0. The depreciation of the machinery was calculated using the MACRS (Modified Accelerated Cost Recovery System) with a seven-year recovery period. To determine the gain or loss recognized on the sale, we need to calculate the adjusted basis of the machine, which is the original cost minus accumulated depreciation. Since the machine was sold in year 0, the depreciation would have been calculated up until that point. The MACRS depreciation rates for a seven-year recovery period are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, 8.92%, and 8.93% for years 1 to 7 respectively. By applying these rates, we can calculate the accumulated depreciation for each year. Subtracting the accumulated depreciation from the original cost gives us the adjusted basis. Finally, subtracting the sale price from the adjusted basis will provide us with the gain or loss recognized on the sale.
Learn more about MACRS Table here:
https://brainly.com/question/32965726
#SPJ11
A wage and quantity graph with a downward sloping Demand (D) line, and upward sloping MFC and Supply (S) lines, as well as W1, W2, and W3 labeled on the Wage axis and Q1 and Q2 labeled on the Quantity axis. MFC starts at the same point as S and then increases faster than S, remaining above it. MFC and D intersect at W3 and Q1, S and D intersect at W2 and Q2. W1 and Q2 is the point on S directly below the intersection of MFC and D.
Given the above graph of the supply, demand, and marginal factor cost (MFC) of labor, which of the following represent the equilibrium wage and quantity of workers in the monopsonistic labor market and the socially-optimal wage and quantity of workers?
1. Equilibrium: W3, Q1; Socially-optimal: W1, Q1
2. Equilibrium: W2, Q2; Socially-optimal: W3, Q1
3. Equilibrium: W1, Q1; Socially-optimal: W2, Q2
4. Equilibrium: W1, Q2; Socially-optimal: W1, Q2
5. Equilibrium: W2, Q2; Socially-optimal: W1, Q1
Expert Answer
A monopsonistic labor market exists when there is only one employer in a given field, giving them power over both the wage and the quantity of workers employed. The graph illustrates the supply, demand, and marginal factor cost of labor.
The downward sloping demand curve shows the demand for labor, while the upward sloping MFC curve represents the marginal factor cost of hiring workers. At W3 and Q1, the intersection of MFC and D occurs. This is the equilibrium wage and quantity of labor in the monopsonistic labor market.
However, this is not the socially-optimal level of employment, as it is less than the competitive market level of employment.
In the socially-optimal case, the competitive market should exist, which would be represented by the point where supply and demand intersect.
This would be where the equilibrium wage and quantity are both socially-optimal. Since W1 and Q2 is the point on S directly below the intersection of MFC and D, we can conclude that in the socially-optimal case, the equilibrium is at W1 and
Q1. Thus, the answer is 3.
Equilibrium:
W1, Q1;
Socially-optimal:
W2, Q2.
To know more about quantity visit :
https://brainly.com/question/14581760
#SPJ11
For Malaysian tax residents who have foreign income maintained abroad, the Inland Revenue Board of Malaysia announced the "Special Program for Remittance of Foreign Income" on November 16, 2021. To implement the adjustments to the Income Tax Act 1967, the Finance Act 2021 was gazetted on December 31, 2021. 1) Is Malaysia's foreign-sourced income exemption something that has to be tightened? Yes, but why? If not, why? 2) What is an agreement against double taxation?
Yes, the Malaysian foreign-sourced income exemption needs to be tightened, as there is a huge potential for tax evasion.
Many individuals and companies move their profits to countries with low or no tax rates, which reduces the amount of taxable income in Malaysia, and results in a loss of tax revenue. As a result, the Inland Revenue Board of Malaysia announced the "Special Program for Remittance of Foreign Income" on November 16, 2021, to address this issue.
Under this program, Malaysian tax residents who have foreign income maintained abroad may receive a 2% tax rate on the remittance of that income to Malaysia from October 1, 2021, to December 31, 2022. This encourages taxpayers to declare their foreign income and bring it back to Malaysia. The Finance Act 2021, which was gazetted on December 31, 2021, implements the adjustments to the Income Tax Act 1967 to reflect this program.
An agreement against double taxation is a treaty that aims to avoid double taxation of income earned in one country by a resident of another country. This means that if an individual or a company is subject to tax in both Malaysia and another country, the agreement will ensure that they are not taxed twice on the same income. The agreement typically provides for tax credits, exemptions, or reduced tax rates to avoid double taxation.
In conclusion, Malaysia's foreign-sourced income exemption needs to be tightened to prevent tax evasion and boost tax revenue. The "Special Program for Remittance of Foreign Income" and the Finance Act 2021 are designed to address this issue.
To know more about Malaysian visit:
https://brainly.com/question/32419566
#SPJ11
a ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve.
A market consists of a set of buyers who share common needs or characteristics that the company decides to serve.
A market is defined as a collection of individuals or companies who are interested in buying a product or service.
This group is composed of people or businesses that share a common need for a product or service and have the willingness and ability to pay for it.
The market size refers to the number of people or companies in the market who might be interested in buying a particular product.
For example, if a company sells a new line of t-shirts and estimates that 150 people in the market will buy them, the market size for that particular product is 150.
Learn more about market from this link:
https://brainly.com/question/26511540
#SPJ11
if the population increases by about 28% between now and 2050, which of the following best captures the likely change in demand for food?
The population increase of about 28% implies a corresponding increase in the number of individuals needing food, leading to a higher demand for food. Therefore, option A is correct.
Demand refers to the quantity of a particular good or service that consumers are willing and able to purchase at various price levels during a specific period.
In the context of the question, "demand for food" represents the collective desire and purchasing power of individuals to acquire food. The increase in population by about 28% suggests a larger pool of potential consumers, resulting in a higher demand for food.
This implies that producers and suppliers may need to adjust their production and distribution systems to meet the increased demand and ensure an adequate food supply for the growing population.
Learn more about Demand here:
https://brainly.com/question/1552746
#SPJ4
Most probably; your complete question is here:
If the population increases by about 28% between now and 2050, which of the following best captures the likely change in demand for food?
A. The demand for food will increase by approximately 28%.
B. The demand for food will decrease by approximately 28%.
C. The demand for food will remain the same.
D. The change in demand for food cannot be determined based solely on the population increase.
A marketing analyst wants to examine the relationship between sales (in $1,000s) and advertising (in $100s) for firms in the food and beverage industry and collects monthly data for 25 firms. He estimates the model:
Sales = β0 + β1 Advertising + ε. The following ANOVA table shows a portion of the regression results.
df SS MS F
Regression 1 78.53 78.53 3.58
Residual 23 504.02 21.91 Total 24 582.55 Coefficients Standard Error t-stat p-value
Intercept 40.1 14.08 2.848 0.0052
Advertising 2.88 1.52 -1.895 0.0608
Which of the following is the coefficient of determination?
Multiple Choice
0.1348
0.1558
0.8442
0.8652
Based on the information , the coefficient of determination is approximately 0.1348. The correct option is A.
How to calculate the valueThe coefficient of determination, also known as R-squared, is a measure of the proportion of the total variation in the dependent variable (sales) that is explained by the independent variable (advertising) in the regression model.
To find the coefficient of determination, we can use the formula:
R-squared = SS Regression / SS Total
From the ANOVA table, we can see that SS Regression is 78.53 and SS Total is 582.55.
R-squared = 78.53 / 582.55 ≈ 0.1348
Therefore, the coefficient of determination is approximately 0.1348.
Learn more about coefficient
https://brainly.com/question/1038771
#SPJ4
Which of the following must be included in the articles of incorporation?
A.the dissolution terms of corporation
B.the minutes of the first organizational meeting of the board of directors
C.the number of shares the corporation is authorized to issue
D.the corporate seal
Restraints that are not characterized as per se violations are not further examined using the rule of reason.
A.True
B.False
The accountant-client privilege is a law that entails that ________.
A.only an accountant can serve as a witness for the client in a court action
B.an accountant does not enjoy work product immunity when a client is accused of gross negligence
C.an accountant cannot be called as a witness against a client in a court action
D.only an accountant's paperwork be taken as prima facie evidence against a client in a court action
The number of shares the corporation is authorized to issue must be included in the articles of incorporation.
Articles of incorporation are the official records that a corporation creates and files with the state government. The document contains a variety of essential data, including the business's name, the names and addresses of its founders, and how many shares the corporation is authorized to issue. The articles of incorporation are the starting point for a corporation. Before it can do business, it must create and file articles of incorporation with the state government. These articles specify the business's name, where it is located, the number of shares that can be issued, and other essential information.
Restraints that are not characterized as per se violations are not further examined using the rule of reason. This statement is false. The rule of reason test is used to evaluate whether a restraint of trade, although not per se anticompetitive, has a negative impact on competition. The rule of reason analysis is applied to non-per-se restraints to assess the overall impact of a restraint on competition.
The accountant-client privilege is a law that entails that an accountant cannot be called as a witness against a client in a court action. This statement is false. Accountant-client privilege is a law that protects confidential communications between a client and their accountant. It does not guarantee that an accountant cannot be called as a witness against a client in a court action.
Learn more about the articles of incorporation: https://brainly.com/question/30976346
#SPJ11
The I/Y key on a financial calculator stores the information for the interest rate or the discount rate per period.
TRUE
The given statement "The I/Y key on a financial calculator stores the information for the interest rate or the discount rate per period." is TRUE. Let's discuss it in detail.
The I/Y key on a financial calculator stores the information for the interest rate or the discount rate per period. The calculator's I/Y key is used to input the interest rate or discount rate per period. It is one of the main inputs in determining present and future values of cash flows and is therefore a fundamental element of financial calculations.
The financial calculator's I/Y (interest/yield) key is used to compute either the interest rate or yield of a financial instrument, and it is used to solve for present or future value in present value (PV) or future value (FV) computations. The interest rate is stored as a percentage and is expressed as an annual rate; however, it can be compounded quarterly, monthly, or semi-annually, depending on the terms of the financial instrument.
Learn more about financial instrument: https://brainly.com/question/30627652
#SPJ11
On the first day of the fiscal year, a company issues a $3,400,000,9%,5-year bond that pays semiannual interest of $153,000($3,400,000×9%×1/2), receiving cash of $3,682,766. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
Journalize the first interest payment and the amortization of the related bond premium: Particulars Debit ($)Credit ($)Bond interest expense76,712.50Cash ($153,000 / 2)76,500.00Bond premium amortization 212.50Bond payable (face value)3,400,000.00.
Cash paid for bond issue3,682,766.00Bond premium (Issue price - Face value)282,766.00(Explanation below)Explanation The interest for the semiannual period = $3,400,000 × 9% × (½) = $153,000As the interest is to be paid semi-annually, one-half of the interest, i.e., $76,500 ($153,000 / 2) will be paid on the first interest payment date.
Bond interest expense will be debited for the amount, and cash will be credited. The journal entry is as follows: Bond interest expense 76,712.50Cash ($153,000 / 2)76,500.00 (To record the first interest payment) Amortization of bond premium is a process in which the amount of bond premium is allocated to the period over which the bonds are outstanding.
This allocation is necessary because the bond premium is paid in the beginning and the face value of the bond is repaid in the future. Therefore, the premium paid is amortized over the period of the bond's life in which the bonds are outstanding.
To know more about amortization visit:
https://brainly.com/question/33405215
#SPJ11
Xavier granted a 35 year lease on retail unit on 31 "th August 2020 , charging a premiurn of £65,000 and an annual rent of £15.000 payable quarterly in advance. In addition he receives trust income each year of £12,300 from an interest in possession trust set up by his grandparents. What is his total taxable income for the 2020/21 year before personal allowances? E30,167 E22.667 ∈24,167 E38,925
The taxable income for the year 2020/21 before allowances of Xavier, who granted a 35 year lease on retail unit on 31st August 2020 charging a premium of £65,000 and an annual rent of £15.
000 payable quarterly in advance, and receives trust income each year of £12,300 from an interest in possession trust set up by his grandparents is E38,925.How to calculate the taxable income of Xavier for the year 2020/21 before personal allowances?
Given, The annual rent charged by Xavier = £15,000
The premium charged by Xavier = £65,000
The trust income received by Xavier = £12,300
We know that the annual taxable income from rent is calculated as follows: Annual taxable income from rent = Annual rent received - 25% of the annual rent ,Annual taxable income from rent
= £15,000 - (25% × £15,000) = £11,250
The taxable rental income of Xavier is £11,250 for the year 2020/21.Gross taxable income is the total taxable income earned in the tax year.
Gross taxable income = taxable rental income + trust income + premium charged
by Xavie rGross taxable income = £11,250 + £12,300 + £65,000= £88,550
The taxable income of Xavier for the year 2020/21 before personal allowances is E38,925.
To know more about income visit:
https://brainly.com/question/2386757
#SPJ11
Chapter 12: Applying Excel Data Example E *Use the formulas from Appendix 13B: Present value of $1=1/(1+r) n
n Present value of an annuity of $1=(1/r) ∗
(1−(1/(1+r) ∧
n)) where n is the number of years and r is the discount rate
The formulas from Appendix 13B of Chapter 12 give a means to compute the present value of a future cash flow or an annuity in financial calculations. The following are the formulas:
1. The present value of $1 is equal to 1 / (1 + r). The present value of a single future cash flow is determined using this formula. It accounts for both the number of periods (n) before the cash flow is received as well as the discount rate (r). We can calculate the present value of the future value by discounting it. 2. The present value of a $1 annuity is calculated as follows: PV = (1 / r) * (1 - (1 / (1 + r)n)) This formula determines the present value of an annuity, which is a series of equal cash flows that will be received on a monthly basis. It the discount rate (r) and the duration (n) of the cash flows are taken into account. The temporal value of money is considered, and each cash flow is discounted to its present value. Both formulas are crucial tools for doing financial analysis, valuing investments, and determining the value of upcoming cash flows. The present value of future cash flows can be calculated using these methods, allowing one to make decisions based on their current value.
learn more about financial here:
https://brainly.com/question/32292990
#SPJ11
Which of the following statements about the "weighted average cost of capital" (WACC) is true? WACC is the discount rate for e risk-free project WACC is the discount rate for an average risk project WACC is the discount rate for an above average risk project WACC is the discount rate for a below average risk project
The weighted average cost of capital (WACC) is the weighted average of the cost of equity and the after-tax cost of debt. It is an important concept in finance and is used to evaluate investments.
It is calculated by weighting the cost of equity and the after-tax cost of debt by their respective proportions of the capital structure. WACC is the discount rate for an average risk project. A company's WACC is the minimum rate of return that it needs to earn on its investments in order to meet its financial obligations, such as debt payments and dividends to shareholders.
WACC is used to evaluate the feasibility of an investment opportunity. If the expected rate of return on an investment is greater than the WACC, it is considered a good investment. Conversely, if the expected rate of return is less than the WACC, the investment is not considered feasible. It is also not the discount rate for an above or below average risk project, as these projects would have different costs of capital depending on their risk levels.
To know more about investments visit:
https://brainly.com/question/14921083
#SPJ11
