Summary: If the Fed keeps the money supply constant, the price level will decrease, and nominal GDP will remain unchanged.
Based on the given information, we have the following data:
Money supply (M) = $400 billion
Nominal GDP (Y) = $12 trillion
Real GDP (Y) = $4 trillion
Price level (P) = ?
Velocity of money (V) = ?
To find the price level, we can use the quantity equation: M * V = P * Y
Given that velocity (V) is constant and the economy's output (Y) rises by 5 percent each year, we can assume that the percentage change in Y is 5%. We can rewrite the quantity equation in terms of percentage changes:
(Percentage Change in M) + (Percentage Change in V) = (Percentage Change in P) + (Percentage Change in Y)
Since the velocity is assumed to be constant, the percentage change in V is 0. Therefore, the equation becomes:
(Percentage Change in M) = (Percentage Change in P) + 5%
Now let's analyze the questions:
1. If the Fed keeps the money supply constant, the price level will _____, and nominal GDP will _____.
The Fed keeping the money supply constant means that the percentage change in M is 0%. According to the equation above, this would result in the percentage change in P being -5% (negative 5%) to offset the 5% increase in Y. Therefore, the price level will decrease, and nominal GDP will remain unchanged.
2. True or False: If the Fed wants to keep the price level stable instead, it should increase the money supply by 5% next year.
False. If the Fed wants to keep the price level stable, it needs to offset the 5% increase in Y. As shown in the equation, the percentage change in M would need to be -5% (negative 5%) to counterbalance the increase in Y.
3. If the Fed wants an inflation rate of 8 percent instead, it should _____ the money supply by _____.
To achieve an inflation rate of 8%, the Fed needs to increase the price level accordingly. Assuming the velocity remains constant, the equation tells us that the percentage change in M should be 3% (8% - 5%) to achieve the desired inflation rate.
In summary:
1. If the Fed keeps the money supply constant, the price level will decrease, and nominal GDP will remain unchanged.
2. False. To keep the price level stable, the Fed needs to decrease the money supply by 5%.
3. The Fed should increase the money supply by 3% to achieve an inflation rate of 8%.
Learn more about money supply constant here:
https://brainly.com/question/30667471
#SPJ11
Your project depends on a key deliverable from a vendor you've used several times before with great success. You're expecting the vendor to finish ahead of their schedule commitment as they usually do. This is an example of .... a) an assumption b) a requirement c) a constraint d) an objective
The given scenario is an example of an assumption. An assumption can be defined as an aspect of the project that is considered to be true but has not yet been confirmed. It is something that is believed to be true in the absence of any evidence or proof.
The scenario provided above states that the project is reliant on a key deliverable from a vendor that the organization has worked with before, and it has always delivered on time. It is the belief of the project manager that this will be the case in this instance as well.
A requirement is a condition or capability that is necessary to satisfy the needs of the project stakeholders. It describes the characteristics that must be present in a product, service, or result to meet the needs of the customer. Constraint: A constraint is a limitation or restriction that is imposed on the project
. It can be due to a number of factors, such as resource availability, time, budget, and technical limitations. Objective: An objective is a specific, measurable, achievable, relevant, and time-bound outcome that the project aims to achieve. It is a result that the project is expected to produce.
To know more about assumption visit:
https://brainly.com/question/30799033
#SPJ11
Partex Ltd. is considering the purchase of new laser technology. The equipment can be purchased for $500,000 and is expected to last 5 years. At the end of its life, the machine can be sold for scrap parts and should generate $50,000 in revenue. Partex has also been advised that the service contract on the new equipment will cost $2,000 per month. If Partex decides not to undertake the service contract, there will not be any warranty on the new equipment.
Another option is to lease the new equipment for $12,500 per month; no other cost is incurred, as the lease includes the service contract.
If Partex can earn 8%, compounded annually, would it be better to buy or to lease? Use present value to evaluate each option, since this would represent today’s value of each option to Partex, and the option with the lowest present value will represent the least cost to the company.
Leasing the new laser equipment would be the better option for Partex Ltd. compared to purchasing it. The present value evaluation shows that leasing results in a lower cost to the company.
To determine the present value, we need to consider the cash flows for each option. For the purchase option, the initial cost is $500,000, and there is a salvage value of $50,000 at the end of 5 years. Additionally, the service contract would cost $2,000 per month for 60 months. By discounting these cash flows at the rate of 8% compounded annually, we calculate the present value.
On the other hand, the lease option has a fixed monthly payment of $12,500, which already includes the service contract. We calculate the present value of 60 monthly lease payments using the same discount rate.
Comparing the present values of both options, we find that the leasing option has a lower present value, indicating a lower cost to Partex Ltd. Therefore, leasing the equipment would be the more cost-effective choice for the company.
By opting for the lease, Partex Ltd. can avoid the high upfront cost of purchasing the equipment and the ongoing service contract expense. The lease payment already covers the service contract, providing convenience and predictability in terms of cost. Furthermore, by leasing, Partex Ltd. can potentially upgrade to newer laser technology after the lease term ends, allowing them to stay up-to-date with advancements in the industry.
To learn more about salvage value visit: brainly.com/question/28387066
#SPJ11
Consider a market with only two firms. The firms operate in a Stackelberg type market where Firm 1 is the leader \& Firm 2 is the follower. The market inverse demand function is: P=210−3Q, where Q =q1+q2. Each firm has a similar cost structure with a marginal cost; MC=27, though each have different fixed costs; FC1=60&FC2=90. Answer the following questions (25pts) : a. If both firms wish to compete, what is the optimal quantity for each firm ( q i
) and the market price (10pts) ? b. What are the profits for each firm from the strategy in part a (5 pts)? c. If both firms choose to collude and not directly compete, what is the new price, quantity, and profits for each firm (10 pts)?
Thus, [tex]27 = d(TC)/dQi = d(FC + VC)/dQi = d(FC)/dQi + d(VC)/dQi = 0 + d(VC)/dQi[/tex].
Thus, [tex]d(VC)/dQi = 27[/tex]. Since the firms have a similar cost structure, both the firms' optimal quantity will be the same[tex], i.e., q1 = q2 = q*.[/tex]
In a competitive market, marginal revenue (MR) = Marginal Cost (MC).Therefore,[tex]MR= d(PQ)/dQ = 210 - 6Q[/tex]. Similarly, Firm 2 will take Q1 as given and determine Q2 by maximizing its profit, i.e.,[tex]d(π2)/dQ2 = 210 - 6Q1 - 6Q2 - 27 = 183 - 6Q1 - 6Q2 = 0. Thus, Q2 = (183 - 6Q1)/6[/tex]. Market demand is the sum of quantities supplied by both the firms.
If both firms collude, they will act as a single monopolist and determine the profit-maximizing quantity by equating MR with MC. Since the firms have similar cost structures, the monopolist quantity will be evenly divided between them. [tex]Thus, Q* = 183/12. Therefore, Q1* = Q2* = 183/24 = 15.25.[/tex]
To know more about firms visit:
https://brainly.com/question/31687318
#SPJ11
Activity: Choose a recent piece of research that you have read and analyze it against the frameworks provided in this chapter. What strengths do you see in the research in the light of this chapter? What weaknesses are highlighted? How does this leave the conclusions that you can draw from the research? As a scholar or scholar-practitioner, what could you do to improve the research? As a practitioner or scholar-practitioner, what could you apply with conviction having analyzed the research?
Chapter 2: Researching coaching and mentoring
Chapter 2 will help to understand the following concepts: This chapter examines the research terrain in coaching and mentoring. It examines the various challenges with conducting coaching and mentoring research and provides an overview of the various approaches and methodologies used in the field, as well as explores how the terrain has shifted over time. The various approaches are examined using a theories of truth paradigm, which, by using case studies, makes it possible to draw some conclusions about coaching andmentoring research for now and for the future.
The article chosen is titled “Coach–Athlete Relationship and Athlete Satisfaction: Importance of Organizational Culture” by Millar, Lavallee and Gordon (2013). In this article, the authors examine the relationship between coaches and athletes, with a particular emphasis on the impact of organizational culture on athlete satisfaction.
They used an exploratory methodology, gathering data from a diverse range of sports, and utilized both quantitative and qualitative data to evaluate their findings. The study's strengths can be summarized in the following points: Strengths:
1. The use of both qualitative and quantitative data to assess the coach-athlete relationship and athlete satisfaction, which increases the validity and reliability of the study's findings.
2. The article's findings reveal that organizational culture is a crucial factor in determining athlete satisfaction, which emphasizes the importance of understanding the cultural context in which coaching takes place.
3. The research provides practical implications for coaches and sports organizations to enhance athlete satisfaction and improve their relationships with athletes.
However, there are some weaknesses in the study as well, such as: Weaknesses:1. The study's sample size was small, which may limit the generalizability of the results.2. The researchers did not evaluate the impact of other variables on the coach-athlete relationship and athlete satisfaction.3. The study's cross-sectional nature makes it challenging to determine causality between organizational culture and athlete satisfaction.
Overall, this research highlights the significance of organizational culture on athlete satisfaction and provides practical recommendations for coaches and sports organizations to enhance this relationship. As a scholar-practitioner, there are several steps that could be taken to improve this research:
To know more about Relationship visit:
https://brainly.com/question/33265151
#SPJ11
Mom and Pop Groceries has just dispatched a year's supply of groceries to the government of the Central Antarctic Republic. Payment of $220,000 will be made one year hence after the shipment arrives by snow train. Unfortunately, there is a good chance of a coup d'état in which case the new government will not pay. Mom and Pop's controller therefore decides to discount the payment at 50%, rather than at the company's 12% cost of capital. a. Is it proper to use 40% as the discount rate in this situation? No Yes b. How much is the $220,000 payment really worth if the odds of a coup d'état are 25% ? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a) Is it proper to use 40% as the discount rate in this situation?
No. It is not appropriate to use 40% as the discount rate in this scenario. This is due to the fact that the company's cost of capital is 12%, which is substantially less than 40%.
It's worth noting that the use of an inappropriate discount rate can affect the net present value of future cash flows, which may lead to flawed decisions.
Because a firm's cost of capital is frequently utilized as the discount rate, a discount rate of 40% may result in a higher present value (PV) and therefore an increased perceived value of the cash flows.
b) How much is the 220,000 payment really worth if the odds of a coup d'état are 25%?
The formula for calculating the present value of cash flows is:
PV = FV / (1 + r) n
Where,
FV = Future value of cash flows.
r = discount rate.
n = number of years For a single payment in one year's time, the PV can be calculated as:
PV = 220000 / (1 + 0.5) = 146,666.67
The probability of a coup d'état not occurring is 1 - 0.25 = 0.75.
If the probability of a coup d'état not occurring is 75%,
then the expected present value of the payment is:
Expected present value = 0.75 * 146666.67 = 110,000.00.
if the odds of a coup d'état are 25%, the 220,000 payment is worth 110,000.00.
To know more about substantially visit :
https://brainly.com/question/28341879
#SPJ11
Free cash flow, whether a huge corporation or a solo entrepreneur's business, is one of the fundamental things people look at. What can the show Shark Tank teach people about running a business?
Free cash flow is the cash a company produces through its operations after accounting for any investment in its fixed assets. The most successful entrepreneurs have the ability to make the most out of their free cash flow.
Entrepreneurs who have been successful on Shark Tank have a wealth of business advice that people can apply to their own companies to get more out of their free cash flow.Shark Tank is a business-oriented reality television show that provides entrepreneurs with a chance to pitch their ideas to a group of investors. The Sharks, or investors, then decide whether or not to invest in the business and, if so, at what price.
The show is a great source of inspiration for aspiring entrepreneurs, as it demonstrates how to present a business plan and how to use the free cash flow to grow the business.As we watch entrepreneurs come on the show and pitch their ideas to the investors, we learn that having a solid business plan is crucial.
Before investing in a company, investors like to see that there is a clear plan in place for how the company will use the free cash flow that they receive. It's critical to understand the company's financial statements, particularly its balance sheet and cash flow statement.
To know more about entrepreneurs visit:
https://brainly.com/question/31010585
#SPJ11
complete the cost schedule below. when computing the cost per unit, round to two decimal places. round all other values to the nearest dollar. toys produced 88,400 109,200 142,800 total costs: total variable costs $33,592 d. $fill in the blank 1 j. $fill in the blank 2 total fixed costs 37,128 e. fill in the blank 3 k. fill in the blank 4 total costs $70,720 f. $fill in the blank 5 l. $fill in the blank 6 cost per unit: variable cost per unit a. $fill in the blank 7 g. $fill in the blank 8 m. $fill in the blank 9 fixed cost per unit b. fill in the blank 10 h. fill in the blank 11 n. fill in the blank 12 total cost per unit c. $fill in the blank 13 i. $fill in the blank 14 o. $fill in the blank 15
As opposed to variable costs, which do alter with production level, fixed costs are expenses that remain constant throughout time. The sum of the fixed and variable costs is the total cost. By dividing the overall cost by the quantity generated, the cost per unit is obtained.
The completed cost schedule is as follows:
Toys produced: 88,400 109,200 142,800
Total costs:
Total variable costs: $33,592 $41,184 $53,568
Total fixed costs: $37,128 $37,128 $37,128
Total costs: $70,720 $78,312 $90,696
Cost per unit:
Variable cost per unit: $0.38 $0.38 $0.38
Fixed cost per unit: $0.42 $0.34 $0.26
Total cost per unit: $0.80 $0.72 $0.64
Learn more about on Variable cost, here:
https://brainly.com/question/31811001
#SPJ4
1. saxon corporation received cash from rob huggins for 60 shares of $100.00 par value preferred stock at $100 per share. what is the journal entry to record the transaction?
The journal entry to record the transaction of Saxon Corporation received computer equipment at an agreed-upon value of $4,000 for 40 shares of $100 par value common stock is Debit Office Equipment $,4000 and credit Capital Stock - Common $4,000.
A journal entry is the act of keeping or producing records of any economic or non-economic transaction. An accounting journal, which shows a company's debit and credit balances, records transactions. The journal entry can be made up of multiple records, each of which is either a debit or a credit. Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.
Journal entries can capture one-time events or ongoing events like depreciation or bond amortisation. Journal entries are frequently entered in a different module from accounts payable, which normally has its own subledger that affects the main ledger indirectly.
Learn more about journal, here:
https://brainly.com/question/33438461
#SPJ4
Which of the following types of software is best suited for tasks that are unique to a
particular business?
A) collaborative
B) custom
C) groupware
D) packaged
E) ready-made application
Answer: B
Correct, the best suited type of software for tasks that are unique to a particular business is custom software (option B).
Custom software refers to software that is specifically developed or tailored to meet the unique requirements and needs of a particular business. It is designed and built from scratch, taking into account the specific processes, workflows, and functionalities of the business. Custom software provides the flexibility to address the specific challenges and requirements of the business, offering a highly customized and tailored solution. This type of software is often developed by a team of software developers or hired professionals who work closely with the business to understand its unique needs and build a solution accordingly. In contrast, other options like collaborative software, groupware, packaged software, or ready-made applications are more generic and may not offer the same level of customization and fit for a specific business's unique tasks.
learn more about custom software here:
https://brainly.com/question/32384151
#SPJ11
Which of the following are input into the "Define Scope"
process?
a) The Scope Statement
b) The WBS
c) Status Reports
d) The project charter
The correct inputs for the "Define Scope" process are the Scope Statement, the WBS, and the project charter. (Option A, B and D).
What is Define Scope Process?The "Define Scope" procedure, which is a component of project management, entails precisely defining and recording the project's parameters, deliverables, and goals. It is an important project planning stage that lays the groundwork for all following project operations.
Establishing a shared understanding among stakeholders about what is included and excluded from the project is the main objective of the Define Scope procedure. It aids in preventing scope creep, which is the unchecked expansion of a project's scope over its intended boundaries.
Learn more about Define Scope Process here: https://brainly.com/question/30301515
#SPJ4
Suppose that you are in an economy with reserve requirements are equal to 12%, and cash drain is equal to 7%. One bank in this economy now recieves an addition $300 of new deposits. What is the total quantity of new bank desposits that this will generate across the entire banking system (in dollars)? Note: round all answers to two decimal places. Do not include currency signs in your answer.
Reserve requirement:The minimum amount of money that a commercial bank is required to keep in reserves either in their vaults or with the central bank is known as the reserve requirement. As a result, if the reserve requirement is 12%, the bank must keep 12% of its deposits in reserve.
The remainder is referred to as the bank's excess reserve. Cash drain: Cash drain is the proportion of cash balances that customers withdraw from their accounts on a daily basis. This might include withdrawals for everyday costs, such as groceries or fuel.According to the problem, reserve requirements are equal to 12%, and cash drain is equal to 7%. One bank in this economy now receives an additional $300 of new deposits.Let's see how the bank's balance sheet will be affected by this:Assets Liabilities + Owner's Equity Reserves $36.00 ($300 * 0.12) Demand deposits $300.00 Excess Reserves $264.00 ($300 * 0.88).
The amount of new loans that can be created is $264.00.The $264 will be deposited in another bank, which will follow the same process, except that the $264.00 will be used to calculate the reserve requirement. The bank that gets the deposit will keep $31.68 ($264.00 * 0.12) and lend out $232.32 ($264.00 * 0.88).The process continues, and the amount of money that can be created is as follows:New Deposits = $300 + $232.32 + $179.81 + $139.77 + ...= $1,300.88.Therefore, the total quantity of new bank deposits that this will generate across the entire banking system is $1,300.88 in dollars.
To know more about commercial visit:
https://brainly.com/question/19624586
#SPJ11
The master budget at Monroe Manufacturing last period called for sales of 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units. The selling price was $56 per unit. Variable costs were $43 per unit. Actual fixed costs were $530,000.
Required:
Prepare a flexible budget for Monroe Manufacturing.
The flexible budget is a budget which is flexible, i.e. it is a budget that can be adjusted or changed as required. The main purpose of the flexible budget is to provide management with the ability to respond quickly to changing conditions and to adjust the budget to take into account changing circumstances.
The flexible budget is used to help management to plan, monitor, and control operations. A flexible budget is a budget that is adjusted to reflect changes in production levels or other changes that may occur during the year. It is based on the assumption that costs will change as production changes.
Therefore, a flexible budget is more realistic than a fixed budget because it reflects the actual production levels. The flexible budget for Monroe Manufacturing is given below: Flexible Budget (Units)Flexible Budget ($)Sales (46,500 units x $56)$2,604,000Variable costs (46,500 units x $43)$1,999,500Fixed costs$530,000.
Total costs$2,529,500Net income$74,500Explanation:Given that the master budget called for sales of 43,500 units at $57 each. The costs were estimated to be $41 variable per unit and $539,000 fixed. During the period, actual production and actual sales were 46,500 units.
To know more about circumstances visit:
https://brainly.com/question/32311280
#SPJ11
Which of the following cases is a transaction motive for holding money? you sell a painting because you are worried that may have to sell it at a lower price in the future you keep a $50 in the glove compartment of your car just in case of an emergency break down you sell stock for cash because you are worried that its value might change you go to the shopping mall with a large sum of money to complete your holiday shopping
Transaction motive is one of the important reasons for holding money. It is a situation when an individual holds money in cash or bank deposits to facilitate the day-to-day business transactions that are essential for life. Transactions motive arises as a need to carry out transactions in the economy.
Here are the four cases and their relevance to the transaction motive for holding money:
You sell a painting because you are worried that may have to sell it at a lower price in the future - This is not the transaction motive for holding money. In this case, the person is selling the painting to avoid the potential loss in value, and it does not relate to a day-to-day transaction. You keep a $50 in the glove compartment of your car just in case of an emergency break down - This is a transaction motive for holding money.
In this case, the person is holding money to facilitate emergency purchases of any kind if their car breaks down. You sell stock for cash because you are worried that its value might change - This is not a transaction motive for holding money. In this case, the person is selling the stock to avoid any potential changes in the stock's value and not to facilitate a day-to-day transaction.
In this case, the person is holding money to purchase items that are essential for life and not to avoid the loss of value. The shopping is an important day-to-day transaction and the money held by the individual facilitates the transaction. Therefore, option D - You go to the shopping mall with a large sum of money to complete your holiday shopping, is the case that represents the transaction motive for holding money.
To know more about situation visit :
https://brainly.com/question/14501632
#SPJ11
You purchased a $1,000 bond with a coupon rate of 6 % on January 1, 2021 for $910. On the same date you also purchased a share of ABC Inc for $85. During 2021 you received a dividend of $2.35 on the ABC share. It is now January 1, 2022 and the bond is selling for $980 and the ABC share is worth $90.
Required, round all answers to two decimal points. Show all calculations in the space provided below or submit your calculations to the Drop Box in the Assignments area:
What was your total dollar return on the bond over the past year? (2 marks)
What was your total nominal return on the bond over the past year? (2 marks)
If the inflation rate last year was 4 %, what was your total real rate of return on the bond? (2 marks)
Compute the total percentage return on the ABC share. (2 marks)
What was the dividend yield on the ABC share. (2 marks)
What was the capital gain yield on the ABC share.
1. Total dollar return on bond= $960 – $910 = $50.
2. Nominal return = $60/$910 = 6.59%.
3. Inflation rate= 4%. Real return on bond= (1 + 0.0659) / (1 + 0.04) – 1 = 2.47%.
4. Total return on ABC share = ($90 – $85) + $2.35 = $7.35. Percent return = $7.35/$85 × 100 = 8.65%.
5. Dividend yield = $2.35/$85 × 100 = 2.76%.
6. Capital gain yield = ($90 – $85) / $85 × 100 = 5.88%.
To know more about Real return on bond visit:
https://brainly.com/question/33254996.
#SPJ11
Bonita industries has the following current assets and liabilities on the company's balance sheet: Cash $22000; Accounts Receivable $8000 : Inventory $54000; Prepaid Rent $3500; Accounts Payable \$18000; Long-Term Notes Payable $21000 and Unearned Revenue $6000. The company's acid-test ratio would be 1.25:1 1,94:1 1.20:1 0.56:1
The acid-test ratio of Bonita industries would be 0.56:1. How to calculate acid-test ratio? Acid-test ratio is also known as a quick ratio, which is a formula that measures a company's liquidity. This ratio calculates the ability of a company to pay its current liabilities with quick assets (assets that can be quickly converted into cash).
The formula for the acid-test ratio is: Acid-Test Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
Calculation of Acid-test ratio of Bonita industries:
Here are the current assets of Bonita industries, which are liquid:
Cash $22000, Accounts Receivable $8000, and Quick Inventory $54000
The sum of all liquid assets = $22000 + $8000 + $54000 = $84000
The current liabilities are as follows:
Accounts Payable $18000, Unearned Revenue $6000
The total current liabilities = $18000 + $6000 = $24000.
Now, let's use the formula to calculate the acid-test ratio of Bonita industries:
Acid-Test Ratio = (Cash + Accounts Receivable + Quick Inventory) / Current Liabilities= ($22,000 + $8,000 + $54,000) /
$24,000= $84,000 / $24,000= 3.5
The acid-test ratio is 3.5:1. This result means that the company can meet its current liabilities 3.5 times over with its quick assets. But this answer is incorrect. Because Quick inventory may not be 100% liquid, so we cannot count it entirely as part of the company's quick assets. For this reason, we subtract the inventory from the current ratio to obtain the acid-test ratio.
So, The company's acid-test ratio would be 0.56:1.
Hence, Option (d) is the correct answer.
Note: An acid-test ratio of 1:1 indicates that the company's quick assets are sufficient to cover its current liabilities.
To know more about liquidity visit :-
https://brainly.com/question/20922015
#SPJ11
Trusler Company has always done some planning for the future, but the company has never Prepared a formal budget.
Now that the company is growing larger, it is considering preparing a budget.
Instructions: Write a memo to Jim Dixon, the president of Inusler Company, where it is requested to:
1- Identify the overall budget that comprise the master budget,
2- Identify the primary benefits of budgeting,
3- Discuss the essentials of effective budgeting.
The overall budget that comprises the master budget includes various interconnected components.
Memo
To: Jim Dixon, President of Trusler Company
From: [Your Name]
Date: [Date]
Subject: Request for Budget Preparation and Essentials of Effective Budgeting
Dear Jim,
I hope this memo finds you well. As Trusler Company continues to grow, it is essential for us to adopt a more structured approach to financial planning. In light of this, I would like to propose the preparation of a formal budget to support our future operations and decision-making processes. Below, I have outlined the key points regarding budgeting that I believe will benefit our organization:
1. Overall Budget Comprising the Master Budget:
The master budget is an integral part of the overall budgeting process. It encompasses several interconnected budgets, including the operating budget, financial budget, and capital budget. These budgets collectively provide a comprehensive financial plan for our organization and enable us to align our resources with our strategic goals.
2. Primary Benefits of Budgeting:
a. Financial Planning and Control: Budgeting helps us forecast and plan our financial resources, enabling better control over costs, revenue, and cash flows. It allows us to allocate resources efficiently and make informed decisions.
b. Performance Evaluation: By comparing actual results with budgeted figures, we can assess our performance, identify variances, and take corrective actions if necessary. This evaluation process promotes accountability and drives continuous improvement.
c. Goal Setting and Communication: Budgeting facilitates the setting of realistic and achievable goals. It serves as a communication tool, aligning various departments and individuals towards common objectives and fostering collaboration.
3. Essentials of Effective Budgeting:
a. Involvement and Participation: Effective budgeting requires active involvement and participation from all relevant stakeholders. Input from managers, employees, and key decision-makers ensures a comprehensive and realistic budget.
b. Accuracy and Realism: Budgets should be based on accurate and reliable data, taking into account historical information, market trends, and future projections. Realistic assumptions and achievable targets are essential to maintain credibility and motivation.
c. Monitoring and Flexibility: Continuous monitoring of actual performance against budgeted figures is crucial. Variances should be analyzed promptly, and adjustments made as needed. Flexibility within the budget allows us to adapt to changing circumstances and seize new opportunities.
d. Communication and Transparency: Clear communication channels and transparency throughout the budgeting process foster understanding, cooperation, and buy-in from all stakeholders. Regular updates and feedback sessions ensure that everyone is aligned and informed.
I believe that implementing a formal budgeting process will provide us with valuable insights and help drive our success as we continue to grow. I am happy to further discuss the details and benefits of budgeting at your convenience.
Thank you for considering this proposal. I look forward to your feedback and guidance.
Sincerely,
[Your Name]
Learn more about effective budgeting from the given link:
https://brainly.com/question/30190326
#SPJ11
Indicate whether each phrase is more descriptive of financial accounting or managerial accounting.(a) May be subjectiveFinancial accountingManagerial accounting(b) Often used to obtain financingFinancial accountingManagerial accounting(c) Typically prepared quarterly or annuallyFinancial accountingManagerial accounting(d) May measure time or customer satisfactionFinancial accountingManagerial accounting(e) Future orientedFinancial accountingManagerial accounting(f) Has a greater emphasis on cost-benefit analysisFinancial accountingManagerial accounting(g) Keeps records of assets and liabilitiesFinancial accountingManagerial accounting(h) Highly aggregated statementsFinancial accountingManagerial accounting(i) Must conform to external standardsFinancial accountingManagerial accounting(j) Special-purpose reportsFinancial accountingManagerial accounting(k) Decision-making toolFinancial accountingManagerial accounting(l) Income statement, balance sheet, and statement of cash flowsFinancial accountingManagerial accounting
(a) May be subjective - Managerial accounting
(b) Often used to obtain financing - Financial accounting
(c) Typically prepared quarterly or annually - Financial accounting
(d) May measure time or customer satisfaction - Managerial accounting
(e) Future oriented - Managerial accounting
(f) Has a greater emphasis on cost-benefit analysis - Managerial accounting
(g) Keeps records of assets and liabilities - Financial accounting
(h) Highly aggregated statements - Financial accounting
(i) Must conform to external standards - Financial accounting
(j) Special-purpose reports - Managerial accounting
(k) Decision-making tool - Managerial accounting
(l) Income statement, balance sheet, and statement of cash flows - Financial accounting.
What is the distinction between financial accounting and managerial accounting?Financial accounting focuses on recording, summarizing and reporting financial transactions and information for external stakeholders such as investors, creditors, and regulatory bodies.
Managerial accounting is concerned with providing financial information and analysis to internal users such as managers and executives, to support decision-making and internal control.
Read more about accounting
brainly.com/question/26690519
#SPJ4
You are asked to analyse a contemporary and in future magnifying change in an international supply chain context that demonstrates the importance of sustainability. Select a case of sustainability opportunities in a global supply chain, and use that case to explain best practices and critical aspects of either • sourcing strategy or • supplier selection. The task requires you to apply the evidence (data and theory implications) to making informed judgements about the contemporary developments of the industry and market dynamics in question. Students should acknowledge theory, secondary data and qualitative case evidence alike. The notion of an applied literature review here is that you use journal articles, secondary data and complementary trade journals and company reports for the purposes of an industry-level analysis. Explicitly choose one specific country and one specific industry to demonstrate your arguments.
Sustainability in supply chain refers to practices that consider the impact of environmental, social and economic factors in global supply chain networks, processes, and systems. Sustainability has emerged as an important concern in international supply chain management.
The purpose of this question is to examine a contemporary and magnifying change in international supply chain context that demonstrates the importance of sustainability.
Best practices and critical aspects of either sourcing strategy or supplier selection should be used to explain a case of sustainability opportunities in a global supply chain.
The textile and clothing industry in Bangladesh is an example of a case of sustainability opportunities in a global supply chain. Bangladesh has emerged as a leading textile and clothing exporting country to Europe and North America.
Despite several challenges, such as poor infrastructure, weak governance, low labour standards, and sub-standard environmental practices, Bangladesh has successfully developed a competitive advantage in textile and clothing exports.
The industry is the largest employment provider in Bangladesh, with over 4 million workers, most of whom are women. Textile and clothing exports account for over 80% of Bangladesh's total export earnings.
The Bangladesh textile and clothing industry's most significant sustainability challenge is to balance economic, environmental, and social objectives. Several initiatives have been taken to address these challenges. For example, suppliers are increasingly incorporating environmental and social standards into their sourcing strategies.
Companies like Primark and H&M are leading the way in promoting ethical and sustainable production in Bangladesh. They have developed supply chain management systems that consider social, environmental, and ethical concerns.
Furthermore, trade unions and worker rights groups are actively advocating for better labour standards and working conditions. For instance, the Bangladesh Accord on Fire and Building Safety was developed after the 2013 Rana Plaza tragedy.
The Accord is a legally binding agreement between companies and trade unions that commits to ensuring safer working conditions in the industry.
The critical aspects of sourcing strategy or supplier selection include the evaluation of suppliers' sustainability performance. Supplier selection based on sustainability criteria is a significant element of sustainable supply chain management.
Suppliers are increasingly being evaluated based on environmental, social, and economic criteria. For example, the Fair Wear Foundation is a non-profit organisation that works with textile and clothing brands to improve labour standards in their supply chains.
The Foundation has developed a Code of Labour Practices that suppliers must adhere to. Brands like Jack Wolfskin, Haglöfs, and Patagonia work with the Foundation to evaluate their suppliers' sustainability performance.
Best practices for sustainable supply chain management in the textile and clothing industry include implementing environmental management systems, improving labour standards and working conditions, promoting ethical production, and encouraging social and environmental responsibility.
The critical aspects of sourcing strategy or supplier selection include the evaluation of suppliers' sustainability performance, the adoption of environmental and social standards, and the use of non-profit organisations like the Fair Wear Foundation to evaluate suppliers' sustainability performance.
These practices can help ensure the long-term sustainability of the textile and clothing industry in Bangladesh.
To know more about Sustainability visit:
https://brainly.com/question/32771548
#SPJ11
. What is NOT the Major Disclosure component in the "Fieldwork Completion" phase? Illegal acts Related party transactions Subsequent event Going concern 4. The scope of an audit is not restricted when an attorney's response to an auditor as a result of a client's letter of audit inquiry limits the response to Matters to which the attorney has given substantive attention in the form of legal representation. An evaluation of the likelihood of an unfavorable outcome of the matters disclosed by the entity. The attorney's opinion of the entity's historical experience in recent similar litigation. The probable outcome of asserted claims and pending or threatened litigation. 5. Which of the following statements extracted from a client's lawyer's letter concerning litigation, claims, and assessments most likely would cause the auditor to request clarification? I believe that the possible liability to the company is nominal in amount. I believe that the action can be settled for less than the damages claimed. I believe that the plaintiff's case against the company is without merit. I believe that the company will be able to defend this action successfully.
Fieldwork completion phase is one of the phases of an audit. During this phase, the auditor evaluates the audit evidence obtained from the client. The evidence should be sufficient and competent enough to support the opinion that the auditor expresses.
One of the major components of the fieldwork completion phase is the "subsequent event". Therefore, the answer is "Subsequent event".The scope of the audit may be restricted if an attorney's response to an auditor, as a result of a client's letter of audit inquiry, limits the response to matters to which the attorney has given substantive attention in the form of legal representation.
Therefore, the answer is "An evaluation of the likelihood of an unfavorable outcome of the matters disclosed by the entity".The auditor may request clarification on which of the following statements extracted from a client's lawyer's letter concerning litigation, claims, and assessments: "I believe that the possible liability to the company is nominal in amount".
This statement can be interpreted in different ways, and it is unclear whether the lawyer means that the potential liability is minor or that the company is unlikely to be liable at all. Therefore, this statement would cause the auditor to request clarification.
To know more about potential liability visit :
https://brainly.com/question/28303610
#SPJ11
DRUG PRICES: MARKET PRICING OR PRICE GOUGING? Drug makers persist in raising prices far beyond the rate of inflation.6-Do you think consumers will be able to bring about change on this issue? Why or why not?
Drug makers are continuously raising drug prices more than 100% above the rate of inflation. As a result, healthcare costs have increased, forcing patients to make difficult decisions.
It is uncertain whether consumers will be able to bring about change on this issue. Drug pricing is a complex and multifaceted issue that affects every person in the United States. Unfortunately, the high cost of prescription drugs is still a significant problem in the United States, causing millions of Americans to struggle with the rising cost of medical care.
According to the Department of Health and Human Services (HHS), drug prices have increased more than 100% over the last decade, and the high cost of prescription drugs is one of the primary causes of bankruptcy in the United States. In recent years, drug makers have faced increasing public scrutiny and criticism for their pricing practices. Many believe that drug makers are engaging in price gouging by raising prices far beyond the rate of inflation.
To know more about continuously visit:
https://brainly.com/question/31523914
#SPJ11
Factors Affecting Economic Growth It is highly recommended that you review the Seminar presentation located in the Seminar area before beginning the Discussion. There are several economic and noneconomic factors that affect long-run economic growth of countries. Among these factors, the roles of physical capital, human capital, technology, and natural resources in influencing long-run economic growth of aggregate output per capita are widely discussed. Governments also play their roles in promoting and sustaining long-run economic growth of countries. Based on your reading of Chapter 26 , other course materials, and your knowledge and experience, analyze the following questions. - What factors might contribute to low or high growth rates in a country? How can sustainable long-run economic growth rate be realized? What are the roles of the government in achieving sustainable long-run economic growth? - Why are resources no longer the most important indicators of economic growth disparity among countries? Which other economic and noneconomic factors do you think explain the reasons behind growth disparities among countries? - What is the relationship between economic growth rate and unemployment rate?
Long-run economic growth is the increase in the country's productive capacity over a long period of time, usually decades, that allow for an increase in Gross Domestic Product (GDP) per capita.
There are numerous factors that affect long-run economic growth of a country, including both economic and non-economic factors. In this answer, we will focus on analyzing these factors.
Sustainable long-run economic growth rate:
A sustainable long-run economic growth rate can be achieved by enhancing the quality and quantity of physical and human capital, promoting technological progress, and improving the quality of institutions and governance.
The roles of the government in achieving sustainable long-run economic growth:
Governments play a critical role in promoting and sustaining long-run economic growth of countries. One of the most important roles of the government is to create and maintain a stable macroeconomic environment, which includes keeping inflation low and stable, maintaining a sound fiscal policy, and ensuring that the country has a stable and predictable regulatory environment.
Resources no longer the most important indicators of economic growth disparity among countries:
Resources are no longer the most important indicators of economic growth disparity among countries because they do not necessarily lead to economic growth.
To know more about Gross visit:
https://brainly.com/question/32584585
#SPJ11
If a group of HR professionals decides to lobby government in order to provide educational funding for medical students, what type of stance are these professionals taking? Select one: a. reactive b. passive c. proactive d. recursive
The group of HR professionals, who decide to lobby the government in order to provide educational funding for medical students, are taking a proactive stance.Proactivity involves taking action to control and create a situation rather than merely reacting to it.
It entails taking the initiative, identifying issues before they become crises, and generating alternatives. In essence, taking proactive measures means anticipating potential difficulties before they occur and planning to address them before they occur.
So, in the given scenario, the HR professionals are being proactive in taking action to provide educational funding for medical students. They have identified a problem and are taking steps to address it before it becomes a more significant issue. Therefore, the correct answer is option c. proactive.
To know more about Proactivity visit:
https://brainly.com/question/19568769
#SPJ11
Wanting to retire and pursue her passion of small-business ownership, Rose has asked you for help regarding her decision on opening up a cafe in uptown Chicago (Edgewater). The objective is to reach financial sustainability or profitability within 2 years, and break even with her initial capital investment. Specifically, she needs help with the following: Which shop front location should she rent? Which products and pricing models should she offer? What is the monthly cash flow for the business? Should she open up a cafe? This is an individual report: Executive Summary, Introduction, Methods, Results, Discussion, Conclusion Rubric (1) Executive Summary with recommendation clearly stated (1) Introduction (3) Methods (3)Assumptions (3) Results (1) Assessing the profitability of each option (1) Reporting the monthly cost, revenue, and profit of the business (1) Graphical representation of the data (6) Discussion (5) Analysis of the overall landscape (1) Additional insights that may affect the business (political, legal, climate, etc) (1) Conclusion
Introduction The aim of this paper is to assist Rose in opening a successful cafe in the Edgewater neighborhood of Uptown Chicago.
Methods Three various storefront locations, product offerings, and pricing models were considered in this report to determine the company's financial viability. The investigation was conducted by collecting data on the three storefront locations, such as rent, utilities, labor, and other expenses.
Assumptions The assumptions for the study include: the business will operate at a standard 30-day month, labor will cost $15 an hour, no significant competition in the area, and no additional expenses.
Results Based on the evaluation of the data obtained for the three storefront locations, it was determined that the second option is the most profitable. The most profitable product was breakfast sandwiches. The best pricing model for the company would be a premium pricing model. In the first six months, the company is expected to break even. After two years, the company is projected to earn a net profit of $80,000.
Discussion The study determined that opening a cafe would be a profitable venture in Uptown Chicago's Edgewater neighborhood. The second storefront location, as well as breakfast sandwiches and a premium pricing model, were deemed the most profitable
To know more about investigation visit:
https://brainly.com/question/29365121
#SPJ11
Three ducks, Huey, Dewey, and Louie, are squawking about how big of a pond they should purchase together. Huey and Louie's individual demand curves are given by: Huey: P=118.4−8Q Louie: P=236.8−16Q The price per square metre of pond is $48, and the socially optimal size of the duck pond is 13.8 square metres. Assume that the aggregate demand is a straight line: this implies that the individual demand curves of the 3 ducks intercept the x-axis in the same point. If the ducks choose the pond size independently, how many square metres will the pond be? a. 11.80 b. The pond will not be purchased. C. 12.80 d. 14.80
The pond size will be less than 73.2 square metres. Hence, Option A (11.8) is correct.
Given that the demand curves for Huey and Louie are: Huey: P=118.4−8Q Louie: P=236.8−16Q
We are also given that the socially optimal pond size is 13.8 square metres, and the price per square metre of the pond is $48.We need to determine the size of the pond if the ducks choose the pond size independently.
Aggregate demand is a straight line and hence individual demand curves of the 3 ducks intercept the x-axis at the same point.
The aggregate demand curve can be found by adding the individual demand curves.
QD = QH + QL + QD
But QD = QH = QL = 13.8/3 = 4.6 (as the demand curves intercept the x-axis at the same point)
Therefore, substituting these values in the demand functions of Huey and Louie:
PH = 118.4 - 8 x 4.6
= $82.80PL
= 236.8 - 16 x 4.6
= $157.60
Total revenue = (PH + PL) x 13.8 = $3513.60
Now, for the total pond size, the price is $48 x size of the pond, so $3513.60 = 48 x the size of the pond, which gives the pond size as 73.2 square metres.
However, the individual demands at this size of the pond are greater than 13.8/3 = 4.6 square metres, so the ducks will not be able to reach an agreement on this side of the pond.
Therefore, the pond size will be less than 73.2 square metres. Hence, Option A (11.8) is correct.
Know more about Aggregate demand here:
https://brainly.com/question/1490249
#SPJ11
by giving employees two direct superiors, a matrix structure violates this key element of organizational design.
The key element of organizational design that a matrix structure violates is unity of command. Unity of command is the principle that each employee should have only one supervisor to whom they report.
This ensures that there is clear accountability and that employees know who to go to for direction and support. In a matrix structure, employees typically have two supervisors: a functional manager and a project manager. This can lead to confusion and conflict, as employees may be given conflicting instructions from their two supervisors. Additionally, employees may feel like they are not accountable to anyone, as they have two bosses who may not be in sync with each other. For these reasons, matrix structures are not always the best choice for organizations. However, they can be effective in certain situations, such as when there is a need for cross-functional collaboration or when projects are short-term and require a lot of flexibility.
Learn more about supervisor here:
https://brainly.com/question/31495239
#SPJ11
Which statement about bonds payable is false?
A company can issue bonds payable to raise cash in the "bond market."
A company will issue bonds payable when it needs to raise a small amount of money.
There are usually many bondholders.
The bond certificate includes the interest rate and the maturity or due date.
The statement which is false about bonds payable is: A company will issue bonds payable when it needs to raise a small amount of money.
Bonds payable are long-term loans that are issued by a corporation or other type of business entity and are backed by the borrower’s promise to repay the loan at a fixed interest rate by a specified due date. They are used to raise cash for the organization in the bond market. The following are some characteristics of bonds payable:There are typically many bondholders. Bond certificates include the interest rate and maturity or due date.
Bondholders receive interest payments until the bonds mature. The amount of bond interest depends on the prevailing market interest rate, the credit rating of the issuer, and the duration of the bond. Bonds are a safer investment option because they have a guaranteed return on investment, regardless of how the market performs.
To know more about payable visit:
https://brainly.com/question/28584374
#SPJ11
A producer is selling shirts for $6 each. His fixed operation cost is $3000 and the cost per shirt is $2. Find the profit if he is selling 1,000 shirts. Select one:
a. 1000$
b. -1000$
c. 500$
d. Non of the above
To calculate the profit of the producer, we need to determine the total revenue and total cost first. Then, we can find the difference between the two, which is the profit. Given, Producer is selling shirts for $6 each
Fixed operation cost is $3000
Cost per shirt is $2
Producer is selling 1000 shirts
Total revenue: Total revenue is the amount of money received by a producer from selling a product or service. In this case, the producer sells 1000 shirts for $6 each.
Total revenue = 1000 x $6 = $6000
Total cost: Total cost includes all the expenses incurred by a producer to produce a product or service. It includes both fixed cost and variable cost. Here, fixed cost is given as $3000 and cost per shirt is $2. So, the total cost of producing 1000 shirts is:
Total cost = Fixed cost + (Cost per unit x Number of units)
Total cost = $3000 + ($2 x 1000)
Total cost = $3000 + $2000 = $5000
Profit: Profit is the difference between total revenue and total cost. Thus, profit for producing 1000 shirts will be:
Profit = Total revenue - Total cost
Profit = $6000 - $5000
Profit = $1000
Therefore, the producer will make a profit of $1000 if he sells 1000 shirts for $6 each. Hence, the correct option is a. 1000$.
To know more about determine visit :
https://brainly.com/question/29898039
#SPJ11
which of the following types of control defines expected results in order to guide employee behavior?
Feedforward control sets expectations and standards in advance to guide employee behavior and ensure desired results. It focuses on preventing issues by establishing clear guidelines and providing necessary resources. Therefore, option A is correct.
Feedforward control refers to a management technique that sets expectations and establishes desired results in advance to guide employee behavior and actions.
Unlike traditional control mechanisms that focus on monitoring and evaluating past performance (feedback control) or monitoring ongoing activities (concurrent control), feedforward control aims to proactively prevent problems by providing clear guidelines, expectations, and resources to employees.
It emphasizes effective planning, communication, and alignment of goals to ensure that employees understand what is expected of them and can make informed decisions to achieve the desired outcomes.
Learn more about Feedforward control here:
https://brainly.com/question/32546068
#SPJ4
Most probably, your complete question is this:
Which of the following types of control defines expected results in order to guide employee behavior?
A. Feedforward control
B. Concurrent control
C. Feedback control
D. Non-directional control
In this type of layout, a similar group of products are produced
in one area. A different area would produce a different set of
similar items. Use one word answer.
The term that refers to this type of layout where a similar group of products are produced in one area while a different area produces a different set of similar items is "functional" layout.
A functional layout is a type of production layout where the machinery or equipment is arranged based on their functionalities.
In this type of layout, a similar group of products are produced in one area.
A different area would produce a different set of similar items.
This layout is very efficient for companies that produce many different products and product variations.
It ensures that production runs efficiently and can be accomplished quickly.
The functional layout is the opposite of a product layout, where the equipment or machines are arranged in the sequence of the manufacturing process.
It is common in mass production situations where production lines are set up for high-volume production of a limited range of products.
As a result, the functional layout is more flexible and adaptive than a product layout,
It is very efficient for companies that produce many different products and product variations.
To know more about produced visit:
https://brainly.com/question/30698459
#SPJ11
You have &6,700.00 to invest and must choose between a no-load, open-end mutual fund with an annual expense ratio of 0.85 percent but no transaction cost and an ETF with an annual expense ratio of 0.25 percent and a transaction cost of $20.00. a. Calculate which is the lower cost alternative to purchase. b. Calculate the net proceeds associated with each option if you hold the mutual fund for 6 months and sell after a gain of 11 percent per 6 months. c. Calculate the net proceeds associated with each option if you hold the mutual fund for 1 year and achieve a gain of 9 percent per year. d. Calculate the net proceeds associated with each option if you hold the mutual fund for 1 year and experience a loss of 8 percent per year. a. Calculate which is the lower cost alternative to purchase. (Select the best answer below.) A. The cost is $0 to purchase the no-load fund versus $20 to purchase the ETF. Regardless of the initial investment amount, the lower cost alternative to purchase is the no-load, open-end mutual fund. B. The cost is $0 to purchase the ETF versus $20 to purchase the no-load fund. Regardless of the initial investment amount, the lower cost alternative to purchase is the ETF. b. If you hold the mutual fund for 6 months and sell after a 6-month gain of 11%, the net proceeds associated with the no-load fund are $ (Round to the nearest cent.) If you hold the mutual fund for 6 months and sell after a 6-month gain of 11%, the net proceeds associated with the ETF are $ (Round to the nearest cent.) c. If you hold the mutual fund for 1 year and sell after a 1-year gain of 9%, the net proceeds associated with the no-load fund are s. (Round to the nearest cent.) If you hold the mutual fund for 1 year and sell after a 1-year gain of 9%, the net proceeds associated with the ETF are $ (Round to the nearest cent.) d. If you hold the mutual fund for 1 year and sell after a 1-year loss of 8%, the net proceeds associated with the no-load fund are $. (Round to the nearest cent.) If you hold the mutual fund for 1 year and sell after a 1-year loss of 8%, the net proceeds associated with the ETF are $ (Round to the nearest cent.)
a. The lower cost alternative to purchase is the ETF, as it has a total cost of $36.75 compared to $56.95 for the no-load mutual fund. b. The net proceeds associated with the no-load mutual fund are $7,436.35, and the net proceeds associated with the ETF are $7,454.35. c. The net proceeds associated with the no-load mutual fund are $7,093.35, and the net proceeds associated with the ETF are $7,111.35. d. The net proceeds associated with the no-load mutual fund are $6,044.35, and the net proceeds associated with the ETF are $6,062.35.
a. To calculate the lower cost alternative to purchase, we compare the expenses associated with the no-load mutual fund and the ETF.
For the no-load mutual fund:
Expense ratio = 0.85% = 0.0085
Transaction cost = $0
For the ETF:
Expense ratio = 0.25% = 0.0025
Transaction cost = $20.00
To calculate the cost for each option, we multiply the expense ratio by the investment amount:
No-load mutual fund cost = $6,700.00 * 0.0085 = $56.95
ETF cost = $6,700.00 * 0.0025 + $20.00 = $36.75
b. If you hold the mutual fund for 6 months and sell after a 6-month gain of 11%:
No-load mutual fund net proceeds = $6,700.00 * (1 + 0.11) - $56.95 = $7,436.35
ETF net proceeds = $6,700.00 * (1 + 0.11) - $36.75 = $7,454.35
c. If you hold the mutual fund for 1 year and sell after a 1-year gain of 9%:
No-load mutual fund net proceeds = $6,700.00 * (1 + 0.09) - $56.95 = $7,093.35
ETF net proceeds = $6,700.00 * (1 + 0.09) - $36.75 = $7,111.35
d. If you hold the mutual fund for 1 year and sell after a 1-year loss of 8%:
No-load mutual fund net proceeds = $6,700.00 * (1 - 0.08) - $56.95 = $6,044.35
ETF net proceeds = $6,700.00 * (1 - 0.08) - $36.75 = $6,062.35
For more such questions net,Click on
https://brainly.com/question/28390284
#SPJ8
