Therefore, the correct option among the following is: Through better inventory management, Swiss reduces its average inventory balance by $48,000.
Operating leverage:Operating leverage indicates the relative proportion of fixed and variable expenses in a company's cost structure. It has an impact on the relationship between revenues and profits. Companies with high operating leverage have a greater percentage of fixed costs than variable costs. When a company has a high degree of operating leverage, a small percentage increase in revenue will result in a large percentage increase in profit.
Inventory management:Inventory management refers to the process of controlling the inventory levels in a company's warehouse or storage facilities. Companies must manage their inventory levels to ensure that they have enough stock to meet customer demand while minimizing the amount of capital tied up in inventory. Excess inventory results in increased storage and handling costs, while a shortage of inventory can result in lost sales.
Management:Management refers to the activities, strategies, and processes used to manage a company's resources and achieve its goals. Management activities include planning, organizing, directing, and controlling the company's operations. The goal of management is to ensure that the company's resources are used effectively and efficiently to achieve its objectives.
The right answer to the question:
Through better inventory management, Swiss reduces its average inventory balance by $48,000. Reducing inventory balances means that Swiss has a lower investment in inventory, which frees up cash that can be used to increase sales.
However, this action will simultaneously decrease the contribution margin ratio, as Swiss will lose the economies of scale associated with holding larger amounts of inventory.
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What examples do you have of ethical dilemmas related to
economics? How does supply and demand push businesses to do the
will of the people?
One ethical dilemma related to economics is the issue of minimum wage. Businesses want to keep labor costs as low as possible, while employees want a wage that can provide them with a decent living. This creates a conflict between the two groups, with businesses arguing that they need to keep costs down in order to remain competitive, while employees argue that they deserve a wage that reflects the work they do.
Many companies in developing countries use children to work in their factories because they can pay them lower wages than adult workers. While this practice is legal in many countries, it is still considered unethical by many people because it exploits children who should be in school instead of working.
In conclusion, ethical dilemmas related to economics arise when businesses prioritize profits over people. The principles of supply and demand can also exacerbate these issues by creating a power dynamic where businesses hold most of the cards.
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Analyse the impact knowledge management could have on the business's employees.
Knowledge management (KM) is the systematic process of collecting, recording, organising, and sharing an organisation's knowledge assets to enable better decision-making and business performance.
One of the significant benefits of knowledge management is that it can improve communication within the organisation. Employees who have access to knowledge management tools and platforms can share information and ideas across different departments and teams, resulting in better communication and collaboration. This, in turn, can lead to faster problem-solving, decision-making, and innovation.
Another significant impact of knowledge management on employees is that it can enhance their skills and competencies. Knowledge management systems can provide employees with access to learning resources, training materials, and expert knowledge.
In conclusion, knowledge management can have a significant impact on a business's employees. By improving communication, enhancing skills and competencies, and increasing job satisfaction, knowledge management can help to create a more engaged, innovative, and productive workforce.
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The balance on an entity's plant and machinery account on 1 January 20×2 was £5,000. During that year the following transactions took place on the dates shown:1 May 20×2 Plant which had originally cost £750, was sold 1 September 20×2 New machinery costing £3,000 was purchased If depreciation is calculated at a rate of 10% per annum, on a strict time basis, using the straight line basis, the depreciation charge on plant and machinery for the year to 31 December 20×2, to the nearest pound is: £525 £550. £600. £625.
The depreciation charge on plant and machinery for the year to 31 December 20×2, to the nearest pound is £550.Straight line depreciation method is the method of calculating the depreciation expense for an asset by subtracting its salvage value from its purchase price, calculating that amount by the expected life of the asset and dividing by the total units expected to be produced.
The balance on an entity's plant and machinery account on 1 January 20×2 was £5,000. During that year the following transactions took place on the dates shown:1 May 20×2 Plant which had originally cost £750, was sold 1 September 20×2 New machinery costing £3,000 was purchased. If depreciation is calculated at a rate of 10% per annum, on a strict time basis, using the straight line basis, the depreciation charge on plant and machinery for the year to 31 December 20×2, to the nearest pound is £550.Therefore, the depreciation charge on plant and machinery for the year to 31 December 20×2, to the nearest pound is £550.
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Please explain and provide three (3) examples of how hoteliers and revenue manager measure performance in hotels?
Hoteliers and revenue managers use various tools and metrics to measure the performance of hotels. Some of the commonly used metrics to measure performance in hotels are Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and Occupancy Rate (OR).
Below are three examples of how hoteliers and revenue managers measure performance in hotels:
1. Average Daily Rate (ADR): This metric calculates the average room rate sold per night. It is obtained by dividing the total room revenue by the number of rooms sold. ADR is used by hoteliers and revenue managers to evaluate the average amount a hotel charges per room.
2. Revenue Per Available Room (RevPAR): This metric measures the revenue generated per available room. It is obtained by multiplying ADR and Occupancy Rate (OR). It gives hoteliers and revenue managers an idea of the revenue generated by the hotel based on the number of available rooms.
3. Occupancy Rate (OR): This metric measures the percentage of rooms occupied in a hotel over a period of time. It is calculated by dividing the total number of rooms sold by the total number of rooms available. Hoteliers and revenue managers use OR to evaluate the demand for hotel rooms during a specific period of time.
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Mars Industries has an all-equity capital structure and an unlevered cost of equity of 10%. The expected free cash flows of the company will be $16 million per year in perpetuity. The management is considering changing the capital structure by permanently increasing its debt to $40 million and using the borrowed fund to repurchase shares. The estimated cost of debt is 6% per year. The corporate tax rate is 30%. a. (0.5 mark) What is the current (unlevered) firm value of Mars Industries? b. (0.5 mark) What is the annual interest tax shield for March Industries after the change of the capital structure? c. What is the (levered) firm value of Mars Industries after the change of the capital structure? Show your work, e.g., Excel functions, formulas, and the numerical inputs, to earn partial marks.
a) To calculate the current (unlevered) firm value of Mars Industries, we use the formula for the present value of perpetuity.
Present value of perpetuity = Expected free cash flows
/ Cost of equity (unlevered)
PV = 16,000,000 / 10% = 160,000,000
The current (unlevered) firm value of Mars Industries is 160 million.
b) The annual interest tax shield for Mars Industries after the change of the capital structure is given by the formula:
Interest tax shield = Tax rate *
Interest expense= 0.3 * 2,400,000
= $720,000
The annual interest tax shield for Mars Industries after the change of the capital structure is 720,000.
c) The (levered) firm value of Mars Industries after the change of the capital structure can be calculated using the formula:
VL = VU + PV(interest tax shield) + PV(interest tax shield * Cost of equity (levered) )VU is the unlevered firm value, which is equal to 160 million from part (a).
PV(interest tax shield) = Annual interest tax shield
/ Cost of debt PV(interest tax shield)
= 720,000 / 0.06
= 12,000,000
Cost of equity (levered) = Cost of debt * (1 - Tax rate) + Beta * Equity risk premium
Cost of equity (levered)
= 0.06 * (1 - 0.3) + 1.2 * 0.08
= 0.1048VL
= 160,000,000 + 12,000,000 + 720,000
/ 0.1048= 182,291,015.6
The (levered) firm value of Mars Industries after the change of the capital structure is 182,291,015.6.
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Explain more detail about Interviewing and Use Case Diagram
Interviewing and Use Case Diagram are important concepts that are used in the field of software engineering and system analysis. Interviewing refers to the process of asking questions to stakeholders or end-users to obtain information and requirements that can help to create an effective system. A use case diagram is a graphical representation that is used to describe the interactions between a system and its users.
Interviewing: Interviewing is a vital tool in the field of system analysis. It is used to extract information about the system, its users, and their requirements. The interviewer asks questions that can help to identify the goals and objectives of the system. The interviewer can also use the information obtained from the interviews to create use cases and use case diagrams.
Use Case Diagram: A use case diagram is a graphical representation of the interactions between a system and its users. It is a high-level view of the system that shows the functionality of the system and its users. The diagram consists of actors, use cases, and relationships.
Actors are the entities that interact with the system. They can be users or other systems. Actors are represented by stick figures in the diagram.
Use cases represent the functionality of the system. They are the actions that the system performs to achieve its goals. Use cases are represented by ovals in the diagram.
Relationships represent the interactions between actors and use cases. They show the flow of information between the system and its users. Relationships are represented by arrows in the diagram.
In conclusion, Interviewing and Use Case Diagram are important concepts that are used in the field of software engineering and system analysis. Interviewing is the process of asking questions to stakeholders or end-users to obtain information and requirements that can help to create an effective system. A use case diagram is a graphical representation that is used to describe the interactions between a system and its users.
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Doral Division of Resorts International reported net operating profit after taxes totaling $120,000 in 2017. The cost of capital is 10.5 percent and the invested capital is $560,000. R&D incurred in 2017 was $100,000. The company's policy is to amortize intangible assets over 4 years. The income tax rate is 30 percent. How much is the company's economic value added for 2017? a. $75,825 b. $105,825 c. $825 d. $70,825
Economic value added (EVA) refers to a financial performance measure that indicates the amount of net operating profit that exceeds the cost of invested capital in a business.
Economic value added takes into account the opportunity cost of invested capital in the overall performance of the company.
In order to calculate the company's economic value added for 2017 we need to follow these steps:
Step 1: Calculate the Net Operating Profit After Tax (NOPAT)
NOPAT = Net Operating Profit After Taxes = $120,000.00 * (1-0.30)
= $84,000.00
Step 2: Calculate the Adjusted Operating Profit (AOP)
Adjusted Operating Profit (AOP) = NOPAT + Interest Expense
= $84,000 + ($560,000 * 10.5%)
= $144,800
Step 3: Calculate the Adjusted Tax Rate (ATR)
Adjusted Tax Rate (ATR) = Tax Rate * (1-Intangible Amortization)
= 0.30 * (1-(1/4))
= 0.225
Step 4: Calculate the Capital Charge
Capital Charge = Invested Capital * Cost of Capital
= $560,000 * 10.5%
= $58,800
Step 5: Calculate the Economic Value Added (EVA)
EVA = Adjusted Operating Profit - Capital Charge
EVA = $144,800 - $58,800
EVA = $86,000
Therefore, the economic value added for 2017 is $86,000.
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Why is control thought of as a "causal" variable in organizations?
Group of answer choices
The results of control efforts can improve planning.
Poorly administered controls can cause additional problems.
The analysis of control efforts help managers adapt to changes.
Control precedes the managerial functions of planning, organizing, and leading.
In an organization, control is regarded as a "causal" variable because it precedes the managerial activities of planning, organizing, and leading.
The process of making sure that company operations are carried out according to plan is known as control.
This involves defining criteria for efficiency, identifying areas where results aren't satisfactory, and taking remedial action to correct discrepancies.
Control's causal roleIn organizations, control is considered a "causal" variable because it precedes the managerial functions of planning, organizing, and leading.
Management personnel establish control processes in order to establish standards, assess actual performance, and take corrective actions.
Furthermore, control aids in the integration of organizational systems and the maintenance of equilibrium.
Overall, management employs control systems to monitor and adjust organizational processes, policies, and practices to ensure that the company's objectives are met.
This is why control is a "causal" variable in an organization.
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Most important internal sales promotion efforts are directed at salespeople and other customer contact people. Which of the following exemplify internal promotion efforts?
a) offering sampling of products
b) salary raises
c) participating in trade shows
d) sales training
e) the development of sales aids like flip charts
The answer is b), d, and e. Salary raises are a form of internal promotion effort that provides financial incentives to salespeople for their performance.
They contribute to the motivation and job satisfaction of salespeople. Sales training programs are designed to enhance the knowledge, skills, and abilities of salespeople. These programs focus on improving selling techniques, product knowledge, customer relationship management, and other relevant competencies. The development of sales aids, such as flip charts, brochures, or presentations, is another internal promotion effort. These materials provide salespeople with visual aids and persuasive tools to effectively communicate the features, benefits, and value of their products or services to customers. Offering sampling of products and participating in trade shows are not internal promotion efforts. They are external promotion efforts that are directed towards customers.
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Pandora corporation has purchased currency call options to hedge a 66,500 euro payable. The premium is $0.05 (per unit of euro) and the exercise price of the option is $1.55 per euro. If the spot rate at the time of maturity is $1.51 per euro, what is the total amount paid by the corporation if it acts rationally (after accounting for the premium paid)? a. $104,000 b. $100,415
c. $106,400
d. $103,740
Pandora Corporation, to hedge its 66,500 euro payable, has acquired currency call options. The option's exercise price is 1.55 per euro, and the premium is 0.05 per euro.
We must determine the total amount paid by the corporation if it acts rationally (after accounting for the premium paid) when the spot rate at the time of maturity is 1.51 per euro.
Maturity is the option's expiration date. The option's buyer may select whether or not to exercise the option on or before the expiration date. It indicates the length of time an option has to exercise its rights. The alternative, when exercised, provides the holder the right to purchase an underlying asset at the predetermined price.
Otherwise, the option expires worthlessly.
Premium = 0.05 × 66,500= 3,325 The spot rate at the time of maturity is 1.51 per euro. It refers to the cost of purchasing one euro in the current market.
We must now determine if the option will be exercised by comparing the spot price to the strike price:
The total amount paid by the corporation is the premium paid of 3,325.Option total cost = Premium paid = 3,325
The total amount paid by the corporation if it acts rationally (after accounting for the premium paid) when the spot rate at the time of maturity is 1.51 per euro is 3,325. option total cost = Premium paid = 3,325. Thus, option total cost is equal to 3,325. Option total cost = Premium paid = 3,325.
Hence, option total cost is equal to 3,325.
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Mast Company reports net income of $322,500 for the year ended December 31 it also reports 5102,800 depreciation expense and a $11,050 loss on the sale of equipment. its comparative balance sheet reveals a $44,400 increase in accounts recelvable, a $11,250 decrease in prepaid expenses, a $16,950 increase in accounts payable, and a $13,900 decrease in wages payable. Calculate the net increase in cash for the year. Mutiple Chaice 5315,200 . 5224,100 $295,750 $406250 $323,550
The net increase in cash for the year is $472,500.Answer: $472,500. The net increase in cash for the year can be calculated using the formula :Net cash flow = Net income + Depreciation expense + Loss on sale of equipment + Increase in accounts receivable + Decrease in prepaid expenses + Increase in accounts payable
Decrease in wages payable C Given the following figures :Net income = $322,500Depreciation expense = $102,800Loss on sale of equipment = $11,050Increase in accounts receivable = $44,400Decrease in prepaid expenses = $11,250Increase in accounts payable = $16,950Decrease in wages payable = $13,900Net cash flow = $322,500 + $102,800 + $11,050 + $44,400 - $11,250 + $16,950 - $13,900= $472,500 the net increase in cash for the year is $472,500.Answer: $472,500.
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15.
Suppose sudden and unexpected (but from a reputable source) news
headlines announce a substantial drop in the demand for a firm's
products. Which of the following will likely be true?
If a sudden and unexpected (but from a reputable source) news headlines announce a substantial drop in the demand for a firm's products, it is likely to experience a decrease in its production costs. It is also likely that the supply will exceed the demand, which leads to a surplus.
This, in turn, will cause the price of the products to decrease.The firm will also have to reduce its output in the short run. The fall in demand can lead to lower profits or even losses for the firm. This will force the firm to reduce its labor force and investments. A drop in demand can also lead to reduced economic activity in the region or even the whole country.The firm may also be required to adjust its marketing strategy to increase demand for its products. For example, it may have to undertake aggressive marketing campaigns to promote its products.
Alternatively, the firm can also opt to discontinue the production of products with low demand to minimize losses.In conclusion, sudden and unexpected (but from a reputable source) news headlines announce a substantial drop in the demand for a firm's products leads to a fall in profits, excess supply, reduced economic activity, and a drop in price.
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When a company purchased land several years ago, the accounting clerk posted the journal entry to buildings instead of land. This was only discovered this year. Depreciation has been recorded on the total value in the building account each year. Select one of these three items - Is this considered: an error; a change in estimate; a change in policy. And then: Select one of these two items - Should this be adjusted: retrospectively; prospectively NOTE - two boxes should be selected! Change in estimate Change in policy Retrospective
When a company purchased the land several years ago, the accounting clerk posted the journal entry to buildings instead of land. This was only discovered this year. Depreciation has been recorded on the total value in the building account each year.
The two boxes that should be selected from the given options, based on the information given, are as follows:
Option 1: This is considered an error.
Option 2: This should be adjusted retrospectively.
An error occurs when a company makes a mistake in financial statements or accounting entries that have already been issued. In the given scenario, the accounting clerk posted the journal entry to the building account instead of the land account, so the recording of the purchased land as a building account is a mistake.
In this case, retrospective adjustment should be made. In retrospective adjustments, the past financial statements are changed as if the change had always been in effect. Depreciation has been recorded on the total value in the building account each year, but if the land account had been used, depreciation should not have been recorded.
Therefore, retrospective adjustments should be made to correct the error.
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What are the four major types of transportation for tourism, and
why is each mode of transportation important to tourism today?
Tourism plays a vital role in the economy of any country. People travel for various reasons, including vacation, education, work, and more. Transport is an essential aspect of tourism, and there are several means of transportation available for tourists.
The four major types of transportation for tourism are air, road, rail, and water transportation.
Air Transportation
Air transportation is one of the most efficient and fastest modes of transportation for tourism. People from all around the world can reach their destination within a few hours by taking a flight. Air travel is essential for long-distance travel, especially for international travel. It's also an excellent option for people who have less time for their vacation.
Road Transportation
Road transportation is another critical mode of transportation for tourism. It is the most flexible and affordable means of transportation. People can enjoy the scenic beauty of the country while traveling on roads. Tourists can also enjoy several road trips and excursions to explore new places.
Rail Transportation
Rail transportation is an ideal mode of transportation for tourists who prefer a slower pace. It offers an excellent opportunity to observe the beauty of the countryside. Rail travel is more comfortable, safer, and faster than road transportation, and it's an excellent option for long-distance travel.
Water Transportation
Water transportation is another vital mode of transportation for tourism. It is an ideal option for tourists who want to explore the beauty of the oceans, rivers, and seas. Water transportation offers a unique experience and an opportunity to enjoy the scenic beauty of the country from a different perspective. Water transportation is also the most eco-friendly option among all four modes of transportation.
Conclusion
In conclusion, the four major types of transportation for tourism are air, road, rail, and water transportation. Each mode of transportation is important for tourism today as it offers a unique experience to tourists. Air transportation is fast and efficient, while road transportation is flexible and affordable. Rail transportation is comfortable and safe, and water transportation offers a unique perspective and an opportunity to explore the oceans, rivers, and seas. Therefore, all four modes of transportation are essential for tourism today.
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When you retire 50 years from now, you want to have $1.0 million. You think you can earn an average of 10.0 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 10 years from today. How much more will you have to deposit as a lump sum if you wait for 10 years before making the deposit? $15,379.94
$13,576.38
$16,284.79
$17,101.22
$14,716.28
When you retire 50 years from now, you want to have $1.0 million. You expect to earn an average of 10.0% on your investments. You are considering two options:
depositing a lump sum today or waiting for 10 years before making the deposit. The question is how much more you will have to deposit as a lump sum if you wait for 10 years.
We can use the Future Value formula to determine the required deposit amount. The formula is given by:
FV = PV x (1+i)^n
In this case:
FV = $1.0 million
n = 50 years
i = 10%
Let's calculate the required PV for both scenarios:
PV if deposited today:
FV/PV = (1+i)^n
FV/PV = (1+0.10)^50
FV/PV = 117.39
PV = FV / 117.39
PV = $1,000,000 / 117.39
PV = $8,516.64
PV if deposited 10 years from now:
FV/PV = (1+i)^n
FV/PV = (1+0.10)^40
FV/PV = 25.94
PV = FV / 25.94
PV = $1,000,000 / 25.94
PV = $38,896.58
The amount more required to deposit if waiting for 10 years = $38,896.58 - $8,516.64 = $30,379.94
Therefore, Option A is correct.
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A manufacturer offers an inventor the choice of two contracts for the exclusive right to manufacture and market the inventor's patented design. Plan 1 calls for an immediate single payment of $59,578. Plan 2 calls for an annual payment of $1,594 plus a royalty of $1.91 for each unit sold. The remaining life of the patent is 10 years. MARR is 10% per year. What must be the uniform annual sales to make Plan 1 and Plan 2 equally attractive?
Uniform annual sales that will make Plan 1 and Plan 2 equally attractive are $ 16,736. Explanation: Present worth of Plan 1: Since this plan is offering an immediate single payment, the present worth of Plan 1 would be $ 59,578. Present worth of Plan
2: Since Plan 2 is offering an annual payment along with a royalty for each unit sold, it would be difficult to find out the present worth of this plan without the knowledge of the number of units that will be sold.
Hence, it is important to find out the uniform annual sales that will make both plans equally attractive. For this purpose, let x be the uniform annual sales. Royalty for each unit sold is $ 1.91.
Number of units sold in a year is x. Hence, the royalty income in a year will be $ 1.91 x. The net cash inflow in a year is the sum of annual payment and royalty income. Net cash inflow =[tex]$ 1,594 + $ 1.91 x[/tex].
Using the formula to calculate the present worth of an annuity, present worth of Plan 2 would be as follows:
[tex]PW = A(1-PVIFAi,n)+RV(1+i)-n[/tex]
where,PW = present worth
A = net cash inflow in a yeari = MAR
Rn = number of years
RV = residual value (which is zero in this case)By substituting the values in the formula,
PW [tex]= (1594 + 1.91 x) [1 - (1 + 0.1)-10 / 0.1] + 0= 9,807.95 + 14.1892 x[/tex].
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which of the following statements is true concerning electronic communication networks (ecns)? qid: 3569506 mark for review a they can be used only by retail investors. b they can be used by investors who want to trade anonymously. c they can be used only by institutional investors. d they can be used by clients who don't want to use a broker-dealer.
The true statement about concerning electronic communication networks is; They can be used by investors who want to trade anonymously. Option B is correct.
Electronic Communication Networks (ECNs) are electronic platforms that allow investors, both retail and institutional, to trade securities directly with each other. ECNs provide a venue for buyers and sellers to interact and execute trades without the need for a traditional broker-dealer intermediary.
One of the advantages of using ECNs is the ability to trade anonymously. Investors can place orders and execute trades without revealing their identity to other market participants. This can be particularly useful for institutional investors or individuals who prefer to maintain confidentiality in their trading activities.
Hence, B. is the correct option.
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Which one of the following statements is false?
Interest tax shield adds value to firms
The total value of the levered firms exceed the value of the firm without leverage due to the present value of the tax savings from debt.
For a levered firm, we can compute the value of its operating assets by discounting its future unlevered free cash flows using the after-tax cost of capital (WACC).
None of the above
The correct option that represents the false statement is “None of the above.” Explanation: Interest tax shield adds value to firms: Interest tax shields help in reducing a company's tax liability. It is the deduction that the company takes from its taxable income by subtracting its interest costs on outstanding debt.
The more the company’s debt, the more the tax savings. The tax shield can add value to a company, and it is a legitimate reason why many companies issue debt rather than equity. The total value of the levered firms exceeds the value of the firm without leverage due to the present value of the tax savings from debt: The interest tax shield provides a tax deduction, which means that interest payments are subtracted from taxable income. Debt increases the value of the firm by providing tax savings, which increases cash flows for the company.
However, the market value of the levered firm will always be higher than that of the unlevered firm. For a levered firm, we can compute the value of its operating assets by discounting its future unlevered free cash flows using the after-tax cost of capital (WACC): The formula used to calculate the value of the firm is similar for both the levered and unlevered firm. The difference is that the levered firm has to subtract debt value from the value of the firm. The cost of debt should also be adjusted for taxes.
None of the above: All the statements mentioned above are true. So, the false statement is None of the above.
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Whispering Winds Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change-related services represent 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $12,480,000 (or $84,000 per service outlet).
Previous question
Whispering Winds Service, which provides primarily two lines of service: oil changes and brake repair, has over 200 auto-maintenance service outlets across the United States. Oil change-related services represent 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. It is critical to note that contribution margin represents the amount left after variable costs are deducted from the revenue. In this case, contribution margin is used to pay for fixed costs, with the remaining amount being profit.
If the company's fixed costs are $12,480,000 (or $84,000 per service outlet), we may use the contribution margin formula to compute its break-even point in dollar sales. In essence, the formula can be represented as follows:
Contribution margin per unit = Selling price per unit - Variable cost per unit.
To begin, we need to calculate the contribution margin per unit for both oil changes and brake repair services, respectively.
Oil changes' contribution margin per unit:
Selling price = 75% of total sales = 0.75*$1,000 = $750
Variable cost per unit = $600 (since 20% is the contribution margin ratio, it indicates that variable costs account for 80% of the sales revenue).
Contribution margin per unit = $750 - $600 = $150.
Brake repair's contribution margin per unit:
Selling price = 25% of total sales = 0.25*$1,000 = $250.
Variable cost per unit = 40% of sales revenue ($250 * 0.4) = $100.
Contribution margin per unit = $250 - $100 = $150.
Now that we have calculated the contribution margin per unit for both oil changes and brake repair services, respectively, we may use the following formula to compute the break-even point in dollar sales:
Break-even point (in dollar sales) = Fixed costs / Contribution margin ratio
Break-even point = $12,480,000 / [0.75 * $150 + 0.25 * $150]
Break-even point = $12,480,000 / $150
Break-even point = $83,200, which implies that Whispering Winds Service would need to make $83,200 in sales to break even.
In conclusion, based on the given information, Whispering Winds Service would need to generate more than $83,200 in sales to begin making a profit, with a higher emphasis on oil changes, which account for 75% of total sales and have a 20% contribution margin ratio.
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the practice of combining public relations, marketing, advertising, and promotion into a seamless campaign is known as? group of answer choices all of these are correct. public relations media mix. incorporated public relations. integrated marketing communication. viral marketing.
Integrated marketing communication (IMC) refers to the practice of combining public relations, marketing, advertising, and promotion into a seamless campaign.
IMC recognizes that different communication tools have different strengths and that by integrating them, a more effective and impactful campaign can be created. For example, a company might use public relations to manage their reputation, advertising to create brand awareness, and promotion to incentivize sales. By integrating these different components, they can create a comprehensive and cohesive marketing strategy.
By using IMC, organizations can ensure that all their communication efforts work together towards a common goal, resulting in a more powerful and consistent brand message. It helps build brand equity, improve customer engagement, and drive desired actions from the target audience.In summary, integrated marketing communication is the practice of combining public relations, marketing, advertising, and promotion into a seamless campaign, allowing organizations to deliver a consistent and unified message to their target audience.
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Why is ethics critical to successful strategic planning in the
21st century?
In the 21st century, ethics is critical to successful strategic planning. Below are some of the reasons why ethics is critical to successful strategic planning: Ethics sets the tone for decision making: Ethical values and principles establish the tone and context for decision-making in strategic planning.
They also assist leaders in maintaining their principles and ensuring that their behaviour aligns with their organization's objectives. Ethical considerations should be a part of strategic planning discussions, as they can help establish a shared vision and guide decision-making.Corporate social responsibility is enhanced: Corporate social responsibility is a significant aspect of successful strategic planning in the 21st century. The focus on sustainability, responsibility, and environmental protection is one example. These responsibilities are critical to the long-term success of businesses in the 21st century, which rely on the support of their stakeholders, such as employees, consumers, and investors. Ethics helps businesses to balance their social responsibilities with their corporate objectives.Business risk is reduced: Ethical considerations can be a critical factor in assessing risk in strategic planning. Leaders who value ethical considerations when making decisions are more likely to be proactive in addressing the risks that they identify. Ethical considerations are also useful in crisis management and can assist companies in navigating through difficult times.Stronger organizational culture is developed: Organizations that place a strong emphasis on ethics have a better chance of developing a positive culture, which is critical to success in the 21st century. A strong ethical culture can enhance employee engagement, reduce turnover, and boost productivity.
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How the iPhone can create jobs for business/logistics majors (like
you?). Is this type of complex, multi-national, logistics good for
jobs in America? Why?
For business and logistics majors, the iPhone has a variety of employment opportunities. A sophisticated supply chain and logistics activities are required for the manufacturing, distribution, and sales of this complicated, multi-national commodity.
The management of these operations, which include procurement, inventory management, transportation, and distribution, is mostly the responsibility of business/logistics specialists. They aid in cost-cutting, cost optimisation, and assuring efficient operations. Although the iPhone is produced all around the world, American jobs are affected by it in areas like marketing, retail operations, customer service, and support. Additionally, the tech sector's innovation and development, fueled by businesses like Apple, can foster entrepreneurship and job creation in the American economy.
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why do you think that it is important to study
money,banking and financial market
It is important to study money, banking, and financial markets because they are the backbone of modern economies. Money is the medium of exchange used in transactions and is essential for economic growth. Banking is an important institution that provides various financial services, such as deposits, loans, and credit, which contribute to economic growth.
Studying money, banking, and financial markets also helps individuals to manage their personal finances better. By understanding the basics of financial markets and how they operate, individuals can make informed investment decisions and grow their wealth. Additionally, understanding the banking system can help individuals better manage their finances and avoid costly mistakes, such as taking on too much debt or using credit unwisely.
In conclusion, studying money, banking, and financial markets is important because they are essential for economic growth and play a crucial role in personal finance. Understanding these concepts is also necessary for policymakers and regulators to maintain stable financial systems. Therefore, students who wish to pursue careers in finance, economics, or business should consider studying money, banking, and financial markets in more than 100 words.
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Lee purchased a stock one year ago for $28. The stock is now worth $33, and the total return to Lee for owning the stock was 0.37. What is the dollar amount of dividends that he received for owning the stock during the year? Round to two decimal places.
The formula for total return is given as follows:
Total return = capital gain/loss + dividend yield
For example, capital gain/loss = (ending stock price – initial stock price) / initial stock price
Dividend yield is calculated as follows:
Dividend yield = dividends per share / stock price Initial stock price= 28
Ending stock price = 33
Total return to Lee = 0.37
Capital gain/loss = Total return - dividend yield0.37
= (33-28)/28 + dividend yield
Dividend yield = 0.12 = dividend / 28
Dividend = 3.36 dollars for owning the stock during the year.
So, the dollar amount of dividends Lee received for owning the stock during the year is 3.36.
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Veach Division has total assets (net of accumulated depreciation) of $462,000 at the beginning of year 1 . One of the assets is a machine that has a net book value of $47,040. Expected divisional income in year 1 is $55,440 including $2,940 in income generated by the machine (after depreciation). Veach's cost of capital is 10 percent. Veach is considering disposing of the asset today (the beginning of year 1). Required: a. Veach computes ROI using beginning-of-the-year net assets. What will the divisional ROI be for year 1 assuming Veach retains the asset? b. What would divisional ROI be for year 1 assuming Veach disposes of the asset for its book value and there is no gain or loss on the sale? Note: Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1). c. Veach computes residual income using beginning-of-the-year net assets. What will the divisional residual income be for year 1 assuming Veach retains the asset? d. What would divisional residual income be for year 1 assuming Veach disposes of the asset for its book value and there is no gain or loss on the sale?
a. The formula for computing ROI is as follows: ROI = Operating Income / Invested Assets; ROI = $55,440 / $462,000; ROI = 12%.Therefore, the divisional ROI for year 1 assuming V each retains the asset is 12%.b. The formula for computing divisional ROI is as follows:
ROI = Operating Income / Invested Assets; ROI = $52,500 / $414,960; ROI = 12.7%.Therefore, the divisional ROI for year 1 assuming V each disposes of the asset for its book value and there is no gain or loss on the sale is 12.7%.c. The formula for calculating residual income is as follows:
Residual Income = Operating Income - (Cost of Capital * Invested Assets); Residual Income = $55,440 - (0.10 * $462,000); Residual Income = $8,040Therefore, the divisional residual income for year 1 assuming V each retains the asset is $8,040.d.
The formula for calculating residual income is as follows: Residual Income = Operating Income - (Cost of Capital * Invested Assets); Residual Income = $52,500 - (0.10 * $414,960);
Residual Income = $10,704 Therefore, the divisional residual income for year 1 assuming V each disposes of the asset for its book value and there is no gain or loss on the sale is $10,704.
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Single-period inventory models are used in situations involving items that can be carried in inventory and sold in future periods.
a. True b. False
The statement that, "Single-period inventory models are used in situations involving items that can be carried in inventory and sold in future periods" ia False.
What are single-period inventory models?The single-period inventory models are used to depict cases where only one order is made for a product and by the end of the inventory period, these would hold little or no value.
So, it is wrong to say that "Single-period inventory models are used in situations involving items that can be carried in inventory and sold in future periods." This is only applicable to multiple-period inventory.
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Alexa has contributed $1,887.00 every month for the last 12 years into an RRSP fund. The interest earned by these deposits was 8% compounded monthly for the first 3 years and 9% compounded monthly for the last 9 years.
How much money is currently in the RRSP?
The current amount in the RRSP is approximately $386,254.11.
To calculate the current amount in the RRSP, we need to consider the monthly contributions and the interest earned for each period separately.
First, let's calculate the amount accumulated in the RRSP for the first 3 years at an interest rate of 8% compounded monthly:
Step 1: Calculate the number of months in 3 years: 3 years * 12 months/year = 36 months
Step 2: Calculate the future value of monthly contributions at 8% interest compounded monthly for 36 months:
[tex]FV = PMT * [(1 + r)^n - 1] / r\\\\ FV = \$1,887 * [(1 + 0.08/12)^(36) - 1] / (0.08/12)\\\\ FV = \$1,887 * (1.006667^36 - 1) / 0.006667\\\\ FV = \$1,887 * (1.310031 - 1) / 0.006667\\\\ FV = \$1,887 * 0.310031 / 0.006667\\\\ FV = \$87,667.95[/tex]
Next, let's calculate the amount accumulated in the RRSP for the remaining 9 years at an interest rate of 9% compounded monthly:
Step 3: Calculate the number of months in 9 years: 9 years * 12 months/year = 108 months
Step 4: Calculate the future value of monthly contributions at 9% interest compounded monthly for 108 months:
[tex]FV = PMT * [(1 + r)^n - 1] / r\\\\ FV = \$1,887 * [(1 + 0.09/12)^(108) - 1] / (0.09/12)\\\\ FV = \$1,887 * (1.0075^108 - 1) / 0.0075\\\\ FV = $1,887 * (1.990458 - 1) / 0.0075\\\\ FV = \$1,887 * 0.990458 / 0.0075\\\\ FV = \$298,586.16[/tex]
Finally, let's calculate the total amount in the RRSP by summing up the amounts accumulated in each period:
The total amount in the RRSP = Amount accumulated in the first 3 years + Amount accumulated in the remaining 9 years
The total amount in the RRSP = [tex]\$87,667.95 + \$298,586.16[/tex]
The total amount in the RRSP ≈ $386,254.11
Therefore, the current amount in the RRSP is approximately $386,254.11.
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Katie purchases two slices of pizza and six readsticks to maximize her total utility, then Select one: A. her marginal utility from the second slice of pizza divided by the price of a slice of pizza is equal to her marginal utility from the sixth breadstick divided by the price of a breadstick. B. she spends more on pizza than she spends on breadsticks. C. a breadstick costs three times as much as a slice of pizza. D. a slice of pizza costs three times as much as a breadstick. E. her marginal utility from the second slice of pizza equals her marginal utility from the sixth breadstick.
Katie purchases two slices of pizza and six breadsticks to maximize her total utility, then her marginal utility from the second slice of pizza equals her marginal utility from the sixth breadstick.
Utility is a term that describes the satisfaction or happiness that consumers get from the use of goods and services. The utility is used to measure the level of satisfaction that a customer receives from a product and service.
Utility is a difficult concept to define, but it is frequently utilized in microeconomics to analyze consumer behavior. Marginal utility is the additional satisfaction or happiness obtained by using one additional unit of a product or service when all other factors remain constant.
The consumer can determine the usefulness of a product by comparing the marginal utility to the price. If a product's marginal utility exceeds its price, it is deemed to be useful. Katie is a consumer, and her goal is to obtain maximum utility.
Katie's consumption of two slices of pizza and six breadsticks has an impact on her marginal utility. Katie's marginal utility from the second slice of pizza equals her marginal utility from the sixth breadstick. Therefore, the correct answer is E. her marginal utility from the second slice of pizza equals her marginal utility from the sixth breadstick.
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QUESTION FOUR [25] Read the following text and answer the questions that follow: The year is 2010 and times were good. The business environment was vibrant and the economy strong. Large businesses are committing large amounts of capital and resources to implement new strategies, establish new capabilities, and open new markets. It was no different at PintCo, where Jack works as a Director of Customer Relationship Management. Jack walked into work on Monday morning like any other. He dropped his briefcase in his office, grabbed a cup of coffee and headed down the hall to meet with his boss, Brandon, about one of the company's troubled projects. Although Jack had substantial experience, he had only recently joined PintCo after being hired away from a chief competitor. He was still learning about some of the nuances of his current employer. After the typical morning banter, Brandon and Jack got to the topic at hand. "Jack, I'll get straight to the point. I need to you to take over the Customer Master File project from Paul." Brandon said. He continued, "We hired you because of your significant project management expertise. I know that POSTGRADUATE DIPLOMA IN MANAGEMENT ACADEMIC AND ASSESSMENT CALENDAR REGENT BUSINESS SCHOOL (RBS) JAN 2022 29 you've turned around a lot more difficult situations than this." Over an hour later, Jack emerged from Brandon's office and set out to learn more about the challenge that Brandon had posed to him. Jack was an experienced business leader and project manager. He had seen more than his fair share of ugly projects; some he turned around while others had spun hopelessly out of control. He would be able to tell very quickly how this one would go based on the makeup and culture of the project team. Troubled Waters Over the course of the next few weeks, Jack took over the Customer Master File project, met with key project team members, and conducted dozens of interviews with key stakeholders. It was only a few weeks since Brandon had handed the keys to him for this troubled project, and now Jack was back in Brandon's office to give a rather stark update on the situation. "Brandon, I've talked to the project team and to key stakeholders, and I know why this project is in trouble," Jack started. "If you truly want me to turn this project around, I'll need your support to make some critical changes." Brandon, a 20-year veteran at PintCo, knew what was coming. He had seen too many projects start, flounder, and then fail at the company. He didn't want to hear that another project was on the brink of failure, but he asked anyway, "What did you find out, Jack, and what can I do to help?" Jack drew a deep breath and began to explain his findings. "Brandon, as you know this project has been in flight for nearly 6 months now and it is already behind schedule and over budget." Jack went on, "In talking to the project team and other stakeholders, I don't see the situation getting better without making some pretty significant changes." Jack's experience helped him to quickly identify a number of critical issues with the project, which he carefully outlined for Brandon: "The scope of the project is not well defined," "The IT architects are sitting in their ivory towers and disagree with the project's direction," POSTGRADUATE DIPLOMA IN MANAGEMENT ACADEMIC AND ASSESSMENT CALENDAR REGENT BUSINESS SCHOOL (RBS) JAN 2022 30 "The project team is not functioning as a team," "There is a lack of clear executive sponsorship, and" "Steve from Marketing is trying to manipulate this project for his own political gain." "I'm not going to sugar coat this for you Brandon," Jack explained. "I've seen this situation far too often in my career, and if we don't change the situation this project will fail in glorious fashion.
" Questions:
4.1 The project scope statement includes deliverables that the project must produce to fulfil requirements. Construct a well-defined scope for the above project. (15)
4.2 Identify the risks and develop a risk action plan for this project. (1
In this text, Jack, a Director of Customer Relationship Management, is tasked with taking over a troubled project at PintCo.
He identifies several critical issues with the project, including a poorly defined scope, disagreement among IT architects, a dysfunctional project team, a lack of clear executive sponsorship, and political manipulation by someone from Marketing. Jack emphasizes the need for significant changes to prevent the project from failing. The text highlights the challenges faced by Jack and the importance of addressing these issues to turn the project around and ensure its success.
In summary, the text introduces Jack, who is assigned to turn around a troubled project at PintCo. He identifies multiple critical issues with the project, such as scope definition problems, disagreement among IT architects, a dysfunctional team, lack of executive sponsorship, and political manipulation. Jack emphasizes the necessity for significant changes to prevent the project from failing in a grand manner.
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on a part of the demand curve where the price elasticity of demand is less than 1, a decrease in price
a. is impossible
b. will increase total revenue
c. will decrease total revenue
d. decreases quantity demanded
The answer is option c) will decrease total revenue. Elasticity of demand refers to how the change in price impacts the demand for the good. In other words, it is the responsiveness of the demand for a good or service to the changes in price.
The elasticity of demand can be classified into three types based on the degree of responsiveness:Unitary Elasticity: When the change in price of a good is directly proportional to the change in demand, then it is called unitary elasticity. It means the price elasticity of demand is equal to 1.Elastic Demand: When the percentage change in demand for a good is greater than the percentage change in price, then it is called elastic demand. It means the price elasticity of demand is greater than 1.
Inelastic Demand: When the percentage change in demand for a good is less than the percentage change in price, then it is called inelastic demand. It means the price elasticity of demand is less than 1. Therefore, when the price elasticity of demand is less than 1, it is said to be inelastic. An inelastic demand curve is steeper, indicating that a change in price does not significantly impact the demand for the good.So, option c) is the correct answer.
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