The main question that both individuals and companies must consider when making financial decisions to reach a goal is Option A. Will the benefits of the action outweigh the costs?
In simpler terms, it is an assessment of whether the return on investment is higher than the cost of the investment. There are various financial decisions that individuals and companies have to make, such as investment decisions, financing decisions, and dividend decisions. When making investment decisions, individuals and companies must decide whether to invest in a project or not. In making such decisions, they need to evaluate the expected cash inflows and outflows.
This will help determine whether the investment will generate positive cash flows and whether these cash flows will exceed the cost of the investment. When making financing decisions, individuals and companies need to decide whether to use debt or equity to finance the investment. In making such decisions, they need to evaluate the cost of each source of finance and the impact it will have on the profitability of the investment. When making dividend decisions, companies need to decide on the amount of profits to be paid out to shareholders as dividends.
In making such decisions, they need to evaluate the impact of the dividend payment on the financial position of the company. The above examples demonstrate the importance of considering the benefits of an action against its costs. The decision to invest, finance, or pay dividends will ultimately depend on whether the benefits outweigh the costs or not. Therefore, the correct option is A.
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what is the main question that both individuals and companies must consider when making financial decisions to reach a goal? A. Will the benefits of the action outweigh the costs?
A. Will the benefits of the action outweigh the costs?
B. Will this decision require debt or equity financing?
C. Will utility be maximized through this decision?
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Topic overview In 2013 the Target corporation in the US suffered a massive data breach, exposing over 100 million customers’ personal information (including credit card numbers). Analysis of the events of the breach, and the factors that contributed to it, revealed a long and complex chain of weaknesses and mistakes made by Target and its business partners.
Your task is as follows: Read the following paper: Shu, X., Tian, K., & Ciambrone, A. (2017). Breaking the target: an analysis of target data breach and lessons learned. arXiv preprint arXiv:1701.04940.
Answer the following questions: Describe a failure in Target’s response to the breach, in the context of the Kill Chain methodology (20 marks)
Kill Chain Methodology: The Kill Chain is a cybersecurity concept that was first developed by the US military. It's a cybersecurity model that breaks down an attack into seven stages. The seven stages are described below: Reconnaissance: The attackers attempt to learn about the target's environment, network topology, systems, and vulnerabilities.
Weaponization: In this stage, the attacker creates a malicious payload to deliver to the target. Delivery: In this stage, the attacker sends the payload to the target. Exploitation: The attacker exploits a vulnerability in the target's environment to execute the payload.
Installation: The attacker installs the malware on the target's system. Command and Control (C2): The attacker establishes communication with the target's system to control it. Actions on Objectives: The attacker performs the intended objective, whether it's exfiltrating data, damaging systems, or other malicious activities.
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Blustream, Inc., considers a project in which it will sell the use of its technology to firms in Mexico. It already has received orders from Mexican firms that wenerate 4 million Mexican pesos (MXP) in revenue at the end of the next year. However, it might also receive a contract to provide this technology to the Mexican government. In this case, it will generate a total of MXP6 million at the end of the next year. It will not know whether it will receive the government order until the end of the year. Today's spot rate of the peso is $0.12. The one-year forward rate is $0.10. Blustream expects that the spot rate of the peso will be $0.11 one year from now nitial outlay will be $300,000 to cover development expenses (regardless of whether the Mexican government purchases the thechnology). Blustream will pursue the broject only if it can satisfy its required rate of return of 20 percent. Ignore possible tax effects. It decides to hedge the maximum amount of revenue that it receive rom the project. a. Determine the NPV if Blustream receives the government contract. Do not round intermediate calculations. Round your answer to the nearest dollive should be indicated by a minus sign. $ (3) b. If Blustream does not receive the contract, it will have hedged more than it needed to and will offset the excess forward sales by purchasing pesos in the spot market at the time the forward sale is executed. Determine the NPV of the project assuming that Blustream does not receive the government contract. Do not intermediate calculations. Round your answer to the nearest dollar. Negative value should be indicated by a minus sign. $ (3) c. Now consider an alternative strategy in which Blustream only hedges the minimum peso revenue that it will receive. In this case, any revenue due to government contract would not be hedged. Determine the NPV based on this alternative strategy and assume that Blustream receives the government contract. Do not round intermediate calculations. Round your answer to the nearest dollar. Negative value should be indicated by a minus sign. $ (3) d. If Blustream uses the alternative strategy of only hedging the minimum peso revenue that it will receive, determine the NPV assuming that it does not receive the $ e. If there is a 50 percent chance that Blustream will receive the government contract, would you advise Blustream to hedge the maximum amount or the minimum amount of revenue that it may receive? Explain. It should hedge the amount of revenue, since the NPV for either scenario is f. Blustream recognizes that it is exposed to exchange rate risk whether it hedges the minimum amount or the maximum am receiver it considers a pesos. The one-year put option has an exercise price of $0.105 and a premium of $0.009. Determine the NPV if Blustream uses this strategy and receives the government contract. Do not round intermediate calculations. Round your answer to the nearest dollar. Negative in 5 (3) Also, determine the NPV if Blustream uses this strategy and does not receive the government contract. Do not round intermediate calculations. Round your answer to the nearest dollar. Negative value should be indicated by a minus sign. $ Given that there is a 50 percent probability that Blustream will receive the government contract, would you use this new strategy or the strategy that you selected in question (e)? It is better to use the strategy offered in the since it results in greater amount of NPV for both scenarios.
Given that there is a 50 percent probability that Blues tream will receive the government contract, it would be better to use the new strategy that Blues tream recognizes.
NPV if Blues tream receives the government contract is -$112,000. It is computed as follows: NPV = -Initial Outlay + PV of Future Cash Flows [tex]Initial Outlay = $300,000[/tex] Mexican Peso to [tex]USD spot rate = $0.12USD300,000 / $0.12 = MXP 2,500,000NPV = -$300,000 + [(MXP 4,000,000 / $0.11) + (MXP 2,000,000 / $0.10)] / (1.20)NPV = -$112,000[/tex].
NPV if Blues tream does not receive the government contract is -$61,500. It is computed as follows: NPV = -Initial Outlay + PV of Future Cash Flows Initial Outlay = $300,000Mexican Peso to[tex]USD spot rate = $0.12USD300,000 / $0.12 = MXP 2,500,000NPV = -$300,000 + (MXP 4,000,000 / $0.11) / (1.20) - [MXP 2,500,000 - (MXP 4,000,000 / $0.10)] / $0.12 / (1.20)NPV = -$61,500[/tex].
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3. Relationship between tax revenues, deadweight loss, and demandelasticity The government is considering levying a tax of $80 per unit on suppliers of either leather jackets or smart phones. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for leather jackets is shown by (on the first graph), and the demand for smart phones is shown by (on the second graph). Suppose the government taxes leather jackets. The following graph shows the annual supply and demand for this good. It also shows the supply curve ( ) shifted up by the amount of the proposed tax ($80 per jacket). On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for leather jackets. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.
Tax revenue, deadweight loss, and demand elasticityThe taxation levied by the government on suppliers of either leather jackets or smartphones is $80 per unit.
The supply curve for each of these two goods is identical. The demand for leather jackets is shown on the first graph, and the demand for smartphones is shown on the second graph.
The graph shows the annual supply and demand for this good. It also shows the supply curve (S) shifted up by the amount of the proposed tax ($80 per jacket).
The green rectangle (triangle symbols) represents tax revenue for leather jackets, while the black triangle (plus symbols) represents the deadweight loss associated with the tax. The tax revenue will be generated by charging the tax on suppliers based on the amount of goods sold. If the government levies taxes on leather jackets, then it will result in a decline in demand for the product.
Consumers would have to pay an additional $80 for each leather jacket they purchase. As a result, the demand for leather jackets will fall. The decline in demand for leather jackets, as a result of the tax, causes a loss of consumer surplus. The deadweight loss is the reduction in total surplus caused by the tax, and the area of the black triangle (plus symbols) represents it.
It's the result of the misallocation of resources caused by the tax and represents the loss of value in trade. Taxation decreases total surplus in the market by more than the revenue generated by the tax (the area of the green rectangle or triangle symbols).The tax revenue earned by the government is used for social and economic development, and to meet its budgetary requirements.
The deadweight loss incurred by the economy is an inefficient allocation of resources. Therefore, the magnitude of deadweight loss and tax revenue generated would depend on the elasticity of demand. The more elastic the demand is, the greater the deadweight loss and the lower the tax revenue generated.
If the demand is inelastic, the revenue generated will be high, and the deadweight loss will be low. The government needs to consider these factors while formulating the tax policy to minimize the loss of welfare.
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the annual report for cornflower ranch disclosed that 1 billion shares of common stock have been authorized. at the beginning of 2017, 770 million shares had been issued and the number of shares in treasury stock was 99 million. during 2017, the only common share transactions were that 16 million common shares were reissued from treasury and 22 million common shares were purchased and held as treasury stock.
The annual report for Cornflower Ranch stated that 1 billion shares of common stock have been authorized. At the beginning of 2017, 770 million shares had been issued, and there were 99 million shares in treasury stock.
To understand the given information, let's break it down step by step:Authorized shares: The annual report states that 1 billion shares of common stock have been authorized. This means that the company is legally allowed to issue up to 1 billion shares.Issued shares: At the beginning of 2017, 770 million shares had been issued. Issued shares are the total number of shares that the company has actually sold or distributed to shareholders.Treasury stock: The report also mentions that there were 99 million shares in treasury stock. Treasury stock refers to the shares that the company has repurchased from the market. These shares are held by the company itself and are not considered outstanding.
This means that some of the shares held in treasury stock were put back into circulation and sold to new shareholders. Purchased shares: Additionally, during 2017, the company purchased 22 million common shares and held them as treasury stock. This means that the company bought back some of its own shares from the market and kept them in treasury.To summarize, the main information from the annual report is that 1 billion shares of common stock have been authorized. At the beginning of 2017, 770 million shares were issued, and 99 million shares were held in treasury stock. Throughout the year, 16 million shares were reissued from treasury, and 22 million shares were purchased and held as treasury stock.
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In Appendix D.2, a National Trade Show Services (NTSS) business is described in page 2. Suppose that currently the NTSS business is conducted manually. The company wants to develop a webbased online system to automate the business. This exercise is an individual assignment. a) From the business description, identify and list the most important business activities (at least 10) of the current business. These are the functions that the future system must provide b) Formulate 20 functional requirements. Three requirements under one business case will be considered as three requirements. For example, this will be counted as 3 functional requirements R1 The system shall allow a potential user to create an online account identified by a valid email address. R1.1 The system shall require the user to specify the account type (event organizer, exhibitor, speaker, or observer). Different types of account shall have different privileges. R1.2 The system shall send a temporary password to the email address. The temporary password must comply to commonly adopted password security rules. R1.3 The system shall require the user to change the temporary password at the first login. The new password must comply to commonly adopted password security rules. c) Derive use cases from the requirements specification and will be based on the business activities identified from part a. Specify ten high-level use cases. d) Draw use case diagrams for 5 of them.
The five use case diagrams, which are drawn for them are:
Create an account
Login
Account Type Selection
Schedule an event
Payment Management
Here are the most important business activities of the current business, which future systems must provide:
Marketing and sales
Client Management
Inventory Management
Services Management
Vendor Management
Financial Management
Information Management
Personnel Management
Product Management
Operations Management
Here are the functional requirements formulated:
R1 The system shall allow the user to register with a valid email ID.
R2 The system shall enable users to register as an event organizer, exhibitor, speaker, or observer.
R3 Each account type shall have unique privileges.
R4 A temporary password shall be delivered to the user's email address.
R5 The password must adhere to commonly adopted security policies.
R6 The user must alter the temporary password during the first login.
R7 The new password must meet the commonly adopted password security policies.
R8 The user can access the system via an internet-connected device.
R9 The system shall enable event organizers to schedule and handle events.
R10 The system shall provide exhibitors with a platform to submit exhibit details.
Here are the ten high-level use cases derived from the requirements specification:
Create an account
Login
Account Type Selection
Create a Vendor Account
Schedule an event
Exhibit Application
Speaker Application
View Events
View Products and Services
Payment Management
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Discuss how IKEA has changed its pricing strategy to enter
Bahrain based on the internal factors of IKEA and external factors
of Bahrain. (10 marks)
IKEA is a Swedish furniture company that has been providing its products to customers globally. IKEA's pricing strategies have been an essential aspect of the company’s growth.
Success and expansion into the international market. IKEA's pricing strategy is based on various internal and external factors that have impacted the company's pricing structure, including the entry into Bahrain.Let's discuss how IKEA changed its pricing strategy to enter Bahrain:External factors affecting IKEA's pricing strategy in Bahrain Bahrain has several external factors.
The company adjusted its pricing strategy based on external and internal factors to meet customer needs and gain more market share. The company’s low pricing strategy and high-quality products were the key to its success in Bahrain.
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________ is a metric used to assess the impact of an online ad. a) churn rate b) error rate c) click-through rate d) pagerank
c) click-through rate A metric is a quantifiable measurement used to assess performance, effectiveness, or impact in various fields, including business, marketing, and analytics.
A metric is a quantifiable measurement used to assess performance, effectiveness, or impact in various fields, including business, marketing, and analytics. Metrics provide objective data and insights that help evaluate progress towards goals, track performance over time, and make informed decisions. They can range from simple counts and ratios to more complex calculations and statistical indicators. Metrics serve as valuable tools for monitoring, analyzing, and optimizing processes, strategies, and outcomes. By selecting and analyzing the right metrics, organizations can gain valuable insights into their performance, identify areas for improvement, and make data-driven decisions to drive success and achieve desired outcomes.
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The operators of a manufacturing cell work out a more orderly arrangement for tool storage ahis a schedule to maintain cleanliness on a daily basis. These improvements are best described by which ingub to problem solving? A. 5 S. B. Poka yoke. C. Kaizen. D. PDCA. 19. The reason for using a team in solving problems is: A. Because it is important to promote teamwork. B. Because no individual knows as much as a team. C. Because it is easier to get employees to talk. D. Because teams are a waste. 20. Decision making is a critical task in a total quality setting because an organization cannot proceed until decisions are made. A. True. B. False. 23. Histograms are used to identify trends by charting data over a specified period of time. A. True. B. False. 24. The midsem exam scores for some GIMPA students are 52%,48%,65%,72%. Find the standard deviation. A. 10.177. B. 11.177. 52−59.25 C. 11.188. D. 10.188. 25. The monthly wages of the GIMPA students are GHC1320, GHC1260, GHC1300, GHC1380. What is the standard deviation of the wages? A. 50.0. B. 50.1. C. 50.2. D. 50.3. 26. Quality Function Deployment is a practice for designing your processes in response to customer needs. A. True. B. False.
The operators of a manufacturing cell work out a more orderly arrangement for tool storage and a schedule to maintain cleanliness on a daily basis. These improvements are best described by the term 5S.5S is a Japanese term for a workplace organization method that improves efficiency and effectiveness.
It stands for Sort, Set in Order, Shine, Standardize, and Sustain. The 5S methodology helps create a workplace that is well-organized, clean, and efficient, making it easier for employees to do their jobs without any hindrance.
5S focuses on improving the organization and standardization of the workplace by removing clutter, optimizing the use of space, and identifying and solving problems. The 5S approach is aimed at improving productivity and reducing waste by ensuring that everything has its place, and there is a place for everything.
Thus, The improvements of the operators of a manufacturing cell work out a more orderly arrangement for tool storage and a schedule to maintain cleanliness on a daily basis are best described by the term 5S.
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Fuente, Incorporated, has identified an investment project with the following cash flows. a.If the discount rate is 9 percent, what is the future value of these cash flows in year 4 ? b.What is the future value at a discount rate of 18 percent? c. What is the future value at discount rate of 27 percent?
Fuente, Incorporated, has an investment project with certain cash flows. The future value of these cash flows depends on the discount rate applied. By using different discount rates, we can calculate the future value of the cash flows in year 4. The discount rate represents the required rate of return or opportunity cost of capital.
a. To calculate the future value of the cash flows at a discount rate of 9 percent, we need to compound the cash flows over four years. The formula to calculate the future value is:
Future Value = Cash Flow * (1 + Discount Rate)^n
Substituting the values from the cash flows and the discount rate, and setting n = 4, we can calculate the future value.
b. Similarly, to calculate the future value at a discount rate of 18 percent, we use the same formula with the new discount rate.
c. Likewise, to calculate the future value at a discount rate of 27 percent, we use the formula with the given rate.
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c. The post-trade consumer surplus is $ 64 thousand and the post-trade producer surplus is $ 4 thousand. Consumers are better off after trade
The post-trade consumer surplus of $64 thousand and the post-trade producer surplus of $4 thousand indicate that consumers are better off after the trade.
Consumer surplus is the difference between what consumers are willing to pay for a product and what they actually pay. In this case, the post-trade consumer surplus of $64 thousand means that consumers are gaining $64 thousand worth of value from the trade. Producer surplus, on the other hand, is the difference between the price producers receive and the minimum price they are willing to accept. The post-trade producer surplus of $4 thousand means that producers are gaining $4 thousand worth of value from the trade.
The fact that the consumer surplus is much larger than the producer surplus implies that consumers are benefiting more from the trade. This could be because the trade allows consumers to obtain the product at a lower price than what they were willing to pay, resulting in a larger consumer surplus. On the other hand, the smaller producer surplus suggests that producers may be selling the product at a price lower than their minimum acceptable price, potentially reducing their overall benefit from the trade. In conclusion, the post-trade consumer surplus of $64 thousand and the post-trade producer surplus of $4 thousand indicate that consumers are better off after the trade, as they are gaining more value from it compared to producers.
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bticials in charge of televising an international chess competition in south America want to determine if the average time per move for the fop players has remained it 5 minutes over the last two yeass. Viseo tapes of matches which have been played over the two-year period are reviewed and a random sample of 49 moves are *imed, The sample mean k 4.5 minutes. Assume the population standard deviation is 3.7 minutes. Using the confidence interval approach, test the hypothesis that the averase ume per move is different from 5 minutes at a 0.01 significance level. Step 2 of 2 : Diaw a conclusion and interpret the decision, Answer Keyoodrd sthartcuts previons step anwer? Becamse the hypothesited value does not fall in the interval, we tar to reject the null hypothesis. There is not rifficient evidence at the 0.01 significance level that the 3veraget time per micive is difterent from 5 minutes. becwuse the hypothesized value falis in the imerval, we reject the nullypothesis. Thece is sufticient evidence at the 0.01 significance level that ithe average time per move is diferem from 5 minutes. Hecause the typothesited value fays in the confidence intervat, we fail to reject the nult tiypothesis. There is not suffichent evidence at the 0.01 significance teyel that The are trage lime per miove is different from 5 minutes the uveraknt time per mave is different from 5 ministet.
The conclusion based on the given information is: "Because the hypothesized value does not fall in the interval, we fail to reject the null hypothesis.
There is not sufficient evidence at the 0.01 significance level that the average time per move is different from 5 minutes." To test the hypothesis, a confidence interval is constructed using the sample mean, sample size, population standard deviation, and the desired significance level. In this case, the sample mean is 4.5 minutes, and the population standard deviation is 3.7 minutes. Since the confidence interval contains the hypothesized value of 5 minutes, we fail to reject the null hypothesis. This means that there is not enough evidence to conclude that the average time per move is different from 5 minutes. The confidence level chosen (0.01) indicates a high level of confidence in this decision.
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lostridium difficile Case Study 24-year-old woman suffered from recurrent severe episodes of an intestinal disorder called Clostridium difficile infection (CDI) for past 13 months. She routinely experienced profuse watery diarrhea, abdominal pain, and fever. In addition, she was feeling tired and hopeless because she did not seem to be gettering well, despite long attempts at multiple different treatments. As with most patients who have CDI, the woman had been taking an oral antibiotic shortly before her symptoms began - in this case to treat a tooth infection. The antibiotic had successfully killed that bacteria but caused her tooth infection, but it also killed some members of her normal intestinal microbiota. As a result, the bacterium Clostridium difficile - often referred to simply as "C. diff" – thrived in her intestinal tract, growing to much higher numbers than it could before. The strain that causes her infection was able to make a toxin that damaged the lining of her intestinal tract. When the patient first started experience CDI, her doctor told her to stop taking the antibiotic prescribed for her tooth infection, hoping that her CDI would resolve on its own. When that did not help, the doctor prescribed a different antibiotic that is often effective in treating CDI. The patient started feeling better, but the symptoms quickly returned when she stopped taking the medication. She also tried oral supplements containing Lactobacillus GG, a bacterium that sometimes appears to be effective in preventing antibiotic associated diarrhea. Because that patient's health was declining, doctors suggested a fecal transplant, p procedure that involves in inserting feces from a healthy person into the patient's intestinal tract in order to repopulate that environment with appropriate microbes. The chose to use her sister as a fecal donor, screening both the donor and the patient to ensure that neither was infected with certain infectious agents, including various intestinal pathogens and HIV. Approximately Y cup of fresh feces was mixed with 1 quarter of water and delivered to her intestinal tract via a colonoscope. Within days after the transplant, the patient began feeling better, and soon recovered completely. 1. Why would certain oral antibiotics allow Clostridium difficile thrive in the intestinal tract? 2. Why would the doctors screen both the patient and the decal donor for certain infectious agents? 3. Why would the doctors transplant feces rather than introducing isolated bacteria from feces to repopulate
1. Certain oral antibiotics allow Clostridium difficile to thrive in the intestinal tract because they kill the normal microbiota of the gut and create an imbalance in the gut microbiome that leads to the overgrowth of Clostridium difficile.
2. The doctors screen both the patient and the fecal donor for certain infectious agents to ensure that the fecal transplant does not transfer other pathogens, such as HIV, into the patient.
3. The doctors would transplant feces rather than introducing isolated bacteria from feces to repopulate because fecal transplant provides an entire ecosystem of microbes to the patient that interact and function together. The intestinal microbiota is a complex and dynamic community of microbes that perform vital functions such as breaking down food, producing vitamins and hormones, and regulating the immune system.
Fecal transplant aims to restore the balance and function of the gut microbiome, which can be difficult to achieve by introducing isolated bacterial species. Fecal transplant also provides more diversity in the gut microbiome, which has been associated with improved health outcomes.
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a production planning method is based on goods being produced based on forecasted customer demand?
The production planning method that is based on goods being produced based on forecasted customer demand is known as demand planning. It is the process of estimating future customer demand for a product or service in order to plan and optimize production, inventory, and supply chain operations. Demand planning is a critical aspect of production planning because it helps ensure that the right products are produced in the right quantities at the right time to meet customer demand.
Demand planning is a complex process that involves analyzing historical sales data, market trends, customer preferences, and other factors to develop a forecast of future demand. This forecast is used to create a production plan that outlines the quantity and timing of production, inventory levels, and supply chain requirements. The goal of demand planning is to minimize inventory costs while ensuring that customer demand is met.
In conclusion, demand planning is a production planning method that is based on goods being produced based on forecasted customer demand. It is a critical aspect of production planning that helps ensure that the right products are produced in the right quantities at the right time to meet customer demand. Demand planning involves analyzing historical sales data, market trends, customer preferences, and other factors to develop a forecast of future demand, which is used to create a production plan that outlines the quantity and timing of production, inventory levels, and supply chain requirements.
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what is it called when a seller-lender agrees to allow the conventional lender to become the senior lien holder?
Main Answer: The process where a seller-lender agrees to allow the conventional lender to become the senior lien holder is called subordination.
Subordination is a legal and financial agreement between parties involved in a real estate transaction. In this scenario, the seller-lender holds a lien on the property, typically due to seller financing or a carryback loan. However, when the buyer obtains a conventional loan from a traditional lender, the conventional lender may require the seller-lender to subordinate their lien.
By agreeing to subordination, the seller-lender allows the conventional lender to have a higher priority lien on the property. This means that in the event of foreclosure or default, the conventional lender will have the first right to recover the outstanding loan amount before the seller-lender. Subordination is usually necessary for the conventional lender to feel secure in their position and to protect their investment.
Subordination can benefit both parties involved. For the buyer, it allows them to secure financing from a traditional lender, often at more favorable terms and interest rates. For the seller-lender, subordination may increase the likelihood of the property sale, as it enables the buyer to obtain the necessary financing. However, it's important for the seller-lender to carefully consider the terms and conditions of subordination to ensure their interests are protected.
Overall, subordination is a legal mechanism that allows the conventional lender to become the senior lien holder, providing security for their loan while enabling the buyer to secure financing from a traditional lender.
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Maltby plc, a company quoted on London Stock Exchange, has been making regular annual after-tax profits of £7000,000 for some years and has the following long-term capital structure: The debenture issue is not due to be redeemed for some time and the company has become increasingly concerned about the need to continue paying interest at 16% when the interest rate on newly issued government stock of a similar maturity is only 7%. A proposal has been made to issue 2,000,000 new shares in a rights issue, at a discount of 20% to the current share price of Maltby plc, and to use the funds raised to pay off part of the debenture issue. The current share price of Maltby plc is ₫3.50 and the current market price of the debentures is £112 per ₫100 block. - Alternatively, the funds raised by the rights issue could be invested in a new project giving an annual after-tax return of 20%. Whichever option is undertaken, the stock market view of the company's prospects will be unchanged and its P/E ratio will remain unchanged. Maltyby plc pays corporation tax at a rate of 31%. - By considering the effect on the share price of the two alternative proposals, discuss whether the proposed rights issue can be recommended as being in the best interests of the ordinary shareholders of Maltby plc. Your answer should include all relevant calculations.
The proposed rights issue can be recommended as being in the best interests of the ordinary shareholders of Maltby plc.
Given:
Annual after-tax profits = £7000000
Debentures interest rate = 16%
Newly issued government stock interest rate = 7%
Number of new shares proposed = 2000000
Discount offered on new shares = 20%
Current share price = £3.50
Current market price of debentures = £112 per £100 block
Tax rate = 31%
Now, we need to evaluate whether the proposed rights issue can be recommended as being in the best interests of the ordinary shareholders of Maltby plc.
Effect of both the options on the share price will be evaluated.1. Paying off part of the debenture issue with funds raised from new share issue
The total funds raised from 2,000,000 new shares = 2,000,000 × (£3.50 × 0.80) = £5,600,000Tax paid on funds raised = 0.31 × £5,600,000 = £1,736,000Funds remaining after tax = £5,600,000 − £1,736,000 = £3,864,000Number of blocks of debentures to be paid off = 3,864,000/112 = 34,500
New debenture interest payments to be made each year = 48,500 blocks × £100 × 0.16 = £776,000
Net annual cash inflow after payment of debenture interest = £7,000,000 − £776,000 = £6,224,000
Total shares in the market after the new shares are issued = 25,000,000 + 2,000,000 = 27,000,000
Current Earnings per share = £7,000,000 ÷ 25,000,000 = £0.28
New Earnings per share = £6,224,000 ÷ 25,000,000 = £0.248
The new P/E ratio would be: 3.50/0.248 = 14.11
New share price would be: 0.248 × 14.11 = £3.50The change in share price would be 0%.
2. Invest funds in a new project with annual after-tax return of 20%Funds raised from 2,000,000 new shares = 2,000,000 × (£3.50 × 0.80) = £5,600,000
Tax paid on funds raised = 0.31 × £5,600,000 = £1,736,000
Funds remaining after tax = £5,600,000 − £1,736,000 = £3,864,000
Net annual return from the new project = £3,864,000 × 0.2 = £772,800
Net annual cash inflow = £7,000,000 + £772,800 − (48,500 blocks × £100 × 0.16) = £7,556,800
Total shares in the market after the new shares are issued = 25,000,000 + 2,000,000 = 27,000,000
Current Earnings per share = £7,000,000 ÷ 25,000,000 = £0.28
New Earnings per share = £7,556,800 ÷ 25,000,000 = £0.302
The new P/E ratio would be: 3.50/0.302 = 11.59
New share price would be: 0.302 × 11.59 = £3.50
The change in share price would be 0%.
Therefore, the proposed rights issue can be recommended as being in the best interests of the ordinary shareholders of Maltby plc.
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Research one example where a generic drug helped to drive costs of a brand name drug down. Post what the drug was, what the generic was and how bong it took to create the alternative. Also, describe ary interesting issues that came up during this generic drug development; examples could include eatent issues, harmful side effects, patient response, hurting of the brand name drug company stock $, but other issues can be analyzed as well SAGE
A generic drug is identical to the brand-name drug in dosage, strength, route of administration, quality, intended use, and side effects. In this sense, it is equivalent in terms of safety, strength, quality, and performance.
It also generates considerable cost savings, as the generic version is usually less expensive than the brand-name equivalent. One example of a generic drug driving down the cost of a brand-name drug is the case of Lipitor. It is one of the world's most widely used cholesterol-lowering medications.
It was created by Pfizer, who held the patent for the drug until 2011. In 2011, the company lost the patent for Lipitor, and other firms began developing generic versions. As a result, the cost of Lipitor went down by 80%.The generic version of Lipitor is called atorvastatin. There are several other companies that produce this generic.
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A firm has a 7% coupon bond outstanding that matures in 14years. the bond paysinterest semiannually. face value is $1000 and YTM is 16.5%. what is the market price per bond?
The expression 1/(1+r)^t relates to the future value factor
True/false
A firm just paid a 1.35 annual dividend. dividends are expected to increase by 2.9% annually, and the rate of return is 15.75 How much you pay for this stock today?
`12.75
11.7
10.81
11.17
12.46
The calculation for a bond's present value can be used to get the market price per bond: Bond market prices are calculated as follows: face value / (1 + YTM/2)(2*t) + coupon payment / (1 + YTM/2)(2*t).
We may determine the coupon payment as follows: Coupon payment = 0.07 * $1000 = $70 given that the coupon payment is 7% of the $1000 face value. Market price per bond = ($70 / (1 + 0.165/2)(2*14) + ($1000 / (1 + 0.165/2)(2*14)) substituting the values The current market price for each bond is roughly $648.81. The current value factor, not the future value factor, is what the formula 1/(1+r)t refers to. Therefore, the claim is untrue. The dividend discount model (DDM), which we can use to determine the stock price: Dividend per (Rate of return - Dividend growth rate) = Stock Price Substituting the values displayed: Price of a share equals $1.35 / (0.1575-2.009) The current stock price is about $12.75. Therefore, $12.75 is the right answer.
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1. Uber branching into food delivery, freight delivery, e-bikes, and car leasing (similar but different from their core business as a taxi service) is an example of Uber creating ___. (see possible answers below)
2. If drivers of Uber’s freight delivery service need different skills than those delivering food from restaurants, it means those workers require _____. (see below)
3. Uber’s ill-fated expansion internationally is an example of trying to create more ____. (see below)
4.Stating with certainty that Uber’s stock price fall the day after the assigned article was published could be an example of ___ (see below)
5. An Uber freight driver has a special license and skills for driving freight, a food delivery driver as different skills. This is an example of ___.
(Possible Answers: Specialization, Division of Labor, Economies of Scale, Economies of Scope, Post Hoc Fallacy, Scarcity, Dunning–Kruger effect )
1. Uber branching into food delivery, freight delivery, e-bikes, and car leasing (similar but different from their core business as a taxi service) is an example of Uber creating Economies of Scope.
Uber created economies of scope by branching out into new sectors of business that complement their primary business model and offer opportunities to use existing infrastructure.
2. If drivers of Uber’s freight delivery service need different skills than those delivering food from restaurants, it means those workers require specialization. Specialization is the concept of separating work into smaller, more specialized tasks to increase efficiency and productivity. Uber uses specialization to ensure that workers with specific skills are assigned to the right job.
3. Uber’s ill-fated expansion internationally is an example of trying to create more Economies of Scale. Economies of scale are cost savings achieved when a company produces more goods or services and decreases its average cost per unit. Uber expanded internationally to increase its reach and reduce the average cost per ride.
4. Stating with certainty that Uber’s stock price fall the day after the assigned article was published could be an example of Post Hoc Fallacy.
5. An Uber freight driver has a special license and skills for driving freight, a food delivery driver has different skills. This is an example of Division of Labor. Division of labor is the process of dividing work into smaller, more specialized tasks, each performed by a separate worker.
By dividing work into smaller tasks and assigning workers to specific roles, Uber ensures that drivers have the skills necessary to perform their jobs at the highest level.
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Which of the following would most likely increase the Zhejun Corporation's net profit margin ratio? Mulliple Choice A decrease in the overall sales volume. An increase in the unit selling price. An increase in cost of goods sold. An increase in operating expenses.
An increase in the unit selling price is the option among those presented that would most likely result in a higher net profit margin ratio for Zhejun Corporation. By dividing net profit by net sales, the net profit margin ratio is determined.
By raising the unit selling price, the business can sell more units while earning more money from each one, which could boost net profit. For this reason, even while the increased selling price has no immediate effect on the cost of goods sold or operating expenses, it nevertheless helps to increase sales income. On the other hand, a decline in overall sales volume, an increase in cost of goods sold, or an increase in operating expenses would typically have a detrimental effect on the net profit margin ratio, as they all affect the company's ability to make a profit. would make the business less profitable.
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1) how do projects differ from operations? a) they have a set budget. b) they produce a unique product. c) they have a deadline. d) they have cross-functional teams.
The projects differ from operations because they produce a unique product. The correct option is b.
A project is a brief activity begun with the goal of producing a unique result. The ongoing application of actions that take place after a product is made to create the same end or a repeated service is referred to as operations. Projects are time-bound and have start and finish dates. Operations are the daily chores that ensure the company's smooth running. All endeavours, whether short-term or long-term, must come to an end. In contrast, operations are ongoing.
Projects provide a one-of-a-kind product, service, or outcome, whereas operations produce the same product, strive to make a profit, and keep the system going.
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Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The FW of the following engineering project is ? (Round to the nearest dollar.)
As the interest and annuity table for discrete compounding when the MARR is 13% per year is not given in the question, it is difficult to calculate the future worth (FW) of the engineering project. However, I can explain the formula used to calculate the future worth of a project and the concept of MARR.
The future worth (FW) is the sum of the present worth (PW) and the compound interest earned on it. The formula to calculate the future worth (FW) of a project is:
FW = PW(1 + i)n
Where,
PW = Present worth of the project
i = Interest rate per compounding period
n = Number of compounding periods
The Minimum Acceptable Rate of Return (MARR) is the lowest rate of return or the minimum rate of return that an investor expects from an investment to compensate them for the time, opportunity cost, and risk involved in the investment. In other words, it is the minimum rate of return that a company or investor will accept for investing in a project or an investment opportunity.
In the given question, the interest and annuity table for discrete compounding when the MARR is 13% per year is not given, so it is impossible to calculate the future worth (FW) of the engineering project.
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Write a reflective journal about your understanding of
the Planning Process Group of Risk Management knowledge area.
Weitage 15% from final score.
As a reflective journal about my understanding of the Planning Process Group of Risk Management knowledge area, I have gathered significant knowledge about the concepts of risk management planning and how to use it.
In simple terms, the planning process group for risk management is a powerful tool that allows project managers to develop strategies and create ways to manage risks associated with projects.
The planning process group involves multiple steps that include risk management planning, risk identification, risk analysis, risk response planning, and risk control.
These steps will enable the project managers to understand the risk scope, plan accordingly, and take proactive measures to mitigate the risk. Risk management planning is a crucial step in this process as it provides the foundation for creating an effective risk management plan.
It is during this stage that a project manager can determine the level of risk exposure and devise a plan to handle them. Additionally, the risk management plan includes essential elements such as risk assessment criteria, the roles and responsibilities of team members, risk reporting procedures, and risk management budget.
Furthermore, risk identification is another critical step of the planning process group. It is here that a project manager must identify all potential risks that could negatively impact the project and its outcomes.
In conclusion, my understanding of the Planning Process Group of Risk Management knowledge area is that it is a critical step in managing project risks.
It ensures that project managers have the necessary strategies and plans to mitigate risk factors that could cause a project to fail.
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builder jim will receive a payment of $60,000 when the foundation, rough plumbing, subfloor, and framing are completed. what type of payment schedule is builder jim on?
Builder Jim is on a milestone payment schedule, where he receives $60,000 upon completing specific construction milestones.
Based on the information provided, Builder Jim is on a milestone payment schedule. The payment of $60,000 is tied to the completion of specific milestones in the construction process, namely the foundation, rough plumbing, subfloor, and framing.
Once these milestones are completed, Builder Jim is eligible to receive the payment. This type of payment schedule ensures that payments are made at key stages of the construction project, providing a measure of control and accountability for both parties involved.
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Ethical behavior is essential to the conduct of business activity Consider each of the following business behaviors:
Required:
Identify each behavior as ethical or unethical
a. A manager prepares financial statements that grossly overstate the performance of the business
b. A CPA resigns from an audit engagement rather than allow a business client to violate an accounting standard.
An internal auditor decides against confronting an employee of the business with minor violations of business policy. The employee is a former college classmate of the
auditor
d. An accountant advises his client on ways to legally minimize tax payments to the government.
6. A manager legally reduces the price of a product to secure a larger share of the market.
f. Managers of several large companies secretly meet to plan price reductions designed to drive up-and-coming competitors out of the market.
g. An accountant keeps confidential details of the employer's legal operations that would be of interest to the public.
h. A recently dismissed accountant tells comperors details about her former employer's operations as she seeks a new job
Ethical behavior is essential to the conduct of business activity. Here is the identification of each behavior as ethical or unethical:a. A manager prepares financial statements that grossly overstate the performance of the business.
It is considered an unethical behavior because preparing false financial statements is an act of fraud and can lead to legal action.Managers of several large companies secretly meet to plan price reductions designed to drive up-and-coming competitors out of the market.
It is considered an unethical behavior because this is an illegal antitrust practice that is aimed to reduce competition in the market. A recently dismissed accountant tells comperors . It is considered an unethical behavior because it violates the confidentiality agreement between the employer and the accountant.
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Identify THREE types of nonbulk packaging that can be used to hold small quantities of hazardous materials:
a. Metal drums b. Multi-walled paper bags c. Cardboard boxes
Metal drums are commonly used to store and transport hazardous materials in small quantities. Fiberboard drums, also known as composite drums, are constructed from fiberboard materials, usually reinforced with a metal or plastic lining.
Three types of non-bulk packaging that can be used to hold small quantities of hazardous materials are:
a. Metal drums: Metal drums are commonly used to store and transport hazardous materials in small quantities. They provide durability, strength, and resistance to leakage or damage. Metal drums are often made of steel or aluminum and are designed to meet specific regulatory standards for the safe handling and containment of hazardous substances.
b. Fiberboard drums: Fiberboard drums, also known as composite drums, are constructed from fiberboard materials, usually reinforced with a metal or plastic lining. These drums offer a lightweight yet sturdy packaging solution for small quantities of hazardous materials. Fiberboard drums are designed to meet regulatory requirements and provide a reliable barrier against leaks or spills.
c. Plastic jerricans: Plastic jerricans are containers made of sturdy plastic material, often high-density polyethylene (HDPE). They are commonly used for storing and transporting small amounts of hazardous liquids or chemicals. Plastic jerricans are lightweight, resistant to corrosion, and have tight sealing capabilities, making them suitable for safe storage and handling of hazardous substances.
It is important to note that the selection of packaging for hazardous materials should comply with relevant regulations and industry standards to ensure proper containment and minimize risks associated with handling and transportation.
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Compute the non-compounded annualized inflation adjusted rate of return for the following investment held for 4 years.
Initial Investment Value: $4,000
Ending Investment Value: $3,600
Dividends Received Over The Period: $800
Inflation Rate Over The Period: 4%
A. -1.00%
B. +1.00%
C. +1.50%
D. +2.50%
The non-compounded annualized inflation-adjusted rate of return for the investment is -1.00%.Therefore, the correct answer is A. -1.00%.
To calculate the non-compounded annualized inflation-adjusted rate of return, we need to adjust the ending investment value and dividends received for inflation.
Adjusted Ending Investment Value = Ending Investment Value / (1 + Inflation Rate)
Adjusted Ending Investment Value = $3,600 / (1 + 0.04) = $3,461.54
Adjusted Dividends Received = Dividends Received Over The Period / (1 + Inflation Rate)
Adjusted Dividends Received = $800 / (1 + 0.04) = $769.23
Total Adjusted Value = Adjusted Ending Investment Value + Adjusted Dividends Received
Total Adjusted Value = $3,461.54 + $769.23 = $4,230.77
Non-compounded annualized inflation-adjusted rate of return = (Total Adjusted Value / Initial Investment Value)^(1/number of years) - 1
Non-compounded annualized inflation-adjusted rate of return = ($4,230.77 / $4,000)^(1/4) - 1 ≈ -0.0100 or -1.00%
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In the long run, a shift to the right of the market demand curve in a perfectly competitive market the market until the last firm makes long-run profit. forces firms to exit; zero attracts firms to enter; positive attracts firms to enter; zero forces firms to exit; negative
In a perfectly competitive market, a shift to the right of the market demand curve in the long run is likely to attract firms to enter the market until the last firm makes a long-run profit. This is because the increase in demand implies that the equilibrium price will increase, which will make the profits of firms rise.
As such, new firms will be attracted to the market, hoping to take advantage of the higher profits. Eventually, the entry of new firms will cause the market supply curve to shift to the right, leading to a decrease in the equilibrium price.
If the price decreases to the point where firms are no longer making a profit, some firms will be forced to exit the market. This exit of firms will cause the market supply curve to shift to the left, leading to an increase in the equilibrium price.
The equilibrium price will continue to rise until the last firm in the market makes a long-run profit. Therefore, a shift to the right of the market demand curve in a perfectly competitive market is likely to attract firms to enter the market until the last firm makes a long-run profit.
This is because the equilibrium price will increase, leading to higher profits for firms and attracting new entrants. Eventually, the entry of new firms will lead to a decrease in the equilibrium price, causing some firms to exit the market.
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Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of four values nexis $145 million, $140 million, $100 million, and $80 million. These outcomes are all equally likely, and this risk is diversifiable. Gladstone will not make any to investors during the year. Suppose the risk-free interest rate is 5.5% and assume perfect capital markets. a. What is the initial value of Gladstone's equity without leverage? Now suppose Gladstone has zero-coupon debt with a $100 million face value due next year. b. What is the initial value of Gladstone's debt? c. What is the yield-to-maturity of the debt? What is its expected return? d. What is the initial value of Gladstone's equity? What is Gladstone's total value with leverage? a. What is the initial value of Gladstone's equity without leverage? The initial value of Gladstone's equity without leverage is $ million. (Round to two decimal places.) Now suppose Gladstone has zero-coupon debt with a \$100 million face value due next year. b. What is the initial value of Gladstone's debt? The initial value of Gladstone's debt is $ million. (Round to two decimal places.)
The initial value of Gladstone's equity without leverage: It is given that Gladstone Corporation is about to launch a new product and may have one of four values nexis $145 million, $140 million, $100 million, and $80 million.
These outcomes are all equally likely, and this risk is diversifiable. To find the initial value of Gladstone's equity without leverage, we use the following formula:$$. Initial value\ of\ Equity = \frac{Net\ Value\ of\ Assets}{Number\ of\ Shares}
$$.
The net value of assets for Gladstone Corporation with the given values of nexis will be:[tex]$Net\ Value\ of\ Assets = \frac{1}{4}(145 + 140 + 100 + 80) = 116.25$$[/tex] Given that there are no dividends paid out to the investors, therefore the total number of shares will be equivalent to the total equity shares that Gladstone Corporation has.
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you are working in a supply chain department for Zara, and you are
setting a new strategy/plan for opening a new store in
Windsor?
As a member of Zara’s supply chain team, developing a new strategy for opening a store in Windsor will require extensive planning and preparation. The following are the critical factors that should be considered to ensure a successful store opening.
Logistics planning: The first critical aspect of preparing a strategy for opening a new store in Windsor would be planning for logistics. This includes determining the most efficient transportation and shipping methods, analyzing distribution channels, and identifying the most optimal warehousing facility to store goods before shipping them to the new store.
Inventory management: Efficient management of inventory levels is vital to ensuring a smooth store opening. This includes analyzing customer demand patterns, ordering inventory on time, and maintaining adequate safety stock.
Supplier management: Zara's supply chain department should develop a system of supplier management that enhances relationships with suppliers, and regularly audits their performance.
Quality control: Ensuring that every item sold in the new store is of the highest quality is essential for building trust with customers. The supply chain department needs to implement rigorous quality control measures throughout the supply chain.
Cost management: Zara’s supply chain department should analyze every aspect of the supply chain and identify opportunities for cost reduction.
ConclusionIn conclusion, opening a new store in Windsor requires an in-depth analysis of logistics planning, inventory management, supplier management, quality control, and cost management. The supply chain department should work closely with other teams to ensure that all aspects of the new store opening are well-planned, coordinated, and executed.
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Maria Jensen, an insurance agent, earns a 40% commission on her sales. If Maria earned a commission of $1,500 in her first week on the job, what were her total sales for the week?
Maria Jensen is an insurance agent who earns a commission of 40% on her sales. In her first week on the job, Maria earned a commission of $1,500.
We can solve the problem by using the formula below;
C = P x Rwhere;C = Commission earnedP = Total salesR = Commission rate
Maria's commission rate is 40%. That means the commission she earned represents 40% of the total sales.
We can represent the total sales with the letter "S." We can,
herefore, write an equation below to represent the information given in the problem;
1,500 = 0.40S
We can solve for S by dividing both sides of the equation by 0.40;1,500/0.40 = S3750 = S
Total sales for the week were $3,750.
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