X2 issued callable bonds on January 1, 2021. The bonds pay interest annually. X2 issued the bonds at a premium.What are callable bonds?
Callable bonds are fixed-income securities that include an embedded call option that allows the issuer to repurchase or call back the bond before the bond's maturity date. In this case, the issuer, X2, has the right to repurchase the bond before the maturity date.Callable bonds come with a yield advantage.
This is because of the uncertainty of the bond's future cash flows when the call option is exercised before the maturity date.The price of callable bonds may differ from that of the bond's face value. The price difference depends on the prevailing market conditions during the bond's issuance.
Callable bonds may be issued at a discount or a premium. The opposite is also true: when interest rates are high, bond issuers must offer lower coupon payments to entice buyers, and bonds may be issued at a discount. In conclusion, X2 issued callable bonds at a premium.
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What is "sustainable growth" and how does it relate to
traditional and conscious capitalism?
Is this concept important? Why? Why not?
Sustainable growth is an economic development model that is both environmentally sustainable and socially responsible. It emphasizes responsible use of natural resources, the reduction of carbon emissions, and the creation of environmentally friendly products and services.
Sustainable growth's objective is to provide long-term development prospects by investing in businesses that take environmental and social considerations into account as part of their decision-making processes. Sustainable growth is critical for the continuation of healthy economic development in the future. Conscious capitalism, like sustainable growth, is a concept that values the environment and social welfare over pure financial profit. It's a business model in which organizations focus on more than just profit-making and seek to have a positive impact on the world by encouraging corporate social responsibility.
In short, the concept of sustainable growth is essential because it promotes responsible economic development that contributes to long-term environmental and social sustainability. By utilizing this model, businesses can remain competitive in a changing world while also meeting the needs of consumers who are becoming more environmentally and socially conscious.
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Visit the Observatory of Economic Complexity website. Identify a good/service that Viet Nam exports (other than petroleum products). Select carefully as you will need to determine the value of a unit of this good/service.
A buyer in Viet Nam wants to use countertrade with the good/service you selected above for export goods from Your State that have a landed cost of US$25,000. What quantity of good/service do you recommend the US company request from the buyer to get US$25,000 worth? Include information that supports your recommendation.
The good that Vietnam exports, other than petroleum products, is integrated circuits.
According to the Observatory of Economic Complexity, in 2019, integrated circuits were Vietnam's largest export ($21.9B), accounting for 20% of the country's total exports.
Therefore, the good/service I would recommend the US company request for countertrade is integrated circuits. To determine the value of a unit of integrated circuits, we would need to consult current market data. Unfortunately, we do not have this information at the moment.
According to the question, a buyer in Vietnam wants to use countertrade with the selected good/service for export goods from Your State that have a landed cost of US$25,000.
To determine the quantity of integrated circuits that the US company should request from the buyer, we can use the following formula:
Quantity = Total Value of Export Goods / Value of a Unit of Integrated Circuits
Thus, we need to divide the total value of the export goods ($25,000) by the value of a unit of integrated circuits (which we do not have at the moment) to get the recommended quantity.
For example, if the value of a unit of integrated circuits is $2, then the recommended quantity would be 12,500 units (as 12,500 x $2 = $25,000).
Therefore, the recommended quantity of integrated circuits depends on the current market value of a unit of integrated circuits.
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The operations and implementation departments would like you to go over the following sections of the business plan:
Operations Management and Implementation Plan
Evaluation Plan
Based on your research, write a succinct analysis of each of the following items:
Operations Management and Implementation Plan
Outline Goals and Objectives
Assign Responsibilities
Implementation Schedule
Resource Allocation
Evaluation Plan
Define Metrics
Contingency Plan
Operations Management and Implementation Plan
Outline Goals and Objectives: Goals and objectives must be established in order to have a clear understanding of what is expected of operations management. A clear outline of goals and objectives can help operations management to stay on track.
Assign Responsibilities: Clearly outline the roles and responsibilities of each person involved in the implementation of the plan.
Implementation Schedule: Establish a schedule for the implementation of the plan. This will help ensure that each task is completed in a timely manner.
Resource Allocation: Resources must be allocated in order to meet the objectives of the plan. This includes people, equipment, and materials.
Evaluation Plan Define Metrics: Define the metrics that will be used to measure the success of the plan.
Contingency Plan: Develop a contingency plan in case any problems arise during the implementation of the plan.
The operations and implementation departments need an analysis of the Operations Management and Implementation Plan and Evaluation Plan. In an Operations Management and Implementation Plan, outlining goals and objectives helps the operations management stay on track. Assigning responsibilities can help each person understand what is expected of them. Implementation schedules can help ensure that each task is completed in a timely manner. Resource allocation includes the allocation of people, equipment, and materials. On the other hand, the Evaluation Plan should define metrics that will be used to measure the success of the plan. A contingency plan should be developed in case any problems arise during the implementation of the plan.
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The following document includes pictures regarding the international strategies employed by some multinationals: Walmart in China, 15 flavors of Kit Kat in Japan, P&G's powder detergent in Europe, McDonald's menus from around the world, and Dell. Which of these companies do you think follow a global strategy? Explain. International Strategy.pdf
The multinational companies Walmart, Kit Kat, P&G, McDonald's, and Dell have adopted international strategies. Global strategy is an approach to product development and marketing that considers the whole world as a single market and sells the same product in the same manner across all geographical regions.
When compared to a localized approach that concentrates on local markets, this is more expensive, but it is also more profitable. A global strategy would include standardizing a company's product offering, distribution channels, and advertising methods across the globe. Of all the firms mentioned in the report, Walmart appears to be following a global strategy.
Walmart is the world's biggest retail company, with over 11,000 locations in 27 countries. Walmart is a well-known brand worldwide, and its retail approach and operating style are similar across the globe.
Walmart's standardized global approach has enabled it to reduce operating expenses, decrease time to market, and achieve efficiency and consistency in its operations across various markets. Walmart was a latecomer to China, having only established a foothold there in the 1990s.
Walmart began by establishing relationships with local vendors in China and providing them with the necessary knowledge and skills to improve their production capabilities. Walmart now operates 432 stores in China and is one of the country's biggest supermarket chains.
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Which of the following topics is a macroeconomic subject? the advertising strategy of a particular automobile firm the unemployment rate of the United States economy as a whole a proposed merger between two companies the level of Christmas sales at a particular department store
Macroeconomics is a branch of economics that looks at the behavior and performance of the entire economy, rather than specific industries or companies. Macroeconomic subjects cover broad themes such as inflation, GDP, and unemployment.
Unemployment rate of the United States economy as a whole is a macroeconomic subject that is used to measure the labor market of the country.In economics, macroeconomics is a branch of economics that deals with the economy as a whole, rather than just specific markets. Macroeconomics covers broad topics such as economic growth, inflation, GDP, and unemployment. These themes are more abstract and broad-based than microeconomics, which is more focused on individual markets, products, or industries.
The unemployment rate of the United States economy as a whole is a macroeconomic subject that is used to measure the labor market of the country. It is calculated by dividing the number of unemployed persons by the total number of people in the labor force. This measure is an important indicator of the health of the overall economy. If unemployment rates are high, it is a sign that there is slack in the labor market, which can depress wages and limit economic growth. Therefore, macroeconomic subjects such as unemployment rates are important indicators for economists, policymakers, and business leaders.
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what+is+the+present+value+of+an+iou+for+$1,000+due+to+be+paid+in+two+years,+if+the+discount+rate+is+8%?
The present value of the IOU for $1,000 due to be paid in two years, with a discount rate of 8%, is approximately $857.34.
The present value of an IOU (or any future cash flow) can be calculated using the formula for present value:\
PV = FV / (1 + r)^n
Where:
PV = Present value
FV = Future value (amount of the IOU)
r = Discount rate (interest rate)
n = Number of periods (in this case, years)
Using the given information:
FV = $1,000
r = 8% = 0.08
n = 2
Plugging these values into the formula:
PV = $1,000 / (1 + 0.08)^2
PV = $1,000 / (1.08)^2
PV = $1,000 / 1.1664
PV ≈ $857.34
Therefore, the present value of the IOU for $1,000 due to be paid in two years, with a discount rate of 8%, is approximately $857.34. This represents the current worth of the IOU if we consider the time value of money and discount it back to the present.
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Complete Question:
what is the present value of an iou for $1,000 due to be paid in two years, if the discount rate is 8%?
a stock that pays out a perpetual stream of constant dividends can be valued as a(n)
A stock that pays out a perpetual stream of constant dividends can be valued as a perpetuity.What is a perpetuity?A perpetuity is a type of financial instrument that pays an unending amount of money to its holder.
This means that the cash flow will never end. These investments are often used for their stability because of their steady cash flows.
What are Constant Dividends?Dividends that are paid at regular intervals and have the same dollar amount each time they are paid are known as constant dividends.
This means that the dividend payment is the same for each period and will never change. An investor looking to buy a share with constant dividends wants to ensure that the dividend will continue indefinitely and not fluctuate.
In conclusion, if a stock pays out a perpetual stream of constant dividends, then it can be valued as a perpetuity. A perpetuity is an investment that provides regular payments that continue forever.
If we assume that dividends are paid out perpetually, the present value of a constant dividend can be calculated using the perpetuity formula as:PV = D/RWhere PV is the present value of the investment, D is the annual dividend payment, and R is the discount rate.
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Presented below is the five-year financial data of a small-scale engineering contracting company in Khobar (Company A) relating to the assets the company owns, liabilities the company owes, the equity the company owes to its owners, costs incurred, and revenue generated. \begin{tabular}{|l|c|c|c|c|c|} \hline Financial Items & 31−Dec−14 & 31−Dec−15 & 31−Dec−16 & 31−Dec−17 & 31−Dec−18 \\ \hline Accounts payable & 1800000 & 1530000 & 1980000 & 1440000 & 2250000 \\ \hline Accounts receivable & 3500000 & 2975000 & 3850000 & 2800000 & 4375000 \\ \hline Accrued expenses & 350000 & 297500 & 385000 & 280000 & 437500 \\ \hline Accumulated depreciation & 4000000 & 3400000 & 4400000 & 3200000 & 5000000 \\ \hline Cash & 1750000 & 1487500 & 1925000 & 1400000 & 2187500 \\ \hline Common equity & 4800000 & 4080000 & 5280000 & 3840000 & 6000000 \\ \hline Cost of goods sold & 12000000 & 10200000 & 13200000 & 9600000 & 15000000 \\ \hline Prepaid expenses & 1500000 & 1275000 & 1650000 & 1200000 & 1875000 \\ \hline Insurance fees & 400000 & 340000 & 440000 & 320000 & 500000 \\ \hline Preferred Stocks & 2200000 & 1870000 & 2420000 & 1760000 & 2750000 \\ \hline Income taxes & 1200000 & 1020000 & 1320000 & 960000 & 1500000 \\ \hline Interest expense & 700000 & 595000 & 770000 & 560000 & 875000 \\ \hline Inventories & 2250000 & 1912500 & 2475000 & 1800000 & 2812500 \\ \hline Long-term debt & 7000000 & 5950000 & 7700000 & 5600000 & 8750000 \\ \hline Selling expenses & 300000 & 255000 & 330000 & 240000 & 375000 \\ \hline Marketable securities & 3000000 & 2550000 & 3300000 & 2400000 & 3750000 \\ \hline Subcontractors' fees & 1800000 & 1530000 & 1980000 & 1440000 & 2250000 \\ \hline Dividend payable & 1800000 & 1530000 & 1980000 & 1440000 & 2250000 \\ \hline Plant \& equipment & 12000000 & 10200000 & 13200000 & 9600000 & 15000000 \\ \hline Revenues & 20000000 & 17000000 & 22000000 & 16000000 & 25000000 \\ \hline Short-term notes payable & 2050000 & 1742500 & 2255000 & 1640000 & 2562500 \\ \hline \end{tabular} The data is required for preparing financial statements balance sheets and income statements of the company's performance within the five-year time frame (December 2014 to December 2018)
The following details are provided for each year in the financial statistics for Company A, a modest engineering contracting business in Khobar:
1. Accounts payable: The sum that the business owes to its vendors and suppliers. The values are as follows for each year: 31-Dec-14: $1,800,000December 31, 2015: $1,530,000 - December 31, 2016, $1,980,000 - December 31, 2017, $1,440,000 - December 31, 2018, $2,250,0002. Accounts receivable: The sum that customers owe the business for goods or services purchased or provided. The values are as follows for each year: December 31, 2014: $3,500,000 - December 31, 2015: $2,975,000 - December 31, 2016, $3,850,000 - December 31, 2017, $2,800,000 - December 31, 2018, $4,375,000 Accrued costs: Costs that have been incurred but not yet reimbursed.
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ch 10 ap. half foods expects to make the following inventory purchases during the last three months of the year: month purchases october $80,000 november 100,000 december 160,000 during september, half foods purchased $72,000 of inventory. the restaurant typically pays for 25% of the inventory purchases within the month of the purchase and 75% in the following month. how much are estimated cash disbursements in november for inventory purchases?
The estimated cash disbursements in November for inventory purchases are $85,000.
The estimated cash disbursements in November for inventory purchases can be calculated by considering the payment terms and the purchases made in the previous months.To calculate the estimated cash disbursements in November, we need to determine the amount of inventory purchases made in October and November that will be paid in November. In October, the inventory purchases were $80,000. In November, the inventory purchases were $100,000.
To calculate the estimated cash disbursements, we considered the payment terms and the purchases made in October and November. The portion of purchases made in October that will be paid in November is determined by multiplying the total purchases in October by 75%. The portion of purchases made in November that will be paid in November is determined by multiplying the total purchases in November by 25%. The total estimated cash disbursements in November are calculated by adding these two amounts together.
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When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a a generic name b. product liability issue. c. universal product code. d. trademark
A. generic name When a brand becomes commonplace and identified with a category of goods rather than a specific manufacturer, it may become a generic name.
Generic names are common or generic terms used to refer to a general product category rather than a specific brand. For example, "aspirin" and "escalator" were once protected trademarks but have become generic names that refer to a type of product rather than a specific brand. This transformation poses a challenge for trademark owners as they risk losing their exclusive rights to the brand name and the associated brand recognition. Genericization occurs when a brand name becomes so widely used that it is no longer associated solely with a specific brand but is used generically to describe similar products. In contrast, product liability issues refer to legal concerns related to the safety and liability of a product, while universal product codes are barcode symbols used for product identification and tracking.
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a. Net income was $473,000.
b. Issued common stock for $79,000 cash.
c. Paid cash dividend of $15,000.
d. Paid $125,000 cash to settle a note payable at its $125,000 maturity value.
e. Paid $116,000 cash to acquire its treasury stock.
f. Purchased equipment for $91,000 cash.
Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)
The company had a positive cash flow from financing activities of $64,000.
To determine the cash flows from financing activities based on the given information, we need to identify the transactions that fall under financing activities and calculate their impact on cash flow.
The transactions that fall under financing activities are:
b. Issued common stock for $79,000 cash. (+$79,000)
c. Paid cash dividend of $15,000. (-$15,000)
The other transactions mentioned (a, d, e, f) do not directly fall under financing activities. Net income (a) represents an operating activity, while paying off a note payable (d), acquiring treasury stock (e), and purchasing equipment (f) are investing activities.
Therefore, the cash flows from financing activities for this company would be:Cash flows from financing activities = Issued common stock - Paid cash dividend
Cash flows from financing activities = $79,000 - $15,000
Cash flows from financing activities = $64,000
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5. Last week, Meerai and her friend Sean organized a school group to raise funds for AIDS research. Yesterday, on their desks, they both found crudely-drawn cartoons making fun of people who are bisexual. Last night, several students shouting anti-LGBTQ comments verbally attacked them on the street opposite the school yard. Their teacher saw the cartoons and has heard rumours of the verbal attack, but feels that nothing can be done because the attack took place off the school premises. Neither student has complained to school officials. Have the students violated Meerai and Sean's human rights?
Yes, the students have violated Meerai and Sean's human rights. Human rights are a set of rights that belong to everyone, regardless of their gender, race, religion, nationality, or any other aspect. Human rights are a set of basic rights that should be protected and ensured for everyone without discrimination of any kind.
The Universal Declaration of Human Rights (UDHR), adopted by the United Nations General Assembly in 1948, contains a list of fundamental human rights that should be safeguarded in all societies. Some of the essential rights included in the UDHR are the right to life, liberty, and security of person; freedom from torture and slavery; freedom of opinion, expression, and religion; and the right to work and an education. As per the scenario mentioned in the question, the students have violated Meerai and Sean's human rights because they shouted anti-LGBTQ comments verbally and also drew cartoons which are making fun of people who are bisexual. Human rights violations can occur when people's rights are violated because of their race, gender, religion, ethnicity, nationality, or any other aspect. It is the responsibility of everyone to respect and protect the human rights of all individuals.
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SUBJECT: BUSINESS LAW
A person dies without leaving a will. The administrator of the estate refuses to pay the deceased’s debts on the grounds that there is no written evidence of the obligation. Comment on the ethics of this situation.
In a situation where a person dies without leaving a will and the administrator of the estate refuses to pay the deceased’s debts on the grounds that there is no written evidence of the obligation, it raises ethical issues.
The reason is that the administrator has a moral and legal obligation to pay the deceased’s debts even in the absence of a written document.
In a situation like this, the administrator's first ethical obligation is to ensure that the debts are paid as required.
It's their responsibility to ensure that all the deceased’s creditors are paid and their obligations are met.
This ethical obligation is based on the principle of personal responsibility.
When a person dies, the responsibility to pay their debts is transferred to their estate.
the administrator has a moral and legal obligation to ensure that the debts are paid to avoid legal problems in the future.
The administrator must also be transparent and honest in their dealings.
They should not hide or try to evade the deceased’s obligations to the creditors.
This ethical obligation is based on the principle of integrity.
When an administrator is open and honest in their dealings, they create trust and credibility among the creditors, beneficiaries, and other stakeholders.
In conclusion, it's ethically wrong for the administrator of an estate to refuse to pay the deceased’s debts on the grounds that there is no written evidence of the obligation.
It's their moral and legal obligation to ensure that the debts are paid, and they should do so transparently and honestly.
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False Question 2 ✓ Saved On June 1, ACME Incorporated borrows $75,000 on a six-month, 4% note. Interest and principal are to be paid at maturity. Adjusting entries are prepared annually on the June 30 year end. Required: 1. Prepare the journal entry on issuance date. 2. Prepare the year end adjusting journal entry. (1.5 marks) 3. Prepare the journal entry at maturity date. (3.5 marks)
False Question 2There is no question provided in the prompt. It is only a statement that mentions a scenario involving financial transactions.
The statement discusses the borrowing of $75,000 by ACME Incorporated on a six-month, 4% note. Interest and principal are to be paid at maturity, and adjusting entries are prepared annually on the June 30 year-end.
Since there is no question asked, it is not possible to provide an answer that includes the terms "MORE THAN 100 WORDS".
However, here is some general information on the terms mentioned in the prompt to help you better understand them:Six-month note: A six-month note is a financial instrument that matures after six months of its issue date. The borrower agrees to repay the principal amount with interest at the end of six months.4% note: The 4% note refers to the interest rate that is payable on the six-month note.
The interest is calculated at a rate of 4% per annum, and it is paid when the note matures.
Adjusting entries: Adjusting entries are journal entries made to update the accounting records at the end of the accounting period. Adjusting entries can be related to accruals, deferrals, and estimates.
Maturity date: The maturity date is the date on which the principal amount of a debt instrument is due to be paid. In the case of a six-month note, the maturity date is six months from the date of issuance. At maturity, the borrower must pay the principal amount along with the interest due.
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Which of the following is an expense recognition criterion for recording a government transfer payment as an expense under Section PS 3410 in the CPA Canada Public Sector Accounting Handbook?
A. All stipulations have been met by the recipient.
B. All eligibility criteria have been met by the recipient.
C. All eligibility criteria and all stipulations have been met by the recipient.
D. All conditions required by the recipient for recognizing the transfer as revenue have been met.
Option C requires meeting both eligibility criteria and stipulations before recognizing government transfer payments as expenses.
Option C of Section PS 3410 of the CPA Canada Public Sector Accounting Handbook's list of cost recognition criteria is "All eligibility requirements and all stipulations have been met by the recipient."
Government transfer payments are cash that the government gives to people, organizations, or other levels of government for a variety of uses, such as grants, subsidies, or social assistance, in the context of public sector accounting. To guarantee accurate and fair financial reporting, certain criteria must be followed when classifying these transfer payments as expenses.
Option C specifies that the receiver is required to meet the transfer payment's requirements as well as its eligibility requirements. Typically, eligibility requirements specify what a person or organization must satisfy in order to qualify for the transfer money. On the other hand, stipulations are the requirements or obligations that the recipient must fulfil after getting the money.
Option C ensures that the receiver has satisfied all relevant requirements and obligations associated with the transfer payment before it can be recognized as an expense by the government by requiring the fulfilment of both eligibility criteria and conditions. This requirement encourages transparency and accurate financial reporting in the public sector.
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The reverse treasury stock method is used for a. convertible preferred shares. b. written put options. c. written call options. d. convertible bonds.
The reverse treasury stock method is used for convertible bonds. The Reverse Treasury Stock method is a method for calculating diluted earnings per share. Diluted EPS assumes that all possible dilutive securities, such as stock options, convertible preferred shares, and convertible bonds, have been converted into common shares.
To avoid overstating the amount of common shares that would be outstanding, the treasury stock method is used to calculate the diluted EPS. The treasury stock method treats the proceeds from the conversion of convertible securities as if they were used to buy back common stock at the current market price.
Therefore, the treasury stock method is used to estimate the dilutive effects of convertible securities that are out of the money. Hence, the correct option is D, Convertible bonds.
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When you're preparing a formal work plan, include a ________ to clarify the problem you
face and a ________ to describe what you plan to accomplish.
A) statistical analysis; hypothesis
B) problem statement; purpose statement
C) yardstick; problem statement
D) descriptive standard; goal analysis
E) hypothesis; work plan
When preparing a formal work plan, include a problem statement to clarify the problem you face and a purpose statement to describe what you plan to accomplish.
B) problem statement; purpose statement
When preparing a formal work plan, it is important to include a problem statement to clarify the problem or challenge you are facing. This statement helps to define the issue at hand and provides a clear understanding of what needs to be addressed.
Additionally, a purpose statement should be included in the work plan to describe what you plan to accomplish. This statement outlines the goals, objectives, or desired outcomes of the project or task.
Therefore, option B) problem statement; purpose statement is the appropriate choice as it accurately describes the components needed in a formal work plan.
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Company SBS9 is evaluating the following list of Investments. Required Investment RM ROIC Project A 40 16% Project B 40 13.50% Project C 20 13% Total Investment 100 The target capital structure is to use 50% Debt and 50% Equity. Net Income last year was RM40 and the company intends to pay dividends to the amount of RM10. The interest rate that banks will charge for any amount of loans is 8%. The Corporate Tax Rate is 30%. Fixed deposits rates in the market is currently 3%. This rate is considered risk free (RF). The stock market is forecasted to provide a return of 15% which will be used as the required return from the market. The unlevered beta for the company is 0.8. Any new shares issue will be charge a 3% flotation cost. Required:
a. What is the amount of the first stage financing using the intended capital structure and that the company needs to pay the dividends payment.
b. Calculate the leverage beta at the first stage of financing?
c. Calculate the cost of equity at the first stage of financing?
d. Calculate the cost of equity after the first stage of financing?
e. Calculate the Weighted Average Cost of Capital at the first financing stage and the second financing stage?
f. Explain whether each of the project can be chosen. Explanation must include the cost of capital of the project.
g. Based on the answer in part f, what is the total amount of investment.
a) Amount of first stage financing:
Amount of debt = 50% of total investment = 50% of RM100 = RM50
Amount of equity = 50% of total investment = 50% of RM100 = RM50
Dividend payment = RM10
Hence, the amount of first stage financing = RM50 + RM10 = RM60.
b) Leverage beta:
Unlevered beta (βU) = 0.8
Debt-equity ratio = 1
Interest rate on debt = 8%
Tax rate = 30%
Leverage beta (βL) = βU[1+(1-tax rate) (Debt/Equity)]
Debt/Equity = 1βL = 0.8[1+(1-0.30) (1)]βL = 0.8(1.3)βL = 1.04.
c) Cost of equity (Ke) = RF + [βL × (Rm - RF)]Rm = 15%
Ke = 3% + [1.04 × (15%-3%)]
Ke = 14.56%.
d) The cost of equity after the first stage of financing will not change. Hence, it will remain 14.56%.
e) WACC at first financing stage = [E/(D+E)] × Ke + [D/(D+E)] × Kd×(1-t)
Where, E = Equity, D = Debt,
Ke = Cost of equity,
Kd = Cost of debt,
t = Tax rate.
Ke = 14.56%
Kd = 8%
t = 30%
E = 50%,
D = 50%
WACC = (0.50) (14.56%) + (0.50) (8%) (1-0.30)
WACC = 11.39%.
For the second financing stage, there will be no change in the cost of debt or equity. Hence, the WACC will also remain the same, i.e., 11.39%.
f) Project A:Cost of capital = 16%If the cost of capital is more than the WACC, the project cannot be chosen. Since the cost of capital is more than the WACC, the project cannot be chosen.
Project B:Cost of capital = 13.5%
Since the cost of capital is less than the WACC, the project can be chosen.
Project C:Cost of capital = 13%
Since the cost of capital is less than the WACC, the project can be chosen.
g) The total amount of investment = RM40 + RM40 + RM20 = RM100.
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Eurodollars are
A. Canadian dollars deposited in foreign banks.
B. foreign dollars deposited in Canadian banks.
C. investments of common market countries.
D. none of the other answers are correct
Option (b), Eurodollars are foreign dollars deposited in foreign banks.
Eurodollars refer to the United States dollars that are deposited in foreign banks outside of the USA. The name was derived from the large deposits of dollars held in banks in Europe. This helps to explain the name Eurodollars.
In the late 1950s, Eurodollars emerged as a response to foreign firms attempting to get around US-imposed capital controls. Instead of depositing dollars in the US, European banks started to hold US dollars in offshore accounts. As a result, the term "Eurodollars" was created. Eurodollars are crucial to global finance since they facilitate international transactions without needing to go through US financial systems. Because of the greater competition for deposits among banks abroad, Eurodollar deposits often pay a slightly higher interest rate than domestic deposits, which could result in higher yields for investors.
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orrect? The total cost curve is an upward-sloping straight ine through the origin The averege cost curve is U-shaped The trarginal cost curve is a horizontal straight line The marginal cost curve inlersects the average coat curve at ts mirimum point
The given statement is incorrect. The marginal cost curve intersects the average cost curve at its minimum point. The total cost curve is an upward-sloping curve through the origin.
The average cost curve is U-shaped, and the marginal cost curve is a U-shaped curve that intersects the average cost curve at its minimum point. This is known as the law of diminishing returns.The statement, "The marginal cost curve inlersects the average coat curve at ts mirimum point," is incorrect.The marginal cost curve is a U-shaped curve that intersects the average cost curve at its minimum point.
This is the law of diminishing returns. When the marginal cost curve is below the average cost curve, the average cost curve falls. When the marginal cost curve is above the average cost curve, the average cost curve rises.The total cost curve is an upward-sloping curve that starts at the origin.
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Today, the exchange rate between the US dollar and Appleland's currency is $1. 000=AAA6. 623, and between the US dollar and Bananaland's currency is $0. 486=BBB1. 0. Calculate the implied cross-rate between Appleland's and Bananaland's currencies, expressed as the amount of BBB per one unit of AAA. Do NOT use units in your answer, and just put your numeric answer
The implied cross-rate between Appleland's and Bananaland's currencies, expressed as the amount of BBB per one unit of AAA, is approximately 0.1509.
To calculate the implied cross-rate between Appleland's and Bananaland's currencies, we can use the exchange rates provided for both currencies with the US dollar.
Let's start by converting one US dollar to Appleland's currency (AAA):
$1.000 = AAA6.623
Next, let's convert one US dollar to Bananaland's currency (BBB):
$0.486 = BBB1.0
Now, we can calculate the cross-rate by dividing the exchange rate of Bananaland's currency (BBB) by the exchange rate of Appleland's currency (AAA):
(BBB1.0 / AAA6.623)
Using a calculator, we get the implied cross-rate between Appleland's and Bananaland's currencies to be approximately 0.1509.
In conclusion, the implied cross-rate between Appleland's and Bananaland's currencies, expressed as the amount of BBB per one unit of AAA, is approximately 0.1509.
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Define, compare, and contrast a Patent, a Copyright, and a
Trademark. How does doing business in countries with a high
corruption index affect any of these concepts? Explain.
Define and explain each
Patent, Copyright, and Trademark are the three most common types of intellectual property rights that help safeguard the creations of people's minds and prevent them from being exploited by others without permission.
Patent is a set of exclusive rights granted to an inventor for a limited period of time in return for the public disclosure of an invention. It is a legal document that provides protection for the unique and original invention or design from unauthorized use.
Copyright, on the other hand, is a type of intellectual property that gives an author, artist, or creator exclusive rights to control how their work is used and distributed. It is a legal protection that safeguards original works of authorship, such as books, music, art, or software.
Trademark, on the other hand, is a recognizable sign, design, or expression that identifies a product or service as coming from a particular source.
It provides exclusive rights to use the name or logo of a product or service. It helps consumers identify and distinguish a particular product or service from others. When doing business in countries with a high corruption index, the legal protections offered by patents, copyrights, and trademarks can be compromised.
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2. For each risk, find a viable, pragmatic risk response which could have prevented this project failure. Indicate (a) the type of response (mitigate, transfer etc.) and then amandeep (b) describe your response in a short but clear, succinct sentences.
The profit-maximizing price and quantity for Jack's pizza business can be determined by finding the quantity where marginal cost (MC) equals marginal revenue (MR).
Since TC = 0.5Q + 15, the marginal cost is MC = 0.5. The market demand is P = 20.5 - 0.5Q, so the marginal revenue is MR = 20.5 - Q. Setting MC equal to MR, we have 0.5 = 20.5 - Q. Solving for Q, we find Q = 20. The corresponding price can be found by substituting Q into the demand function: P = 20.5 - 0.5(20) = 10.
Jack's profit can be calculated by subtracting total cost from total revenue. Total revenue is given by TR = P * Q = 10 * 20 = 200. Total cost is TC = 0.5Q + 15 = 0.5 * 20 + 15 = 25. So Jack's profit is 200 - 25 = 175. The equilibrium quantity in a perfectly competitive market would occur where demand equals supply, but since Jack is the only seller, the quantity sold by Jack is the equilibrium quantity. There is no market efficiency loss or gain caused by Jack's business since it operates in a monopoly. With the $5 tax imposed on each pizza sold, the new price for Jack's pizza would be P + Tax = 10 + 5 = 15. The quantity demanded can be found by substituting the new price into the demand function: 15 = 20.5 - 0.5Q. Solving for Q, we get Q = 10. Jack's profit can be calculated by subtracting the new total cost (including the tax) from the total revenue. The new total cost would be TC + Tax = 25 + 5 = 30. So the new profit is 200 - 30 = 170. It's likely that Jack will remain in the market despite the tax, as the profit is still positive.
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Between 2009 and 2019, the standard deviation of the returns for sock A and Stock B were 0.08 and 0.10, respectively, and the covariance of these returns was 0.0007.
Find the portfolio of stock A and Stock B that will result in the lowest possible risk level.
Standard deviation measures the volatility of the return of a stock. The lower the standard deviation, the less the return fluctuates, meaning the lower the risk level. A portfolio is a combination of stocks and bonds. Stock A and Stock B have a covariance of 0.0007.
Covariance is a statistical measure of the relationship between two stocks. When the covariance is positive, it implies that both stocks tend to move together (either positively or negatively). If it is negative, the stocks move in opposite directions.For the portfolio of stocks A and B to result in the lowest possible risk level, the correlation coefficient has to be calculated first. The formula for the correlation coefficient is as follows: Correlation coefficient = Covariance / (Standard deviation of stock A x Standard deviation of stock B)The value of the correlation coefficient is 0.7.
Since the correlation coefficient is greater than zero, the stocks move together and, therefore, have a positive covariance.The standard deviation of a portfolio of two stocks is given by: SD portfolio = √(WASDA squared+WBSDB squared+2WAWBSDA*DB*Correlation coefficient)where:WAS is the weight of stock A in the portfolio WBS is the weight of stock B in the portfolio SDA is the standard deviation of stock A in the portfolio SDB is the standard deviation of stock B in the portfolio.
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Take me to the text Sammy Chin, the owner of SC Limited, prepared the following 2019 direct labor budget: SC Limited Direct Labor Budget For the Year Ended June 30, 2019 Q1 Q2 03 Budgeted Direct Labor Hours 33,000 26,000 50,000 55,000 Direct Labor Cost per Direct Labor Hour $12 $17 $8 $10 Budgeted Direct Labor Costs $396,000 $442,000 $400,000 $550,000 24 For 2019, Sammy budgets $541,200 of manufacturing overhead. The budgeted manufacturing overhead cost is normally allocated based on the budgeted direct labor hours. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Determine the amount of budgeted manufacturing overhead for each quarter. Q1 Q2 Q3 Q4 Total $ $ $ Budgeted Direct Labor Hours For 2019, Sammy budgets $541,200 of manufacturing overhead. The budgeted manufacturing overhead cost is normally allocated based on the budgeted direct labor hours. Do not enter dollar signs or commas in the input boxes, Round all answers to 2 decimal places. Determine the amount of budgeted manufacturing overhead for each quarter. Q1 Q2 Q3 Q4 Total $ $ $ Budgeted Direct Labor Hours $ $ A $ $ $ Predetermined Overhead Rate $ Budgeted Manufacturing Overhead Check
The budgeted direct labour hours and the $541,200 total manufacturing overhead cost are used to compute the budgeted manufacturing overhead for each quarter.
The manufacturing overhead rate for Q1 is $16.40 per hour, with 33,000 direct labour hours allocated in the budget. Therefore, $541,200 has been budgeted for manufacturing overhead for Q1. The manufacturing overhead rate for Q2 is $20.81 per hour, with 26,000 direct labour hours allocated in the budget. As a result, $540,060 has been budgeted for manufacturing overhead for the second quarter. The 50,000 direct labour hours allocated for Q3 translate into a manufacturing overhead rate of $10.82 per hour. For Q3, $541,000 has been budgeted for manufacturing overhead. Finally, 55,000 direct labour hours are allocated for Q4, which results in a manufacturing overhead cost of $9.84 per hour. As a result, the planned production expenses $541,200 is the total for Q4. The budgeted manufacturing overhead is as follows for each quarter: Q1: $541,200 Q2: $540,060 Q3: $541,000 Q4: $541,200 The $541,200 annual budgeted amount for manufacturing overhead remains unchanged.
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It is observed that episodic solid waste generates large quantity of wastes.
1. As a student of Solid waste management course explain the problems and environmental pollution associated with episodic solid wastes.
2. Explain the ways by which one can reduce the episodic waste, so that our environment is saved.
Solid waste can be defined as any waste produced by human activity that is solid in nature and is not meant for immediate reuse. Episodic solid waste generates a large amount of waste, which can cause environmental pollution and problems such as soil contamination, surface water pollution, air pollution, and many other issues.
It can also cause the degradation of ecosystems, the destruction of biodiversity, and the spread of diseases. Episodic solid waste can also cause social and economic problems that can impact the health and well-being of local communities. In addition, it can lead to the inefficient use of resources and the depletion of non-renewable resources.
There are several ways by which we can reduce episodic waste so that our environment is saved. These methods are as follows: 1. Reduce, reuse and recycle: People should be encouraged to reduce their waste by using durable and reusable products instead of disposable ones. 2. Segregation of waste: Proper segregation of waste can help in reducing the amount of waste that goes to landfills. 3. Composting: Organic waste can be used as compost, which can be used as a fertilizer in agriculture. Encouraging green living: People should be encouraged to adopt green living practices such as using public transport, carpooling, using energy-efficient appliances, and reducing water consumption.
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FACULTY OF COMMERCE, MANAGEMENT AND LAW Assignment 1 AFE3692 2022 Question \( 1 \quad \) (15 Marks) 1. Using the definition as per the Conceptual Framework for financial reporting, briefly explain how
In this assignment question, we are asked to briefly explain the definition of financial reporting based on the Conceptual Framework.
According to the Conceptual Framework for Financial Reporting, financial reporting is "the process of communicating information about an entity's financial performance and position to external users such as shareholders, creditors, and investors" (IASB, 2018). The main goal of financial reporting is to offer users useful information for making decisions. Financial reporting's objective is to provide financial information that is useful in making informed economic decisions by offering financial information that is dependable, pertinent, and easily understandable to users.
To fulfill the objective, financial reporting should present the financial performance, position, and cash flows of an entity. Furthermore, it should offer useful information about an entity's assets, liabilities, and equity. This information should aid users in assessing an entity's financial performance and cash flows. Finally, financial reporting should assist in predicting the entity's future cash flows and, as a result, aid in making informed economic decisions.
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the early presence of islam in west african was linked to trade and commerce with north africa although trade between west africa and the mediterranean predated islam
The early presence of Islam in West Africa was indeed linked to trade and commerce with North Africa ---- True
Prior to the arrival of Islam, trade between West Africa and the Mediterranean region had already been established. The trans-Saharan trade routes connected West Africa with North Africa and the Mediterranean, facilitating the exchange of goods such as gold, salt, ivory, and other commodities.
With the spread of Islam across North Africa in the 7th and 8th centuries, Arab merchants and traders began to introduce the religion to the West African kingdoms along the trade routes. Islam gradually gained acceptance among the local population, especially among the ruling elites and urban centers that were more directly involved in trade with the Muslim world.
The trade connections and cultural interactions between West Africa and North Africa provided a fertile ground for the spread of Islam. Over time, Islamic religious and cultural practices became intertwined with the existing traditions and belief systems in West Africa, giving rise to unique forms of Islam that incorporated local customs and beliefs.
This process of Islamization through trade and commerce significantly influenced the religious, social, and political developments in West Africa.
Incomplete Question:
the early presence of islam in west african was linked to trade and commerce with north africa although trade between west africa and the mediterranean predated islam. True or False.
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A corner solution in the consumer's problem:
a. Is a consumption bundle that coincides with the "kink" of the indifference curve when preferences are of the perfect complement type
b. Is a consumption bundle that is chosen by the consumer but is not optimal
c. Can only occur when preferences are of the perfect substitutes type
d. Is a consumption bundles that is not optimal but gives a positive utility level
e. Is an optimal consumption bundles that specifies a positive amount for only one of the two goods
A corner solution in the consumer's problem is an optimal consumption bundle that specifies a positive amount for only one of the two goods. Option (e) is correct.
What is a corner solution in the consumer's problem?When a consumer selects a consumption bundle containing no positive quantity of one good and positive amounts of the other good, this is referred to as a corner solution.
This occurs because the indifference curve linking the two goods is "kinked" or discontinuous at the point where one of the goods is absent. These corner solutions are the result of the "binding" constraint which specifies the maximum amount that a consumer may spend on consumption of goods.A corner solution can be an optimal consumption bundle in some cases. When a consumer's preferences are such that they have perfect substitutes, a corner solution will be optimal. For instance, if the consumer enjoys both Good X and Good Y to the same extent, they will consume a positive amount of both goods (i.e., will not choose a corner solution).When the consumer dislikes Good X, they will consume only Good Y. When the consumer dislikes Good Y, they will consume only Good X.
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a $5,000 1 week 100 percent complete, $4,000 b $8,500 1 week 100 percent complete, $8,500 c $15,000 2 weeks 100 percent complete, $14,000 d $10,000 2 weeks 50 percent complete, $9,000 e $12,000 3 weeks 50 percent complete, $12,000 brewer, jeffrey l.; dittman, kevin c.. methods of it project management (p. 625). purdue university press. kindle edition.
The given information represents a list of IT projects along with their duration, completion percentage, and costs. Let's break down the information to understand it better:
$5,000, 1 week, 100% complete. This project cost $5,000 and was completed within 1 week. It is marked as 100% complete. $8,500, 1 week, 100% complete.This project cost $8,500 and was also completed within 1 week. It is also marked as 100% complete.$15,000, 2 weeks, 100% complete.This project cost $15,000 and took 2 weeks to complete. It is marked as 100% complete. $10,000, 2 weeks, 50% complete. This project cost $10,000 and had a duration of 2 weeks.
However, it was only 50% complete. $12,000, 3 weeks, 50% complete.This project cost $12,000 and lasted for 3 weeks. Similar to the previous project, it was also only 50% complete.These details provide information about the costs, durations, and completion percentages of different IT projects. It seems like the completion percentages are indicating the progress made towards finishing each project. The costs mentioned are the total expenses associated with each project.
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