1. Total dollar return on bond= $960 – $910 = $50.
2. Nominal return = $60/$910 = 6.59%.
3. Inflation rate= 4%. Real return on bond= (1 + 0.0659) / (1 + 0.04) – 1 = 2.47%.
4. Total return on ABC share = ($90 – $85) + $2.35 = $7.35. Percent return = $7.35/$85 × 100 = 8.65%.
5. Dividend yield = $2.35/$85 × 100 = 2.76%.
6. Capital gain yield = ($90 – $85) / $85 × 100 = 5.88%.
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Why do you think that some sports, such as baseball are more successful in bargaining against club owners as opposed to basketball?
Some sports, such as baseball, have been more successful in bargaining against club owners compared to basketball. Collective bargaining is a negotiation process that occurs between the players' union and team owners in sports.
It is essential to determine salaries, work conditions, and other benefits. Baseball players have been successful in this regard because of several reasons.There are a few reasons why baseball has a stronger bargaining power than basketball, which I will explain below:History of the sport: Baseball has a rich history dating back to the 19th century, and the players' union was established in 1954.
It is the first professional sport to form a union. In contrast, the NBA Players Association was not established until 1957. Baseball has had more time to develop its negotiation skills and strategies compared to basketball. The union has a strong sense of tradition and unity. Baseball is also considered to be America's pastime, which means that it holds a special place in the nation's culture.
Television revenue: Baseball generates more television revenue than basketball. Baseball games are shown on national television more frequently, and they have more playoff games, which generate significant revenue. In contrast, the NBA has fewer games that are shown on national television, and their playoffs are shorter.
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Share the criteria of a good evaluation. Be sure to include: the elements and considerations for quality assessments, the concept of rigor including defining and commenting on the concepts of reliability and validity, a description of the four standards of evaluation that have been established by the American Evaluation Association.
Evaluation can be defined as the systematic process of collecting and analyzing data to make informed decisions. It is an important tool for assessing the effectiveness of programs, policies, and projects.
To ensure the quality of an evaluation, several elements and considerations should be taken into account:
1. Relevance: The evaluation should be directly related to the program, policy, or project being assessed and address the key questions that need to be answered.
2. Clarity: The purpose, objectives, and methods of data collection and analysis should be clearly defined in the evaluation.
3. Feasibility: The evaluation should be feasible in terms of the available resources and time required to complete it.
4. Credibility: The evaluation should be credible, supported by reliable evidence, and conducted by qualified evaluators.
Rigor is another important concept in evaluation, which encompasses the following components:
1. Validity: The evaluation should measure what it intends to measure, ensuring accuracy and appropriateness.
2. Reliability: The evaluation should produce consistent results over time and when conducted by different evaluators.
3. Objectivity: The evaluation should be unbiased and free from personal subjectivity or preferences.
4. Generalizability: The findings of the evaluation should be applicable to other settings or contexts.
The American Evaluation Association has established four standards of evaluation that evaluations should meet:
1. Utility: The evaluation should be useful and provide valuable insights to the intended users.
2. Feasibility: The evaluation should be feasible within the available resources and time constraints.
3. Propriety: The evaluation should be conducted ethically and in compliance with legal standards.
4. Accuracy: The evaluation should be accurate, based on sound evidence, reliable methods, and qualified evaluators.
Adhering to these standards helps ensure that evaluations are relevant, rigorous, and provide valuable information for decision-making.
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almost no personal or household wealth in the united states is derived from housing equity.
The statement that "almost no personal or household wealth in the United States is derived from housing equity" is not accurate.
Housing equity, which refers to the difference between the market value of a property and the outstanding mortgage debt on that property, is a significant source of personal or household wealth for many individuals and families in the United States. Homeownership is often considered a crucial component of building wealth and financial stability
For most Americans, their primary residence represents a substantial portion of their net worth. As homeowners make mortgage payments over time, they build equity in their homes, which can be accessed through selling the property or borrowing against it. The accumulated housing equity can be used for various purposes, such as funding education, starting a business, or supplementing retirement savings.
Furthermore, housing appreciation can contribute to the growth of personal wealth. When the value of a home appreciates over time, homeowners can experience an increase in their overall net worth, driven by the equity gained from the appreciation.
While it is true that personal and household wealth can also come from other sources such as investments, savings, or business ownership, housing equity remains a significant component of wealth accumulation for many individuals and households in the United States.
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Frederick Consulting had just landed a white whale of a customer, Wilfrid Laurier University, after spending $52,000 in initial acquisition costs! Laurier is expected to generate $39,000 a year in margin, and Frederick Consulting expects this relationship to last for a very long time (decades). Additional costs to serve and retain Laurier are estimated to be $20,000 annually. The retention rate per period is 92%. The cost of capital for Frederick Consulting is 15%.
What is the customer lifetime value of Wilfrid Laurier University for Frederick Consulting?
The customer lifetime value of Wilfrid Laurier University for Frederick Consulting is $156,780.27.
The customer lifetime value of Wilfrid Laurier University for Frederick Consulting is calculated as follows:
Customer Lifetime Value (CLV) = Margin X (Retention Rate / (1 + Cost of Capital - Retention Rate))
According to the question, Frederick Consulting has the following data:
Acquisition Cost = $52,000
Margin = $39,000
Additional Costs = $20,000
Retention Rate = 92%
Cost of Capital = 15%
The customer lifetime value of Wilfrid Laurier University for Frederick Consulting is calculated as follows:
Customer Lifetime Value (CLV) = Margin X (Retention Rate / (1 + Cost of Capital - Retention Rate))
Customer Lifetime Value (CLV) = $39,000 X (92% / (1 + 15% - 92%))
Customer Lifetime Value (CLV) = $39,000 X (92% / 0.23)
Customer Lifetime Value (CLV) = $156,780.27
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Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. Wal-Mart is the largest retail store in the United States, and is larger than any other retail chain in the world. Currently Wal-Mart operates over 4,150 retail facilities globally.
Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well (www.walmart.com).
Wal-Mart Stores Inc. decided to start its operation in Saudi Arabia. The Company hired you as CEO of Wal-Mart Stores Inc. Saudi.
-Identify the strategic management process of Wal-Mart Stores Inc. KSA. (
The strategic management process of Wal-Mart Stores Inc. KSA:
Wal-Mart is a global brand that has managed to establish its dominance in the retail industry. With over 4,150 retail facilities worldwide, Wal-Mart is the largest retail store chain in the world. The company's strategic management process has contributed significantly to its success.
The strategic management process of Wal-Mart Stores Inc. KSA involves four main steps, which include strategic planning, strategic implementation, strategic control, and evaluation.
1. Strategic planning: The first step in the strategic management process of Wal-Mart Stores Inc. KSA is strategic planning. The company must develop a strategic plan to achieve its objectives. In this step, the company analyzes the internal and external environment to identify opportunities and threats and strengths and weaknesses. The company then develops a mission and vision statement, sets objectives, and formulates strategies to achieve them.
2. Strategic implementation: The next step in the strategic management process of Wal-Mart Stores Inc. KSA is strategic implementation. In this step, the company puts the strategies into action. The company allocates resources, trains employees, develops policies and procedures, and implements the strategies.
3. Strategic control: The third step in the strategic management process of Wal-Mart Stores Inc. KSA is strategic control. In this step, the company evaluates its performance against the set objectives. The company compares actual performance to the desired performance and takes corrective action if necessary.
4. Evaluation: The final step in the strategic management process of Wal-Mart Stores Inc. KSA is evaluation. In this step, the company evaluates the effectiveness of its strategies. The company measures the outcomes of the strategies against the set objectives. The company also reviews its mission and vision statements, objectives, and strategies to ensure that they are still relevant and consistent with the changing environment.
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Topic 8 :Market oriented Strategic Planning Page 1 1. The managerial process of developing and maintaining a viable fit between an organisation's objectives, skills, and resources and its market opportunities is called: a. market-oriented strategic planning b. portfolio analysis c. human resource planning d. establishing strategic business units e. market research 2. At which level in the company should market-oriented strategic planning begin? a. strategic business unit b. sales/marketing department c. corporate level d. product level e. functional level 3. Which of the following is an example of one of the elements a company would use to shape its mission? a. the form and number of the company's strategic business units b. the organisational vision c. its current operational processes d. the geographical location of its facilities e. the diversity of its employees 4. Which of the following is an example of a good mission statement? a. GCC will provide superior products at a fair price to our customers while supporting our local community and providing our employees and stockholders with the opportunity to achieve their personal objectives. b. ABC Corporation will produce the highest quality products with the best service and the most affordable prices in the industry. c. Rosita's will provide the world's best pizza to its customers. d. Operating ethically, XYZ Corporation will dominate its industry with low cost products. We will seek to operate in only a limited number of industries, but in those industries will undercut the prices of and provide better service than our competitors. e. All of the above are examples of good mission statements. 5. Which of the following is a market-oriented definition of a market? a. We are in the communications business. b. We operate theme parks. c. We make casings for sausages and wieners. d. We sell women's clothing. e. We raise chickens.
1. The correct answer is a. market-oriented strategic planning. Market-oriented strategic planning is the process of aligning an organization's objectives, skills, and resources with market opportunities. It involves analyzing the market, understanding customer needs and preferences, and developing strategies to meet those needs effectively.
2. The correct answer is c. corporate level. Market-oriented strategic planning should begin at the corporate level, where top management sets the overall direction and goals for the entire organization. It then cascades down to lower levels, such as strategic business units and functional areas.
3. The correct answer is b. the organizational vision. A company shapes its mission by considering various elements, and one of them is the organizational vision. The vision outlines the desired future state of the company and helps guide decision-making and goal-setting.
4. The correct answer is a. GCC will provide superior products at a fair price to our customers while supporting our local community and providing our employees and stockholders with the opportunity to achieve their personal objectives. A good mission statement should clearly define the company's purpose, target audience, and values. It should be specific, realistic, and aligned with the company's goals and values.
5. The correct answer is c. We make casings for sausages and wieners. A market-oriented definition of a market focuses on the specific products or services that a company offers. It identifies the target market and highlights the company's specialization or expertise in that particular area.
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the beginning of december ,global corporation had 2,000 in supplies on hand.during the month supplies purchased amounted to 3000,but by the end of the month the supplies balance was only 800 .what is the appropriate month end adjusting entry
The Adjusting entries is debit supplies expenses account by 2200 and credit supplies account by 2200.
The appropriate month-end adjusting entry in this case would be to record the decrease in supplies and adjust the balance accordingly.
To do this, we need to calculate the difference between the supplies purchased and the supplies balance at the end of the month:
Supplies purchased: 3000
Supplies balance at the end of the month: 800
Difference: 3000 - 800 = 2200
Since the supplies balance decreased by 2200, the adjusting entry would be to debit the supplies expense account and credit the supplies account:
Debit: Supplies Expense - 2200
Credit: Supplies - 2200
This adjusting entry will reflect the decrease in supplies and adjust the balance to the correct amount at the end of the month.
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All of the following are typical reasons for a merger except? A. CEO ego to create a larger company with higher compensation B. Exit (sell) slow growing businesses of the acquirer C. Diversify the acquirer's business D. Create economies of scale
The option A) CEO ego to create a larger company with higher compensation is not a typical reason for a merger.
Typical reasons for a merger are given below:
Diversify the acquirer's business: The merger will enable the acquiring firm to enter new markets and expand its product lines. Additionally, by broadening the scope of the business, mergers may lower risk through diversification.
Create economies of scale: A merger can result in cost reductions. As a result, economies of scale arise, as the consolidated company may be able to achieve increased production efficiency and reduced costs.
Exit (sell) slow-growing businesses of the acquirer: In some cases, firms sell slow-growing businesses to concentrate on their core competencies or to reduce debt.
Based on the aforementioned points, the typical reasons for a merger are "Diversify the acquirer's business," "Create economies of scale," and "Exit (sell) slow growing businesses of the acquirer." Therefore, option A is incorrect because "CEO ego to create a larger company with higher compensation" is not a typical reason for a merger.
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A store has two different coupons that customers can use. One coupon gives the customer $25 off their purchase, and the other coupon gives the customer 20% off of their purchase. Suppose they let a customer use both coupons and choose which coupon gets applied first. For this context, ignore sales tax.
Let f be the function that inputs a cost (in dollars) and outputs the cost after applying the "$25 off" coupon, and let g be the function that inputs a cost (in dollars) and outputs the cost after applying the "20% off" coupon.
a. Suppose a customer wants to purchase a $140 item and apply the "$25 off" coupon first, and then the "20% off" coupon. How much will the item cost after applying the coupons?
b. Suppose a customer wants to purchase a $140 item and apply the "$25 off" coupon first, and then the "20% off" coupon. Use function notation to represent how much the item will cost (dollars) after applying the coupons.
c. Suppose a customer wants to purchase a $140 item and apply the "20% off" coupon first, and then the "$25 off" coupon. How much will the item cost after applying the coupons?
d. Suppose a customer wants to purchase a $140 item and apply the "20% off" coupon first, and then the "$25 off" coupon. Use function notation to represent how much the item will cost (dollars) after applying the coupons.
a. After applying the "$25 off" coupon first and then the "20% off" coupon, the item will cost $104.
b. Using function notation, let's represent the "$25 off" coupon function as f(x) and the "20% off" coupon function as g(x). We want to find g(f(140)), which means applying the "$25 off" coupon first and then the "20% off" coupon.
To apply the "$25 off" coupon, we use f(x) = x - 25, where x represents the original cost of the item. Substituting x = 140, we get f(140) = 140 - 25 = 115.
Now, to apply the "20% off" coupon, we use g(x) = x - 0.2x, which simplifies to g(x) = 0.8x. Substituting x = 115, we get g(115) = 0.8 * 115 = 92.
Therefore, the item will cost $92 after applying the coupons.
c. After applying the "20% off" coupon first and then the "$25 off" coupon, the item will cost $93.
d. Using function notation, let's represent the "20% off" coupon function as f(x) and the "$25 off" coupon function as g(x). We want to find g(f(140)), which means applying the "20% off" coupon first and then the "$25 off" coupon.
To apply the "20% off" coupon, we use f(x) = 0.8x, where x represents the original cost of the item. Substituting x = 140, we get f(140) = 0.8 * 140 = 112.
Now, to apply the "$25 off" coupon, we use g(x) = x - 25. Substituting x = 112, we get g(112) = 112 - 25 = 87.
Therefore, the item will cost $87 after applying the coupons.
In both scenarios, we have two functions, f(x) and g(x), representing the "$25 off" and "20% off" coupons, respectively. The order of applying the coupons affects the final cost.
In scenario a, we apply the "$25 off" coupon first, reducing the cost from $140 to $115. Then we apply the "20% off" coupon to the reduced cost, which is 20% of $115, resulting in a final cost of $92.
In scenario c, we apply the "20% off" coupon first, reducing the cost from $140 to $112. Then we apply the "$25 off" coupon to the reduced cost, resulting in a final cost of $87.
The function notation allows us to represent these calculations concisely. By substituting the original cost into the respective functions and evaluating them, we can determine the final cost after applying the coupons in the desired order.
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Calculate the value of a bond that is expected to Mature in to 18
years with a $1000 face value . The coupon rate is 4%, and the
required rate of return is 8% . Intrest is paid annually
A bond is a debt security instrument that is issued to raise funds by the borrower or issuer. It promises to pay the bondholders a fixed interest rate on the face value of the bond until the maturity date.
The face value is also called the principal, and it is the amount that is borrowed by the issuer. Calculation of the bond value that is expected to mature in 18 years with a [tex]$1000[/tex] face value with an annual coupon rate of 4% and the required rate of return is 8%.
The interest is paid annually using the formula for bond valuation;
[tex]Bond Value = (Annual Coupon Payment / Required Rate of Return)[/tex]
*[tex][1 - 1 / (1 + Required Rate of Return) ^ Number of Years][/tex] + [tex]Face Value / (1 + Required Rate of Return) ^ Number of Years.[/tex]
Using the given values, we have:
[tex]Annual Coupon Payment = Face Value[/tex]
[tex]* Coupon Rate= $1000[/tex]
[tex]* 4% = $40[/tex]
[tex]Required Rate of Return = 8%[/tex]
[tex]Number of Years = 18[/tex]
Using the values in the formula, we get:
[tex]Bond Value = ($40 / 8%)[/tex]
[tex]* [1 - 1 / (1 + 8%) ^ 18] + $1000 / (1 + 8%) ^ 18= $500[/tex]
[tex]* (1 - 0.1874) + $261.47[/tex]
[tex]= $406.53 + $261.47[/tex]
[tex]= $668[/tex]
The bond value that is expected to mature in 18 years with a [tex]$1000[/tex] face value with an annual coupon rate of 4% and the required rate of return is 8% and the interest is paid annually is [tex]$668[/tex].
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the enforcing of norms through either internal or external means is called a(n)
The enforcing of norms through either internal or external means is called a sanction.
A sanction refers to a consequence or measure applied to enforce adherence to social norms, rules, or laws. It can be either a positive sanction, which rewards conformity, or a negative sanction, which punishes or discourages non-conformity.
Internal sanctions are self-imposed and arise from an individual's internalized sense of right and wrong or a desire for social acceptance. They can include feelings of guilt, shame, or pride based on one's own actions and their alignment with personal values or societal expectations. Internal sanctions motivate individuals to behave in accordance with established norms and moral standards.
External sanctions, on the other hand, are imposed by external entities such as social groups, institutions, or authorities. They can take various forms, including legal penalties, fines, social ostracism, public criticism, or rewards and recognition. External sanctions serve as deterrents or incentives to encourage individuals to comply with established norms and rules within a society.
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Blue Mountain Distributors has a $40 million bond outstanding that carries a 12 percent coupon rate paid annually. Current bonds yield are 9.5 percent. The $40 million bond was issued 20 years ago with 30 years to maturity and carries a call premium of 5%. With the fall in interest rates the company's Finance Manager has recommended that the bond be refunded. The new bond issue would require $1.2 million in underwriting cost and an overlap period of one month is anticipated. Short term money market rates are currently 7 percent and Blue Mountain has a tax rate of 40 percent. Required: Advise Blue Mountain Distributors on whether or not they should refund the bond. (Show all calculations)
Given:Blue Mountain Distributors has a $40 million bond outstanding that carries a 12 percent coupon rate paid annually. Current bonds yield are 9.5 percent.
The $40 million bond was issued 20 years ago with 30 years to maturity and carries a call premium of 5%.The new bond issue would require $1.2 million in underwriting cost and an overlap period of one month is anticipated.Short term money market rates are currently 7 percent and Blue Mountain has a tax rate of 40 percent.To find:Should Blue Mountain Distributors refund the bond?Solution:The call price is the present value of $1000 paid annually for 30 years and discounted at 12% plus 5% premium for a bond callable at $1050.Call price = PV of annuity + premium= $1000 × [1 - 1/(1.12)30] / 0.12 + $1050 × (1 / 1.12)30= $9379.36 + $118.46= $9497.82
The company would receive $9497.82 for every $1000 bond if they decide to call the bond.The current value of the bond is the present value of $120 coupon payment plus the present value of the call price discounted at the yield to maturity.Yield to maturity (YTM) of old bond = 12%Current yield of bonds = 9.5%Therefore, the bond price should be higher than its par value, so it is selling at a premium.
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When investors tend to increase their investments in debt securities into those on the long end of the spectrum rather than those with short-term maturities, it generally leads to
A) long-term yields that greatly exceed short-term yields.
B) a positive yield curve.
C) an inverted yield curve.
D)a flat yield curve.
When investors tend to increase their investments in debt securities into those on the long end of the spectrum rather than those with short-term maturities, it generally leads to a positive yield curve. The correct option is B.
A positive yield curve results from investors placing more of their money into debt securities with long maturities than short maturities. In a scenario with a positive yield curve, long-term yields are greater than short-term rates.
This is a reflection of the market's expectation that interest rates will rise in the future and serves as compensation for the higher risk involved with longer-term investments.
Thus, the ideal selection is option B.
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Give an introduction of the case with clear description of the characteristics of the local telecommunication retail market in Singapore. The introduction should also include some analysis of the demand, supply and elasticity concepts of telecommunication retail market before the entry of MVNOs.
The telecommunication retail market in Singapore has evolved over the years and has seen significant growth in terms of demand, supply and elasticity concepts. In the past, the market was dominated by three major players, SingTel, Starhub and M1.
However, with the entry of Mobile Virtual Network Operators (MVNOs) in recent years, there has been an increase in competition in the market. The demand for telecommunication services in Singapore has been on the rise over the years, driven by the increasing use of mobile devices and the internet.
Consumers are constantly seeking faster and more reliable networks and telecommunication services, which has resulted in increased competition in the market. With the entry of MVNOs, the demand for telecommunication services has become more elastic, as consumers have more options to choose from.
This has also resulted in a reduction in prices, as the major players try to compete with the MVNOs. Supply in the telecommunication retail market in Singapore is also influenced by factors such as regulations, infrastructure, and technology.
The three major players have invested heavily in infrastructure to support their networks, which has given them a competitive edge. However, with the entry of MVNOs, the supply in the market has become more elastic, as there are now more players in the market competing for the same resources and infrastructure.
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What is the Future value of a annuity where the investor pays
$8,000 every year for 10 years and the provided rate of interest is
5.5%
The future value of the annuity where the investor pays $8,000 every year for 10 years and the provided rate of interest is 5.5% is $245,069.22.
The formula for the future value of an annuity is:
Future value of an annuity = [PMT * (((1 + r)n - 1) / r)]
where PMT = periodic payment,
r = interest rate,
n = number of periods.
Following are the steps to calculate the future value of an annuity:
Step 1: Calculate the interest rate per period.
r = 5.5%
= 0.055 (as the rate is provided annually, we need to find the rate for the payment period)
Step 2: Calculate the number of periods.
n = 10 years
Step 3: Calculate the future value of the annuity by applying the formula.
FV = [8000 * (((1 + 0.055)10 - 1) / 0.055)]
FV = [8000 * ((1.6726) / 0.055)]
FV = 245,069.22
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Banana hospital has annual patient service revenues of $48,253,000. It has two major third- party payers, and some of its patient are self-payers. The hospital’s patient accounts manager estimates that %15 of the hospitals’ billings are paid (received by the hospital) on day 30, 55% are paid on day 60, and 30 % are paid on day 90.
1. What is Banana hospital’s average collection period (ACP)?
2.What would be the hospital’s new receivables balance if a newly proposed electronic claims system resulted in collecting from third-party payers in 15, 45 and 75 days, instead of 30, 60 and 90 days?
pls show me the steps thank you
The average collection period (ACP) is calculated using the following formula:
ACP = (Accounts receivable ÷ Average daily sales) × Number of days in period
Where;
Accounts receivable is the total amount of money owed to the hospital.
Average daily sales are the average amount of money earned per day by the hospital.
Number of days in the period is the number of days in the period (usually a year).
Thus,
ACP = ($48,253,000 ÷ 365) × [(0.15 × 30) + (0.55 × 60) + (0.3 × 90)]= $131,630.14
Banana hospital’s average collection period (ACP) is approximately 132 days.
If the proposed electronic claims system is implemented, the average collection period will be reduced.
The hospital will receive payment on the 15th day for 15% of its billings, on the 45th day for 55% of its billings, and on the 75th day for the remaining 30% of its billings.
The new average collection period can be calculated using the formula:
ACP = (Accounts receivable ÷ Average daily sales) × Number of days in period
ACP = (Accounts receivable ÷ $48,253,000) × 365
If the new receivables balance is R, then:
ACP = (R ÷ $48,253,000) × 365
Also, it is given that 15% of the billings will be paid on day 15, 55% on day 45, and 30% on day 75. Therefore, the amount of receivables on each day can be calculated as follows
This implies that there would be no significant improvement in the average collection period if the proposed electronic claims system is implemented.
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expert card has an apr of 20.4% compounded monthly. passport has a daily periodic interest rate of 0.0425%. explore has a monthly periodic interest rate of 1.55%. which card has the higher apr? (2 points) expert card passport explore expert card and explore are equally high
The APR (Annual Percentage Rate) is used to compare the cost of borrowing on different credit cards. It represents the annualized interest rate charged on the outstanding balance of the credit card.
To determine which card has the higher APR, let's compare the rates: Expert card: APR of 20.4% compounded monthly. Passport card: Daily periodic interest rate of 0.0425%. Explore card: Monthly periodic interest rate of 1.55%. To compare these rates, we need to convert them to the same compounding period. The Expert card has a monthly compounding period, so its APR is already in the correct format.
To convert the Passport card's daily periodic interest rate to a monthly periodic interest rate, we multiply it by the number of days in a month (approximately 30): 0.0425% * 30 = 1.275%. The Explore card's monthly periodic interest rate is already in the correct format. Now, let's compare the APRs Comparing the APRs, we can see that the Expert card has the highest APR of 20.4%. The Passport card has an APR of 15.3%, and the Explore card has an APR of 18.6%. Therefore, the Expert card has the highest APR among the three options provided.
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What is the effective annual rate on a savings account that offers 6.5% compounded monthly? A> 6.1% B> 5.5% C> 6.7% D> 7.4%
A savings account with a 6.5% monthly compound interest rate has an effective annual rate of 6.7%.. Option C is correct.
Effective annual rate (R) = [1+(i/n) ]ⁿ -1
where as,
R = effective annual rate = ?
i = monthly interest rate = 6.5%
n = number of compounding periods = 12
monthly interest rate = 6.5%= 0.065
Effective Annual Rate (R) = [ 1+(i/n) ]ⁿ - 1
Effective Annual Interest Rate (R) = 0.066972
= 6.6972
= 6.67% (approximately)
(1+(0.065/12))¹² = 1.066972
Effective Annual Interest Rate = 6.7%
A savings account is a good way to keep your money safe and earning interest. With a bank account, you can keep up with your investment funds in a fluid state — meaning you can get to your assets at whatever point you need — while likewise putting a few space between your investment funds and your day to day spending needs.
Minimum balance requirements, lower interest rates than other accounts or investments, and federal withdrawal limits are three drawbacks of savings accounts.
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goshen company applies overhead on the basis of 120% of direct labor cost. job no. 150 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. the total manufacturing costs for job no. 150 is
The total manufacturing costs for job no. 150 amount to $470,000.
To calculate the total manufacturing costs for job no. 150, we need to determine the direct labor cost first. Since Goshen Company applies overhead on the basis of 120% of direct labor cost, use this information to find the direct labor cost.
Let's assume the direct labor cost for job no. 150 is DL.
Manufacturing Overhead = 120% of Direct Labor Cost
$180,000 = 1.2 ×DL
Dividing both sides of the equation by 1.2,
DL = $180,000 / 1.2
DL = $150,000
Now that the direct labor cost, calculate the total manufacturing costs for job no. 150.
Total Manufacturing Costs = Direct Materials Cost + Direct Labor Cost + Manufacturing Overhead
Total Manufacturing Costs = $140,000 + $150,000 + $180,000
Total Manufacturing Costs = $470,000
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Bank Negara Malaysia has joined the ranks of countries that have raised interest rates in the fight against inflation. In a somewhat surprise move, the central bank has increased its overnight policy rate (OPR) to 2% from a record low of 1.75%, where it had been since July 2020. A Bloomberg survey found that 19 out of 24 economists had forecast an unchanged OPR of 1.75%.
In its monetary policy statement, Bank Negara cited the sustained improvements in domestic demand on the back of sustained export growth and lower unemployment rate amid improvements in the labour participation rate as factors behind the policy action. The country’s transition to Covid-19 endemicity, along with the reopening of borders and relaxation of movement restrictions, will also help drive economic activity.
Key risks to growth cited include the further escalation of geopolitical conflicts, supply chain disruptions, adverse change in the development of Covid-19 and weaker-than-expected global growth. Looking at central banks around the world, it all started with the US Federal Reserve raising the Fed funds rate by 0.5% this month. It has guided for similar hikes to take place in June and July, followed by three more 0.25% hikes before the end of 2022.
Other central banks in Asia-Pacific such as the Reserve Bank of Australia and the Reserve Bank of New Zealand have done similar things to tighten monetary conditions, citing the need to control inflationary pressures that were already high due to supply chain disruptions and later made worse by the Russia-Ukraine crisis.
In Malaysia, headline inflation is projected to average between 2.2% and 3.2% in 2022, with core inflation likely to average between 2% and 3%. The less aggressive price pressure is the result of existing price controls put in place and spare capacity in the domestic economy.
While Malaysia’s inflation outlook remains well within normal range, the need for low, business-supportive interest rates is no longer apparent. Back in 2020, when on account of the pandemic, Bank Negara reduced the OPR a record 1.25% (to 1.75% from 3%) over a short span, it was to ensure ample monetary support during such unprecedented conditions. However, the domestic economy has recovered and is on firmer ground. The central bank has thus guided for a measured and gradual increase of the OPR while remaining accommodative to sustain a healthy economy.
Such a global environment of elevated inflation, accelerating interest rates, rising government bond yields and a strong US dollar presents a sober outlook for the global economy. Indeed, growth prospects have dimmed somewhat for 2023 to reflect not only the above factors but also the disruption caused by the Covid-19 lockdowns in China. Even as the Chinese government has refocused its attention on its previous pro-growth strategy, the dynamic zero- Covid policy lockdowns are likely to have an impact on economic growth in the immediate aftermath
(Source: The Edge Malaysia- June 7, 2022- Michael Lai)
Based on the article above, answer the following questions:
3
a) What is inflation, and what causes it?
b) What does high inflation indicate about the economic conditions?
c) Elaborate TWO (2) factors which cause inflation to accelerate globally
d) "Key rfsks to growth cited include the further escalation of geopolitical confiicts, supply chain disruptions, adverse change in the development of Covid-19 and weaker- than-expected global growth". Based from this statement, what type of risk is cited in the article? Justify your answer
e) What is the relationship between inflation and interest rate, and how does it affect the investor’s required rate of return?
What are the THREE (3) factors which caused Bank Negara Malaysia to increase the interest rate? Do you think this move can help our country to beat the inflationary pressure?
Yes, this move can help Malaysia to beat inflationary pressures by reducing excess demand and controlling the supply of money, which can help to stabilize prices and promote economic growth in the long run.
a) Inflation refers to the rate at which the general price level of goods and services is increasing over a certain period of time. It is caused by several factors including excess demand and low supply, cost-push inflation, demand-pull
inflation, and monetary factors such as an increase in money supply.
b) High inflation indicates that the general price level of goods and services is increasing rapidly, which can lead to a decrease in purchasing power and a reduction in the standard of living.
c) Two factors that cause inflation to accelerate globally are supply chain disruptions and rising commodity prices. Supply chain disruptions can cause shortages of goods, which lead to increased demand and higher prices.
d) The type of risk cited in the article is economic risk. This is because the factors mentioned, such as geopolitical conflicts, supply chain disruptions, adverse changes in the development of Covid-19, and weaker-than-expected global growth, all have the potential to negatively impact economic growth and stability.
e) Inflation and interest rates have an inverse relationship, meaning that when inflation rises, interest rates tend to increase as well. This is because central banks raise interest rates to combat inflation by reducing the amount of money in circulation, which can help to slow down the rate of inflation.
The three factors that caused Bank Negara Malaysia to increase the interest rate are sustained improvements in domestic demand, the country's transition to Covid-19 endemicity, and the need to control inflationary pressures.
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A company had average total assets of $3,660,000, total cash flows of $2,520,000, cash flows from operations of $505,000, and cash flows from financing of $1,350,000. The cash flow on total assets ratio equals: Multiple Choice 13.80% 13.10%. 68.85% 24.90%,
Option (a), The cash flow on total assets ratio equals 13.80%.
Cash flow on total assets ratio is calculated by dividing the net cash flows from operations by the average total assets. The cash flow on total assets ratio is a measure of how well a business has generated cash flow from its assets. It determines the percentage of cash generated from the company's assets. Thus, the cash flow on total assets ratio is an important metric to calculate to assess a company's financial performance.
The formula to calculate the cash flow on total assets ratio is as follows:
Cash flow on total assets ratio = Cash flow from operations / Average total assets
Given that the company had average total assets of $3,660,000, total cash flows of $2,520,000, cash flows from operations of $505,000, and cash flows from financing of $1,350,000. Therefore, the average total assets can be calculated as follows:
Average total assets = ($3,660,000 + $3,660,000) / 2= $3,660,000
Cash flow on total assets ratio = Cash flow from operations / Average total assets
= $505,000 / $3,660,000
= 0.1380
Therefore, the cash flow on total assets ratio equals 13.80% Hence, option A is correct.
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Talk about (Revised) IAS No. 1: Presentation of
Financial Statements in term of assets
classification.
(Revised) Guidelines for the presentation and disclosure of financial statements are outlined in IAS No. 1: Presentation of Financial Statements.
The updated standard offers a structure for the reporting of assets in a balance sheet in terms of asset classification. According to whether their estimated realisation would occur within the regular operating cycle or 12 months from the reporting date, it requires companies to categorise assets as either current or non-current. Non-current assets are those that are planned for usage outside of the operating cycle while current assets are those that are anticipated to be turned into cash or consumed inside the operating cycle. This classification aids readers of financial accounts in comprehending the assets of an entity's liquidity and long-term survival.
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Ellis Don Construction company have obtained a large construction project from the Government of Ethiopia in Africa. As part of the Tender Process, the project spans 4 years at a maximum ceiling cost of USD 2 Billion Dollars. However, the target cost for this project has been fixed at USD 1.5 Million Dollars. Due to the risky nature of this project owing to the volatile economic and political conditions prevalent in Ethipia, both parties have come to a decision on the method to calculate the incentive, based on the contractual performance of the contractor and the level of applicable proft. This proft / incentive adjustment method is based on a 60/ 40 ratio. After contract performance evaluation, if the final cost of the project is less than the target cost, then the contractor will be paid, the final cost, the proft and the incentive which is calculated at 60% of the total profit. Conversely, after contract performance evaluation, if the final cost of the project is more that the target cost, then the contractor will be paid, the final cost, the proft and the incentive which is calculated at 40% of the total profit, in which case, the incentive to the contractor decreases a. This contract is an FPIF contract, since the scope of work is fixed b. This contract is an FPIF contract since FPIF contracts shares the risk between buyer and contractor c. This contract is an FPEPA contract due to the volatility of the economic and political conditions in Ethiopia d. This contract is a CS contract, because the incentives are shared Jansen Brothers Construction-ABC IT Solutions Ltd has just received a large construction project involving the Design, Construction, Testing and Commissioning of a Hospital Infrastructure. However, since this project involves a large Information Technology Implementation, Jansen Brothers Construction had formed a partnership / joint venture with ABC IT Solutions Ltd, by signing a contract with ABC. This has enabled the risk between both Jansen Brothers Construction and ABC IT Solutions to a. Transfer the risk, since this is a contract between Jansen Brothers Construction and ABC IT Solutions Ltd, and does not depend on the Joint Venture Agreement b. Share the risk, since even though the contractis a risk transference tool, nevertheless, both parties have entered into a Partnership / Joint Venture Agreement c. Mitigate the risk, since Jansen Brothers has entered a subcontract with ABC IT Solutions d. Transfer the risk from Jansen Brothers Construction to ABC IT Solutions Ltd, since contract is a form of risk transference tool
The correct statement is: a. Transfer the risk, since this is a contract between Jansen Brothers Construction and ABC IT Solutions Ltd, and does not depend on the Joint Venture Agreement.
How to explain the informationThis means that the risk has been transferred from Jansen Brothers Construction to ABC IT Solutions Ltd through the terms and conditions outlined in the contract. The contract specifies the responsibilities, obligations, and liabilities of each party, including the risks they assume.
The joint venture agreement, on the other hand, refers to the broader agreement between Jansen Brothers Construction and ABC IT Solutions Ltd regarding the collaboration and partnership aspects of the project. While the joint venture agreement may include provisions related to risk sharing or allocation, the primary tool for risk transfer in this case is the contract between the two parties.
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Suppose the interest rate is 9.4% APR with monthly compounding. What is the present value of an annuity that pays $89 every 6 months for 4 years?
A) The 6 month effective interest rate is
B) The present value is
A) The 6 month effective interest rate is 0.047%n = 0.094/12B) The present value is $ 1163.60The present value of the given annuity that pays $89 every 6 months for 4 years, at a monthly interest rate of 9.4%/12 = 0.783% is computed as shown below:
Use the formula for the present value of an annuity to calculate the present value of the given annuity.
\[PV=\frac{C[1-\frac{1}{(1+i)^{n}}]}{i}\]
Where PV is the present value of the annuity, C is the payment made, i is the interest rate per compounding period, and n is the total number of payments to be made.The amount to be calculated can be split into 8 payments made every 6 months.
Therefore, n = 8, C = $89.The interest rate i per 6 months is calculated as follows: Annual interest rate = 9.4%, Compounding frequency = 12 per year, therefore compounding period, m = 12/2 = 6.Using the formula:\[i = (1 + r/m)^{m}-1\]where, r is the annual interest rate, m is the number of compounding periods per year.\[i = (1 + 0.094/6)^{6}-1 = 0.047\]Therefore, i = 0.047 or 4.7% per 6 months. Substituting values into the formula,\[PV = \frac{89[1 - \frac{1}{(1+0.047)^{8}}]}{0.047}\]\[PV = \frac{89[1 - 0.66398]}{0.047}\]\[PV = 1163.60\].Hence, the present value of the given annuity that pays $89 every 6 months for 4 years at 9.4% APR with monthly compounding is $1163.60.
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Philadelphia Supply Corporation (PSC) produces and distributes various products for the hospitality industry. It is organized in two divisions: Assembly and Packaging. The managers of both divisions are evaluated and compensated based on divisional income. Assembly only "sells" to Packaging. Packaging prepares the items for a particular customer (adding labels, logos, and so on), prepares them for delivery, and ships them to the customer.
Information on revenues and costs for the latest quarter for each division follows. Production and sales quantities, measured in "standard units," were 3,000 units for the quarter.
Assembly Packaging
Sales revenue $ 195,000 $ 900,000
Direct materials 105,000 385,000
Direct labor 55,000 170,000
Variable overhead 20,000 45,000
Fixed costs 40,000 180,000
A local hotel is hosting a special convention next month and has asked for a special price for 500 units at a total price of $102,500. After hearing about the order, the Assembly Division manager insists that the transfer cost (the transfer price multiplied by 500 units) be set at $40,000. There is sufficient excess capacity in Assembly to handle the special order.
Required:
1. What is the current transfer price for a unit?
2. Does PSC (the corporation) want to accept this order?
3. Will the Assembly Division manager be willing to accept this order if the transfer cost is $40,000?
4. Will the Packaging Division manager be willing to accept this order if the transfer cost is $40,000?
1. The current transfer price for a unit: Transfer price is the price at which one division sells its products to another department or division within the same company. In the case of PSC, the Assembly department sells its products to the Packaging department.
In this instance, the transfer cost per unit is calculated as follows:$40,000/500 units = $80 per unit, therefore the current transfer price per unit is $80.2. Does PSC (the corporation) want to accept this order?The total cost per unit for this special order will be $205 per unit.
The current selling price for Packaging is $300 per unit. Thus, the corporation should agree to the order since it would generate a profit of $95 per unit.3. Will the Assembly Division manager be willing to accept this order if the transfer cost is $40,000.
The total cost per unit for this special order will be $205 per unit. The current transfer cost is $80 per unit. Therefore, it is reasonable to conclude that the Assembly Division Manager will be happy to accept this order, given that it generates a profit of $125 per unit ($205-$80).4.
Will the Packaging Division manager be willing to accept this order if the transfer cost is $40,000?Yes, since the transfer cost per unit is significantly less than the current selling price per unit of $300.
This means that Packaging Division will still make a profit even though they are giving a special discount for the 500 units of product.
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please help solve!
14,675 decrease 3,850 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (AmoL deducted should be indicated with a minus sign.)
Given information:14,675 decrease3,850 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (AmoL deducted should be indicated with a minus sign.)Operating activities: Operating activities refer to the main activities that are undertaken by a company for generating revenue. Direct method: Under this method, cash inflow and cash outflow are calculated separately.
Preparation of operating activities section of cash flow statement :Calculation of operating activities: Cash inflows from operating activities: Sale revenue - 3,850Add: Decrease in account receivable - 14,675Cash generated from operations - (3,850 - 14,675) = $10,825Cash outflows from operating activities :Payments made to suppliers -Amount paid to employees -Cash paid for other expenses -Total cash outflows from operating activities -Net cash inflow from operating activities - $10,825 (computed above) - $0 (as no financing or investing activities are given) = $10,825Therefore, the operating activities section of the statement of cash flows using the direct method will be as follows: Operating Activities Cash inflows from operating activities: Sale revenue$ 3,850Decrease in account receivable$ 14,675Cash generated from operations$ 10,825Cash outflows from operating activities: Payments made to suppliers Amount paid to employees Cash paid for other expenses Total cash outflows from operating activities Net cash inflow from operating activities$ 10,825
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A loan of $15,000 is to be repaid in 4 equal payments (over 4 years) and the interest rate is 10% per year. Determine the principal repayment amount at end of year 2 ? a. $3,910.79 b. $3,232.06 c. $3,555.27 d. $3,0,070 e. $2,10,562
The principal repayment amount at the end of year 2 is $3,910.79. Here's how to arrive at the solution: The principal amount borrowed is $15,000.The interest rate is 10% per year.
Therefore, the interest rate for each of the four years will be 10/4 = 2.5%.We have to find the principal repayment amount at the end of year 2.
At the end of year 1, the outstanding balance will be
[tex]$15,000 + $15,000 × 2.5% = $15,000 + $375 = $15,375.[/tex]
At the end of year 2, the outstanding balance will be:
[tex]$15,375 + $15,375 × 2.5% = $15,375 + $384.38 = $15,759.38[/tex]
This means that in the first two years, the borrower paid back
[tex]$15,759.38 - $15,000 = $759.38[/tex] in total.
At the end of year 2, the borrower still has 4 - 2 = 2 years left to pay back the loan. Therefore, the remaining loan balance after the second year will be paid back in 2 equal payments over the third and fourth years. Using the present value formula, we can find out the size of each of these two payments:
PV = FV / (1 + r)n where PV is the present value of the payment, FV is the future value of the payment, r is the interest rate per period, and n is the number of periods.
Let's use PV1 to represent the present value of the payment to be made at the end of year
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what was the state of the canada economy during 2020? what was the state of the economy before the pandemic? collect time series data on nominal GDP, real GDP, per capita real GDP, unemployment rate ,bank rates, supply of money, bond yields, exchange rate(s), and any other important macroeconomic data?
The state of Canada's economy in 2020 was negatively impacted by the COVID-19 pandemic. The pandemic led to the government imposing restrictions on businesses and individuals to curb the spread of the virus.
This led to a contraction in the economy and a rise in unemployment. The government intervened by providing stimulus packages to support businesses and individuals. The economy before the pandemic was relatively stable, with a low unemployment rate and steady GDP growth.
The economy was driven by a thriving manufacturing industry, natural resources, and service sectors. Here is a summary of the state of Canada's economy before and during the pandemic based on the time series data on various macroeconomic indicators.
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A customer buys 1,000 shares of XYZ at $47. Several months later, the stock is at $56. The customer, concerned about a possible pullback and wanting to best protect the unrealized gain, should:
A) sell 10 XYZ 55 puts.
B) sell 10 XYZ 60 calls.
C) buy 10 XYZ 55 puts.
D) buy 10 XYZ 60 calls.
C) Buy 10 XYZ 55 puts.A customer buys 1,000 shares of XYZ at $47. Several months later, the stock is at $56.
Buying 10 XYZ 55 puts would be the best choice to protect the unrealized gain. By purchasing put options, the customer gains the right to sell the stock at the strike price (in this case, $55) even if the stock price drops. If the stock experiences a pullback, the customer can exercise the put options and sell the shares at the higher strike price, limiting potential losses. This strategy acts as a form of insurance against downward price movements and helps protect the unrealized gain in case of adverse market conditions.
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Essay Question: should project managers only pay attention to
managing negative risk on their projects?
Project managers should not only pay attention to managing negative risks on their projects as they may fail to benefit from positive risks. Instead, they should focus on risk management as a whole, which includes both negative and positive risks. This will enable them to identify and exploit positive risks while mitigating negative risks.
1. Project managers should not only focus on managing negative risks on their projects as it is important to also benefit from positive risks. In addition, ignoring positive risks could lead to missed opportunities for the project.
2. Therefore, project managers should focus on risk management as a whole. This involves identifying and assessing both positive and negative risks and implementing strategies to mitigate the negative risks while exploiting the positive risks.
3. By adopting a comprehensive risk management approach, project managers can achieve their project goals while minimizing the impact of negative risks and maximizing the benefits of positive risks. This can result in increased project success and stakeholder satisfaction.
Project managers have a responsibility to manage risks on their projects to ensure successful project outcomes. However, risk management should not only be focused on negative risks but should also consider positive risks. Ignoring positive risks could lead to missed opportunities for the project.
Thus, project managers need to adopt a comprehensive risk management approach that considers both negative and positive risks. By identifying and assessing both negative and positive risks, project managers can implement strategies to mitigate negative risks while exploiting positive risks.
This will enable them to achieve project goals while minimizing the impact of negative risks and maximizing the benefits of positive risks. Overall, a comprehensive approach to risk management can result in increased project success and stakeholder satisfaction.
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