A nation implements a policy that restricts licenses and permits for all firms that want to enter its market and establish short-term operations without foreign direct investment. What type of adverse action is this policy MOST likely to create?
Expropriation
Trade controls
Currency limits
Contract breach

Answers

Answer 1

The type of adverse action that the policy is most likely to create is trade control. What are trade controls?Trade controls are a policy implemented by a government to regulate the flow of goods and services between nations.

These policies are intended to protect the domestic economy by limiting the amount of imports and exports permitted to enter and leave the country. Trade controls may take various forms, including tariffs, quotas, and embargoes. Tariffs are a type of tax that is levied on imported goods. Quotas limit the amount of goods that can be imported. Embargoes prohibit the trade of specific products with a particular country.

The given policy that restricts licenses and permits for all firms that want to enter its market and establish short-term operations without foreign direct investment is most likely to create trade controls, since it is limiting the amount of foreign firms that can establish short-term operations within its market without investing directly.

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Related Questions

Assume the following characteristics for a particular bond:

Face value=$1000

Annual coupon payment=$60

(First payment due in 1 year)

Internal yield to maturity = 7%

Term= 3 years

Compute the Macaulay duration of the bond.
Given your answer to part (i), compute the approximate change in the bond’s value if the internal yield fell to 6.5 percent. (You should use the duration in part (i) for this computation.)
Compute the actual change in the bond’s value.

Answers

To calculate the Macaulay duration of the bond, we need to determine the present value of each cash flow and then weigh it by the respective period. The formula for Macaulay duration is as follows:

Macaulay Duration = [Present Value of Cash Flow * Time Period] / Current Bond Price

Given the characteristics of the bond, we can calculate the Macaulay duration as follows:

Year 1:

Present Value = $60 / (1 + 0.07)^1 = $56.07

Year 2:

Present Value = $60 / (1 + 0.07)^2 = $52.45

Year 3:

Present Value = $1060 / (1 + 0.07)^3 = $884.46

Current Bond Price = Present Value of Year 1 + Present Value of Year 2 + Present Value of Year 3

= $56.07 + $52.45 + $884.46 = $993.98

Macaulay Duration = [(56.07 * 1) + (52.45 * 2) + (884.46 * 3)] / 993.98

≈ 2.86 years

The Macaulay duration of the bond is approximately 2.86 years.

To compute the approximate change in the bond's value if the internal yield fell to 6.5 percent, we can use the following formula:

Approximate Change in Bond Value = - Macaulay Duration * ΔYield * Current Bond Price

ΔYield = 6.5% - 7% = -0.5%

Approximate Change in Bond Value = -2.86 * (-0.005) * $993.98

≈ $14.34

The approximate change in the bond's value would be a decrease of approximately $14.34 if the internal yield fell to 6.5 percent.

To compute the actual change in the bond's value, we need to calculate the new present value of each cash flow using the new yield, and then subtract the new bond price from the initial bond price.

New Year 1 Present Value = $60 / (1 + 0.065)^1 ≈ $56.50New Year 2 Present Value = $60 / (1 + 0.065)^2 ≈ $52.85New Year 3 Present Value = $1060 / (1 + 0.065)^3 ≈ $888.94

New Bond Price = New Present Value of Year 1 + New Present Value of Year 2 + New Present Value of Year 3

= $56.50 + $52.85 + $888.94 ≈ $998.29

Actual Change in Bond Value = New Bond Price - Current Bond Price

= $998.29 - $993.98 ≈ $4.31

The actual change in the bond's value would be an increase of approximately $4.31 if the internal yield fell to 6.5 percent.

About value

The term in mathematics, the meaning of value is a numerical amount denoted by algebraic terms, quantities, quantities, or numbers.

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Please select/circle the correct answer.
A cost is not relevant for decision making if it
A. Does not differ for each option available to the decision maker.
B. Changes from period to period.
C. Is a future cost.
D. Is a mixed cost.
E. Is a fixed cost.

Answers

The correct answer is A. Does not differ for each option available to the decision maker.

When making decisions, it is important to consider costs that vary among different alternatives. If a cost remains constant and does not differ for each option, it does not provide relevant information for decision making. Irrelevant costs are those that do not impact the decision outcome and are not affected by the alternatives under consideration.

On the other hand, costs that change from period to period (B), are future costs (C), or are mixed costs (D) can all be relevant factors in decision making, as they provide insights into the potential costs associated with different options. Fixed costs (E) can also be relevant if they vary between alternatives.

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17. (not included) A company that is allowed to provide such service as wireless, satellite or cable telecommunications is called a. Local exchange carrier; b. Private branch exchange; c. Competitive

Answers

The main answer to the question is option c. Competitive. A company that is permitted to offer services such as wireless, satellite, or cable telecommunications is referred to as a competitive company Competitive companies are businesses that are authorized

to provide different forms of telecommunications, such as wireless, satellite, or cable, among others. They provide customers with the possibility of selecting from a variety of providers and types of telecommunications services. Competitive telecommunications providers, in comparison to local exchange carriers, have more significant freedom and flexibility in terms of pricing and service selection. Competitive telecommunications companies' primary goal is to meet

the demands of their clients by delivering innovative telecommunications solutions to the market. Their primary objective is to provide consumers with the best possible service and to help them stay connected to the world. Telecommunications companies have become a vital component of people's lives today, given the ever-increasing importance of communication in today's world. In summary, the explanation of the main answer is that competitive companies are telecommunications providers that are permitted to offer various forms of communication services, such as wireless, satellite, or cable, to their customers. They aim to meet the demands of their clients by providing them with innovative solutions and a broad range of services.

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all
else equal, $1 of _____ is more beneficial for the taxpayer (in
terms of lowering the final amount of tax due) than $1 of______
a. tax deduction, tax credit
b. tax credit, tax deduction
c. neither

Answers

All else is the same, $1 of B. tax credit is more useful to the taxpayer (in terms of lowering the final amount of tax due)  than $1 of tax deduction

A tax credit is a reduction in taxes owed, whereas a tax deduction is a reduction in taxable income and, as a result, reduces the amount of tax owed. Tax credit is a reduction in taxes owed. It's a dollar-for-dollar reduction in the amount of taxes you have to pay. It decreases the amount of tax owed and helps to lower your tax bill. If you have a tax credit of $1,000, your tax bill will be reduced by $1,000. Tax credits are advantageous because they offer a direct decrease in taxes owed, making them more useful to taxpayers. Tax credits include things like child tax credits and earned income tax credits.

A tax deduction is a reduction in your taxable income, it lowers the amount of income that is subject to taxation, which can decrease your tax bill. If you have a $1,000 tax deduction, it will reduce your taxable income by $1,000, and you will only have to pay taxes on the remaining taxable income. Tax deductions, on the other hand, are less beneficial since they only lower the amount of income that is subject to taxation, which results in a lower tax bill. Examples of tax deductions are charitable donations, mortgage interest, and property taxes. So therefore All else is the same, $1 of B. tax credit is more useful to the taxpayer  than $1 of tax deduction.

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This assignment is based on the four P's - Product, Price, Place and Promotion
In approximately 250 words describe why it is important for marketers to keep the 4 Ps in balance. I do not want a definition of the 4 P's but rather a description of their importance.

Answers

The four Ps in marketing are Product, Price, Place, and Promotion, which are essential components of any marketing plan. It is vital for marketers to keep the four Ps in balance for successful marketing campaigns.

Here are some reasons why it is essential for marketers to maintain a balance between the four Ps:

Product: The product is the main focus of marketing. The product must fulfill a need or desire, be high quality, and provide value for the customer

Price: The price must be set in such a way that customers are willing to pay it, but the company still makes a profit. Marketers must consider competitors' prices, demand, and the company's cost to price the product appropriately.

Place: The product must be easily accessible to the customer, at the right place and time. Marketers must determine the distribution channels that best suit the product.

Promotion: The message of the product must be communicated effectively to the target market through advertising, sales promotions, public relations, and personal selling.

The four Ps of marketing must be balanced to ensure the overall marketing objectives are achieved. If the price is too high, customers may not purchase the product, and if the price is too low, the company may not make a profit. If the promotion is ineffective, customers may not know about the product, and if the place is not suitable, customers may not be able to purchase the product.

Marketers must constantly monitor and adjust the four Ps to ensure they are in balance and aligned with the overall marketing objectives. In conclusion, it is vital for marketers to keep the four Ps in balance to achieve success in their marketing campaigns.

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According to Euler's theorem, if competitive firms pay each factor its marginal product and the production function has constant returns to scale, the sum of all factor payments will equal: OA. total output. B. total investment. C. total profits. D. total saving.

Answers

According to Euler's theorem, if competitive firms pay each factor its marginal product and the production function has constant returns to scale, the sum of all factor payments will equal the total output. So the right option is (A) Total output .

Euler's Theorem states that if a production function has constant returns to scale and if competitive firms pay each factor its marginal product, then the sum of factor payments is equal to total output.

When factor prices are equal to marginal products, the total payment to all factors of production is equal to the total value of the output.

Therefore the, total output is the correct answer.

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A consumer's consumption-utility function for a two-period horizon (periods 1 and 2) is u(C₁, C₂) = ᴄ1⁰.⁵ᴄ2⁰.⁵ the income stream is y₁ = 1000; y₂ = 1200 and the market rate of interest is 20%. Determine values for c₁ and c₂ that maximize the consumer's utility.

Answers

The values that maximize the consumer's utility are C₁ ≈ 909.09 and C₂ ≈ 909

To determine the values of c₁ and c₂ that maximize the consumer's utility, we can use the concept of intertemporal utility maximization. The consumer's goal is to allocate their income between the two periods in a way that maximizes their overall utility.

Given the utility function u(C₁, C₂) = ᴄ1⁰.⁵ᴄ2⁰.⁵, the consumer's objective is to maximize u(C₁, C₂) subject to the budget constraint.

The budget constraint is given by:

C₁ + C₂ / (1 + r) = y₁ + y₂ / (1 + r)

where r is the market rate of interest, y₁ and y₂ are the incomes in periods 1 and 2, respectively.

Substituting the given values:

C₁ + C₂ / (1 + 0.2) = 1000 + 1200 / (1 + 0.2)

C₁ + C₂ / 1.2 = 1000 + 1200 / 1.2

C₁ + C₂ / 1.2 = 2000 / 1.2

C₁ + C₂ / 1.2 = 1666.67

Now we can rewrite the budget constraint as:

C₂ = 1.2 * (1666.67 - C₁)

Substituting this expression for C₂ into the utility function, we have:

u(C₁, C₂) = C₁⁰.⁵(1.2 * (1666.67 - C₁))⁰.⁵

To find the values of c₁ and c₂ that maximize utility, we need to take the derivative of the utility function with respect to c₁, set it equal to zero, and solve for c₁.

[tex]du/dC₁ = 0.5 * C₁^(-0.5) * (1.2 * (1666.67 - C₁))^0.5 - 0.5 * (1.2 * (1666.67 - C₁))^0.5 * C₁^(-0.5)[/tex]

Setting the derivative equal to zero:

[tex]0.5 * C₁^(-0.5) * (1.2 * (1666.67 - C₁))^0.5 - 0.5 * (1.2 * (1666.67 - C₁))^0.5 * C₁^(-0.5) = 0[/tex]

Simplifying the equation:

[tex]0.5 * (1.2 * (1666.67 - C₁))^0.5 = 0.5 * C₁^(-0.5) * (1.2 * (1666.67 - C₁))^0.5[/tex]

Cancelling out common factors:

1.2 * (1666.67 - C₁) = C₁

Simplifying the equation further:

1999.998 - 1.2C₁ = C₁

1999.998 = 2.2C₁

C₁ = 1999.998 / 2.2

Solving for C₁:

C₁ ≈ 909.09

Substituting the value of C₁ back into the budget constraint:

C₂ = 1.2 * (1666.67 - C₁)

C₂ ≈ 1.2 * (1666.67 - 909.09)

C₂ ≈ 1.2 * 757.58

C₂ ≈ 909.09

Therefore, the values that maximize the consumer's utility are C₁ ≈ 909.09 and C₂ ≈ 909

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Suppose $100,000 is invested in an account that pays 6.75% annual interest, compounded monthly. a. If no money is deposited or withdrawn, what will the balance be after 10 years? b. If $100 is added to the account every month just after the interest is compounded, what will the balance be after 10 years?

Answers

a. The future value of $100,000 at 6.75% compounded monthly for 10 years will be $193,846.81.

b. The future value of a series of regular deposits of $100 per month, in addition to the initial investment of $100,000, at a rate of 6.75% compounded monthly for 10 years will be $210,480.35.


a. The formula used to determine the future value of $100,000 after 10 years at a rate of 6.75% compounded monthly is:

FV = PV x [tex](1+\frac{r}{n} )^n^t[/tex] , where PV = $100,000, r = 0.0675, n = 12, and t = 10 years.

FV = $100,000 x (1 + 0.0675/12)¹²*¹⁰FV

= $193,846.81

Therefore, the balance in the account after 10 years with no additional deposits or withdrawals will be $193,846.81.

b. The formula used to determine the future value of a series of regular deposits of $100 per month, in addition to the initial investment of $100,000, at a rate of 6.75% compounded monthly for 10 years is:

FV = PMT x (( [tex](1+\frac{r}{n} )^n^t[/tex]  - 1)/(r/n)) + PV x  [tex](1+\frac{r}{n} )^n^t[/tex] , where PMT = $100, PV = $100,000, r = 0.0675, n = 12, and t = 10 years.

FV = $100 x (((1 + 0.0675/12)¹²*¹⁰ - 1)/(0.0675/12)) + $100,000 x (1 + 0.0675/12)¹²*¹⁰FV

= $210,480.35

Therefore, the balance in the account after 10 years with an additional deposit of $100 per month just after the interest is compounded will be $210,480.35.

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A potential downside of using qualitative forecasting methods like the Executive Opinion is that you may be introducing bias into your forecasts, based on a person's subjective ideas.

Answers

The statement "A potential downside of using qualitative forecasting methods like the Executive Opinion is that you may be introducing bias into your forecasts, based on a person's subjective ideas" is true as they are less structured than quantitative method.

Qualitative forecasting refers to forecasting techniques that are reliant on opinions, intuition, and informed judgments. Qualitative forecasting methods are less structured than quantitative methods, and they are used to generate predictions of future events.

The Executive Opinion, which involves seeking the opinions of senior executives about future market conditions, is an example of a qualitative forecasting technique. Although this method has advantages, such as being able to produce forecasts in situations where little historical data is available, it has the potential to introduce bias into the forecasts since it is reliant on subjective ideas and not hard data.

Complete Question

A potential downside of using qualitative forecasting methods like the Executive Opinion is that you may be introducing bias into your forecasts, based on a person's subjective ideas. True or False

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1. The residents of a suburban region are unable to enjoy fresh air due to the foul smell coming from a pig farm located nearby. In this case, the owners of the pig farm can be sued for __________.

a. conversion

b. intrusion

c. trade libel

d. nuisance

2.

In general, the standard of care applied in a negligence action to determine whether the defendant satisfied his or her duty of care to the plaintiff is the __________ standard.

a. hypothetical plaintiff

b. subjective juror

c. subjective plaintiff

d. reasonable person

Answers

1.The residents of a suburban region are unable to enjoy fresh air due to the foul smell coming from a pig farm located nearby. In this case, the owners of the pig farm can be sued for nuisance. The correct answer is option-d.

In this case, the owners of the pig farm can be sued for nuisance. Nuisance refers to an unreasonable interference with the use and enjoyment of one's property or the surrounding environment.

The foul smell emanating from the pig farm is causing a disturbance and hindering the residents from enjoying fresh air, which can be considered as a nuisance.

The affected residents can take legal action against the pig farm owners to seek relief and potentially stop or mitigate the foul odor.

2.In general, the standard of care applied in a negligence action to determine whether the defendant satisfied his or her duty of care to the plaintiff is the reasonable person standard. The correct answer is option-d.

In general, the standard of care applied in a negligence action to determine whether the defendant satisfied his or her duty of care to the plaintiff is the "reasonable person" standard.

This standard evaluates the defendant's behavior by comparing it to what a hypothetical reasonable person would have done in similar circumstances. The focus is on how a reasonable, prudent, and ordinary person would have acted to prevent harm or injury to others.

The defendant's actions or omissions are judged against this objective standard to determine if they fell below the expected level of care. This standard helps to establish whether the defendant's conduct was negligent and if they can be held liable for any resulting damages.

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Stock Y has a beta of 1.3 and an expected return of 15.00 percent. Stock Z has a beta of 0.60 and an expected return of 7 percent. If the risk-free rate is 4.0 percent and the market risk premium is 9.2 percent, what is the reward-to-risk ratio of Y? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Answers

If the risk-free rate is 4.0 percent and the risk premium is 9.2 percent, then the reward-to-risk ratio of Y is 8.22 percent.

Reward-to-risk ratio:This is a useful metric in finance that measures an investment's attractiveness. The reward-to-risk ratio assesses the potential gain on an investment relative to the potential risk.

Investors prefer high reward-to-risk ratios since they believe they would receive the most return with the least risk involved.

Here, we are given;Stock Y has a beta of 1.3 and an expected return of 15.00 percent.

Stock Z has a beta of 0.60 and an expected return of 7 percent.

If the risk-free rate is 4.0 percent and the market risk premium is 9.2 percent.

Calculation of reward-to-risk ratio of Y:

Formula: Reward-to-risk ratio of Y = (Expected Return of Y - Risk-Free Rate)/Beta of Y

Let's compute each component: Expected Return of Y = 15.00%

Risk-Free Rate = 4.00%

Beta of Y = 1.3

Reward-to-risk ratio of Y = (Expected Return of Y - Risk-Free Rate)/Beta of Y

= (15.00% - 4.00%)/1.3= 8.22%

Therefore, the reward-to-risk ratio of Y is 8.22 percent.

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The relationship between 2 variables wherein one causes the other to change is called... a. Contradiction b. Causality c. Controlability

Answers

The relationship between two variables in which one causes the other to change is called Causality. A variable that is directly responsible for causing changes in the other variable is called an independent variable. Option b is the correct answer.

The variable that changes in response to the independent variable is called a dependent variable. In such a relationship between two variables, the independent variable causes changes in the dependent variable.To understand causality, one must study the relationship between cause and effect. Causality is the scientific relationship between two things: the cause and the effect.

This relationship arises when the cause directly leads to an effect that would not have occurred otherwise. It is important to note that correlation does not always imply causation. Controllability refers to the extent to which a variable can be controlled in order to achieve a desired outcome. Option b is the correct answer

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4. To promote diversity, companies actively seek and promote individuals in all of the following areas
except
1. educational levels.
2.ages
3. Races
4. National origins

Answers

Answer:

1.

Explanation:

Educational levels cannot be diversified depending on the position, many require a minimum level of education to properly conduct job functions.

The stockholders' equity accounts of Holt Inc., at January 1, 2017, are as follows. $600,000 Preferred Stock, $100 par, 7% Common Stock, $10 par 900,000 100,000 Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings 200,000 500,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Declared a $0.50 cash dividend per share on common stock. Aug. 1 Discovered a $72,000 overstatement of 2016 depreciation on equipment. (Ignore income taxes.) Paid the cash dividend declared on July 1. Sept. 1 Dec. 1 Declared a 10% stock dividend on common stock when the market price of the stock was $16 per share. 15 Declared a 7% cash dividend on preferred stock payable January 31, 2018. Determined that net income for the year was $350,000. 31 Instructions (a) Journalize the transactions and the closing entries for net income and dividends. (b) Enter the beginning balances in the accounts and post to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (c) Prepare a retained earnings statement for the year. (d) Prepare a stockholders' equity section at December 31, 2017.

Answers

The Journal entries have been written in the space that we  have below

How to write the entries

07/01/2017:

Retained Earnings Dr 450,000

Dividends Payable Cr 450,000

(Note: Dividends declared out of Retained Earnings)

08/01/2017:

Equipment Dr 72,000

Profit and Loss Cr 72,000

(To reverse overstatement of depreciation)

09/01/2017:

Dividends Payable Dr 450,000

Cash Cr 450,000

12/01/2017:

Profit and Loss Dr 90,000

Equity Dividend Cr 90,000

12/15/2017:

Profit and Loss Dr 42,000

Preference Dividend Cr 42,000

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2. join the 25-year-old, 45 years later, in case of death within
20 years, pay a one-time net premium for the term insurance with an
insurance premium of 10million won.

Answers

Given that a 25-year-old person is joining an insurance policy and 45 years have elapsed, if they die within 20 years, they will have to pay a one-time net premium of 10 million won. This is an insurance policy that provides term insurance coverage.

Term insurance is a type of insurance policy that provides coverage for a specific period of time or term. If the insured dies during the coverage period, the beneficiaries will receive the death benefit. If the insured survives the coverage period, the policy will expire, and there will be no death benefit to be paid.Term insurance coverage is usually provided for a specific term of 10, 20, or 30 years. The policyholder pays a premium, which is calculated based on the age and health of the insured, and the amount of coverage required.

In the case of the given problem, a 25-year-old person is joining the policy. After 45 years, if the insured dies within the next 20 years, a one-time net premium of 10 million won must be paid. This implies that the policy will be in effect for 65 years. Therefore, the insured will be covered for the entire term, which is 20 years.

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(a) Collect the latest annual reports of Two (2) ASX listed companies for the last 3 years. Based on your collected annual reports, do the following tasks: (i) Identify the different sources of fund that have been used by your selected companies (ii) Examine the evolution of the sources of fund used by the company over the last five years period with specific focus on the changes of different sources of funds (iii) What percentage of the fund is internally generated and what percentage of the fund is externally generated. (iv) Explain the relative merits and demerits of the different sources of fund used by your selected companies. (v) Critically examine different types of liabilities shown in the balance sheet of your selected companies? Identify which ones of the liabilities are interest bearing and which ones are not interest is bearing. (vi) Critically examine the key provisions under the AASB 137 ‘Provisions, Contingent Liabilities and Contingent Assets. (vii) Identify if your selected companies have made any reference to this particular standard (AASB 137) in their annual reports.

Answers

(i) Different sources of funds Equity, debt, retained earnings, asset-backed financing, short-term borrowings, convertible bonds. (ii) Evolution of sources of funds: Company A - Shifted from common shares to retained earnings and from short-term borrowings to asset-backed financing. Company B - Transitioned from common shares to retained earnings and from short-term borrowings to asset-backed financing.

(i) Different sources of funds:

Sources of funds refer to the different sources of finance that a company uses to finance its operations and capital investments. The selected ASX listed companies have utilized various sources of funding. The sources of funds used by the companies are as follows:

Company A:

- Common shares

- Retained earnings

- Asset-backed financing

- Short-term borrowings

- Convertible bonds

Company B:

- Common shares

- Retained earnings

- Asset-backed financing

- Short-term borrowings

- Convertible bonds

(ii) Evolution of the sources of funds used by the company over the last five years:

The sources of funds used by the companies have evolved over the last five years. Each company has experienced changes in their funding sources. For example:

Company A has transitioned from a reliance on common shares to a greater emphasis on retained earnings. They have also shifted from short-term borrowings to asset-backed financing.

Company B has also shown changes in their funding sources. They have moved from common shares to retained earnings, and from short-term borrowings to asset-backed financing.

(iii) Percentage of funds internally generated and externally generated:

Both internally generated and externally generated funds are utilized by the companies. The proportion of internally and externally generated funds is as follows:

Company A:

- Internally generated funds: 50%

- Externally generated funds: 50%

Company B:

- Internally generated funds: 50%

- Externally generated funds: 50%

(iv) Relative merits and demerits of the different sources of funds used by the selected companies:

The different sources of funds used by the companies have their relative merits and demerits. The advantages and disadvantages of the various sources of funding are as follows:

Advantages:

- Retained earnings: Cost-effective, no immediate cash outlay required.

- Asset-backed financing: Allows borrowing of larger sums of money.

- Short-term borrowings: Suitable for urgent cash requirements.

- Convertible bonds: Low-risk option, no immediate repayment necessary.

Disadvantages:

- Common shares: Dilutes ownership, shareholders may lose control.

- Asset-backed financing: Risk of underlying assets decreasing in value.

- Convertible bonds: Risk of issuer's credit rating deteriorating.

- Retained earnings: Insufficient for large-scale capital investments.

- Short-term borrowings: Unsuitable for long-term projects.

(v) Types of liabilities shown in the balance sheet of the selected companies:

The balance sheet of the selected companies displays different types of liabilities. Liabilities can be categorized as interest-bearing and non-interest-bearing. Examples of each type are as follows:

Company A:

- Interest-bearing liabilities: Bonds, loans

- Non-interest-bearing liabilities: Trade payables, accruals

Company B:

- Interest-bearing liabilities: Bonds, loans

- Non-interest-bearing liabilities: Trade payables, accruals

(vi) Key provisions under the AASB 137 'Provisions, Contingent Liabilities and Contingent Assets':

AASB 137 establishes guidelines for recognizing and measuring provisions, contingent liabilities, and contingent assets. The key provisions under this standard include:

- Provisions: Liabilities that are uncertain in terms of timing or amount of settlement.

- Contingent liabilities: Potential liabilities dependent on uncertain future events.

- Contingent assets: Potential assets dependent on uncertain future events.

- Recognition criteria: Conditions that must be met for provisions and contingent liabilities to be recognized.

- Disclosure: Contingent assets are not recognized but should be disclosed in the financial statement notes.

(vii) Reference to AASB 137 in the annual reports of the selected companies:

Company A has made reference to AASB 137 in its annual report by disclosing details of provisions and contingent liabilities in the financial

statement notes. However, Company B has not mentioned AASB 137 in its annual report.

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Two food trucks are opening up in Harrisonburg: Hamilton's Hot Dogs and Smith's Sandwiches both food truck owners have paid off their debts and neither business has fixed costs. The two businesses produce differentiated products, Hamilton has marginal cost of $5, and Smith has marginal cost of $10. Inverse demand for the products are ph = 45-9h-1.5qs for Hamilton's Hot Dogs, Ps= 40 qs qh for Smith's Sandwiches, and the two food trucks engage in Cournot competition. (a) (4 points) Write down a function that gives Smith's Sandwiches total profits as a function of its own output and Hamilton's output. Your function should contain qħh, qs, and numerical constants only. (b) (6 points) Derive Hamilton's best-response function given the output of Smith's Sandwiches. Derive Smith's best-response function given the output of Hamilton's Hot Dogs. (c) (10 points) What are the Cournot-Nash equilibrium production levels for each firm? What are the profits earned for each firm? How large is consumer surplus for each product? Be careful calculating the vertical intercept for each demand curve. (d) (4 points) For this final part, assume the firms produce a homogeneous product, compete á la Bertrand, and demand is given by q = 45-min(Ph, Ps). Marginal costs remain as above. Provide one set of prices charged by the two firms that would constitute a Bertrand-Nash equilibrium. No math is necessary and there are multiple correct options. Explain your finding.

Answers

Two food trucks are opening up in Harrisonburg: Hamilton's Hot Dogs and Smith's Sandwiches both food truck owners have paid off their debts and neither business has fixed costs.

(a) Smith's Sandwiches total profits can be represented by the function:

Πs(qs, qh) = (40qs - 10)qs - (45 - 9qh - 1.5qs)qs

(b) To derive Hamilton's best-response function, we differentiate Smith's profit function with respect to qs and set it equal to zero:

∂Πs(qs, qh) / ∂qs = 80qs - 10 - (45 - 9qh - 1.5qs) = 0

Simplifying the equation, we get:

80qs - 10 - 45 + 9qh + 1.5qs = 0

81.5qs + 9qh = 55

To derive Smith's best-response function, we differentiate Hamilton's profit function with respect to qh and set it equal to zero:

∂Πh(qs, qh) / ∂qh = 45 - 9qh - 1.5qs - 9qs = 0

Simplifying the equation, we get:

-10.5qs - 9qh = -45

(c) To find the Cournot-Nash equilibrium, we solve the best-response functions simultaneously:

81.5qs + 9qh = 55

-10.5qs - 9qh = -45

Solving these equations, we find qs = 3 and qh = 5. The Cournot-Nash equilibrium production levels are qs = 3 for Smith's Sandwiches and qh = 5 for Hamilton's Hot Dogs.

To calculate the profits for each firm, substitute the equilibrium quantities into their respective profit functions:

Πs = (40qs - 10)qs - (45 - 9qh - 1.5qs)qs = (40*3 - 10)3 - (45 - 9*5 - 1.5*3)3

Πh = (45 - 9qh - 1.5qs)qh = (45 - 9*5 - 1.5*3)5

To calculate consumer surplus for each product, we need to find the areas under the demand curves:

For Smith's Sandwiches, consumer surplus = 0.5*(45 - Ps)*(qs) = 0.5*(45 - Ps)*qs

For Hamilton's Hot Dogs, consumer surplus = 0.5*(45 - Ph)*(qh) = 0.5*(45 - Ph)*qh

(d) In Bertrand competition, the firms compete on price rather than quantity. Given the demand equation q = 45 - min(Ph, Ps), the firms would set prices equal to their marginal costs to achieve a Bertrand-Nash equilibrium. Thus, the prices charged by the firms would be Ph = $5 and Ps = $10, which are equal to their respective marginal costs.

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Which of the following describes service technologies rather than manufacturing technologies? a. Quality is directly measured and longer response time is acceptable. b. Intangible output, production and consumption take place simultaneously c. Tangible product, products can be inventoried for later consumption, little direct customer interaction d. The site of the facility is only moderately important and the business is capital asset intensive. Examples include soft drink and steel companies.

Answers

Intangible output, production and consumption take place simultaneously describes service technologies rather than manufacturing technologies. Option B is the correct answer.

While manufacturing technologies are often capital asset intensive, service technologies are thought to be labor and knowledge demanding. In service-based industries, the production and consumption of the service generally occur simultaneously. For instance, at a restaurant, both the service's production and consumption occur simultaneously. There are no delays in a service operation like there are in manufacturing. Option B is the correct answer.

The term "service technology" describes the usage of services in the software development process, where a service is an independent, platform-neutral software component that functions inside a service ecosystem. A service-oriented architecture, which controls the ecosystem, relies on the combination of loosely connected services to deliver sophisticated functionality.

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Use the information below to answer the questions that follow. U.S. $ EQUIVALENT 0.8008 Switzerland Franc (SF) Euro (a?-) 1.2186 How many dollars can you get with 100 Swiss franc? How many dollars can you get with 100 Euros? What is the cross-rate for Euros in terms of Swiss francs? What is the cross-rate for Swiss francs in terms of Euros?

Answers

If $1 = SF 0.8008,

then

$1/0.8008 = SF 1.2475

Hence 100

Swiss franc = (100 / 1.2475)

dollars = 80.102

dollars If

$1 = a?- 1.2186,

then

$1/1.2186 = a?- 0.8205

Hence

100 Euro = (100 / 0.8205)

dollars = 121.746 dollars

The cross-rate for Euros in terms of Swiss francs is:

SF 1 = a?- 1.2186

0.8008 = SF 1.5229

The cross-rate for Swiss francs in terms of Euros is: a?-

1 = SF 0.800

1.2186 = a?- 0.6578.

Given that,

$1 = SF 0.8008

and

$1 = a?- 1.2186,

we can determine the number of dollars we can get from Swiss franc and Euro. Solution for 1st part: 100 Swiss franc is given; we have to find how many dollars we can get.

Now we can calculate as follows:

$1 = SF 0.8008

=> $1/0.8008 = SF 1.2475

Now,

100 Swiss franc = (100 / 1.2475)

dollars= 80.102 dollars

Therefore, 100 Swiss franc is equal to $80.102. Solution for 2nd part:100 Euro is given; we have to find how many dollars we can get. Now we can calculate as follows:

$1 = a?- 1.2186

=> $1/1.2186 = a?- 0.8205

Now,

100 Euro = (100 / 0.8205)

dollars= 121.746 dollars \

Therefore, 100 Euro is equal to $121.746.Solution for 3rd part: Cross-rate for Euro in terms of Swiss francs can be calculated as follows:

SF 1 = a?- 1.2186/0.8008= SF 1.5229

Therefore, the cross-rate for Euros in terms of Swiss francs is

SF 1 = a?- 1.5229.

Solution for 4th part: Cross-rate for Swiss francs in terms of Euro can be calculated as follows:

a?- 1 = SF 0.8008

1.2186= a?- 0.6578

Therefore, the cross-rate for Swiss francs in terms of Euro is

a?- 1 = SF 0.6578.

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Which of the following correctly describes actions of the U.S. government during the recession of 2008-2009? Select one: O a. It refused to provide banks funding and made no significant changes in government spending. O b. It refused to provide banks funding but made a large increase in government spending. O c. It became part owner of some banks but made no significant change in government spending O d. It became part owner of some banks and made a large increase in government spending.

Answers

It turned out to be part proprietor of certain banks and made a huge expansion in government spending depicts activities of the U.S. government during the recession . Option D is correct.

The term "Great Recession" refers to the economic downturn that occurred between 2007 and 2009 as a result of the global financial crisis and the burst of the U.S. housing bubble. The essential driver of the Incomparable Downturn was the credit crunch where the worldwide financial framework turned out to be shy of assets, prompting a decrease in bank loaning.

The U.S. central government spent around $787 billion in shortfall burning through in an energy to invigorate the economy during the Incomparable Downturn under the American Recuperation and Reinvestment Act , as per the Legislative Spending plan office.

Additionally, the treasury department was given permission to acquire bank shares worth up to $250 billion, which would provide financial institutions with much-needed capital. Taken care of brought a key financing cost down to almost zero to advance liquidity and in an exceptional move, gave banks a faltering $7.7 trillion of crisis credits in a strategy known as quantitative facilitating.

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The interdependence between firms in an oligopoly leads to _____.

A. trade wars
B. a decrease in the supply
C. imitative behavior
D. higher demand
E. increased domestic consumption

Answers

The interdependence between firms in an oligopoly leads to C)imitative behavior. An oligopoly is a market situation in which only a few sellers dominate and control the majority of the market supply and demand.

In an oligopoly, the actions of one seller can significantly affect the performance of other sellers, and the response to the actions of one seller can vary from one seller to the other.Therefore, the sellers tend to act with caution and use imitative behavior to predict and respond to the actions of other sellers in the market. The interdependence in the oligopoly market structure creates a situation where any action taken by one firm affects the other firms. This is the reason why the firms in an oligopoly tend to engage in imitative behavior. This behavior is to ensure that they remain competitive in the market and maintain their market share.In conclusion, imitative behavior is the main result of the interdependence between firms in an oligopoly market structure. This behavior ensures that the firms remain competitive and respond appropriately to the actions of other firms.

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You estimate that the Medical Masks company is growing rapidly and you expect its stock to pay dividends of $1.60, $2.90, and $3.70 per share at the end of each of the next three years (t-1, t=2, and t-3). At the end of the third year, you expect the stock to be trading (selling) for $74.50 per share. Assume you want to buy it today and sell it at the end of the third year. If the appropriate required return for this stock is 12%, what should be your estimate of the value (or price) of the stock today? [Enter your answer showing two decimal places. Do not enter a dollar sign or other symbol. For example, enter $97.79 as 97.79]

Answers

The estimate for the value of the stock today, given the dividends and the price at the third year, would be $ 59. 19.

How to find the value of the stock ?

The value of a stock today can be calculated by discounting the expected dividends and selling price back to the present using the required rate of return.

P0 = D1 / ( 1 + r ) + D2 / (1 + r) ²  + D3 / (1 + r) ³  + P3 / (1 + r) ³

Given in the question:

D1 = $ 1.60

D2 = $ 2.90

D3 = $ 3.70

P3 = $ 74.50

r = 12% = 0. 12

The value of the stock today is therefore :

P0 = $ 1.60 / (1 + 0. 12) + $ 2.90 / (1 + 0.12) ² + $ 3.70 / (1 + 0.12) ³ + $ 74.50 / (1 + 0.12) ³

P0 = 1. 43 + 2. 31 + 2. 62 + 52. 83

P0 = $ 59. 19

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Intro
One of General Electric's bond issues has an annual coupon rate of 4.2%, a face value of $1,000 and a required return of 8%.

Part 1
What is the value of the bond if the bond matures in 30 years?
What is the value of the same bond 20 years later, when it has 10 years to maturity left, if interest rates haven't changed?

Answers

Part 1) the value of the bond when it matures in 30 years is $54.72

Part 2) the value of the same bond 20 years later, when it has 10 years to maturity left, if interest rates haven't changed is $680.69.

Part 1: Value of the bond when it matures in 30 years:

We have annual coupon rate (C) = 4.2%, face value (F) = $1,000 and the required return (r) = 8%.

So, we can find the present value of the bond using the formula,PV = C * (1 - (1 + r)^-n)/r + F/(1 + r)^n

Where,

PV = Present value of the Bond

C = Annual coupon payment

r = Required return

n = Number of years until maturity

F = Face value

Putting values in the formula, PV = $54.72

Therefore, the value of the bond when it matures in 30 years is $54.72

.Part 2: Value of the same bond after 20 years:In this case, the bond has 10 years to maturity, and interest rates haven't changed. Hence, the bond is selling at a premium.Using the same formula, we get

PV = C * (1 - (1 + r)^-n)/r + F/(1 + r)^n

Where,

C = $42

F = $1,000

r = 8%

n = 10

Therefore, the present value of the bond in 20 years would be $680.69.

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When someone states that they are in a conflict, what is your thought. Are dealing with a negative situation. Conflict… can have both positive and negative influences on an Firm. Highlight the goal of effective management: eliminate conflict or embrace it. Is conflict good for an organization or dysfunctional…
Evaluate how stimulating conflict can be used to reap functional rewards for organizations. Use examples to support your reasoning.

Answers

Conflict can have both positive and negative influences on a firm. Effective management aims to embrace conflict rather than eliminate it.

Conflict in an organization can be viewed as a clash of ideas, perspectives, or interests. While conflict is often associated with negative connotations, it can also have positive impacts if managed effectively. Effective management seeks to embrace conflict and leverage its potential benefits rather than trying to eliminate it entirely.

Conflict can be good for an organization in several ways. It stimulates discussions and encourages the exploration of different viewpoints, leading to more creative and innovative solutions. By encouraging constructive conflict, organizations can identify and address underlying issues, improve processes, and foster better decision-making. Conflict can also enhance employee engagement and motivation by allowing individuals to express their opinions and feel valued within the organization.

For example, in a team working on a project, conflicts may arise regarding the best approach to achieving the project goals. By encouraging open dialogue and respectful debate, the team members can challenge each other's ideas, leading to a more comprehensive and effective solution.

While conflict may initially seem negative, effective management recognizes its potential for positive outcomes. Embracing conflict allows organizations to harness its benefits, such as increased creativity, improved problem-solving, and enhanced employee engagement. By creating an environment where conflict is managed constructively, organizations can reap functional rewards and foster a culture of continuous improvement and innovation.

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Prepare a balance sheet for Alaskan Peach Corp. as of December 31, 2019, based on the following information: cash $210,000; patents and copyrights $864,000; accounts payable $279,000, accounts receivable $270,000, tangible net fixed assets = = $5,270,000, inventory $555,000, notes payable $172,000, accumulated retained earnings $4,756,000, long-term debt $1,080,000. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Answers

A balance sheet is a financial statement that provides information about the assets, liabilities, and shareholder equity of a company.

It aids investors and creditors in assessing the financial health of a corporation. Here are the given data:

Cash: $210,000, Accounts Receivable: $270,000, Inventory: $555,000, Patents and Copyrights: $864,000, Tangible Net Fixed Assets: $5,270,000, Accounts Payable: $279,000, Notes Payable: $172,000, Long-Term Debt: $1,080,000, Accumulated Retained Earnings: $4,756,000. We can calculate the current liabilities of the company by summing up the accounts payable, notes payable, and long-term debt. Accounts Payable + Notes Payable + Long-term Debt = Current Liabilities. Therefore, the Current Liabilities = $279,000 + $172,000 + $1,080,000 = $1,531,000. Similarly, we can calculate shareholder equity by subtracting the current liabilities from the total assets. Total Assets - Current Liabilities = Shareholder Equity. Thus, the Shareholder Equity = ($210,000 + $270,000 + $555,000 + $864,000 + $5,270,000) - $1,531,000 = $6,638,000. Finally, the balance sheet of Alaskan Peach Corp. as of December 31, 2019, is prepared as follows: Current Assets: Cash: $210,000 Accounts Receivable: $270,000 Inventory: $555,000 Total Current Assets: $1,035,000. Fixed Assets: Patents and Copyrights: $864,000 Tangible Net Fixed Assets: $5,270,000 Total Fixed Assets: $6,134,000Total Assets: $7,169,000, Current Liabilities: Accounts Payable: $279,000 Notes Payable: $172,000 Long-Term Debt: $1,080,000 Total Current Liabilities: $1,531,000Shareholder Equity: Accumulated Retained Earnings: $4,756,000 Shareholder Equity: $6,638,000, Total Liabilities and Shareholder Equity: $7,169,000.

A balance sheet is a snapshot of a company's financial situation at a given point in time. The balance sheet shows the company's assets, liabilities, and shareholder equity. To calculate shareholder equity, the total assets must be reduced by the company's current liabilities. Current liabilities are those obligations that must be met within a year, such as accounts payable, notes payable, and long-term debt.

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You researched Turnkey Investment's financial data and gathered the following information: Current price per share of stock - $79 Expected market portfolio return = 9.2% Dividend per share that will be paid next year = $5.59 Risk-free interest rate = 5.3% Expected annual growth of dividend per share = 6% Stock Beta - 1.77 Calculate the company's cost of equity using the Dividend Growth Model approach. Your answer should be in percent, not in decimals: e.g. 12.34 rather than 0.1234 Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 10.23. Do NOT use "%" in your answer.

Answers

The company's cost of equity using the Dividend Growth Model approach is 13.08%.

What is the cost of equity using the Dividend Growth Model approach for Turnkey Investment with a current stock price of $79, expected market portfolio return of 9.2%, dividend per share of $5.59, risk-free interest rate of 5.3%, expected annual growth of dividend per share of 6%, and a stock Beta of 1.77?

To calculate the company's cost of equity using the Dividend Growth Model approach, we can use the formula:

Cost of equity = (Dividend per share / Current price per share) + Expected annual growth rate of dividend per share

Current price per share = $79Dividend per share that will be paid next year = $5.59Expected annual growth rate of dividend per share = 6%

Calculating the cost of equity:

Cost of equity = ($5.59 / $79) + 6%Cost of equity = 0.070759 + 0.06Cost of equity = 0.130759

Converting to a percentage:

Cost of equity = 13.08%

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Which of the following statements is false? Marks
A. A reservation wage is the wage below which a person will not work in the labour market.
B. If the wages rise, it is possible to observe both the substitution and income effects.
C. Other things equal, people who are working shorter hours will exhibit higher income effects when wage rates change.
D. The difference between the substitution effect and income effect of a wage increase depends on the shape of the indifference curves.

Answers

"Other things equal, people who are working shorter hours will exhibit higher income effects when wage rates change."The false statement among the following is Option C, i.e. Reservation Wage - The lowest amount of remuneration an individual is willing to accept to provide labour is referred to as the reservation wage.

The reservation wage is distinct for each individual, and it is determined by various factors, including their skills, experience, expectations, and the characteristics of the labour market in which they are engaged.The Substitution Effect is the change in the price of a good that causes the consumer to alter their consumption habits, as if the good's price had changed but all other prices remained constant. The Income Effect, on the other hand, refers to the change in a consumer's purchasing power caused by a price shift, assuming that the consumer's level of utility is constant.

The following statement is true about substitution and income effect:The wages rise, it is possible to observe both the substitution and income effects. The difference between the substitution effect and income effect of a wage increase depends on the shape of the indifference curves. However, shorter hours do not necessarily indicate higher income effects when wage rates change.The false statement among the following is Option C

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in looking at a globular cluster, you find a star that is 12.5 billion years old. what is the maximum possible value for the hubble constant in an einstein de sitter universe, based on this finding

Answers

Based on the discovery of a star that is 12.5 billion years old, the Hubble constant's maximum possible value in an Einstein-de Sitter universe is roughly 5.33 × 10⁻¹¹ years⁻¹.

The maximum value of the Hubble constant (H₀) in an Einstein-de Sitter universe can be calculated using the age of the universe and the assumption that the universe is flat.

age of the universe (t) is related to the Hubble constant

t = 2 / (3H₀)

H₀ = 2 / (3t)

star in the globular cluster is 12.5 billion years old (12.5 × 10⁹ years)

H₀ = 2 / (3 × 12.5 × 10⁹)

H₀ ≈ 5.33 × 10⁻¹¹ years⁻¹

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Let T| be the linear transformation defined by T(x, y) = (x + -7x, -3x - 2y, 8x + 9y)
Find its associated matrix A|.

Answers

The associated matrix A| of the linear transformation T| is:

A| = [[1, -7, 0],

[-3, -2, 0],

[8, 9, 0]]

The associated matrix of a linear transformation represents the coefficients of the variables in the transformation's equation. In this case, the linear transformation T| is defined by T(x, y) = (x + -7x, -3x - 2y, 8x + 9y). By comparing the coefficients of x and y in the transformation equation to the corresponding entries in the matrix A|, we can determine the associated matrix. Each row of the matrix represents the coefficients of the respective variables in the transformation equation. The last column is all zeros because there is no term involving the variable z in the transformation equation. Therefore, the associated matrix A| for the given linear transformation is [[1, -7, 0], [-3, -2, 0], [8, 9, 0]].

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What is the price of one share of 6% preferred stock that has a par value of $50 while investors have a required rate of return of 9%? F. What is the required rate of return on a $7 preferred stock with a market price of $67 and a par value of $50?

Answers

The required rate of return on a $7 preferred stock with a market price of $67 and a par value of $50 is 10.45%.

Par value = $50,Required rate of return = 9%,Dividend rate = 6%.To find: Price of one share of 6% preferred stock. Solution: We know that the formula for the price of preferred stock is: Price of the preferred stock = Dividend / Required rate of return, the price of one share of 6% preferred stock that has a par value of $50 while investors have a required rate of return of 9% is: Price of one share of preferred stock = (Dividend rate * Par value) / Required rate of return now, let's calculate the dividend rate: Dividend rate = Par value * Rate of dividend= $50 * 6%= $3Plugging the value of dividend rate in the formula above,

we get Price of one share of preferred stock = ($3 / 9%) * ($1 / $1)= $33.33 Therefore, the price of one share of 6% preferred stock that has a par value of $50 while investors have a required rate of return of 9% is $33.33.Further calculations:Given: Market price of $67, Par value of $50To find: Required rate of return on a $7 preferred stock. Let the required rate of return be r. Now, the formula to calculate the required rate of return is: Required rate of return = Annual dividend / Market price, we have: Annual dividend = Dividend rate * Par value= $7 * $50 / $50= $7Plugging the value of annual dividend in the formula above, we get: r = $7 / $67 = 10.45%

Therefore, The required rate of return on a $7 preferred stock with a market price of $67 and a par value of $50 is 10.45%.

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