Options (a), (b), (c), and (d) are the correct answers. Some economists, notably of the Chicago-UCLA school, argue that the non-credibility of predatory pricing to prevent entry casts further doubt on the real-world existence/practice of predatory pricing.
Predatory pricing is a method used by companies to discourage new competitors from entering the market by reducing the price of their products below the cost of production. In regard to predatory pricing to prevent entry of new firms, the correct options are:
a. Ceteris paribus, an incumbent firm would like to be able to commit to carrying out predatory pricing against a firm that enters the market in order to convince the entrant its threat is credible.
b. Any Nash equilibrium in which an entrant stays out due to an incumbent firm's non-credible threat of predatory pricing if the entrant should enter is not subgame perfect.
c. Generally, it would not be in an incumbent firm's best interest to actually carry out the threat of predatory pricing should the entrant actually enter.
d. In models of predatory pricing to prevent entry of new firms, there is typically no Nash equilibrium.Some economists, notably of the Chicago-UCLA school, argue that the non-credibility of predatory pricing to prevent entry casts further doubt on the real-world existence/practice of predatory pricing.
Therefore, options (a), (b), (c), and (d) are the correct answers.
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Southland Industries has $65,000 of 7% (annual interest) bonds outstanding, 1,500 shares of preferred stock paying an annual dividend of $5.00 per share, and 3,500 shares of common stock outstanding.
Southland Industries has $65,000 of 7% bonds outstanding, 1,500 shares of preferred stock paying an annual dividend of $5.00 per share, and 3,500 shares of common stock outstanding.
Bonds are essentially loans that are issued to companies by investors. The company pays interest on the bonds on a regular basis, just as they would pay interest on a loan. Southland Industries has $65,000 of bonds outstanding that pay 7% annual interest to bondholders. This means that each year, the company owes bondholders $4,550 ($65,000 x 0.07) in interest payments.
Preferred stock is a type of stock that pays dividends to shareholders before common stock does. Southland Industries has 1,500 shares of preferred stock that pay an annual dividend of $5.00 per share. This means that each year, the company owes preferred stockholders $7,500 ($5.00 x 1,500) in dividend payments.
Common stock is the type of stock that most people think of when they think of the stock market. Common stockholders own a portion of the company and have the potential to receive dividends and capital gains (or losses) from their investment. Southland Industries has 3,500 shares of common stock outstanding, but we are not given any information about dividends or any other payments associated with this type of stock.
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A supply curve that is parallel to the vertical axis suggests that the relevant time period is: A) the immediate run. B) the short run C) the long run, and this is an increasing-cost industry. D) the long run, and this is a constant-cost industry.
A supply curve that is parallel to the vertical axis indicates that the relevant period is the long run, and it belongs to the constant cost industry. An increasing cost industry is where the production cost rises as the industry expands. In contrast, the constant cost industry is where production costs do not vary with the level of output.
The supply curve shows the different quantities of a good that manufacturers are willing to produce at each price point. It can be used to figure out the supply and demand of products, as well as predict future price changes.A supply curve that is parallel to the vertical axis suggests that the relevant time period is the long run, and it is a constant-cost industry. When a producer wishes to increase output in the long run, they will have to buy more equipment, employ more workers, and so on.As a result, the producer's costs of production will rise, and the firm's supply curve will move up and to the left. If a producer wants to reduce production in the long run, they may sell equipment, lay off employees, and so on. As a result, the producer's production costs will decrease, and the supply curve will move down and to the right.In conclusion, the supply curve is an essential tool in economics. It allows us to predict how producers will respond to price changes in the market and the supply and demand of products. If the supply curve is parallel to the vertical axis, it suggests that the relevant time period is the long run, and it is a constant-cost industry.For such more question on vertical axis
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the per share amount normally assigned by the board of directors to a small stock dividend (e.g. 5% of shares outstanding) is select one: a. the market value of the stock on the date of declaration. b. the average price paid by stockholders on outstanding shares. c. the par or stated value of the stock. d. zero.
The per share amount normally assigned by the board of directors to a small stock dividend (e.g. 5% of shares outstanding) is usually the par or stated value of the stock. Option c is correct.
The par value of the stock is the minimum amount at which a share of stock can be sold. It is a nominal value assigned to a stock by a company's board of directors.
A stock dividend is when a company issues additional shares of its own stock as a dividend payment to its existing shareholders.
Therefore, c. the par or stated value of the stock is correct.
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Calculate the coupon rate and the current yield on a one year bond that has a face value of $1000 and an annual interest payment of $60. The instrument can be purchased for $1079
The coupon rate is 6%, and the current yield is approximately 5.56%. is the answer.
To calculate the coupon rate, we divide the yearly interest payment by the face value of the bond and after that multiply by 100 to precise it as a percentage.
Formula of Coupon Rate = (Annual Interest Payment / Face Value) * 100
Coupon Rate = (60 / 1000) * 100
Coupon Rate = 6%
The current yield is calculated by dividing the yearly interest payment by the current market price of the bond and after that multiplying by 100.
Formula of Current Yield = (Annual Interest Payment / Current Market Price) * 100
Current Yield = (60 / 1079) * 100
Current Yield ≈ 5.56%
Therefore, the coupon rate is 6%, and the current yield is approximately 5.56%.
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How can PMOs help raise maturity level of project management?
A Project Management Office (PMO) can help raise the maturity level of project management in the following ways: 1. Offering support and guidance to project teams. 2. Providing project management coaching. 3. Offering standard project management templates. 4. Conducting project management maturity assessments. 5. Providing access to project management training and development opportunities.
A Project Management Office (PMO) is an organizational unit that helps to standardize project management practices, offer project management mentoring, and provide project management resources for individual projects. A Project Management Office (PMO) can help raise the maturity level of project management in the following ways:
1. Offering support and guidance to project teams in executing project management best practices.
2. Providing project management coaching and mentoring to project managers.
3. Offering standard project management templates, processes, procedures, and guidelines to ensure consistency across projects.
4. Conducting project management maturity assessments to identify areas where improvements can be made and implementing appropriate recommendations.
5. Providing access to project management training and development opportunities to project managers and their teams.
Project management maturity is defined as the degree to which an organization's project management processes, practices, and culture are standardized, consistent, and integrated into its business operations.
A PMO can assist in the creation of a culture that values and supports project management excellence by promoting best practices, standardizing project management procedures, and delivering training and development to staff.
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Which of the following can be the consequence of a regional trade agreement? 1. More complicated custom duty 2. Increase in competition 3. Larger choices for consumers O 1.1 and 2 only 2.2 and 3 only O 3.1 and 3 only O 4.1,2, and 3
A regional trade agreement can have the following consequences: Promotion of trade, Disintegration of global trade, Possible impacts on consumers, Economic effects, Possible influences on governance and etc.
1. Promotion of trade: A regional trade agreement can have a positive effect on trade.
2. Disintegration of global trade: Regional trade agreements can lead to the fragmentation of the global trade system.
3. Possible impacts on consumers: Consumers are influenced by regional trade agreements.
4. Economic effects: Regional trade agreements have both direct and indirect economic consequences.
5. Possible influences on governance: Regional trade agreements can have an effect on governance.
6. Regional value chain development: Regional trade agreements can promote regional value chain development, increasing productivity and efficiency.
7. Geopolitical implications: Regional trade agreements can have geopolitical implications.
8. Effects on international security: Regional trade agreements can have an effect on international security.
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Which of the following statements about the end of an asset's life is correct?
Multiple Choice
a. At the end of an asset's life, the book value would equal zero if there is no residual value.
b. Assets are depreciated below residual value only when the double-declining balance method is used.
c. At the end of an asset's life, the Accumulated Depreciation should equal the residual value.
d. At the end of an asset's life, Its book value should equal its depreciable cost.
When the double-declining balance approach is applied, assets are only depreciated below residual value. The life of the asset is option B.
The estimated value of a fixed asset at the conclusion of its useful life or lease term is known as the residual value, sometimes known as salvage value.An asset's book value is determined by subtracting its initial cost from its accumulated depreciation, which is calculated by multiplying the asset's age in years by its average yearly depreciation.
Key Learnings. The overall cost of owning an asset over the course of its whole life, from acquisition to disposal, is known as the whole-life cost. Purchase and installation expenses, design and construction costs, operating costs, maintenance costs, related finance costs, depreciation costs, and disposal costs are all included in the whole-life cost.
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A limited liability company (llc) offers the limited ______ of principal owners of a corporation, and the pass-through ______ of a partnership.
A limited liability company (LLC) offers the limited liability of principal owners of a corporation, and the pass-through taxation of a partnership. An LLC is a hybrid type of legal structure that offers the liability protection of a corporation combined with the simplicity and tax flexibility of a sole proprietorship or partnership.
Limited liability of principal owners of a corporation The primary advantage of the LLC is that it offers the limited liability of a corporation for its owners, or "members." This means that the personal assets of the members are protected from business liability.
In other words, the company's debts or legal issues don't affect the personal finances of the members.Pass-through taxation of a partnershipThe other main advantage of the LLC is its pass-through taxation feature. This means that the profits and losses of the company are passed through to its members and reported on their individual income tax returns. This eliminates the "double taxation" issue that arises with corporations.
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After watching the video A Case for Strengths and reading pages 1-18 of Strength-Based Leadership, answer the the following questions: Why is it important that leaders invest in their strengths and the strengths of others around them? What are the three key findings about strengths that emerged from the Gallup research? Why is this important?
It is important for leaders to invest in their strengths and the strengths of others around them for several reasons. Firstly, focusing on strengths allows leaders to tap into their innate talents and abilities, enabling them to perform at their best.
When leaders operate from a position of strength, they experience higher levels of engagement, fulfillment, and productivity. Secondly, investing in the strengths of others fosters a positive and empowering work environment.
By recognizing and utilizing the strengths of team members, leaders can create opportunities for individuals to excel and contribute meaningfully to the organization. This not only enhances overall team performance but also promotes a culture of collaboration and mutual support.
Lastly, developing strengths can lead to greater innovation and problem-solving capabilities. When leaders leverage their strengths and encourage others to do the same, they unlock diverse perspectives and expertise, leading to more creative solutions and better outcomes.
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Which of the following is not one of the criteria for revenue recognition?
a. Persuasive evidence of an arrangement exists.
b. Collectability is certain.
c. Delivery has occurred or services have been provided.
d. The seller’s price to the buyer is fixed and determinable.
The answer is b. Collectability is certain.
The criteria for revenue recognition provide guidelines for when and how revenue should be recognized in the financial statements. They help ensure that revenue is recorded in a manner that accurately reflects the earning process and the company's performance.
Option b states that collectability is certain, but this is not one of the criteria for revenue recognition. While the collectability of revenue is important for the financial stability of a company, it is not a criterion for recognizing revenue. Instead, collectability is considered as part of the assessment of the realizability of revenue, which is a separate accounting consideration.
The other options all represent criteria for revenue recognition:
a. Persuasive evidence of an arrangement exists: This criterion requires that there is a documented agreement or contract between the company and the customer, providing evidence of the terms and conditions of the transaction.
c. Delivery has occurred or services have been provided: Revenue should be recognized when the company has fulfilled its obligations under the contract by delivering goods or providing services to the customer.
d. The seller's price to the buyer is fixed and determinable: This criterion ensures that the selling price is established and can be reliably measured, allowing for the recognition of revenue.
In conclusion, the criteria for revenue recognition include the existence of an arrangement, delivery of goods or services, and a fixed and determinable price. Collectability, while important, is not one of the specific criteria for revenue recognition.
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Question 12 of 12 < View Policies Current Attempt in Progress The following information is available from the annual reports of Cullumber Company and Ivanhoe Company (Amounts in millions) Cullumber Ivanhoe Net Income $960 $1,270 Sales 22,650 33,810 Total Assets (average) 21,180 36,160 Based on the preceding information, compute the following values for each company: (Round asset turnover ratio to 2 decimal places, eg 15.25 and return on assets to 1 decimal place, es 15.2%) Cullumber Ivanhoe times times 1 Asset turnover ratio % 2. Return on assets eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later -/10 1
Cullumber Company has an asset turnover ratio of approximately 1.07 times, indicating that it generates $1.07 in sales for every dollar of average total assets. it is approximately 4.53%, meaning it generates a profit of 4.53 cents for each dollar of average total assets.
To compute the values for each company, we'll use the following formulas:
1. Asset Turnover Ratio:
Asset Turnover Ratio = Sales / Average Total Assets
2. Return on Assets:
Return on Assets = Net Income / Average Total Assets
Let's calculate the values for each company:
For Cullumber:
1. Asset Turnover Ratio:
Asset Turnover Ratio = $22,650 million / $21,180 million = 1.07 times (rounded to 2 decimal places)
2. Return on Assets:
Return on Assets = $960 million / $21,180 million = 4.54% (rounded to 1 decimal place)
For Ivanhoe:
1. Asset Turnover Ratio:
Asset Turnover Ratio = $33,810 million / $36,160 million = 0.94 times (rounded to 2 decimal places)
2. Return on Assets:
Return on Assets = $1,270 million / $36,160 million = 3.51% (rounded to 1 decimal place)
Therefore, the computed values for each company are as follows:
Cullumber:
- Asset Turnover Ratio: 1.07 times
- Return on Assets: 4.54%
Ivanhoe:
- Asset Turnover Ratio: 0.94 times
- Return on Assets: 3.51%
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Steady Company's stock has a beta of 0.19. If the risk-free
rate is 6.2% and the market risk premium is 7.1%, what is an
estimate of Steady Company's cost of equity?
The estimate of Steady Company's cost of equity is approximately 6.3349%.
How to estimate Steady Company's cost of equity?The Capital Asset Pricing Model (CAPM) formula can be used to estimate the cost of equity for Steady Company. The following is the CAPM formula:
Equity Cost = Risk-Free Rate + Beta Market Risk Premium
Using the information provided:
6.2% risk-free rate
7.1% Market Risk Premium
Beta = 0.19
We can enter the following values into the formula:
Equity Cost = 6.2% + 0.19 7.1%
Putting the expression together:
Equity Cost = 6.2% + 0.019 7.1%
Equity Cost = 6.2% + 0.1349%
Equity cost = 6.3349%
As a result, the cost of equity for Steady Company is estimated to be 6.3349%.
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A proposal manufacturing plant will have an annual fixed costs of $60,000, a variable costs of $35 per
unit of output, and a revenue of S55 per unit of output.
(A) Determine the break-even quantity.
(B) What volume of output will be necessary for an annual profit of $60,000?
(C) What is the importance of break-even quantity?
(A) Determining the break-even quantity Fixed cost = $60,000Variable cost per unit = $35Selling price per unit = $55.
Let’s first calculate the break-even point of the manufacturing plant by using the following formula:
Break-even point = (Fixed cost) / (Selling price - Variable cost)
BE point = 60,000 / (55 - 35) = 2,000 units.
Thus, the break-even quantity of the plant is 2,000 units.
(B) Volume of output necessary for an annual profit of $60,000
Fixed cost = $60,000
Variable cost per unit = $35
Selling price per unit = $55
Let’s find the volume of output necessary for an annual profit of $60,000.
We use the following formula to find out the volume of output:
Profit = Total revenue - Total cost Total revenue = Selling price * Volume of output Total cost = Fixed cost + Variable cost * Volume of output
$60,000 = ($55 * Volume of output) - ($60,000 + $35 * Volume of output)$60,000 = $55V - $60,000 - $35V$60,000 + $60,000 = $55V - $35VV = $120,000 / $20V = 6,000 units
The volume of output necessary for an annual profit of $60,000 is 6,000 units.
(C) Importance of break-even quantity:
Break-even quantity helps companies to determine the point at which total revenue equals total costs, thus assisting in finding out the amount of revenue and quantity that is needed to cover all costs.
This break-even point is important in determining whether or not a business or company will be profitable.
In addition, it assists in identifying potential cost savings, as well as providing a clear picture of the business's financial position.
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3. Which of the following would NOT be part of the opportunity costs of going to college? A. The money spent on tuition B. Interest payments on student loans C. Money spent on textbooks D. Foregone wages given up to attend college E. Money spent on clothes
Opportunity cost is defined as the value of best alternative foregone when an economic decision is made. Money spent on clothes would NOT be part of the opportunity costs of going to college. The correct option E.
Opportunity cost is an important concept in economics. It is the cost of the next best option that one has to give up while making a choice. In other words, the opportunity cost is the value of the best alternative foregone when an economic decision is made.
In the context of going to college, the opportunity costs typically include items directly related to education and income potential. A, B, C, and D are all examples of opportunity costs associated with going to college. They involve financial resources and potential earnings that could have been used for other purposes. However, money spent on clothes does not directly relate to the decision to attend college and does not represent a trade-off between alternatives in this context.
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The effect of a change in accounting principle is disclosed on the income statement: after income from operations. before discontinued operations. before extraordinary items. after extraordinary items
The effect of a change in accounting principle is typically disclosed on the income statement before discontinued operations and before extraordinary items. Thus, options B and C are correct.
If there are any changes made in accounting principles, the company will adopt all the new changes and methods or policies for its financial statements. This also provides transparency and comparability for financial statement firms and only for special items in firms.
These discontinued operations and the disclosure effect are generally presented after the income statement from the operations section department. The effect of accounting is considered an overall financial change and the process is done after income from operations.
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The effect of a change in accounting principle is disclosed on the income statement:
a. after income from operations.
b. before discontinued operations.
c. before extraordinary items.
d. after extraordinary items
What are some of the disadvantages of being a small producer in a supply chain with large, powerful retailers?
Small producers face significant disadvantages in supply chains with large, powerful retailers. Retailers' immense bargaining power and greater economies of scale often result in unfavorable terms for small producers.
The following are some of the drawbacks of being a small producer in a supply chain with large, powerful retailers:
1. Price Pressure: Large retailers demand lower prices from suppliers, particularly small producers. As a result, small producers face reduced profit margins and, in some cases, lower-quality inputs to meet their cost targets. The pressure to reduce prices can also result in lower quality products.
2. Limited Bargaining Power: Large retailers often control the price, volume, and other terms of the supply agreement. As a result, small producers have limited bargaining power in the supply chain, which can lead to unfair contracts, pricing, or loss of business.
3. High Costs: Small producers face higher costs than larger producers due to smaller economies of scale. As a result, their prices are usually higher, making them less competitive in the marketplace.
4. Dependency: Small producers who sell to large retailers are more reliant on them to stay in business. Large retailers often dictate how much product small producers must supply and when they must deliver it, making it difficult for small producers to change suppliers if they do not agree with the terms.
5. Intellectual Property Rights: Large retailers can often require that small producers transfer ownership of their intellectual property rights to the retailers as part of the supply agreement. Small producers often lack the resources or knowledge necessary to safeguard their intellectual property rights. This can lead to the loss of valuable assets and an inability to develop new products to meet consumer demand.Thus, these are some of the disadvantages of being a small producer in a supply chain with large, powerful retailers.
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Small producers often have to deal with several disadvantages when it comes to operating in a supply chain with large and powerful retailers. Some of these disadvantages are listed below:
1. Limited bargaining power: Since small producers do not possess the same buying power as large retailers, they may find it difficult to negotiate better terms or prices for their products. As a result, they may be forced to accept unfavorable contract terms that could impact their profits.
2. Financial constraints: Small producers often lack the financial resources required to invest in technology or other resources that can help them scale their operations. This puts them at a disadvantage when it comes to competing with larger retailers who can afford to invest in such resources.
3. High costs: Small producers may have to incur higher costs of production since they may not have access to the same economies of scale as larger retailers. Additionally, smaller volumes of production may make it more difficult for them to spread their fixed costs over a larger number of units, which could lead to higher per-unit costs.
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in the long run, ________ differences in economic growth rates result in ________ differences in gdp per capita.
Persistent economic growth differences result in divergent GDP per capita.
What results from divergent economic growth?In the long run, persistent differences in economic growth rates lead to significant disparities in GDP per capita. Economic growth refers to the sustained increase in real output over time, while GDP per capita is a measure of economic prosperity per individual. When certain countries experience higher growth rates than others for an extended period, the compounding effect of this divergence becomes pronounced. Countries with faster economic growth tend to accumulate more capital, invest in productive sectors,
foster technological advancements, and enhance human capital. These factors contribute to higher productivity levels and income levels, ultimately resulting in higher GDP per capita. Conversely, countries with slower growth rates struggle to achieve similar advancements and face challenges in lifting their living standards. Consequently, disparities in economic growth rates lead to significant disparities in GDP per capita among nations.
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Rourke Enterprises is owned by Dallas. For the year, Rourke had net income per books of $450,000. This included the following items: Federal income tax expense Bad Debt Expense¹ Rent Meals Depreciation expense² Dividends³ $125,000 $80,000 $50,000 $45,000 $105,000 $50,000 1 This was calculated using the allowance method. Using specific write-off, this would have been $50,000. 2 Sum-of-the-years-digits method was used for book purposes. Had MACRS been used, depreciation expense would have been $125,000. Had straight-line been used, depreciation would have been $95,000. 3 These dividends were from Mavis, Inc. Rourke owns 75% of Mavis. ✔ During the year, Rourke pays Dallas distribution of $500,000. Dallas has a basis of $600,000 in her stock. 11. What are the tax consequences of the distribution to Dallas? (10 points)
The tax consequences of the distribution to Dallas are as follows:
Dallas will recognize dividends of $450,000.Dallas will recognize capital returns of $50,000.Dallas's basis in her stock will be reduced to $550,000.Here is a more detailed explanation of each of these consequences:Dividends refer to the allotment of a company's earnings to its shareholders. They are subject to taxation at the standard rate applicable to regular income. Dallas will identify a sum of $450,000 as dividends, and this amount will be subject to taxation at her regular income tax rate.
Capital returns refers to a transfer of company resources to shareholders as a form of distribution. They are subject to taxation under the capital gains tax rate. Dallas will be taxed at her capital gains tax rate on the capital returns of $50,000 that she will receive.
A shareholder's basis in their stock comprises their invested capital, capital contributions, and reinvested earnings. Dallas holds a stock with a basis amounting to $600,000. Once the allocation is complete, her initial investment will diminish to an amount of $550,000.
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a. Discuss why investors perceive share buy-backs to be weaker than a cash dividend? (4 marks) b. You own 5,000 shares of Irri-gate Co. The company has decided to pay a special dividend of $2.00 per share. Dividend payments are taxed at 15 per cent. You intend to reinvest your dividend back into the company, but the company does not have a dividend reinvestment program. To reinvest through your broker, you will have to pay a $65 commission. If the company's shares are trading at $14.00 following the dividend payment, how many additional shares will you be able to purchase? (3 marks)
a. Investors perceive share buy-backs to be weaker than a cash dividend because;
Dividends provide immediate cash returns, while buybacks rely on stock price increaseDividends offer stable income, while buybacks are subject to market volatilityb. The additional share is 602.5
How to determine the additional shareTo determine the additional share, we have;
The total dividend payment is 5,000 × $2.00
= $10,000
After taxes is $10,000 × 0.85 = $8,500.
For purchasing additional share = $8,500 - $65 = $8,435.
Additional shares that can be purchased is expressed as;
= $8,435 / $14.00
Divide the values, we get;
= 602. 5
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Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Answer:
A
Explanation:
your broker requires an initial margin of $900 per futures contract on wheat and a maintenance margin of $650 per contract. wheat futures contracts are based on 5,000 bushels and quoted in cents per bushel. you sold 6 wheat futures contracts at a price quote of 673 cents per bushels. today, the settlement quote is 681 cents per bushels. will you receive a margin call and if so, for what amount (6 contracts totally)? assume you have not received any previous margin calls. a. call for $900 b. call for $400 c. call for $150 d. call for $2,400 e. no margin call
The Initial Equity is $2,400 for the maintenance margin of $3,900. Thus, option D is correct.
Price at Sale = 673 cents
Price at Settlement = 681 cents
Contract Size = 5,000 bushels
Number of Contracts = 6 contracts
The initial equity can be calculated as:
Initial Equity = (Price at Sale - Price at Settlement) x Contract Size x Number of Contracts
Initial Equity = (673 cents - 681 cents) x 5,000 bushels x 6 contracts
Initial Equity = -8 cents x 5,000 bushels x 6 contracts
Initial Equity = $2,400
The maintenance margin = $650 x 6 = $3,900.
Margin Call = Maintenance Margin Requirement - Initial Equity
Margin Call = $3,900 - (-$2,400)
Margin Call = $3,900 + $2,400
Margin Call = $6,300
Therefore, we can conclude that the Initial Equity is $2,400.
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Three partners vote unanimously to dissolve their partnership and the partnership's assets are liquidated, all debts are paid, and the remainder is divided among the partners. This results in O a. the continuation of the partnership's business. Ob. nothing with respect to the partnership's existence. Oc. the temporary suspension of the partnership's business. O d. the termination of the partnership's legal existence.
The dissolution of a partnership refers to the discontinuation of the business operations and the closure of the firm. Thus, option D ) the termination of the partnership's legal existence is correct.
Three partners voting unanimously to dissolve their partnership and the partnership's assets are liquidated, all debts are paid, and the remainder is divided among the partners results in the termination of the partnership's legal existence.
Partnership dissolution A partnership dissolution refers to the termination of the relationship between the partners, the conclusion of the partnership's business operations, the settlement of its debts, and the distribution of remaining assets among the partners.
As a result, all partners are relieved of any future obligations to one another, and the partnership ceases to exist. When a partnership is dissolved, it is common practice to liquidate all of its assets, pay off all of its debts, and distribute any remaining capital to the partners. The termination of the partnership's legal existence is a consequence of the liquidation of the business's assets and the settlement of all outstanding liabilities, resulting in the dissolution of the partnership.
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Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the president of Emarpy, is concerned about the production policy for the company's best-selling refrigerator. The annual demand for this has been about 8,250 units each year, and this demand has been constant throughout the year. The production capacity is 130 units per day. Each time productionstarts, it costs the company $120 to move materials intoplace, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $50 per year. The current production plan calls for 390 refrigerators to be produced in each production run. Assume there are 250 working days per year.
a) what is daily demand for this product?
b) if the company were to continue to produce 390 units each time production starts, how many days would production continue?
The daily demand for the product is 33 units. The correct option is A.
The company would need 11.82 days to produce 8250 units of refrigerators if they continue to produce 390 units each time production starts.
a) The daily demand for the product is given as; Annual demand = 8,250 unitsDemand per day = Annual demand / Working days per year= 8250 / 250= 33 units per day
b) To find how many days the production would continue if the company continues to produce 390 units each time production starts, we can use the following formula: Q / D = Run time here, Q = Lot size or quantity of refrigerators to be produced each time production starts = Daily demand for the production time = How long it will take for the company to produce a number of refrigerators equal to annual demand given that 250 working days in a year.
So, using the above formula, we have: Q = 390 units = 33 unitsRun time = Annual demand / (Lot size / Run time)Here, annual demand = 8250 unitsLot size = 390 unitsRun time =? Using the formula, we have;
Q / D = Run time390 / 33 = Run time11.82 = Run timeTherefore, the company would need 11.82 days to produce 8250 units of refrigerators if they continue to produce 390 units each time production starts.
However, as we cannot have a fraction of a day in production, the production will continue for 12 days.
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Just Zip-It Inc. issued 20,000 shares of P5 par common stock at P10 per share. On December 31, 2020, Just Zip-It's retained earnings were P300,000. In March 2021, the firm reacquired 5,000 shares of its common stock at P20 per share. In June 20, 2021, it sold 1,000 of these shares to its corporate officers for P25 per share. Net income for the year ended December 31, 2021, was P60,000. On December 31, 2021, what amount should the corporation report as retained earnings?
The amount that the corporation should report as retained earnings on December 31, 2021 is P320,000.What are retained earnings.Retained earnings are the profits that a company keeps after paying dividends to shareholders. It's important to remember that companies don't just retain profits for the sake of it. They do it to fund future projects, pay off debt, or expand their operations in other ways.The following are the given data:20,000 shares of P5 par common stock at P10 per share were issued on Just Zip-It Inc. On December 31, 2020, the corporation's retained earnings were P300,000. In March 2021, the corporation bought back 5,000 shares of its common stock at P20 per share. In June 20, 2021, the corporation sold 1,000 of these shares to its corporate officers for P25 per share. The net income for the year ended December 31, 2021, was P60,000.\
According to the problem, there are no outstanding shares of stock for the Just Zip-It Inc after it has reacquired 5,000 shares of its common stock. Hence, the amount of total cash received for the 20,000 shares of common stock sold by the corporation at P10 per share is:P10 * 20,000 = P200,000Since the corporation bought back 5,000 shares of common stock at P20 per share, the total amount spent on those shares is:P20 * 5,000 = P100,000And the total amount of cash received by selling 1,000 shares at P25 per share is:P25 * 1,000 = P25,000So, the total amount of cash received from selling stock, subtracting the cash paid for the buyback, and adding the cash received from selling stock to corporate officers is:P200,000 - P100,000 + P25,000 = P125,000The retained earnings balance on December 31, 2020 was P300,000 and the net income for the year ended December 31, 2021, was P60,000. Hence, the total retained earnings as of December 31, 2021, is:P300,000 + P60,000 = P360,000Therefore, the corporation should report P320,000 as retained earnings on December 31, 2021.
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On June 30, 2021, Blair Industries had outstanding $106 million of 9% convertible bonds that mature on June 30, 2022. Interest is payable each year on June 30 and December 31. The bonds are convertible into 9 million shares of $10 par common stock. At June 30, 2021, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2021, half the bonds were converted when Blair's common stock had a market price of $43 per share. When recording the conversion, Blair should credit paid-in capital-excess of par: $8 million. $4 million. Loooo $6 million. $10 million.
When recording the conversion, Blair should credit paid-in capital-excess of par: $6 million. A convertible bond is a kind of bond that can be converted into a certain number of shares of the issuer's common stock at a predetermined price or exchange ratio.
The convertible bond's yield-to-maturity is greater than a non-convertible bond's yield-to-maturity. The conversion feature allows investors to profit from the upside potential of the underlying stock. In other words, convertible bonds pay lower interest rates than equivalent non-convertible bonds because investors are given a potential option to benefit from equity growth if the bond issuer's common stock value rises.How to calculate the bond discount?Bond discount is calculated by subtracting the bond's face value from the initial sales price. When the initial sales price is lower than the bond's face value, bonds are sold at a discount.
Paid-in capital, also known as contributed capital, is the amount of money investors have given to a corporation in exchange for stock. Paid-in capital exceeds par value is the difference between the par value of the stock and the amount of cash paid for each share above the par value. In this case, the convertible bond's unamortized discount on June 30, 2021, was $4 million. Half of the bonds were converted when the common stock was trading at $43 per share. The bond is convertible into 9 million shares of $10 par common stock. So, $43 * 4.5 million shares is equal to $193.5 million in total. The conversion price is calculated as $106 million in outstanding bonds divided by 9 million in conversion shares, which equals $11.78 per share.
So, there were 4.5 million shares converted into common stock, and the conversion was valued at $52.5 million ($11.78 per share times 4.5 million shares). When recording the conversion, Blair should credit paid-in capital-excess of par: $6 million. Answer: $6 million.
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Suppose you paid $500 to take this economics course which meets 30 times for one hour a class. Instead of attending class you could either flip hamburgers for $10 an hour or wait tables for $17 an hour.
a. What is the opportunity cost of attending each class?
b. What is the sunk cost for taking the class?
c. Explain what would happen to your opportunity cost of attending college if you receive a very attractive offer to start a job today that would permit you to earn about 50 percent more than you expected to make after graduation
a. Opportunity cost of attending each class is the value of the best alternative forgone (lost) by taking the class. Since you could have been flipping hamburgers for $10 an hour, your opportunity cost for each hour spent in class would be $10.
Therefore, your opportunity cost for each class would be $10 (1 hour per class) or $300 (30 hours of class time).
b. Sunk costs are those costs that cannot be recovered, no matter what action you take. The sunk cost for taking the class is the $500 you paid for the course. Since this cost cannot be recovered, it is a sunk cost.
c. If you receive an attractive job offer that would allow you to earn 50 percent more than you expected to make after graduation, the opportunity cost of attending college would increase. This is because the value of the best alternative forgone by attending college (which previously was lower than what you would earn after graduation) is now higher than what you would earn after graduation. Therefore, it would make more sense to take the job offer and forgo attending college, as the opportunity cost of attending college would now be higher than the benefits of attending college.
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During a recent civil emergency, a government placed a maximum price on bottled water which was far below the equilibrium price. Explain how this might have the opposite effect in some cases and create a black market with very high prices being paid for drinking water. How high could black market prices for drinking water potentially go? Provide one or more diagrams to illustrate your answer
During a recent civil emergency, a government placed a maximum price on bottled water which was far below the equilibrium price. This might have the opposite effect in some cases and create a black market with very high prices being paid for drinking water.
The government regulation of setting a maximum price on bottled water during a civil emergency situation can cause a shortage of drinking water. At a price below the equilibrium price, there will be an increase in the quantity of demand for bottled water and a decrease in the quantity of supply. Since the price is lower than the equilibrium price, the quantity demanded of bottled water exceeds the quantity supplied, causing a shortage of drinking water.As a result, some suppliers may not be willing to provide water at the regulated maximum price.
Consumers who need the water will be willing to pay more than the maximum price set by the government, which will result in a black market where water will be sold at a higher price than the government regulated price. The black market price will continue to increase until it reaches the point where it equals the demand and supply forces in the market. In a scenario where there is a limited supply of water, the black market price could be very high, and the shortage may persist until the supply increases or the price increases to reduce demand. The figure below illustrates how the imposition of a maximum price creates a shortage of bottled water in a market.
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a nation with an elaborate bureaucracy controlling imports and exports is most likely a
A nation with an elaborate bureaucracy controlling imports and exports is most likely a centrally planned or communist state.
In such systems, the government exercises significant control over economic activities, including trade. The bureaucracy ensures strict regulations, permits, and procedures to monitor and manage imports and exports, often with the aim of protecting domestic industries, controlling resources, or maintaining a specific economic or political agenda. Examples of countries that historically had such bureaucracies include the former Soviet Union, China under Mao Zedong, and North Korea.
In these nations, the government's involvement in trade is pervasive, with numerous bureaucratic agencies responsible for approving and overseeing trade activities. This level of control is characteristic of planned economies, where the state directs economic decisions and resource allocation. The bureaucracy's primary role is to implement and enforce the government's policies and regulations related to imports and exports, resulting in a highly centralized and regulated trade system.
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Which of the following is not a requirement for using AWS S3 bucket as a website?
The bucket must contain the landing page
The name of the landing page must be index.html
The bucket properties must be modified to enable Static web hosting
The bucket properties must be modified to enable Static web hosting
The bucket must contain the landing page is not a requirement for using AWS S3 bucket as a website. Thus, option A is correct.
When setting up a bucket in AWS S3 to host a static website, the landing page itself is not required to be present in the bucket. Before activating static web hosting, the landing page, generally an HTML file with the name “index.html,” is not required to be present in the bucket.
The following conditions must be met in order to use an AWS S3 bucket as a website:
The landing page's name must be “index.html” (this is the default, although other configurations are possible). For static web hosting to be possible, the bucket properties must be changed. The bucket and its contents must be setup with the required rights and access control settings for public access.Therefore, option A is correct.
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Describe the information needed to produce an aggregate plan. (2) Explain the basic trade-offs to consider when creating an aggregate plan.
Information needed for an aggregate plan includes demand forecasts and capacity constraints. The basic trade-offs in aggregate planning involve production costs vs. inventory costs, customer service levels vs. cost, flexibility vs. stability, and subcontracting vs. in-house production.
To produce an aggregate plan, the following information is needed:
Demand Forecast: Information about the expected demand for the products or services during the planning horizon is necessary.
Capacity Constraints: Understanding the capacity limitations of various resources, such as labor, machinery, and facilities, is crucial. This includes information on production rates, workforce availability, machine capacities, and other relevant constraints.
The basic trade-offs to consider when creating an aggregate plan are:
Production Costs vs. Inventory Costs: Increasing production levels can lead to higher production costs, such as labor and materials, while maintaining higher inventory levels incurs carrying costs.
Customer Service Levels vs. Cost: Higher production levels can result in better customer service and shorter lead times. However, increased production may also lead to higher costs.
Flexibility vs. Stability: A more flexible aggregate plan allows for adjustments based on demand fluctuations, but it can increase costs.
Subcontracting vs. In-house Production: Choosing between subcontracting and in-house production involves trade-offs between costs, quality control, lead times, and capacity utilization.
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