The Mexican Peso, the Japanese Yen, and Pokemon Go closing case
Nintendo’s hit game Pokemon Go is a lot less lucrative in Mexico than the Japanese company originally thought it would be. This is because Mexicans purchase the "Pokecoins" they need to navigate the game in Mexican pesos, and the peso has been falling in value against the Japanese yen. Back in early 2015, 1 Mexican peso bought 8 Japanese yen. By September-2016, 1 peso was only worth about 5.1 Japanese yen. This meant that when pesos spent on Pokemon Go were translated back into Japanese yen, they were worth less in yen, which negatively affected Nintendo’s profits from Mexico.
The diverging values on the yen and peso are a function of their exchange rates against the U.S. dollar. Most trades between the yen and the peso are converted through the U.S. dollar, rather than traded directly. This is because the U.S. dollar is the world’s most widely traded and liquid currency. It’s easier to trade dollars for yen, and dollars for pesos, than it is to trade yen for pesos. For much of 2016, the yen gained against the dollar, while the Mexican peso fell, leading to a fall in the peso/yen exchange rate.
The strength of the yen reflected the belief that Japan is a safe haven in which to park cash. Although the Japanese economy has been stagnant for decades, inflation is low and the yen has been a strong currency. The Mexican peso is the most liquid emerging market currency, which makes it an easy one to sell when investors worry about the economic strength of developing economies, which they did in 2015 and 2016. To compound matters, worries about the health of the Mexican economy following the election of Donald Trump to the U.S. presidency put further pressure on the peso. Trump threatened to pull the United States out of NAFTA—the regional trade deal that has been a major boon for Mexico. The Mexican peso hit a record low against the U.S. dollar following the election of Mr. Trump.
In addition to Nintendo, the fall in the value of the peso against the yen has created problems for other Japanese firms. Japanese automakers have significant assembly operations in Mexico. Companies such as Toyota and Mazda import a large number of specialty electronic components from suppliers in Japan. The price of these components has gone up when translated into pesos, raising costs for their Mexican operations and making them less profitable.
On the other hand, the weak peso has boosted demand for some Mexican products in Japan. For example, Japan imports a large quantity of frozen Mexican pork. The price has fallen when translated into yen and demand has surged. Mexico dices up the pork and exports it to Japanese convenience stores, where it is sold in bento boxes. The dicing process is labor intensive—and one less step they have to perform in Japan. Mexico can do it cheaper, and the currency moves have only added to the cost savings, which is good for Japanese consumers.
Read the closing case "The Mexican Peso, the Japanese Yen, and Pokemon Go." It explores the implications of the changing value of the peso against the yen on Japanese game maker Nintendo. Examine the issues relevant to the case from the perspective of the following questions:
(a) Why are most trades between the Japanese yen and the Mexican peso made through U.S. dollars?
(b) Explain why the peso fell in value against the Japanese yen during 2016. How predictable was this fall?
(c) What were the benefits and costs of the fall in the value of the peso against the yen for Mexican and Japanese companies respectively?
(d) Should Japanese companies such as Nintendo and Toyota with business in Mexico have hedged against adverse changes in the peso/yen exchange rate? How might they have done that?

Answers

Answer 1

(a) Most trades between the Japanese yen and the Mexican peso are made through U.S. dollars because the U.S. dollar is the world's most widely traded and liquid currency, making it easier to trade dollars for yen and pesos.

(b) The peso fell in value against the Japanese yen during 2016 due to the diverging exchange rates against the U.S. dollar. The yen gained strength due to its perceived status as a safe haven for cash, while worries about the health of the Mexican economy and the election of Donald Trump put pressure on the peso. The fall in value was predictable to some extent, given the economic and political circumstances.

(c) The fall in the value of the peso against the yen had both benefits and costs for Mexican and Japanese companies. For Japanese firms such as Nintendo and Toyota, the fall in the value of the peso made their Mexican operations less profitable and raised costs for imported electronic components. However, the weak peso also boosted demand for some Mexican products in Japan, such as frozen pork. Mexican companies could do the dicing process cheaper, and the currency moves only added to the cost savings.

d) Japanese companies with business in Mexico could have hedged against adverse changes in the peso/yen exchange rate by using financial instruments such as forward contracts or options. This would have allowed them to lock in exchange rates and reduce their exposure to currency fluctuations. However, hedging comes with costs and may not always be necessary depending on the company's risk tolerance and financial situation.

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Related Questions

Which inventory system maintains a running record of inventory onâ hand, purchased, andâ sold?A.ConsignedB.AccruedC.PeriodicD.Perpetual

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The inventory system that maintains a running record of inventory on-hand, purchased, and sold is called the perpetual inventory system. Perpetual inventory systems use computerized tracking systems, barcoding, and other technologies to keep track of inventory levels. The correct answer is option d.

In this system, inventory levels are updated continuously, in real-time, as goods are bought and sold. This means that the inventory balance reflects the most current information, which helps businesses make better decisions when it comes to managing their inventory levels. They provide accurate and timely information about inventory levels, allowing businesses to keep an eye on stock levels and adjust their purchasing and sales strategies as needed. This system is particularly useful for businesses with high-volume sales or those that carry a large number of products.

In contrast, periodic inventory systems rely on physical inventory counts that are conducted periodically (hence the name). These systems are less accurate and more time-consuming than perpetual inventory systems, but they may be sufficient for small businesses with low inventory turnover rates.In conclusion, if a business wants to maintain accurate and up-to-date records of their inventory, the perpetual inventory system is the way to go. It provides timely and accurate information about inventory levels, helping businesses make informed decisions about purchasing, sales, and inventory management.The correct answer is option d.

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Which term refers to the estimated time that an improvement will be profitably useful?Economic lifeSocial lifeBussiness lifeFlexing

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Economic Life is the quantum of time that an enhancement is anticipated to be profitable. Option A is this one.

An asset's anticipated economic life is how long it'll be useful to its average proprietor. It's said that an asset has outlasted its profitable life when it no longer serves its proprietor's requirements.

An asset's factual physical life may differ from its profitable life. The complete leftover financial actuality of a house is determined by abating the compelling age of the home from its all-out fiscal life.

Question

Which term alludes to the assessed time that an enhancement will be productively precious?

a) Economic life

b) Public exertion

c) Business life

d) Flexing

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according to gasb statement no. 54, amounts related to encumbrances should be disclosed in the notes to the financial statements. group of answer choices true false

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The correct answer for the statement '' according to gasb statement no. 54, amounts related to encumbrances should be disclosed in the notes to the financial statements.'' is True.

GASB Statement No. 54 requires that amounts related to encumbrances be disclosed in the notes to the financial statements. Encumbrances are commitments to purchase goods or services that have been made but not yet paid for, and they represent a portion of a government's budget that is set aside for specific purposes.

These amounts must be disclosed in the notes to the financial statements because they provide important information about a government's financial position and its ability to meet its financial obligations.

The disclosure must include the amount of encumbrances outstanding at the end of the reporting period, as well as any changes in those amounts during the period. The disclosure must also explain the nature of the encumbrances and how they relate to the government's operations.

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E 2. The development of a new line of Japanese cars increases British demand for foreign goods, at any given real exchange rate. There is no change in overall consumption spending. What happens to the

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The development of a new line of Japanese cars increases British demand for foreign goods, at any given real exchange rate will lead to Britain's trade imbalance.

At any given real exchange rate, the development of a new line of Japanese cars increases British demand for foreign goods. This means that British consumers will now be purchasing more goods from abroad than they were previously. However, there is no change in overall consumption spending, which implies that the increased demand for foreign goods will be offset by a decrease in demand for domestic goods.

This will lead to a decrease in the value of the pound sterling relative to other currencies, as more pounds will be exchanged for foreign currency to purchase the increased amount of foreign goods.

This will result in a trade deficit for Britain, as they are importing more than they are exporting.

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In what type of method are annual performance goals established jointly between the manager and employee? A: Productivity measurement and evaluation systems B: MBO C: Assessment centers D: Critical incidents E: OB modification

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The type of method where annual performance goals are established jointly between the manager and employee is MBO or Management by Objectives. The answer is B.

MBO is a goal-setting process where both the manager and employee identify and set objectives together. These objectives are then used as a basis for evaluating employee performance.

The MBO process involves setting specific, measurable, achievable, relevant, and time-bound (SMART) goals that align with the company's overall objectives. By setting goals together, managers and employees can ensure that everyone is working towards the same objectives, and employees are more likely to be motivated to achieve them.

MBO is a popular method of performance management as it promotes a collaborative approach to goal-setting, allows for regular feedback and communication, and can help to align individual and organizational goals.

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when is expanding product variety not a good idea? multiple choice when adding variety increases overall profitability when adding variety increases total demand insignificantly when adding variety increases consumer value significantly when adding variety increases overall margin.

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When is expanding product variety, increases total demand insignificantly is not a good idea. Option b is correct.

While expanding product variety may seem like a good idea, it can lead to increased costs, inventory management issues, and dilution of brand identity. Therefore, it is not a good idea when the increase in variety does not result in a significant increase in total demand. If adding variety can increase overall profitability, consumer value, or overall margin, it may be a good idea. However, the decision to expand product variety should always be carefully evaluated based on the potential benefits and drawbacks. Option b is correct.

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A value chain is a linked set of value-creating activities- True- False

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True, a value chain is a linked set of value-creating activities.

The value chain refers to the set of activities or business procedures which are helpful for the firm to create a face value for the firm or its product in the market or the people consuming it in their lifestyle.

The value-creating activities can be the advertisement strategy which can be used to increase the customer flow in the company, manufacturing of great goods which can be considered great in terms of customer satisfaction, research and development in terms of sales, and knowing the market and the competition in opposition to our company so that better product can be used to handle the situation.

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14. XYZ company has the following fixed overhead data pertain to March: Actual Static Budget Production 35,500 units 34,000 units Machine-hours 10,375 hours 10,200 hours Fixed overhead costs for March $213,200 $153,000 What is the fixed overhead production-volume variance

Answers

The fixed overhead production-volume variance for XYZ company in March is $57,612.74.

The fixed overhead production-volume variance can be calculated as follows:

Fixed overhead budgeted at static volume = (Fixed overhead costs for March / Static budget production) x Actual Production

= ($153,000 / 34,000) x 35,500

= $159,338.24

Fixed overhead applied at actual volume = (Fixed overhead costs for March / Machine-hours at static volume) x Actual machine-hours

= ($213,200 / 10,200) x 10,375

= $216,950.98

Fixed overhead production-volume variance

= Fixed overhead applied at actual volume - Fixed overhead budgeted at static volume

= $216,950.98 - $159,338.24

= $57,612.74

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Controlling procurement activities according to the procurement plan, in order to verify compliance with project objectives, is a task under what process group?
Closing
Monitoring & Controlling
Executing
Planning

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Controlling procurement activities according to the procurement plan, in order to verify compliance with project objectives, is a task under Monitoring & Controlling.

An essential part of project management is the practise of monitoring procurement operations to ensure that they are in line with project goals. It belongs to the Monitoring & Controlling process group, which is in charge of keeping tabs on project development and making sure it stays on course.

Managing procurement operations entails keeping an eye on the procurement process to make sure that it adheres to the plan, confirming that the purchase is consistent with the project's objectives and specifications, and spotting any deviations from the plan. To make sure the project doesn't veer off course, corrective measures must be done if any problems do occur.

The Monitoring & Controlling process group plays a key role in spotting deviations from the project plan, investigating the underlying causes, and carrying out corrective measures. Project managers can increase the likelihood that their work will be successful by keeping procurement operations under control throughout this stage and ensuring that the project is finished on schedule, within budget, and to the needed quality standards.

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eric, becky, and brenda are all licensed medical doctors who form a professional corporation, dr. inc., to practice medicine. they are the only shareholders. eric negligently operates on a patient, george, seriously injuring him. george sues dr. inc., eric, becky, and brenda for malpractice. assuming that the general rules of corporate liability apply, from whom may george recover?

Answers

Explanation:

As per the general rules of corporate liability, a professional corporation is a separate legal entity, and shareholders are not personally liable for the corporation's obligations or actions, including malpractice. Therefore, George can sue only Dr. Inc., and not Eric, Becky, or Brenda individually, for the damages caused by Eric's malpractice. The liability of the corporation is limited to its assets, and the personal assets of the shareholders are protected from creditors' claims in most cases. However, there may be some exceptions to this general rule, depending on the specific circumstances of the case and the state laws governing professional corporations.

Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes in one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.)Average Total Cost (ATC = TC / Q)Number of FactoriesQ = 100Q = 200Q = 300Q = 400Q = 5001120909013521021801209012018032101359090120Suppose Ike's Bikes is currently producing 400 bikes per month in its (only) factory. Its short-run average total cost is _____ per bike.

Answers

Ike's Bikes is currently producing 400 bikes per month in its (only) factory, its short-run average total cost is $90 per bike.


In order to expand production, Ike's Bikes needs to consider its short-run average total cost. The table shows that as production increases, the average total cost decreases. However, adding more factories may not necessarily result in a lower average total cost.
For example, if Ike's Bikes expands to two factories and produces a total of 400 bikes, the average total cost would be $90. However, if it expands to three factories and produces a total of 400 bikes, the average total cost would increase to $120.
Therefore, Ike's Bikes needs to carefully analyze the cost and benefits of expanding production to multiple factories. It should consider the economies of scale, as well as the additional costs associated with managing multiple factories. By doing so, the company can make an informed decision that will result in increased efficiency and profitability.

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you have read and studied the breakdown/analysis of four contracts (exclusive artist recording contract, songwriter/publishing company agreement, co-publisher/publisher agreement, personal management contract). which one was of the greatest importance to you? give three reasons

Answers

An arrangement with a publishing firm under which the composer allocates the publisher's whole share of all songs composed throughout the term of the agreement.

What is a songwriting contract?

A "staff-writing deal," which is basically a common word, is simply used to describe an exclusive songwriting arrangement. By entering into an exclusive songwriting agreement with the company, a songwriter is given the only authority to publish their music for the term of the deal.

What function does songwriting serve?

By writing songs, one may express themselves, let off steam, reflect on difficult events, and conquer challenges. You might utilize songwriting as a hobby or a kind of rehabilitation. For some people, it could even be relevant to their area of study or source of income.

A songwriting agreement is a legally binding document. It's a simple way to guarantee that everyone on the creative team is on the same page and avoid future issues. The most straightforward songwriting agreements provide a list of the writers who contributed to a certain project (song, album, score, etc.).

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Why is the release of GDP statistics less interesting to investors than the release of other economic indicators?
A.Because governments consistently alter their GDP measurement methods
B.Because the formula for GDP includes not only private investment but also other irrelevant factors
C.Because GDP is not official government data
D.Because GDP statistics are released well after other economic indicators

Answers

The release of GDP statistics less interesting to investors than the release of other economic indicators D.Because GDP statistics are released well after other economic indicators.

GDP numbers are typically published quarterly, although other economic indicators such as employment, the consumer price index, and retail sales are published more regularly, occasionally monthly.

As a result, investors are less interested in the announcement of GDP numbers because they have already been watching other economic indicators and have a solid picture of the status of the economy. When GDP numbers are released, the information may no longer be as valuable to investors in making investment decisions.

Furthermore, while GDP is a key measure of economic performance, it is not the only element considered by investors when making investment decisions.

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1. Suppose a company is interested in undertaking an investment that incurs an immediate cost (when t=0) of 10 Euros and no benefits. In the second year (t=2), the company incurs a cost of 2 Euros and benefits worth 13 Euros. Assuming a discount rate of 4%, what is the net present value (NPV) of the project? Would it be wise to invest in the project (yes or no)?

Answers

The net present value of the project is 0.51 Euros.

To calculate the net present value (NPV) of the project, we need to discount the future cash flows to their present value using the given discount rate of 4%.

The cash flow at t=0 is a cost of 10 Euros with no benefits, so its present value is -10.

The cash flow at t=2 is a cost of 2 Euros and benefits worth 13 Euros. To calculate the present value of this cash flow, we need to first calculate the net benefit, which is 13 - 2 = 11 Euros. Then, we can calculate the present value of this net benefit by dividing it by (1 + 0.04)^2 (since it occurs in the second year). This gives us a present value of approximately 10.51 Euros.

Therefore, the net present value of the project is -10 + 10.51 = 0.51 Euros.

Since the NPV is positive, it would be wise to invest in the project. However, we should also consider other factors such as the company's budget and overall financial goals before making a final decision.

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The market demand culve for labor O is determined by adding up the demand for labor by each firm at each wage, holding constant the other variables that affect the willingness of firms to hire workers. O is the same as the market demand curve for the product labor produces because it is a derived demand. O is perfectly inelastic because there is a finite number of workers in the market for labor. is determined by adding up the quantity of labor demanded by each firm at each wage, holding constant the other variables that affect the willingness of firms to hire workers

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The market demand curve for labor is determined by adding up the demand for labor by each firm at each wage.

The market demand curve for labor, denoted as O, is determined by adding up the demand for labor by each firm at each wage, while holding constant the other variables that affect the willingness of firms to hire workers.

This curve represents the amount of labor that employers are willing to hire at each wage rate, given the demand for their output.

Since labor is a derived demand, the market demand curve for labor is the same as the market demand curve for the product that labor produces.

This means that when demand for the output increases, the demand for labor also increases, and vice versa.

However, unlike the demand curve for the product, the demand for labor is affected by the wage rate.

The market demand curve for labor is typically perfectly inelastic in the short run because the number of workers available in the market is limited.

Therefore, if firms want to hire more workers, they have to offer higher wages to attract them.

In the long run, the market demand curve for labor may become more elastic as the supply of workers can adjust to changes in demand through factors such as immigration or education.

Overall, the market demand curve for labor plays a crucial role in determining wages and employment levels in the economy.

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an unexpected import restriction imposed on mangoes by the usda part 2 a. will reduce the price of mangoes in the united states. b. will increase the price of mangoes in the united states. c. will discourage american producers of mangoes. d. will reduce the price of mango juice in the united states.

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B. The USDA's surprise import limit on mangoes would push up the cost of mangoes in the country.

B. The unexpected import restriction imposed on mangoes by the USDA will increase the price of mangoes in the United States. This is because the restriction will limit the supply of mangoes available in the US market, leading to an increase in prices due to higher demand. The restriction may also discourage American producers of mangoes as they may find it difficult to compete with the restricted foreign imports. However, it is unlikely to have a direct impact on the price of mango juice in the United States as juice is often made from a variety of fruits and not solely from mangoes.

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T/F: the costs assigned to the land account include legal fees, survey fees, and expenditures for grading and clearing the land.

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The statement  the costs assigned to the land account include legal fees, survey fees, and expenditures for grading and clearing the land is generally true.

Legal fees may be incurred during the process of purchasing the land, such as fees for title searches or preparing deeds. Survey fees may be incurred to ensure accurate measurements and boundaries of the land. Expenditures for grading and clearing the land may include costs for removing trees, leveling the land, and preparing it for construction or other uses.

However, it's worth noting that the specific costs that can be assigned to the Land account may vary depending on the accounting principles being followed and the specific circumstances of the company's operations. In some cases, certain costs may be assigned to different accounts, such as the Buildings or Equipment accounts.

In summary, the costs assigned to the Land account generally include legal fees, survey fees, and expenditures for grading and clearing the land, but this may vary depending on the accounting principles and specific circumstances involved.

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Describe typical decision strategies used by consumers to make a choice in this product category. What model best predicts choice?
- product category is a ticket purchasing site (Stubhub, event brite etc)
Detailed response please

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Consumers typically use several decision strategies when making a choice in the ticket purchasing site product category. These strategies include habitual buying, brand loyalty, price sensitivity, and information search. The model that best predicts choice in this product category is the Theory of Reasoned Action.

Habitual buying refers to purchasing tickets from a preferred site or brand without considering alternatives. Brand loyalty is similar but involves a conscious decision to stick with a particular brand due to satisfaction with past experiences.

Price sensitivity involves searching for the best deal, comparing prices across multiple sites. Finally, information search involves researching various sites and reading reviews to make an informed decision.

This model suggests that consumers' attitudes and subjective norms influence their behavior. In the case of ticket purchasing sites, attitudes towards a particular brand or site, as well as the perceived opinions of others, can greatly impact decision making.

Additionally, perceived behavioral control, or the individual's belief in their ability to successfully use the site, is also an important factor.

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Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities.

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The given statement "Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities" is false because mortgage loans are not marketable securities.

Marketable securities are financial instruments that can be easily bought and sold on the market. Treasury bills and certificates of deposit are examples of marketable securities, but mortgage loans are not.

Mortgage loans are debt instruments that are used to finance real estate purchases, but they are not easily tradable on a secondary market. While mortgage-backed securities can be bought and sold on a secondary market, the underlying mortgage loans themselves are not marketable securities.

Therefore, the given statement is false because it includes an instrument that is not a marketable security.

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4. Consider the model that assumes tax revenue can be converted into public goods by the government (chapter 5, pp. 177-181). (a) In this model, what does a decrease in q mean? (Explain in words.) (2 points) (b) Illustrate the effect of a decrease in q on the optimal levels of consumption and government spending. Be sure to label all curves and axes, show the original equilibrium too and substitution effect, if there is one. (6 points) (c) Are these equilibria, before and after q decreases, Pareto optimal? Why or why not? (3 points) (d) In the real world, what kind of information would the government need to be able to find the equilibria labeled on your graph? Is it realistic for the government to have this kind of information? Why or why not? (3 points)

Answers

A decrease in q means a drop in efficiency in converting tax revenue into public goods. This leads to lower consumption and government spending levels. Obtaining information on the demand, supply and costs of public goods is crucial for finding the equilibria.

If the government can turn tax income into public goods, as is assumed in the model, then a decline in q indicates a decline in the government's efficiency in doing so. This results in a new equilibrium where consumption and government spending are both lower because the degree of public goods that the government can deliver is reduced.

Depending on the particular conditions and distributional impacts of the drop in q, these equilibria may or may not be Pareto optimum. To determine the equilibria, the government would want data on the supply, demand, costs, and variables influencing the efficiency of public goods. Although obtaining this data could be challenging, efforts can be taken to enhance data collection and openness.

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The correct question will be: What is the effect of a decrease in q in the model that assumes tax revenue can be converted into public goods, and what information would the government need to determine the equilibria?

28. J&J Enterprises wants to issue sixty 20-year, $1,000 zero-coupon bonds. If each bond is to yield 7%, how much will J&J receive (ignoring issuance costs) when the bonds are first sold? A) $11,212 B) $12,393 C) $15,505 D) $18,880 E) $20,000

Answers

If each bond is to yield 7%,  J&J will receive C) $15,505. when the bonds are first sold

To calculate the amount J&J will receive when the bonds are first sold, we need to use the formula for present value of a bond:

[tex]Present value = face value / (1 + yield)^years[/tex]

In this case, the face value is $1,000, the yield is 7%, and the years is 20. However, since these are zero-coupon bonds, there are no interest payments, so we don't need to worry about any annuity calculations.

[tex]Present value = $1,000 / (1 + 0.07)^20[/tex]
[tex]Present value = $1,000 / 3.869[/tex]
[tex]Present value = $258.36[/tex]

Now we can multiply this present value by the number of bonds being issued to get the total amount J&J will receive:

Total amount = $258.36 x 60
Total amount = $15,501.60

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Allegra is an antihistamine that is only available through prescription, but to create brand awareness, it is offering people who request information about the product a cushion to use at their favorite sporting event plus a coupon for $10 off their next purchase of the medication. This free cushion and coupon are examples of a. publicity b. advertising c. sales promotions d. personal selling

Answers

The free cushion and coupon offered by Allegra to people who request information about the product is an example of a sales promotion.

Sales promotions are marketing activities that are designed to increase sales in the short term by providing an incentive to consumers to purchase a product or service.

In this case, Allegra is offering a free cushion and a coupon for $10 off the next purchase of the medication to encourage people to try their product.


Sales promotions are an effective way to create brand awareness and generate sales quickly. They can also be used to introduce new products or to increase sales of existing products.

The cushion and coupon offered by Allegra are designed to create interest in the product and to encourage people to try it.

The free cushion is a tangible item that people can use at their favorite sporting event, which helps to create a positive association with the product.


Overall, the sales promotion offered by Allegra is an effective way to create brand awareness and increase sales of the medication.

By offering a free cushion and a coupon for $10 off the next purchase of the medication, Allegra is providing an incentive for people to try their product and to become repeat customers.

This is an example of a well-planned and executed sales promotion that is likely to generate positive results for the company.

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R&D expenditure is a more complete measure of innovation activity than it used to be, due, in part, to the growth of open innovation.
True or False?

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True. R&D expenditure has become a more complete measure of innovation activity due to the growth of open innovation, which allows for collaboration and knowledge sharing among organizations. This has led to a broader range of innovation activities beyond traditional R&D, including external partnerships and acquisitions, and can now be included in the measurement of innovation expenditure.

R&D expenditure refers to the amount of money a company or organization spends on activities that are aimed at discovering new knowledge, developing new products or services, or improving existing ones. R&D expenditures typically include costs associated with personnel, facilities, equipment, materials, and intellectual property. R&D expenditure is an important metric for measuring a company's investment in innovation and its ability to generate new revenue streams or improve operational efficiency. It is often used as an indicator of a company's long-term growth prospects, as R&D investments can lead to the development of new technologies, products, or services that can create competitive advantages or open up new markets.

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what documentation shows the income, expenses and difference between them for a company during a specific time period?

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The documentation that shows the income, expenses and the difference between them for a company during a specific time period is known as an Income Statement. This documentation is essential for both internal management and external parties, such as investors, creditors, and regulators.

An Income Statement is a critical financial document that provides a summary of a company's financial performance during a specific time period, such as a month, quarter, or year.

It includes detailed information about the company's income (revenues) generated from its operations, expenses incurred in generating that income, and the resulting net income (profit) or a net loss. The Income Statement is organized into three main sections:

1. Revenue: This section lists all sources of income for the company, such as sales, interest income, or investments.

2. Expenses: This section itemizes all costs incurred by the company during the reporting period, including costs of goods sold, operating expenses (such as rent, utilities, and salaries), and other expenses (such as taxes, interest, and depreciation).

3. Net Income or Net Loss: This is the difference between the total revenues and total expenses. If the revenues exceed the expenses, the company has a net income (profit). If the expenses are higher than the revenues, the company incurs a net loss.

By analyzing the Income Statement, stakeholders can assess the company's financial health, evaluate its performance, and make informed decisions regarding investments, lending, or other financial transactions.

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Bank West's Balance SheetAssetsCash $500Deposits at Bank of Canada $700Loans and Mortgages $19800Liabilities and CapitalDeposits $20000Capital $1000Bank West's actual reserve ratio will be _____ percent if it receives a new deposit of $1500.a.6.0b.7.5c.10.0d.12.6e.33.3

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Bank West's actual reserve ratio will be 12.6 (option d) percent if it receives a new deposit of $1500.

To calculate Bank West's reserve ratio,  divide the amount of reserves (Cash + Deposits at Bank of Canada) by the amount of deposits. The current amount of deposits is $20,000, and the current amount of reserves is $1,200 ($500 + $700).
If Bank West receives a new deposit of $1500, the new amount of deposits will be $21,500.

To calculate the new reserve ratio,  add the new deposit to the amount of reserves and divide by the new amount of deposits:
New reserves = $1,200 + $1,500 = $2,700
New reserve ratio = New reserves / New deposits = $2,700 / $21,500 = 0.1256
Multiplying this by 100 gives a reserve ratio of 12.56 percent, which is closest to option (d) 12.6.

Thus, the correct option is d.

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If, in decision 3, Gwen hires the first candidate she sees who meets the minimum requirements, without going through every candidate's file to see if anyone else is better, she is ________.

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If Gwen hires the first candidate she sees who meets the minimum requirements without going through every candidate's file to see if anyone else is better, she is demonstrating a biased decision-making process.

This bias is known as the "availability heuristic," which means that Gwen is making a decision based on the first piece of information that comes to mind, rather than taking the time to review all available options.

By not considering all candidates, Gwen may miss out on hiring someone who is a better fit for the position and who may bring more value to the company. This decision may also create an unfair advantage for the candidate who was hired based solely on being the first to meet the minimum requirements.

In order to avoid this type of bias, Gwen should take the time to review all candidates' files and consider each applicant's skills, experience, and qualifications. This will ensure that the best candidate is hired for the position and that the company benefits from a diverse and talented workforce.

Overall, it is important for Gwen to recognize the potential for bias in her decision-making process and take steps to eliminate it in order to make the best hiring decisions for the company.

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What economic considerations ( ads, promoting, promotions,soundtracks) and market research went into consideration in themovie HIGH NOON

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In the production of the movie High Noon, various economic considerations and market research played a crucial role in its success. Key considerations included advertising, promotions, and soundtracks to create a compelling and marketable film.

For advertising and promoting, the producers considered the target audience and the most effective channels to reach them. This could have involved using print media, radio, and television for ads, as well as collaborating with other entities for cross-promotions. They also might have analyzed competitor films to identify the best marketing strategies and opportunities.

Additionally, market research likely played a significant role in the development of High Noon. This would have included understanding the preferences and tastes of the target audience, as well as any ongoing trends in the movie industry. This information would have helped in making informed decisions about casting, production, and even the choice of soundtrack to enhance the overall appeal of the film.

Overall, economic considerations and market research were essential components in the success of High Noon, ensuring it resonated with audiences and stood out in the competitive movie market.

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What monetary policy option results in a decrease in output and a simultaneous increase in interest rates?Select one:a. An increase in government spendingb. A tax rate increase by the governmentc. Selling of bonds through open-market operations by the South African Reserve Bankd. An increase in money supply by the South African Reserve Bank

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The monetary policy option that results in a decrease in output and a simultaneous increase in interest rates is selling of bonds through open-market operations by the South African Reserve Bank (option c).

When the central bank sells bonds, it decreases the money supply in the economy, leading to a decrease in output as businesses and consumers have less money to spend. However, the decrease in money supply also leads to an increase in interest rates as lenders demand higher rates to lend money due to the reduced availability of funds. When the central bank sells bonds through open-market operations, it reduces the money supply in the economy, leading to an increase in interest rates. Higher interest rates tend to reduce investment and consumption, which, in turn, can lead to a decrease in output or economic growth.

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OneChicago has just introduced a single-stock futures contract on Brandex stock, a company that currently pays no dividends. Each contract calls for delivery of 1,800 shares of stock in 1 year. The T-bill rate is 4% per year.
a. If Brandex stock now sells at $130 per share, what should the futures price be?
b. If the Brandex price drops by 1%, what will be the new futures price and the change in the investor’s margin account?
c. If the margin on the contract is $11,400, what is the percentage return on the investor’s position?

Answers

a) Futures price should be $135.20.

b) Change in the investor's margin account is $2,340.

c) Percentage return on the investor's position is 20.53%.

What method is used to calculate each part of the question?

a. The futures price (F) can be calculated using the cost of carry model as follows:

[tex]F = S * e^{r * t[/tex]

Where:

S = current spot price of Brandex stock = $130

r = T-bill rate = 4%

t = time to delivery = 1 year

Plugging in the values, we get:

[tex]F = $130 * e^{0.04 * 1} = $135.20[/tex]

Therefore, the futures price should be $135.20.

b. If the Brandex price drops by 1% to $128.70, the new futures price (F') can be calculated using the same cost of carry model as follows:

[tex]F' = S' * e^{r * t[/tex]

Where:

S' = new spot price of Brandex stock = $128.70

r = T-bill rate = 4%

t = time to delivery = 1 year

Plugging in the values, we get:

[tex]F' = $128.70 * e^{0.04 * 1} = $133.91[/tex]

The change in the investor's margin account can be calculated as follows:

Change in margin account = (F - F') * number of contracts * multiplier

Where:

F = original futures price = $135.20

F' = new futures price = $133.91

Number of contracts = 1

Multiplier = 1,800 (since each contract calls for delivery of 1,800 shares of stock)

Plugging in the values, we get:

Change in margin account = ($135.20 - $133.91) * 1 * 1,800 = $2,340

Therefore, the change in the investor's margin account is $2,340.

c. The percentage return on the investor's position can be calculated as follows:

Percentage return = (profit or loss / initial margin) * 100%

In this case, the profit or loss is the change in the investor's margin account, which is $2,340, and the initial margin is $11,400. Plugging in the values, we get:

Percentage return = ($2,340 / $11,400) * 100% = 20.53%

Therefore, the percentage return on the investor's position is 20.53%.

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Think about where you stand on the issue of economic regulation. 1. Discuss one positive aspect of government regulation and one negative aspect. 2. Discuss one positive aspect of industry self-regulation and one negative aspect. 3. What do you think would be the most cost-effective method?

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1. Positive aspect of government regulation protects consumers and the negative aspect is Overregulation, 2. Positive aspect of industry self-regulation allows industries and the negative aspect is lead to conflicts 3. The most cost-effective method would depend on the specific industry and its unique needs.

1. Government Regulation:

- Positive aspect: Government regulation can help protect consumers by ensuring that businesses adhere to safety and quality standards, preventing exploitation and promoting fair competition.

- Negative aspect: Overregulation can sometimes stifle innovation and create a bureaucratic burden on businesses, leading to increased costs and reduced economic growth.

2. Industry Self-Regulation:

- Positive aspect: Self-regulation allows industries to develop tailored, flexible guidelines that can adapt quickly to changing market conditions and technological advancements.

- Negative aspect: Industry self-regulation may lead to conflicts of interest, as businesses may prioritize their profits over consumer interests, resulting in inadequate protection for consumers.

3. The most cost-effective method would depend on the specific industry and its unique needs. In some cases, a combination of government oversight and industry self-regulation might provide the best balance between consumer protection, market efficiency, and innovation, ensuring that the benefits of economic regulation are achieved without imposing unnecessary costs on businesses or consumers.

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