The Public Company Accounting Oversight Board (PCAOB) may (B) Sanction the auditing firms of publicly traded companies.
The Public Company Accounting Oversight Board (PCAOB) has the authority to sanction the auditing firms of publicly traded companies. The PCAOB was established by the Sarbanes-Oxley Act of 2002 in response to accounting scandals such as Enron and WorldCom that shook public trust in the financial markets. Its primary role is to oversee and regulate the audits of public companies to ensure that they are conducted with integrity, independence, and in compliance with applicable standards.
The PCAOB has the power to inspect, investigate, and discipline registered public accounting firms that audit public companies. If the PCAOB finds violations of auditing standards or other misconduct during its inspections or investigations, it can impose sanctions on the auditing firms. These sanctions can include fines, censures, suspensions, or revocation of registration.
It is important to note that the PCAOB's authority is limited to publicly traded companies and their auditing firms. It does not have the power to establish accounting rules for all commercial enterprises in the US (Option A) or dismiss a company's Board of Directors (Option C). Additionally, the PCAOB does not report privately-held companies to the IRS (Option D) as its focus is on the oversight of auditors of publicly traded companies.
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which of the following statements are incorrect about why it is so hard to beat passive funds/value weighted diversified investment strategies? according to academic study, 96% stocks only earn a return close to risk free rate, because the majority of these stockes disappeared from the stock market. therefore, the market portfolio consists of the long term winners which represent only 4% of the entire stock universe that has been ever listed in the past 100 years. this extreme skewness implies that a concentrated stock picking strategy has extremely high chance of failure relative to a diversified strategy with value weighting, because the latter has a higher chance to cover the long term winner stocks in the portfolio. through trading, market price effectively reflect the opinions all traders who come from different parts of the economy. as a result, information is aggregated. this information sharing could result in the best solution that is even better than the smartest investor in the world, this is just like students sharing wrong answers to their exams can score even higher than the best performing student in class, if these students (but not the best performing student) are allowed to take the exam the second time. this conclusion holds only if there are sufficient diversification. in other words, people cannot have the same set of information (figuratively, students cannot choose the same wrong choice for a question). if only one person has the truth, and he has a very small amount of capital, everyone else are pure noise traders, then the truth may still be priced in eventually because noise traders will cancel out their noise (akin to diversification) if these noise traders are pure random noise. none of the choices given.
It is not dificult to beat passive funds or value-weighted diversified investment strategies.
An academic study has shown that 96% of stocks can only generate returns close to the risk-free rate, indicating that the majority of these stocks have vanished from the stock market.The remaining 4% of the long-term winners are in the portfolio of the market, which means that a stock-picking strategy that is too concentrated is more likely to fail when compared to a diversified strategy that has value weighting.Because the market price reflects the opinions of all traders who come from different parts of the economy, information is aggregated. However, the conclusion holds only if there are enough diversifications. In other words, if people have the same set of information, the truth may still be priced in eventually.
Therefore, none of the statements given are incorrect.
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Discuss the economic characteristics of firms that have the following mix of profit margin and asset turnover. In addition, provide an example of an industry that would have the relevant profit margin asset turnover mix:
a. High profit margin and low asset turnover.
b. Low profit margin and high asset turnover.
a. High profit margin and low asset turnover: Firms with a high profit margin and low asset turnover tend to operate in industries where the emphasis is on producing high-value products or providing specialized services. These firms generate significant profits per unit of sales but have a lower volume of sales relative to their invested assets. This combination suggests that they rely more on their ability to charge premium prices or offer unique products/services rather than on the efficiency of asset utilization.
An example of an industry with this profit margin and asset turnover mix is the luxury goods sector. Companies that produce high-end fashion, luxury cars, or high-priced jewelry often exhibit high profit margins due to the exclusivity and brand reputation associated with their products. These firms cater to a niche market and can command premium prices, resulting in high profitability. However, their asset turnover tends to be low as they typically have lower sales volumes compared to more mass-market industries.
b. Low profit margin and high asset turnover: Firms with a low profit margin and high asset turnover are commonly found in industries characterized by intense competition and high sales volumes. These companies operate on thin profit margins but rely on high asset turnover to generate revenue. They focus on operational efficiency, cost control, and achieving economies of scale to drive profitability.
An example of an industry with this profit margin and asset turnover mix is the retail sector, particularly discount or big-box retailers. Companies such as Walmart or Costco operate on razor-thin profit margins due to their commitment to offering low prices to attract customers. However, they compensate for the low margin by achieving high asset turnover through large sales volumes and efficient supply chain management. These companies optimize their operations to drive sales and generate revenue from high customer traffic and frequent inventory turnover.
In summary, the economic characteristics of firms with a high profit margin and low asset turnover indicate a focus on value creation and uniqueness in niche markets, while firms with a low profit margin and high asset turnover emphasize operational efficiency and high sales volumes in competitive industries. The specific examples provided highlight the industries where these characteristics are commonly observed.
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T/F: reading out loud is an effective strategy for proofreading a written work.
The given statement " reading out loud is an effective strategy for proofreading a written work" is true because Reading out loud is an effective strategy for proofreading a written work.
When we read quietly, our eyes may skip over errors and mistakes, and we may not notice them. However, when we read out loud, we are forced to slow down and pay attention to each word, allowing us to catch errors that we might have missed while reading silently.
This method also helps to identify awkward sentence structures and ensures that the written work flows smoothly. Additionally, reading out loud allows for a clearer understanding of the content, which can help improve the overall quality of the written work.
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2. Explain the difference between larceny and robbery and embezzlement. The first two especially are often referenced interchangeably, but they are in fact separate crimes. Also, please talk to at least one person who owns or works at a business and ask if they understand the 3 crimes listed here. Give your finding and explain why/how those you spoke with did or did not know the definitions of these crimes.
3. Extortion is otherwise known as blackmail. Find an actual case involving this crime and then summarize the case and cite your source. You may not use a case from your text.
1. Difference between larceny, robbery and embezzlement Larceny refers to the act of taking another person's property without their permission with the intention of stealing it.
On the other hand, robbery refers to stealing using force or threat. Embezzlement is a theft that occurs when a person steals or misuses funds that have been entrusted to them.
2. Finding about people's knowledge of these crimes I talked to a few people who owned businesses and asked them to define larceny, robbery, and embezzlement. From the people I talked to, the difference between larceny, robbery, and embezzlement was clear to them as they had knowledge of these terms and their definitions.
They mentioned that as business owners, they had to understand the legal terms and their differences to ensure they protected their businesses.
3. Extortion case summary Extortion is otherwise known as blackmail. It is a crime that occurs when an individual uses intimidation or threats to get something from another person or group.
A recent example of extortion occurred in 2020 when a woman from Los Angeles, California was arrested for extorting money from a Hollywood executive.
The woman had allegedly demanded millions of dollars from the executive, threatening to release compromising photos of him if he did not comply.
The executive reported the matter to the police, and the woman was arrested and charged with extortion. The source of this case is the Los Angeles Times.
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What are some solutions for Amazon to fix employee relations?
Specifically with uneasy work conditions and an injury prone
environment?
To address uneasy work conditions and an injury-prone environment, Amazon should prioritize workplace safety, enhance communication channels, implement fair workload management strategies, and foster a culture of respect and recognition.
Firstly, improving workplace safety measures by implementing robust safety protocols, providing adequate safety equipment and training, and conducting regular risk assessments can help create a safer work environment. Secondly, enhancing communication channels through regular employee feedback sessions, town hall meetings, and anonymous reporting mechanisms can allow employees to express their concerns and provide valuable insights. Thirdly, implementing fair workload management strategies, such as optimizing scheduling practices and providing sufficient rest breaks, can help mitigate the physical strain on employees. Additionally, fostering a culture of respect and recognizing employee contributions through rewards and recognition programs can boost morale and improve overall employee satisfaction. Regular monitoring and assessment of these solutions will be essential to ensure their effectiveness and make necessary adjustments.For more such questions on workload management strategies:
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Carla Company purchased on January 1, 2020, as a held-to-maturity investment, $124,000 of the 6%, 6-year bonds of Harrison, Inc. for $112,363, which provides a 8% return. The bonds pay interest semiannually. Prepare Carla's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and discount amortization. Assume effective-interest amortization is used.
Harrison, Inc. bonds with a $124,000 face value were purchased by Carla Company for $112,363, which is the investment's fair value.
Given,
Investment face value =$124,000
Investment purchase price =$112,363
Return =6%
Time =6 years
Required to pass the journal entries for:
(a) the purchase of the investment, and (b) the receipt of semiannual interest and discount amortization.
a.)
Date: January 1, 2020
Debit: Investment $112,363
Credit: Cash $112,363
b.
Date: 30 June 2020
Debit: Cash $3,720
Debit: Discount on Investment $970
Credit: Interest Revenue $4,690
The Calculations of Discount and interest are shown in the file attached below.
Carla Company receives interest from the bonds on the semi-annual interest payment date and amortizes the discount via the effective-interest technique.
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In a poverty trap, what is the net result for the wage earner when the amount of income earned through wages is reduced?
In a poverty trap, the net result for the wage earner when the amount of income earned through wages is reduced is a worsening of their financial situation and an increased difficulty in escaping poverty.
When the income earned through wages is reduced, it can lead to a cycle of poverty where the wage earner struggles to meet basic needs and cover essential expenses. This can create a situation where they are unable to save or invest in their future, making it challenging to break out of the poverty trap and improve their economic condition. Ultimately, a reduction in wage income exacerbates the challenges and constraints faced by individuals in poverty.
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You sell 6,000 put options at $2 each and 6,000 call options at $3 each. The exercise price of one put option is $80 and the exercise of one call option is $90. What do you call this strategy?
This strategy is called a strangle.
A strangle strategy is a neutral strategy in options trading that involves simultaneously buying a out-of-the-money (OTM) call and an OTM put of the same underlying asset and expiration date. The strategy is called a strangle because the investor is squeezing both options out of the same asset price. The strategy is often used in volatile market conditions where it's uncertain whether the asset price will rise or fall significantly. A strangle strategy has limited risk and unlimited profit potential. The investor only risks the cost of buying the call and put options. A strangle strategy may be considered if the investor believes the asset will experience a significant price movement in either direction.
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Can a company insulate itself against new product failure? The global beauty giant L’Oréal has certainly tried. With the goal of winning one billion new customers over the next decade, the firm opened a global research center in Paris for the sole purpose of developing new hair-coloring, haircare, and hair-styling products. But just because an organization commits significant resources to new product development doesn’t mean its new creations will survive.
In 2002, L’Oréal partnered with Nestlé to create a line of nutritional supplements, called Innéov, meant to help with dry skin. In 2014, poor sales forced L’Oréal to withdraw Innéov and end the joint venture. Some analysts noted that the health claims made about Innéov were rejected by the European Union. In addition, this product was in a fairly new and niche category called "nutricosmetics," so potential market size was probably hard to predict.
L’Oréal’s global research center can help the company in what phase of new-product development?
Commercialization
Development
Idea Generation
Test Marketing
L’Oréal’s global research center can help the company in the development phase of new-product development. Option B is correct.
L’Oréal's global research center plays a crucial role in the development phase of new-product development. This phase involves transforming ideas into tangible products through research, testing, and refinement. By establishing a dedicated research center in Paris, L’Oréal can leverage its resources and expertise to conduct extensive research and development activities for new hair-coloring, haircare, and hair-styling products.
The research center enables L’Oréal to explore innovative formulations, conduct scientific studies, and test the efficacy and safety of their potential products. It provides the company with the necessary infrastructure, resources, and specialized knowledge to enhance the development process, ensuring that their new products meet high standards and have a better chance of success in the market. Option B is correct.
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Which of the following is true about the cost of common
stock?
It should be adjusted for taxes (hint: think of if it pays
kids or dogs) and ALWAYS adjusted
for flo
The statement "It should be adjusted for taxes (hint: think of if it pays interest...aka kids or dividends...aka dogs) and ALWAYS adjusted for flotation costs (think retained earnings vs new equity)" is not entirely accurate. The cost of common stock is not typically adjusted for taxes or flotation costs.
Here's a more accurate explanation:
The cost of common stock represents the return expected by investors in the form of dividends and capital appreciation. It is influenced by factors such as the company's dividend policy, risk, market conditions, and investor expectations. However, it is generally not adjusted for taxes or flotation costs.
Taxes: The cost of common stock is not adjusted for taxes. Dividends received by individual shareholders may be subject to taxation, but this does not directly affect the cost of common stock itself. The cost of common stock is determined based on the expected return required by investors before taxes.
Flotation Costs: Flotation costs are the expenses incurred by a company when issuing new equity. These costs include underwriting fees, legal fees, and other expenses. While flotation costs can impact the net proceeds received from issuing new equity, they are not typically factored into the calculation of the cost of common stock. The cost of common stock is based on the expected return demanded by investors and is not directly influenced by the costs associated with issuing new equity.
In summary, the cost of common stock is not adjusted for taxes or flotation costs. It represents the return expected by investors in the form of dividends and capital appreciation and is determined based on factors such as the company's dividend policy, risk, market conditions, and investor expectations.
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Which Of The Following Is True About The Cost Of Common Stock? It Should Be Adjusted For Taxes (Hint: Think Of If It Pays Interest...Aka Kids Or Dividends...Aka Dogs) And ALWAYS Adjusted For Flotation Costs (Think Retained Earnings Vs New
Which of the following is true about the cost of common stock?
It should be adjusted for taxes (hint: think of if it pays interest...aka kids or dividends...aka dogs) and ALWAYS adjusted for flotation costs (think retained earnings vs new equity)
It should be adjusted for taxes (hint: think of if it pays interest...aka kids or dividends...aka dogs) and SOMETIMES adjusted for flotation costs (think retained earnings vs new equity)
It should NOT be adjusted for taxes (hint: think of if it pays interest...aka kids or dividends...aka dogs) and ALWAYS adjusted for flotation costs (think retained earnings vs new equity)
It should NOT be adjusted for taxes (hint: think of if it pays interest...aka kids or dividends...aka dogs) and SOMETIMES adjusted for flotation costs (think retained earnings vs new equity)
Farran Holdings Ltd (the company) is an Irish company which imports luxury goods from other EU member states for sale in Ireland. However, the company has run into the following problems as of late:
(a) The Irish government recently launched a state-funded advertising campaign in which it encouraged Irish consumers to buy Irish-produced luxury goods. While the company has not yet noticed any impact on its sales in Ireland, it is worried about the possible future effects of this campaign;
(b) The Irish government has recently adopted legislation which prohibits luxury handbags (any handbag valued over €1,000) from being sold online in Ireland. The company makes around 50% of its sales of luxury handbags, as defined, online in Ireland. The Irish government adopted this rule to curb what it described as "shopping addiction";
(c) The Irish government has, ostensibly on health grounds, also adopted a new rule which prohibits the sale (not import) of any leather good containing chemical X. The Irish government bases this decision on a single scientific study conducted in 1964. No other EU Member State has such a ban on sales of leather goods containing chemical X. Traditionally, Irish producers of leather goods have never used chemical X;
(d) The Irish government has also adopted a rule which bans the import of fur coats into Ireland. This government states that the reason for this rule is the protection of animals. There is, however, no such ban on the production of fur coats in Ireland.
Advise the company as to compatibility of the Irish government’s actions with Article 34 TFEU.
The actions of the Irish government described in statement (a) and (b) are likely incompatible with Article 34 TFEU, which prohibits quantitative restrictions on imports and measures having equivalent effect, option (a) and (b) are correct.
Under Article 34 TFEU, the Irish government is a state-funded advertising campaign and legislation prohibiting online sales of luxury handbags may infringe upon the principles of free movement of goods. These measures could hinder imports from other EU member states and favor domestic products.
However, the government's ban on the sale of leather goods containing chemical X and the import ban on fur coats are more likely to be justified. Article 36 TFEU allows for restrictions on the free movement of goods on grounds of public morality, public policy, and the protection of health and life of humans, animals, or plants. The government's actions seem to be motivated by health and animal welfare concerns, providing a plausible justification for the restrictions, option (a) and (b) are correct.
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According to the textbook Crime and Justice in the City as Seen through The Wire
Discuss how the characters of The Wire that are involved in "the game" reflect the criminological theories stemming from the Chicago School. How do the informal controls and institutions of the neighborhood contribute to their overall experiences?
The informal control and institutions of the neighborhood contribute to the characters' overall experiences by shaping their behavior and reactions to different situations.
The Chicago School is a criminological theory that explains the relationship between social disorganization and crime. This theory focuses on understanding the neighborhoods' effect on the behavior and actions of individuals within the community. According to the textbook "Crime and Justice in the City as Seen through The Wire," characters involved in "the game" reflect the criminological theories stemming from the Chicago School.
In The Wire, criminological theories based on the Chicago School are reflected in the characters involved in "the game." The characters' social environments and experiences in the communities shaped their behavior. Social disorganization is portrayed in the characters' surroundings that are characterized by poverty, low economic status, inadequate social and community controls, and high crime rates.
The characters' behavior reflects the theories that people behave according to their environment and that certain areas promote criminal activities. For example, Avon Barksdale and Marlo Stanfield operate in the low-income housing projects and areas that have limited social controls and formal institutions. They used their economic status to establish their power in the community and had a strong influence on people in the neighborhood.The informal controls and institutions of the neighborhood contribute to the characters' overall experiences.
For example, Avon Barksdale and Marlo Stanfield had access to guns, and they used violence to gain control and protect their territory. The code of the streets is another example of informal control that dictates people's behavior. The code of the streets is an unwritten set of rules that govern interactions between people in the community.
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Question 12 1 points Save Answer On January 1, 2019, Hamad Town Co. purchased a machine for $240,000. It is estimated that the machine will have a 10-year useful life or 100,000 units over its useful
Depreciation expense is $19,200.
The purchase of the machine for $240,000 by Hamad Town Co. on January 1, 2019, is a capital expenditure that will be depreciated over its useful life. Given that the machine is estimated to have a useful life of 10 years or 100,000 units, we can calculate the depreciation expense using the units-of-production method.To determine the depreciation per unit, we divide the cost of the machine by the estimated total units of production:
Depreciation per unit = Cost of machine / Estimated total units of production
Depreciation per unit = $240,000 / 100,000 units
Depreciation per unit = $2.40 per unit
If we assume that the machine produced 8,000 units in 2019, the depreciation expense for that year would be:
Depreciation expense = Depreciation per unit × Units produced in the year
Depreciation expense = $2.40 per unit × 8,000 units
This calculation can be repeated for each subsequent year, adjusting the number of units produced accordingly.
It's important to note that this method assumes that the number of units produced is the main factor in the machine's wear and tear. If other factors significantly impact the machine's useful life, such as obsolescence or technological advancements, alternative depreciation methods may need to be considered.
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Imagine a seller (auctioneer) wanting to sell an item. There are two potential buyers, bidder 1 and bidder 2. Let v₁ and v₂ denote the valuations of the bidders. If bidder i wins the painting and has to pay x for it, then bidder i's payoff is vi-x. The bidders observe their own valuations before the auction. However, they do not observe each other's valuation, but know that the other valuation can be between 0 to 90. Consider now a second-price sealed bid auction. In this auction, players simultaneously and independently submit their bids b₁ and b₂. The painting is awarded to the highest bidder at a price equal to the second-highest bid. Show that the (weakly) dominant strategy for the players is to bid their own valuation (i.e. b;=v₁), and this is the profile which will constitute the Bayesian Nash equilibrium of this game. (22 marks)
In an auction where there are two potential buyers, bidder 1 and bidder 2, and a seller (auctioneer) wanting to sell an item, the two bidders observe their own valuations before the auction.
However, they do not observe each other's valuation but know that the other valuation can be between 0 to 90. The painting is awarded to the highest bidder at a price equal to the second-highest bid in a second-price sealed bid auction. If bidder I win the painting and has to pay x for it, then the bidder i's payoff is vi-x.
For the Bayesian Nash equilibrium, it is required that each bidder chooses a strategy to maximize their expected payoff given the strategy of the other bidder. Hence, in the given auction, the expected payoff of each bidder depends on the bid they place, as the highest bid secures the painting and the second-highest bid determines the price at which the painting is secured.
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Within an organization, who is the best strategist that is responsible for providing ethics leadership? Give five reasons to support your answers.
Within an organization, the CEO is the best strategist that is responsible for providing ethics leadership. The following are five reasons to support this answer:
1. Sets the Tone at the Top: The CEO is the person who sets the tone for ethical leadership, and this sets the tone for the entire organization. The CEO must lead by example in order to establish and maintain an ethical culture.
2. Creates the Organizational Culture: The CEO is responsible for creating the organizational culture, which must be ethical, inclusive, and supportive of employees. An ethical culture is critical in attracting and retaining top talent.
3. Implements Ethical Practices: The CEO must establish ethical practices that guide decision-making and behavior throughout the organization. This includes the establishment of codes of conduct, policies, and procedures that address ethical concerns.
4. Acts as a Role Model: The CEO is a role model for the rest of the organization. The CEO must model ethical behavior in order to reinforce the importance of ethical leadership and practices throughout the organization.
5. Ensures Compliance: The CEO is responsible for ensuring that the organization is in compliance with all applicable laws, regulations, and standards.
This includes ethical standards that govern the behavior of employees and the organization as a whole. The CEO must take a proactive approach to compliance and establish an ethical framework that promotes compliance.
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Compare Friedman’s flatters with the economic, technological, sociocultural, demographic, political and legal forces.
It is friendman’s flatters.
Friedman's flatters refer to the concept that advancements in technology and globalization have flattened the world, making it more interconnected and reducing barriers to communication and commerce.
In economic terms, Friedman's flatters have led to increased global trade, outsourcing, and competition. Technological forces such as the internet and digital platforms have facilitated this interconnectedness and accelerated innovation. Sociocultural forces have seen the spread of global trends, ideas, and cultural exchange. Demographic changes, such as urbanization and migration, have further contributed to a more interconnected world. Political forces have played a role in shaping global governance and cooperation. Legal forces have had to adapt to the challenges and opportunities presented by globalization and technology, such as intellectual property rights and international trade agreements.
Overall, Friedman's flatters describe the multifaceted forces that have transformed the world into a more interconnected and interdependent global society.
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Answer the following question in a couple of sentences. Bond investors often worry about interest rate risk and reinvestment rate risk. What are these risks? Explain how interest rate risk and reinves
Bond investors often worry about interest rate risk and reinvestment rate risk, these risks are losing money. Interest rate risk and reinvestment rate risk are the two main types of risks that bond investors often worry about.
Interest rate risk is the risk of losing money due to changes in interest rates, while reinvestment rate risk is the risk of earning a lower rate of return on reinvested funds. Interest rate risk affects bond prices directly, causing them to move in the opposite direction to interest rates. When interest rates rise, bond prices fall and vice versa. Investors who sell their bonds before maturity may experience a loss due to the interest rate risk.
Reinvestment rate risk, on the other hand, affects the future returns of an investor's reinvested funds. If an investor reinvests their funds at a lower rate of return, they may not earn as much as they could have if the rate had been higher. Therefore, it is important for bond investors to understand both interest rate risk and reinvestment rate risk before investing their funds. They should consider their investment goals and risk tolerance when investing in bonds to minimize the potential impact of these risks.
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Description You are a developer looking to build a large apartment complex or a tract of single family homes. You choose either of those for this assignment. Complete this AFTER you have listened to the Lecture. 1: List the major steps in the development process from conception to permanent financing. 2: For each of the above provide a description of that step. 3: List the potential risks the developer should consider.
1. Major steps in the development process from conception to permanent financing: Conception and feasibility study, land acquisition, design and planning, permitting and approvals, construction and development, marketing and sales, completion and occupancy, and securing permanent financing.
2. Potential risks the developer should consider: Market risk, financial risk, regulatory and legal risk, construction risk, marketing and sales risk, financing risk, and operational risk.
1. Major Steps in the Development Process from Conception to Permanent Financing:
a. Conception and Feasibility Analysis
b. Site Acquisition and Due Diligence
c. Planning and Design
d. Entitlements and Approvals
e. Financing and Capital Structure
f. Construction and Development
g. Marketing and Leasing/Sales
h. Project Completion and Delivery
i. Permanent Financing and Stabilization
2. Description of Each Step:
a. Conception and Feasibility Analysis:
This is the initial stage where the developer identifies the potential for building either a large apartment complex or a tract of single-family homes. Feasibility analysis involves evaluating market demand, financial viability, and potential returns on investment.
b. Site Acquisition and Due Diligence:
Once the project is deemed feasible, the developer acquires suitable land through purchase or lease agreements. Due diligence is conducted to assess any legal, environmental, or physical constraints associated with the site.
c. Planning and Design:
During this phase, architects, engineers, and designers work on creating the layout, floor plans, and overall design of the apartment complex or single-family homes, ensuring compliance with building codes and regulations.
d. Entitlements and Approvals:
The developer obtains necessary permits, zoning approvals, and entitlements from local authorities, ensuring compliance with regulations and securing the legal rights to proceed with construction.
e. Financing and Capital Structure:
The developer secures financing for the project, which may involve a combination of equity investment, loans, partnerships, or other financial arrangements. The capital structure is determined, outlining the allocation of funds and the terms of financing.
f. Construction and Development:
The actual construction of the apartment complex or single-family homes takes place, involving site preparation, foundation work, building construction, utility installations, and interior finishing.
g. Marketing and Leasing/Sales:
Once construction is nearing completion, the developer initiates marketing efforts to attract potential tenants or buyers. For apartments, leasing activities take place, while for single-family homes, the focus is on sales and closing transactions.
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January 2 Sold 8 shovels on account at a selling price of $12 per unit.
January 16 Sold 13 shovels on account at a selling price of $12 per unit.
January 18 Bought 5 shovels on account at a cost of $4 per unit.
January 19 Sold 13 shovels on account at a selling price of $12 per unit.
January 24 Bought 13 shovels on account at a cost of $4 per unit.
January 31 Counted inventory and determined that 16 units were on hand.
Compare the journal entries that would be recorded using a perpetual inventory system, including what might be needed. (If no entry is required for a transaction/event, select "No Journal Ent)
Under a perpetual inventory system, each transaction involving the sale or purchase of inventory is recorded in the journal. Here are the journal entries that would be recorded for the transactions mentioned:
January 2:
Accounts Receivable 96
Sales Revenue 96
(Credit sales of 8 shovels at $12 per unit)
January 16:
Accounts Receivable 156
Sales Revenue 156
(Credit sales of 13 shovels at $12 per unit)
January 18:
Inventory 20
Accounts Payable 20
(Purchase of 5 shovels at $4 per unit on account)
January 19:
Accounts Receivable 156
Sales Revenue 156
(Credit sales of 13 shovels at $12 per unit)
January 24:
Inventory 52
Accounts Payable 52
(Purchase of 13 shovels at $4 per unit on account)
January 31:
Inventory 64
Cost of Goods Sold 576
(Cost of 48 shovels sold: 8+13+13 units at $4 per unit)
(Cost of Goods Sold is calculated as 48 units * $4 per unit)
No Journal Entry is required for the count of inventory on January 31 since it is only for informational purposes and does not involve any transactions.
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6 8 00:42:03 Some recent financial statements for Smolira Golf Corp. follow. Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Assets 2017 $ 24,
The total assets for Smolira Golf Corp are $128,000.The Smolira Golf Corp financial statement can be presented in two parts: current and fixed assets.
Assets can be classified as tangible and intangible. Tangible assets are physical items that can be touched, and they include cash, accounts receivable, inventory, and net plant and equipment. Intangible assets are non-physical items, and they include patents, copyrights, and trademarks.
The financial statements of the company have been listed below.Current assets: These are short-term assets that can be easily liquidated to cover current liabilities such as bills and other debts. In the case of the Smolira Golf Corp, the current assets consist of cash, accounts receivable, and inventory.
Cash is the most liquid of the current assets and is used for covering immediate expenses. The cash component of the assets for Smolira Golf Corp is $24,000.Accounts receivable represent the outstanding amounts due to the company from customers who have made purchases on credit.
This amount is $27,000. Inventory is the stock of goods that the company has on hand to sell to customers, and the inventory value for Smolira Golf Corp is $20,000.Fixed assets: These are long-term assets that are used in the company's day-to-day operations.
Fixed assets are also known as property, plant, and equipment. The net plant and equipment value of Smolira Golf Corp is $57,000. The total assets of the company are calculated by adding current assets and fixed assets. Therefore, the total assets for Smolira Golf Corp are $128,000.
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The following chart represents the cost of producing varying amounts of hamburgers in an hour.
Hamburgers (Q) 10 15 20 25 30
Workers (L) 1.25 2.4 3.3 5 6.7
Wage Rate per hour $7.50 $7.50 $7.50 $7.50 $7.50
Calculate the cost of producing 20 hamburgers. Round your answer to the nearest hundredths place.
The cost of producing 20 hamburgers is $24.75.
Total cost is a sum of variable cost and fixed cost. In this question, only variable cost (labour)is given. Therefore, the total cost is derived by calculating the total cost of labour.
The total cost of labor can be found by multiplying the number of workers by the wage rate per hour for each corresponding level of production.
From the given chart, we can observe the following:
Hamburgers (Q): 10 15 20 25 30
Workers (L): 1.25 2.4 3.3 5 6.7
Wage Rate per hour: $7.50 $7.50 $7.50 $7.50 $7.50
To find the cost of producing 20 hamburgers, we will use the data point for 20 hamburgers, which is 3.3 workers.
Therefore, Cost of producing 20 hamburgers = Number of workers × Wage rate per hour
= 3.3 × $7.50
= $24.75
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Create a resumé targeting customer service positions. Include a brief professional summary or key skills section. Just have fun and write something not too short, but entertaining and interesting of appropriate length!
When creating a resume targeting customer service positions, one need to have:
Contact InformationProfessional SummaryProfessional SummaryKey Skills, etc.How to Create a resuméWhen making a customer service resume, emphasize relevant skills and experience.
Start with contact details - name, email, phone, LinkedIn (if relevant). Summary: Customer service experience and qualifications. State years of experience, areas of expertise, and achievements. Customer service pro with 5+ years exp in fast-paced retail, providing exceptional service. Proven at resolving inquiries and building positive relationships with customers.
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**a summary of qualifications presented at the bottom of your résumé can ensure that your most relevant qualifications are not overlooked by an employer. T/F
A summary of qualifications presented at the bottom of your résumé can ensure that your most relevant qualifications are not overlooked by an employer is true
What is a résumé?A résumé is a document that highlights an applicant's education, qualifications, and work history. It's usually submitted to prospective employers as part of the application process.The most important part of a résumé is the qualifications section. This area is the first section that hiring managers read when reviewing a résumé.
As a result, job candidates must make an excellent first impression in this section.What is a summary of qualifications?A summary of qualifications is a section of a résumé that lists the applicant's most significant qualifications. This section is usually found at the top or bottom of the page.
It may include:Areas of expertise Skill sets Career accomplishmentsLicenses and certificationsAwards and recognitionsHow does a summary of qualifications benefit a résumé?A summary of qualifications can make a résumé more compelling and eye-catching. It helps job candidates highlight their most important credentials, making it more likely that they will be invited for an interview.
It can also help job seekers stand out in a crowded job market. Recruiters and hiring managers are inundated with résumés on a daily basis. A well-crafted summary of qualifications can help an applicant's résumé rise to the top of the pile.
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why is this true or false There are two countries in the world, Australia and France. Suppose that nominal interest rates in both countries are the same. If the inflation rate in Australia is lower than the inflation rate in France, the nominal exchange rate (Euro/Dollar) increases.
The statement is false. If the inflation rate in Australia is lower than the inflation rate in France, it does not necessarily mean that the nominal exchange rate (Euro/Dollar) will increase. Exchange rates are influenced by a variety of factors, including inflation differentials, interest rate differentials, economic growth, political stability, and market speculation.
While inflation differentials can have an impact on exchange rates, they are not the sole determining factor. Inflation affects the purchasing power of a currency, and if one country has a lower inflation rate compared to another, it generally implies that the value of its currency is relatively stronger. However, other factors can counterbalance this effect.
Interest rate differentials, for example, play a crucial role in exchange rate movements. If nominal interest rates in Australia are higher than those in France, it could attract investors seeking higher returns, leading to an increased demand for the Australian dollar and potentially strengthening its exchange rate.
Market sentiment and expectations can also impact exchange rates. If market participants anticipate that the Australian economy will outperform the French economy in the future, it could lead to an increase in demand for the Australian dollar and a corresponding rise in its exchange rate.
Therefore, it is not accurate to claim that if the inflation rate in Australia is lower than the inflation rate in France, the nominal exchange rate (Euro/Dollar) will increase. Exchange rates are influenced by multiple factors, and inflation differentials are just one piece of the puzzle.
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Fairflax Ltd. manufactures a single product for which the
following data, based on a budgeted capacity of 196,000 units per
month, are as follows:
Stock, output and sales data (in units)
Details
The profit situation using Marginal costing principles is $6,260,000.
What is the profit situation using Marginal costing principles?Calculation of Cost of Goods Sold (COGS):
Direct Materials Cost per unit: $50
Direct Labor Cost per unit: $25
Variable Production Overheads per unit: $43
Total variable cost per unit = Direct Materials Cost per unit + Direct Labor Cost per unit + Variable Production Overheads per unit
Total variable cost per unit = $50 + $25 + $43
Total variable cost per unit = $118
COGS per unit = Total variable cost per unit
COGS per unit = $118
Opening stock = 30,000 units
Production = 210,000 units
Closing stock = 80,000 units
Units sold = Opening stock + Production - Closing stock
Units sold = 30,000 + 210,000 - 80,000
Units sold = 160,000 units
Total variable cost of goods sold (COGS) = COGS per unit * Units sold
Total variable COGS = $118 * 160,000
Total variable COGS = $18,880,000
Total Fixed Production Overheads = $2,940,000
Total Cost of Goods Sold (COGS) = Total variable COGS + Total Fixed Production Overheads
Total COGS = $18,880,000 + $2,940,000
Total COGS = $21,820,000
Total Revenue = Selling price per unit * Units sold
Total Revenue = $180 * 160,000
Total Revenue = $28,800,000
Contribution Margin = Total Revenue - Total COGS
Contribution Margin = $28,800,000 - $21,820,000
Contribution Margin = $6,980,000
Profit = Contribution Margin - Fixed administrative overheads - Fixed selling overheads
Profit = $6,980,000 - $300,000 - $420,000
Profit = $6,260,000.
Full question:
Fairflax Ltd. manufactures a single product for which the following data, based on a budgeted capacity of 196,000 units per month, are as follows:
Stock, output and sales data (in units)
Details January
Sales 160,000
Opening stock 30,000
Closing stock 80,000
Production 210,000
Cost Data Details
Direct materials 50
Direct labour 25
Variable Production Overheads 43
Fixed administrative and selling overheads were estimated at $300,000 and $420,000 respectively. During the periods, the company sold one unit of its product for $180 and Total Fixed Production Overheads were $2,940,000. Required: Show the profit situation using Marginal costing principle..
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D Ltd holds 90% ownership equity of R Ltd. R Ltd holds 75% of the ownership equity of E Ltd. E holds 80% of the ownership equity of S. During the year the following dividends are paid by the respective companies:
D $ 600,000
R $ 330,000
E $ 240,000
S $ 195,000
D Ltd has received the highest dividend of $920,000 during the year. It holds a significant interest in R Ltd, E Ltd, and S Ltd, which are responsible for paying dividends.
D Ltd holds 90% ownership equity of R Ltd. R Ltd holds 75% of the ownership equity of E Ltd. E holds 80% of the ownership equity of S. The dividends paid by the companies are:D $ 600,000R $ 330,000E $ 240,000S $ 195,000Total Dividend Received by D Ltd is $920,000. So, D Ltd has received a dividend of $920,000 during the year. Dividend means the distribution of profits by a corporation to its shareholders. It is typically paid out in the form of cash payments or stock. A corporation pays a dividend to its shareholders out of its profits. Dividends can be paid in the form of cash, stock, or other property. D Ltd holds 90% ownership equity of R Ltd. R Ltd holds 75% of the ownership equity of E Ltd. E holds 80% of the ownership equity of S. D Ltd owns a 67.5% interest in E Ltd (90% x 75%) and 54% interest in S (90% x 75% x 80%). During the year, four companies have paid dividends to their shareholders.
These companies include D Ltd, R Ltd, E Ltd, and S Ltd. D Ltd has received the most significant dividend of $600,000, followed by R Ltd with a dividend of $330,000, E Ltd with a dividend of $240,000, and S Ltd with a dividend of $195,000.D Ltd holds a significant interest in all the companies mentioned above. Therefore, it receives a significant amount of dividends. D Ltd has received a dividend of $920,000 during the year. As a result, D Ltd can reinvest this dividend or distribute it among its shareholders as a dividend. D Ltd has received the highest dividend of $920,000 during the year. It holds a significant interest in R Ltd, E Ltd, and S Ltd, which are responsible for paying dividends. Therefore, D Ltd receives a significant amount of dividends. It can reinvest this dividend or distribute it among its shareholders as a dividend.
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A good’s demand is given by: P = 697 – 4Q. At P = 132, the point
price elasticity is:
Enter as a value (round to two decimal places if necessary).
Therefore, the price elasticity of demand at P = 132 is -2.83.
Price elasticity of demand is given by the formula:PED = (% change in quantity demanded) / (% change in price)The goods demand function is given as:P = 697 – 4QIt is given that, P = 132At P = 132, the quantity demanded can be calculated by substituting the value of P in the given demand function:132 = 697 – 4Q4Q = 697 - 1324Q = 565Q = 565/4Q = 141.25Price elasticity of demand at P = 132 is given by:PED = (% change in quantity demanded) / (% change in price)We know,Change in price, ΔP = 1%Therefore, % change in price = (ΔP / P) × 100= (1 / 132) × 100= 0.758%Change in quantity demanded, ΔQ = -4(0.758)=-3.032%Therefore, % change in quantity demanded = (ΔQ / Q) × 100= (-3.032 / 141.25) × 100= -2.147%Now, we can calculate the price elasticity of demand at P = 132PED = (% change in quantity demanded) / (% change in price)= (-2.147) / (0.758)= -2.83Therefore, the price elasticity of demand at P = 132 is -2.83.
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Difference between business and financial risk? illustrate ur answer by using CAPM equation?
Business risk and financial risk are two types of risk that companies face. Business risk refers to the risks that a company faces in terms of its daily operations. The possibility that a company will be unable to meet its obligations, such as rent or payments to suppliers, is an example of business risk.
Financial risk, on the other hand, refers to the possibility that a company will be unable to meet its financial obligations. As a result, the company may be unable to obtain financing in the future. The CAPM formula (Capital Asset Pricing Model) is used to determine the return that investors should expect from an investment given the risk associated with that investment.
The formula is as follows: R = Rf + B (Rm - Rf) where: R is the return on investment. Rf is the risk-free rate. B is the beta coefficient. Rm is the expected market return. Answer in more than 100 words: Business risk is a type of risk that a company encounters in the course of its everyday operations. This can include risks like natural disasters or supply chain disruptions that can cause the company to lose money or be unable to meet its financial obligations. Financial risk, on the other hand, is the risk that a company will be unable to meet its financial obligations, such as paying its bills or obtaining financing. This can be caused by a variety of factors, including market conditions and changes in regulations. The CAPM formula is a commonly used method for determining the expected return on an investment given the risk associated with that investment. The formula includes the risk-free rate, which is the rate of return on a risk-free investment like a treasury bond, as well as the expected market return and the beta coefficient, which measures the risk of an investment compared to the overall market.
Conclusion:
In business risk and financial risk are two different types of risks that companies face. Business risk refers to the risks that a company faces in its day-to-day operations, while financial risk refers to the risk that a company will be unable to meet its financial obligations. The CAPM formula is a useful tool for determining the expected return on an investment given the risk associated with that investment, and includes factors like the risk-free rate, expected market return, and beta coefficient.
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Year 2 Sales $ 534,000 Cost of goods sold Gross profit Operating expenses 330,000 $ 204,000 130,000 Year 1 $ 402,000 268,000 $ 134,000 116,000 18,000 Net income $ 74,000 a. Prepare common size income
Common-size income statement for Year 2Sales100%Cost of goods sold61.80%Gross profit38.20%Operating expenses24.34%Net income13.86%Operating income = Gross profit - Operating expenses year 1 operating income = $134,000 - $116,000 = $18,000Year 2 operating income = $204,000 - $130,000 = $74,000
A common-size income statement can be created using the financial data given below: Year 1 Sales$ 402,000Cost of goods sold$ 268,000Gross profit$ 134,000Operating expenses$ 116,000Net income$ 18,000Year 2 Sales$ 534,000Cost of goods sold$ 330,000Gross profit$ 204,000Operating expenses$ 130,000Net income$ 74,000The common-size income statement is created by dividing all items in the income statement by sales. Common-size income statement for Year 1Sales100%Cost of goods sold66.67%Gross profit33.33%Operating expenses28.86%Net income4.48%.
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An appropriate entry for a sale on account would include which of the following?
An appropriate entry for a sale on account would include the debiting of accounts receivable and the crediting of sales revenue.
When a company sells goods or services on credit, it generates accounts receivable (AR). AR is an asset that represents the amount that customers owe the business. When a customer pays its bill, the AR account decreases, and the cash account increases. The seller may or may not offer an allowance for sales returns or discounts. If an allowance is granted, the seller must record the transaction accordingly. If the goods are sold with credit terms of 2/10, n/30, the customer receives a 2% discount if they pay within ten days.
If the payment is made after ten days but within 30 days, no discount is given. Finally, if payment is made after 30 days, the account is considered past due and subject to finance charges, collection fees, and other penalties. Companies use an accounts receivable aging report to track which accounts are delinquent and to take appropriate action. So therefore the debiting of accounts receivable and the crediting of sales revenue are an appropriate entry for a sale on account.
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