The champion/sponsor is a top-level executive who recognizes the potential benefits of a project and is willing to take ownership of it. A champion/sponsor is someone who takes the lead in advocating the need for change, taking ownership of the project, and being accountable for its progress and success.
A champion/sponsor should have the following attributes:
Leadership skills: A champion/sponsor must be a competent leader with strong communication and negotiation skills.
Seniority: A champion/sponsor should have a high level of seniority in the organization so that they can influence decision-making.
Support: The champion/sponsor must have the support of other executives and stakeholders to ensure the project's success.
Commitment: The champion/sponsor must be committed to the project's goals and should work tirelessly to achieve them.
E-business Networks Characteristics
The characteristics of an e-business network are as follows:
Interconnectivity: E-business networks connect people, businesses, and information over the internet.
Dispersed geography: These networks are geographically dispersed, meaning that businesses can operate from any location.
24/7 availability: E-business networks are accessible 24 hours a day, 7 days a week. This makes it easier for customers and suppliers to do business with each other.
High speed: E-business networks operate at high speeds, making it easier to share information and conduct transactions.
Global reach: E-business networks have a global reach, making it possible for businesses to reach customers all over the world.
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Subject: International Human Resource
Management
Please answer & Do not copy and paste answer
from previous chegg answer!
QUESTION 4.
- Explain the selection criteria of an expatriate. (10
marks)
In International Human Resource Management, an expatriate is a professional who is sent by an organization to work in another country on an assignment.
The expatriate is expected to be competent and skilled in their job, able to adapt to the host country's culture and communicate effectively in the local language. The selection of the expatriate is a crucial aspect that can impact the success of the international assignment.Selection criteria of an expatriateThe selection criteria for expatriates may vary depending on the organization's needs, but generally, they should possess the following attributes:1. Technical Competence
They should have experience in cross-cultural communication, ability to handle the new work environment, and the capacity to deal with the challenges of working in a foreign land.2. Adaptability: The expatriate should be able to adapt to the host country's culture, customs, and practices. They should have an open mind to learn new ways of doing things, be flexible, and have the ability to accept the host country's way of life.3. Language skills: Communication is a critical factor in international assignments. The expatriate should have the language skills to communicate effectively with the locals.
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1.The Liability Exposures Of A Business Firm Are More Complex Than Those Of An Individual. What Characteristics Of The Business Firm Make This So2. What Conditions Led To The Introduction Of The Claims Made Form To The General Liability Field?3. Briefly Distinguish Between An Insurance Contract And A Surety Bond.
The liability exposures of a business firm are more complex than those of an individual due to the following characteristics: Business firms typically have multiple stakeholders, suppliers, and shareholders, which increases the potential for liability claims.
Business firms may have larger financial resources and assets, making them more attractive targets for lawsuits. The complex liability exposures of a business firm arise from its organizational structure, activities, and stakeholder relationships. These factors amplify the potential risks and increase the likelihood of encountering various liability claims. Escalating costs and uncertainty associated with long-tail claims, such as those related to asbestos and pollution, which made it difficult for insurers to accurately predict and reserve for future liabilities. The desire for insurers to limit their exposure to potential future claims by defining a clear retroactive date and imposing a time limit for reporting claims. A surety bond, on the other hand, is a three-party agreement that guarantees the performance of a specific obligation by one party (principal) to another party (obligee), backed by a third party (surety) that promises to fulfill the obligation if the principal fails to do so.
While both involve risk transfer, an insurance contract primarily covers losses due to unforeseen events, while a surety bond ensures the fulfillment of a specific obligation and provides financial protection in case of non-performance or default.
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Do you think facilitating payments (speed payments) should be
ethical? Does it matter in which country, or part of the world,
such payments are made?.
Facilitating speed payments is an ethical issue in today's society. In most cases, speed payments facilitate the exchange of goods and services, but they can also enable criminal activity.
What are the implications?Here are some key points to keep in mind:
Ethics of Speed Payments
Facilitating speed payments has ethical implications, especially when the origin of the payments is unknown. This is because criminals can use speed payments to move money across borders quickly and without detection. When payments are facilitated without proper safeguards, they can enable criminal activity, including money laundering, human trafficking, and terrorism financing. Therefore, it is important to establish ethical frameworks and mechanisms for facilitating speed payments.Cultural and Geographical Context
The ethics of facilitating speed payments may also vary depending on the cultural and geographical context. In countries where corruption is rampant, facilitating speed payments may be more problematic. In such a situation, financial institutions must take extra care to ensure that they are not enabling corruption or facilitating criminal activity. On the other hand, in some cultures, it may be acceptable to give gifts or pay for services upfront. In such a case, speed payments may be more acceptable and may not be viewed as unethical.Conclusion
In conclusion, facilitating speed payments should be ethical, and it is important to consider the geographical and cultural context when evaluating their ethics.
To ensure that speed payments are made ethically, financial institutions must put safeguards in place to prevent criminal activity, such as money laundering and terrorism financing.
Financial institutions should also be aware of the cultural and geographical context in which they are facilitating payments to ensure that they are not inadvertently enabling corruption.
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Suppose currently you have $65 in your bank account. Suppose you will deposit $100 into your bank account at the beginning of each quarter. Suppose the bank pays interests every 66.5 days. How much will you have in your bank account after 6 years if the bank interest rate is 6% per year? (Note: suppose you will not withdraw from your bank account over this 6-year period.)
After 6 years, you will have $5,294.79 in your bank account.
To calculate this, we need to determine the number of quarters in 6 years. Since there are 4 quarters in a year, we multiply 6 by 4 to get 24 quarters.
Next, we need to calculate the interest earned on each deposit. The bank pays interest every 66.5 days, which is approximately 0.1836 years (66.5 days / 365 days). To find the interest rate for each quarter, we divide the annual interest rate of 6% by 4, which gives us 1.5%.
Now, we can calculate the future value of each deposit. Using the formula for compound interest, FV = PV * (1 + r)^n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods, we can plug in the values.
For the initial deposit of $65, we have FV = $65 * (1 + 0.015)^24 = $96.98.
For the subsequent deposits of $100, we have FV = $100 * (1 + 0.015)^23 + $100 * (1 + 0.015)^22 + ... + $100 * (1 + 0.015)^1 = $5,197.81.
Adding up the future values of all the deposits, we get $96.98 + $5,197.81 = $5,294.79.
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A stock's P/E ratio of 15 implies that an investor has to invest $15 to make one dollar of earning. Select one: True False
False. A stock's P/E ratio of 15 does not imply that an investor has to invest $15 to make one dollar of earnings.
The price-to-earnings (P/E) ratio is a financial metric used to evaluate the relative value of a stock by comparing its market price to its earnings per share (EPS). It is calculated by dividing the market price of a stock by its earnings per share. In this case, a P/E ratio of 15 means that investors are willing to pay 15 times the earnings per share to acquire the stock.
To understand the implications of a P/E ratio of 15, it is important to note that it represents the valuation multiple that investors are willing to pay for each dollar of earnings generated by the company. A P/E ratio of 15 suggests that investors are willing to pay $15 for every dollar of earnings per share. In other words, it indicates that investors value the company's earnings at 15 times their current level.
This multiple can be interpreted as a measure of the market's expectations for future growth and profitability. However, it does not mean that an investor has to invest $15 to make one dollar of earnings. The P/E ratio is a valuation metric and should not be misconstrued as the actual cost of investing or the return on investment.
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(1)Determine the missing amount. (Show the necessary workings.) (2）Prepare the statement of changes in equity for Alpha Company. (3）Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the statement of changes in equity to the income statement and balance sheet.
(1) To determine the missing amount, we need more specific information about the context or the equation involved. Please provide the relevant details or equation, and I will be happy to assist you with the calculation.
(2) Statement of Changes in Equity for Alpha Company:
Alpha Company
Statement of Changes in Equity
For the Year Ended [Date]
Beginning Equity (at the start of the year) [Amount]
Add: Net Income [Amount]
Add: Additional Capital Contributions [Amount]
Less: Dividends Paid [Amount]
Less: Treasury Stock Purchased [Amount]
Ending Equity (at the end of the year) [Amount]
The statement of changes in equity shows the changes that have occurred in the equity section of the balance sheet during a specific period. It includes the beginning equity, net income, additional capital contributions, dividends paid, and any treasury stock purchased.
To prepare the statement, we start with the beginning equity balance, which is the equity balance at the start of the year. Then, we add the net income for the year, which represents the company's profits. Additional capital contributions are included if the company received any additional investments from its owners. Dividends paid to shareholders are subtracted to reflect the distribution of profits to owners. Finally, any treasury stock purchased during the year is deducted from the equity.
The ending equity is calculated by summing up the beginning equity, net income, additional capital contributions, and deducting dividends paid and treasury stock purchased. This ending equity value represents the equity balance at the end of the year.
(3) Memorandum:
Date: [Date]
To: [Recipient]
From: [Your Name]
Subject: Sequence for Preparing Financial Statements and Interrelationship of the Statement of Changes in Equity
I am writing to explain the sequence for preparing financial statements and the interrelationship of the statement of changes in equity to the income statement and balance sheet.
The financial statement preparation process typically begins with the income statement, which summarizes the company's revenues and expenses over a specific period, resulting in net income or net loss. The income statement provides important information about the company's profitability.
Next, the net income from the income statement is transferred to the statement of changes in equity. The statement of changes in equity shows the changes in the equity section of the balance sheet during the same period. It includes items such as beginning equity, net income, additional capital contributions, dividends paid, and treasury stock transactions. The ending equity calculated in the statement of changes in equity is then reflected in the balance sheet.
Finally, the balance sheet is prepared. The balance sheet presents the financial position of the company at a specific point in time. It includes assets, liabilities, and equity, with the ending equity value obtained from the statement of changes in equity.
In summary, the sequence for preparing financial statements is income statement, statement of changes in equity, and balance sheet. The statement of changes in equity acts as a bridge between the income statement and balance sheet by incorporating the net income from the income statement and reflecting the resulting changes in equity in the balance sheet.
Sincerely,
[Your Name]
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You are the fund manager of ABC Fund, based in New York. You noticed that the Egyptian T-Bills are offering one of the most competitive interest rates worldwide, and you perceived it
as a lucrative investment opportunity. On 1' June 2021 your fund decided to invest in the Egyptian treasury bills that pays 14.4% annually and for this you transferred USD 1 million to Egypt. Money was converted in a bank which quoted a USD/EGP rate of 15.75/15.80. On 1' June 2022, T-Bills matured and interest was recognized. USD/EGP on 1" June 2022 quotation was 18.70/18.77
a. Calculate in US$ terms the net profit / loss ABC Fund made on its investment in Egypt. (show all steps)
b. Now that the T-bills matured and ABC has their money in EGP, do you advice ABC fund to continue investing in the EGP at a T-bill rate of 17%, or convert their money into dollars and take it back home? Noting that the interest rate on USD deposits is 3%. (Justify your answer)
a. ABC Fund made a net loss of $992,324.93 on its investment in Egypt.
b. ABC Fund should convert to USD for higher interest rates.
a. To calculate the net profit/loss in US$ terms, we need to consider the initial investment, the interest earned, and the exchange rate at the time of maturity.
Step 1: Calculate the interest earned in Egyptian pounds (EGP):
Interest earned = Initial investment (in EGP) * Interest rate
= 1,000,000 * 0.144
= 144,000 EGP
Step 2: Convert the interest earned from EGP to US$ using the exchange rate at maturity:
Interest earned (in US$) = Interest earned (in EGP) / Exchange rate
= 144,000 / 18.77 (using the higher exchange rate)
= 7,675.07 US$
Step 3: Calculate the net profit/loss:
Net profit/loss = Interest earned (in US$) - Initial investment (in US$)
= 7,675.07 - 1,000,000
= -992,324.93 US$
Therefore, ABC Fund made a net loss of $992,324.93 on its investment in Egypt.
b. To decide whether to continue investing in EGP at a T-bill rate of 17% or convert the money into dollars and take it back home, we need to compare the returns in each scenario.
Scenario 1: Continue investing in EGP at a T-bill rate of 17%:
Calculate the interest earned in EGP:
Interest earned = Initial investment (in EGP) * Interest rate
= 1,000,000 * 0.17
= 170,000 EGP
Convert the interest earned from EGP to US$ using the current exchange rate:
Interest earned (in US$) = Interest earned (in EGP) / Current exchange rate
= 170,000 / 18.77 (using the higher exchange rate)
= 9,057.15 US$
Scenario 2: Convert the money into dollars and take it back home:
Calculate the interest earned in US$:
Interest earned (in US$) = Initial investment (in US$) * Interest rate
= 1,000,000 * 0.03
= 30,000 US$
Comparing the returns:
Scenario 1: $9,057.15
Scenario 2: $30,000
Based on the comparison, it is advisable for ABC Fund to convert their money into dollars and take it back home, as they would earn a higher interest rate on USD deposits (3%) compared to continuing to invest in EGP at a T-bill rate of 17%.
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A newly constructed 90-bed multispecialty hospital in Ajman emirate has contracted you, as health administration specialist, to organize the hospital's outpatients (otherwise known as ambulatory) unit to undertake nutrition education and treatment services for an estimated 20 new and discharged patients 6 days a week, at a cost of 70AED for consultation and average cost of 100AED for treatment per patient. What are key nutrition health education and treatment services in outpatients clinics ? ; what types and number of health workers will you need to provide such services sustainably? A dietitian’s average daily salary is 200aed/day . Discuss the appointment scheduling system you will adopt for this new outpatient department . Describe one key performance indicator to assess the level of functioning or outcomes of the outpatients’ clinic
At its core, nutrition health education and treatment services in outpatients clinics focus on providing nutrition advice and information to current and newly discharged patients in order to help.
Them make healthier nutrition-related decisions and manage their health in the longer term. These services include nutrition assessments, goal-setting, meal planning, dietary advice, nutrition counseling, and other medical nutrition therapies, such as tube feeding and enteral nutrition.
In order to offer such services sustainably, it is recommended that the hospital have at least one full-time dietitian and one part-time health worker in the outpatients clinic. The full-time dietitian would be responsible for providing comprehensive nutrition assessments, designing meal plans and providing nutrition counseling. The part-time health worker would help in monitoring patient progress and providing follow-up support to newly discharged patients. Overall, the costs of such staff would be 200AED/day for the dietitian, and a more modest hourly wage of 40AED/hour for the part-time health worker.
The appointment scheduling system adopted in the new outpatient department should be tailored to the needs of the specific patients. Patients should be given a choice of days/times for their appointment and must be allowed to reschedule if necessary. Additionally, an online booking/scheduling system should be implemented to ensure that appointments are adequately scheduled and managed in a timely manner.
One key performance indicator to assess the level of functioning or outcomes of the outpatients’ clinic is the patient satisfaction rate. This requires assessing patient feedback regarding the dietitian, the health worker, the clinic's overall services and their experiences evoked from their visits. As such, the outpatients clinic should aim to achieve a high level of patient satisfaction to ensure the sustainability of its services in the long term.
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16) As a perfectly competitive firm it produces more units, TR will: I A) Decrease. B) Curve downwards. C) Curve upwards. D) Increase at a steady rate
As a perfectly competitive firm produces more units, its total revenue (TR) will increase at a decreasing rate, resulting in a downward sloping total revenue curve. Therefore, the correct answer is B) Curve downwards.
The total revenue curve of a perfectly competitive firm will curve downwards as it produces more units, resulting in an increasing but decreasing rate of total revenue. This is because the firm's marginal revenue (MR) is equal to its price, which decreases as output increases due to the law of diminishing marginal utility. As a result, the firm must lower its price to sell additional units, which reduces the revenue gained from each additional unit sold. This leads to a downward sloping total revenue curve. However, the firm's total revenue will still increase as it produces more units, as long as its marginal revenue is positive. Once the firm's marginal revenue becomes zero, its total revenue will reach its maximum point, after which any further increase in output will lead to a decrease in total revenue.
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Anle Corporation has a current stock price of $21.26 and is expected to pay a dividend of $1.05 in one year. Its expected stock price right after paying that dividend is $23.23
a. What is Anle's equity cost of capital?
b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain?
Anle's equity cost of capital is expected to be satisfied approximately 4.94% by dividend yield and 9.22% by capital gain.
a. To calculate Anle Corporation's equity cost of capital, we need to use the dividend discount model (DDM) formula. The DDM formula is:
Equity Cost of Capital = (Dividend / Stock Price) + (Expected Stock Price - Stock Price) / Stock Price
Given the information provided, we can substitute the values into the formula:
Equity Cost of Capital = ($1.05 / $21.26) + ($23.23 - $21.26) / $21.26
Simplifying the equation:
Equity Cost of Capital = 0.0494 + 0.0922
Equity Cost of Capital = 0.1416 or 14.16%
b. To determine how much of Anle's equity cost of capital is satisfied by dividend yield and capital gain, we need to compare the components.
Dividend Yield = Dividend / Stock Price
Dividend Yield = $1.05 / $21.26
Dividend Yield = 0.0494 or 4.94%
Capital Gain = (Expected Stock Price - Stock Price) / Stock Price
Capital Gain = ($23.23 - $21.26) / $21.26
Capital Gain = 0.0922 or 9.22%
Therefore, Anle's equity cost of capital is expected to be satisfied approximately 4.94% by dividend yield and 9.22% by capital gain.
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Astore has 5 years remaining on its lease in a mail. Rent is $2,100 per month, 60 payments remain, and the next payment is due in 1 month. The mall's owner plans to sell the property in a year and wants rent at that time to be high so that the property will appear more valuable. Therefore, the store has been offered a "great deal" (owner's words) on a new 5 -year lease. The new lease calls for no rent for 9 months, then payments of $2,700 per month for the next 51 . month5. The lease cannot be broken, and the store's WACC is 12% (or 1% per month). a. Should the new loase be accepted? .....(Hint: Be sure to use 1% per month.) b. If the store owner decided to bargain with the mail's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and old feases? (Hint: Find FV of the old lease's original cost at t=9; then treat this as the PV of a 51 -period annuity whose payments represent the rent during months 10 to 60 .) Do not round intermediate calculations. Pound your answer to the nearest cent. 5 c. The store owner is not sure of the 12% WACC-it could be higher or lower. At what nominal wACC would the store owner be indifferent between the two leases? (Hint; Calculate the differences between the two payment streams; then find its 1rR.) Do not round intermediate calculations. Round your answer to two decimal places.
a. The new lease should not be accepted. The calculation for the PV of the old lease's remaining 60 payments is as follows:PV of the remaining 60 payments at t = 1month = PVIFA(0.01, 60) × $2,100= 46.6422 × $2,100= $98,149.23.
PV of the new lease's 51 payments is calculated as follows:PV of the 51 payments = PV of the 9-month rent-free period + PV of a 42-payment annuity= 0 + PVIFA(0.01, 42) × $2,700= 34.9698 × $2,700= $94,474.66Because the PV of the remaining payments under the old lease is greater than the PV of the payments under the new lease, the new lease should not be accepted.b. The calculation for the PV of the old lease's remaining payments is:$98,149.23. If the store owner wants to make the store owner indifferent between the two leases, the new lease payment must be set to equal $98,149.23 PVIFA(0.01, 51), or $1,285.23 per month.
Thus, the store owner can bargain with the mall owner to reduce the monthly payment to $1,285.23 so that he is indifferent between the new and old leases.c. The difference between the two payment streams is as follows:PV of old lease's remaining payments - PV of new lease's 51 payments= $98,149.23 - $94,474.66= $3,674.57Now that we know the difference between the two payment streams, we may find the nominal WACC at which the store owner would be indifferent between the two leases. The nominal WACC can be found using the following equation:NPV of differential payment stream = 0= -$3,674.57 + [$2,100(1 + r)⁵⁰ - $2,700(PVIFA(r, 42)) (1 + r)⁹]= -$3,674.57 + [$2,100(1 + r)⁵⁰ - $2,700(17.4664)(1 + r)⁹]Where r is the nominal WACC.The above equation should be solved using a financial calculator or spreadsheet software. The nominal WACC that makes the store owner indifferent between the two leases is 11.03%.
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Time allocation imbalances between customer acquisition and retention can be caused by:
O lead management and maintenance
sales administration and expense reports
O corporate training on ethics programs and values
all of the above
Answer:
The correct answer is "all of the above." Time allocation imbalances between customer acquisition and retention can be caused by lead management and maintenance, sales administration and expense reports, as well as corporate training on ethics programs and values. These factors can impact how resources and time are allocated within an organization, potentially leading to imbalances between efforts focused on acquiring new customers and efforts focused on retaining existing customers.
OFLJH Inc., a leading manufacturer of frozen dessert products, is considering the addition of a new product: frozen yogurt. The firm estimates that each cup will sell for $2 and that the variable costs per cup will be 70% of the selling price. The firm expects to sell at least 10M cups the first year and that the marginal tax rate will be 40%. The firm wants to maintain its current degree of financial leverage of 1.5 and a maximum degree of combined leverage of 4.5 . The firm expects to pay $300,000 in preferred dividends and has 1 million shares of common stock outstanding. a) Create an income statement for the new frozen yogurt's first year using the information provided. b) Determine the operating break-even point in units and also in dollars. c) How many cups would The Cold Experience, Inc. need to sell in order to achieve earnings before interest and taxes of $3M ?
a) The income statement for OFLJH Inc.'s new frozen yogurt product in its first year is as follows:
Income Statement
Revenue:
Sales (10,000,000 cups × $2/cup) $20,000,000
Cost of Goods Sold:
Variable Costs (70% of sales) $14,000,000
Gross Profit $6,000,000
Operating Expenses:
Fixed Costs $X
Depreciation Expense $X
Operating Income (EBIT) $X
Interest Expense $X
Earnings Before Taxes (EBT) $X
Taxes (40% of EBT) $X
Net Income $X
b) To determine the operating break-even point in units and dollars, we need to calculate the contribution margin per unit and the fixed costs. The contribution margin is the selling price per unit minus the variable cost per unit.
Contribution margin per cup: $2 - ($2 × 70%) = $0.60
The operating break-even point in units can be calculated by dividing the fixed costs by the contribution margin per unit.
Operating break-even point in units = Fixed costs / Contribution margin per cup
To calculate the operating break-even point in dollars, we multiply the operating break-even point in units by the selling price per cup.
Operating break-even point in dollars = Operating break-even point in units × Selling price per cup
c) To determine the number of cups The Cold Experience, Inc. would need to sell in order to achieve earnings before interest and taxes (EBIT) of $3 million, we need to consider the operating income (EBIT) and the interest expense.
EBIT = Sales - Variable Costs - Fixed Costs - Depreciation Expense
We rearrange the formula to solve for sales:
Sales = EBIT + Variable Costs + Fixed Costs + Depreciation Expense
The number of cups to be sold can be calculated by dividing the sales by the selling price per cup.
Number of cups = Sales / Selling price per cup
By substituting the given EBIT of $3 million, the variable costs, fixed costs, depreciation expense, and the selling price per cup, we can determine the number of cups The Cold Experience, Inc. would need to sell to achieve the desired EBIT of $3 million.
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Suppose the real risk-free rate is 2.8%, the average future inflation rate is 4.9%, a maturity premium of 0.05% per year to maturity applies, i.e., MRP 0.05%(t), where t is the years to maturity. Suppose also that a liquidity premium of 0.8% and a default risk premium of 1% applies to A-rated corporate bonds. How much higher would the rate of return be on a 9-year A-rated corporate bond than on a 5-year Treasury bond. Here we assume that the pure expectations theory is NOT valid. O 2.00% O 2.10% O 2.20% O 2.40% 2.30% Keys Corporation's 5-year bonds yield 7.8%, and 5-year T-bonds yield 5.9%. The real risk-free rate is r* = 2.2%, the inflation premium for 5 years bonds is IP = 3.3%, the default risk premium for Keys' bonds is DRP = 0.48% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t - 1)*0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Keys' bonds? O 1.32% O 1.22% O 1.52% O 1.12% O 1.42%
The equired liquidity premium (LP) on Keys' bonds is 1.32%.Therefore, the answer is 1.32%
Given Information:Real Risk-Free Rate (r*) = 2.8%Average Future Inflation Rate (IP) = 4.9%Maturity Premium (MRP) = 0.05%(t)Years to Maturity (t) = 9 years - 5 years = 4 Year Liquidity Premium = 0.8%Default Risk Premium (DRP) = 1%Higher rate of return on a 9-year A-rated corporate bond than on a 5-year Treasury bond can be calculated as follows:R (Corporate bond) = Real Risk-Free Rate (r*) + Average Future Inflation Rate (IP) + Maturity Premium (MRP) + Liquidity Premium + Default Risk Premium (DRP)For the corporate bond with 9 years to maturity:R (Corporate bond) = 2.8% + 4.9% + 0.05%(9) + 0.8% + 1%R (Corporate bond) = 8.55%
For the corporate bond with 5 years to maturity:R (Corporate bond) = 2.8% + 4.9% + 0.05%(5) + 0.8% + 1%R (Corporate bond) = 7.55%The difference in rate of return = R (Corporate bond) - R (Treasury bond) = 8.55% - 5.9% = 2.65%Main answer in 3 lines:Therefore, the higher rate of return on a 9-year A-rated corporate bond than on a 5-year Treasury bond is 2.65%.Hence, the answer is 2.65%.
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Evaluate and discuss the requirements of one of the following laws and how it applies in hiring. What does a manager need to do or not do to comply with it? Pregnancy Discrimination Act or Federal labor laws enforced by the National Labor Relations Board (NLRB) including National Labor Relations Act (NLRA)
Pregnancy Discrimination Act is essential to protect pregnant employees from discrimination in the workplace. A manager should comply with the requirements of the PDA by not discriminating against an employee based on pregnancy, childbirth, or related medical conditions.
The act applies to employers with 15 or more employees, and it protects women from being discriminated against due to pregnancy, childbirth, or related medical conditions when it comes to recruitment, hiring, and promotion decisions.
To comply with the PDA, a manager should provide reasonable accommodation to a pregnant employee if the employee requests it, such as allowing her to take breaks for medical reasons or moving her to a less physically demanding job. Employers should also provide equal access to benefits such as health insurance and disability leave for employees with pregnancy-related medical conditions.
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In what condition does a Limited License Broker provide their services?
A. Sponsor up to five Salespersons
B. Engage in transactions as Prinicpal only.
C. Act on behalf of the of a Principal Only
D. Engage in negotiations of Morgatage loans, other than residential mortgage loans
A Limited License Broker can provide their services in the condition where they act on behalf of the principal only. In this context, the main answer to the given question is option C, "Act on behalf of the principal only".
In real estate, the limited license broker is the one who holds a license for performing various activities. These brokers are allowed to carry out real estate activities that do not require a full brokerage license. Such activities include, but are not limited to, acting on behalf of the principal only. Therefore, a limited license broker can provide services when they act on behalf of the principal only.
Option A is not correct as a limited license broker can sponsor up to one salesperson, not five salespersons.
Option B is incorrect because a limited license broker cannot engage in transactions as principal only.
Option D is also incorrect as a limited license broker cannot negotiate mortgage loans.
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Trillium manufacturing invests in new equipment for $900,000 to be used in a 5-year project. The equipment has a CCA rate of 30%. The appropriate tax rate is 40% and discount rate is 12%. The equipment will have a salvage value of $180,000 at the end of year 5. What is the present value of all CCA tax shields? Assume the half year rule applies.
Question options:
$294,321.48
$359,127.06
$307,497.37
$214,185.39
$374,947.65
The present value of all CCA tax shields is $294,321.48.
To calculate the present value of all CCA (Capital Cost Allowance) tax shields, we need to consider the tax savings generated by the CCA deductions over the project's duration.
First, we calculate the annual CCA tax shield by multiplying the equipment cost by the CCA rate: $900,000 * 30% = $270,000.
Next, we calculate the tax savings generated by the CCA tax shield. Since the tax rate is 40%, the tax savings each year will be $270,000 * 40% = $108,000.
To determine the present value of these tax savings, we discount each year's tax savings to the present using the discount rate of 12%. Since the half-year rule applies, we assume that the tax savings occur at the end of each year.
Using the formula for the present value of a future cash flow:
PV = CF / (1 + r)^n
Where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of years.
For each year's tax savings, we calculate the present value and sum them up to find the total present value of all CCA tax shields.
Year 1: $108,000 / (1 + 0.12)^1 = $96,428.57
Year 2: $108,000 / (1 + 0.12)^2 = $86,083.44
Year 3: $108,000 / (1 + 0.12)^3 = $76,764.17
Year 4: $108,000 / (1 + 0.12)^4 = $68,335.86
Year 5: $108,000 / (1 + 0.12)^5 = $60,671.44
Adding up these present values, we get $294,321.48, which is the present value of all CCA tax shields over the project's duration.
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Kendra Brown is analyzing the capital requirements for Reynold Corporation for next
year. Kendra forecasts that Reynold will need $15 million to fund all of its positive-NPV
projects and her job is to determine how to raise the money. Reynold's net income is $11
million, and it has paid a $2 dividend per share (DPS) for the past several years (1 million
shares of common stock are outstanding); its shareholders expect the dividend to remain
constant for the next several years. The company's target capital structure is 30% debt and
70% equity.
a. Suppose Reynold follows the residual model and makes all distributions as dividends.
How much retained earnings will it need to fund its capital budget?
b. If Reynold follows the residual model with all distributions in the form of dividends,
what will be its dividend per share and payout ratio for the upcoming year?
c. If Reynold maintains its current $2 DPS for next year, how much retained earnings
will be available for the firm's capital budget?
d. Can Reynold maintain its current capital structure, maintain its current dividend per
share, and maintain a $15 million capital budget without having to raise new
common stock? Why or why not?
e.
Suppose management is firmly opposed to cutting the dividend; that is, it wishes to
maintain the $2 dividend for the next year. Suppose also that the company is committed
to funding all profitable projects and is willing to issue more debt (along with the
available retained earnings) to help finance the company's capital budget. Assume the
resulting change in capital structure has a minimal impact on the company's composite
cost of capital, so that the capital budget remains at $15 million. What portion of this
year's capital budget would have to be financed with debt?
f. Suppose once again that management wants to maintain the $2 DPS. In addition, the
company wants to maintain its target capital structure (30% debt, 70% equity) and its
$15 million capital budget. What is the minimum dollar amount of new common
stock the company would have to issue in order to meet all of its objectives?
& Now consider the case in which management wants to maintain the $2 DRS and its
target capital structure but also wants to avoid issuing new common stock. The
company is willing to cut its capital budget in order to meet its other objectives.
Assuming the company's projects are divisible, what will be the company's capital
budget for the next year?
h. If a firm follows the residual distribution policy, what actions can it take when its
forecasted retained earnings are less than the retained earnings required to fund its
capital budget?
Here, Retained Earnings Required = $4 million ,Payout Ratio ≈ 0.1818 or 18.18% ,To fund the capital budget without issuing new common stock, Reynold would need to either reduce the capital budget or change its dividend policy. ,Shortfall = $6 million ,the minimum dollar amount of new common stock the company would have to issue is $20 million., the capital budget for the next year would be $9 million., Reduce the capital budget: The firm can cut back on planned investments and allocate fewer funds to the capital budget.
a. To fund its capital budget using the residual model, Reynold Corporation would need to use retained earnings. The retained earnings required can be calculated as the difference between the capital budget and the net income:
Retained Earnings Required = Capital Budget - Net Income
Retained Earnings Required = $15 million - $11 million
Retained Earnings Required = $4 million
b. If Reynold Corporation follows the residual model with all distributions in the form of dividends, the dividend per share (DPS) and payout ratio can be calculated. Since the company has 1 million shares of common stock outstanding, the dividend per share would be:
Dividend per Share = Total Dividends / Number of Shares
Dividend per Share = $2 million / 1 million
Dividend per Share = $2
The payout ratio is the proportion of earnings paid out as dividends:
Payout Ratio = Dividends / Net Income
Payout Ratio = $2 million / $11 million
Payout Ratio ≈ 0.1818 or 18.18%
c. If Reynold Corporation maintains its current $2 DPS for the next year, the retained earnings available for the firm's capital budget can be calculated. The retained earnings available would be the net income minus the dividends paid:
Retained Earnings Available = Net Income - Dividends
Retained Earnings Available = $11 million - $2 million
Retained Earnings Available = $9 million
d. Reynold Corporation cannot maintain its current capital structure, maintain its current dividend per share, and maintain a $15 million capital budget without having to raise new common stock. The retained earnings available are only $9 million, which is insufficient to fund the full capital budget of $15 million. To fund the capital budget without issuing new common stock, Reynold would need to either reduce the capital budget or change its dividend policy.
e. To determine the portion of the capital budget that needs to be financed with debt while maintaining the $2 dividend per share, we need to find the shortfall between the capital budget and the available retained earnings.
Shortfall = Capital Budget - Retained Earnings Available
Shortfall = $15 million - $9 million
Shortfall = $6 million
Therefore, $6 million of the capital budget would need to be financed with debt.
f. If the company wants to maintain the $2 dividend per share, the target capital structure of 30% debt and 70% equity, and the $15 million capital budget, the minimum dollar amount of new common stock that needs to be issued can be calculated.
New Common Stock = Shortfall / (1 - Equity Ratio)
Equity Ratio = 1 - Debt Ratio
Equity Ratio = 1 - 0.3
Equity Ratio = 0.7
New Common Stock = $6 million / (1 - 0.7)
New Common Stock = $6 million / 0.3
New Common Stock = $20 million
Therefore, the minimum dollar amount of new common stock the company would have to issue is $20 million.
g. If the company wants to maintain the $2 dividend per share, the target capital structure of 30% debt and 70% equity, and avoid issuing new common stock, it would be willing to cut its capital budget. Since the projects are divisible, the capital budget for the next year can be reduced by the amount of shortfall:
Capital Budget = Capital Budget - Shortfall
Capital Budget = $15 million - $6 million
Capital Budget = $9 million
Therefore, the capital budget for the next year would be $9 million.
h. When the forecasted retained earnings are less than the retained earnings required to fund the capital budget, a firm following the residual distribution policy can take the following actions:
Reduce the capital budget: The firm can cut back on planned investments and allocate fewer funds to the capital budget.
Raise external financing: The firm can raise additional funds through debt or equity issuance to cover the shortfall in retained earnings.
Adjust dividend policy: The firm can decrease the dividend per share or payout ratio to retain more earnings internally and fund the capital budget.
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Compute the present value of $200,000 to be received 7 years from today if the annual interest rate is 8% compounded annually. (Use the present value tables with six decimal places at the end of your Unit 5 notes. Round your answer to the nearest whole dollar. Do not include the $ sign in your answer
Present value is the worth today of an amount of money or stream of payments to be received in the future, taking into consideration a specified interest rate.
The formula for computing the present value (PV) is: PV = FV/ (1+r)n, where: FV represents the future value of an investment, n represents the number of years the investment is being made to the future, r is the interest rate. The present value (PV) can also be calculated using a present value table. A present value table is a table that is used to help in determining the present value of future cash flows. For instance, to calculate the present value of an amount of money to be received in 7 years, first, identify the interest rate being applied and locate it in the table. Then locate the number of years of the investment on the table. Compute the present value of $200,000 to be received 7 years from today if the annual interest rate is 8% compounded annually. (Use the present value tables with six decimal places at the end of your Unit 5 notes. Round your answer to the nearest whole dollar. Using the formula
PV = FV/ (1+r)n, we have: FV = $200,000n = 7 years r = 8% compounded annually
Thus, PV = 200000/ (1+0.08)7 = 108225.21 dollars Rounding the answer to the nearest whole dollar, the present value of $200,000 to be received in 7 years at an annual interest rate of 8% compounded annually is $108,225.
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You can afford $300 per month for car loan payments. For a 36-month loan at 5.5% stated annual interest, with the first payment one month from now, how much can you borrow
This means that you can borrow up to $9,935.13 for a 36-month car loan at 5.5% annual interest.
the formula for calculating the present value of an annuity is:
PV = PMT * [1 - (1 + r)^-n] / r
Where:
* PV = present value
* PMT = monthly payment
* r = annual interest rate
* n = number of payments
In your case, the following values would be used in the formula:
* PMT = $300
* r = 5.5% / 12 = 0.045
* n = 36 months
Plugging these values into the formula, we get the following present value:
PV = $300 * [1 - (1 + 0.045)^-36] / 0.045 = $9,935.1
Please note that this is just an estimate, and the actual amount you can borrow may vary depending on your credit score and other factors. It is always best to speak with a lender to get a more accurate quote.
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1. Consider a special case where a person consumes two goods which are perfect substitutes. In this case,
a. the utility curve is a straight line
b. the consumer will choose an optimal point of consumption which is at one endpoint of their budget line
c. the consumer will choose an optimal point of consumption which is at any point along their utility curve
d. both a and b are true
The given case considers a person consuming two goods that are perfect substitutes. In this scenario, the utility curve will be a straight line. The correct option is A.
A utility curve is a graph that shows the various combinations of two goods that yield the same level of satisfaction to a consumer. The slope of this curve depicts the marginal rate of substitution (MRS).
The given case considers a person consuming two goods that are perfect substitutes. This means that the goods provide the same level of satisfaction to the consumer. Hence, the consumer can substitute one good for the other, and the satisfaction derived will be the same.
To represent the satisfaction of the consumer, the utility curve is a straight line, as both the goods are perfect substitutes. The slope of this line will be constant and negative, indicating the rate at which the consumer can trade one good for another without affecting their satisfaction level.
The correct option is A. The utility curve is a straight line.
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Which of the following asset categories is NOT a part of M2 money? O other liquid assets small-denomination time deposits O bank reserves O demand deposits
M2 money refers to a measure of money supply that includes all the components of M1 money plus other liquid assets. Therefore, the asset category that is not a part of M2 money is bank reserves. M2 money supply can be defined as a measurement of the total amount of money that is in circulation in a particular economy at any given time.
In other words, M2 is the amount of money that is in circulation in an economy that includes all the components of M1 plus the near-money assets such as savings deposits, time deposits below $100,000, and non-institutional money market funds.Therefore, bank reserves are not included in M2 money because they are not available to be spent by the general public and are only kept by banks for their internal operations.
Bank reserves are deposits that banks hold at the Federal Reserve in excess of their required reserve levels, which are the minimum deposits banks must hold in order to meet regulatory requirements. The banks cannot lend out these reserves, and they do not contribute to the money supply or GDP. Thus, bank reserves are not included in M2 money.To summarize, bank reserves are not a part of the M2 money supply category, which comprises all components of M1 and other liquid assets.
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I have been asked to submit a Due Diligence Report for Acquisition Decision Making by a Board.
I would be grateful if assistance would be given on the Guidelines to follow in the report writing and what would be the various component of the report.
I would love if a sample is attached for Retain Market.
The report should include an executive summary, company overview, financial analysis, operational analysis, legal review, risk assessment, and recommendations.
The main components of a Due Diligence Report typically include an executive summary, introduction, company overview, financial analysis, operational analysis, legal and regulatory review, risk assessment, and recommendations. The executive summary provides a concise overview of the report's findings and recommendations.
The introduction sets the context for the acquisition and outlines the objectives of the due diligence process. The company overview section provides detailed information about the target company, including its history, products/services, market position, and competitive landscape.
The financial analysis examines the target company's financial statements, key financial ratios, and cash flow projections. The operational analysis assesses the target company's operational capabilities, including its production processes, supply chain, and human resources.
The legal and regulatory review identifies any legal or compliance issues that may impact the acquisition. The risk assessment evaluates potential risks associated with the acquisition, such as market risks, financial risks, and integration risks. Finally, the report concludes with recommendations and a summary of the key findings.
By following these guidelines and including the necessary components, the Due Diligence Report provides the board with a comprehensive evaluation of the target company, helping them make informed acquisition decisions.
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Calculate the provincial tax for a person in British Columbia
with a taxable income of 250,00 per year.
The provincial tax for a person in British Columbia with a taxable income of $250,000 per year would be approximately $31,066.35.
to calculate the provincial tax for a person in British Columbia with a taxable income of $250,000 per year, we need to consider the provincial tax rates and brackets in British Columbia.
As of the 2021 tax year, British Columbia has a progressive tax system with multiple tax brackets. The tax rates for individuals in British Columbia are as follows:
- 5.06% on the first $41,725 of taxable income
- 7.70% on the next $41,726 to $83,451 of taxable income
- 10.50% on the next $83,452 to $95,812 of taxable income
- 12.29% on the next $95,813 to $116,344 of taxable income
- 14.70% on the next $116,345 to $157,748 of taxable income
- 16.80% on the next $157,749 to $220,000 of taxable income
- 20.50% on taxable income over $220,000
To calculate the provincial tax for a taxable income of $250,000, we need to determine the amount of income that falls within each tax bracket and multiply it by the corresponding tax rate. Then, we sum up the amounts to get the total provincial tax.
Here's an example calculation:
1. Calculate the tax for each tax bracket:
- $41,725 x 5.06% = $2,110.93
- ($83,451 - $41,726) x 7.70% = $2,477.50
- ($95,812 - $83,452) x 10.50% = $1,295.20
- ($116,344 - $95,813) x 12.29% = $2,516.66
- ($157,748 - $116,345) x 14.70% = $6,080.85
- ($220,000 - $157,749) x 16.80% = $10,435.21
- ($250,000 - $220,000) x 20.50% = $6,150.00
2. Sum up the tax for each tax bracket:
$2,110.93 + $2,477.50 + $1,295.20 + $2,516.66 + $6,080.85 + $10,435.21 + $6,150.00 = $31,066.35
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2. The Pennington Corporation issued new bonds 23 years ago. The bonds have a coupon rate of 12 percent, semi-annual payments, and were sold at their par value of $1,000. The 30-year bonds have 7 years remaining to maturity and the level of interest rates has declined. If the required rate of return for this bond is 10 percent, what is the intrinsic value of the bond? a) $1,693 c) $705 e) $1,099 b) $1,058 d) $1,189
The intrinsic value of the bond is $1,693.
To calculate the bond's intrinsic value, we need to determine the present value of its future cash flows, which include the remaining coupon payments and the final principal payment. The required rate of return is given as 10%.
Since the bond makes semi-annual coupon payments, we need to adjust the required rate of return to a semi-annual basis. Dividing the required rate of return by 2 gives us a semi-annual discount rate of 5%.
Next, we calculate the present value of the remaining coupon payments and principal payment using the semi-annual discount rate and the time remaining to maturity, which is 7 years. The coupon payments are discounted using an annuity formula, and the principal payment is discounted using a present value formula.
Adding the present values of the coupon payments and principal payment gives us the bond's intrinsic value:
Intrinsic value = Present value of remaining coupon payments + Present value of principal payment
By calculating the present value of the remaining coupon payments and principal payment using the given information and the semi-annual discount rate of 5%, we find that the bond's intrinsic value is $1,693.
Therefore, the intrinsic value of the bond is $1,693.
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It's time to apply what we're learning about market structures in our session this module week! Based on your last name, you will be assigned to two of the four market structures. Identify and discuss two U.S.firms whose key characteristics align with your specific market structures. Determine the equilibrium point for each of your firm's market structures. Here are your assigned market structures: • If your last name begins with the letters A-L, identify perfectly competitive market structures and monopolistic competitive market structures. • If your last name starts with the letters M-Z, identify oligopolistic market structures and monopolistic market structures. SE P O 5 M – Locate a recent article or event (published within the last year) that highlights your relevant microeconomics topic. Use the Hunt Library, newspapers, new stations, or other credible sources to discuss how your topic aligns with microeconomics. Include the following in your discussion: • State the firms you selected. • Identify the equilibrium point for each market structure assigned. • Describe your assigned market structures. Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.
Perfectly competitive market structures are characterized by low barriers to entry, a large number of buyers and sellers, perfect information availability, homogeneous goods, and price takers.
What do they entail?Monopolistic competitive market structures are similar to perfectly competitive market structures, but the difference is that firms can differentiate their products, resulting in a smaller number of close substitutes and firms having some pricing power.
Oligopolistic market structures involve a small number of dominant firms in the market, which produce homogeneous or differentiated goods.
Monopolistic market structures are dominated by a single firm that produces a unique product with no close substitutes.
Let's discuss two U.S. firms, along with their market structures:
Firm 1: McDonald's Corporation
McDonald's is an American fast-food corporation that operates in more than 100 countries. McDonald's operates in a monopolistic competitive market structure.
The company produces goods that are different from their competitors, such as the Big Mac.
Because the goods have differentiated features, McDonald's has some degree of market power to set its own price.
Equilibrium Point: Equilibrium is reached in the long run when there is no economic profit in the market structure.
The equilibrium point in the monopolistic competitive market structure occurs where the firm's average total cost (ATC) curve and the demand curve intersect.
Firm 2: PepsiCo, Inc.
PepsiCo is an American multinational food and beverage corporation.
PepsiCo operates in an oligopolistic market structure because there are few dominant firms that produce similar goods such as Coca-Cola and Dr. Pepper.
These firms often engage in price wars, which are characteristic of an oligopoly.
Equilibrium Point: The equilibrium point in an oligopoly market structure depends on the reaction of competing firms to price changes.
The kinked demand curve model is one model used to determine the equilibrium point in an oligopoly.
In the kinked demand curve model, the equilibrium price and quantity occur at the point where marginal revenue equals marginal cost.
In conclusion, the identification of market structures for firms and the determination of the equilibrium point can be beneficial in developing a successful business strategy.
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Why is the present value of money to be paid in the future less than the amount to be paid, but the future value of money invested now and withdrawn later is greater than the original investment. [10
The present value of money is less in the future due to the time value of money, while the future value of money invested now is higher due to compounding over time.
The present value of money to be paid in the future is less than the amount to be paid because of the time value of money. Money has the potential to earn interest or investment returns over time, so receiving a payment in the future is worth less in today's terms.
On the other hand, the future value of money invested now and withdrawn later is greater than the original investment because of the compounding effect. The invested money has the opportunity to grow over time through interest or investment returns, resulting in a higher value in the future.
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(4) We consider a single-period model with three securities: the bank account whose price process is A(0) = A(1) = 1, and two stocks with price processes given by S₁ (0)s for some s > 0, 1. 3 in scenario w₁ S₁ (1) = 0. 3 in scenario ₂ 0. 3 in scenario w3 and S₂(0) = 1. 1, 1. 6 in scenario W₁ S2(1) 1. 1 in scenario wą 0. 6 in scenario wa where p, q € (0, 1). (a) Find all risk neutral probabilities depending on s. (b) Consider a model consisting only of the bank account and the first stock. Determine all risk-neutral probabilities (depending on the parameters). (c) Consider a model consisting only of the bank account and the second stock. Determine all risk-neutral probabilities. (d) Let s 0. 9. Find an arbitrage opportunity for the model consisting of the three securities. (e) In (d), is there an arbitrage opportunity if transaction costs of 10% apply on the transaction volume of the first stock (no transaction costs on the second stock and the bank account)
(a) To find risk-neutral probabilities, equations based on scenarios are solved.
(b) Risk-neutral probabilities in a model with a bank account and the first stock are determined by expected returns and equations.
(c) Similarly, in a model with a bank account and the second stock, risk-neutral probabilities are determined using expected returns and equations.
(d) At s = 0.9, an arbitrage opportunity exists in a three-security model.
(e) In scenario (d), even with 10% transaction costs on the first stock, there is still an arbitrage opportunity.
(a) To find the risk-neutral probabilities depending on s, we need to set up equations based on the given scenarios and solve for the probabilities.
(b) In the model consisting of the bank account and the first stock, the risk-neutral probabilities can be determined by considering the expected returns and setting up equations.
(c) Similarly, in the model consisting of the bank account and the second stock, the risk-neutral probabilities can be determined by considering the expected returns and setting up equations.
(d) If s = 0.9, there is an arbitrage opportunity in the model consisting of the three securities.
(e) In scenario (d), if transaction costs of 10% apply on the transaction volume of the first stock but no transaction costs apply to the second stock and the bank account, there is still an arbitrage opportunity.
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Briefly describe the story in the article. What institutional
voids are missing in the focal country? If you were Steve Jobs,
what would you have done to those stores? Why?
The article describes how Apple's retail stores in China have been struggling in recent years. The company has closed several stores and is facing increasing competition from local rivals.
One of the main reasons for Apple's struggles is the lack of institutional support for its retail model. In China, there is no strong tradition of customer service or retail experience. This has made it difficult for Apple to attract and retain customers.
If I were Steve Jobs, I would have focused on building a strong retail presence in China. I would have invested in training and development for my employees, and I would have created a more customer-focused environment in my stores. I would have also worked to build relationships with local partners and suppliers. By doing these things, I believe that I could have helped Apple succeed in China.
Here are some of the institutional voids that are missing in China that are hindering Apple's retail stores:
* Weak customer service culture: In China, there is a long tradition of customer service being seen as a low-status job. This has made it difficult for Apple to attract and retain qualified employees for its retail stores.
* Lack of retail experience: China has a relatively young retail market. This means that there is a lack of experienced retailers in the country. This has made it difficult for Apple to find partners who understand its retail model and can help it execute it effectively.
* Unfavorable regulatory environment: The Chinese government has a history of interfering in the retail market. This has made it difficult for Apple to operate its stores in China without facing government interference.
If Steve Jobs were alive today, he would likely address these institutional voids by taking the following steps:
* Invest in training and development for employees: Apple could invest in training and development programs for its employees in China. This would help to improve the customer service skills of its employees and make them more knowledgeable about Apple products and services.
* Create a more customer-focused environment in stores: Apple could create a more customer-focused environment in its stores in China. This could be done by hiring more experienced retail employees and by providing better training for all employees.
* Build relationships with local partners and suppliers: Apple could build relationships with local partners and suppliers in China. This would help Apple to better understand the local market and to find ways to operate its stores more effectively.
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Project Description: Display advertising is highly efficient because of its ability to target niche audience segments. On most websites today, you can see display ads that are placed there so that you see the marketer's message. For Project 2, you will go online to some of your favorite websites and pick an in-page banner ad that you found interesting as a consumer. Then reply to the following questions: 1. Take a screenshot of the ad and include it with your Project 2 submission. 2. What type of display ad was it? Explain why you think that. 3. Who do you think is the target for this ad? Describe the target audience in detail. 4. What is the measure of success you believe the marketer is using for this ad? Explain why. Your answers must be more than 300 words total. Submit your work to Project 2 in Moodle.
,Here is a broad response to guide you through the process. For an effective analysis of the display ad, it's important to consider its type, which could be a static image, GIF, video, or HTML5, and why it caught your attention.
This could involve the ad's visuals, messaging, or relevance. Then, try to determine its target audience based on the product, language used, and the website on which it was placed. Lastly, assess the ad's success measure, which could be driving website traffic, promoting brand awareness, or increasing sales or sign-ups.
As this task requires personal input, it is recommended that you choose an ad that speaks to you personally. It will be easier to evaluate its target audience, the type of the ad, and the perceived measure of success. Look at where the ad is placed and what kind of product or service it is promoting. Remember, the success of a display ad often depends on its ability to reach the right audience with the right message.
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