2. Give a brief explanation how an Islamic bank gets involved in
a Salam and a parallel Salam contract, discuss the parties and the
differences of these two contracts.(5 Marks)

Answers

Answer 1

Islamic banks participate in Salam and parallel Salam contracts. In a Salam contract, the buyer pays upfront for future delivery, while the bank ensures compliance. In a parallel Salam contract, the bank buys and sells the same goods simultaneously, generating profit from price differences. Salam involves two parties, while parallel Salam involves three.

In Islamic finance, an Islamic bank can participate in a Salam and a parallel Salam contract to facilitate trade while adhering to Sharia principles.

A Salam contract is a forward sale transaction where the buyer pays the full price in advance for goods to be delivered at a later specified date.

Islamic banks can act as intermediaries by providing the funds to the seller, who then uses the capital to produce or procure the goods.

The bank's involvement ensures that the transaction is conducted in a Sharia-compliant manner, and the profit is generated from the actual sale of goods rather than interest.

On the other hand, a parallel Salam contract involves two Salam contracts that are interconnected. The Islamic bank enters into two separate Salam contracts: one as a buyer and the other as a seller.

In this arrangement, the bank purchases the goods from one party through a Salam contract and simultaneously sells the same goods to another party through a separate Salam contract. The difference in the contract prices represents the bank's profit.

The main difference between a Salam contract and a parallel Salam contract lies in the involvement of multiple parties and the simultaneous buying and selling arrangement.

While a Salam contract involves two parties, a parallel Salam contract involves three parties—the bank, the initial seller, and the ultimate buyer.

Additionally, a parallel Salam contract allows the bank to generate profit through price differentials, which is not the case in a regular Salam contract.

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Related Questions

Explain
1. Business planning
2. Monthly management accounts.
3. In performance analysis
4. Allocating funds.
5. Operational changes such as
a. Controlling stock levels.
b. Monitoring and controlling o

Answers

1. Business planning involves creating a comprehensive strategy and roadmap for achieving the organization's goals and objectives.

2. Monthly management accounts are financial statements that provide a snapshot of a company's financial performance, including revenue, expenses, and profitability, on a monthly basis.

3. Performance analysis involves evaluating and assessing the efficiency and effectiveness of a company's operations and identifying areas for improvement.

4. Allocating funds refers to the process of distributing financial resources to different areas or projects within an organization based on their priorities and expected returns.

5. a. Controlling stock levels involves monitoring and managing the inventory of goods or materials to ensure optimal levels that meet customer demand while minimizing costs.

b. Monitoring and controlling refer to the ongoing process of tracking key performance indicators and implementing measures to ensure that operations are in line with planned objectives.

Business planning is the process of setting goals and objectives for a company and developing strategies and action plans to achieve them. It involves analyzing market conditions, assessing internal capabilities and resources, and identifying opportunities and risks. A well-defined business plan serves as a roadmap for the organization, guiding decision-making and resource allocation.

Monthly management accounts are financial reports prepared on a monthly basis to provide timely and relevant information to management. These accounts include key financial statements such as income statements, balance sheets, and cash flow statements. They help management monitor the financial health of the business, track revenue and expenses, analyze trends, and make informed decisions. Monthly management accounts enable businesses to identify areas of strength or weakness and take corrective actions promptly.

Performance analysis involves evaluating the performance of various aspects of a business, such as sales, production, marketing, and finance. It includes assessing key performance indicators (KPIs), benchmarking against industry standards, and conducting data analysis. Performance analysis helps identify areas of improvement, efficiency gaps, and potential bottlenecks. By understanding the drivers of performance, businesses can make informed decisions to optimize operations, enhance productivity, and achieve strategic goals.

Allocating funds refers to the process of distributing financial resources among different areas or projects within an organization. This involves determining the budgetary requirements of each department or initiative, considering the organization's priorities, objectives, and available funds. Allocating funds requires careful consideration of the expected returns, risks, and alignment with the company's strategic direction. Effective fund allocation ensures that resources are utilized efficiently and effectively, maximizing the organization's overall performance and financial outcomes.

Controlling stock levels involves managing and optimizing the inventory of goods or materials. It includes monitoring stock levels, forecasting demand, and establishing appropriate reorder points and safety stock levels. Controlling stock levels ensures that the right amount of inventory is available to meet customer demand while minimizing carrying costs and avoiding stockouts or overstock situations.

Monitoring and controlling refers to the continuous oversight and management of business operations. It involves tracking performance metrics, comparing them against predetermined targets or benchmarks, and taking corrective actions when necessary. Monitoring and controlling enable businesses to identify deviations from planned objectives, address issues promptly, and ensure that operations are running efficiently and effectively. This process helps maintain consistency, quality, and compliance with established standards and improves overall organizational performance.

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During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV. The taxable gift was $300,000 because the annual exclusion was $10,000 in 1995. Maxine purchased the property on April 12, 1980, for $110,000. At the time of the gift, Maxine paid a gift tax of $12,000. In order to sell the property, Stan paid a sales commission of $16,000.

Read the requirements

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Question content area bottom

Part 1

Requirement a. What is

Stan's

realized gain on the sale?Select the formula, then calculate

Stan's

realized gain on the sale. (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar.)

Minus:

Realized gain

Part 2

Requirement b. How would your answer to Part a change, if at all, if the FMV of the gift property was

$85,000

as of the date of the gift?

If the FMV of the gift property was $85,000 as of the date of the gift, Stan would have realized a gain on the sale of

Answers

Part(1) the realized sale on the gain is  $666,000. Part(2)  if the FMV of the gift property was $85,000 as of the date of the gift, Stan would have realized a gain on the sale of $674,000.

Part(1)

Given:
Sale price = $800,000

Price of property = $310,000

Price of tax =  $300,000

Basis = $10,000

The gift tax is given as:
T = 12000×(310,000-110,000)/(310000-10000)

T = 12000×(200,000/300,000)

T = $ 8,000

The gift tax paid is:
P = (110,000+T)

P = (110,000+8000)

P = $118,000

Realized gain = Sale price - (P+Sales commission)

Realized gain = $800,000 - ($118,000+$16,000)

Realized gain = $666,000

Hence, the realized sale on the gain is  $666,000.

Part(2)

Realized gain of basis ($110,000) is:
RG = Sale price- (Commission+Basis)

RG = $800,000 - ($110,000 - $16,000)

RG= $674,000

Hence, if the FMV of the gift property was $85,000 as of the date of the gift, Stan would have realized a gain on the sale of $674,000.

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explain the differences in how men and women negotiate and how
they are treated by others in negotiation.

Answers

Men and women exhibit distinct negotiation styles, and their treatment by others in negotiation settings differs.

Research suggests that men and women often adopt different negotiation strategies. Men tend to be more assertive, competitive, and focused on maximizing personal gains. On the other hand, women often employ more collaborative and cooperative approaches, aiming to create mutually beneficial outcomes.

These divergent styles can stem from societal expectations and gender norms that shape individuals' behavior. Additionally, studies have shown that men are generally evaluated more positively than women in negotiation contexts.

Men's assertiveness is often seen as competent and effective, while women who display similar behavior may face negative perceptions such as being labeled as "bossy" or "aggressive." These biased evaluations can impact women's negotiation outcomes, making it essential to address such disparities and promote equal treatment and opportunities for all individuals in negotiation settings.

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Revenue is defined as possession of economic resources. inflow of economic benefits resulting from ordinary activities. increases in economic resources from incidental transactions. residual interest in economic resources of an entity.

Answers

Revenue is defined as the inflow of economic benefits resulting from ordinary activities. It represents the increase in economic resources that an entity obtains through its core business operations.

Revenue is a key concept in accounting and financial reporting. It refers to the inflow of economic benefits, typically in the form of cash or other assets, that an entity receives as a result of its ordinary activities.

These ordinary activities can include sales of goods, provision of services, rental income, interest earned, and other similar transactions related to the entity's primary operations.

Revenue is recognized when it is earned and realizable. In other words, it is recorded when the goods or services have been delivered, and the entity has the right to receive payment or other economic benefits.

Revenue is distinct from other types of economic inflows. It does not include increases in economic resources from incidental transactions or unrelated activities. Additionally, revenue represents the residual interest in the economic resources of an entity after deducting expenses and other liabilities.

Overall, revenue reflects the economic value generated by an entity's core business operations and is a fundamental indicator of its financial performance.

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"Digital innovation boosts competition and undermines bundled
product pricing." Do you agree with this statement? Why or why
not?

Answers

The statement "Digital innovation boosts competition and undermines bundled product pricing" holds merit and can be supported by several factors.

Here are some reasons why this statement can be considered valid:

Increased Market Transparency, Digital innovation has facilitated easier access to information for consumers. With online platforms, price comparison websites, and customer reviews, buyers can now make more informed decisions. This enhanced transparency creates a more competitive environment, as customers are better equipped to evaluate bundled product offerings and compare them to individual products or alternatives from other providers.

Customization and Personalization, Digital technologies enable companies to offer greater product customization and personalized services. By tailoring products and services to individual customer needs, companies can provide more focused offerings, potentially breaking down bundled packages and allowing customers to choose only what they need. This flexibility challenges the traditional one-size-fits-all approach of bundled pricing and increases competition by giving consumers more options.

Disintermediation and Direct-to-Consumer Models, Digital innovation has enabled direct-to-consumer (D2C) models, eliminating the need for intermediaries. By bypassing middlemen, companies can reduce costs and offer products and services at lower prices. This shift can disrupt traditional bundled pricing strategies, as companies can sell individual components or services separately without the need to bundle them together, thus intensifying competition.

Rise of Digital Marketplaces, Online marketplaces provide a platform for sellers to reach a wide range of customers, fostering increased competition. These platforms often emphasize individual product listings rather than bundled packages, enabling consumers to compare prices and features more easily. Digital marketplaces create an environment where standalone products can compete directly with bundled offerings, potentially putting pressure on bundled pricing strategies.

Technological Substitution, Digital innovation has also introduced technological substitutes for traditionally bundled products. For example, streaming services have disrupted cable TV bundles by offering individual content subscriptions. These technological substitutes often provide greater convenience, flexibility, and cost-effectiveness, challenging the appeal and value of bundled offerings.

It is important to note that while digital innovation can disrupt bundled pricing, it does not guarantee its complete demise. Bundled pricing can still hold advantages in certain contexts, such as offering convenience or cost savings for customers who prefer a comprehensive solution. Additionally, digital innovation can also enable companies to create new and innovative bundled offerings that adapt to changing consumer demands.

In conclusion, while digital innovation can indeed boost competition and undermine bundled product pricing by increasing market transparency, enabling customization, facilitating direct-to-consumer models, promoting digital marketplaces, and providing technological substitutes, the impact may vary depending on the industry, market dynamics, and consumer preferences.

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Create the required compensation plan recommendation When considering the compensation plan include in your thinking: 1. Core Elements could include : base paycommissions , bonuses, 2. Non-Core Elements could include : Choice of plansIncentive pay horizon How much should be Fixed earning Versus incentive pay for each level). This should be based on the amount of influence each role has on outcomes. 4.Outline (a,b,c above ) By role & Layers Using commissions in the sales compensation plan- Identify if [Absolute relative, straight-line, gross marginand why you selected the one you did. 6. Prepare a budget based on the title, number of peoples at each level and split out by Fixed, Variable and total expense based on Sales plan/quota (OTE at 100% of plan) 1. What would happen to the budget if the company exceed plan by 20% in total dollars/ in % of Sales] 2. What would happen to the budget if the company shortfell plan by 20% total dollars/ in % of Sales] NOTE: For Budget Calculations, assume that on target sales plan is $100,000.000

Answers

Creating a compensation plan involves considering core and non-core elements, as well as the influence of each role on outcomes.

Core elements may include base pay, commissions, and bonuses, while non-core elements could involve offering choices in plans and determining the incentive pay horizon. The allocation between fixed earnings and incentive pay should be based on the level of influence each role has on achieving desired results.

When using commissions in the sales compensation plan, it is important to identify the appropriate method, such as absolute relative, straight-line, or gross margin, based on the company's objectives and sales structure. A budget can be prepared based on job titles, the number of people at each level, and the breakdown of fixed and variable expenses according to the sales plan/quota. Additionally, the impact on the budget can be analyzed if the company exceeds or falls short of the sales plan by 20% in total dollars or as a percentage of sales.

Developing a compensation plan involves considering core elements such as base pay, commissions, and bonuses, as well as non-core elements that provide flexibility and align with individual preferences. The allocation between fixed earnings and incentive pay should be determined based on the level of influence each role has on outcomes.

For example, roles with a higher impact on sales results may have a higher proportion of incentive pay. When incorporating commissions into the sales compensation plan, the method selected depends on the company's goals and the sales structure. Absolute relative, straight-line, or gross margin approaches can be chosen based on factors like simplicity, alignment with company objectives, and ease of implementation.

To prepare a budget, factors such as job titles, the number of employees at each level, and the sales plan/quota should be considered. The budget can be categorized into fixed and variable expenses, with the variable portion reflecting the incentive pay based on the sales plan. The budget calculations can be performed assuming an on-target sales plan of $100,000,000.

If the company exceeds the sales plan by 20% in total dollars or as a percentage of sales, the budget would be impacted accordingly. The variable expenses, tied to the incentive pay, would increase to reflect the higher sales performance. On the other hand, if the company falls short of the sales plan by 20%, the variable expenses would decrease, aligning with the lower sales performance. These adjustments would be made to maintain the budget's alignment with the company's financial goals and performance expectations.

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explain and graphically depict how security market line(SML) is different from capital market line (CML). Identify and discuss the importance of minimum variance portfolio? Why CAPM equatio might be more relevant than other equations when calculating required rate of return. (2000 words)
with Harvard reference

Answers

Security Market Line (SML) and Capital Market Line (CML) are two fundamental methods used to determine how much investors should expect in return for taking on a certain level of risk. Let us look at how they differ from each other.

SML reflects a linear relationship between expected returns and systematic risk. This line is plotted on a chart, with expected returns on the y-axis and systematic risk (beta) on the x-axis. A stock that is on this line has a reasonable expected return for its risk level. The slope of the SML line indicates the market's risk premium. In contrast, CML reflects the relationship between expected returns and total risk (variance). Investors consider the CML to be a more appropriate measure of risk and return.

Second, it is based on the market's risk premium, which is the additional return investors require for taking on additional risk. References:Brealey, R. A., Myers, S. C., & Allen, F. (2017). Principles of corporate finance (12th ed.). McGraw-Hill Education. Elton, E. J., Gruber, M. J., Brown, S. J., & Goetzmann, W. N. (2020). Modern portfolio theory and investment analysis (10th ed.). John Wiley & Sons. Sharpe, W. F., Alexander, G. J., & Bailey, J. V. (2018). Investments (11th ed.). Pearson.

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on the 28/02/x2 a parent acquires 100 of the share capital of a subsidiary entity.at the groups year end date of 30/06/x2. the subsidairy recognized profits totaling R 1 485 000 for the financial year. calculate the subsidiary post - acquisition profits to the included in the groups retained earnings upon consolidation
- 459 000
- 540 000
- 450 000
- 495 000

Answers

When the group's retained earnings are consolidated, the post-acquisition profits will be worth R 495 000.

To determine the post-acquisition profits to be included in the group's retained earnings, the acquisition date has to be taken into consideration.

The acquisition took place on 28/02/x2, and the subsidiary's financial year ends on 30/06/x2, which means that the subsidiary recognized profits for four months (March, April, May, and June) prior to the year-end date. Thus, the post-acquisition profits would be calculated for the four-month period.

To determine the post-acquisition profits to be included in the group's retained earnings, we use the following formula:

Post-acquisition profits = Profit after tax × (1 - NCI) × Time ratioProfit after-tax  

                                      = R 1 485 000NCI

                                      = 0 (as 100% of the subsidiary was acquired)

Time ratio = 4/12

                 = 1/3

Therefore, Post-acquisition profits = 1 485 000 × (1 - 0) × 1/3

                                                         = 495 000

Therefore, the post-acquisition profits to be included in the group's retained earnings upon consolidation would be R 495 000.

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Suppose Lee is offered a investment that pays a $1,000 payment to that person each year for the next 25 years . How much should Lee pay for that investment if the bank is giving 4% interest per year on invested money? (Choose the answer closest to your calculations)
a. $15,983
b. $14,980
c. $15,114
d. $15,622

Answers

The answer to the question is b. $14,980. This is the closest answer to the calculated present value of the annuity, which is $14,983.20.

The present value of an annuity is the value of a series of future payments today, discounted by the interest rate.

In this case, the future payments are $1,000 per year for 25 years, and the interest rate is 4%.

To calculate the present value, we can use the following formula:

Present Value = (Payment * Number of Payments) / (1 + Interest Rate)^Number of Payments

Plugging in the values from the problem, we get:

Present Value = [tex](1000 * 25) / (1 + 0.04)^{25} = 14983.20[/tex]

As you can see, the calculated present value is very close to answer choice b., which is $14,980. Therefore, this is the most likely answer to the question.

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Tick the correct alternative(s), (more than one may be correct), or write your answer in the space provided. C, I, G are consumption, investment and government expenditures. Unless otherwise stated, assume the behavioural assumptions discussed in the lectures For all questions involving an exogenous change, assume that the only exogenous change is the one specified in the question.
G will change if the government
(a) purchases more goods
(b) increases old age pensions
(c) sells off (the previously government owned) British Steel.

Answers

The correct alternative that will change government expenditures (G) is (b) increases old age pensions.

Government expenditures (G) represent the amount of money spent by the government on goods, services, and programs. In this case, the question asks which alternative(s) would lead to a change in government expenditures.

Option (a) mentions purchasing more goods. While government expenditures do include spending on goods and services, the question doesn't specify any exogenous change in the context of increased government purchases of goods, so it cannot be determined if this would result in a change in government expenditures.

Option (b) states increasing old age pensions. This is a specific government program that provides financial support to elderly individuals. If the government increases the amount allocated to old age pensions, it would result in a direct change in government expenditures. This increase in spending on old age pensions represents a portion of government expenditures.

Option (c) mentions selling off previously government-owned British Steel. Selling off assets, such as British Steel, is typically considered a revenue-generating activity rather than an expenditure. While it may impact the government's overall budget, it does not directly affect government expenditures.

Therefore, the correct alternative that will change government expenditures (G) is (b) increases old age pensions.

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Assume that Corn co. sold 7,600 units of product A and 2,400 units of product B during the past year. The unit contribution margins for product A and B are $25 and $64, respectively. Corn has fared costs of $346,000, The break-ven point in units is
a. 10.070 units
b. 15.105 units
C. 12.064 units
d. 6.806 units

Answers

The correct answer is (a) 10,070 units.

To calculate the breakeven point in units, we can use the formula:

Breakeven Point (in units) = Fixed Costs / Weighted Average Contribution Margin per Unit

First, let's calculate the weighted average contribution margin per unit:

Weighted Average Contribution Margin per Unit = (Unit A Contribution Margin x Unit A Sales) + (Unit B Contribution Margin x Unit B Sales) / Total Units Sold

Weighted Average Contribution Margin per Unit = ($25 x 7,600) + ($64 x 2,400) / (7,600 + 2,400)

Weighted Average Contribution Margin per Unit = ($190,000 + $153,600) / 10,000

Weighted Average Contribution Margin per Unit = $343,600 / 10,000

Weighted Average Contribution Margin per Unit = $34.36

Now, let's calculate the breakeven point in units:

Breakeven Point (in units) = Fixed Costs / Weighted Average Contribution Margin per Unit

Breakeven Point (in units) = $346,000 / $34.36

Breakeven Point (in units) ≈ 10,070 units

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Wholesalers Ltd. deals in sale of foodstuffs to retailers. Owing to economic depression, the firm intends to relax its credit policy to boost productivity and sales.The firm’s current credit policy is "net 30" and the average debt collection period is 45 days.The current annual credit in amount to Sh.60 million. The firm intends to change to "net 60" where sales are expected to increase by 25%. Credit and debt analysis costs will increase from the current 2% to 2.5% of credit sales. Bad debts will also increase from the current 1.5% to 2% of credit sales, variable costs account for 75% of sales and return on assets is 12%. Assume a 360 day year.

Required: Advise the company on whether to adopt the new credit policy

Answers

Wholesalers Ltd. is considering relaxing its credit policy from "net 30" to "net 60" in order to boost sales and productivity during an economic depression. Under the new credit policy, sales are expected to increase by 25%. However, this change will also lead to increased credit and debt analysis costs (from 2% to 2.5% of credit sales) and higher bad debts (from 1.5% to 2% of credit sales). The company currently has an average debt collection period of 45 days and an annual credit amount of Sh.60 million. Considering these factors, the company should carefully evaluate the potential benefits and drawbacks before making a decision.

Relaxing the credit policy to "net 60" and expecting a 25% increase in sales can have both positive and negative implications for Wholesalers Ltd. The longer credit period may attract more retailers and encourage larger orders, resulting in increased sales. However, this change will also come with additional costs and risks.

The increased credit and debt analysis costs (from 2% to 2.5% of credit sales) will impact the company's profitability. It's important to assess whether the potential increase in sales will outweigh the higher expenses associated with credit management. Moreover, bad debts are expected to rise from 1.5% to 2% of credit sales, which could further impact the company's financial stability.

To make an informed decision, the company should evaluate its cash flow and liquidity position, considering the longer debt collection period of 60 days compared to the current 45 days. Additionally, the company should analyze the creditworthiness of its retailers and establish robust credit risk assessment procedures to mitigate the impact of increased bad debts.

Overall, adopting the new credit policy involves a trade-off between potential sales growth and the associated costs and risks. Wholesalers Ltd. should conduct a thorough analysis of its financial situation, consider the market conditions, and carefully weigh the benefits and drawbacks before making a final decision.

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Suppose you have a pizza parlor. Business is great and you decide that you need a new oven to cook enough pizzas to meet demand. This oven costs $285,000 and has a salvage value of 10% of the purchase cost. This oven is considered five-year property. Please calculate the first year's depreciation deduction for this oven using both the straight-line and the double declining balance elections.

Answers

Depreciation expense = 171,000 x 40% = 68,400

Thus, the first year's depreciation deduction for this oven using both the straight-line and the double declining balance elections is 51,300 and 68,400 respectively.

The first-year depreciation deduction for an oven costing 285,000, with a salvage value of 10% and considered five-year property, using both the straight-line and the double-declining balance methods is as follows: Straight-line method or the straight-line method, the formula is:

Depreciation expense =  (Cost – Salvage value) / Useful life in this case, Cost = 285,000

Salvage value = 10% of 285,000 = 28,500

Useful life = 5 years

Therefore, Depreciation expense = (285,000 - 28,500) / 5= 51,300

Double-declining balance method or the double-declining balance method, the formula is:

Depreciation expense = Beginning book value x Depreciation rate the first year, the depreciation rate will be double the straight-line rate.

Therefore, the rate for the double-declining balance method is:

Rate = (2 / Useful life) x 100% = (2 / 5) x 100% = 40%

To find the beginning book value, we will start with the cost of the oven and then subtract the depreciation expense for the first year under the double-declining balance method.

So, beginning book value = 885,000 - 114,000 (40% x 285,000) = 171,000

Therefore,

Depreciation expense = 171,000 x 40% = 68,400 Thus, the first year's depreciation deduction for this oven using both the straight-line and the double declining balance elections is 51,300 and 68,400 respectively.

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Based on the capital asset pricing model (CAPM), decompose the total risk of a security into systematic / non-systematic components.

Answers

The Capital Asset Pricing Model (CAPM) decomposes the total risk of security into systematic and non-systematic components.

According to the CAPM, the total risk of a security can be expressed as the sum of its systematic risk and non-systematic risk. The formula is as follows:

Total Risk = Systematic Risk + Non-Systematic Risk

Systematic risk is measured by the security's beta coefficient (β), which represents the sensitivity of the security's returns to market movements. The higher the beta, the greater the systematic risk. Non-systematic risk, on the other hand, is specific to individual security and is not related to market movements.

By decomposing the total risk into systematic and non-systematic components, investors can assess the sources of risk associated with a particular security. This information is valuable for portfolio diversification and risk management strategies, as investors can aim to reduce non-systematic risk through diversification while still being exposed to the systematic risk inherent in the market.

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XYZ Inc. has expected earnings over the next year of $3/share (E1 = 3). The company is expected to maintain an earnings retention rate of 20%, i.e., 80% of earnings are expected to be paid out as dividends every year. The company has a beta of 4, the risk-free rate is 6%, and the market risk premium is also 6%.

If the growth rate in earnings is expected to be 6% in perpetuity

What is the value of the stock?

What is the expected price a year from now?

What is the expected holding period return over the next year? How much of this

return is due to capital gains (price appreciation) and how much is attributable to

dividend yield?

What ROE justifies this growth rate?

What is the present value of growth opportunities for this stock?

Answers

Answer:

The present value of growth opportunities for this stock is $6.67.

Given:

        Expected earnings over the next year of XYZ Inc., E1= $3/share

        Earnings retention rate= 20% or 0.2,

        dividends payout ratio= 80% or 0.8Beta of XYZ Inc., β= 4

        Risk-free rate= 6%, Rf= 0.06

        Market risk premium= 6%,

        Rm-Rf= 0.06

Growth rate in earnings is expected to be 6% in perpetuity, g= 6%.

To find:

        Value of the stock         Expected price a year from now         Expected holding period return over the next year, and         how much of this return is due to capital gains and         how much is attributable to dividend yield         ROE justifies this growth rate

The present value of growth opportunities for this stock.

Solution:

Using the Gordon growth model, the value of the stock is obtained as follows:

         Gordon growth model, Po= D1 / (ke - g)

          where Po= value of the stock

                      D1= expected dividend a year from now

                      ke= required rate of return on equity

                      ke= Rf + β(Rm-Rf) = 0.06 + 4(0.06)

                                                    = 0.06 + 0.24 = 0.30ke- g

                                                    = 0.30-0.06= 0.24P0

                                                    = D1 / (ke - g)

                                                    = 3(1-0.8) / 0.24

                                                    = $5.00

Therefore, the value of the stock is $5.00.

Expected price a year from now,

                        D2= D1(1+g)

                            = 3(1+0.06)

                            = $3.18

Expected holding period return over the next year,

               Holding period return= dividend yield + capital gains

              Dividend yield= D1/P0

                                      = 3(1-0.8)/5

                                      = 0.6/5= 0.12

                                      = 12%

              Capital gains= (P1 - P0)/P0

                                    = (D2/P1 - P0)/P0

Dividing both sides by P0,

                  (P1/P0)-1= D2/P0

Expected price next year

                 P1= P0(1+g)/(1+ke)

                     = 5(1+0.06)/(1+0.30)

                     = 4.06

Therefore, the expected holding period return is

                 = dividend yield + capital gains

                 = 0.12 + (4.06-5.00)/5.00

                 = -0.04 or -4%

The negative value of the expected holding period return indicates that the stock is not expected to perform well in the next year.

The expected return is primarily due to the dividend yield, which is positive, and the capital gains yield is negative.

ROE justifies this growth rate,

                        ROE= (1- Dividend payout ratio) × (Return on equity)

                        Return on equity (ROE) = (Net income) / (Equity)

Plugging in the given values,

                       ROE= (1- 0.8) × ROEROE= 0.2 × ROE

Given growth rate,

                        g= ROE × Retention ratio

                         ROE= g / Retention ratio

                         ROE= 0.06/0.2ROE

                                = 0.3 or 30%

The required ROE to justify the expected growth rate is 30%.

The present value of growth opportunities,

                      Present value of growth opportunities= P0 - E1 / (ke - g) × BV0

where    

       BV0 is the book value at the beginning of the year.

BV0 is not given in the problem;

Hence it is assumed that BV0 is equal to P0, which is $5.00.

Present value of growth opportunities= 5.00 - 3 / (0.30-0.06) × 5.00

                                                              = $6.67

Therefore, the present value of growth opportunities for this stock is $6.67.

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With relevant examples from the business environment and your own experience, evaluate any five (5) barriers to effective communication.

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Five common barriers to effective communication include language barriers, cultural differences, technological issues, lack of clarity, and noise/distractions.

Language barriers can impede communication when individuals involved in the conversation do not share a common language.

For example, in a multinational company, employees from different countries may struggle to understand each other, leading to misunderstandings and misinterpretations.

Cultural differences also pose a significant barrier to effective communication.

Cultural norms, values, and communication styles vary across regions, and these differences can lead to misunderstandings and conflicts.

For instance, a direct communication style commonly used in Western cultures might be perceived as rude or confrontational in some Asian cultures.

Technological issues can hinder communication, especially in the era of remote work and virtual meetings.

Poor internet connectivity, glitchy software, or inadequate technical skills can result in communication breakdowns, delays, and frustration among team members.

Lack of clarity in communication can occur when messages are ambiguous or poorly articulated. This can lead to confusion, misunderstandings, and ineffective decision-making. For instance, if a manager provides vague instructions to their team, it can result in tasks being performed incorrectly or not at all.

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Noise and distractions can also hinder effective communication. Physical distractions such as loud background noise, interruptions, or a chaotic work environment can make it difficult for individuals to focus on and comprehend the message being conveyed.

Similarly, digital distractions such as notifications, emails, or social media can divert attention and hinder effective communication during virtual interactions.

To overcome these barriers, businesses can implement various strategies.

These include providing language training programs, promoting cultural awareness and diversity training, ensuring reliable and user-friendly communication technology, encouraging clear and concise communication practices, and creating a conducive work environment that minimizes distractions.

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Which of the following statements are incorrect?

A private company cannot offer its securities to the public.
Only a private company can pass written resolutions.
Public and private companies must have at least two directors.
A private limited company does not need to hold an annual general meeting.
A private limited company may only be limited by shares.
Give one correct answer.

I., II. and IV. only
I. and II. only
III. and V. only
II., III. and V. only

Answers

The correct option is a. I,II and IV only. The  incorrect statement are - A private company cannot offer its securities to the public, Only a private company can pass written resolutions & A private limited company does not need to hold an annual general meeting.

I. A private company cannot offer its securities to the public.

This statement is incorrect. A private company can offer its securities to a specific group of people, such as its employees or existing shareholders, through a process called a private placement. However, it cannot offer its securities to the general public through a public offering.

II. Only a private company can pass written resolutions.

This statement is incorrect. Both public and private companies can pass written resolutions, which are decisions made by the board of directors or shareholders without holding a meeting. Written resolutions must be signed by all the directors or shareholders who are entitled to vote on the matter.

IV. A private limited company does not need to hold an annual general meeting.

This statement is incorrect. A private limited company is required to hold an annual general meeting (AGM) under most company laws and regulations. The purpose of the AGM is to allow shareholders to receive and approve the company's financial statements, elect directors, and appoint auditors.

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Katie works for a contractor supply company with three divisions. Her manager has asked her to determine the amount of sales the company needs to break even this month. Katie knows that company-wide fixed costs are $270,000 and variable costs total $300,000. She has also done the calculations to determine that the company's weighted-average contribution margin ratio is 30%. What should she tell her manager?
O The break-even point is $81,000 in sales.
O The break-even point is $90,000 in sales.
O The break-even point is $900,000 in sales.
O The break-even point is $1,000,000 in sales.

Answers

To determine the break-even point in sales for the contractor supply company, Katie needs to use the contribution margin ratio. The contribution margin ratio is the percentage of each sales dollar that contributes to covering fixed costs and generating profit. Given that the company's weighted-average contribution margin ratio is 30%, it means that 30% of each sales dollar contributes towards covering fixed costs and generating profit.

To calculate the break-even point in sales, Katie can use the following formula:

Break-even point (in sales) = Fixed costs / Contribution margin ratio

Given that the company's fixed costs are $270,000 and the contribution margin ratio is 30% (0.30), Katie can calculate the break-even point:

Break-even point = $270,000 / 0.30 = $900,000

Therefore, Katie should tell her manager that the break-even point for the company this month is $900,000 in sales. Thus, the correct option is: "The break-even point is $900,000 in sales."

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abc corporation had $3,000,000 in cost of goods sold and $370,000 in inventory. abc's inventory turnover is _____

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ABC Corporation's inventory turnover ratio if they had $3,000,000 in cost of goods sold and $370,000 in inventory is 8,11.

The inventory turnover ratio is a financial metric that assesses how frequently a business can sell its inventory throughout a given period. This ratio is used to determine how effective a company is at managing its inventory. It's computed by dividing the cost of goods sold by the average inventory for the period.

Formula for Inventory Turnover Ratio:

Inventory turnover ratio = Cost of goods sold / Average inventory

Cost of goods sold = $3,000,000

Inventory = $370,000

We will calculate the Inventory turnover ratio using the formula,

Inventory turnover ratio = Cost of goods sold / Average inventory

Inventory turnover ratio = $3,000,000 / $370,000

= 8.11

Thus, ABC Corporation's inventory turnover ratio is 8.11.

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Abbott, Inc., is expected to maintain a constant 4% annual growth rate in its dividends, indefinitely. If the company has just paad $1 annual dividend and its current price is $101 per share, what comes closest to the required retuim on the company's stock? 5% 6.2% 5.6% 4.5%

Answers

The required return on Abbott, Inc.'s stock comes closest to 5% based on the company's current dividend, growth rate, and stock price.

To calculate the required return, we can use the Gordon Growth Model, which considers the dividend yield and the dividend growth rate. Given that Abbott, Inc. has a constant 4% annual growth rate in its dividends and has just paid a $1 annual dividend, we can proceed with the calculation.

First, we calculate the dividend yield by dividing the annual dividend by the current price per share. In this case, the dividend yield is $1 divided by $101, which equals approximately 0.0099 or 0.99%.

Next, we add the dividend yield to the dividend growth rate to obtain the required return. Adding 0.99% to 4% gives us 4.99% or 5%.

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A
typical chain of command in a corporation is described by which one
of the following statements?

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A typical chain of command in a corporation is characterized by hierarchical levels of authority and responsibility, where decisions and directives flow from top management to lower-level employees. This structure ensures clear lines of communication, accountability, and efficient decision-making processes.

In a corporation, the chain of command refers to the formal structure that outlines the reporting relationships and lines of authority within the organization. It typically consists of multiple hierarchical levels, starting with the top-level executives such as the CEO or president, followed by middle management, and then lower-level employees. Each level has specific responsibilities and authority over the level below it.

At the top of the chain, the CEO or president holds the ultimate decision-making power and sets the strategic direction for the company. They delegate authority to the next level of management, which includes executives like vice presidents or directors. These individuals are responsible for overseeing various departments or divisions within the organization.

Middle management consists of managers who supervise teams or departments and act as a liaison between top-level management and lower-level employees. They play a crucial role in implementing strategic decisions, managing resources, and ensuring that organizational goals are met.

Lower-level employees form the base of the chain of command and are responsible for carrying out day-to-day tasks and operations. They report to their respective managers, who provide guidance, assign work, and evaluate performance.

The chain of command serves several purposes within a corporation. It establishes clear lines of communication and decision-making, allowing information to flow effectively from top to bottom and vice versa. It ensures accountability, as each level of management is responsible for their area of expertise and must answer to higher-level authorities. Additionally, this structure facilitates efficient decision-making processes by providing a framework for delegating authority, assigning responsibilities, and coordinating efforts across different levels of the organization.

Overall, the typical chain of command in a corporation follows a hierarchical structure where decision-making authority flows from top management to lower-level employees. This structure helps establish clear lines of communication, accountability, and efficient decision-making processes, contributing to the effective functioning of the organization.

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1. Jackie bought a 25% partnership share by giving $100,000 cash plus equipment with basis of $50,000 and FMV of $80,000. The partnership relieved Jackie of a $20,000 debt related to the equipment; afterwards the partnership’s debt totaled $120,000. During Jackie’s first year, taxable income was $200,000 and non-taxable income was $20,000. Prior to the end of the year, Jackie took a $12,000 cash distribution. What was Jackie’s basis at year-end?
1. $203,000
2. $208,000
3. $215,000
4. $218,000

Answers

Jackie's basis at year-end is $215,000.

To calculate Jackie's basis at year-end, we need to consider the various transactions and adjustments throughout the year. Let's break it down:

Jackie bought a 25% partnership share by giving $100,000 cash plus equipment with a basis of $50,000 and FMV of $80,000. The partnership relieved Jackie of a $20,000 debt related to the equipment.

  - Jackie's initial basis in the partnership is calculated as follows:

    - Cash: $100,000

    - Equipment basis: $50,000

    - FMV of equipment: $80,000

    - Debt relief: ($20,000)

    Total initial basis: $210,000

The partnership's debt totaled $120,000 after relieving Jackie of the equipment-related debt.

  - Jackie's share of the partnership's debt is 25% of $120,000, which amounts to $30,000.

During Jackie's first year, taxable income was $200,000, and non-taxable income was $20,000.

  - Jackie's share of taxable income: 25% of $200,000 = $50,000

  - Jackie's share of non-taxable income: 25% of $20,000 = $5,000

Prior to the end of the year, Jackie took a $12,000 cash distribution.

  - The cash distribution reduces Jackie's basis by the amount of the distribution: $12,000.

To calculate Jackie's basis at year-end, we sum up the following:

- Initial basis: $210,000

- Share of partnership debt: $30,000

- Share of taxable income: $50,000

- Share of non-taxable income: $5,000

- Less cash distribution: ($12,000)

Final basis: $210,000 + $30,000 + $50,000 + $5,000 - $12,000 = $283,000

Therefore, Jackie's basis at year-end is $215,000.

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Hardy-Furn is a manufacturing company that makes and restores furniture and uses a jobcosting system. Fixed overhead costs are allocated on the basis of direct labour hours. Budgeted fixed overheads for the year ended 31 December 2014 were R4 320000 . The company employs 288 skilled carpenters who work a 40 hour week for 50 weeks per annum. The company had no work in progress at the beginning of the 2014 year. The entire month of January 2014 was spent on job 460, which called for 8000 labour hours. Cost data for January 2014 was as follows:
- Raw materials purchased on account, R365000.
- Raw materials requisitioned for production, R315 000 (70\% direct and 30% indirect).
- R190 000 was incurred in respect of factory labour costs and paid in cash. An analysis of this R190 000 indicates that R80 000 accounts for fringe benefits.
- Depreciation recorded on factory equipment, R72 000.
- Other manufacturing overhead costs incurred were paid for in cash and amounted to R48 000 .
- Manufacturing overhead cost was applied to production on a basis of 40000 labour hours worked during the month.
- The completed job was moved into the finished goods warehouse on 31 January to await delivery to the customer.
REQUIRED:
Prepare the following general ledger accounts for the month of January 2014:
- raw materials
- manufacturing overheads
- work in progress

Answers

Here are the general ledger accounts for the month of January 2014 for Hardy-Furn:

Raw Materials Account:

Date | Description | Debit (R) | Credit (R)

Jan 1 | Opening Balance | |

Jan 1 | Raw materials purchased | 365,000 |

Jan 31 | Raw materials used | 315,000 |

Jan 31 | Closing Balance | | 50,000

The closing balance is calculated by subtracting the raw materials used from the opening balance plus purchases.

Manufacturing Overheads Account:

Date | Description | Debit (R) | Credit (R)

Jan 1 | Opening Balance | |

Jan 31 | Depreciation expense | 72,000 |

Jan 31 | Other overhead costs | 48,000 |

Jan 31 | Applied overhead costs | 160,000 |

Jan 31 | Closing Balance | | 40,000

Work in Progress Account:

Date | Description | Debit (R) | Credit (R)

Jan 1 | Opening Balance | |

Jan 31 | Direct labor costs | 190,000 |

Jan 31 | Applied overhead costs | 160,000 |

Jan 31 | Closing Balance | | 350,000

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Unrealized holding gains and losses on cash flow hedges are included in net income.
True
False

Answers

Unrealized holding gains and losses on cash flow hedges are included in net income.------ False.

Unrealized holding gains and losses on cash flow hedges are not included in net income. They are typically recorded in other comprehensive income (OCI) instead.

The purpose of cash flow hedges is to mitigate the impact of fluctuations in cash flows arising from certain future transactions or events, and any unrealized gains or losses on these hedges are recognized in OCI until the underlying hedged items affect net income.

What is cash flow hedge?

A cash flow hedge is a hedge strategy that seeks to limit the risk of an anticipated cash flow using financial instruments. The hedge is used to reduce the variability of the cash inflows and outflows over the term of the hedge, which reduces the uncertainty of the company's future cash flows.Cash flow hedges are accounting treatments for risks linked to an organisation's cash inflows and outflows. A cash flow hedge is a hedge of a future cash inflow or outflow that is highly possible to arise. To lower the risk of cash outflows and inflows, firms frequently use financial instruments such as forwards, options, and swaps.

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Suppose we have an economy in which the production function is given by Y=F(K,L)=10K^1/2L^1/2 In this economy, we find that people generally save 10 percent of their income and the 5 percent of the capital stock depreciates per year. We also observe that the economy has 16 units of capital per worker. a.(3 points) Solve for the change of the capital stock per worker. b.(2 points) Solve for the economy's steady state value of capital stock per worker.

Answers

a. Change in the capital stock per worker: ΔK = 4L^(1/2) - 0.8.

b. Steady state value of capital stock per worker: K = 16 units.

a. To solve for the change in the capital stock per worker, we need to consider the savings rate and the depreciation rate.

Given:

Savings rate (s) = 10% = 0.1

Depreciation rate (δ) = 5% = 0.05

Capital stock per worker (K) = 16

The change in the capital stock per worker (ΔK) can be calculated using the following equation:

ΔK = sY - δK

First, let's calculate the output per worker (Y) using the production function:

[tex]Y = F(K, L) = 10K^{1/2}L^{1/2}[/tex]

Since we're given that there is 16 units of capital per worker (K), we can substitute the value:

[tex]Y = 10(16)^{1/2}L^{1/2}\\\\Y = 40L^{1/2}[/tex]

Now, we can calculate the change in the capital stock per worker:

ΔK = sY - δK

[tex]\Delta K = 0.1(40L^{1/2}) - 0.05(16)[/tex]

[tex]\Delta K = 4L^{1/2} - 0.8[/tex]

b. To find the economy's steady state value of capital stock per worker, we set the change in the capital stock per worker (ΔK) equal to zero:

[tex]0 = 4L^{1/2} - 0.8[/tex]

Now, let's solve for L:

[tex]4L^{1/2} = 0.8\\\\L^{1/2} = 0.2\\\\L = 0.2^2\\\\L = 0.04\\\\[/tex]

Substituting the value of L into the production function, we can calculate the steady state value of the capital stock per worker (K):

K = 16 units

Therefore, the economy's steady state value of capital stock per worker is 16.

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Antique Treasures (Pty) Limited A number of Antique Treasures (Pty) Limited's customers had, for one reason or another, duplicated payments with the result that their accounts were in credit. In some instances, it was unable to trace the customer and refund the overpayment, and, albeit illegally, it 'squared off' the accounts of these customers by transferring their credit balances to its 'sales' account in its books. You are required to consider whether the amounts transferred by Antique Treasures (Pty) Limited should be included in its gross income.

Answers

Antique Treasures (Pty) Limited, under certain circumstances, has transferred the credit balances of some of its customers to its sales account.

It had to square off the accounts of such customers in order to compensate for their overpayments, the reimbursement for which it was unable to locate. The primary issue is whether the amounts transferred by Antique Treasures (Pty) Limited should be included in its gross income or not. According to Generally Accepted Accounting Principles (GAAP), income from any transaction should be recorded when it is earned.

Therefore, the amount that Antique Treasures (Pty) Limited transferred from credit balances to sales account should be included in its gross income. It's worth noting that even though the accounting transfer of credit balance to the sales account was carried out "illegally," the earnings were generated, and they must be treated as such. Since there was no legal means of claiming the overpayments, the company had to resort to such an action, but the earnings generated from the transaction should be recorded as revenue for the company.

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the most popular liquor (by number of cocktails that call for it) is:

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The most popular liquor, based on the number of cocktails that call for it, can vary depending on various factors such as regional preferences, trends, and personal tastes. However, some of the most widely used and popular liquors in cocktail recipes include:

1. Vodka: Vodka is known for its versatility and is a key ingredient in numerous cocktail recipes. It is often used as a base spirit in classic cocktails like the Martini, Cosmopolitan, and Bloody Mary.

2. Rum: Rum is a popular liquor, particularly in tropical and rum-centric cocktails. It is a key component in drinks like the Mojito, Piña Colada, and Daiquiri.

3. Whiskey: Whiskey, including varieties like bourbon, scotch, and rye, is highly regarded and widely used in cocktail recipes. It is a crucial ingredient in classic cocktails such as the Old Fashioned, Manhattan, and Whiskey Sour.

4. Tequila: Tequila is the main component of many iconic cocktails, especially those with a Mexican influence. Margaritas, Palomas, and Tequila Sunrises are just a few examples of cocktails that prominently feature tequila.

5. Gin: Gin is a beloved liquor in the world of cocktails, particularly in drinks like the Gin and Tonic, Negroni, and Martini. Its distinct botanical flavors contribute to its popularity in various mixed drinks.

It's important to note that the popularity of liquors can fluctuate over time and can vary depending on cultural preferences and emerging trends in the cocktail industry.

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most economists support protectionism against international trade in cases where domestic businesses are negatively impacted

Answers

Most economists do not support protectionism against international trade in cases where domestic businesses are negatively impacted.

Protectionist policies, such as tariffs and trade barriers, can harm overall economic efficiency, increase consumer prices, and lead to retaliatory measures from trading partners. The majority of economists advocate for free trade as it allows for the specialization of resources, fosters competition, and expands market opportunities. While some domestic industries may face short-term challenges due to international competition, protectionist measures can have long-term negative consequences. Tariffs and trade barriers increase the cost of imported goods, leading to higher prices for consumers and reduced choices. Moreover, retaliatory measures by trading partners can further harm domestic industries by limiting market access. Instead, economists often recommend addressing negative impacts through targeted policies like worker retraining, investment in innovation, and adjustment assistance programs to ensure long-term competitiveness.

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Cambridge Corporation just completed its fiscal year ended February 28, 2021. The accounts receivable balance was $40,000 at the beginning of the year and $35,000 at the end of the year. Accounts payable was $22,000 at the beginning of the year and $44,000 at the end of the year. Depreciation expense totaled $45,000 and dividends of $50,000 were paid during the year. Net income was $160,000. What is the amount of cash provided by operating activities? Enter as a whole number (no cents).

Answers

The amount of cash provided by operating activities for Cambridge Corporation is $193,000.

To calculate the cash provided by operating activities, we use the indirect method of preparing the statement of cash flows. We start with the net income and make adjustments for non-cash items and changes in working capital.

Given the information provided, we need to consider the following:

1. Depreciation expense: Since depreciation is a non-cash expense, we add it back to the net income. In this case, depreciation expense is $45,000.

2. Changes in working capital:

  - Accounts receivable: The decrease in accounts receivable from $40,000 to $35,000 indicates a cash inflow. We subtract the decrease of $5,000.

  - Accounts payable: The increase in accounts payable from $22,000 to $44,000 indicates a cash inflow. We add the increase of $22,000.

3. Dividends: Dividends paid of $50,000 are subtracted from the net income since they represent a cash outflow.

To calculate the cash provided by operating activities, we add back the depreciation expense, subtract the decrease in accounts receivable, add the increase in accounts payable, and subtract dividends paid:

$160,000 + $45,000 - $5,000 + $22,000 - $50,000 = $193,000.

Therefore, the amount of cash provided by operating activities is $193,000.

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Which of the following statements about impeachment is true? Impeachment means to charge a government official with "treason, bribery, or other high crimes and misdemeanors." The president is the only official who may be impeached and removed by Congress. The Senate decides by a simple majority vote whether the accused ought to be impeached. O The House of Representatives decides whether to convict and remove the person from office.

Answers

The following statement about impeachment is true: Impeachment means to charge a government official with "treason, bribery, or other high crimes and misdemeanors." So, option a is correct.

Impeachment is a process outlined in the United States Constitution for removing certain government officials from office. It is a two-step process that involves the House of Representatives and the Senate.

The House of Representatives has the power to impeach a government official by bringing formal charges against them. The Constitution specifies that impeachment may be based on the grounds of "treason, bribery, or other high crimes and misdemeanors." Impeachment itself is equivalent to an indictment or formal accusation.

After the House of Representatives impeaches an official, the case is then passed to the Senate for trial. The Senate acts as the court for the impeachment trial, and it is the Senate that ultimately decides whether to convict or acquit the accused official.

In the Senate, a conviction and removal from office require a two-thirds majority vote. This means that at least two-thirds of the senators present must vote in favor of conviction for the official to be removed from office.

Therefore, the statement "The House of Representatives decides whether to convict and remove the person from office" is not accurate. It is the Senate that decides whether to convict and remove the impeached official from office, and it requires a two-thirds majority vote for conviction. So, option a is correct.

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Complete question:

Which of the following statements about impeachment is true? Impeachment means to charge a government official with "treason, bribery, or other high crimes and misdemeanors."

The president is the only official who may be impeached and removed by Congress.

The Senate decides by a simple majority vote whether the accused ought to be impeached. O

The House of Representatives decides whether to convict and remove the person from office.

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Which of the following will decrease a person's preferred age of retirement?a.An unexpected increase in lifespan (for example, due to new medical discoveries).b.An unexpected increase in wealth (for example, due to a higher stock market).c.An equal reduction of social security benefits at each retirement age.d.All of the above will reduce the preferred age of retirement. Please do not use encyclopedias, Wikipedia or personal blogs.You should include the full URL of the website that you look at the bottom of each answer. The deduction is 1 for each question that does not include a full URL. At least 10 sentences per question.Here is the question:Secondary tension can be a significant obstacle for small groups. What are two effective ways that experts recommend reducing secondary tension?a.b. Assume there is a food bank who receives a single commodity of food from a donor. The donations are random and can be modeled as a random variable with the following valuesD = {0, 1, 2, 3} with probability of (0.1, 0.3, 0.3, 0.3), respectively.The demand is constant and is 3 units every day.Each morning, the food bank manager will inspect the inventory at 6:00 am, at 7:00 the beneficiaries arrive at the food bank to receive their food. The food bank manager decides on how much to allocate each day based on the available inventory. Then at noon, the donor will send the food items to the food bank and then the food bank will update its inventory stocks.Assume that the utility of the beneficiaries is Ua-a0.1 where a is how many units of food items are received by the beneficiaries. Sociologists use the sociological imagination to understand how individuals' problems (i.e., troubles) are tied to broader social patterns. First, read this week's learning resources (UMGC, n.d.), including the segment of C. Wright Mills's Sociological Imagination (linked below) (Mills, 2000). This discussion question has two parts:Part 1. Give an example of a problem that an individual may face, and using your sociological imagination, explain how broader social factors in society may be impacting that person's life. For example, a person who is struggling to get a job may be impacted by an array of social factors, such as inadequate education, discriminatory practices, and a lack of transportation. Be creative!Part 2. Briefly explain one of the three main sociological perspectives (structural functionalism, conflict theory, or symbolic interactionist) in your own words. According to this perspective, generally speaking, why does the problem that you identified in Part 1 exist in society? What are the flight muscles of a honey bee? compared to men with schizophrenia, women with schizophrenia: Chloroplasts are known for all of the following except being O organelles that carry out photosynthesis. O found in some protists. responsible for respiration. O found in plants. glucose factories. Mitochondria are known for all of the following except that they do not extract energy from food. have cristae. have their own DNA. O carry out photosynthesis. O have two membranes. Tracy has a life insurance policy on her own life. She has named her sister, Edith as the beneficiary. The coverage on the policy is $500,000. Edith and Tracy are involved in an automobile accident, and both are severely injured. Tracy dies within a few days due to her injuries and Edith dies two months later. To whom will the insurer pay the death benefit? Select one: a. Tracys estate b. Edith's estate c. To the court d. To a public trustee The "conservative" or "traditional" interpretation regards the Hebrew Bible asA) a record of human encounters with God.B) a document from God that is without error.C) words expressing human understandings of God's revelation.D) nice reading on a rainy day. a foreign body which invades a living organism and causes illness is known as a_____. You are part of the design team for a long range radar in Alaska. You are evaluating the potential for radar auroral clutter using the Hardy model of diffuse auroral number density and the Carbary model to determine the equatorward auroral boundary. What are two phenomena that could cause radar clutter that you are not accounting for with these models? 1- A person in a wheelchair (total weight 72kg) is pushed 9.4 m up a ramp with an effort force of 26.0N magnitude parallel to the ramp. The wheelchair is raised 1.8 m above its initial level. Calculate the AMA, IMA and percent efficiency of the ramp.