At Level 1 of Kirkpatrick's evaluation framework, is participant reaction surveys or questionnaires. At Level 2, the required data collection methods involve pre- and post-training assessments or tests.
At Level 1 of Kirkpatrick's evaluation framework, the required data collection method is participant reaction surveys or questionnaires. These surveys assess participants' satisfaction, engagement, and perceptions of the training or learning experience.
The purpose is to gather feedback on the program's content, delivery, relevance, and overall effectiveness in meeting participants' needs and expectations. Academic articles such as "Measuring Learning Effectiveness: A Review of Survey Instruments" by Sitzmann and Ely (2011) and "Evaluation of Training: A Review of Survey Instruments" by Arthur Jr. et al. (2003) discuss various survey instruments and approaches for collecting Level 1 data.
At Level 2, the required data collection methods involve pre- and post-training assessments or tests to measure learning outcomes and knowledge acquisition. These assessments evaluate participants' knowledge and skills before and after the training program to determine the extent of learning and improvement achieved.
Academic articles like "Assessing Training Program Effectiveness: A Comprehensive Model" by Alliger et al. (1997) and "A Review of Post-Training Evaluations: Implications for Evaluating Training Effectiveness" by Holton III (1996) provide insights into the design and implementation of Level 2 data collection methods.
Collecting data at Levels 1 and 2 of Kirkpatrick's framework allows organizations to assess participant reactions and learning outcomes, providing valuable insights for evaluating the effectiveness of training programs and making informed decisions for improvement.
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if a man marries his hired housekeeper, the value of gdp:
The value of GDP would not be directly affected by a man marrying his hired housekeeper. Marriage itself is not included as a component of GDP since it does not involve the production of goods or services. GDP measures the total value of goods and services produced within a country's borders during a specific time period. It includes various economic activities such as consumption, investment, government spending, and exports. Marrying someone, while it may have personal and social significance, does not contribute to the production or exchange of goods and services that are included in GDP calculations.
In summary, the act of a man marrying his hired housekeeper would not impact the value of GDP since GDP focuses on economic activities related to the production and exchange of goods and services, rather than personal events or relationships.
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The value of GDP would not be directly affected by a man marrying his hired housekeeper. Marriage itself is not included as a component of GDP since it does not involve the production of goods or services. GDP measures the total value of goods and services produced within a country's borders during a specific time period. It includes various economic activities such as consumption, investment, government spending, and exports. Marrying someone, while it may have personal and social significance, does not contribute to the production or exchange of goods and services that are included in GDP calculations.
In summary, the act of a man marrying his hired housekeeper would not impact the value of GDP since GDP focuses on economic activities related to the production and exchange of goods and services, rather than personal events or relationships.
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are often the primary point of contact for all customer-service-related messages a) Pop-ups b) E-mails c) Websites d) PPC advertisements e) Alt texts
When it comes to customer service, the primary point of contact for all customer-service-related messages are often emails. Emails are an essential tool in customer service since they allow businesses to connect with their customers one-on-one while also providing a paper trail that can be referenced later if necessary. The answer is B.
Emails are also a valuable tool for providing customers with detailed responses that may not be feasible to provide through other forms of communication, such as social media or pop-up messages.
While other forms of communication, such as websites, PPC advertisements, and alt texts, may be useful for reaching out to customers, they may not be the best choice for providing comprehensive customer service.
Pop-up messages can be easily ignored or closed by customers, while websites and PPC ads may not provide enough space for a detailed response. Alt texts are also unlikely to be an effective form of communication with customers since they are typically used for providing descriptions of images to visually-impaired users.The answer is B.
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if an economic action generates more costs than benefits, this indicates that the action
If an economic action generates more costs than benefits, it indicates that the action is not economically efficient or desirable.
In such a situation, the costs outweigh the benefits, which means that the resources invested in the action are not being utilized optimally. Economically efficient actions are those that generate more benefits than costs, maximizing the overall welfare or value created. When an action produces a net loss or negative outcome, it suggests that alternative actions or policies should be considered to achieve a better balance between costs and benefits.
Therefore, if an economic action generates more costs than benefits, it indicates that the action is not economically efficient or desirable.
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On the first of May 2015 Lee and Kim borrowed $250,000 from the Eastside Bank in order to buy an apartment. The
loan was to be repaid through 180 monthly payments over a period of 15 years, with the first payment due on the
first of June 2015, and each payment being the same size. The interest rate charged by the Eastside Bank was
j12=5.04% p.a.
a) Illustrate all the cash flows associated with this loan as a fully labelled timeline diagram.
The timeline diagram for the loan would show the following cash flows:
- On May 1, 2015: Borrow $250,000 from Eastside Bank.
- On June 1, 2015, and for the next 179 months: Make equal monthly payments to repay the loan.
- Each monthly payment includes both principal and interest.
- The interest rate charged by the bank is 5.04% per annum.
In this loan, Lee and Kim borrowed $250,000 on May 1, 2015. Starting from June 1, 2015, they made equal monthly payments for 15 years (180 months) to repay the loan. Each payment consisted of both principal and interest. The interest rate charged by Eastside Bank was 5.04% per year.
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Company X grants 500 share options to an employee, which can be exercised at any time over the next 5 years subject to a 3-year service condition. The fair value of the options is determined to be $50,000 at the grant date. How will the share-based payment expense be recognized?
Review Later
At the end of the 5-year period
Entirely at the grant date
Over the next 3 years
Over the next 5 years
The share-based payment expense will be recognized over the next 3 years.
In this scenario, Company X grants share options to an employee with a 3-year service condition. The fair value of the options is determined to be $50,000 at the grant date. The recognition of share-based payment expense depends on the vesting period and the relevant accounting standards, such as IFRS or GAAP.
Since there is a 3-year service condition attached to the options, the expense will be recognized over the next 3 years as the employee satisfies the service condition. This is known as the vesting period. During each of the 3 years, a portion of the share-based payment expense will be recognized based on the fair value of the options granted.
At the end of the 5-year period, if the employee has fully satisfied the service condition and exercised the options, the entire expense related to the share-based payment would have been recognized. However, until the service condition is met, the expense recognition will be spread over the 3-year period.
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In the current year, Erin, who is in the 32 percent marginal bracket, had the following capital gains (losses) from the sale of her investments: $6,000 unrecaptured §1250 gain, $4,000 gain from the sale of artwork, ($8,000) loss from the sale of antiques, $2,000 LTCG, $25,000 STCG, ($9,000) LTCL, and ($15,000) STCL. What is the amount and nature of Erin's net capital gains or losses for the year? At what rate will they be taxed?
Erin's net capital gains for the year are $1,400, which is a net short-term capital gain. This means that Erin's short-term capital gains will be taxed at her marginal tax rate of 32%.
Erin, who is in the 32% marginal tax bracket, had the following capital gains and losses from the sale of her investments in the current year:
$6,000 unrecaptured §1250 gain
$4,000 gain from the sale of artwork
($8,000) loss from the sale of antiques
$2,000 long-term capital gain (LTCG)
$25,000 short-term capital gain (STCG)
($9,000) long-term capital loss (LTCL)
($15,000) short-term capital loss (STCL)
To calculate Erin's net capital gains or losses for the year, we need to first offset the gains and losses of the same type. Erin has a net short-term capital gain of $10,000 ($25,000 STCG - $15,000 STCL) and a net long-term capital loss of $7,000 ($2,000 LTCG - $9,000 LTCL). We can then offset the net short-term capital gain with the net long-term capital loss to get a net capital gain of $3,000 ($10,000 - $7,000). Since Erin has a positive net capital gain, she has a net short-term capital gain of $1,400, which will be taxed at her marginal tax rate of 32% .
The tax rate on net capital gains depends on the type of gain (short-term or long-term) and the taxpayer's income. For most individuals, the tax rate on net capital gain is no higher than 15%. However, short-term capital gains are taxed at ordinary income tax rates, which can be as high as 37% for the highest income earners. In addition, some or all net capital gain may be taxed at 0% if the taxpayer's income is below certain thresholds. Since Erin has a positive net capital gain, she will owe taxes on it at her marginal tax rate of 32%.
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If you are a startup company in sport footwear market, please develop a disruptive strategy to disrupt existing players such as Nike, Adidas, and Under Armour
As a startup company in the sport footwear market, a disruptive strategy to disrupt existing players like Nike, Adidas, and Under Armour could involve leveraging emerging technologies .
To disrupt established players in the sport footwear market, the startup can adopt a combination of innovative approaches. Firstly, incorporating emerging technologies such as 3D printing and customization options can offer unique and personalized footwear experiences to customers, setting the startup apart from traditional mass-produced offerings. This can attract tech-savvy consumers looking for individuality and innovation.
Secondly, the startup can target a specific niche market that is currently underserved or overlooked by the dominant players. By identifying a specific sport or customer segment and catering to their unique needs, the startup can build a loyal customer base and create a strong brand presence.
Additionally, emphasizing sustainability and using ethically sourced materials can differentiate the startup from competitors. Today's consumers are increasingly conscious of environmental and social issues, and offering eco-friendly footwear options can attract environmentally conscious customers who prioritize sustainability.
By combining technological innovation, niche targeting, and sustainable practices, the startup can disrupt the sport footwear market and challenge the market dominance of established players by offering something distinct and appealing to a specific segment of customers.
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Illustrate Guardian pharmacy’s reorder system to manage their inventory so meet customer expectation. 25 marks.
To use order point system and periodic review system. Illustrate its characteristics/advantage in the context of managing inventory in a pharmacy.
For example:
1. Order point system - When the quantity of an item on hand in inventory falls to a predetermined level, an order is placed.
• The quantity ordered is based on economic order quantity (EOQ).
• Order quantity are usually fixed.
• The order point is determined by the average demand during the lead time.
• If the average demand or the lead time changes, there is no corresponding change in the order point, effectively there is a change in the safety stock.
• The interval between replenishment are not constant but vary depending on the actual demand during the order cycle.
Usually used for stocks that are longer to sell from the store so to replenish those stock would subject to the stock level on hand and will only initiate to replenish once it falls to its buffer level. To provide examples
2. Periodic review system
• The quantity on hand of an item is determined at specified, fixed-time intervals and an order is placed.
• The periodic review is fixed and the order quantity is allowed to vary.
• The quantity on hand plus the quantity ordered must be sufficient to last until the next shipment is received.
• The quantity on hand plus the quantity ordered must equal the sum of demand during the lead time plus the demand during the review period plus the safety stock.
Usually apply to replenish fast moving goods and generally store would plan for a fixed delivery date – weekly, biweekly to meet refill the shortfall of those consumed/sold stock. To provide examples.
The order point system and the periodic review system are two inventory management approaches used by Guardian Pharmacy to meet customer expectations. The order point system enables timely replenishment of slower-selling items by placing an order when the quantity on hand falls below a predetermined level. It utilizes the economic order quantity (EOQ) and ensures that stocks are replenished based on average demand during the lead time. On the other hand, the periodic review system is employed for fast-moving goods, where the quantity on hand is determined at fixed intervals, and orders are placed accordingly. This system allows for flexible order quantities and ensures that the quantity on hand, along with the ordered quantity, covers demand during the lead time, review period, and safety stock. The order point system is suitable for maintaining a buffer level and minimizing stockouts, while the periodic review system facilitates a regular delivery schedule for frequently demanded items. By utilizing these systems, Guardian Pharmacy optimizes inventory levels, reduces the risk of shortages, and meets customer expectations effectively.
Guardian Pharmacy, like many other businesses, utilizes a reorder system to effectively manage their inventory and meet customer expectations. Two commonly employed systems are the order point system and the periodic review system. Each system possesses unique characteristics and advantages when it comes to inventory management in a pharmacy setting.
The order point system operates by establishing a predetermined level, known as the order point, for each item in the inventory. When the quantity on hand falls to this level, an order is placed. The quantity ordered is typically based on the economic order quantity (EOQ), and the order point is determined by the average demand during the lead time. An advantage of this system is that it ensures timely replenishment of stocks that take longer to sell. The order point acts as a buffer level, triggering a replenishment order only when the stock falls below it. This allows the pharmacy to maintain an optimal inventory level and minimize the risk of stockouts.
On the other hand, the periodic review system involves determining the quantity on hand at fixed-time intervals and placing an order accordingly. The review period is fixed, while the order quantity can vary. In this system, the quantity on hand plus the quantity ordered must be sufficient to last until the next shipment arrives. Moreover, it should cover the sum of demand during the lead time, demand during the review period, and the safety stock. This system is advantageous for fast-moving goods, as it allows the pharmacy to plan for regular delivery dates, such as weekly or biweekly, to replenish consumed stock. It ensures a continuous supply of frequently demanded items, reducing the risk of shortages and customer dissatisfaction.
In summary, the order point system is suitable for managing stocks with longer sales cycles, as it triggers replenishment based on a predetermined level and economic order quantity. Conversely, the periodic review system is effective for fast-moving goods, as it employs fixed-time intervals to place orders and maintain a regular delivery schedule. Both systems contribute to efficient inventory management in a pharmacy by ensuring optimal stock levels, minimizing stockouts, and meeting customer expectations.
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Performance Appraisal and Links to the Compensation System: Definition of the key ingredient/activity (Designing Pay Levels, Mix and Pay Structures):
Rationale of its importance:
Potential impact on organizational outcomes:
Organizational symptoms that suggest that the function is not being performed correctly:
Key descriptive models (note important differences):
Key steps in executing the prescribed models, processes or techniques: Issues that could prevent this function from being successfully executed:
Critical success factors/activities that must be completed in order to successfully execute this function:
Designing pay levels, mix and pay structures is the process of ensuring that the compensation system is aligned with the organization's strategic goals.
Designing pay levels, mix and pay structures is a complex process that requires a deep understanding of the organization's strategic goals, the market, and the employees. The goal of this process is to create a compensation system that is fair, equitable, and motivates employees to achieve the organization's goals.
Definition of the key ingredient/activity (Designing Pay Levels, Mix and Pay Structures):
The key ingredient/activity in designing pay levels, mix and pay structures is to ensure that the compensation system is aligned with the organization's strategic goals. This means that the pay levels should be competitive, the pay mix should be appropriate for the organization's culture, and the pay structures should be fair and equitable.
Rationale of its importance:
The importance of designing pay levels, mix and pay structures cannot be overstated. Compensation is a key motivator for employees, and it can have a significant impact on the organization's bottom line. When compensation is aligned with the organization's strategic goals, it can help to attract and retain top talent, improve employee morale, and boost productivity.
Potential impact on organizational outcomes:
The potential impact of designing pay levels, mix and pay structures on organizational outcomes is significant. When compensation is aligned with the organization's strategic goals, it can help to:
Attract and retain top talent
Improve employee morale
Boost productivity
Reduce turnover
Increase profitability
Organizational symptoms that suggest that the function is not being performed correctly:
There are a number of organizational symptoms that suggest that the function of designing pay levels, mix and pay structures is not being performed correctly. These symptoms include:
High turnover rates
Low morale
Low productivity
Difficulty attracting and retaining top talent
Complaints about pay equity
Key descriptive models (note important differences):
There are a number of key descriptive models that can be used to design pay levels, mix and pay structures. These models include:
The job evaluation model
The market-based model
The skill-based model
The competency-based model
Each of these models has its own strengths and weaknesses, and the best model for an organization will depend on its specific needs.
Key steps in executing the prescribed models, processes or techniques:
The key steps in executing the prescribed models, processes or techniques for designing pay levels, mix and pay structures include:
Identifying the organization's strategic goals
Conducting a job evaluation
Gathering market data
Developing a pay structure
Communicating the pay structure to employees
Issues that could prevent this function from being successfully executed:
There are a number of issues that could prevent the function of designing pay levels, mix and pay structures from being successfully executed. These issues include:
Lack of data
Lack of resources
Lack of buy-in from management
Lack of communication with employees
Critical success factors/activities that must be completed in order to successfully execute this function:
The critical success factors/activities that must be completed in order to successfully execute the function of designing pay levels, mix and pay structures include:
Having a clear understanding of the organization's strategic goals
Gathering accurate and up-to-date data
Using a sound methodology
Communicating the pay structure effectively to employees
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Suppose during the third week of July 2022 , the GBP changed from $1.45 to $1.49. By how much the GBP changed against the $?
1) −2.00%
2) −2.00%
3) 2.76%
4) +2.30%
during the third week of July 2022, the GBP changed relative to the USD by about +2.76%. The percentage change method can be used to calculate how much the GBP fluctuated in relation to the USD during the third week of July 2022.
((New Value - Old Value) / Old Value) * 100 calculates the percentage difference. Assumed: $1.45 Old Value (GBP to USD conversion rate) New Value = $1.49 (GBP to USD exchange rate) (($1.49 - $1.45) / $1.45) * 100 = percent change Change in percentage: ($0.04 / $1.45) * 100 Change in percentage 2.76%, during the third week of July 2022, the GBP changed relative to the USD by about +2.76%.
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What are good internal and external motivators in the workplace?
Give specific examples of things that either motivate or demotivate
a person at work.
Good internal motivators in the workplace:
Purpose and Meaning: Employees who find their work meaningful and aligned with their personal values are often highly motivated.
Knowing that their work contributes to a larger purpose or has a positive impact can be a strong internal motivator.
Example: A software engineer working on developing technology that helps improve access to education in underserved communities may feel motivated by the opportunity to make a difference in people's lives.
1. Achievement and Growth: Individuals who have opportunities to grow, learn new skills, and achieve their goals are likely to be motivated.
Feeling a sense of progress and accomplishment can fuel internal motivation.
Example: A salesperson who is provided with regular training sessions, mentoring, and opportunities for career advancement may feel motivated to consistently improve their performance and achieve higher sales targets.
1. Autonomy and Responsibility: Having a certain degree of autonomy and control over their work can be a powerful motivator for employees.
Feeling trusted and empowered to make decisions can increase job satisfaction and motivation.
Example: A project manager who is given the freedom to design project plans, delegate tasks, and make strategic decisions may feel motivated by the sense of ownership and responsibility for the project's success.
Good external motivators in the workplace:
1. Recognition and Rewards: Recognizing and rewarding employees for their efforts and achievements can be a strong external motivator. This can include monetary incentives, bonuses, public praise, or awards.
Example: An employee who consistently meets or exceeds performance targets receives a bonus or is publicly acknowledged during a team meeting, which boosts their motivation to continue performing well.
1. Supportive Work Environment: A positive and supportive work environment can foster motivation.
This includes providing clear communication, resources, and a culture that promotes collaboration, teamwork, and work-life balance.
Example: An organization that encourages open communication, offers flexible working hours, and provides necessary resources like training, tools, and a comfortable workspace can motivate employees to perform at their best.
1. Challenging Projects and Opportunities: Assigning employees to challenging projects or providing opportunities to work on innovative initiatives can be motivating.
The chance to tackle stimulating tasks and contribute to meaningful projects can inspire employees.
Example: A marketing professional given the responsibility to develop a new marketing strategy for a high-profile product launch may feel motivated by the opportunity to showcase their skills and creativity.
Demotivators in the workplace:
1. Lack of Recognition and Feedback: Not receiving sufficient recognition or feedback for their efforts can demotivate employees. Feeling undervalued or ignored can lead to decreased motivation and engagement.
2. Limited Growth Opportunities: A lack of opportunities for career advancement or professional development can demotivate employees who seek growth and progression in their careers.
3. Poor Management and Leadership: Ineffective or unsupportive management can significantly demotivate employees.
Micromanagement, lack of communication, and a negative leadership style can create a demoralizing work environment.
4. Unclear Goals and Expectations: When employees are uncertain about their roles, responsibilities, or expectations, they may feel demotivated. Lack of clarity can lead to confusion and a sense of aimlessness.
5. Excessive Workload and Burnout: Constantly working under high pressure or being overloaded with tasks without adequate support can demotivate employees and contribute to burnout.
It's important to note that individuals may be motivated or demotivated by a combination of factors, and what motivates one person may not necessarily work for another.
Creating a motivating work environment often involves a balance of internal and external motivators tailored to the needs and preferences of the employees.
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what is the purpose of classifying items into groups as the abc classification does
ABC classification prioritizes and manages inventory based on importance, value, enhancing resource allocation and supply chain management.
The ABC classification is a method used in inventory management to categorize items based on their significance in terms of value or usage. The purpose of this classification is to identify and focus on items that have the greatest impact on the organization's operations and profitability.
In the ABC classification, items are typically divided into three categories: A, B, and C. Category A includes items that have high value or high usage frequency, representing a small portion of the total items but contributing to a significant portion of the total value or usage.
Category B consists of items that are moderately important, while Category C includes items with low value or usage frequency. By classifying items into groups, companies can adopt different strategies and allocate resources accordingly.
For example, Category A items may require closer monitoring, tighter inventory control, and more frequent replenishment to ensure availability and minimize stockouts. Category B items may receive less attention and resources, while Category C items may require minimal oversight.
Overall, the ABC classification helps organizations prioritize their inventory management efforts, streamline operations, and allocate resources effectively based on the importance and value of items in their inventory. It enables better decision-making, improved inventory control, and optimization of supply chain management processes.
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"The S&P/ASX Australian Fixed Interest Index is an example of
a
Select one:
A.
composite security market series.
B.
world market series.
C.
bond market indicator series.
D.
share market indicator series
The S&P/ASX Australian Fixed Interest Index is an example of a bond market indicator series.
The correct option is C. bond market indicator series.
The S&P/ASX Australian Fixed Interest Index is specifically designed to track the performance of fixed interest securities in the Australian bond market. It is a market indicator series that provides insights into the overall performance and trends in the bond market. The index measures the total return of fixed interest securities, including government bonds, corporate bonds, and other fixed-income instruments.
As a bond market indicator series, the S&P/ASX Australian Fixed Interest Index serves as a benchmark for investors and market participants to assess the performance of their fixed income investments and compare it to the broader bond market. It provides information on the changes in bond prices, yields, and overall market conditions. Investors can use this index to make informed decisions about their bond investments and to analyze the performance of the fixed interest market as a whole.
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Land use activities under the Resource Management Act are allocated to particular parcels of land by: Select one:
a. Individual property owners
b. Local Government, via planning documents
c. Central Government in a blanket manner annually
d. Market forces through the bidding process
b. Local Government, via planning documents. Under the Resource Management Act, the allocation of land use activities is primarily the responsibility of local government through the use of planning documents.
These planning documents, such as district plans and regional plans, outline the policies, rules, and regulations for land use within their respective jurisdictions. They are developed in consultation with the community and stakeholders and are designed to ensure sustainable management of natural and physical resources.
Local government authorities, such as city councils or regional councils, assess and allocate land use activities based on the provisions set out in the planning documents. These provisions consider factors such as environmental protection, infrastructure requirements, zoning restrictions, and community needs. The allocation process aims to strike a balance between development and protection of the environment while meeting the needs of the local community.
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Barton Industries has operating income for the year of \( \$ 3,100,000 \) and a \( 25 \% \) tax rate. Its total invested capital is \( \$ 20,000,000 \) and its after-tax percentage cost of capital is
Given that Barton Industries has an operating income for the year of $3,100,000 and a 25% tax rate and its total invested capital is $20,000,000 and its after-tax percentage cost of capital is unknown.
To determine the after-tax percentage cost of capital we can use the formula;After-tax percentage cost of capital = Net operating profit after taxes (NOPAT)/Total invested capital. Where, Net operating profit after taxes (NOPAT) = Operating income * (1 - Tax rate)Substitute the given values;NOPAT = $3,100,000 * (1 - 0.25)NOPAT = $3,100,000 * 0.75NOPAT = $2,325,000 Now,Substitute the calculated values into the second equation;After-tax percentage cost of capital = $2,325,000 / $20,000,000After-tax percentage cost of capital = 0.11625 or 11.625%Therefore, the after-tax percentage cost of capital is 11.625%.
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the entry to establish a petty cash fund includes:
When a business establishes a petty cash fund, an entry is required to record the cash in the general ledger.
The entry to establish a petty cash fund includes the following.
The petty cash system is an accounting system that allows a company to keep track of small expenditures without having to create a journal entry for each transaction. It involves maintaining a small amount of cash on hand, which is typically used for small expenses such as office supplies or postage. The amount of cash kept in the fund varies depending on the size of the business and the nature of its expenses, but is generally between $50 and $200.
Cash fund:
The cash fund, also known as the petty cash fund, is a small amount of cash that is kept on hand to pay for minor expenses such as postage, office supplies, and other miscellaneous items. The amount of cash in the fund is typically set by management and is replenished as needed.
To establish a petty cash fund, an entry is required to record the cash in the general ledger. This entry usually includes a debit to the Petty Cash account and a credit to Cash. Once the fund is established, the cash on hand is used to pay for small expenses as they arise. The fund is then replenished periodically, based on the level of activity and the amount of cash used.
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An investment fund had assets totalling £42 million on 1 January 2019 . It received net income of £3 million on 1 January 2020 and paid out expenses of £5 million on 1 July 2020.
The value of the fund totalled:
£45 million on 31 December 2019
£52 million on 30 June 2020
£46 million on 31 December 2020
(i) Calculate for the period 1 January 2019 to 31 December 2020, to 3 decimal places:
(a) the effective time weighted rate of return per annum; [3 marks] (b) the linked internal rate of return, using sub-intervals of a calendar year. [5 marks]
(ii) Explain, in this particular case, when the linked internal rate of return would be identical to the time weighted rate of return.
The investment fund had assets of £42 million on 1 January 2019, received net income and paid out expenses during the period, and had varying values at different dates.
(a) To calculate the effective time-weighted rate of return per annum, we can use the following formula:
Effective Time Weighted Rate of Return = (Ending Value - Beginning Value - Net Income + Expenses) / Beginning Value
= (£46 million - £42 million - £3 million + £5 million) / £42 million
= £6 million / £42 million
= 0.1429 or 14.29% (rounded to 3 decimal places)
(b) To calculate the linked internal rate of return using sub-intervals of a calendar year, we can use the following formula:
Linked Internal Rate of Return = (Ending Value / Beginning Value) ^ (1 / Number of Years) - 1
For the sub-interval 1 January 2019 to 31 December 2019:
Linked IRR1 = (£45 million / £42 million) ^ (1 / 1) - 1 = 0.0714 or 7.14%
For the sub-interval 1 January 2020 to 31 December 2020:
Linked IRR2 = (£46 million / £45 million) ^ (1 / 1) - 1 = 0.0222 or 2.22%
The linked internal rate of return for the period 1 January 2019 to 31 December 2020 can be calculated by compounding the sub-intervals:
Linked IRR = (1 + Linked IRR1) * (1 + Linked IRR2) - 1
= (1 + 0.0714) * (1 + 0.0222) - 1 = 0.0959 or 9.59% (rounded to 3 decimal places)
(ii) In this particular case, the linked internal rate of return would be identical to the time weighted rate of return if there were no cash flows (net income and expenses) during the period. When there are no cash flows, the linked internal rate of return simplifies to the time-weighted rate of return, which represents the compounded annual growth rate of the investment over the entire period.
However, in the given scenario, since there were net income and expenses, the linked internal rate of return and the time-weighted rate of return will differ.
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Krepps Corporation produces a single product. Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows:
Direct materials $288,405
Direct labor $145.899
Variable manufacturing overhead $288.405
Fixed manufacturing overhead $542.000
Sales totaled $1,287,650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There was no beginning inventory. Assume that direct labor is a variable cost.
Under absorption costing, the ending inventory for the year would be valued at:
The value of ending inventory under absorption costing would be $86,510 + $43,989 = $130,499.
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows:Direct materials = $288,405Direct labor = $145,899Variable manufacturing overhead = $288,405Fixed manufacturing overhead = $542,000Sales totaled $1,287,650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There was no beginning inventory.
Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at $130,499. Explanation: According to the question, Cost of Goods Manufactured = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead Cost of Goods Manufactured = $288,405 + $145,899 + $288,405 + $542,000= $1,264,709The Cost of Goods Sold = Units sold x (Variable manufacturing cost + Variable selling and administrative cost + Fixed manufacturing overhead + Fixed selling and administrative cost)Cost of Goods Sold = 28,300 × (($288,405+$164,140)/28,300 + $542,000/33,930 + $206,973/28,300)Cost of Goods Sold = $1,122,160.
Under absorption costing, Fixed manufacturing overhead is allocated to the ending inventory as well. Therefore, the ending inventory for the year would be valued at:Ending Inventory = (Units Manufactured – Units Sold) × Fixed manufacturing overhead/Units ManufacturedEnding Inventory = (33,930 – 28,300) × $542,000 / 33,930Ending Inventory = $86,510.The value of ending inventory under absorption costing would be $86,510 + $43,989 = $130,499.
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Country A is more efficient than Country B in producing Product X and Product Y. Therefore, according to the Theory of Comparative Advantage: Country A should produce both products and Country B should import both Both countries should product both products Country A should specialize in one of the products and Company B in the other
According to the Theory of Comparative Advantage, if Country A is more efficient than Country B in producing Product X and Product Y, then it would be beneficial for both countries to specialize in the production of one of the products.
This means that Country A should specialize in the production of the product it is more efficient at producing, while Country B should specialize in the production of the product it is more efficient at producing. By doing so, both countries can take advantage of their respective strengths and maximize their output.
Specializing in the production of one product allows for economies of scale, which in turn leads to increased efficiency and lower costs. This allows for greater profitability and competitiveness in the global market.
Additionally, by specializing in the production of one product, each country can trade with each other to obtain the product they are not producing. This leads to greater overall efficiency and productivity, as each country can focus on what they do best and trade for what they need.
Therefore, the Theory of Comparative Advantage suggests that Country A should specialize in one of the products and Country B should specialize in the other, rather than both countries producing both products or Country B importing both.
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Generally, agents do all of the following except:
a.
Represent high-cost, made-to-order goods.
b.
Provide specialized or technical service.
c.
Take title to the goods.
d.
Travel to potential customers.
Distributors:
Agents generally do all of the following except (C) taking title to the goods, as they act as intermediaries facilitating transactions but do not assume ownership of the goods they represent.
Agents are intermediaries who facilitate the exchange of goods or services between buyers and sellers. They play a crucial role in connecting buyers and sellers, but they typically do not take title to the goods. Instead, they act on behalf of the principal (the seller) and facilitate the transaction between the principal and the customer.
a. Represent high-cost, made-to-order goods: Agents can represent high-cost, made-to-order goods on behalf of the seller and facilitate the sales process.
b. Provide specialized or technical service: Agents can provide specialized or technical services to customers, assisting them in making informed purchasing decisions.
c. Take title to the goods: Agents do not take title to the goods. Instead, they facilitate the transaction between the buyer and the seller without assuming ownership of the goods.
d. Travel to potential customers: Agents often travel to potential customers' locations to promote products or services and build relationships.
Therefore, the correct answer is option (c) - Take title to the goods, as agents typically do not assume ownership or take title to the goods they represent.
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increasing capacity in an area of process that is not a bottleneck is likely to positively impact process capacity. group of answer choices true false
The given statement is False because Increasing capacity in a non-bottleneck area is unlikely to positively impact the overall process capacity.
Increasing capacity in an area of the process that is not a bottleneck is unlikely to positively impact the overall process capacity. The capacity of a process is determined by its bottleneck, which is the step or resource that limits the maximum output or throughput of the entire process. Increasing capacity in non-bottleneck areas does not directly address the limiting factor.
The Theory of Constraints (TOC) emphasizes the importance of identifying and improving the bottleneck to optimize the overall process capacity. By focusing on the bottleneck and improving its efficiency, the process capacity can be increased.
Increasing capacity in non-bottleneck areas can result in excess inventory, longer lead times, and inefficient resource utilization. It may even exacerbate the bottleneck as more work is pushed into the constrained area without resolving the underlying limitation.
To effectively increase process capacity, it is crucial to identify the bottleneck and implement improvements targeted at that specific area. This can involve optimizing the bottleneck resource, improving its availability, reducing setup times, or finding ways to streamline the flow through that critical step.
In summary, increasing capacity in an area of the process that is not a bottleneck is unlikely to positively impact the overall process capacity. The bottleneck determines the maximum output, and efforts should be focused on improving that specific area to optimize the process capacity.
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Frankfurt Electronics produces a component internally using a state-of-the-art technology. The operations manager wants to determine the optimal lot size to ensure that the total annual inventory cost is minimized. The daily production rate for the component is 500 units, annual demand is 36,000 units, setup cost is $150 per setup, and the annual holding rate is 30 percent. The manager estimates that the total cost of a finished component is $80. If we assume that the plant operates year-round, and there are 360 days per year, what are the (a) daily demand, (b) optimal lot size, (c) highest inventory, (d) annual product cost, (e) annual holding cost, (f) annual setup cost, (g) total annual inventory cost, (h) length of a production period, (i) length of each inventory cycle, (j) rate of inventory buildup during the production cycle, and (k) the number of inventory cycles per year? Plot the movement of the inventory during one production cycle using time on the horizontal axis and on-hand inventory on the vertical axis (see Figure 7.10).
The optimal lot size for Frankfurt Electronics' component is 3,000 units, resulting in a daily demand of 100 units. The highest inventory level is 3,000 units, and the annual product cost amounts to $2,880,000. The annual holding cost is $86,400, the annual setup cost is $3,000, and the total annual inventory cost is $2,969,400. The length of a production period is 72 days, and each inventory cycle lasts for 3 days. The rate of inventory buildup during the production cycle is 500 units per day, and there are 120 inventory cycles per year.
To determine the optimal lot size, we calculate the daily demand by dividing the annual demand of 36,000 units by 360 days, resulting in 100 units per day. The Economic Order Quantity (EOQ) formula can be used to calculate the lot size that minimizes the total annual inventory cost. Given a daily production rate of 500 units, the EOQ formula becomes:
EOQ = sqrt((2 * annual demand * setup cost) / holding cost per unit)
= sqrt((2 * 36,000 * $150) / ($80 * 0.3))
≈ 3,000 units
The highest inventory level is equal to the lot size, so it is also 3,000 units. The annual product cost is the product of the lot size and the cost per unit, resulting in $2,880,000.
The annual holding cost is calculated as the average inventory level (half of the lot size) multiplied by the holding cost per unit and the number of cycles per year (360 days divided by the length of each inventory cycle):
Annual holding cost = (lot size / 2) * holding cost per unit * (360 / cycle length)
= (3,000 / 2) * $80 * (360 / 3)
= $86,400
The annual setup cost is calculated as the number of setups per year multiplied by the setup cost per setup:
Annual setup cost = (360 / cycle length) * setup cost per setup
= (360 / 3) * $150
= $3,000
The total annual inventory cost is the sum of the annual product cost, annual holding cost, and annual setup cost:
Total annual inventory cost = annual product cost + annual holding cost + annual setup cost
= $2,880,000 + $86,400 + $3,000
= $2,969,400
The length of a production period is calculated as the lot size divided by the daily production rate:
Production period length = lot size / daily production rate
= 3,000 / 500
= 6 days
The length of each inventory cycle is equal to the length of the production period, which is 6 days.
The rate of inventory buildup during the production cycle is the daily production rate, which is 500 units per day.
The number of inventory cycles per year is calculated as the number of days in a year divided by the length of each inventory cycle:
Number of inventory cycles per year = 360 / cycle length
= 360 / 6
= 120
Plotting the movement of inventory during one production cycle would show an initial increase in inventory as production exceeds demand, followed by a steady decrease as demand exceeds production until the next production cycle begins.
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Which of the following statements correctly describes the impact of a specific change in each of the following factors that have been described in lectures as influencing the time value of money?
a. Holding all else equal, as the market’s expectations of inflation increase the present value of a future expected $100 cash flow will decrease.
b. More than one of the other answers is correct
c. Holding all else equal, as the rate of return that could be expected from a risk-free government security decreases the present value of a future expected $100 cash flow increases.
d. Holding all else equal, as the risk associated with the expected receipt of $100 in the future increases the present value that expected cash flow also increases.
e. None of the other answers is correct
This question asks to identify the statement that correctly describes the impact of a specific change in factors influencing the time value of money.
The correct statement is option D: Holding all else equal, as the risk associated with the expected receipt of $100 in the future increases, the present value of that expected cash flow also increases.
The time value of money is influenced by various factors, including inflation expectations, the rate of return on risk-free government securities, and the associated risk. Inflation expectations, as mentioned in option A, actually have the opposite effect. When the market's expectations of inflation increase, the purchasing power of future cash flows decreases, resulting in a decrease in the present value.
Option C is incorrect because, as the rate of return on risk-free government securities decreases, the discount rate used to calculate the present value of future cash flows also decreases. As a result, the present value of a future expected $100 cash flow would decrease, not increase.
Option D is correct because as the risk associated with the expected receipt of $100 in the future increases, the discount rate used to calculate the present value also increases. This higher discount rate reflects the increased uncertainty and risk, leading to an increase in the present value of the expected cash flow.
Therefore, the correct statement is option D, and none of the other statements accurately describe the impact of the specific change in factors influencing the time value of money.
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3. Discuss the reason why some Obamacare exchanges end up with only 1 or 2 insurance sellers. Hint: link it to Medicaid expansion 4. When is a patent too strong and when is it too weak? Discuss this from the context of innovation rate levels.
An optimal patent system has balance between strong protection that incentivizes innovation and weak protection that allows for competition and further advancement.
A patent is considered too strong when it creates barriers to entry and stifles competition, hindering innovation. Excessive patent protection discourage follow-on innovation and impede the development of new ideas, technologies, and products.
A patent can be considered too weak when it fails to provide adequate protection for inventors and innovators. Weak patents may lead to a lack of incentives for research and development, as inventors may be reluctant to invest time and resources into developing new ideas if they are easily imitated or copied.
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The given question is incomplete, the complete question is
When is a patent too strong and when is it too weak? Discuss this from the context of innovation rate levels.
Suppose that the U.S. is undergoing appreciation of the U.S. dollars against European countries, and is undergoing depreciation of the U.S. dollars against Asian countries. How would this affect aggregate demand in the U.S.? Keep in mind that net export (NX) is a component of aggregate demand. Task 2 should comprise of the following structure with sections and headings.
Introduction
Discussion
Conclusion
The appreciation of the U.S. dollar against European countries and the depreciation of the U.S. dollar against Asian countries would likely have mixed effects on aggregate demand in the U.S. The overall impact on aggregate demand depends on the relative size of U.S. trade with European and Asian countries.
The overall impact on aggregate demand would depend on the relative magnitude of the changes in exchange rates and the importance of trade with European and Asian countries. However, in general, the appreciation against European countries may negatively affect U.S. net exports and potentially decrease aggregate demand, while the depreciation against Asian countries may positively impact net exports and potentially increase aggregate demand.
The appreciation of the U.S. dollar against European countries implies that it becomes more expensive for European countries to import goods and services from the U.S. This can lead to a decrease in U.S. exports to Europe, reducing net exports (NX) and potentially decreasing aggregate demand. On the other hand, the depreciation of the U.S. dollar against Asian countries means that it becomes relatively cheaper for Asian countries to import goods and services from the U.S. This can lead to an increase in U.S. exports to Asia, boosting net exports (NX) and potentially increasing aggregate demand.
The overall impact on aggregate demand depends on the relative size of U.S. trade with European and Asian countries. If the U.S. has a larger share of trade with Europe, the negative impact on net exports from the appreciation may outweigh the positive impact from the depreciation against Asian countries, leading to a potential decrease in aggregate demand. Conversely, if the U.S. has a larger share of trade with Asia, the positive impact on net exports from the depreciation may outweigh the negative impact from the appreciation against European countries, potentially increasing aggregate demand.
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X. Bonus: Price of Information ( 10 points)
Suppose the economy can be in one of the following three states: I, II, and III. It is known that each state can occur with an equal probability. Consider security XYZ that is expected to yield a payoff of $10 in state 1, $5 in state II, and - $5 in state III at the end of one year.
An analyst provides revised estimates of state probabilities and conjectures that states I, II, and III would occur with probabilities 0.25,0.25, and 0.50, respectively. You believe that the analyst's estimates are better than yours.
What is the maximum price you would be willing to pay for the analyst report? For simplicity, please assume that you can trade only up to 100 shares of XYZ with that information.
The value of information is the difference between the certainty equivalent of the portfolio with the analyst's forecasts and the certainty equivalent of the portfolio without the analyst's forecasts. In this scenario, the portfolio includes 100 shares of XYZ, which is expected to pay off $10 in state I, $5 in state II, and -$5 in state III in one year. The probability distribution for each state is {1/3,1/3,1/3}.
Certainty equivalent (CE) is defined as the sure amount of cash that a decision maker is willing to accept in place of a risky prospect. It is the equivalent of a certain amount of money to an uncertain prospect. The payoff of the portfolio without the analyst's forecast is as follows: (1/3)($10) + (1/3)($5) + (1/3)(-$5) = $3.33. Let us now calculate the payoff of the portfolio with the analyst's forecast. The portfolio's expected value is calculated as follows: (0.25)($10) + (0.25)($5) + (0.50)(-$5) = -$1.25. The certain equivalent of the portfolio with the analyst's forecast is -$1.25.
Therefore, the value of information is CE(with forecast)-CE(without forecast)
=-1.25-3.33
=-4.58.
Thus, the maximum price you would be willing to pay for the analyst report is $4.58.
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Jlayce bought a home for $200,000, putting down $30,000. The rate of interest is 7% for 25 years. The total yearly mortgage payment is:
a. $14,418.24
b. $14,920.20
c. $918.10
d. $1,782.40
e. None of these
The total yearly mortgage payment for Jlayce is $14,418.24. The answer is (a).
The principal amount of the mortgage is
$200,000 - $30,000 = $170,000.
The interest rate is 7%, which means that Jlayce will pay
0.07 * $170,000 = $11,900 in interest per year.
The number of payments per year is 12, so the total yearly mortgage payment is
$11,900 + $17,000 = $28,900.
Dividing this by 12, we get that the monthly mortgage payment is $2,416.67.
Therefore, the total yearly mortgage payment is
$2,416.67 * 12 = $14,418.24.
Additional information:
The mortgage payment includes both the principal amount and the interest. The principal amount is the amount of money that Jlayce borrowed from the bank, and the interest is the amount of money that the bank charges Jlayce for borrowing the money.
The interest rate is a percentage of the principal amount that Jlayce pays to the bank each year.
The number of payments per year is typically 12, but it can vary depending on the terms of the mortgage.
For example, some mortgages have biweekly payments, which means that there are 26 payments per year.
The total yearly mortgage payment can vary depending on the principal amount, the interest rate, and the number of payments per year.
Therefore, correct choice is (a).
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The two loops in the circular-flow diagram represent the flow of goods and the flow of services. the flow of dollars and the flow of financial assets. the flow of inputs into production processes and the flow of outputs from production processes. the flows of inputs and outputs and the flow of dollars.
The correct answer is:
the flow of inputs into production processes and the flow of outputs from production processes.
The circular-flow diagram is a simplified economic model that illustrates the flow of goods, services, and money in an economy. It depicts the interactions between households and businesses (firms) in the market.
The diagram consists of two main components: the product market and the factor market.
The flow of goods and the flow of services are two essential components of any economy. They represent the movement and exchange of tangible and intangible products between producers, consumers, and businesses. Here's an overview of each:
Flow of Goods:
The flow of goods refers to the movement of physical products or tangible items from the point of production to the point of consumption. It involves various stages, including production, distribution, and consumption. Some key elements of the flow of goods include:
Production: Goods are manufactured, processed, or grown by producers, such as factories, farms, or artisans. This stage involves transforming raw materials into finished products.
Distribution: After production, goods need to be transported and distributed to wholesalers, retailers, or directly to consumers.
Consumption: Ultimately, goods are purchased and consumed by individuals or businesses. Consumers acquire goods for personal use, while businesses may use them as inputs for further production or resale.
Flow of Services:
The flow of services represents the exchange of intangible activities, skills, or expertise for economic value. Unlike goods, services are not physical products but rather tasks or actions performed by individuals or organizations. Some important aspects of the flow of services include:
Service Providers: Services are typically provided by individuals or businesses with specialized knowledge or skills.
Service Delivery: Service providers interact directly with customers or clients to deliver specific services.
Service Consumption: Consumers or businesses pay for the services they receive, either through direct fees, subscriptions, or contracts. Services are often consumed as they are being produced, with immediate benefits or outcomes.
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Students will reflect on conflict resolution
concept introduced in the course and record their reflections in a journal entry that includes the following details:
An explanation of the concept chosen and why it was chosen. What influence or impact does this concept have on you? Why is it important to managing and/or resolving conflict?
A description of what you have learnt from this concept and how this learning can help you become more effective in managing conflict in the future.
Explanation of chosen concept and its significance: Student chooses a conflict resolution concept and explains why it was chosen, highlighting its importance in managing and resolving conflicts.
Impact of concept and its importance in conflict management: Student reflects on how the chosen concept has influenced them personally and discusses its significance in effectively managing and resolving conflicts.
Learning from the concept and application in future conflict management: Student describes the insights gained from studying the concept and how they can apply this learning to improve their ability to manage conflicts in the future.
An explanation of the chosen concept and its significance: In this journal entry, the student is expected to select a specific concept related to conflict resolution introduced in the course. They should provide an explanation of the chosen concept, such as negotiation, active listening, or win-win solutions, and articulate why they have chosen it. The significance of the concept could be based on personal relevance, perceived effectiveness, or interest in further exploring its application in conflict resolution.
Impact of the concept on the individual and its importance in managing and resolving conflict: The student should reflect on the influence or impact that the chosen concept has had on them personally.
They can describe how their understanding of the concept has shaped their perspective on conflict resolution and their approach to managing conflicts. They should also discuss why the concept is important in the context of conflict resolution, highlighting its potential benefits and effectiveness in resolving conflicts and maintaining positive relationships.
Description of the learning derived from the concept and its application in future conflict management: The student should outline the specific insights or lessons they have gained from studying the chosen concept. They should reflect on how this learning can be applied in practical terms to enhance their effectiveness in managing conflict situations in the future. They may discuss strategies, skills, or approaches they have acquired and explain how they can be utilized to promote constructive communication, understanding, and resolution in conflicts they may encounter.
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Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $1.48 million per year, growing at a rate of 2.5% per year. Goodyear has an equity cost of capital of 8.5%, a debt cost of capital of 7.1%, a marginal corporate tax rate of 38%, and a debt-equity ratio of 2.4. If the plant has average risk and Goodyear plans to maintain a constant debt-equity ratio, what after-tax amount must it receive for the plant for the divestiture to be profitable? A divestiture would be profitable if Goodyear received more than $ million after tax. (Round to one decimal place.)
After doing calculations based on given data, we found that Good year must receive at least 18.72 million after tax for the divestiture to be profitable.
To calculate the after-tax amount that Goodyear must receive for the divestiture to be profitable, we need to calculate the present value of the expected free cash flows and subtract the present value of the tax shield from the debt.
The present value of the expected free cash flows can be calculated using the formula PV = FCF / (r - g), where FCF is the free cash flow, r is the equity cost of capital, and g is the growth rate. Plugging in the given values, we get PV = 1.48million/ (0.085−0.025) =23.33 million.
Next, we need to calculate the present value of the tax shield from the debt. This can be calculated using the formula PVTS = TC x D x rd / (r - g), where TC is the marginal corporate tax rate, D is the market value of debt, rd is the debt cost of capital, r is the equity cost of capital, and g is the growth rate. Plugging in the given values, we get PVTS = 0.38 x (2.4 / 3.4) x 23.33millionx0.071/ (0.085−0.025) =4.61 million.
Finally, we can calculate the after-tax amount that Goodyear must receive for the divestiture to be profitable by adding the present value of the expected free cash flows and subtracting the present value of the tax shield from the debt. Therefore, 23.33million−4.61 million =
18.72million.This means that Good year must receive at least 1 8.72 million after tax for the divestiture to be profitable.
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