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Questions
Part I (TVM of lump-sum amounts): Find the following values.
(1) The future value of $300 compounded for 10 years at 10%
(2) The present value of $300 due in 10 years at a discount rate of 10%
Part II (Annuities): Find the following values.
(3) The future value of $500 per year for 20 years at 10%. Assume that payments are made at the end of each year.
(4) The future value of $500 per year for 20 years at 10%. Assume that payments are made at the beginning of each year.
(5) The present value of $500 per year for 20 years at 10%. Assume that payments are made at the end of each year.
(6) The present value of $500 per year for 20 years at 10%. Assume that payments are made at the beginning of each year.
(7) The future value of $600 each 6 months for 5 years at nominal rate of 8%, compounded semiannually. Assume that payments are made at the end of each semiannual period.
(8) The future value of $300 each 3 months for 5 years at nominal rate of 8%, compounded quarterly. Assume that payments are made at the end of each quarter.
(9) The present value of $600 each 6 months for 5 years at nominal rate of 8%, compounded semiannually. Assume that payments are made at the end of each semiannual period.
Part III (Loan amortization)
(10) You are planning to borrow $500,000 on a 5 -year, 10%, annual payment, fully amortized term loan. What fraction (percentage) of the payment made at the end of the second year will represent repayment of principal?

Answers

Answer 1

In Part I, we find the future value and present value of lump-sum amounts. The future value of $300 compounded for 10 years at 10% is $811.62. The present value of $300 due in 10 years at a discount rate of 10% is $111.42.

In Part II, we calculate values related to annuities. The future value of $500 per year for 20 years at 10% with end-of-year payments is $20,234.73. With beginning-of-year payments, the future value is $22,258.20. The present value of $500 per year for 20 years at 10% with end-of-year payments is $6,710.08, and with beginning-of-year payments, it is $7,381.20.

In Part III, we consider loan amortization. The fraction (percentage) of the payment made at the end of the second year that represents repayment of principal for a $500,000, 5-year, 10% fully amortized term loan is 10.50%.

Part I:

To find the future value of $300 compounded for 10 years at 10%, we use the formula: Future Value = Present Value × (1 + Interest Rate)^(Number of Periods). Plugging in the values, we get Future Value = $300 × (1 + 0.10)^10 = $811.62.

To find the present value of $300 due in 10 years at a discount rate of 10%, we use the formula: Present Value = Future Value / (1 + Discount Rate)^Number of Periods. Substituting the given values, we have Present Value = $300 / (1 + 0.10)^10 = $111.42.

Part II:

For the future value of $500 per year for 20 years at 10% with end-of-year payments, we use the formula for the future value of an ordinary annuity: Future Value = Payment × [(1 + Interest Rate)^Number of Periods - 1] / Interest Rate. Plugging in the values, we get Future Value = $500 × [(1 + 0.10)^20 - 1] / 0.10 = $20,234.73.

For the future value of $500 per year for 20 years at 10% with beginning-of-year payments, we use a similar formula, but we adjust the number of periods: Future Value = Payment × [(1 + Interest Rate)^Number of Periods - 1] / Interest Rate × (1 + Interest Rate). Substituting the given values, we find Future Value = $500 × [(1 + 0.10)^20 - 1] / 0.10 × (1 + 0.10) = $22,258.20.

To calculate the present value of $500 per year for 20 years at 10% with end-of-year payments, we use the formula for the present value of an ordinary annuity: Present Value = Payment × [1 - (1 + Interest Rate)^(-Number of Periods)] / Interest Rate. Plugging in the values, we get Present Value = $500 × [1 - (1 + 0.10)^(-20)] / 0.10 = $6,710.08.

For the present value of $500 per year for 20 years at 10% with beginning-of-year payments, we again use a similar formula but adjust the number of periods: Present Value = Payment × [1 - (1 + Interest Rate)^(-Number of Periods)] / Interest Rate × (1 + Interest Rate). Substituting the given values

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Related Questions

You have recently won $20,000 in a lotto draw. You would like to invest some of this money for a holiday in America when you have completed your bachelor’s degree in three years’ time. The holiday will cost $12,000 and you don’t have to pay for it until you take the holiday in three years’ time. There are two banks with suitable term deposits to invest your money.

Bank A: offering to pay a 6% per annum return on a 3-year term deposit.

Bank B: offering to pay an 8% per annum return on a 3-year term deposit.

Required:

(i) If you decide to go with Bank A, how much cash do you need to put in the bank’s deposit account today to cover the holiday cost?

(ii) If you decide to go with Bank B, how much cash do you need to put in the bank’s deposit account today to cover the holiday cost?

(iii) Based on your answer in (i) and (ii), explain with which Bank you will invest your money. [Maximum words limit: 80 words]

Answers

PV ≈ $10,648.15PV ≈ $10,648.15

(i) To cover the holiday cost of $12,000 with Bank A, we need to calculate the present value of that amount considering a 6% per annum return on a 3-year term deposit. Using the present value formula for a single amount:

PV = FV / (1 + r)^n

PV = 12,000 / (1 + 0.06)^3

PV ≈ $10,662.77

Therefore, you would need to put approximately $10,662.77 in Bank A's deposit account today to cover the holiday cost.

(ii) With Bank B offering an 8% per annum return on a 3-year term deposit, we calculate the present value using the same formula:

PV = 12,000 / (1 + 0.08)^3

PV ≈ $10,648.15

To cover the holiday cost with Bank B, you would need to put approximately $10,648.15 in their deposit account today.

(iii) Based on the calculations, Bank A requires a deposit of $10,662.77, while Bank B requires a deposit of $10,648.15 to cover the holiday cost. Since Bank B requires a slightly lower initial investment, it would be the preferred choice to invest your money. With Bank B, you can achieve the same goal of covering the holiday cost while investing slightly less capital upfront.

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True/False
A comfort letter is a letter to shareholders regarding compliance with the Securities Act of 1933
Personal financial statements include an Income Statement and Balance Sheet.

Answers

A comfort letter is a letter to shareholders regarding compliance with the Securities Act of 1933. This statement is True.

Personal financial statements include an Income Statement and Balance Sheet. This statement is True.

Summary:

A comfort letter is indeed a letter issued to provide assurance and comfort to shareholders regarding compliance with the Securities Act of 1933. On the other hand, personal financial statements do include an Income Statement and Balance Sheet, which are essential components for assessing an individual's financial position.

A comfort letter serves as a means of providing reassurance and confidence to shareholders or potential investors. It is typically issued by an independent auditor or accounting firm and aims to confirm compliance with the Securities Act of 1933. This act regulates the offering and sale of securities to the public in the United States. By receiving a comfort letter, shareholders can have greater trust in the accuracy and completeness of the financial information disclosed by the company.

Personal financial statements are comprehensive reports that depict an individual's financial position and performance. These statements are crucial for evaluating an individual's financial health. Personal financial statements typically consist of an Income Statement and a Balance Sheet. The Income Statement presents the individual's income and expenses over a specific period, providing insights into their financial performance. On the other hand, the Balance Sheet displays a snapshot of the individual's assets, liabilities, and equity at a particular point in time, offering a clear overview of their financial position. Both the Income Statement and Balance Sheet are vital components of personal financial statements, aiding in the assessment of an individual's financial situation and decision-making.

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n July 2022, the Bank Negara Malaysia has decided to increase the Overnight Policy Rate (OPR) / Interest Rate by 25 basis point to 2.25 points. Critically describe and evaluate the impact of increasing interest rate on the loan borrowing and payments for businesses.

Answers

Increasing interest rates have a significant impact on loan borrowing and payments for businesses. It makes borrowing more expensive, increases monthly loan payments, reduces consumer spending, and affects overall business profitability. Businesses must carefully evaluate the implications and adjust their financial strategies accordingly.

Increasing the interest rate has several impacts on loan borrowing and payments for businesses. Firstly, higher interest rates make borrowing more expensive for businesses, as they will have to pay more in interest charges on their loans. This can discourage businesses from taking on new debt or investing in projects that require financing.

Additionally, businesses with existing variable-rate loans will experience higher monthly payments as the interest rate increases. This can strain their cash flow and reduce their ability to invest in other areas of their operations. It may also lead to financial distress for highly leveraged businesses that are already struggling to meet their debt obligations.

Furthermore, higher interest rates can affect consumer spending and demand, which indirectly impacts businesses. When borrowing becomes more expensive for individuals, they may reduce their spending, leading to lower sales for businesses. This can particularly affect sectors that rely heavily on consumer spending, such as retail and hospitality.

On the positive side, increasing interest rates can help curb inflation by making borrowing more expensive and reducing overall demand in the economy. This can be beneficial for businesses in the long run by maintaining a stable economic environment.

Overall, the impact of increasing interest rates on businesses depends on various factors, including the industry, the level of existing debt, and the overall economic conditions. It is important for businesses to carefully assess the potential effects and adjust their financial strategies accordingly to mitigate any negative consequences.

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Company Y reinvests 40% of its earnings and has an ROE of 25%. This is expected to last forever. It has 5 million shares outstanding. The required return is 15%. How fast will the firm grow?
a.10%
b.15%
c.30%
d.45%
e.60%
f.None of the above

Answers

The answer is (c) 30%.

The sustainable growth rate (g) of a firm can be calculated as g = ROE x (1 - dividend payout ratio). Since the company reinvests 40% of its earnings, its dividend payout ratio is 1 - 40% = 60%. Therefore, the sustainable growth rate of the company is g = 25% x (1 - 60%) = 10%.

The expected growth rate of the company can be calculated using the Gordon growth model as follows:

Expected growth rate = ROE x retention ratio

where retention ratio is equal to 1 - dividend payout ratio.

Retention ratio = 1 - 0.40 = 0.60

Expected growth rate = 25% x 0.60 = 15%

Since the required return is 15%, the company is expected to grow at a rate of 15% indefinitely.

Therefore, the answer is not (b) 15% but (c) 30%, which is the sustainable growth rate of the company.

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Ten rights are necessary to purchase one share of Fogel stock at \( \$ 45 \). A right sells for a \( \$ 3 \). The ex-rights value of Fogel stock is. Muliple Choice \( \$ 71 \) 575 \( \$ 83 \) \( \$ 80

Answers

The correct answer from the multiple-choice options provided is (d) $15.

To calculate the ex-rights value of Fogel stock, we need to consider the value of the stock without the rights attached. Each right is priced at $3, and it takes ten rights to purchase one share of Fogel stock. Therefore, the value of the rights is $3 x 10 = $30 per share.

Since the rights have a value of $30, we subtract this amount from the current market price of the stock, which is $45. The ex-rights value of the stock is then $45 - $30 = $15 per share.

Therefore, the correct answer from the multiple-choice options provided is (d) $15.

The ex-rights value is the price at which the stock trades in the market after the rights offering has occurred. It reflects the value of the stock without considering the rights. In this case, the ex-rights value is obtained by subtracting the value of the rights from the current market price of the stock. This calculation allows investors to understand the value of the stock on a standalone basis, excluding the impact of the rights offering.

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Monitor and Review of risks for implementation of Biometrix
scanner at airport

Answers

The implementation of a Biometrix scanner at an airport involves various risks that need to be monitored and reviewed. Here are some key aspects to consider:

1. Privacy and Data Security: Biometric scanners collect and store sensitive personal information. It is crucial to ensure that the data is adequately protected, encrypted, and stored in compliance with privacy laws and regulations. Regular monitoring and audits should be conducted to identify and mitigate any potential vulnerabilities or breaches.

2. Accuracy and Reliability: The effectiveness and reliability of the Biometrix scanner should be monitored and reviewed regularly. This includes assessing its ability to accurately identify individuals and detect fraudulent attempts. Any performance issues or errors should be addressed promptly to maintain the system's integrity.

3. Operational Efficiency: The implementation of the scanner should not cause significant delays or disruptions to the airport operations. The efficiency of the scanning process, including enrollment and verification, should be continuously monitored to identify any bottlenecks or areas for improvement.

4. User Experience: The scanner's impact on the user experience should be evaluated to ensure it is user-friendly and easily accessible for passengers. Feedback from users can be gathered through surveys or interviews to identify any concerns or areas for improvement.

5. Compliance and Legal Considerations: The implementation of Biometrix scanners must comply with relevant legal and regulatory frameworks. Regular reviews should be conducted to ensure ongoing compliance and to address any changes in regulations or legal requirements.

6. Ethical Implications: Monitoring should also consider the ethical implications of using biometric data. It is important to assess whether the implementation respects individuals' rights, avoids discrimination, and follows ethical guidelines regarding the use and storage of biometric information.

By actively monitoring and reviewing these aspects, airport authorities can identify and address any risks or issues associated with the implementation of Biometrix scanners, ensuring a more effective and ethical use of the technology.

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Frank works at a large accountancy firm and has found material which he thinks indicates several clients are claiming tax deductions for purchases of goods in their businesses in the UK but selling them overseas in a country which is not required to report earnings in the UK. He is not sure whether the transactions constitute tax evasion or money laundering or what action to take.
Requirement
Briefly explain whether the actions constitute tax evasion and what responsibilities Frank's employer has in relation to monitoring anti-money laundering procedures.

Answers

The actions constitute tax evasion because several clients are claiming tax deductions for purchases of goods in their businesses in the UK but selling them overseas in a country that is not required to report earnings in the UK.

Frank’s employer has a responsibility in relation to monitoring anti-money laundering procedures.

As per the UK law, tax evasion is a criminal offense that is punishable by imprisonment or a fine.

The law states that taxpayers are required to pay tax on all their income, including any income earned abroad.

Frank’s employer has a responsibility to monitor anti-money laundering procedures as it is one of the measures that are taken to prevent and detect financial crime.

They need to have appropriate procedures in place to ensure that their staff, clients, and business associates are not involved in money laundering.

This includes carrying out background checks on clients, monitoring transactions for any suspicious activity, and reporting any suspicions to the relevant authorities.

In conclusion, Frank’s employer has a responsibility to monitor anti-money laundering procedures, and the actions of the clients constitute tax evasion.

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Which of the following statements about the choice of storing facilities is true?

Question 33 options:

a)

Private warehouses are specially designed to speed the flow of goods.
b)

Public warehouses are used when a large volume of goods must be stored regularly.
c)

Public warehouses are independent storing facilities and provide a full range of services.
d)

Public warehouses are storing facilities owned or leased by companies for their own use.

Answers

The following statement about the choice of storing facilities is true: Public warehouses are independent storing facilities and provide a full range of services.

Public warehouses are independent storing facilities and provide a full range of services. They are ideal for situations where the owner of the goods has only sporadic demand for storage services, but wishes to take advantage of the services of a warehouse operator. Public warehouses are businesses that offer short-term and long-term storage to a variety of customers.

These are warehouses that are open to the public, rather than privately owned or operated by a single company. A public warehouse can be owned and operated by a government agency, such as a port authority or a transportation hub, or by a privately owned business. These facilities are typically located near major transportation routes, such as rail yards, airports, and highways, making it easy for customers to transport their goods to and from the warehouse.

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A Linear programming problem has the following three constraints: 26X+51Y<= 1326; 24X+22Y=528; and 16X−Y<=181.091. The objective function is Min 9X+ 39Y. What combination of X and Y will yield the optimum solution for this problem? a. 12,10.9091 b. 22,0 c. infeasible problem d. unbounded problem e. 0,24

Answers

The correct answer for the combination of X and Y that will yield the optimum solution is that the problem is infeasible.

To determine the combination of X and Y that will yield the optimum solution for this linear programming problem, we need to solve the given constraints along with the objective function.

The constraints are as follows:

26X + 51Y ≤ 132624X + 22Y = 52816X − Y ≤ 181.091

The objective function to minimize is:

Minimize 9X + 39Y

By solving these equations simultaneously, we can find the values of X and Y that satisfy the constraints and minimize the objective function. However, there seems to be an inconsistency in the problem formulation. Constraint 2 (24X + 22Y = 528) is an equality constraint, but it contradicts constraint 1 (26X + 51Y ≤ 1326).

Since these constraints are inconsistent, the problem is infeasible. Therefore, option c) "infeasible problem" is the correct answer.

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Critically discuss E-Procurement process that McDonalds should follow when buying its goods and
services from various suppliers.

Answers

The e-Procurement process that McDonald's should follow when buying goods and services from various suppliers is crucial for ensuring efficiency, cost-effectiveness analysis, and transparency in their procurement operations.

McDonald's should adopt a comprehensive e-Procurement system that includes the following steps. First, they should establish a supplier database that provides detailed information about potential suppliers, their products, and services. This database can be regularly updated and maintained to ensure accurate and up-to-date information.

Second, McDonald's should implement an e-Sourcing platform that allows them to request bids and proposals electronically from pre-qualified suppliers. This platform should enable the evaluation and comparison of different supplier offers based on various criteria such as price, quality, and delivery terms.

Third, the selected suppliers can then proceed with the e-Purchasing phase, where purchase orders are generated electronically and transmitted to the suppliers. This helps to streamline the ordering process, minimize errors, and facilitate prompt delivery.

Lastly, McDonald's should implement an e-Invoicing and e-Payment system, where invoices are electronically generated and processed for payment. This reduces paperwork, improves accuracy, and expedites the payment process.

Additionally, e-Procurement systems provide data analytics capabilities that enable McDonald's to analyze procurement trends, identify cost-saving opportunities, and negotiate better deals with suppliers. Overall, adopting an e-Procurement process aligns with McDonald's goal of maintaining a competitive advantage in the market by optimizing their supply chain and ensuring the timely and cost-effective delivery of goods and services.

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Please answer question 2 and 3 separately in paragraph form.
2. Why would a defendant prefer to be found to have produced a product that was defectively manufactured rather tha defectively designed?
3. Explain the defenses available in a case based on a theory of strict product liability.

Answers

A defendant would prefer to be found to have produced a product that was defectively manufactured rather than defectively designed due to the lower burden of liability. Defenses available in a case based on strict product liability include assumption of risk, product misuse.

A defendant would prefer to be found to have produced a product that was defectively manufactured rather than defectively designed because the burden of liability is typically lower in cases involving manufacturing defects.

When a product is defectively manufactured, it means that an error occurred during the production process, resulting in a flawed product that deviates from the intended design.

In such cases, the defendant can argue that the defect was not present when the design was conceived but occurred during manufacturing, shifting the responsibility away from the design itself.

This defense allows the defendant to potentially avoid or minimize liability by placing the blame on a specific manufacturing error rather than a fundamental flaw in the product's design.

The defenses available in a case based on a theory of strict product liability include:

a) Assumption of risk: The defendant can argue that the plaintiff voluntarily assumed the risks associated with using the product and was aware of its potential dangers.

b) Product misuse: The defendant can claim that the plaintiff used the product in a manner for which it was not intended or in a way that deviated from the provided instructions, thereby absolving them of liability.

c) Comparative negligence: The defendant can assert that the plaintiff's own negligence or actions contributed to their injuries, reducing or eliminating the defendant's liability.

d) Lack of causation: The defendant can argue that the alleged defect in the product did not cause the plaintiff's injuries, asserting that other factors or circumstances were responsible.

These defenses aim to challenge the plaintiff's claims and shift the burden of responsibility away from the defendant, potentially reducing or eliminating their liability in a strict product liability case.

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when the ceo and other top managers communicate their vision for the company to the rest of the managerial staff, this is referred to as ______.

Answers

The term referred to when the CEO and other top managers communicate their vision for the company to the rest of the managerial staff is known as management by objectives (MBO).

What is Management by Objectives (MBO)?Management by objectives (MBO) is a method of management that was developed by Peter Drucker, a management consultant, writer, and teacher. MBO is a process for setting goals, allowing employees to determine their goals, and aligning them with the company's goals. MBO, in other words, is a participatory style of management that is both goal-oriented and results-oriented.

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Antiques Pty Ltd made three frankable distributions during the 2020/21 franking period as follows: - December 2020: $100,000 which is franked to 60% - April 2021: $140,000 which is franked to 50%, and - June 2021: $180,000 which is franked to 80%. Required (16 marks) Advise Antiques Ltd of the tax consequences (if any) for breaching the benchmark franking rule and franking deficit tax during the 2020/2021 franking period. Opening balance on July 2020 was $8,000 credit.

Answers

To determine the tax consequences for breaching the benchmark franking rule and the franking deficit tax for Antiques Pty Ltd during the 2020/2021 franking period, we need to calculate the franking credit, assess if the benchmark is breached, and determine any potential franking deficit tax liability.

1. Calculation of Franking Credit:

The franking credit is calculated by multiplying the franking percentage by the cash distribution. Let's calculate the franking credit for each distribution:

December 2020: $100,000 * 60% = $60,000 franking credit

April 2021: $140,000 * 50% = $70,000 franking credit

June 2021: $180,000 * 80% = $144,000 franking credit

2. Assessment of Benchmark Franking Rule:

The benchmark franking rule requires the total franking credits to be no more than the franking account balance at the end of the previous income year plus the net amount of franking credits on distributions made during the current income year.

Let's calculate the benchmark and compare it with the actual franking credits:

Opening balance on July 2020: $8,000 credit

Franking credits during the franking period: $60,000 + $70,000 + $144,000 = $274,000

Benchmark franking credit = Opening balance + Franking credits during the year

= $8,000 + $274,000

= $282,000

Since the actual franking credits ($274,000) are lower than the benchmark franking credit ($282,000), the benchmark franking rule is not breached.

3. Franking Deficit Tax:

If the benchmark franking rule were breached, franking deficit tax would apply. However, since the benchmark was not breached, there is no franking deficit tax liability for Antiques Pty Ltd in this case.

Antiques Pty Ltd does not breach the benchmark franking rule and does not incur any franking deficit tax liability during the 2020/2021 franking period.

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Why does the Supply Management system of agricultural goods continue to exist in Canada? Describe how the system operates and explain its advantages and disadvantages, identifying particular groups in Canadian society who gain or lose by Supply Management. Is there any prospect of the system changing? If so, who would gain and who would lose?

Answers

The Supply Management system of agricultural goods continues to exist in Canada primarily to stabilize prices, ensure a consistent supply, and protect domestic producers from market volatility. This system operates by controlling the production, pricing, and importation of certain agricultural products, such as dairy, poultry, and eggs.


Supply Management in Canada offers advantages such as income security for farmers, stability in the agricultural sector, and maintaining high standards for food safety and quality. However, it also has disadvantages, including limited competition, higher prices for consumers, and potential barriers to innovation and efficiency.

Regarding the groups affected by Supply Management, Canadian dairy, poultry, and egg farmers benefit from stable prices and a protected market. On the other hand, consumers may face higher prices for these products. Retailers, processors, and food manufacturers can be impacted by limited supply and higher costs.

The prospect of changing the Supply Management system exists, particularly in international trade negotiations. Potential changes could involve increased market access for imports, reduced quotas, or a transition to a different system. If changes occur, importers, consumers, and industries reliant on affordable agricultural inputs may benefit, while domestic producers might face increased competition and the need to adapt to new market conditions.


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A company reports the following: Net income $813,000 Preferred dividends $46,000 Shares of common stock outstanding 65,000 Market price per share of common stock $38.94 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $fill in the blank 1 b. Determine the company's price-earnings ratio. Round to one decimal place. fill in the blank 2.

Answers

The company's earnings per share on common stock is $11.80. The price-earnings ratio is 3.3.

To calculate earnings per share, we first need to determine the company's earnings available to common stockholders. This is done by subtracting preferred dividends from net income.

In this case, earnings available to common stockholders is

$813,000 - $46,000 = $767,000.

Then, we divide earnings available to common stockholders by the number of shares of common stock outstanding.

In this case, there are 65,000 shares of common stock outstanding, so earnings per share is $767,000 / 65,000 = $11.80.

The price-earnings ratio is calculated by dividing the market price per share by earnings per share.

In this case, the market price per share is $38.94 and earnings per share is $11.80, so the price-earnings ratio is 38.94 / 11.80 = 3.3.

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Marginal cost is the ______ associated with a particular increase in an activity. a) total cost b) additional cost c) opportunity cost d) forgone cost.

Answers

Marginal cost is the additional cost associated with a particular increase in an activity.

Marginal cost refers to the additional cost associated with a particular increase in an activity.

Define marginal cost: Marginal cost is a concept in economics that measures the cost of producing one additional unit of a good or service.

Understand the concept of cost: Cost refers to the expenses incurred in the production or acquisition of goods or services.

Identify the nature of marginal cost: Marginal cost focuses specifically on the incremental or additional cost of producing or engaging in a particular activity.

Differentiate from total cost: Total cost represents the sum of all costs incurred in producing a given quantity of goods or providing a service, including fixed costs and variable costs. It is not specific to a particular increase in an activity.

Recognize opportunity cost: Opportunity cost refers to the value of the next best alternative forgone when choosing one option over another. While related to costs, it is not directly associated with a particular increase in an activity.

Exclude forgone cost: "Forgone cost" is not a commonly recognized term in economics and is not directly associated with the concept of marginal cost.

In conclusion, the correct answer is b) additional cost, as marginal cost represents the additional cost incurred with a specific increase in an activity.

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BG. What is the Days Sales Outstanding (DSO) for the Widget
company for 2020? 4 138 124 101 21

Answers

The Days Sales Outstanding (DSO) for the Widget company in 2020 can be calculated by averaging the number of days it takes for the company to collect its accounts receivable.

Given the values provided (4, 138, 124, 101, 21), the DSO can be determined. The average DSO for the Widget company in 2020 is 77.6 days. This means that, on average, it takes the company approximately 77.6 days to collect its accounts receivable. A lower DSO indicates that the company collects payments more quickly, which can be beneficial for its cash flow and overall financial health.

Conversely, a higher DSO suggests that the company takes longer to collect payments, which may indicate potential issues with its credit policies or collection efforts. Monitoring and managing DSO is important for companies to ensure efficient cash flow management and timely collection of receivables.

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This option, in Profiles, is used to alert users that the person or company associated with the Profile should be denied access.
a. Contact
b. Routing
c. Restricted
d. Notifications

Answers

The correct option in Profiles that is used to alert users that the person or company associated with the Profile should be denied access is Restricted. Here option C is the correct answer.

The "Restricted" option in Profiles is a setting that indicates that access should be denied to the individual or organization associated with that particular profile. When this option is selected, it serves as a warning or alert to other users or administrators that access should not be granted to the restricted entity.

Designating a profile as "Restricted" communicates that there are specific reasons for denying access to the person or company linked to that profile. This could be due to security concerns, legal restrictions, policy violations, or any other relevant reasons that warrant the denial of access.

By utilizing the "Restricted" option, administrators can easily identify and manage profiles that require restricted access, ensuring that appropriate measures are taken to prevent unauthorized entry and maintain the security and integrity of the system or platform. Therefore option C is the correct answer.

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Write a report that explains why some manufacturer chose a 6-cylinder inline engine over other configurations. The report should at least discuss the aspect of the engine dynamics characteristics which include packaging and performance, balance, firing order, etc. Other multi-discipline aspects should also be included in your report where in most of the case, the design selection is not purely based on the engineering aspect only. It could also include the market driven, environmental, economy, government policy, etc. Provide example of a successful inline 6-cylinder engine. (Hints: the report could be enhanced with additional of graph, diagram, etc.)

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Report: Advantages of 6-Cylinder Inline Engine Configuration The purpose of this report is to explain why manufacturers often choose a 6-cylinder inline engine configuration over other options.

The decision to select a particular engine configuration involves a range of factors, including engine dynamics characteristics, market demands, environmental considerations, and government policies. This report will focus on the various aspects of the engine dynamics characteristics and highlight the advantages of the inline 6-cylinder engine configuration. Additionally, a successful example of an inline 6-cylinder engine will be provided to illustrate its effectiveness.

Engine Dynamics Characteristics:

1. Packaging and Performance: The inline 6-cylinder engine offers a compact design, making it easier to fit into different vehicle types. This configuration provides an optimal balance between performance and space utilization, making it suitable for a wide range of applications.

2. Balance: The inline 6-cylinder engine has inherent balance due to its symmetrical layout, resulting in smoother operation and reduced vibrations. This balance is achieved by evenly spacing the firing intervals, which contributes to improved engine refinement and driver comfort.

3. Firing Order: The firing order of a 6-cylinder inline engine is typically designed for even power delivery and reduced engine stress. The firing order can be configured to achieve a desirable torque output throughout the engine's RPM range, enhancing overall performance

Multi-Discipline Aspects:

1. Market Driven: The popularity of the inline 6-cylinder engine configuration is driven by market demands, as it offers a good balance between power and fuel efficiency. Customers often prefer vehicles with smooth power delivery, and the inline 6-cylinder engine satisfies this expectation.

2. Environmental Considerations: Inline 6-cylinder engines can be designed to meet stringent emission regulations. With advancements in technology, manufacturers can incorporate features like direct injection, turbocharging, and hybridization to enhance fuel efficiency and reduce carbon emissions.

3. Economy and Government Policies: Some countries offer incentives or tax benefits for vehicles with specific engine configurations. Inline 6-cylinder engines may qualify for such incentives due to their efficiency and compliance with government regulations, making them an attractive choice for manufacturers.

Example of a Successful Inline 6-Cylinder Engine:

One notable example of a successful inline 6-cylinder engine is BMW's N55 engine. This powerplant is renowned for its exceptional performance, smooth power delivery, and efficiency. It combines advanced technologies like turbocharging, direct injection, and variable valve timing to optimize power output while maintaining fuel economy. The N55 engine has been widely praised for its balance, refinement, and durability, making it a preferred choice for many BMW models.

Conclusion:

The decision to choose a 6-cylinder inline engine configuration involves a range of considerations, including engine dynamics characteristics, market demands, environmental factors, and government policies. The inline 6-cylinder engine offers advantages in terms of packaging, balance, firing order, and performance. Additionally, factors like market-driven demands, environmental considerations, economy, and government policies influence the selection of this configuration. The success of the BMW N55 engine exemplifies the effectiveness of the inline 6-cylinder configuration in delivering a combination of performance, efficiency, and customer satisfaction.

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Required information Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below. Ries, Bax, and Thomas invested $34,000,$50,000, and $58,000, respectively, in a partnership. Dur year, the firm earned $356,400. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to $356,400 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 2 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers in the tabs below. Allocate $356,400 net income in the ratio of their beginning capital investments. (Do not round intermediate calcul Round final answers to the nearest whole dollar.)

Answers

Ries would be credited the net income of $85,351, Bax would be credited $125,158, and Thomas would be credited $145,891.

The net income of $356,400 will be allocated among the partners in proportion to their beginning capital investments. Ries, Bax, and Thomas invested $34,000, $50,000, and $58,000, respectively, in the partnership. The allocation of net income will be based on these ratios.

To allocate the net income in the ratio of their beginning capital investments, we need to determine the total capital investment in the partnership. The total capital investment is calculated by summing up the individual capital investments of each partner: $34,000 + $50,000 + $58,000 = $142,000.

Next, we calculate the ratio for each partner by dividing their individual capital investment by the total capital investment:

- Ries: $34,000 / $142,000 = 0.2394 (rounded to four decimal places)

- Bax: $50,000 / $142,000 = 0.3521 (rounded to four decimal places)

- Thomas: $58,000 / $142,000 = 0.4085 (rounded to four decimal places)

These ratios represent the proportion of the net income that each partner is entitled to receive. To allocate the net income of $356,400, we multiply each partner's ratio by the total net income:

- Ries: 0.2394 x $356,400 = $85,351 (rounded to the nearest whole dollar)

- Bax: 0.3521 x $356,400 = $125,158 (rounded to the nearest whole dollar)

- Thomas: 0.4085 x $356,400 = $145,891 (rounded to the nearest whole dollar)

Therefore, the entry to close the firm's Income Summary account would include a debit to Income Summary for $356,400 and a credit to each partner's capital account based on their allocated share of the net income.

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Knapp Industries began business on January 1,2018 by issuing all of its 1,400,000 authorized shares of its $2 par value common stock for $27 per share. On June 30 , Knapp declared a cash dividend of $2.75 per share to stockholders of record on July 31 . Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 280,000 of its own shares of stock for $32 per share. On December 22 , Knapp resold 140,000 of these shares for $38 per share.
Required:
a. Prepare all of the necessary journal entries to record the events described above.
b. Prepare the stockholders' equity section of the balance sheet as of December 31,2018 assuming that the net income for the year was $6,500,000

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a. The necessary journal entries to record the events described above are:

1. Issuing shares of common stock on January 1, 2018

2. Declaration of cash dividend on June 30, 2018

3. Payment of cash dividend on August 30, 2018

4. Repurchase of shares on November 1, 2018

5. Resale of shares on December 22, 2018

b. The stockholders' equity section of the balance sheet as of December 31, 2018, assuming a net income of $6,500,000 includes common stock, additional paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income.

a. Journal Entries:

1. Issuing shares of common stock:

  Dr. Cash (1,400,000 shares × $27)            37,800,000

      Cr. Common Stock (1,400,000 shares × $2)     2,800,000

      Cr. Additional Paid-in Capital                     35,000,000

2. Declaration of cash dividend:

  Dr. Retained Earnings                                  3,850,000

      Cr. Dividends Payable                               3,850,000

3. Payment of cash dividend:

  Dr. Dividends Payable                               3,850,000

      Cr. Cash                                                  3,850,000

4. Repurchase of shares:

  Dr. Treasury Stock (280,000 shares × $32)    8,960,000

      Cr. Cash                                                8,960,000

5. Resale of shares:

  Dr. Cash (140,000 shares × $38)                 5,320,000

      Cr. Treasury Stock (140,000 shares × $32)    4,480,000

      Cr. Additional Paid-in Capital                           840,000

b. Stockholders' Equity Section of Balance Sheet:

  Common Stock                                            $2,800,000

  Additional Paid-in Capital                            35,840,000

  Retained Earnings (Opening Balance + Net Income) $10,350,000

  Treasury Stock                                           (4,480,000)

  Accumulated Other Comprehensive Income        (To be provided if available)

  Total Stockholders' Equity                          $44,510,000

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You are an exemplary e-mailer, list Eight tips on how to handle
a proper e-mail? (8pts.)

Answers

1. Use a clear and concise subject line.

2. Use a professional and appropriate email address.

3. Start with a proper greeting.

4. Keep the email concise and focused.

5. Use proper grammar and punctuation.

6. Be polite and professional in your tone.

7. Include a professional email signature.

8. Proofread before sending.

1. Use a clear and concise subject line: Your subject line should accurately summarize the content of the email to grab the recipient's attention and help them understand the purpose of the email.

2. Use a professional and appropriate email address: Your email address should reflect your professionalism. Avoid using personal or unprofessional email addresses for business communication.

3. Start with a proper greeting: Begin your email with a polite and professional salutation, such as "Dear [Name]" or "Hello [Name]." This sets a respectful tone and shows consideration for the recipient.

4. Keep it concise and focused: Keep your email message clear and to the point. Avoid lengthy paragraphs and unnecessary details. Use bullet points or numbered lists when appropriate to improve readability.

5. Use proper grammar and punctuation: Proofread your email for grammar and spelling errors before sending it. Use proper punctuation and capitalization to ensure clarity and professionalism.

6. Be polite and professional: Use a polite and respectful tone throughout your email. Avoid using overly casual language or slang. Use words like "please" and "thank you" to maintain a courteous tone.

7. Use a professional email signature: Include a professional email signature at the end of your email. This should include your name, job title, contact information, and any relevant links or social media profiles.

8. Proofread before sending: Before hitting the send button, take a moment to review your email for any errors or omissions. Double-check the recipient's email address, attachments, and any other details to ensure accuracy.

Remember, effective email communication is crucial for maintaining professional relationships, so following these tips will help ensure your emails are well-crafted and professional.

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If you value a longboard at $200 and you buy it from Walter Mitty, who values it at $50, for a price of $130, you have created gains from trade of
a) $200
b) $150
c) $130
d) $80
e) $70

Answers

Correct option is e.  $70. The gains from trade created in this transaction amount to $70. because you value the longboard at $200 but purchase it for $130, creating a $70 gain.

When you value the longboard at $200 and purchase it from Walter Mitty for $130, a gain from trade is generated. This gain can be calculated by subtracting the price you paid ($130) from the value you assigned to the longboard ($200). The difference, in this case, is $70, which represents the gains from trade.

In the transaction, Walter Mitty values the longboard at $50. However, you, as the buyer, place a higher value on it, valuing it at $200. This difference in valuation creates an opportunity for trade. By purchasing the longboard for $130, you obtain a product that you value more than its purchase price, resulting in a gain.

The gains from trade are a fundamental concept in economics. They arise from individuals' different valuations and preferences for goods or services. In this scenario, the gains from trade amount to $70, reflecting the difference between the price paid and the value assigned to the longboard.

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Explain the following concepts in detail
• Organizational structure
• Work groups and work teams
• Stages of group development
• Team Conflict
• Span of control
• Key elements of motivation
• Motivation theories
• Herzberg theory
• Theory X and Y
• Blanchard Hershey
• Path-Goal
• Trait theory
• Leadership styles
• Boundaryless organizations
• Feedforward, concurrent, feedback controls

Answers

Organizational structure refers to the framework of roles, responsibilities, relationships, and communication channels within an organization.

It defines how tasks are divided, coordinated, and controlled to achieve the organization's goals. Common types of organizational structures include functional, divisional, matrix, and flat structures. The structure influences decision-making, authority distribution, and communication flow within the organization.

Work groups are collections of individuals who interact primarily to share information and make decisions to help each member perform their individual tasks more efficiently.

Forming: The initial stage is where members get acquainted, define roles, and establish ground rules.Storming: Conflict and power struggles may arise as members establish their positions and test the group's dynamics.Norming: The group establishes norms, resolves conflicts, and develops cohesion.Performing: The group focuses on achieving its goals and effectively working together.Adjourning: The final stage is when the group disbands or transitions to a new project.

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to make an informed selection about where to advertise, a small business manager should. True or False

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Yes, it is true that a small business manager should make an informed selection about where to advertise in order to be effective.

What is the importance of making an informed selection when advertising for a small business?

Advertising for a small business has become a crucial part of the business world. In order to make your business successful, you must advertise it in the right way. One of the main things a small business manager should do is make an informed selection about where to advertise in order to be effective. It's important to make informed selections when advertising for a small business because you don't want to waste time and money on ineffective advertising methods.

By doing so, the small business owner will be able to determine which advertising methods work best for their business. For instance, advertising through the local newspaper may be a great way to reach a specific group of potential customers, while advertising on social media might work better for another group of customers. By making an informed selection on which advertising method works best for the target market of the small business, the business owner is more likely to see an increase in sales and profit.

An informed selection will help the small business manager to find out the best advertising method for their target customers. This will save both time and money, and also increase the probability of attracting more customers.

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Write a 700- to 1,050-word self-reflection on what would motivate you to work more innovatively. Include the following:

Detail how your current employer can change strategies within the organization to promote your internal motivation and innovation.
Discuss what motivates you, in general, to be innovative.
Be creative, innovative, and entrepreneurial in your self-assessment.

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To work more innovatively, I am motivated by a combination of intrinsic and extrinsic factors. Intrinsic motivation stems from my passion for problem-solving, creativity, and personal growth. Extrinsic motivation comes from recognition, a supportive work environment, and opportunities for career advancement.

In my current organization, there are several strategies that can be implemented to promote my internal motivation and innovation. First, fostering a culture of psychological safety is crucial. When employees feel safe to take risks, share ideas, and make mistakes without fear of judgment or retribution, it encourages innovation. This can be achieved by promoting open communication, actively listening to employee ideas, and providing constructive feedback.

Furthermore, allowing for dedicated time and resources for experimentation and exploration can fuel innovation. Allocating specific project hours or implementing "innovation sprints" allows employees to focus on innovative endeavors without being overwhelmed by their regular responsibilities.

Another strategy is providing opportunities for professional development and growth. This can include training programs, workshops, or mentoring relationships that enhance employees' skill sets and inspire them to think outside the box.

Moreover, recognizing and rewarding innovative efforts is crucial. Establishing a system that acknowledges and celebrates creativity and innovation can motivate employees to continually generate and implement innovative ideas.

In general, I am motivated to be innovative by a sense of purpose and the desire to make a meaningful impact. Knowing that my work can contribute to positive change and solve real-world problems drives my intrinsic motivation. Additionally, receiving recognition for my innovative contributions and seeing the tangible outcomes of my ideas brings me a sense of fulfillment and motivates me to continue pushing boundaries.

To promote my internal motivation and innovation, my current employer can change strategies by fostering a culture of psychological safety, providing dedicated time for experimentation, offering professional development opportunities, and recognizing and rewarding innovative efforts. My personal motivation to be innovative stems from a sense of purpose and the desire to make a meaningful impact. By nurturing these factors, my employer can tap into my creative potential and inspire me to work more innovatively. Ultimately, by creating an environment that supports and values innovation, my employer can unleash the full potential of its employees and drive organizational success.

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Theresa borrowed ​$3919 compounded annually to help finance her education. She contracted to repay the loan in annual payments of​$297.00 each. If the payments are due at the end of each year and interest is ​7% compounded annually ​, how long will Theresa have to make ​annual payments? State your answer in years and months​(from 0 to 11​ months).

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Theresa will have to make annual payments for 12 years and 0 months. Given the principal amount (P) = $3919, the annual payment (A) = $297, and the rate of interest (R) = 7% per annum.

Using the formula of the present value of an annuity, we have:

Present value of an annuity = A * [(1 - (1 + R/100)^-n)/(R/100)]

Where n is the number of years for which the annual payments are to be made.

Now, using the above formula and substituting the given values, we have:

3919 = 297 * [(1 - (1 + 7/100)^-n)/(7/100)]

Therefore, [(1 - (1 + 7/100)^-n)/(7/100)] = 3919/297

⇒ (1 - (1 + 7/100)^-n) = (3919/297) * (7/100)

Now, to calculate the number of years, we need to solve for n. Using logarithms, we get:

n = log10[(1 + (3919/297) * (7/100))] / log10(1.07) ≈ 12.06 years

Hence, the number of years for which the annual payments are to be made is 12 years and 0.06 years ≈ 12 years and 0 months.

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4. Please give one of the current situations in the world (Covid-19, War, etc.). Based on this situation please give your answer below. 4.1 Give example of 2 businesses in collaborative economy that will be doing well. Briefly explain thes businesses and why they will be doing well in this situation. (10 points) 4.2 Give example of 2 businesses in collaborative economy that will be doing poorly. Briefly explain these businesses and why they will be doing poorly in this situation. (10 points)

Answers

4.1 Grocery delivery and remote work collaboration thrive, while

4.2 ride-sharing and shared workspace struggle due to reduced demand.

4.1 In the current Covid-19 pandemic situation, two businesses in the collaborative economy that are likely to be doing well are:

a) Grocery Delivery Platforms: With movement restrictions and social distancing measures in place, crowded places like supermarkets are to be avoided.

Grocery delivery platforms connecting customers with local stores or independent shoppers can thrive in such circumstances. These platforms enable customers to conveniently order groceries online and have them delivered to their doorstep, minimizing the risk of virus exposure.

b) Remote Work Collaboration Tools: With remote work becoming prevalent due to the pandemic, businesses offering collaboration tools for remote teams are experiencing increased demand.

These tools facilitate virtual meetings, file sharing, project management, and team communication. Companies providing video conferencing software, project management platforms, and team collaboration tools are likely to thrive as organizations adapt to remote work environments.

These businesses benefit from the need for convenience, safety, and remote collaboration during the pandemic.

4.2 In the current Covid-19 pandemic situation, two businesses in the collaborative economy that may be doing poorly are:

a) Ride-Sharing Services: Ride-sharing services relying on people's mobility and travel demand, such as Uber and Lyft, may experience a decline in business.

With travel restrictions, reduced commuting, and increased concerns about sharing enclosed spaces with strangers, the demand for ride-sharing services has significantly decreased.

b) Shared Workspace Providers: Companies offering shared workspaces, coworking spaces, or flexible office solutions may face challenges. Remote work has become the norm, and businesses have implemented work-from-home policies.

The demand for physical office spaces and communal work environments has diminished, impacting the occupancy rates and financial viability of shared workspace providers.

These businesses may struggle due to reduced demand caused by restrictions, remote work practices, and safety concerns associated with close physical proximity in shared transportation or workspace environments.

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Over the past 6 months, you observe the following monthly returns for an actively
managed small cap mutual fund and for the benchmark small cap index:

Time Fund return (%) Index return (%)
1 2.8 2.37
2 1.99 1.74
3 -2.41 -2.35
4 0.42 0.71
5 -0.62 -0.73
6 2.18 2.78

What is the tracking error for the fund over this period?

Answers

The tracking error for the fund over the past 6 months is 0.555%, indicating the deviation of the fund's returns from the benchmark index's returns.

Tracking error measures the deviation of the fund's returns from the benchmark index's returns. It provides an indication of how closely the fund is tracking or deviating from the benchmark. To calculate the tracking error, we need to determine the differences between the fund returns and the benchmark returns for each month, calculate the squared differences, average them, and then take the square root of the average.

Using the given data, we can calculate the tracking error as follows:

Month 1: (2.8 - 2.37)² = 0.1849

Month 2: (1.99 - 1.74)² = 0.0625

Month 3: (-2.41 - (-2.35)² = 0.0036

Month 4: (0.42 - 0.71)² = 0.0841

Month 5: (-0.62 - (-0.73)² = 0.0121

Month 6: (2.18 - 2.78)² = 0.0369

Average: (0.1849 + 0.0625 + 0.0036 + 0.0841 + 0.0121 + 0.0369) / 6 = 0.0568

Tracking error: √(0.0568) = 0.2381 = 0.555% (rounded to three decimal places). Hence, the tracking error for the fund over the past 6 months is 0.555%.

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Fiscal Policy Article Casy Study Read the following article on the use of Fiscal Policy in the real world. It is an excellent review of many of the concepts covered thus far in our course. http://www.imf.org/external/pubs/ft/fandd/basics/fiscpol.htm

In paragraph form, respond specifically to the section of the article entitled "response to the global crisis" and outline: What caused the crisis How governments used various types of fiscal policy to help What difficulties they encountered

Answers

The crisis was caused by the bursting of the US housing bubble. Governments used fiscal policy measures, but faced constraints and coordination challenges.

The article analyses the roots of the crisis, how governments used fiscal policy, and the difficulties they faced in the part labelled "Response to the Global Crisis." The primary cause of the crisis was the American housing bubble burst, which resulted in a catastrophic financial crisis and a following global recession. Governments used a variety of fiscal policy tools to combat the crisis, including more government spending and tax reductions, to boost the economy and stabilize the financial system. Due to constrained fiscal space, rising public debt, and the requirement for international cooperation, governments had trouble putting these measures into practice. budgetary policy solutions were also hampered by worries about long-term budgetary viability and anticipated inflationary pressures.

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For each of the separate scenarios, determine the associated shortcoming of fiscal policy: - Students do not need to buy laptops as they can get free laptops from the government. - The government believes that the economy is doing well. Yet the economy is in a recession. Households and firms reduce their spending significantly. - Some households consume less after a tax cut because they expect the government will raise taxes in the future. - The tax cut was implemented last year. Yet the economy is still in a recession.savings shiftrecognition lagcrowding outimplementation lagimpact lag Which one of the following investments will be worth the most after 12 years (Choose the most correct option)?Investment 1: A fixed investment (NACM) of R8.2 million, generating a return of 5.22% per annum.Investment 2: A zero-coupon bond with a face value of R16 million and an initial maturity of 12 years. Assume that the annual required rate of return is 4.88%.Investment 3: A Money Market Call Account (NACW) of R 9.5 million, generating a return of 3.82% per annum.Alternatives:A.Investment 3.B.Investment 2.C.Investment 1. Which of the following is true about jobs in the field of cybersecurity?A.There are a lot of unfilled positions in cybersecurity right now, but in the next few years all of those positions will be filled.B.Right now there aren't many unfilled cybersecurity positions, but there will be more in the next couple of years.C.There are many unfilled cybersecurity positions right now, and there will be even more unfilled positions in the next couple of years.D.There are too many qualified cybersecurity professionals. There are no unfilled positions now, and there won't be any unfilled positions in the next few years. Which of the following would notbe an activity a return facilitator handles?a.recommending a new supplierb.repairing the manufactured goodc.requesting money back for a customer Jean's hearing has diminished over the years. She probably has the most difficulty hearing ____a. the sermon at church.b. the birds chirping in her garden.c. a conversation over the telephone.d. conversation at the dinner table. the earth's inner core is made mostly of ________.