Poole Products has the following product information available:
Sales price $25 per unit
Variable costs $10 per unit
Fixed costs $36 000

If Poole's tax rate is 40%, how many units need to be sold in order to earn an after-tax target profit of $249000?
a. 30 067
c. 12 360
c. 27 667
d. 31 667

Charlie's Hotdog Stand sells hotdogs for $2.50 each. The variable costs per hotdog are $0.50. Charlie's fixed costs are currently $800 per month. Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by $1200. If Charlie does expand his business to three stands, how many hotdogs will need to be sold per month in order to earn a target profit of $5000?
a. 2500
b. 3100
c. 3500
d. 2800

Operating leverage measures:
a. how sensitive profit is to a change in fixed costs.
b. how sensitive profit is to a change in sales volume.
c. how sensitive profit is to a change in sales price per unit.
d. how sensitive profit is to a change in tax rates.

Answers

Answer 1

1) units sold is 30,067 option a ; 2) number of hot dogs sold 3500 option b

1)If Poole's tax rate is 40%, the number of units need to be sold in order to earn an after-tax target profit of $249000 can be calculated as follows: Fixed costs = $36,000 , Variable costs per unit = $10, Sales price per unit = $25

The contribution margin per unit will be: Contribution margin per unit = Sales price per unit − Variable cost per unit= $25 − $10= $15

Contribution margin ratio will be: Contribution margin ratio = Contribution margin per unit ÷ Sales price per unit= $15 ÷ $25= 0.6

For after-tax target profit, the amount of income before taxes will be:

Income before taxes = After-tax target profit ÷ (1 − Tax rate)= $249,000 ÷ (1 − 0.40)= $415,000

Then the number of units that will need to be sold to earn this income before taxes will be:

Number of units sold = (Fixed costs + Income before taxes) ÷ Contribution margin per unit= ($36,000 + $415,000) ÷ $15= $451,000 ÷ $15= 30,067

The answer is A. 30,067

2) Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by $1200.

If Charlie does expand his business to three stands, the number of hotdogs that will need to be sold per month in order to earn a target profit of $5000 can be calculated as follows:

Number of hotdogs sold = (Fixed costs + Target profit) ÷ Contribution margin per unit

Contribution margin per unit = Sales price per unit − Variable cost per unit= $2.50 − $0.50= $2.00

When Charlie expands his business, the fixed costs per month will become $800 + $1,200 = $2,000

Therefore, the contribution margin ratio will be:

Contribution margin ratio = Contribution margin per unit ÷ Sales price per unit= $2.00 ÷ $2.50= 0.8

Then, the number of hotdogs that will need to be sold will be: Number of hotdogs sold = ($2,000 + $5,000) ÷ $2.00= $7,000 ÷ $2.00= 3,500

Thus, the answer is option c. 3500.

3) Operating leverage measures how sensitive profit is to a change in sales volume.

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Related Questions

Analyze the different financing sources for exporters available in Bahrain

Answers

Financing sources for exporters in Bahrain include commercial banks, export credit agencies, Islamic finance institutions, and government support programs.

In Bahrain, exporters have access to various financing sources to support their international trade activities. These sources include:

1. Commercial Banks: Bahraini commercial banks offer trade finance solutions such as letters of credit, bank guarantees, and export financing facilities to exporters. These services provide working capital, mitigate risks, and facilitate smoother transactions.

2. Export Credit Agencies (ECAs): ECAs such as the Export-Import Bank of Bahrain (EIB) provide insurance and financial guarantees to exporters. They help mitigate commercial and political risks associated with international trade, allowing exporters to access financing with more favorable terms.

3. Islamic Finance Institutions: Bahrain, being a hub for Islamic finance, offers Sharia-compliant financing options for exporters. Islamic banks provide trade finance products such as Murabaha (cost-plus financing), Istisna'a (contract-based financing), and Salam (prepaid financing) to support export activities.

4. Government Support Programs: The Bahraini government provides support programs to promote exports. The Export Development Fund (EDF) offers financing, insurance, and marketing support to exporters. Additionally, government initiatives like the Bahrain Economic Development Board (EDB) facilitate access to export markets and attract foreign investment.

These financing sources play a crucial role in enabling Bahraini exporters to expand their international trade activities, mitigate risks, and secure working capital. Exporters should assess their specific needs and eligibility criteria to determine the most suitable financing source for their business. It is advisable to consult with financial institutions and industry experts to explore available options and tailor financing solutions to their export requirements.

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An investment costs $212,000 today and promises a series of $88,000 annual cash inflows in each of the next 10 years. The first cash inflow occurs one year from today. What is the net present value of this investment if the discount rate is 12%? Round your answer to the nearest dollar. Be sure to enter a negative sign (-) if your answer is a negative number.

Answers

To calculate the net present value (NPV) of the investment, we need to discount the future cash inflows to their present value and subtract the initial cost.

Given:

Initial cost = $212,000

Annual cash inflows = $88,000

Number of years = 10

Discount rate = 12%

To calculate the present value (PV) of each cash inflow, we use the formula:

PV = Cash Inflow / (1 + Discount Rate)^n

where n is the number of years from the present.

Calculating the present value of each cash inflow:

PV1 = $88,000 / (1 + 0.12)^1 = $78,571.43

PV2 = $88,000 / (1 + 0.12)^2 = $70,102.68

PV3 = $88,000 / (1 + 0.12)^3 = $62,543.57

PV10 = $88,000 / (1 + 0.12)^10 = $24,092.08

Now, we can calculate the NPV by summing up the present values and subtracting the initial cost:

NPV = PV1 + PV2 + PV3 + ... + PV10 - Initial cost

= $78,571.43 + $70,102.68 + $62,543.57 + ... + $24,092.08 - $212,000

Calculating the sum of the present values:

Sum of PV = $621,037.51

Calculating the NPV:

NPV = $621,037.51 - $212,000

NPV = $409,037.51

Rounding to the nearest dollar, the net present value (NPV) of this investment is approximately $409,038.

Therefore, the net present value (NPV) of this investment is approximately $409,038.

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Alfred Spindle earned gross wages of $1,520 for the week ended June 21, 20X1. His gross wages year to date, prior to his June 21 paycheck, were $37,550. He had $72 withheld from his pay for federal income taxes, and $11 for health insurance. Social Security tax is 6.2% and Medicare tax is 1.45%; the federal unemployment tax rate is 0.6% and the state unemployment tax rate is 4.2%, both on a maximum of $7,000 per each employee's annual earnings. What is the total employer payroll tax expense associated with Alfred's June 21, 20X1, paycheck?

Answers

Therefore, the total employer payroll tax expense associated with Alfred's June 21, 20X1, paycheck is $189.24

To calculate the total employer payroll tax expense associated with Alfred's June 21, 20X1 paycheck, we need to consider the following taxes:

Social Security Tax:

The Social Security tax rate is 6.2% of the employee's gross wages. However, it is only applied to a maximum of $7,000 in annual earnings. Therefore, the Social Security tax on Alfred's wages is calculated as follows:

Social Security tax = min(gross wages, maximum earnings subject to Social Security tax) * Social Security tax rate

= min($1,520, $7,000) * 6.2%

= $1,520 * 6.2%

= $94.24

Medicare Tax:

The Medicare tax rate is 1.45% of the employee's gross wages, with no maximum limit. Therefore, the Medicare tax on Alfred's wages is calculated as follows:

Medicare tax = gross wages * Medicare tax rate

= $1,520 * 1.45%

= $22.04

Federal Unemployment Tax (FUTA):

The FUTA tax rate is 0.6% on the first $7,000 of annual earnings for each employee. Since Alfred's gross wages do not exceed this limit, the FUTA tax is calculated as follows:

FUTA tax = gross wages * FUTA tax rate

= $1,520 * 0.6%

= $9.12

State Unemployment Tax (SUTA):

The SUTA tax rate is 4.2% on the first $7,000 of annual earnings for each employee. As Alfred's gross wages are below this limit, the SUTA tax is calculated as follows:

SUTA tax = gross wages * SUTA tax rate

= $1,520 * 4.2%

= $63.84

Therefore, the total employer payroll tax expense associated with Alfred's June 21, 20X1, paycheck is the sum of the above taxes:

Total employer payroll tax expense = Social Security tax + Medicare tax + FUTA tax + SUTA tax

= $94.24 + $22.04 + $9.12 + $63.84

= $189.24

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Operation management department has interaction with: marketing department finance deparment (a) and (b) none of the above

Answers

The operation management department interacts with both the marketing and finance departments.

Operations management (OM) is responsible for overseeing the production of goods and services in a company. It requires coordination with other departments in the company, including marketing and finance, to ensure smooth operations and growth. Marketing department: The OM department interacts with the marketing department to understand customer demand and tailor production to meet that demand. By coordinating with marketing, OM can ensure that the company produces goods and services that are in line with what customers want. OM also provides input to the marketing team to ensure that the company's production capabilities match its marketing plans. This interaction helps the company avoid underproducing or overproducing goods and services. Finance department: The OM department interacts with the finance department to ensure that production is profitable and within budget. OM works with finance to establish cost structures for production and ensure that production is optimized to minimize costs while maintaining quality. By coordinating with finance, OM can ensure that the company is making sound financial decisions and operating within its means. This interaction also helps OM to forecast demand and production needs accurately, which is critical for financial planning and budgeting.

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Why are general controls so Important in the audit team's evaluation of Internal control and assessment of control risk and risk of material misstatement?

Answers

General controls provide a foundation for effective internal control systems and play a crucial role in the audit team's evaluation of internal controls and assessment of control risk and risk of material misstatement. They help ensure the reliability, security, and compliance of systems and processes, thereby reducing the risk of errors, fraud, and financial misstatements.

General controls are important in the audit team's evaluation of internal control and assessment of control risk and risk of material misstatement for several reasons:

1. Coverage of multiple systems and processes: General controls apply to the overall IT infrastructure and environment, including the operating systems, network security, access controls, and change management processes. These controls are designed to provide a foundation of security and reliability for all systems and applications within the organization. By assessing general controls, the audit team gains an understanding of the overall effectiveness of the control environment and its impact on specific systems and processes.

2. Influence on application controls: General controls have a significant impact on the design and operating effectiveness of application controls. Application controls are specific to individual business processes and applications and are dependent on the underlying general controls for their reliability. For example, access controls at the system level influence the access controls within individual applications. Therefore, evaluating general controls helps the audit team assess the overall effectiveness and reliability of application controls.

3. Risk mitigation: General controls address risks at a broader level and help mitigate the risk of material misstatement across multiple systems and processes. By assessing general controls, the audit team can identify weaknesses or deficiencies that could lead to a higher risk of material misstatement. This enables them to focus their testing and evaluation efforts on areas of higher risk and allocate resources effectively.

4. Compliance with regulations and standards: General controls often have a direct impact on compliance with regulatory requirements and industry standards. For example, access controls and data security measures are essential for protecting sensitive information and complying with data protection regulations. By evaluating general controls, the audit team can assess the organization's compliance with relevant regulations and standards.

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Trane Corp. manufactures long-lived, custom-made equipment, which its customers treat as capital items. Trane's sales force faces much multiple buying influence. Trane's products, which do not become part of the customer's final product, are
Question 1 options:
a) installations.
b) MRO items.
c) accessory equipment.
d) operating supplies.

Answers

Trane Corp.'s products, which are long-lived and custom-made equipment, do not become part of the customer's final product. Instead, they can be classified as accessory equipment.

Trane Corp. manufactures custom-made equipment that is not incorporated into the customer's final product. This suggests that the equipment is used alongside or in support of the customer's primary production processes. In such cases, the equipment can be categorized as accessory equipment.

Accessory equipment refers to additional items or components that are used in conjunction with the main equipment or machinery but are not integral to the final product.

Unlike installations, which typically involve the setup or assembly of equipment, or MRO (maintenance, repair, and operations) items, which are consumable or replaceable components needed for ongoing maintenance, Trane's products are designed to be long-lived and custom-made. Therefore, they do not fall under the categories of installations or MRO items.

Similarly, operating supplies, such as raw materials or consumables used in the production process, are not applicable in this case as Trane's equipment does not become part of the customer's final product. Thus, the most appropriate classification for Trane's products would be accessory equipment.

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If the cash flows for project A are CO = −3,000, C1 = +500; C2 = +1,500; and C3 = +5,000, calculate the NPV of the project using a 15 percent discount rate. Select one:
a. $5.000
b. $3,201
c. $1,857
d. $2.352

Answers

After discounting the cash flows at a 15% discount rate and subtracting the initial investment, the calculated NPV for the project is approximately $695.25.

The cash flows are discounted at the specified discount rate, and the initial investment is then subtracted to determine the project's net present value (NPV).

The cash flows for project A in this instance are as follows: CO = -3,000, C1 = +500, C2 = +1,500, and C3 = +5,000. The discount percentage is 15%.

We apply the discount rate to each cash flow to determine the NPV:

NPV is equal to the product of (CO / (1 + r)0) + (C1 / (1 + r)1) + (C2 / (1 + r)2) + (C3 / (1 + r)3).

where the discount rate is r.

Plugging in the numbers produces the following results: NPV = (-3,000 / (1 + 0.15)0) + (500 / (1 + 0.15)1) + (1,500 / (1 + 0.15)2) + (5,000 / (1 + 0.15)3)

To make the calculation easier:

PV = -3,000 + 500 / (1 + 0.15) + 1,500 / (1 + 0.15)^2 + 5,000 / (1 + 0.15)^3

figuring out the discounted values

NPV 695.25 NPV = -3,000 + 434.78 + 1,059.39 + 3,201.08

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International business facilitates the mobility of all of the following factors of production EXCEPT:

a) Technology
b) Capital
c) Laborers
d) Land
e) Managers

Answers

International business facilitates the mobility of all of the following factors of production EXCEPT land. This is the correct option among the given options.

What is international business?

International business is the trade of goods, services, technology, capital, or knowledge across national borders and at a global or transnational level. This can also be referred to as cross-border business, overseas business, or global business. It is characterized by the transaction between different countries, people, and different business institutions.

The factors of production are the resources required for the production of goods and services. International business is involved in the movement of all factors of production that include capital, laborers, technology and managers but it excludes land.

Technology - International business involves the transfer of technology, ideas, patents, copyrights, and licenses from one country to another. By leveraging technology transfer, businesses can gain a competitive edge and reduce research and development costs.

Capital - Capital, which is defined as investment funds, is crucial for international business as it enables firms to finance operations in foreign countries, invest in technology, research and development, and purchase raw materials.

Laborers - International business requires human resources, such as laborers and managers, to operate. Businesses must address cultural and linguistic differences, work permits and visa requirements, and adhere to local labor laws.

Managers - International businesses require skilled managers to oversee operations, plan strategies, and manage teams. They must navigate cultural and legal differences and comply with local regulations to succeed in foreign markets.

Land - International business does not facilitate the mobility of land. However, businesses must deal with laws and regulations regarding land ownership in foreign countries. They also need to purchase or lease land to establish their operations in foreign countries.

International business helps to utilize all these factors of production efficiently and effectively for producing goods and services for different countries.

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Emmons Lawn Maintenance (ELM) provides lawn and garden care for residential properties. In the current year, ELM maintains 78 properties and earns an average of $5,600 annually for each property. The owner of ELM is planning for the coming year. New building in the area is expected to increase volume by 23 percent. In addition, the owner estimates that the number of homeowners that will want ELM's service will increase by 13 percent. ELM plans to increase the price of service by 14.0 percent to cover expected increased wage and equipment costs. Required: Estimate revenues for Emmons Lawn Maintenance for the coming year. Note: Enter your answer rounded to the nearest whole dollar.

Answers

The estimated revenues for Emmons Lawn Maintenance for the coming year are approximately $606,480.

To estimate the revenues for Emmons Lawn Maintenance (ELM) for the coming year, we need to consider the expected increase in volume, the increase in the number of homeowners, and the price increase.

Let's calculate the estimated revenues step by step:

Calculate the expected increase in volume:

The new building in the area is expected to increase the volume by 23 percent.

Expected increase in volume = 78 properties * 23% = 17.94 properties (rounded to the nearest whole number)

Total number of properties for the coming year = 78 properties + 17 properties = 95 properties

Calculate the increase in the number of homeowners:

The owner estimates that the number of homeowners wanting ELM's service will increase by 13 percent.

Increase in the number of homeowners = 78 properties * 13% = 10.14 homeowners (rounded to the nearest whole number)

Total number of homeowners for the coming year = 78 homeowners + 10 homeowners = 88 homeowners

Calculate the new price per property:

ELM plans to increase the price of service by 14.0 percent.

Increase in price = $5,600 * 14.0% = $784 (rounded to the nearest dollar)

New price per property = $5,600 + $784 = $6,384

Calculate the estimated revenues:

Estimated revenues = Total number of properties * New price per property

Estimated revenues = 95 properties * $6,384 = $606,480

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Widgets have the following supply and demand:

QD = 240,000 − 300P and QS = 15,000 + 200P

Suppose the government institutes a price control by forcing the price to be 370. Is the market in equilibrium, shortage, or surplus?

If it is in equilibrium, enter "0."
If it is in shortage, enter the shortage amount as a positive number.
If it is in surplus, enter the surplus amount as a negative number.

Answers

To determine whether the market is in equilibrium, shortage, or surplus when the government institutes a price control at $370, we need to compare the quantity demanded (QD) and quantity supplied (QS) at that price.

The demand function is QD = 240,000 - 300P, and the supply function is QS = 15,000 + 200P. By substituting the given price of $370 into both equations, we can calculate the corresponding quantities.

QD = 240,000 - 300(370) = 240,000 - 111,000 = 129,000

QS = 15,000 + 200(370) = 15,000 + 74,000 = 89,000

Comparing QD and QS, we find that QD (129,000) is greater than QS (89,000). This indicates that at the price of $370, the quantity demanded exceeds the quantity supplied, resulting in a shortage.

To determine the shortage amount, we subtract QS from QD:

Shortage = QD - QS = 129,000 - 89,000 = 40,000

Therefore, the market is experiencing a shortage of 40,000 units when the government sets the price at $370.

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suppose the fed increases the interest rate it pays on excess reserves held at the fed. what would happen to the level of e (the excess reserve/deposit ratio)?

A. The level of e would not change.
B. The level of e would fall.
C. The level of e would rise.
D. The effect on the level of e would be ambiguous.

Answers

When the Fed increases the interest rate it pays on excess reserves held at the Fed, then the level of e (the excess reserve/deposit ratio) would rise (Option D).

What is an excess reserve?

An excess reserve is the amount of deposit which is greater than the bank's reserve requirement. The reserve requirement is the ratio of reserves to deposits and is established by the central bank, which in the United States is the Federal Reserve. Banks with excess reserves can loan this amount to other banks that may be short of reserves.

Suppose the Fed increases the interest rate it pays on excess reserves held at the Fed, then the level of e (the excess reserve/deposit ratio) would rise. This is because by increasing the interest rate, the Fed incentivizes banks to hold more reserves. If banks hold more excess reserves, the excess reserve ratio (e) would increase.

Thus, the correct option is D.

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explain as fully as possible the following terms :
-active bonds management
-passive bonds management

Answers

An investment approach known as "active bond management" involves portfolio managers actively choosing which bonds to buy and sell in an effort to outperform a benchmark or provide higher returns.

To find mispriced or undervalued bonds, active bond managers conduct in-depth research and analysis. They then modify the portfolio's duration, credit quality, and sector allocations and make tactical decisions based on current market and economic conditions. As interest rates or market trends change, they might also actively exchange bonds. By taking advantage of market inefficiencies and choosing wisely, the objective is to exceed the benchmark index. On the other hand, passive bond management adopts a more passive or index-based strategy. By utilising passive bond management, portfolio managers seek to mimic the performance

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Suppose there are two firms that each emit 30 units of pollution, and the State Pollution Board wants to reduce this level to a total of 20 units between both firms. They decide to allocate 10 permits

Answers

The total cost incurred by both firms to reduce emissions would be 140 units.

Allocating 11 permits to Firm 2 and reducing Firm 1's permits to 9 would result in a lower total abatement cost.

The total cost incurred by both firms to reduce emissions at the cost-efficient solution would be 58.5 + 67 = 125.5 units.

At the cost-efficient solution, the two firms will spend a total amount to reduce emissions, and some permits will be sold by the firm with the lower marginal abatement cost.

a. If each firm keeps its 10 permits, the total abatement cost for Firm 1 (TAC1) will be 10 + 0.75 × (10^2) = 85 units, and for Firm 2 (TAC2) will be 5 + 0.5 × ([tex]10^{2}[/tex]) = 55 units. Thus, the total cost incurred by both firms to reduce emissions would be 85 + 55 = 140 units.

b. Yes, there is a more cost-efficient solution. To find it, we need to compare the marginal abatement costs (MAC) of both firms. The firm with the lower MAC should be allocated additional permits, while the firm with the higher MAC should sell some permits. This reallocation ensures that the reduction in pollution is achieved at a lower total cost. Let's calculate the MAC for each firm:

MAC1 = 1.5 × A1

MAC2 = A2

From the equations, we see that Firm 2 has the lower MAC. To achieve cost efficiency, Firm 2 should be allocated additional permits. Allocating 11 permits to Firm 2 and reducing Firm 1's permits to 9 would result in a lower total abatement cost.

c. At the cost-efficient solution, Firm 1 will spend 9 + 0.75 × ([tex]9^{2}[/tex]) = 58.5 units, and Firm 2 will spend 5 + 0.5 × (11^2) = 67 units. Therefore, the total cost incurred by both firms to reduce emissions at the cost-efficient solution would be 58.5 + 67 = 125.5 units.

d. In the cost-efficient solution, one permit will be sold by Firm 2. The permits will be sold by the firm with the lower MAC, which in this case is Firm 2. The selling price for the permit would depend on market conditions and negotiation between the firms, but it would likely be based on the marginal abatement cost of the firm buying the permit.

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The complete question is:

Suppose there are two firms that each emit 30 units of pollution, and the State Pollution Board wants to reduce this level to a total of 20 units between both firms. They decide to allocate 10 permits to each firm, where each permit will allow 1 unit of emissions per permit. Assume the following information, where TAC is total abatement cost and MAC is marginal abatement cost:

TAC1 = 10+.75 A1^2

TAC2 = 5+.5 A2^2

a. If each firm keeps its 10 permits, how much will they each spend in total to reduce emissions? b. Is there a more cost-efficient solution than the one you found in part a? Please explain and find this solution. c. How much will the two firms each spend in total to reduce emissions at the cost-efficient solution? d. How many permits will be sold? Who will sell them? How much will they sell for?

Habib is taking part in a negotiation next week and is debating which techniques he should use during the negotiation List and describe 5 negotiation tactics he could use.

Answers

Habib is taking part in a negotiation next week and is debating which techniques he should use during the negotiation. Following are the 5 negotiation tactics that he can use:

1. Win- win tactics: Win-win tactics are those where both the parties involved in the negotiation benefit from the deal. In this tactic, the negotiators work together to come up with a mutually beneficial agreement.

2. Flinch Tactic:  Flinch is a negotiating tactic where you act surprised or shocked at an offer or price. The flinch tactic works best when the other party is not sure of the price.

3. Negotiation : often involves a deadline, especially when negotiating contracts. One way to apply time pressure is to threaten that the deal will fall through if an agreement is not reached before the deadline.

4. The Nibble Tactic: The nibble is a negotiation tactic where one party requests a small additional concession from the other party after the deal has been made.

5. Good Cop/Bad Cop Tactic : The Good Cop/Bad Cop Tactic is a popular negotiation tactic that involves two parties. One party is friendly and understanding while the other party is strict and demanding. The idea behind this tactic is to make the other party feel like they have no other option than to agree with the friendly negotiator.

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13) Firms face competition when the good they produce (5pts) is in a market with natural barriers to entry. is unique. is in a market with legal barriers to entry. has a close substitute. 14) Which of the following is true for a monopolist? (5pts) Being the only seller in the market, the monopolist faces a perfectly inelastic of nand curve. Being the only seller in the market, the monopolist faces a perfectly elastic demand curve. Being the only seller in the market, the monopolist faces the market demand curve. Being the only seller in the market, the monopolist faces a downward sloping demand curve that lies below the marginal revenue curve. 15) Product differentiation is an important characteristic of monopolistic competition (5pts) because in reality most products are differentiated rather than identical. it gives the firms some ability to set its prices it allows firms to make profits. it ensures that excess profits will be eliminated. 16) In the long run, as long as a perfectly competitive firm earns accounting profits, it (5pts) should stay in business. True False

Answers

13) Firms face competition when the good they produce has a close substitute.14) The true statement for monopolist is Being the only seller in the market, the monopolist faces the market demand curve.15) Product differentiation is an important characteristic of monopolistic competition because in reality most products are differentiated rather than identical. 16) The given statement '  In the long run, as long as a perfectly competitive firm earns accounting profits, it should stay in business is True.

13) Firms face competition when the good they produce has a close substitute. This is because when a good has a close substitute, consumers have more options to choose from, and firms must compete for customers by offering better prices, quality, and/or features. This competition can lead to lower prices and better quality for consumers.

14) Being the only seller in the market, the monopolist faces the market demand curve. This is because a monopolist has complete control over the supply of the good in the market, and therefore, can set the price at any level they choose.

15) Product differentiation is an important characteristic of monopolistic competition because in reality most products are differentiated rather than identical. Product differentiation allows firms to differentiate their products from their competitors, which can give them some pricing power and the ability to charge higher prices.

16) In a perfectly competitive market, firms will enter the market if there are accounting profits to be made, and exit the market if there are accounting losses. This process of entry and exit will continue until all firms earn zero economic profit, as the market supply curve shifts to eliminate any excess profits or losses. Therefore, if a firm is earning accounting profits in the long run, it suggests that the market is not perfectly competitive, or that the firm has some sort of competitive advantage that allows them to earn profits above the normal rate of return.

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Hyperion​ Inc., currently sells its latest​ high-speed color​ printer, the Hyper​ 500, for $342. It plans to lower the price to $310 next year. Its cost of goods sold for the Hyper 500 is

$205 per​ unit, and this​ year's sales​ (at the current price of $342​) are expected to be 22,800 units.

a. Suppose that if Hyperion drops the price to $310 immediately​ (rather than waiting one​ year) it can increase this​ year's sales by 30% to 29,640 units. What would be the incremental impact on this​ year's EBIT of such a price​ drop?

b. Suppose that for each printer​ sold, Hyperion expects additional sales of $59 per year on ink cartridges for the​ three-year life of the​ printer, and Hyperion has a gross profit margin of 83% on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price​ drop?

Answers

a. The incremental impact on this year's EBIT would be -$36,360. b. The incremental impact on EBIT for the next three years would be $100,845.

a. To calculate the incremental impact on this year's EBIT, we need to compare the EBIT at the current price with the EBIT after the price drop.

Current EBIT:

Revenue = Current price * Current sales = $342 * 22,800 = $7,809,600

Cost of goods sold = Cost per unit * Current sales = $205 * 22,800 = $4,674,000

EBIT = Revenue - Cost of goods sold = $7,809,600 - $4,674,000 = $3,135,600

EBIT after price drop:

Revenue = New price * New sales = $310 * 29,640 = $9,179,440

Cost of goods sold = Cost per unit * New sales = $205 * 29,640 = $6,080,200

EBIT = Revenue - Cost of goods sold = $9,179,440 - $6,080,200 = $3,099,240

Incremental impact on EBIT = EBIT after price drop - Current EBIT

= $3,099,240 - $3,135,600 = -$36,360

b. To calculate the incremental impact on EBIT for the next three years, we need to consider the additional revenue from ink cartridges and the associated gross profit margin.

Additional revenue per year from ink cartridges = Additional printer sales * Additional revenue per printer = (29,640 - 22,800) * $59 = $40,500

Incremental impact on EBIT for the next three years:

EBIT impact per year = Additional revenue per year * Gross profit margin

= $40,500 * 0.83 = $33,615

Incremental impact on EBIT for the next three years = EBIT impact per year * Number of years = $33,615 * 3 = $100,845

Therefore, the incremental impact on EBIT for the next three years of such a price drop is $100,845.

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You, the investor, pays $250,000 today to buy 3 acres of land for an entertainment center development. The assessor’s office lists the value of the land as $225,000. You, the investor, are expecting an increase in value by 12% per year. What will the investment be worth at the end of the ninth year?

Answers

The investment will be worth $557,433.97 at the end of the ninth year. It represents an increase in value of about $307,433.97 over the initial investment of $250,000.

To calculate the future value of the investment after nine years, we can use the formula for compound interest:

Future Value = Present Value × (1 + Interest Rate)^Number of Periods

Given:

Present Value (PV) = $250,000

Interest Rate = 12% per year

Number of Periods (N) = 9 years

Using these values in the formula, we can calculate the future value:

Future Value = $250,000 × (1 + 0.12)^9

Future Value = $250,000 × (1.12)^9

Future Value ≈ $557,433.97

The investment in the land for the entertainment center development will be worth approximately $557,433.97 at the end of the ninth year, assuming a 12% annual increase in value.

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Each scoop of ice cream costs $6. Your benefit associated with each scoop decreases with each additional scoop because you start to get a stomach ache. How many scoops of ice cream should you eat if your marginal benefit for each scoop is as follows: $26,$8,$5,$3,$0? Select the correct answer below: 1 scoop 2 scoops 3 scoops 4 scoops

Answers

The optimal number of scoops is reached before the marginal benefit decreases to $5, which means we should stop at the previous scoop. The correct answer is 2 scoops.

In this case, we have the following marginal benefit sequence associated with each scoop of ice cream: $26, $8, $5, $3, $0. We compare the marginal benefit with the cost per scoop to determine the optimal number of scoops.

Starting with the highest marginal benefit of $26, the benefit exceeds the cost of $6 per scoop. As we progress, the marginal benefit decreases to $8, which is still higher than the cost. However, when we reach a marginal benefit of $5, it becomes lower than the cost per scoop.

To maximize overall satisfaction, we should consume ice cream until the marginal benefit is equal to the cost per scoop. Therefore, the optimal number of scoops is reached before the marginal benefit decreases to $5, which means we should stop at the previous scoop. Thus, the correct answer is 2 scoops.

Eating beyond the point where the marginal benefit becomes lower than the cost per scoop would decrease overall satisfaction due to diminishing returns. In this case, consuming more than 2 scoops would lead to a marginal benefit of $3, which is lower than the cost per scoop of $6. By stopping at 2 scoops, we achieve the highest level of satisfaction without experiencing diminishing returns and the negative effects associated with a stomach ache.

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Lucy purchased a home. Her monthly payments are $1,600. Her annual real estate tax is $2,100 along with an annual insurance premium of $1,200. Lucy's bank requires that her monthly payments include an escrow deposit for the tax and insurance. What is the total payment each month for Lucy?
Total payment :

Answers

Lucy's total monthly payment is $1,875. This includes her monthly mortgage payment of $1,600, plus an escrow deposit of $275 for her real estate tax and insurance.

Lucy's annual real estate tax is $2,100, so her monthly escrow payment for taxes is

$2,100 / 12 = $175.

Her annual insurance premium is $1,200, so her monthly escrow payment for insurance is $1,200 / 12 = $100.

The total monthly escrow payment is $175 + $100 = $275.

Therefore, Lucy's total monthly payment is $1,600 + $275 = $1,875.

The amount of the escrow payment can vary depending on the property's assessed value and the cost of insurance.

Lucy's bank may also require her to make a one-time deposit to cover the first year's escrow payments.

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Stan Loll bought a used car for $9,200. The used car dealer offered him a four-year add-on interest loan at 7.8% interest, with an APR of 8.0%. The loan requires a 10% down payment. (a) Find the monthly payment. (Round your answer to the nearest cent.) $ (b) Verify the APR. (Round your answer to two decimal places.) %?

Answers

(a) The monthly payment for the loan is $181.41.

(b) The APR is verified to be 8.0%.

(a) To find the monthly payment, we need to consider the loan amount, down payment, interest rate, and loan term.

Given:

Car price = $9,200

Down payment = 10% of car price

= 0.10 * $9,200

= $920

Loan amount = Car price - Down payment

= $9,200 - $920

= $8,280

Interest rate = 7.8% per annum

Loan term = 4 years

To calculate the monthly payment, we can use the formula for add-on interest loan:

Monthly payment = (Loan amount + (Loan amount * Interest rate * Loan term)) / (Number of months)

Number of months = Loan term * 12

Number of months = 4 * 12

= 48

Monthly payment = ($8,280 + ($8,280 * 0.078 * 4)) / 48

≈ $181.41

Therefore, the monthly payment for the loan is approximately $181.41.

(b) To verify the APR, we need to check if the calculated monthly payment and loan term match the APR of 8.0%.

Given APR = 8.0%

Loan term = 4 years

= 48 months

Using the formula for APR:

APR = ((Monthly payment * Number of months) / Loan amount) * 100

APR = (($181.41 * 48) / $8,280) * 100

≈ 8.0%

Hence, the APR is verified to be approximately 8.0%.

(a) The monthly payment for the loan is $181.41.

(b) The APR is verified to be 8.0%.

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In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the 54-month interest rate is currently 4%, with a volatility of 120 basis points (bps). Explain, using equations with properly-defined mathematical notation, how to map this cash flow to vertices at 4 years and 5 years, in such a way that the volatility of the present value of the mapped cash flow remains at 120 bps. Suppose the 4-year rate has a volatility of 110 bps and the 5-year rate has a volatility of 150 bps, and their correlation is 0.9. How much should be mapped to each vertex. Give your answer in PV terms and round your answers to whole $ values.

Answers

The present value of the cash flow expected in 54 months is approximately $2,730,849.42 ,There is no possible allocation of the cash flow between the 4-year and 5-year vertices that would maintain a volatility of 120 bps for the present value.

To calculate the present value (PV) of a cash flow of $3 million expected in 54 months, we need to discount the cash flow using the 54-month interest rate. The present value can be calculated using the formula:

PV = CF / (1 + r)^n

Where:

PV = Present Value

CF = Cash Flow

r = Interest rate

n = Number of periods

Given:

Cash Flow (CF) = $3 million

Interest rate (r) = 4% or 0.04 (per annum)

Number of periods (n) = 54 months

First, we convert the interest rate to a monthly rate by dividing it by 12:

Monthly interest rate = 0.04 / 12 = 0.0033333

Then, we substitute the values into the present value formula:

PV = 3,000,000 / (1 + 0.0033333)^54

Using a calculator, we find:

PV ≈ 2,730,849.42

Therefore, the present value of the cash flow expected in 54 months is approximately $2,730,849.42.

To map this cash flow to vertices at 4 years and 5 years while maintaining a volatility of 120 basis points (bps), we need to calculate the PV at those vertices and distribute the cash flow accordingly.

Let's denote:

PV_4 = Present Value at 4 years

PV_5 = Present Value at 5 years

We know the volatility at 4 years is 110 bps (0.011) and at 5 years is 150 bps (0.015), and their correlation is 0.9.

To calculate the PV at each vertex, we use the formula:

PV_i = CF / (1 + r_i)^n_i

Where:

PV_i = Present Value at vertex i

CF = Cash Flow

r_i = Interest rate at vertex i

n_i = Number of periods at vertex i

We can set up two equations to solve for PV_4 and PV_5:

PV_4 = CF / (1 + r_4)^n_4

PV_5 = CF / (1 + r_5)^n_5

We want the volatility of the present value to remain at 120 bps, which means the variance should be the same at both vertices:

Var(PV_4) = Var(PV_5)

Since the cash flow is the same for both vertices, we can calculate the variance as:

Var(PV_4) = PV_4^2 * (Volatility of r_4)^2

Var(PV_5) = PV_5^2 * (Volatility of r_5)^2

Setting them equal and substituting the given values:

PV_4^2 * (0.011)^2 = PV_5^2 * (0.015)^2

Next, we introduce the correlation coefficient (ρ) into the equation:

Var(PV_4) = PV_4^2 * (Volatility of r_4)^2

Var(PV_5) = PV_5^2 * (Volatility of r_5)^2

Cov(PV_4, PV_5) = ρ * StdDev(PV_4) * StdDev(PV_5)

Since the correlation coefficient is given as 0.9, the equation becomes:

0.011^2 * PV_4^2 = 0.015^2 * PV_5^2

0.9 * 0.011 * PV_4 * 0.015 * PV_5 = ρ * PV_4 * 0.011 * PV_4 * 0.015 * PV_5

Simplifying the equation:

(0.011^2 - 0.015^2) * PV_4^2 = 0

This equation indicates that either PV_4 or PV_5 must be zero. However, since we know the cash flow is $3 million, it cannot be zero at either vertex.

Therefore, there is no possible allocation of the cash flow between the 4-year and 5-year vertices that would maintain a volatility of 120 bps for the present value.

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Marie Johnston is a manager at an electronics store and has to decide how many workers to hire. If she hires one worker, her revenue is $500 per day. If she hires another worker, she can make another $400 per day. The marginal benefit of hiring another worker decreases by $100 with each additional hire. Assuming that workers are paid $15 per hour and work eight hours, how many employees should Marie hire, and what will be the total revenue of her store?
a She will hire four workers and the revenue of the store will be $1,400.
b She will hire three workers and the revenue of the store will be $1,200.
c She will hire four workers and the revenue of the store will be $1,400.
d She will hire six workers and the revenue of the store will be $1,500.

Answers

Marie should hire three workers, and the revenue of the store will be $1,200.

To determine the optimal number of employees to hire, Marie needs to consider the marginal benefit and marginal cost. The marginal benefit of hiring another worker decreases by $100 with each additional hire, while the cost of hiring each worker is $15 per hour for eight hours, resulting in a cost of $120 per worker.

By evaluating the marginal benefit and cost, we can see that hiring the first worker yields a benefit of $500, hiring the second worker adds an additional benefit of $400, and hiring the third worker adds a further benefit of $300. However, the marginal benefit decreases to $200 for the fourth worker.

Considering the diminishing marginal benefit and the cost of hiring each worker, it is optimal for Marie to hire three workers. This would result in a total revenue of $1,200 (the sum of $500, $400, and $300). Therefore, option b is the correct answer.

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How are governments' vanilla fixed-coupon bonds' and inflation-linked bonds' (ILB) yields typically quoted?
Select one:
a. Vanilla fixed coupon yields are quoted as nominal, while ILB's are quoted as real yields per annum.
b. Vanilla fixed coupon yields are quoted as real, while ILB's are quoted as nominal yields per annum.
c. Both are quoted as nominal yields per annum.
d. Both are quoted as real yields per annum.

Answers

a. Vanilla fixed coupon yields are quoted as nominal, while ILB's are quoted as real yields per annum.

In general, vanilla fixed-coupon bonds' yields are quoted as nominal yields per annum. The nominal yield represents the fixed interest rate paid by the bond, typically expressed as an annual percentage.

On the other hand, inflation-linked bonds (ILBs) are designed to provide protection against inflation. The yields of ILBs are quoted as real yields per annum. The real yield reflects the return adjusted for inflation and represents the purchasing power gained by holding the bond. ILBs are typically linked to an inflation index, such as the Consumer Price Index (CPI), and the coupon payments and principal value of the bond are adjusted based on changes in the inflation rate.

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Strategic Human Resource Management

Person-Job fit and Person-Organisation fit are important aspects to be considered to ensure the right selection of candidate for a position. Describe the concepts of:

(a) Person-Job Fit [20 marks]

(b) Person-Organisation Fit [20 marks]

**Answer in paragraph**

Answers

a) Person-Job Fit refers to the degree of compatibility between an individual's skills, abilities, and characteristics with the requirements and demands of a specific job role.

b) Person-Organisation Fit, on the other hand, pertains to the alignment between an individual's values, beliefs, and personality with the values, culture, and goals of the organization.

Person-Job Fit is crucial because it ensures that the selected candidate has the necessary competencies and qualifications required to perform the job successfully. When there is a strong person-job fit, the employee is more likely to be motivated, engaged, and productive.

They can utilize their skills and expertise effectively, resulting in better job performance and job satisfaction. This alignment contributes to higher levels of employee retention and reduced turnover rates.

Person-Organisation Fit is equally important as it focuses on aligning the candidate's values, attitudes, and personality with the organizational culture and values. When there is a strong person-organization fit, the employee tends to have a greater sense of belonging, loyalty, and commitment to the organization.

They are more likely to embrace the organization's values, work well within the team, and align their behaviors with the organization's goals. This fit leads to enhanced employee engagement, improved job satisfaction, and better overall organizational performance.

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a small business owner is the insured under a disability

Answers

A small business owner is insured under a disability policy, which provides financial protection in case they become disabled and unable to work.

The small business owner has taken out a disability insurance policy to safeguard themselves in case they experience a disability that prevents them from running their business and earning income. This policy ensures that if they become disabled, they will receive financial compensation or benefits to help cover their living expenses and maintain their business operations during their disability period.

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Consider a one-period investment model where each investor chooses her position (holdings) at Date 0 and receives payouts at Date 1 . There are m≥1 states at Date 1 and n≥1 securities currently available for trading at Date 0 . Let A be the m×n matrix whose (i,j) entry is the price of Security j in State i of Date 1 . The market is called complete if the rank of A is m. Now suppose that a new security is added with payout vector v, so the i th entry of the m×1 matrix v is the price of the new security in State i. The new security is called redundant if its payout can be replicated by a holding of the existing securities; in other words, the security is redundant if v is a linear combination of columns of A.
1. (SF) Give an example where a new security is NOT redundant. Pick your own m,n,A and v.
2. (Medium) Show that if the market is complete without the new security, then the new security is necessarily redundant.
3. (Medium) Now assume that the following three securities already exist in the market: Security B pays 1+r in every state, Security S pays yi in State i for each i, and Security C pays max{yi − K,0} (the larger number between yi − K and 0) in State i for each i. Here r,y1 ,…,ym and K are known positive numbers. To avoid uninteresting situations, we assume that some yi are greater than K while some are smaller than K. The market may contain other securities but may not be complete. Now a new security P is introduced, which pays max{K−yi ,0} in State i for each i. Show that P is redundant: it can be replicated by some combination of B,S and C. The number of states m is large; for concreteness you may take m=100 even though the result we want to derive holds for every m. If you find it helpful, you may assume that y1 ≤ y2 ≤…≤ ym

Answers

In this case, the new security's payout vector v cannot be replicated by a linear combination of the columns of A. The security has a unique payout in each state, making it non-redundant.

If the market is complete without the new security, then the new security is necessarily redundant. Proof: If the market is complete without the new security, it means that all possible payouts in each state can be replicated using the existing securities. Adding a new security with a payout vector v would imply that v can also be replicated by the existing securities. Therefore, the new security is redundant. To show that the security P is redundant, we need to demonstrate that it can be replicated by a combination of securities B, S, and C. Let x, y, and z be the weights or holdings of securities B, S, and C, respectively.

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You are planning for a vacation to Mexico. You are browting through reviews on the Tourism Mexico site and you are attracted to the suggeston made by Ms. Femanda about" La Paz Hotnis" You direct message Ms. Femanda and colect some more detatis about the Hotel. You are impressed and visit the website of Lapar Hotain to send a query fot a reservetion. Lapaz sends you the booking chart and reservation registration form. Lapaz sends your dotais to the Travel agency owned by then fo aninge for a package from Pichap to Drop from your apartment in Canada. Lapar Sales team sends a mal to their Front office regarding making your amail a memonable one as this is your. tnst time to Mexice. Identify the beiow functions of a PMS sytieen in reference to your booking in reference to situation given above.

Answers

In reference to the situation above, the following are the functions of a Property Management System (PMS) system in your booking: Reservation Management, Inventory Management, Front Desk Management and Reporting.

Reservation management is one of the functions of the Property Management System (PMS) system in reference to your booking. The PMS stores all reservation data and updates the inventory automatically as the reservations are received. The PMS system receives and handles reservations from various sources. In this situation, Lapaz sends the booking chart and reservation registration form to you.Inventory Management: Inventory management is another function of the Property Management System (PMS) system in reference to your booking. The PMS system automatically updates inventory as reservations are received. It ensures that the inventory information is up to date. Lapaz would use the PMS system to update inventory for the rooms and packages that they are offering. It would show the available rooms and packages and what has been reserved and sold.Front Desk Management: The PMS system also manages the front desk, ensuring that all room assignments, check-ins, check-outs, and other front desk activities are done smoothly. It ensures that room charges are correct, and all room information is up to date. Lapaz Sales team would use the PMS system to manage the front desk, making sure that the booking information is up to date and accurate.Reporting is another function of the Property Management System (PMS) system. It allows the user to run reports on bookings, reservations, sales, occupancy, and other aspects of the hotel operations. Lapaz could use the PMS system to generate reports on their sales, reservations, occupancy rates, and other aspects of their hotel operations.

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Which of the following does NOT affect ROE?
a Total asset turnover
b Net profit margin
c Financial leverage ratio
d Dividend payout ratio

Answers

a) Total asset turnover does not directly affect Return on Equity (ROE). Correct option is A

ROE is calculated by dividing net income by shareholders' equity. It measures the profitability of a company's equity investments. The components that affect ROE are the net profit margin, financial leverage ratio, and dividend payout ratio.

Net profit margin represents the profitability of a company's operations and is calculated by dividing net income by revenue. A higher net profit margin indicates better profitability and can contribute to a higher ROE.

Financial leverage ratio measures the proportion of debt used to finance a company's assets. It is calculated by dividing total debt by shareholders' equity. Higher financial leverage can amplify ROE as long as the company generates a higher return on its assets than the cost of borrowing.

Dividend payout ratio is the percentage of earnings distributed to shareholders as dividends. It represents the portion of earnings that is not retained by the company. A higher dividend payout ratio can reduce retained earnings and, in turn, lower ROE.

In summary, while total asset turnover is an important financial metric that measures a company's efficiency in generating sales from its assets, it does not directly impact ROE. The factors that directly affect ROE are net profit margin, financial leverage ratio, and dividend payout ratio.

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Daisuke is currently considering investing in municipal bonds (not subject to federal tax) that earn 6 percent interest, or in taxable bonds issued by the Coca-Cola Company that pay 8 percent. Answer the following questions: 1. If Daisuke's tax rate is 22 percent, which bond should he choose? 2. Which bond should he choose if his tax rate is 32 percent? 3. At what tax rate would he be indifferent between the bonds?

Answers

1. If Daisuke's tax rate is 22 percent, he should choose the municipal bonds. Since municipal bonds are not subject to federal tax, Daisuke would receive the full 6 percent interest without any deductions.

On the other hand, with the Coca-Cola taxable bonds, he would have to pay 22 percent of the 8 percent interest in taxes, leaving him with an after-tax yield of 6.24 percent (8% - 22% of 8%). Therefore, the municipal bonds offer a higher after-tax yield for Daisuke in this scenario.

2. If Daisuke's tax rate is 32 percent, he should choose the Coca-Cola taxable bonds. In this case, the after-tax yield of the municipal bonds would be 4.08 percent (6% - 32% of 6%). On the other hand, the Coca-Cola taxable bonds would provide an after-tax yield of 5.44 percent (8% - 32% of 8%). Therefore, the taxable bonds issued by Coca-Cola offer a higher after-tax yield for Daisuke at a 32 percent tax rate.

3. Daisuke would be indifferent between the bonds at a tax rate of approximately 27.3 percent. At this tax rate, the after-tax yield of both the municipal bonds and the Coca-Cola taxable bonds would be equal. Above this tax rate, the municipal bonds would provide a higher after-tax yield, while below this tax rate, the taxable bonds would offer a higher after-tax yield.

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4) Prestwick Ltd paid £2,000 to a supplier who was owed money. What is the effect of this transaction?
a) Assets: no change | Equity: no change
b) Assets: decrease | Equity: decrease
c) Assets: decrease | Current liabilities: decrease
d) Assets: decrease | Non. current liabilities: decrease

Answers

The correct answer would be:

c) Assets: decrease | Current liabilities: decrease

When Prestwick Ltd paid £2,000 to a supplier, it reduces its assets and decreases its current liabilities. Here's the breakdown of the effect of this transaction:

- Assets: The payment of £2,000 reduces the cash or bank balance of Prestwick Ltd, leading to a decrease in its assets.

- Current liabilities: By making the payment to the supplier, Prestwick Ltd reduces its outstanding payable to the supplier. As a result, the current liabilities, specifically accounts payable, decrease.

It's important to note that this transaction does not have a direct impact on equity as it represents a settlement of an existing liability rather than a change in the company's ownership or retained earnings. Therefore, the equity remains unaffected in this scenario.

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Calculate the deadweight loss that arises when the monopolist chooses price and quantity to maximize profits.Suppose that the inverse demand for a product is represented by the equation P=602Q, where P is the price in Euros and Q is the annual output. Suppose that only one firm produces this product and that the marginal cost is 10. Calculate the fixed (entry) fee that the firm should charge if it employs a 2-part tariff pricing strategy. Community Bank's Tier 1 capital is $213 million and Tier II capital is $84 million. The bank has $3500 million assets and $2500 million risk weighted assets. The bank advances $125 million loan to fund a high-rise commercial building and the loan is fully funded by new deposits. The risk weight of commercial buildings is 150%. What is the bank's new Total Capital Ratio? a. 11.05% b. 11.31% c. None of the other options are correct d. 17.82% e. 3.13% On January 2,2020, Blossom Corp. issued a $80,000, four-year note at prime plus 1% variable interest, with interest payable semiannually. On the same date, Blossom entered into an interest rate swap where it agreed to pay 4% fixed and receive prime plus 1% for the first six months on $80,000. At each six-month period, the variable rate will be reset. The prime interest rate is 3.7% on January 2 , 2020 , and is reset to 4.5% on June 30,2020 . On December 31,2020 , the fair value of the swap has increased by $25,000. Blossom follows ASPE and uses hedge accounting. Assume that the swap qualifies for hedge accounting under ASPE. Calculate the net interest expense to be reported for this note and the related swap transaction as at June 30 and December 31 , 2020. Prepare the journal entries relating to the interest for the year ended December 31,2020 . (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Prepare the journal entries relating to the interest for the year ended December 31,2020 . (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for. the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Assume, instead, that Blossom follows IFRS. Prepare the journal entries for this cash flow hedge. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) TRUE / FALSE.Correct answers will receive 1 mark. Incorrect answers will receive -0.75 mark. An answer left blank will receive 0 marks. So decide carefully before you answer.*** Goods and services are scarce because resources are scarce. Select one: O a. True O b. False The point (8,5) is on the graph of y=f(x). a) A point on the graph of y=g(x), where g(x)=f(x) is b) A point on the graph of y=g(x), where g(x)=f(x) is c) A point on the graph of y=g(x), where g(x)=f(x)9 is d) A point on the graph of y=g(x), where g(x)=f(x+4) is e) A point on the graph of y=g(x), where g(x)= 1/5 f(x) is f) A point on the graph of y=g(x), where g(x)=4f(x) is _____ avoids renegotiation of treaties by allowing the president to negotiate trade agreements and then submit them for an up or down vote by Congress with no amendments permitted. what is the annual market interest rate on the bonds parri was well-liked and in complete control of his congregation. which term can be used to classify the relationship between two isomers that have the same connectivity but specific rotations of 40 and 25, respectively?