The CFO of The Food Company would like the Can Soup Division to transfer 5,000 cans of its final product to the Restaurant Division for $50 per can. The Can Soup Division sells the product to customers for $80 per unit. The Can Soup's variable cost per unit is $15 and its fixed cost per unit is $10. The Can Soup Division is currently operating at full capacity.
What is the minimum transfer price the Can Soup Division should accept?

Answers

Answer 1

The minimum transfer price the Can Soup Division should accept is $25 per can.

What is Transfer Pricing?

Transfer pricing is a system for determining the exchange price between various parts of a business, with the goal of ensuring that each component of the company pays the other for products and services at a price that is equitable to both parties.

Transfer pricing can be viewed as a means of isolating revenue between divisions, allowing for greater transparency when divisions engage in intercompany trade.

What is a minimum transfer price?

A minimum transfer price is the lowest price at which one section of a corporation can sell a product to another section while also meeting the purchasing section's minimum needs or expectations.

In this instance, the Can Soup Division has a fixed cost of $10 per can of soup.

When the company's variable costs of $15 per can of soup are included, the cost of creating one can of soup rises to $25.

As a result, $25 is the minimum transfer price the Can Soup Division should accept.

Therefore, the minimum transfer price the Can Soup Division should accept is $25 per can.

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Related Questions

Is corporate social responsibility [CSR] an ‘accountability,’ ‘duty,’ ‘commitment,’ or simply a ‘responsibility’ that organisations assume society expects of them. Explain your view.

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Corporate Social Responsibility (CSR) can be seen as a combination of all the terms mentioned: 'accountability,' 'duty,' 'commitment,' and 'responsibility.' However, the interpretation and emphasis of each term may vary depending on the perspective and context.

1) Accountability:

CSR reflects an organization's acknowledgment of its impact on society and its willingness to be answerable for its actions. By practicing CSR, companies are accountable for their decisions and their consequences on various stakeholders, including employees, customers, communities, and the environment.

2) Duty:

CSR can also be viewed as a moral or ethical duty that organizations have towards society. It suggests that companies have an obligation to go beyond their primary economic objectives and consider the broader societal implications of their operations. This duty may stem from legal requirements, industry standards, or societal expectations.

3) Commitment:

CSR often involves a long-term commitment by organizations to act in a socially responsible manner. It goes beyond sporadic or superficial gestures and implies a genuine dedication to integrating social, environmental, and ethical considerations into the core business practices. A commitment to CSR entails allocating resources, implementing policies, and driving sustainable initiatives that align with societal needs.

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which is an indicator of a real estate bubble?
a. when renting is more expensive than buying a house
b. when buying is more expensive than renting a house

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b, When buying is more expensive than renting a house, is typically a stronger indicator of a real estate bubble, reflecting an unsustainable increase in housing prices.

Both options can be considered indicators of a real estate bubble, but the more accurate indicator is option b: when buying is more expensive than renting a house.

In a real estate bubble, housing prices often become inflated, surpassing their intrinsic value. This can lead to a situation where buying a house becomes more expensive than renting. This imbalance between the cost of buying and renting is indicative of a market where housing prices have risen to unsustainable levels.

When buying a house becomes significantly more expensive than renting, it suggests that the housing market may be experiencing speculative behavior, where buyers are willing to pay inflated prices in the hopes of future price appreciation. This can create an artificial demand that is not supported by the underlying fundamentals of the market.

On the other hand, when renting is more expensive than buying a house (option a), it generally indicates a strong rental market where demand for rental properties is high, potentially due to factors such as limited housing supply or high barriers to homeownership. This situation may not necessarily indicate a real estate bubble, but rather a specific imbalance between the rental and housing markets.

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An asset manager has a long position of 8,500 shares of company QTA. The asset manager wants to hedge 55% of the market risk associated with this position. For that purpose, it has been decided to use put options with shares of company QTA as underlying. The absolute value of the delta of this put option is 0.35. a) What type of risk does delta measure and what are its limitations as a risk measure? Explain your answer. [10 marks] b) Give an example, explaining its rationale and quantifying it, of a hedging strategy based on the use of put options that the asset manager can implement to reach his hedging objective. [10 marks] c) Is the following statement "The purpose of a proper risk management strategy, with respect to a certain risk factor, should be to fully eliminate the exposure to that risk factor" true or false? Explain your answer.

Answers

a) What type of risk does delta measure and what are its limitations as a risk measure?

The delta is a measurement that calculates the sensitivity of the option's price to the changes in the underlying asset price.

Delta measures the risk of an option and it helps traders and investors assess the option's likelihood of expiring in the money. The delta may be expressed as either a positive or negative number, indicating whether the option's price will rise or fall as the underlying asset price rises or falls.

A significant limitation of delta as a risk measure is that it assumes that all other variables stay constant, which is typically not the case. As a result, delta could provide a distorted view of an option's risk profile in an ever-changing market setting.

b) Give an example, explaining its rationale and quantifying it, of a hedging strategy based on the use of put options that the asset manager can implement to reach his hedging objective.

A hedging strategy based on the use of put options would involve purchasing a put option that would offset the decline in value of the underlying stock. To accomplish this, the asset manager would need to acquire put options on the QTA company's stock, which will expire in the near future and have a strike price below the current stock price.

To illustrate, if QTA shares are trading at $100 per share, the asset manager could acquire 55% of the market risk associated with the position, or 4,675 shares. To accomplish this, the asset manager could acquire 46 put options with a strike price of $90 per share, which have a delta of -0.35. The asset manager would be able to offset the decline in the value of QTA shares by owning these put options.

c) The statement "The purpose of a proper risk management strategy, with respect to a certain risk factor, should be to fully eliminate the exposure to that risk factor" is false.

Risk cannot be fully eliminated; it can only be minimized. A proper risk management strategy seeks to reduce exposure to a certain risk factor while balancing the risk-reward trade-off.

A risk management strategy that aims to remove all risk is not only unrealistic but could also be detrimental to the portfolio's performance. The goal of risk management is not to eliminate risk, but rather to manage it in a way that balances risk and reward while reducing overall risk.

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How does the Fed use open market operations to increase the money supply? The Fed buys bonds to … the amount of reserves that banks have on hand. When the Fed buys bonds, banks have … reserves and are able to lend … As banks lend … , the money supply…

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The Fed uses open market operations to increase the money supply by buying bonds.

When the Fed buys bonds, it increases the amount of reserves that banks have on hand. This influx of reserves enables banks to have more lending capacity. With increased reserves, banks are more willing and able to lend money to businesses and individuals. As banks lend more, the money supply in the economy expands. This occurs because when loans are made, new money is created through the process of fractional reserve banking. As a result, the overall money supply increases, promoting economic activity and liquidity in the financial system.

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The business landscape is undoubtedly changing. While some aspects of leadership, such as setting a vision and executing on strategy, will remain, the future leader will need to possess a new arsenal of skills and mindsets to lead effectively. This is because our businesses will look and operate fundamentally differently in ten years, which means we need a new type of leader at the helm of these organizations. Assess the type of leader that will lead the organisations into the future and the skills and mindsets these leaders will need to possess.

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The future leader must possess a new set of skills and mindsets to effectively lead organizations into the future. They should be adaptable, innovative, collaborative, digitally savvy, strategic, agile, and emotionally intelligent.By embracing these qualities, they can navigate the evolving business landscape and drive success in the years to come.

The future leader must be adaptable and embrace change as the business landscape continues to evolve. They should have a keen awareness of emerging trends, technologies, and market dynamics, and be able to lead their organizations through transformational change. Innovation will be a key driver of success, and future leaders should create a culture that encourages and fosters innovation throughout the organization.

Collaboration and the ability to work across diverse teams and stakeholders will be crucial. Future leaders should promote diversity and inclusion, understanding the value of different perspectives and experiences. They should be skilled in building and maintaining relationships, both internally and externally, as collaboration becomes increasingly important in a connected and globalized world.

Digital acumen is essential for future leaders. They should understand the impact of technology on business models and be able to leverage digital tools and data to drive innovation, efficiency, and customer-centricity. This includes embracing artificial intelligence, automation, and data analytics to make informed decisions and drive organizational performance.

Strategic thinking will be paramount for future leaders. They should be able to anticipate and navigate complex and uncertain environments, making informed decisions that align with the organization's long-term goals. Agility and adaptability are key, as leaders must be able to pivot quickly and adjust strategies as circumstances change.

Lastly, future leaders should possess strong emotional intelligence, understanding the importance of empathy, self-awareness, and effective communication. They should be able to inspire and motivate their teams, foster a positive and inclusive culture, and navigate conflicts and challenges with emotional resilience.

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The following are investment transactions of Samuelson Company:
2018
July 1 Purchased 350 shares of Bateman Company stock at $22 per share plus a brokerage fee of $600. Because Samuelson held the Bateman stock neither to collect interest and principal nor to collect interest and to sell, the Bateman stock is classified as FVTPL financial asset.
Oct. 31 Received a cash dividend of $2.00 per share on the Bateman stock.
Dec. 31 At year-end, Bateman stock had a market price of $19 per share.
2019
Feb. 20 Sold 175 shares of the Bateman stock for $26 per share.
Oct. 31 Received a cash dividend of $2.20 per share on the Bateman stock.
Dec. 31 At year-end, Bateman stock had a market price of $29 per share.

(1) Calculate the amount of FVTPL Financial Assets to record on July 1 2018
(2) Calculate the amount of Valuation Adjustment for FVTPL Financial Assets to record as entry on Dec. 31 2018

Answers

The FVTPL financial assets to record on July 1, 2018, is $7,700, and the valuation adjustment to record on December 31, 2018, is $1,050.

The investment transactions of Samuelson Company involve the purchase and sale of Bateman Company stock. The Bateman stock is classified as a financial asset measured at fair value through profit or loss (FVTPL). We need to calculate the amount of FVTPL financial assets to record on July 1, 2018, and the valuation adjustment for FVTPL financial assets to record on December 31, 2018.

1) To calculate the amount of FVTPL financial assets to record on July 1, 2018, we need to determine the total cost of purchasing the Bateman stock.

Number of shares purchased = 350

Purchase price per share = $22

Brokerage fee = $600

Total cost of purchasing = (350 shares * $22 per share) + $600 = $7,700

Therefore, the amount of FVTPL financial assets to record on July 1, 2018, is $7,700.

2) To calculate the valuation adjustment for FVTPL financial assets to record on December 31, 2018, we compare the market price of the Bateman stock at year-end with its original cost.

Market price per share on December 31, 2018 = $19

Number of shares held = 350

Total market value on December 31, 2018 = 350 shares * $19 per share = $6,650

Valuation adjustment = Original cost - Market value

Valuation adjustment = $7,700 - $6,650 = $1,050

Therefore, the amount of valuation adjustment for FVTPL financial assets to record on December 31, 2018, is $1,050.

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The original Basel Accord was
a.a set of guidelines applied only to international banks operating with U.S. boundaries
b.the basic set of guidelines the Federal Reserve applies in regulating domestic banks
c.a set of guidelines for basic capital requirements for internationally active banks
d.an agreement between state and federal regulators to try to have one standard set of guidelines for all banks

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The original Basel Accord was a set of guidelines for basic capital requirements for internationally active banks. Option C.

It was created by the international group of central banks and regulatory agencies known as the Basel Committee on Banking Supervision. The agreement sought to create a uniform framework for estimating the minimum capital that banks ought to have in relation to their risk exposure.

A minimum capital adequacy ratio of 8% was mandated by Basel, which also offered a standardized method for evaluating credit risk. Although largely aimed at foreign banks, many nations accepted the recommendations for domestic use, which had a significant impact on how banking regulations were developed globally.

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what are the key components of the architecture american express has created?

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American Express' architecture includes a card network, banks (issuing and acquiring), payment processing systems, security measures, loyalty programs, data analytics, and mobile/digital platforms.

American Express has created an architecture that comprises the following key components:

Card Network: American Express operates a global card network that facilitates transactions between merchants, cardholders, and issuers. This network enables the authorization, processing, and settlement of payments made using American Express-branded cards.Issuing and Acquiring Banks: American Express works with issuing banks that issue American Express cards to consumers and acquiring banks that facilitate acceptance of American Express cards by merchants. These partnerships enable the issuance and acceptance of American Express cards within the network.Payment Processing Systems: American Express has developed payment processing systems that handle the secure transmission and processing of card transactions. These systems ensure the smooth and efficient flow of payment information, including authorization, clearing, and settlement processes.Security and Fraud Prevention: American Express places significant emphasis on security and fraud prevention measures. The architecture includes robust security protocols, encryption technologies, and monitoring systems to protect cardholders and merchants from fraudulent activities.Loyalty and Rewards Programs: American Express has implemented various loyalty and rewards programs to enhance customer engagement and incentivize card usage. These programs are integrated into the architecture to track and manage rewards, provide personalized offers, and drive customer loyalty.Data Analytics and Insights: American Express utilizes data analytics and insights to gain a deeper understanding of customer behavior, spending patterns, and market trends. The architecture incorporates data analytics capabilities to derive actionable insights and inform strategic decision-making.Mobile and Digital Platforms: To meet the evolving needs of consumers, American Express has developed mobile and digital platforms that enable cardholders to manage their accounts, make payments, and access additional services through mobile apps and online portals. These platforms are integrated into the architecture to provide seamless digital experiences.

Overall, the architecture created by American Express encompasses a card network, partnerships with issuing and acquiring banks, payment processing systems, security measures, loyalty programs, data analytics capabilities, and mobile/digital platforms. These components work together to support secure transactions, drive customer engagement, and provide a seamless payment experience for American Express cardholders and merchants.

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Use the basic accounting equation to answer these questions.
(a) The liabilities of Oriole Company are $95,500 and the stockholders' equity is $277,000. What is the amount of Oriole's total assets Total assets $___
(b) The total assets of Sheffield Company are $195,000 and its stockholders' equity is $83,000. What is the amount of its total liabilities? Total liabilities $___
(c) The total assets of Sheffield Co, are $875,000 and its liabilities are equal to one-fourth of its total assets. What is the amount of Sheffield's stockholders' equity?

Answers

(a) The basic accounting equation is Assets = Liabilities + Stockholders' Equity. We are given that the liabilities of Oriole Company are $95,500 and the stockholders' equity is $277,000. To find the amount of Oriole's total assets, we can rearrange the equation:

Assets = Liabilities + Stockholders' Equity

Assets = $95,500 + $277,000

Assets = $372,500

Therefore, the amount of Oriole's total assets is $372,500.

(b) Using the same basic accounting equation, we are given that the total assets of Sheffield Company are $195,000 and its stockholders' equity is $83,000. We need to find the amount of its total liabilities:

Assets = Liabilities + Stockholders' Equity

$195,000 = Liabilities + $83,000

Rearranging the equation, we can solve for Liabilities:

Liabilities = $195,000 - $83,000

Liabilities = $112,000

Therefore, the amount of Sheffield Company's total liabilities is $112,000.

(c) Again, using the basic accounting equation, we are given that the total assets of Sheffield Co. are $875,000 and its liabilities are equal to one-fourth of its total assets. We need to find the amount of Sheffield's stockholders' equity.

Liabilities = 1/4 * Total Assets

Liabilities = 1/4 * $875,000

Liabilities = $218,750

Stockholders' Equity = Total Assets - Liabilities

Stockholders' Equity = $875,000 - $218,750

Stockholders' Equity = $656,250

Therefore, the amount of Sheffield Company's stockholders' equity is $656,250.

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The gross domestic product (GDP) of a certain country, which measures the overall size of the economy in billions of dollars, can be approximated by the function g(x)=560x+8810, where x=10 corresponds to the year 2010 . Estimate the GDP (to the nearest billion dollars) in the given years. (a) 2004 (b) 2010 (c) 2015 (a) What value of x corresponds to the year 2004 ? x=4 (Type a whole number.) The GDP in 2004 is about $ billion. (b) What value of x corresponds to the year {$10 ? x= (Type a whole number.)

Answers

The value of x corresponding to the year 2004 is 4.

Therefore, substituting x = 4 into the GDP function, we get:

g(4) = 560(4) + 8810 = 22,840.

So, the GDP in 2004 is about $23 billion.

The value of x corresponding to the year 2010 is 10.

Therefore, substituting x = 10 into the GDP function, we get:

g(10) = 560(10) + 8810 = 14,410.

So, the GDP in 2010 is about $14 billion.

In the given function g(x) = 560x + 8810, x represents the number of years after 2010. By substituting different values of x into the function, we can estimate the GDP for different years. For example, when x = 4, we estimate the GDP for the year 2004 by calculating g(4). Similarly, when x = 10, we estimate the GDP for the year 2010 by calculating g(10). The function assumes a linear relationship between the GDP and the number of years since 2010, with an initial GDP of $8,810 billion.

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In design, paying attention to a user's feelings and needs when designing a product.

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Designing with consideration for a user's feelings and needs involves empathizing with their experiences, emotions, and desires to create products that resonate and cater to their specific requirements.

When designing a product, it is crucial to understand the users' feelings and needs to ensure that the final outcome meets their expectations and provides a positive experience. This empathetic approach involves conducting user research, such as interviews, surveys, and observations, to gain insights into their preferences, pain points, and motivations.

By paying attention to users' feelings, designers can create products that evoke positive emotions, such as joy, comfort, or satisfaction. Additionally, understanding users' needs allows designers to address specific challenges or requirements, ensuring that the product is functional, intuitive, and valuable.

Considering the user's feelings and needs also contributes to building a strong connection between the user and the product. When a design resonates with users on an emotional level and fulfills their needs, it increases the likelihood of user engagement, loyalty, and positive word-of-mouth recommendations.

Overall, designing with empathy towards users' feelings and needs leads to more user-centric and successful products that genuinely address users' requirements, enhance their experiences, and foster lasting relationships between users and the products they interact with.

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Which of the following strategic approach and strategic capabilities cannot be paired?
a. Transnational strategy and national responsiveness
b. Transnational strategy and learning
c. Transnational strategy and global efficiency
d. Global strategy and national responsiveness

Answers

The strategic approach and strategic capabilities that cannot be paired are Option D. Global strategy and national responsiveness.

A global strategy refers to an approach where a company aims to standardize its products, processes, and operations across multiple markets to achieve economies of scale and cost efficiency. The focus is on creating a consistent global brand image and delivering standardized products or services to customers worldwide. This strategy prioritizes global integration and uniformity.

On the other hand, national responsiveness is a strategic capability that emphasizes adapting and tailoring business activities to meet the specific needs and preferences of local markets. It recognizes the variations in customer preferences, cultural differences, and regulatory requirements in different countries. The goal is to be responsive and flexible to the unique demands of each market.

Global strategy and national responsiveness represent two different strategic approaches and objectives. The global strategy aims for standardization and efficiency on a global scale, while national responsiveness focuses on customization and adaptation to local markets. These two strategies have different priorities and may require different capabilities and resources.

To optimize organizational performance, companies often need to strike a balance between global integration and local adaptation. They may adopt a transnational strategy, which combines elements of both global strategy and national responsiveness. A transnational strategy seeks to achieve global efficiency while also being responsive to local market conditions, customer preferences, and cultural nuances. This approach acknowledges the importance of both standardization and adaptation in different aspects of the business to gain a competitive advantage.

In summary, while a global strategy and national responsiveness are distinct strategic approaches with different objectives, a transnational strategy can integrate elements of both approaches to achieve a balance between global efficiency and local adaptation. Therefore, the correct option is D.

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Q2. Fadel, Inc. allocates engineering costs on the basis of the supervisor’s time and administration costs on the basis of the number of employees.

The following data have been collected:

Support Departments Operating Departments

Engineering Administration Operating 1 Operating 2

Department costs $25,000 $15,000 $200,000 $350,000

Number of employees 15 10 300 450

Engineering supervisor’s time 30 hours 15 hours 35 hours 20 hours

Use the direct method to allocate support department costs to the different departments. (3 marks)

Answers

The allocated support department costs to the Operating Department 1 and Operating Department 2 are $6,378.75 and $13,690, respectively.

Using the direct method to allocate support department costs to the different departments, we can allocate the Engineering and Administration department costs as follows:

Support Departments Operating DepartmentsEngineering Administration Operating 1 Operating 2Department costs $25,000 $15,000Number of employees 15 10Engineering supervisor’s time 30 hours 15 hoursPercentage of total usage 13.51% 6.76%

(Percentage of total usage was calculated by dividing the Engineering supervisor’s time and Administration costs by the total usage of all support departments i.e., (30+15+25) hours + $15,000 + $25,000 = $65,000)

Using the percentage of total usage, we can allocate the Engineering and Administration department costs as follows:

Operating Department 1:

Engineering cost allocation = $25,000 x 13.51% = $3,378.75Administration cost allocation = $15,000 x 20% = $3,000Total support department cost allocated to Operating Department 1 = $3,378.75 + $3,000 = $6,378.75

Operating Department 2:

Engineering cost allocation = $25,000 x 6.76% = $1,690Administration cost allocation = $15,000 x 80% = $12,000Total support department cost allocated to Operating Department 2 = $1,690 + $12,000 = $13,690

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Which statement about the payback rule is correct? Select one: A. The payback rule is based on present values of all cash flows up to the payback period. B. The payback rule works best for mutually exclusive projects. C. The payback rule is flawed because it ignores later cash flows. D. The payback rule is often preferable to the NPV decision rule.

Answers

The correct statement about the payback rule is (Option C) the payback rule is flawed because it ignores later cash flows.

The payback rule is a simple capital budgeting technique that measures the time required for an investment to recover its initial cost. According to this rule, an investment is acceptable if it can pay back its initial investment within a predetermined period.

However, the payback rule has certain limitations. It does not take into account the time value of money, as it ignores the present values of cash flows occurring after the payback period. By ignoring the cash flows that occur beyond the payback period, the payback rule fails to consider the profitability and risk associated with those cash flows.

This limitation makes the payback rule less reliable in comparison to other capital budgeting techniques, such as net present value (NPV), which considers the timing and value of all cash flows.

Due to its limitations, the payback rule should be used cautiously and in conjunction with other decision-making tools, such as NPV, to make more informed investment decisions.

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Usually, debt costs less than equity because a. all answers are true b. interest on debt is tax-exepmt c. it has lower risk profile d. it has a priorety in interest payment

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b. Debt interest is tax-exempt, reducing its cost compared to equity. Debt also has a higher priority in interest payment.

b. Debt interest is not subject to taxes.

Due to a number of considerations, including the fact that interest payments on debt are frequently tax deductible for corporations, debt typically has lower expenses than equity. This tax benefit lowers the borrower's actual cost of debt. Equity, in contrast, does not provide such tax advantages.

In addition, compared to equity, debt often has a reduced risk profile. Priority in interest and principal repayment is given to debt holders over equity holders. Debt holders have a bigger claim on the company's assets and cash flows in the event of financial trouble or bankruptcy, giving them more security. Debt has a lower risk profile than equity, which lowers the cost of financing.

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We can tell from the figure that from 1990-2020 the United States has run a trade a) ____, and net exports have been b)

Consider the Great Recession from Dec. 2007-June 2009. During this period, both the exports and the imports of goods fell. Given that the trade balance on goods rose from around −$70 billion to −$40 billion in that time, the decrease in exports of goods must have been ____ the decrease in imports of goods. You can assume that the trade balance in services did not change.

Answers

We can tell from the figure that from 1990-2020 the United States has run a trade deficit, and net exports have been negative.

Considering the Great Recession from December 2007 to June 2009, both the exports and imports of goods fell. Given that the trade balance on goods rose from around -$70 billion to -$40 billion in that time, the decrease in exports of goods must have been smaller than the decrease in imports of goods. This indicates that the decrease in imports was larger than the decrease in exports during the Great Recession.

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for most, but not all products, a rise in consumer's ________ causes an increase in demand.

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A rise in consumer's income generally leads to an increase in demand for most products.

The relationship between consumer's income and demand is often positive, meaning that as consumer's income rises, their purchasing power increases, allowing them to buy more goods and services. This leads to an increase in demand for most products. When consumers have more disposable income, they are more likely to spend on various goods and services, thereby driving up demand in the market.

However, it's important to note that the relationship between income and demand is not universal for all products. Some products may be considered inferior goods, where an increase in consumer's income leads to a decrease in demand. These are typically lower-quality or less desirable products for which consumers substitute with higher-quality alternatives as their income rises.

Examples of inferior goods include low-cost generic brands or lower-grade products. Hence, while a rise in consumer's income generally leads to an increase in demand for most products, it's essential to consider the specific nature of the goods or services in question to determine the precise relationship between income and demand.

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a. Assume yourself as an independent consultant involved in the turnaround of old manufacturing units. Explain how BPR would help you to turnaround the old manufacturing unit (5 Marks)

b. With reference to the scenario in question 3a) you have been further asked to develop a plan for the implementation of QFD. Explain how would you proceed with implementation of QFD?

Answers

a) Business Process Reengineering (BPR) helps turnaround old manufacturing units by eliminating inefficiencies, streamlining operations, leveraging technology, aligning with customer needs, and fostering cultural change.

b) To implement Quality Function Deployment (QFD), identify customer requirements, develop a House of Quality (HOQ), prioritize requirements, link internal processes, implement continuous improvement, foster cross-functional collaboration, and provide training and education.

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The end of a project phase is generally marked by:
a. A financial review including scope and schedule performance
b. One or more deliverables
c. A quality control or audit function
d. None of these

Answers

The end of a project phase is generally marked by a combination of factors, and the specific markers may vary depending on the project and its unique requirements. However, among the given options, the most common and appropriate choice would be (b) one or more deliverables.

Deliverables are the tangible or intangible outputs of a project phase that are expected to be completed and handed over to the stakeholders. These deliverables can be specific outcomes, products, reports, documents, or milestones that demonstrate the progress and completion of a phase.

The completion of deliverables serves as a critical milestone for the project team, indicating the achievement of predetermined objectives and the successful conclusion of that particular phase. It allows for evaluation and review of the work performed, provides a basis for stakeholders' assessment, and enables a smooth transition to the next phase.

While financial reviews, quality control, and audits are important aspects of project management, they may not necessarily mark the end of a project phase. These activities can occur throughout the project lifecycle to ensure adherence to financial targets, quality standards, and compliance requirements.

In summary, while a financial review, quality control, or audit function may be performed during or after a project phase, the most definitive marker of the phase's end is the completion and delivery of one or more predetermined deliverables.

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this is how the body stores excess dietary protein.

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Excess dietary protein can be stored in the body through processes such as protein synthesis, gluconeogenesis, urea synthesis, and lipogenesis.

When the body consumes excess dietary protein, it utilizes a process called protein metabolism to store and utilize the protein efficiently. Here's a step-by-step breakdown of how the body stores excess dietary protein:

Protein digestion: The process begins in the stomach, where protein is broken down into smaller peptides and amino acids by digestive enzymes.

Absorption: The small intestine absorbs the digested peptides and amino acids into the bloodstream.

Protein synthesis: A portion of the absorbed amino acids is used for immediate protein synthesis in cells, contributing to the growth, repair, and maintenance of body tissues.

Conversion to energy: If the body has an excess amount of amino acids, they can be converted into glucose through a process called gluconeogenesis. Glucose is then stored as glycogen in the liver and muscles for energy reserves.

Deamination and urea synthesis: Excess amino acids undergo deamination, where the amino group is removed and converted into ammonia. The liver converts ammonia into less toxic urea, which is excreted in urine.

Fat storage: When dietary protein intake exceeds the body's protein needs, excess amino acids can be converted into fatty acids through a process called lipogenesis. These fatty acids are then stored as triglycerides in adipose tissue, serving as a long-term energy source.

In summary, the body stores excess dietary protein through various processes, including immediate protein synthesis, conversion to glucose and glycogen for energy reserves, deamination and urea synthesis for elimination, and conversion to fatty acids for long-term storage as triglycerides in adipose tissue.

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to create cdna from extracted mrna requires the use of

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To create cDNA (complementary DNA) from extracted mRNA (messenger RNA), the process of reverse transcription is employed. Reverse transcription is a laboratory technique that utilizes the enzyme reverse transcriptase to synthesize cDNA from an mRNA template.

During reverse transcription, the mRNA molecule serves as a template for the synthesis of a complementary DNA strand. Reverse transcriptase catalyzes the addition of nucleotides to the growing cDNA strand, using the mRNA template as a guide.

In addition to reverse transcriptase enzyme, the process of creating cDNA from extracted mRNA typically requires other components such as primers, dNTPs (deoxyribonucleotides), buffers, and appropriate reaction conditions to ensure efficient and accurate cDNA synthesis.

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A bank is planning to grant a loan of Ten Million Dollars ($10 million) to a firm in the manufacturing sector. The current market interest in this sector is 10%. The bank expects to charge a servicing fee of 20 basis points ($20,000). The loan has a maturity of 8 years with a duration of 6.5 years. The cost of funds for the bank is 8%.
Assume the bank has estimated the risk premium on the manufacturing sector to be approximately 4.25% based on two years of historical data. The return on equity (ROE) is 7.5%.
5.1 Estimate the risk adjusted return on capital (RAROC) for the above loan.
5.2 Using the risk adjusted return on capital model, decide whether the bank should grant the loan. Show your calculations. Provide your answer below

Answers

5.1 To estimate the risk-adjusted return on capital (RAROC), we can use the formula:

RAROC = (Loan spread + Risk premium) * PD / LGD

Where,

PD is the probability of default

LGD is the loss given default

Loan spread = 10% - 8% = 2%

Risk premium = 4.25%

PD can be assumed to be 3% for this problem (since it is not given), and LGD can be assumed to be 40% (typical for a manufacturing firm).

Plugging in the values, we get:

RAROC = (2% + 4.25%) * 3% / 40% = 0.31875 or 31.875%

Based on the RAROC calculation, the bank should grant the loan since the RAROC is higher than the bank's required return on capital, which is typically around 12-15%.

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Use the Internet to identify one manufacturing company that currently uses an activity-based costing (ABC) system. How does an ABC system compare to a traditional costing system?

What are the advantages and disadvantages?

Answers

One manufacturing company that currently uses an activity-based costing (ABC) system is 3M Company. 3M is a multinational conglomerate that operates in various industries, including manufacturing.

Comparison between ABC System and Traditional Costing System:

Cost Allocation: Traditional Costing System: In a traditional costing system, costs are allocated based on a single cost driver, typically direct labor or machine hours. This assumes that the allocation is proportional to the level of resource consumption.

Activity-Based Costing (ABC) System: ABC system allocates costs based on multiple cost drivers, which are typically activities or processes that consume resources. It focuses on identifying and allocating costs to activities that drive resource consumption more accurately.

Cost Tracing: Traditional Costing System: In a traditional costing system, costs are traced to products using volume-based measures such as direct labor hours or machine hours. This may lead to distorted cost allocations if products have different resource consumption patterns.

Advantages of Activity-Based Costing (ABC) System:

Enhanced Cost Accuracy: ABC system provides more accurate product costs by considering the actual activities and resources consumed. It can reveal the true costs of products and services.

Disadvantages of Activity-Based Costing (ABC) System: Complexity: Implementing and maintaining an ABC system can be complex and time-consuming. It requires a detailed analysis of activities, cost drivers, and allocation methodologies. This complexity may increase the cost of implementing and operating the system.

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The quality of the focal school system has no impact on the decition to locate a warehoase in a particular cily : True Fatse QUESTION 17 The first actlvity that a warchouse engages in chronalogically is receiving the goods True False QUESTION 18 The paper-fist picking fechnique is the one that relies the most on the ability of the plekor to choose the right item in the night quantity. without an independent method to ensure accuracy. True False

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The statement that the first activity that a warehouse engages in chronologically is receiving the goods is false.

The first activity that a warehouse engages in chronologically is not always receiving the goods. Warehouses perform various activities depending on their operational processes and the specific needs of the business.
While receiving goods is an essential task for a warehouse, it may not always be the first activity. Other activities that can occur before receiving goods include order processing, inventory management, quality control, and preparing the warehouse for operations.

The paper-first picking technique does not rely the most on the ability of the picker to choose the right item in the right quantity without an independent method to ensure accuracy. The paper-first picking technique refers to a method where paper-based picking lists or orders are used by pickers to select items from the warehouse shelves. While this technique requires the picker to follow the paper instructions, it does not inherently provide a foolproof method to ensure accuracy.

To ensure accuracy in the picking process, additional measures can be implemented, such as barcode scanning, RFID technology, or using warehouse management systems (WMS) with integrated picking modules. These methods help verify item selection and quantities, reducing the reliance on the picker's ability to make accurate choices solely based on paper instructions.

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customarily, the state document tax stamp on the deed will

a. Not appear on sellers closing disclosure

b. appear as a credit on the buyer's Closing Disclosure

C appear as a credit on the seller's Closing Disciosure

D appear as a debit on the seller's Closing Disclosure

Answers

The option that shows how customarily the state document tax stamp on the deed appears as a debit on the seller's Closing Disclosure is D.

This stamp is a form of tax, usually associated with real estate transactions. It is paid by the property's new owner and is required by most states. The Closing Disclosure is a five-page form used to complete a mortgage transaction. It must be supplied to the client at least three days before closing. It provides a summary of the mortgage's primary features, including the loan terms, projected monthly payments, and total costs over the life of the loan.

"Customarily, the state document tax stamp on the deed will appear as a debit on the seller's Closing Disclosure." This is accurate because the tax is owed by the new homeowner. At the closing, the payment is usually settled by adjusting the funds between the two parties. As a result, this tax would be listed on the seller's Closing Disclosure as a debit, reducing the proceeds they get from selling the property.

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Which of the following is not contemplated when a person "buys time" after being asked to do something he thinks might be unethical?

A)Seek advice and assistance from other people
B)Find more facts
C)Prepare to lose the job
D)Evaluate the ethics of the action

Answers

When a person "buys time" after being asked to do something they think might be unethical, evaluating the ethics of the action is not contemplated. Seeking advice and assistance from other people, finding more facts, and preparing to lose the job are all considered options in such situations.

When faced with a potentially unethical situation, individuals may choose to "buy time" in order to carefully consider their actions and make an informed decision. This involves taking steps to gather more information, seek advice from others, and prepare for potential consequences. Seeking advice and assistance from other people is an important step as it allows individuals to gain different perspectives, insights, and guidance from trusted sources. Finding more facts is crucial in order to fully understand the situation, its potential ethical implications, and any potential alternatives that may exist. Additionally, preparing to lose the job is a consideration as individuals may need to assess the potential impact on their employment or career prospects.

However, the option that is not contemplated when buying time is specifically evaluating the ethics of the action. While it may seem implied that evaluating the ethics would be part of the decision-making process, it is not explicitly mentioned as a separate action in the given options. Nevertheless, it is important for individuals to carefully assess the ethical implications of their actions and make choices that align with their personal values and moral principles.

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Which of the following is a characteristic of a fixed trust? a. All of these are characteristics of fixed trusts b. If the trustee has determined to distribute income to a beneficiary, actual receipt of that income is not requarired for it to be assessable for income tax purposes. c. Beneficiaries can compel payment of amounts to which they are presently entitled d. The trustee usually has discretion as to the timing of the distribution

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A fixed trust is a type of trust where beneficiaries can compel payment of amounts to which they are presently entitled. Option c is correct.

This means that they have a legal right to receive these payments and can compel the trustee to make distributions accordingly. This characteristic sets fixed trusts apart from discretionary trusts, where the trustee has discretion in determining the timing and amount of distributions.

In a fixed trust, beneficiaries do not necessarily need to physically receive the income for it to be assessable for income tax purposes. If the trustee has determined to distribute income to a beneficiary, it becomes assessable to that beneficiary for taxation, even if they have not yet physically received the funds. This allows for taxation of income on an accrual basis rather than a cash basis.

Overall, a fixed trust provides beneficiaries with a clear entitlement to specific amounts, giving them more certainty and control over their share of the trust's income or capital.

Option c is correct.

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You are CEO of Cactus Spine Medical Center in rural southeastern California. The 105-bed hospital has been operating in the same building since opening in 1957. In 2005, it undertook a $17,000,000 renovation funded with a bond issue with a level annual payment over 20 years at 5.25% interest. The building is beginning to show its age after nearly 15 years, and it is facing about $5,000,000 in renovations, including a new roof, generator, chillers, and boilers, along with structural upgrades noted after a recent minor earthquake. The latest financial statements for the hospital as of its fiscal year-end on December 31, 2020, are included in the Cactus Spine Medical Center Financials document (pictured).

The hospital pondered refinancing its debt a year ago and received a tentative Baa rating from Moody's. They still qualify for that rating today. As a nonprofit, that may help you determine a cost of capital for your project, should you decide to undertake it.

Regulatory inspectors have warned you that if you do not have a plan in place to remedy the seismic building safety issues noted here within the next year, they will pursue revocation of the hospital license. The Joint Commission made similar comments in its re-accreditation visit this past year. So you are likely spending that $5 million. How do you determine the ROI on a project like this? Maybe you just want to "punt" and sell to Primary Health Corporation since they have expressed interest in acquiring your facility at a price of about $3 million and paying off the hospital debt. (HINT: Don't do that.)

Answers

ROI or Return on Investment can be calculated by taking the total benefit divided by the total cost. This gives you a percentage that represents the return on investment. ROI or Return on Investment can be calculated by taking the total benefit divided by the total cost.  Hence ROI will be $1.40.

This gives you a percentage that represents the return on investment.

ROI = (Total Benefit / Total Cost) × 100

Since the hospital is in danger of losing its license and the Joint Commission has already noted the building's structural issues, you would most likely be forced to spend the $5 million. One way to estimate the benefit would be to calculate the additional revenue the hospital could generate after the renovation. This may come in the form of increased patient volume, higher reimbursements from insurance companies, or improved patient satisfaction ratings. Once you have calculated the total benefit, you can subtract the total cost to get the net benefit.

ROI = (Total Benefit / Total Cost) × 100

For example, if the total benefit is $7 million and the total cost is $5 million, the net benefit would be $2 million. The ROI would be calculated as follows:

ROI = ($7 million / $5 million) × 100 = 140%This means that for every dollar invested in the renovation, the hospital would receive a return of $1.40.

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Nipigon Manufacturing has a cost of debt of 9%, a cost of equity of 11%, and a cost of preferred stock of 10%. Nipigon currently has 120,000 shares of common stock outstanding at a market price of $25 per share. There are 49,000 shares of preferred stock outstanding at a market price of $38 a share. The bond issue nas a face value of $950,000 and a market quote of 106 . The company's tax rate is 40%. Required: Calculate the weighted average cost of capital for Nipigon. You must show and clearly label all calculations to receive full marks. You can enter your calculations n the space provided below or you can upload them to the drop box provided in the Assignments area.

Answers

The weighted average cost of capital for Nipigon is 7.76%.

As per data,

cost of debt = 9%

cost of equity = 11%

cost of preferred stock = 10%

Common stock outstanding = 120000

Preferred stock outstanding = 49000

Face value of bond issue = $950,000

Market quote of bond issue = 106

Market price of common stock = $25

Market price of preferred stock = $38

Tax rate = 40%

We need to find out the weighted average cost of capital for Nipigon. The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.

The WACC is commonly referred to as the firm's cost of capital. Importantly, it is dictated by the external market and not by management.

The formula to calculate the WACC is given below,

WACC = (E / V) * Re + (D / V) * Rd * (1 - Tc) + (P / V) * Rp

Where,

Re = Cost of equity

Rd = Cost of debt

Rp = Cost of preferred stock

E = Market value of the firm's equity

D = Market value of the firm's debt

P = Market value of the firm's preferred stock

V = Total Market value of the firm's financing (equity, debt & preferred stock)

Tc = Corporate tax rate

Calculate required values,

Market value of equity = 120,000 x $25

                                     = $3,000,000

Market value of preferred stock = 49,000 x $38

                                                     = $1,862,000

Market value of debt = 950,000 × 1.06

                                   = $1,007,000

V = $3,000,000 + $1,007,000 + $1,862,000

  = $5,869,000

Re = Cost of equity = 11%

Rd = Cost of debt = 9%

Tc = Tax rate = 40%

Rp = Cost of preferred stock = 10%

Calculating WACC by filling the values in the above formula,

WACC = (3000000 / 5869000) * 11% + (1007000 / 5869000) * 9% * (1 - 40%) + (1862000 / 5869000) * 10%

         = 7.76%

Hence, the weighted average cost of capital is 7.76%.

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the four leading causes of death in the construction industry

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The four leading causes of death in the construction industry are: Falls, Struck by Object, Electrocutions, Caught-in/Between

The construction industry is known for its unique risks and hazards, which can result in serious injuries and fatalities. The four leading causes of death in the construction industry, often referred to as the "Fatal Four," are:

1. Falls: Falls from heights are a major cause of fatalities in construction. These can occur from scaffolding, ladders, roofs, or other elevated surfaces. Failure to use fall protection measures, inadequate safety training, and improper use of equipment are common contributing factors.

2. Struck by Object: Workers in construction are at risk of being struck by objects such as falling tools, equipment, or materials. This can happen due to unstable structures, improper storage, or lack of safety barriers. Being struck by moving vehicles, such as construction equipment or trucks, is also a significant hazard.

3. Electrocutions: Electrical hazards are prevalent in construction sites, which can lead to fatal electrocutions. Workers can come into contact with live wires, faulty electrical systems, or overhead power lines. Inadequate training, improper use of equipment, and failure to implement proper lockout/tagout procedures contribute to these incidents.

4. Caught-in/Between: Being caught-in or caught-between objects or equipment is another significant cause of fatalities in construction. Examples include being caught in moving machinery, being trapped between collapsing structures, or being caught in excavation or trench collapses. Insufficient safety precautions, lack of proper protective systems, and inadequate training on hazards contribute to these accidents.

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