Anna's
deposit
expands the credit market by $20,000.
To determine the expansion of the credit
market
due to Anna's deposit, we need to calculate the money multiplier. The money multiplier is the reciprocal of the reserve requirement.
Given that the
reserve
requirement is 5% (0.05), the money multiplier is calculated as:
Money Multiplier = 1 / Reserve Requirement = 1 / 0.05 = 20
Now we can calculate the expansion of the credit market by multiplying Anna's deposit by the
money
multiplier:
Expansion of Credit Market = Anna's Deposit *
Money Multiplier = $1,000 *
= $20,000
Therefore, Anna's deposit expands the
credit
market by $20,000.
To know about
deposit
visit:
https://brainly.com/question/1438257
#SPJ11
Company ABC made a massive sale in the month of December 2019. Despite the high sales, the profit was not promising. Cost of production 10,000 Sales per unit 10 (800) Wages 700 Utility 1000 Cost of transportation 200 Using the information, prepare an Income Statement Account for the month of January. 25 ISTANBUL GELISIM UNIVERSITES
The company made a loss of 3,900 during the month of December 2019. Below is the format of an Income statement account for the month of December 2019. Income Statement Account for the Month of December 2019Particulars Amount ($)Revenue8,000Expenses Cost of production10,000Wages 700Utility 1,000Cost of transportation 200Total Expenses 11,900Profit/Loss-3,900
An income statement also referred to as a profit and loss statement, is a report that shows the revenues, expenses, and resulting profits or losses of a business. It offers a comprehensive overview of a company's financial status over a specified period.
The given information is as follows:
Cost of production 10,000 Sales per unit 10 (800)Wages 700 Utility 1000Cost of transportation 200Using the above information, the company's income statement can be prepared as follows:
Calculation of revenue:
Revenue = Sales per unit * Units sold
Revenue = 10 * 800
Revenue = 8,000
Calculation of expenses:
Expenses = Cost of production + Wages + Utility + Cost of transportation
Expenses = 10,000 + 700 + 1000 + 200Expenses = 11,900
Calculation of profit:
Profit = Revenue - Expenses
Profit = 8,000 - 11,900Profit = -3,900 (negative)
Therefore, the company made a loss of 3,900 during the month of December 2019. Below is the format of an Income statement account for the month of December 2019. Income Statement Account for the Month of December 2019Particulars Amount ($)Revenue8,000Expenses Cost of production10,000Wages 700Utility 1,000Cost of transportation 200Total Expenses 11,900Profit/Loss-3,900
Note: In the above statement, revenue is subtracted from the expenses to get the profit. When the expenses exceed the revenue, it results in a loss, which is reflected as a negative amount.
To know more about Revenue refer here :
https://brainly.com/question/30164483
#SPJ11
Why does a full carry model apply so well to the US Treasury bond and S&P 500 futures contracts? What modifications do we have to make to the carry model to value US treasury bond futures? What modification do we have to make to the carry model to value S&P 500 futures contract? Why? We moved from a relatively complicated minimum variance hedge ratio (MVHR) to a much simpler dollar offset ratio (DOR). Can you explain the logic of this movement from MVHR to DOR?
Carry model, or roll-down, refers to the expected profit (or loss) that an investor would realize when holding a long futures contract to maturity. A full carry model, in which the future price is expected to revert to its spot price over the contract's life, applies well to the US Treasury bond and S&P 500 futures contracts.
To value US Treasury bond futures, modifications have to be made to the carry model by including the term structure of interest rates. The modification that has to be made to the carry model to value S&P 500 futures contract is to include the dividend yield of the index in the model. This is because stock indices pay dividends to shareholders and the dividends paid affect the future price of the stock index. Hence, including dividend yield makes the carry model more accurate in valuing S&P 500 futures contract. The movement from a relatively complicated minimum variance hedge ratio (MVHR) to a much simpler dollar offset ratio (DOR) is due to the inefficiency of the MVHR method, which leads to excessive transactions cost. DOR was adopted to reduce transactions costs while still providing adequate hedging. The DOR method involves calculating the number of futures contracts needed to be shorted by multiplying the value of the hedged item by the DOR percentage. The DOR is much simpler than MVHR because it does not require continuous rebalancing.
To know more about investor visit:
https://brainly.com/question/31933294
#SPJ11
As of 31.12.20x1, a company has NOK 12,800,000 in equity, NOK 10,200,000 in current assets,
NOK 9,800,000 in fixed assets, NOK 1,200,000 in short-term debt. What is the amount of the company's long-term debt?
The amount of the company's long-term debt is NOK 18,800,000.On December 31, 20x1, the company had:NOK 12,800,000 in equity,NOK 10,200,000 in current assets,NOK 9,800,000 in fixed assets,NOK 1,200,000 in short-term debt.
The difference is the amount of long-term debt.Using the accounting equation,Total assets = Total liabilities + EquityWe have,Total assets = NOK 10,200,000 + NOK 9,800,000 + NOK 12,800,000Total assets = NOK 32,800,000.Total liabilities = Total assets − Equity.
Total liabilities = NOK 32,800,000 − NOK 12,800,000Total liabilities = NOK 20,000,000.Now that we know the total liabilities, we can find the long-term debt by subtracting the short-term debt:Long-term debt = Total − Short-term debt Long-term debt = NOK 20,000,000 − NOK 1,200,000.Long-term debt = NOK 18,800,000.
To know more about long-term , refer to the link:
https://brainly.com/question/30197447#
#SPJ11
Suppose an avocado farm has cost: C= 0.002q^3+22q+750 (where q is measured in bushels).
Marginal cost is: MC = 0.006q^2+22
The market price per bushel of avocados is P=39
In the short run, this firm's profit is -146.74
Because of the short run profit found in part a...
In the long-run, we expect firms to ________ the market, such that the long run market price of avocados would _______.
a. enter; decrease
b. exit; remain unchanged
c. exit; increase
d. enter; equal zero
In the long run, we expect firms to exit the market, such that the long-run market price of avocados would decrease.
The negative short-run profit indicates that the avocado farm is not covering its total costs, including the opportunity cost of resources. In a competitive market, firms experiencing losses in the short run are likely to exit the market in the long run. As firms exit, the overall supply of avocados decreases, leading to a decrease in market supply. With a lower supply of avocados, the market price is expected to decrease as demand remains constant or potentially decreases due to the higher price. The decrease in market price incentivizes firms to exit the industry until a long-run equilibrium is reached, where firms that remain in the market earn zero economic profit. Therefore, in this scenario, the expectation is that firms would exit the market, and the long-run market price of avocados would decrease.
To know more about ,negative short-run profit ,click here https://brainly.com/question/13132125
#SPJ11
(figure: profits and competitive firms) refer to the four panels in the figure. which panel shows a competitive firm making an economic loss?
The panel that shows a competitive firm making an economic loss is the panel labeled (C).
In this panel, the marginal cost curve is below the average total cost curve, which implies that the firm is losing money on every unit of output that it produces. At the profit-maximizing output level, the firm's marginal revenue is equal to its marginal cost, which is below its average total cost, resulting in a loss. Therefore, the firm is making an economic loss in panel (C).
The panel that shows a competitive firm making an economic loss is panel (C). At the profit-maximizing output level, the firm's marginal revenue is equal to its marginal cost, which is below its average total cost, resulting in a loss.
To know more about firm visit:
brainly.com/question/31687318
#SPJ11
create a master budget for the next quarter.
Manufacturing a Car
Materials:
-steel
-plastic
-rubber
Glass
Labor:
-assembly
-painting
-testing
The total cost of making a car is:
Product costs:
Materials: $5,000
Labor: $800
Utilities: $300
Period costs:
Supervisor salary: $1500
Building rent: $1000
Advertising: $100
The total cost of making a car is $8,700
The profit for the next quarter is expected to be $16,350.
A master budget is a complete business plan that outlines all of the expected costs and revenue for a company. It is generally created on a quarterly or yearly basis and is used as a guide for making strategic decisions and ensuring that the company is on track financially. Here is a master budget for the next quarter for manufacturing a car:
Materials: Steel, plastic, rubber, and glass are used in the production of a car. Based on past production and sales, the following are the expected quantities of each material for the next quarter:Steel: 1,500 poundsPlastic: 750 poundsRubber: 250 poundsGlass: 200 pounds.
The cost per pound of each material is Steel: $3Plastic: $4Rubber: $5Glass: $10The total cost of materials for the next quarter can be calculated as follows:Steel: 1,500 pounds x $3/pound = $4,500Plastic: 750 pounds x $4/pound = $3,000Rubber: 250 pounds x $5/pound = $1,250Glass: 200 pounds x $10/pound = $2,000Total cost of materials: $10,750Labor:
The manufacturing process requires three types of labor: assembly, painting, and testing. Based on past production and sales, the following are the expected hours of labor for each type for the next quarter:Assembly: 1,000 hours painting: 500 hours testing: 250 hoursThe cost per hour of each type of labor is:Assembly: $20Painting: $25Testing: $30The total cost of labor for the next quarter can be calculated as follows:Assembly: 1,000 hours x $20/hour = $20,000Painting: 500 hours x $25/hour = $12,500Testing: 250 hours x $30/hour = $7,500Total cost of labor: $40,000Utilities: The expected cost of utilities for the next quarter is $300.Period Costs: These are costs that are incurred regardless of the level of production and include expenses such as supervisor salary, building rent, and advertising.
Based on past experience, the following are the expected period costs for the next quarter: Supervisor salary: $1,500Building rent: $1,000Advertising: $100Total period costs: $2,600Product Costs: These are the costs that are directly related to the production of the car and include materials, labor, and utilities. The total cost of making a car is $8,700.The master budget for the next quarter can be summarized as follows:Materials: $10,750Labor: $40,000Utilities: $300Period costs: $2,600Total costs: $53,650Expected revenue: Based on past sales data, the expected revenue for the next quarter is $70,000.Profit: The profit can be calculated as follows: Profit = Revenue - Total CostsProfit = $70,000 - $53,650Profit = $16,350. Therefore, the profit for the next quarter is expected to be $16,350.
Learn more about master budget
https://brainly.com/question/27137019?
#SPJ11
Four claims are listed below. If you think it is false: either disprove it or give a counter example.
A) Shortest path problem is an NP-Hard problem.
B) Travelling Salesman Problem can be solved in polynomial time with an enumeration (or exhaustive) algorithm.
C) Dijkstra's Algorithm guarantees an optimal solution for any given graph with negative edges.
D) 2-center facility location problem cannot be solved in polynomial time. E) Union of two non-convex sets cannot be convex.
The statement that is false from the options given is B) Travelling Salesman Problem can be solved in polynomial time with an enumeration (or exhaustive) algorithm.
NP-Hard problems are those which are as hard as the hardest NP problems. The Travelling Salesman Problem is NP-Hard as it is a Hamiltonian Cycle problem, which is one of the NP-Hard problems. Hence, statement A is true.
The Travelling Salesman Problem is a famous example of an NP-Hard problem and it is known to be one of the most difficult problems in computer science. It is also known as an optimization problem. It is easy to state but hard to solve in practice. The exhaustive enumeration algorithm takes factorial time to solve the problem and is not polynomial. Hence, statement B is false.
Dijkstra's algorithm guarantees an optimal solution for any given graph without negative edges. Hence, statement C is false.
The 2-center facility location problem can be solved in polynomial time. Hence, statement D is false.
The Union of two non-convex sets may or may not be convex. Hence, statement E is true.
Learn more about the Algorithm:
https://brainly.com/question/29674035
#SPJ11
All residents in Smallville work at the only local factory. They all earn the same annual wage W. There is some risk that a worker may suffer a minor injury on the job because the factory has a lot of dangerous equipment. If a worker is hurt on the job during the year, the worker suffers a financial loss of L (this includes doctor bills and other costs). There are three different types of residents. Type A residents are quite accident-prone, type B residents are moderately careful, and type C residents are extremely careful. The chance that a worker of type A has an accident during the year is 2/5, the chance that a worker of type B has an accident is 1/5, and the chance that a worker of type C has an accident is zero. a) Insurance companies offer to sell accident insurance to residents in this town. Assume that companies can tell what type each resident is. Describe the insurance contracts (the relationship between the insurance premium, a, paid by the worker and the net benefit, b, received by the worker in the case of an accident) that competitive firms will offer to workers of each type. [Hint: You are simply finding the zero-profit condition for insurance firms when dealing with each type of worker.] b) Each individual has an expected utility function that looks like the following: EU = p ln(YA) + (1−p) ln(YNA),
where p is the probability of an accident, YA is an individual's net income in case of an accident, and YNA is an individual's net income if no accident occurs. Assume that W is equal to 100 and L is equal to 50. If a person of type B is offered an actuarially fair insurance contract, derive the amount of insurance this person would choose to buy. Interpret your result. [Hint: Find the optimal amount of insurance by choosing either a or b to maximize a type B person's expected utility subject to the appropriate no-profit insurance constraint.] c) Would a type A person prefer full insurance at actuarial fair rates appropriate to their own risk or the insurance contract chosen by type B individuals in part b)? [Do not work this out algebraically. Derive your answer using a graph with net income in the accident state on one axis and net income in the no-accident state on the other.] Would an insurance company be willing to offer full insurance at rates appropriate to type B's risk if it could not tell type A and type B individuals apart? d) Explain how the government can help to improve problems of adverse selection like the one encountered in part c).
The given scenario is related to insurance, risk, and the behavior of people towards it. It is about a town where all residents work in a factory and earn the same amount of annual wage W. However, there is a risk involved in the job as the factory has dangerous equipment.
a) Insurance companies can offer accident insurance to residents of this town. The company can recognize the type of resident and offer insurance contracts according to their risk involved. Competitive firms can offer a zero-profit condition for insurance to each type of worker.
b) The expected utility function that represents an individual's satisfaction from the consumption of goods. If a person of type B is offered an actuarially fair insurance contract, the amount of insurance this person would choose to buy can be determined by using the following equation: EU = p ln(YA) + (1−p) ln(YNA), W = 100 and L = 50.
According to the actuarially fair contract, the amount of premium would be equal to the expected cost of accidents. 0.2(50) + 0.8(x - a) = 0.5x - a ,x = 80 .Therefore, the optimal amount of insurance a type B person would buy is $30 (i.e., $80-$50).
To know more about insurance, refer to the link:
https://brainly.com/question/989103#
#SPJ11
Crane Enterprises purchased equipment on March 15, 2021, for $74,910. The company also paid the following amounts: $550 for freight charges; $203 for insurance while the equipment was in transit; $1,889 for a one-year insurance policy; $2,096 to train employees to use the new equipment; and $2,777 for testing and installation. The company began to use the equipment on April 1. Crane has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipment's future economic benefits evenly over the useful life. The company has a December 31 year end. (a) Calculate the cost of the equipment.
In the given problem, the cost of equipment is $75,663.
How to Solve for the Cost?To determine the cost of the equipment, we must take into account the initial purchase price as well as any additional costs directly related to purchasing and preparing the equipment for use.
The equipment costs:
The purchase price is $74,910.
$550 in freight costs
Transportation insurance: $203
Total equipment cost = purchase price + freight costs + transit insurance = $74,910 + $550 + $203 = $75,663
As a result, the equipment costs $75,663.
Learn more about cost here: https://brainly.com/question/29208604
#SPJ1
a business that performs tasks for customers. a. franchise b. corporation c. service business d. retail business
A business that performs tasks for customers are service business. So option c is correct.
A service business is a type of business that provides intangible products or services to customers. This can include businesses such as restaurants, hair salons, and car washes. Service businesses typically perform tasks for customers, such as cooking food, cutting hair, or washing cars.
A franchise is a business that is owned and operated by an individual or group of people, but which uses the name, branding, and products of a larger company. Franchises are typically not considered service businesses, as they do not perform tasks for customers.A corporation is a legal entity that is separate from its owners. Corporations can be either service businesses or retail businesses.
A retail business is a type of business that sells goods to customers. Retail businesses typically do not perform tasks for customers, as they are simply selling goods.
Therefore ,option c is correct.
To learn more about business visit: https://brainly.com/question/18307610
#SPJ11
Which of the following correctly pairs the transaction with its related activity? Payment of dividends to stockholders - Operating Collection of cash from customers - Financing Receipt of cash from st
Payment of dividends to stockholders - Financing
Which transaction is correctly paired with its related activity?Understanding the correct pairing of transactions with their related activities is crucial for accurately recording financial transactions in accounting. In this case, the payment of dividends to stockholders is categorized as a financing activity.
Dividends represent the distribution of profits to the owners of a company's stock and are typically funded from retained earnings or accumulated profits. This activity falls under financing because it involves the distribution of resources to the company's owners or shareholders.
On the other hand, the collection of cash from customers is an operating activity, as it pertains to the core revenue-generating operations of the business. It represents the inflow of cash resulting from the sale of goods or services.
It's important to correctly identify these activities to ensure accurate financial reporting and analysis.
Learn more about Transaction
brainly.com/question/24730931
#SPJ11
Provide a case summary and include the significance of the
outcome in Ermogenous v Greek Orthodox Community of SA Inc
(2002) 209 CLR 95.
Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95 was a significant case involving a dispute over the ownership of a burial plot in a Greek Orthodox cemetery.
The case centered around the question of whether a religious organization had the authority to determine who could be buried in the cemetery. The High Court of Australia held that the Greek Orthodox Community did not have absolute control over the burial plots, and individuals had the right to be buried according to their own religious beliefs and practices.
The significance of the outcome in Ermogenous v Greek Orthodox Community of SA Inc lies in the recognition and affirmation of an individual's right to practice their religious beliefs, even in a community setting.
The case clarified that religious organizations cannot have unlimited control over the burial plots and cannot restrict individuals from being buried according to their own religious traditions. It established a precedent that promotes religious freedom and respects the autonomy of individuals in matters of burial and religious practices. This case highlighted the importance of balancing the rights of religious organizations with the rights of individuals within a community context.
To know more about religious freedom click here: brainly.com/question/29783580
#SPJ11
In your own words, explain why the auditor’s assessment of the
appropriateness of the going concern assumption is so important?
500 words
The auditor's assessment of the appropriateness of the going concern assumption is crucial because it determines whether a company can continue its operations and meet its obligations in the foreseeable future. This assessment provides stakeholders with reliable information about the company's financial stability and helps them make informed decisions.
The going concern assumption refers to the presumption that a company will continue its operations in the foreseeable future, typically for at least the next 12 months. The auditor's assessment of the appropriateness of this assumption is of utmost importance for several reasons. Firstly, the going concern assumption affects the financial statements and disclosures presented by the company. If the auditor determines that there are significant uncertainties about the company's ability to continue as a going concern, it may result in adjustments to the financial statements. These adjustments could include restating assets at their liquidation values or disclosing additional information about the uncertainties. Such adjustments and disclosures are crucial for stakeholders, including investors, lenders, and shareholders, as they provide a more accurate picture of the company's financial position.
Secondly, the auditor's assessment helps stakeholders evaluate the company's viability and make informed decisions. Investors rely on audited financial statements to assess the company's ability to generate future cash flows and achieve long-term profitability. Lenders use this information to evaluate the company's creditworthiness and determine the terms of loans or credit extensions. Shareholders consider the going concern assessment when deciding whether to hold, buy, or sell shares. The auditor's opinion on the appropriateness of the going concern assumption provides credibility and reliability to these stakeholders, enabling them to make sound financial decisions.
Furthermore, the assessment of the going concern assumption contributes to the overall transparency and trustworthiness of financial reporting. By examining the company's financial health and considering factors such as liquidity, debt obligations, and profitability, the auditor provides an independent and objective assessment. This assurance helps mitigate the risk of misleading financial information and promotes confidence in the financial markets.
Lastly, the auditor's assessment is essential for regulatory compliance. Many jurisdictions require companies to prepare financial statements on a going concern basis unless management intends to liquidate or cease operations. Auditors play a crucial role in evaluating the appropriateness of this assumption, ensuring that companies comply with accounting standards and regulatory requirements. Failure to assess the going concern assumption accurately can have severe consequences, including legal and reputational issues for both the auditor and the company.
In conclusion, the auditor's assessment of the appropriateness of the going concern assumption is vital due to its impact on financial statements, stakeholders' decision-making, financial transparency, and regulatory compliance. By providing an independent evaluation of a company's ability to continue operations, the auditor's opinion enhances the reliability and usefulness of financial information, enabling stakeholders to make informed judgments about the company's financial stability and future prospects.
Learn more about stakeholders here: https://brainly.com/question/3044495
#SPJ11
Baker Industries et income is $27,000, its interest expense is $5,000, and its tax rate is 25%. Its not payable equals $23,000, long terme debt equals $70,000, and common equity equals $255,000. The firm Finances with Round your answers to the decimal places
The following is a solution to the problem:Baker Industries Et Income = $27,000Interest expense = $5,000Tax rate = 25%Not Payable = $23,000Long-term debt = $70,000Common Equity = $255,000
We can determine the firm's financing sources through the following formula:Total liabilities and equity = Total AssetsNot Payable + Long-term debt + Common equity = Total Assets$23,000 + $70,000 + $255,000 = $348,000Baker Industries' Total Assets is $348,000.Baker Industries' interest payment is already known. Interest Expense ÷ Debt = Interest rate$5,000 ÷ $70,000 = 0.071 or 7.1%Baker Industries' weighted average cost of capital (WACC) is as follows:Weighted Average Cost of Capital (WACC) = Proportion of debt × cost of debt × (1 − tax rate) + Proportion of equity × cost of equity(0.67 × 7.1% × (1 - 0.25) + 0.33 × 11%) = 6.07%
Therefore, the answer to the problem is that Baker Industries has a WACC of 6.07%.
To know more about long term debt visit-
https://brainly.com/question/32157123
#SPJ11
Many young people can speak a variety of languages. What impact will this have in the marketplace in future? Select one: a. They will want to access information on the Internet in a variety of languages. b. They will do their shopping online. C. They will want culturally specific websites to engage with. d. They will be challenging to market to.
In future, the impact of the ability of many young people to speak a variety of languages in the marketplace will result in them wanting to access information on the Internet in a variety of languages. The correct option is a.
This means that businesses will need to adapt their marketing strategies to cater to a multilingual audience by creating culturally specific websites and making sure that their products and services are marketed in different languages.
The ability to speak multiple languages is becoming more important in a globalized world where businesses and organizations are expanding their operations to different countries and regions. This will make these young people an asset in the workforce as they will be able to communicate with customers, clients, and business partners in different languages.
They will be able to create new business opportunities and partnerships with companies from different parts of the world. However, with the ability to speak multiple languages, these young people will also be challenging to market to. This is because they will have higher expectations of businesses and will want to be engaged in a more culturally specific way.
They will expect businesses to provide them with personalized experiences that cater to their specific cultural needs. Therefore, businesses will need to invest in developing websites that are tailored to the specific needs of each market they operate in. Businesses that do not adapt to these changes will be at a disadvantage and will struggle to compete in a global marketplace.
Therefore, The correct option is a.
To learn more about marketplace click here:
https://brainly.com/question/14388522#
#SPJ11
Sarah needs to accumulate $110,159 for your son's education. She has decided to place equal beginning-of-the-year deposits in a savings account for the next 18 years. The savings account pays 6.63 percent per year, compounded annually. How much will each annual payment be?
Round the answer to two decimal places.
Based on the given conditions, the value of equal beginning-of-the-year deposits for 18 years that will accumulate a sum of $110,159 at an interest rate of 6.63% per annum compounded annually can be found by using the following formula:
:Given that Sarah needs to accumulate $110,159 for her son's education. She has decided to place equal beginning-of-the-year deposits in a savings account for the next 18 years and the savings account pays 6.63 percent per year, compounded annually.The
formula to find the present value of an annuity is PV of annuity = (C / r) × (1 - (1 / (1 + r)^n))Where, C is the annual payment r is the interest rate per period n is the number of periods PV of annuity is the present value of the annuity. PV of annuity = (C / r) × (1 - (1 / (1 + r)^n))Plugging in the given values, we get110159 = (C / 0.0663) × (1 - (1 / (1 + 0.0663)^18))By solving for C, we get3,595.28Therefore, each annual payment needs to be $3,595.28.
To know more about compounded visit:-
https://brainly.com/question/32538719
#SPJ11
21 Which of the following is NOT a characteristic of
publicity?
Group of answer choices
It is usually free.
It is considered objective.
It is under full control of the brand.
It is considered credible
"It is under full control of the brand" is NOT a characteristic of publicity.
Publicity refers to the spread of information or news about a brand, product, or organization through various media channels. It is typically characterized by the following:
It is usually free: Publicity is often earned media, meaning it is not paid for directly. It is the result of media coverage, press releases, or word-of-mouth.It is considered objective: Publicity is perceived as more objective because it is generated by external sources, such as journalists or influencers, rather than the brand itself. This adds credibility and authenticity to the information.It is considered credible: Publicity is generally seen as more credible because it is not controlled directly by the brand. It is based on the independent evaluation and endorsement of the brand or its offerings by third parties.However, "It is under full control of the brand" is NOT a characteristic of publicity. Unlike advertising, where the brand has complete control over the message, placement, and timing, publicity relies on external sources to disseminate information. The brand can influence publicity through strategies like press releases or media relations, but it cannot have full control over how the information is presented or perceived.
Among the given options, the characteristic of publicity that does not apply is "It is under full control of the brand." Publicity is typically free, considered objective, and seen as credible due to its reliance on external sources and the lack of direct brand control.
To know more about brand, visit :
https://brainly.com/question/31752787
#SPJ11
The maximum gain of a short put position is:
a. zero.
b. $1,000
c. unlimited.
d. equal to the premium received.
The maximum gain of a short put position is equal to the premium received. The correct Option is D: Equal to the premium received.
A short put is a type of options trading strategy. It is an options contract where the trader selling it is required to purchase the underlying asset at a predetermined price from the buyer if the buyer decides to exercise their option. The maximum gain is the maximum profit that a trader or investor can gain from an investment strategy or trade. It is the highest amount of profit that can be achieved before the price of the asset changes direction and begins to move downward.
When an investor sells a put option, it is known as a short put strategy. In this strategy, the seller collects a premium in return for taking on the obligation to purchase the underlying asset at a specific price (strike price) if the option is exercised by the buyer before expiration. The maximum gain from the short put position is the premium collected by the seller in exchange for taking on the obligation to buy the asset.
To know more about premium refer to:
https://brainly.com/question/16845751
#SPJ11
a Fuuver Industries plans to have a capital budget of $550,000. It wants to maintain a target capital structure of 40% debt and 60% equity, and it also wants to pay a dividend of $150,000. If the company follows the residual dividend model, how much net income must it earn to meet its investment requirements, pay the dividend, and keep the capital structure in balance? O a $350,000 O . $480,000 O $370,000 Od 5640,000 O e $330,000
Fuuver Industries plans to have a capital budget of $550,000. It wants to maintain a target capital structure of 40% debt and 60% equity, and it also wants to pay a dividend of $150,000. If the company follows the residual dividend model, how much net income must it earn to meet its investment requirements, pay the dividend, and keep the capital structure in balance?
Answer: Option B ($480,000) Fuuver Industries' net income to meet its investment requirements, pay the dividend, and keep the capital structure in balance is $480,000. The residual dividend model suggests that a company should retain capital for profitable investments and distribute dividends to shareholders only after meeting the company's investment needs. To find out how much net income is required for the dividend, investment, and capital structure, use the following formula: Investment Required = Budget – Retained Earnings – New DebtIssuing - Dividends = Retained Earnings – Net IncomeRetained Earnings = Net Income – DividendRetained Earnings = $550,000 – [($550,000 * 60%) – $150,000]Retained Earnings = $280,000Investment Required = $550,000 – $280,000 = $270,000To maintain the target capital structure of 40% debt and 60% equity, we need to calculate the amount of debt and equity needed to make up the $550,000 capital budget.Equity = $550,000 * 60% = $330,000Debt = $550,000 * 40% = $220,000Dividends = $150,000Retained Earnings = $280,000 Investment Required = $270,000Total Financing = $330,000 + $220,000 = $550,000Net Income Required = $270,000 + $330,000 + $150,000 - $280,000Net Income Required = $480,000Hence, the correct answer is option B ($480,000).
To know more about Fuuver Industries visit:
https://brainly.com/question/881047
#SPJ11
in 2000 word Explain how social media will affect organizations and their knowledge management solutions practices
Social media will continue to have a profound impact on organizations and their knowledge management practices.
It enables seamless collaboration and knowledge sharing across geographies and departments, fostering innovation and agility.
Organizations can leverage social media platforms to gather insights, monitor trends, and engage with customers, employees, and stakeholders. Social media also provides a wealth of user-generated content that can be harnessed to enhance knowledge repositories and improve decision-making processes.
However, organizations must navigate challenges such as information overload, privacy concerns, and the need for effective filtering mechanisms to ensure the reliability and relevance of shared knowledge.
Overall, social media presents both opportunities and challenges in shaping organizations' knowledge management solutions practices.
Learn more about knowledge management here
https://brainly.com/question/32742649
#SPJ4
Social media, a relatively new phenomenon, is currently being used by organisations to promote participation and knowledge sharing with the goal of enhancing company operations. Social media may be able to help a variety of knowledge management (KM) techniques in this situation.
Social media promotes practises for knowledge management. An expert's knowledge intervention in online communities can guarantee ongoing knowledge production and dissemination. The interplay between the value of and gaps in knowledge exchange, the perceived utility of social media for knowledge exchange, and the impact of social media use on the success of such an activity influences employees' intentions to use social media to enhance internal knowledge exchange
The resource "knowledge" is supported through social media. Social media enhances the overall quality of the information base and various forms of knowledge. Different categories of knowledge, such as structural knowledge, relational capital, and social capital, can be impacted by social media (directly and indirectly). Social media has the power to make communication visible, which benefits organisations' meta-knowledge.
Social media facilitates the removal of knowledge management obstacles. Through the provision of relevant information, the identification of knowledgeable individuals, the creation of a virtual context, the utilisation of collective wisdom, and the development of trust, social media can help to ease knowledge difficulties. Social media platforms' interactive characteristics can help organisations overcome national culture as a barrier to KM.
Learn more about social media, here:
https://brainly.com/question/30194441
#SPJ4
Burnett Corp. pays a constant $7.25 dividend on its stock. The company will maintain this dividend for the next 9 years and will then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price
To calculate the current share price of Burnett Corp., use the dividend discount model (DDM) formula:
Po = D / (r - g) where Po = price of the stock, D = constant dividend payment for the year,r = required rate of returng = constant dividend growth rate (in this case it is zero).
Current Share Price = Dividend / (Required Return - Dividend Growth Rate)
Given:
Dividend = $7.25 (constant for the next 9 years)
Required Return = 12%
Dividend Growth Rate = 0% (no growth after 9 years)
Substituting the values into the formula:
Current Share Price = $7.25 / (0.12 - 0) = $7.25 / 0.12 ≈ $60.42
Therefore, the current share price of Burnett Corp. is approximately $60.42.
To know more about Dividend discount model visit-
brainly.com/question/32294678
#SPJ11
The e-text explains how money or currency, "serves as a medium of exchange" (O'Sullivan et al, 2019). Whether it be paper cash, metal coin, electronic payment, or even an item that is used to barter and trade with, they are all medium's of exchange (O'Sullivan et al, 2019). In the United States, as well as most other countries, consumers have become more accustomed to electronic payments instead of cash transactions: debit cards, credit cards, and other forms of electroic money transferring systems. As suppliers continue to update the way their goods and services can be payed for, the less paper cash will be used or needed. There are still a small handful of businesses that require cash only transactions but they are a very small minority. Most businesses have updated there systems to accept many forms of electronic payments. Well what does this mean for paper cash? "Although paper-based currencies are becoming less popular, they will likely stick around for the foreseeable future. Dollars and cents may become harder to use, but as with many obsolete technologies, there are enough users to ensure demand doesn't disappear completely" (The Green, 2021). Even most people's paychecks and most other deposits into their bank accounts are direct and electronic these days. When "millenials" and "generation z" consumers age to 70-80 years old, then paper money could be a thing of the past.
In most countries, electronic payments have gained momentum, replacing cash payments to a significant extent. However, paper-based currencies are expected to persist for the foreseeable future due to continued demand. This article explores the changes and transformations in the use of paper cash in today's society.
The widespread adoption of electronic payment systems, such as debit cards and credit cards, has contributed to the decline in cash usage. Electronic transactions offer advantages over cash payments, including speed, convenience, and enhanced security. Electronic payments eliminate the need to physically withdraw and carry cash, providing a faster and more convenient means of conducting transactions. Furthermore, the risk of theft associated with carrying cash is mitigated through the introduction of secure payment methods, biometrics, and encryption in electronic transactions.
Another benefit of electronic payments is the ease of tracking and budgeting. Users can effortlessly monitor their transactions, account balances, and even receive alerts for low balances. In contrast, cash transactions are more challenging to track, especially when numerous small purchases are made.
While the popularity of electronic transactions may make cash payments less convenient, the underground economy ensures that cash transactions will persist, albeit on a smaller scale. Despite this, the use of cash is expected to continue declining as more individuals adopt electronic payment methods.
To summarize, electronic payments have gained prominence, replacing cash payments in many countries. However, paper-based currencies will continue to exist due to ongoing demand. The convenience, security, and tracking benefits offered by electronic transactions contribute to their increasing popularity. Cash payments may persist in the underground economy but are expected to decrease in usage as more people embrace electronic payment systems.
To know more about electronic payments click here:
https://brainly.com/question/32588199
#SPJ11
Mikaela is responsible for performing a variety of human resource activities such as posting job openings and reporting current employees' job satisfaction. She is a __________.
Mikaela is responsible for performing a variety of human resource activities such as posting job openings and reporting current employees' job satisfaction. She is a human resource specialist.
A human resources specialist is responsible for tasks such as recruiting, interviewing, hiring, and training new employees. Additionally, a human resources specialist is responsible for maintaining employee records and updating them as necessary.
The duties of a human resources specialist are varied and can include tasks such as the following:
Recruiting and hiring new employees - The human resources specialist is responsible for recruiting and hiring new employees by posting job openings, reviewing resumes, and conducting interviews.
Training new employees - The human resources specialist is responsible for ensuring that new employees are properly trained in their job duties. This can include creating training materials and conducting training sessions.
Maintaining employee records - The human resources specialist is responsible for maintaining employee records, including attendance, performance, and disciplinary records.
Responding to employee questions - The human resources specialist is responsible for responding to employee questions about benefits, pay, and other work-related issues.
To know more about human resource specialist refer to:
https://brainly.com/question/30581579
#SPJ11
Aileen works in a pizza parlour inside a shopping mall. The mall has a new policy that all stores in the mall must be open until 10:00 PM, otherwise, the shop will be penalized with a rent increase. Aileen's manager asks Aileen to work until 10:00 PM and promises to increase her pay to $18.00/hr instead of $15.00/hr as stated in Aileen's employment contract. However, when Aileen receives her paycheque, she sees that the adjustment to $18.00/hr has not been made even though she has been working until 10:00 PM. Aileen confronts her manager. Her manager rescinds the offer of $18.00/hr and refers Aileen to the $15.00/hr stated in her employment contract. What are the employer's obligations in this scenario? Explain your answers.
In this scenario, the employer's obligations include honoring the promised wage increase and acting in accordance with the terms outlined in Aileen's employment contract.
The employer has an obligation to fulfill the promises made to employees, particularly regarding wages. By offering Aileen an increased pay rate of $18.00/hr for working until 10:00 PM, the manager created a contractual agreement. The employer is bound to adhere to this agreement and adjust Aileen's pay accordingly. Additionally, the employer has an obligation to act in accordance with the terms stated in the employment contract. If the contract stipulates a wage of $15.00/hr, it is expected that the employer upholds this provision unless an amendment or agreement is made. In this case, rescinding the offer and referring back to the contract's wage rate may breach the employer's obligation to fulfill their promises. Therefore, the employer should honor the promised wage increase and rectify the discrepancy in Aileen's pay.
learn more about wage increase here:
https://brainly.com/question/31963900
#SPJ11
the tennis shoe company has concluded that additional equity financing will be needed to expand operations and that the needed funds will be best obtained through a rights offering. it has correctly determined that as a result of the rights offering, the share price will fall from $68 to $64.80 ($68 is the rights-on price; $64.80 is the ex-rights price, also known as the when-issued price). the company is seeking $24 million in additional funds with a per-share subscription price equal to $40. how many shares are there currently, before the offering? (assume that the increment to the market value of the equity equals the gross proceeds from the offering.) (do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
There are 3,000,000 shares before the offering.
The tennis shoe company is willing to expand its operations and has concluded that it will need additional equity financing. The best method to achieve the necessary funds for the company is through rights offerings.
It has also accurately predicted that the stock price would fall from $68 to $64.80 due to the rights offering. The share price of $68 is known as the rights-on price, and the share price of $64.80 is known as the ex-rights price or the when-issued price. The company is seeking $24 million in additional funds with a per-share subscription price equal to $40.Before solving the problem, we must first understand the meaning of a rights offering. It is a popular method of raising capital, and it is the sale of securities to existing shareholders. These securities, usually in the form of a warrant or a right, allow shareholders to buy additional securities at a reduced price. Shareholders are given a specific amount of time to exercise their rights before they expire. To avoid diluting existing shares, companies usually offer rights to existing shareholders in proportion to the number of shares they already hold. This guarantees that current shareholders can preserve their proportional ownership stake in the company.
The increment to the market value of the equity equals the gross proceeds from the offering. This is a vital concept to understand while solving the problem. If a company issues new shares, the company's market capitalization (number of shares x market price) increases. The net result of the equity issuance is zero because the gross proceeds of the new shares sold are equal to the increase in market value.
The formula for the market capitalization before the equity financing is as follows:
Market value before = Number of shares before x Share price before
However, after the rights offering, the formula changes. Let us assume that x is the total number of shares before the offering. If y is the number of new shares issued, then x + y is the new number of shares. The subscription price of $40 must be paid to buy a new share. Therefore, the total amount of money collected from the offering will be 24 million dollars. The total amount of shares will be given by the equation y = 24,000,000/40 = 600,000 shares. Now, the new number of shares would be x + y = x + 600,000, and the new market value would be the product of the share price and the new number of shares. The following equation will give the market value of the shares after the offering:
Market value after = Share price ex-rights x (x + 600,000)
The market value before and after the rights offering is equal to the amount of funds raised in the offering. So, we can equate the two expressions to find the initial number of shares:
x Share price before = Share price ex-rights (x + 600,000)68
x = 64.8 (x + 600,000)
Solving for x:
x = 3,000,000, shares.
To know more about Rights Offering visit:
https://brainly.com/question/31082301
#SPJ11
The consumption function is given by C = 250+ 0.6(Y-T). The investment function is 1 = 100-20r. The money demand function is M (. "), - Y-201. Round answers to two places after the decimal where necessary. a. Government purchases and taxes are both 100. In the accompanying diagram, graph the IS curve for r ranging from 0 to 8 by dragging and dropping the end points to the correct locations. b. The money supply M is 2,875 and the price level Pis 5. In the accompanying diagram, graph the LM curve for r ranging from 0 to 8 by dragging and dropping the end points to the correct locations, 10 IS LM OD 9 8 7 6 1 5 4 3 2 11 700 800 900 1000 0 300 400 500 700 800 900 11.000 600 Y c. Find the equilibrium interest rate, r, and the equilibrium level of income Y. % Y = = d. Suppose that government purchases are increased from 100 to 150. How does the IS curve shift? The IS curve shifts to the by What are the new equilibrium interest rate and level of income? new new Y= e. Suppose instead that the money supply is decreased from 2,875 to 2,500. How does the LM curve shift? What are the new equilibrium interest rate and level of income? The LM curve shift to the by What are the new equilibrium interest rate and level of income? (Remember to use the first IS curve not the new one from part d). Пcw new Y 1. With the initial values for monetary and fiscal policy, suppose that the price level falls from 5 to 3. What happens? What are the new equilibrium interest rate and level of income? The LM curve shifts to the by about 383.33 What are the new equilibrium interest rate and level of income? TCWT new Y g. How do the monetary and fiscal policy changes in parts d and e impact aggregate demand? The increase in the government purchases causes aggregate demand to decrease The decrease in the money supply causes aggregate demand to O decrease. not change increase increase not change.
a. When the consumption function is given by C = 250+ 0.6(Y-T), the investment function is 1 = 100-20r, and the money demand function is M (. "), - Y-201, the IS curve is graphed as follows for r ranging from 0 to 8. 10 IS LM OD 9 8 7 6 1 5 4 3 2 11 700 800 900 1000 0 300 400 500 700 800 900 11.000 600 Y The government's purchases and taxes are both 100.
b. The LM curve is graphed in the accompanying diagram for r ranging from 0 to 8 when the money supply M is 2,875 and the price level P is 5. 10 IS LM OD 9 8 7 6 1 5 4 3 2 11 700 800 900 1000 0 300 400 500 700 800 900 11.000 600 Y
c. The equilibrium interest rate r is 3.5%, and the equilibrium level of income Y is $1,200.
d. When government purchases are increased from 100 to 150, the IS curve shifts to the right. The IS curve shifts to the right by 45. The new equilibrium interest rate is 4%, and the new equilibrium level of income is $1,260.
e. When the money supply decreases from 2,875 to 2,500, the LM curve shifts to the left. The LM curve shifts to the left by 250. The new equilibrium interest rate is 3%, and the new equilibrium level of income is $1,133.33. (Remember to use the first IS curve not the new one from part d.) f.
With the initial values for monetary and fiscal policy, suppose that the price level falls from 5 to 3. The LM curve shifts to the right by about 383.33. The new equilibrium interest rate is 4.5% and the new equilibrium level of income is $1,350. The increase in government purchases causes aggregate demand to increase, and the decrease in the money supply causes aggregate demand to decrease. Thus, the answer is: The increase in the government purchases causes aggregate demand to increase, and the decrease in the money supply causes aggregate demand to decrease.
To know more about fiscal policy refer to:
https://brainly.com/question/6583917
#SPJ11
Create a balance sheet with the following information:
Tuttle Photo Co.
Worksheet
For the Year Ended December 31, 2018
Accounts Debit Credit
Cash $15,000
Accounts Receivable 30,000
Prepaid Insurance 7,500
Office Supplies 3,200
Building 160,000
Accumulated Depreciation—Building $12,000
Equipment 75,000
Accumulated Depreciation—Equipment 8,500
Land 40,000
Accounts Payable 12,000
Salaries Payable 2,000
Unearned service revenue 25,000
Mortgage Payable 100,000
R. Tuttle, Capital 21,290
R. Tuttle, Withdrawals 23,000
Service Revenue 289,000
Salaries Expense 61,000
Depreciation Expense—Building and Equipment 6,150
Office Supplies Expense 14,040
Insurance Expense 14,000
Utilities Expense 20,900 ________
Total $469,790 $469,790
A balance sheet is a financial statement that shows the assets, liabilities, and equity of a company on a given date. To create a balance sheet with the given information, we need to first determine the missing value.
Since the total is given as $469,790, we can subtract the other two values to find the missing value. Total - Service Revenue - Utilities Expense = Missing Value$469,790 - $289,000 - $20,900 = $159,890 .
Therefore, the missing value is $159,890 and the balance sheet can be created as follows:Assets: (no information given, so assume $0) Liabilities: (no information given, so assume $0) Equity: Service Revenue $289,000 Utilities Expense $20,900 Net Income (Service Revenue - Utilities Expense) $268,100 Total Equity $428,990 Total Liabilities and Equity $428,990 + $0 = $428,990.
To know more about balance sheet, refer to the link:
https://brainly.com/question/28446946#
#SPJ11
8. Problem 5.15 (Present Value of an Annuity) eBook Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $200 per year for 16 years at 6%. b. $100 per year for 8 years at 3%. C. $200 per year for 8 years at 0%. d. Rework previous parts assuming they are annuities due. Present value of $200 per year for 16 years at 6%: $ Present value of $100 per year for 8 years at 3%: $ Present value of $200 per year for 8 years at 0%:$ 12. Problem 5.23 (Future Value for Various Compounding Periods) eBook Find the amount to which $400 will grow under each of these conditions: a. 13% compounded annually for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. b. 13% compounded semiannually for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. C. 13% compounded quarterly for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. d. 13% compounded monthly for 10 years. Do not round intermediate calculations. Round your answer to the nearest cent. e. 13% compounded daily for 10 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent f. Why does the observed pattern of FVs occur? ✓ -Select- The future values increase because as compounding periods per year increase, interest is earned on interest less frequently. The future values decrease because as compounding periods per year increase, interest is earned on interest more frequently. The future values increase because as compounding periods per year increase, interest is earned on interest more frequently. The future values increase because as compounding periods per year decrease, Interest is earned on interest more frequently. The future values decrease because as compounding periods per year decrease, interest is earned on interest more frequently.
a. The present value of $200 per year for 16 years at 6%: $2,115.69.
b. The present value of $100 per year for 8 years at 3%: $671.86.
c. The present value of $200 per year for 8 years at 0%: $1,600.
d. Reworking previous parts as annuities due does not affect the present value calculations.
Present value refers to the current worth of a future cash flow or series of cash flows, discounted at a specific interest rate. It represents the amount of money that needs to be invested now to achieve the desired future cash flows. In these examples, we calculate the present values of different annuities, which are a series of equal cash flows received or paid at regular intervals. The discounting occurs once a year, meaning the interest rate is applied annually.
To calculate the present value, we use the formula: PV = CF/(1+r)^n, where PV is the present value, CF is the cash flow, r is the interest rate, and n is the number of periods. The answers are rounded to the nearest cent.
Learn more about present value here:
https://brainly.com/question/28304447
#SPJ11
Rights offering [LO17-3] Boles Bottling Co. has issued rights to its shareholders. The subscription price is $87 and seven rights are needed along with the subscription price to buy one of the new shares. The stock is selling for $97 rights-on. a. What would be the value of one right? (Do not round Intermediate calculations and round your answer to 2 decimal places.) Value of one right b. If the stock goes ex-rights, what would the new stock price be? (Do not round Intermediate calculations and round your answer to 2 decimal places.) New stock price
a. Value of one right: The total amount required to buy a share is $87 + (7 × value of one right). Also, stock is currently selling for $97, rights-on, which implies that rights are not yet exercised. We can use this information to determine the value of one right by the following formula: $97 = $87 + 7 × value of one rightTherefore, we get: value of one right = ($97 − $87) ÷ 7 = $1.43 (rounded to two decimal places). Therefore, the value of one right is $1.43. b. New stock price: If the stock goes ex-rights, the new stock price will be determined as follows: Theoretical ex-rights price = [(number of outstanding shares × market price per share) + (number of subscription shares × subscription price per share)] ÷ (number of outstanding shares + number of subscription shares)Therefore, we get: Theoretical ex-rights price = [(number of outstanding shares × market price per share) + (number of subscription shares × subscription price per share)] ÷ (number of outstanding shares + number of subscription shares) = [(1000 × $97) + (500 × $87)] ÷ (1000 + 500) = $94.33 (rounded to two decimal places).Therefore, if the stock goes ex-rights, the new stock price would be $94.33. More than 100 words has been written.
The value of one right is approximately $1.43. The right to purchase shares of a firm at a specified exercise price for a predetermined amount of time is provided by stock rights, but it does not come with any obligations.
Given:
Subscription price = $87
Number of rights needed to buy one new share = 7
Stock price rights-on = $97
Required to calculate the value of one right =?
Value of one right = (Stock price rights-on - Subscription price) / (Number of rights needed to buy one new share)
Value of one right = ($97 - $87) / 7
= $10 / 7
≈ $1.43
Therefore, the value of one right is approximately $1.43.
Learn more about Stock Right here:
https://brainly.com/question/30157177
#SPJ4
Question 9. Not yet answered Marked out of 0.50 You want to purchase a new car, and you are willing to pay $30000. If you can invest at 10% per year and you currently have $12000, how long will it be
To determine the time required to purchase a new car, let's consider the given information: present investment amount of $12,000, the amount willing to pay for the new car of $30,000, and an interest rate of 10% per year. We can use the compound interest formula to find the future value (FV) of the investment.
Assuming the purchase of the new car will happen after a certain period of time (t years), we have FV = $12,000 × (1 + 0.10)^t.
The goal is to make FV equal to or greater than $30,000. Simplifying the equation, we get 1.1^t ≥ 2.5. Taking the natural logarithm of both sides, we find t ≥ ln(2.5)/ln(1.1).
Calculating this value, we get approximately 11.77 years.
Therefore, it will take around 11.77 years to accumulate enough funds to purchase the new car, considering the present investment amount and a 10% yearly interest rate.
Read more about interest rate
https://brainly.com/question/28236069
#SPJ11
