The correct answer is:
c) all else equal, changes in GDP may overstate the true increase in production over the past 100 years.
The statement implies that while there has been a decline in unpaid child labor on family farms and an increase in paid labor, it does not directly address the overall increase in production. Changes in GDP (Gross Domestic Product) are typically used as a measure of economic growth and production within a country. However, GDP calculations may not always accurately reflect the true increase in production due to various factors.
In this case, the shift from unpaid child labor to paid labor on family farms suggests a transition from informal, unrecorded economic activity to formal, recorded activity. This transition can result in an increase in recorded GDP. However, it does not necessarily mean that there has been no change in production or that the increase in GDP accurately represents the true increase in production.
Other factors, such as improvements in technology and productivity, changes in the quality of goods and services produced, and shifts in the composition of the economy, can also influence the accuracy of GDP as a measure of true production. Therefore, changes in GDP may overstate the true increase in production over the past 100 years, given the specific context provided in the statement.
To know more about GDP click this link-
https://brainly.com/question/31197617
#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
PeeDee Industries receives a utility bill of $500 on June 10, 2022. PeeDee pays the bill on June 30, 2022. Record the journal entries PeeDee should make on (1) June 10, 2022 when the bill is received;
The following journal entry should be made: On June 10, 2022, PeeDee Industries should record a journal entry with a debit to the Utilities Expense account for $500 and a credit to the Accounts Payable account for $500.
The journal entry to be made by PeeDee Industries on June 10, 2022, when the utility bill is received, is given below:
Date, Accounts, Debit, Credit June 10, 2022
Utilities Expense
500 Accounts
Payable 500
In accounting, utility bills are normally recorded as accounts payable when they are received. In this scenario, PeeDee Industries received a utility bill of $500 on June 10, 2022. As a result, PeeDee should credit its accounts payable account with $500.In addition, the company should debit its utility expense account with the same amount of $500.
You can learn more about the journal entry at: brainly.com/question/30499005
#SPJ11
Which of the following implies the highest form of buyer-seller interactions? A. Relationship marketing B. Transaction-based marketing C. Customer relationship management D. Internal marketing
Answer:
C. Customer relationship management
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
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
two factors that protect the economy from resource
depletion are
Sustainable development and innovation are both important for protecting the economy from resource depletion.Two factors that protect the economy from resource depletion are:
Sustainable development: Sustainable development is the use of resources in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs. This can be achieved through a number of measures, such as using renewable resources, reducing waste, and improving efficiency.
Innovation: Innovation can help to reduce the demand for resources. For example, new technologies can help to make products more efficient or to create new products that use less resources.
By using resources in a sustainable way and by innovating to reduce the demand for resources, we can help to ensure that the economy can continue to grow without putting a strain on our natural resources.
To know more about economy depletion, click here:-
https://brainly.com/question/13883394
#SPJ11
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
Calculate the interest yield on a bond with no expiration date that pays a fixed annual interest payment of $90 and is currently selling for a face value of $1,250. Provide answer to one-decimal point. Just provide the whole number without the percentage (%) sign as your answer.
The interest yield on a bond with no expiration date that pays a fixed annual interest payment of $90 and is currently selling for a face value of $1,250 is 7.2%.
The given problem can be solved by using the formula of yield to maturity. It is the discount rate that sets the present value of all the bond's cash flows equal to its market price. The yield to maturity of the bond is the required rate of return demanded by investors who buy the bond.
Yield to maturity formula:
Yield to Maturity = (Annual Interest Payment + (Face Value – Price)) ÷ ((Face Value + Price) ÷ 2)
Where;
Annual Interest Payment = $90
Face Value = $1,250
Price = $1,250
Yield to Maturity = ?
Yield to Maturity = ($90 + ($1,250 - $1,250)) ÷ (($1,250 + $1,250) ÷ 2)
Yield to Maturity = $90 ÷ $1,250
Yield to Maturity = 0.072
Multiply the answer by 100 to convert into a percentage;
0.072 × 100 = 7.2%
Therefore, the interest yield on a bond with no expiration date is 7.2%.
To know more about bond, refer to the link below:
https://brainly.com/question/31532265#
#SPJ11
Harvey Nicastro has current year employment income of $45.000. In addition, he has the following additional sources of income, gains, and losses: A loss from a business carried on as a sole proprietorship of $23.000. Interest income of $4.500. QUESTION 9 Ataxable capital gain of $13.500. An allowable capital loss of $18.200. Deductible spousal support paid of $24.000. • A rental loss of $14.500 CO Determine Harvey's minimum current year net income and indicate the amount and type of any loss carry overs for the year. Show all of your calculations. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
Harvey's minimum Net Income for Tax Purposes (NITP) for the current year is $21,600 and the amount and type of any loss carryovers that are available at the end of the year are $12,400 capital loss carryforward and $8,100 non-capital loss carryforward.
Net Income for Tax Purposes (NITP) is calculated by subtracting from the total amount of income the sum of all allowable deductions, loss carryovers and non-capital losses from other years. The detailed explanation is as follows:
Harvey's current year net employment income is $45,000.
Loss from unincorporated business = $23,000.
Spousal support paid = $24,000.
Net rental loss = $14,500.
Total income, gains and losses are:
Income = $45,000 + $4,500 + $27,000 = $76,500.
Losses = $23,000 + $36,400 + $24,000 + $14,500 = $98,900.
Now let’s calculate NITP by deducting from the total amount of income, the sum of all allowable deductions, loss carryovers and non-capital losses from other years:
Allowable deductions = $0.
Losses from other years = $0.
Non-capital losses = $0.
Sum of deductions, loss carryovers and non-capital losses = $0.
NITP = $76,500 - $0 = $76,500.
However, NITP cannot be negative, which is why Harvey's minimum Net Income for Tax Purposes (NITP) for the current year is $21,600 ($76,500 - $54,900) = $21,600.
Loss carryovers available at the end of the year:
Capital loss = ($36,400 - $27,000) = $9,400. This amount can be carried forward to future years.
Non-capital loss = ($23,000 - $500) - ($14,500 - $11,100) = $8,100. This amount can also be carried forward to future years.
Learn more about Net Income at https://brainly.com/question/28390284
#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
(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
Market for candy (30 points] Mars is the only producer of M&Ms chocolate candies. Mars produces the candies with a total cost function TC(Q) = 100, where Q represents the number of units produced. The demand curve for M&Ms candies is Q(P) = 100 - 2P. (c) [6 pts] Suppose the government decides to regulate the market for candies by placing a price cap at $20. That is, Mars cannot charge consumers more than $20/unit. What quantity does Mars select? Are consumers better off under this policy? Explain.
Mars is the only producer of M&Ms chocolate candies. It produces the candies with a total cost function TC(Q) = 100, where Q represents the number of units produced.
The demand curve for M&Ms candies is Q(P) = 100 - 2P. Suppose the government decides to regulate the market for candies by placing a price cap at $20. That is, Mars cannot charge consumers more than $20/unit.Price cap regulation in the market for candies:Mars cannot charge more than $20 per unit of the candy. Let's find out the quantity of candy that Mars will select. We need to find the point where TC(Q) = 20Q.100 = 20QQ = 100/20Q = 5 unitsThe price that Mars can charge is P = (100-Q)/2P = (100-5)/2 = $47.50The government has enforced a price cap of $20, and Mars has to sell the candy at this price. So, Mars will select the quantity where P = $20.P = (100-Q)/2$20 = (100-Q)/2Q = 30 unitsSo, Mars will select 30 units, and the price at which Mars will sell the candy will be $20. So, Mars is worse off, as its revenue is lower than what it would have been if there were no price cap. Consumers are better off, as they are paying a lower price for the candy.
Learn more about total cost function here:
https://brainly.com/question/29262808
#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
You are given the equation below. Not yet saved Marked out of 1.00 PV = C/i (1-(1/ (1+1^10)(1+i). Which of the following statements is FALSE? Select one: A. The equation will indicate the present value of an annuity of 10 payments, where the first payment is made at the beginning of the first period. B. The equation will indicate the present value of an annuity of 10 payments, where the first payment is made at the end of the first period. C. The equation will indicate the present value of an annuity of 10 payments, where the first payment is made now. D. The equation is suitable to calculate the present value of an annuity due.
The FALSE statement is option **A. The equation will indicate the present value of an annuity of 10 payments, where the first payment is made at the beginning of the first period**.
The equation given, PV = C/i (1-(1/ (1+1^10)(1+i), is used to calculate the present value of an annuity. However, the equation is specifically suitable for calculating the present value of an annuity with payments made at the end of each period, which corresponds to option B. Therefore, option A is false.
In option A, it states that the first payment is made at the beginning of the first period, which is not consistent with the equation. The equation assumes that the payments are made at the end of each period.
An annuity due is a different type of annuity where the payments are made at the beginning of each period. The equation provided is not suitable for calculating the present value of an annuity due. Therefore, option D is not applicable to the given equation.
learn more about "payment ":- https://brainly.com/question/29475683
#SPJ11
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
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 $1.43.
Learn more about Stock Right here:
https://brainly.com/question/30157177
#SPJ4
Company ABC made a massive sale in the month of December 2019. Despite the high sales, the profit was not promising. Cost of production 10,000 Sales per unit 10 (800) Wages 700 Utility 1000 Cost of transportation 200 Using the information, prepare an Income Statement Account for the month of January. 25 ISTANBUL GELISIM UNIVERSITES
The company made a loss of 3,900 during the month of December 2019. Below is the format of an Income statement account for the month of December 2019. Income Statement Account for the Month of December 2019Particulars Amount ($)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
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
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
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
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
in the contemporary world, the ability to conduct global business is made easy primarily because of...
In the contemporary world, the ability to conduct global business is made easy primarily because of advanced information technology and telecommunication systems.
These technologies have made it possible for businesses to communicate and exchange information and goods/services across borders and continents at a fast rate with minimal costs. In the past, conducting business globally was cumbersome and required a lot of resources.
It involved traveling long distances, setting up offices, and hiring personnel to represent the business in foreign countries. There was also the challenge of dealing with different time zones, languages, cultures, and currencies, which made it difficult for businesses to expand their operations beyond their home countries.
However, with the advent of advanced communication and information technology systems, businesses can now conduct global operations more efficiently. The internet, mobile phones, and social media platforms have made it possible for businesses to connect with customers, suppliers, and partners from anywhere in the world.
These technologies have also made it easier for businesses to manage their operations, track inventory, and monitor sales and financial data from remote locations. Overall, the ability to conduct global business is made easy in the contemporary world because of the advances in information technology and telecommunication systems.
These technologies have made it possible for businesses to expand their operations beyond their home countries and tap into new markets with ease.
Learn more about technology here:
https://brainly.com/question/7788080
#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
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
Greta Boyd (70), a single taxpayer, began receiving a pension of $2500 per month for life on June 1, 2006. Her 2021 Form 1099-R is hown below. Box 2a is blank. Which of the following statements is always correct?
a. $30,000 is taxable
b. Greta is subject to a 10% early distribution penalty
c. if Greta made any after-tax contributions, the tax distribution is figured using the Simplified Method Worksheet
d. None of Greta's distribution is taxable
Regarding Greta Boyd's pension distribution, the correct statement is none of Greta's distribution is taxable. Option d is correct.
Greta Boyd's pension does not provide enough details to determine the exact taxability of her distribution. The Form 1099-R, which is used to report distributions from retirement accounts, typically includes Box 2a to indicate the taxable amount. In this case, since Box 2a is blank, we cannot ascertain the specific taxable portion of Greta's distribution.
To accurately determine the taxable amount, we need more information about Greta's pension plan, any contributions she made, and the tax treatment of her pension income. Additionally, Greta's age is mentioned as 70, indicating that she is beyond the age of 59½, which would exempt her from the early distribution penalty.
Without further details about Greta's pension plan and contributions, it is not possible to definitively determine the taxability or penalties associated with her distribution.
Therefore, none of the provided options can be considered universally correct based on the given information. Option d is correct.
Learn more about pension plan https://brainly.com/question/28319433
#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
A) On a graph, use the AS-AD model from Chapter 9 to show how output and the price level will respond in the short-run and the long-run to the invention of a new production technology that is expected to increase the future marginal product of capital (assume that current productivity is unaffected by this invention). B) Answer part A again, using the IS-LM model. What will happen to output, the real interest rate, and the price level in the short-run and the long-run?
In the short run, the invention of a new production technology that increases the future marginal product of capital will result in the following changes:
Output (Y) will increase as the new technology boosts productivity. This leads to a rightward shift of the Aggregate Supply (AS) curve. The price level (P) may initially remain unchanged or experience a slight decrease due to the increased efficiency in production. This is represented by a downward shift of the Aggregate Demand (AD) curve. In the long run, the economy adjusts to the new technology and reaches a new equilibrium:
Learn more about marginal here;
https://brainly.com/question/28481234
#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
Critically analyze the impact of financial and
non-financial trade barriers for multinational coporations . in 250
words please
Financial and non-financial trade barriers can have significant impacts on multinational corporations (MNCs).
Financial trade barriers, such as tariffs and import quotas, directly affect MNCs by increasing the cost of importing goods and services, reducing their competitiveness in foreign markets. These barriers limit market access and can hinder MNCs' ability to expand their operations globally.
On the other hand, non-financial trade barriers, such as technical regulations and intellectual property rights, create compliance costs and administrative burdens for MNCs. These barriers can impede MNCs' access to foreign markets, restrict their ability to transfer technology and knowledge, and inhibit their ability to compete on a level playing field.
Financial trade barriers can lead to higher costs for MNCs, impacting their profitability and pricing strategies. Tariffs and import quotas increase the cost of imported inputs and final products, making MNCs' goods more expensive for consumers in foreign markets. This can reduce demand and market share for MNCs, affecting their revenue and profitability.
Additionally, financial trade barriers can disrupt supply chains, as MNCs may need to find alternative sources of inputs or establish local production facilities to avoid trade barriers. This adds complexity and costs to their operations.
Non-financial trade barriers pose challenges for MNCs in terms of compliance and market access. Technical regulations, such as product standards and certification requirements, can vary across countries, making it costly and time-consuming for MNCs to comply with different standards.
This can limit their ability to introduce new products or expand into new markets. Intellectual property rights protection is another important non-financial barrier. Weak intellectual property regimes in certain countries can expose MNCs to the risk of counterfeiting and unauthorized use of their innovations, impacting their competitive advantage and profitability.
To learn more about multinational corporations here brainly.com/question/14249780
#SPJ11
Assume an investor with the coefficient of risk aversion A=2.5.
To maximize his expected utility, he would choose the asset with an
expected rate of return of _______ and a standard deviation of
_____
We require the expected rate of return and the standard deviation of the assets under consideration in order to identify the asset with the highest expected utility for an investor with a coefficient of risk aversion (A) of 2.5.
The expected utility (EU) can be calculated using the formula:
EU = E(R) - (0.5 * A * σ^2)
Where:
E(R) is the expected rate of return
A is the coefficient of risk aversion
σ is the standard deviation of the asset's returns
To maximize expected utility, the investor would choose the asset with the highest expected utility.
Learn more about standard deviation, here:
https://brainly.com/question/13498201
#SPJ1
