A). True ,Policy can be effective only if planned investment reacts to changes in the interest rate. This statement is true. Policy can be defined as a course of action, a set of guidelines or principles, or a system or procedure. Fiscal policies are formulated by governments to regulate and stabilize the economy.
Monetary policies, on the other hand, are implemented by central banks to control the money supply and interest rates in the economy.Both fiscal and monetary policies aim to achieve economic growth, stability, and prosperity. Fiscal policies involve government spending and taxation while monetary policies involve controlling the money supply and interest rates. Both policies impact planned investment.Investment is a crucial determinant of economic growth. Investment is the process of spending resources in a project or venture to generate future income or profit. Planned investment is the amount of investment that firms plan to make in the future.
Interest rates, on the other hand, are the cost of borrowing or the return on saving. Interest rates affect the cost of investment and the expected return on investment.Investment decisions are influenced by interest rates. A decrease in interest rates encourages investment because it reduces the cost of borrowing and increases the expected return on investment. A rise in interest rates discourages investment because it increases the cost of borrowing and reduces the expected return on investment.
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Suppose that the economy is well described by the New-Keynesian with partial sticky prices. Assume that the zero lower bound on nominal interest rate is binding. In your answer below, keep in mind the consumers' and firms' optimal decisions that give rise to the model and explain how and why agents' decisions change. a) Bank runs generate a large increase in spreads ft in the economy. What are the effects on aggregate outcomes (Y, P, r)? How does it compare to the case where the ZLB is not binding? Use diagram to support your answer
b) The Central bank, as lender of last resort, decides to inject large amounts of money into financial institutions. Analyse the transmission mechanism of this policy action as well as its effects on output and price level.
When bank runs occur, it means that people are losing confidence in the banking system and are withdrawing their deposits. This can lead to a shortage of liquidity in the economy, which can make it difficult for firms to borrow money and invest.
As a result, output can fall and prices can rise. The effects of bank runs are more severe when the zero lower bound (ZLB) is binding. This is because the central bank cannot lower interest rates to stimulate the economy. As a result, the only way for the central bank to increase aggregate demand is to increase the money supply. However, this can lead to inflation. The effects of this policy action on output and prices will depend on a number of factors, including the size of the money injection, the state of the economy, and the expectations of economic agents.
In general, however, we can expect to see an increase in output and prices when the central bank injects large amounts of money into financial institutions.
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Explain why the present value of a cash flow stream, and the asset associated therewith; fluctuate in value with the level of interest rates in the capital markets.
List and explain the points of financial impact on a company if it raises the credit standards required of its customers who utilized trade credit offered by the company.
Define Weighted Average Cost of Capital and explain why a company must earn at least its Weighted Average Cost of Capital on new investments. What are the financial implications if it does not?
The present value of a cash flow stream and the associated asset fluctuate with interest rates in the capital markets due to the concept of discounting. When interest rates rise, the discount rate used to calculate the present value increases, leading to a lower present value of future cash flows. This is because higher interest rates imply higher opportunity costs and a higher required rate of return. As a result, the value of the asset and the cash flow stream decreases. Conversely, when interest rates decline, the present value increases, as the discount rate decreases, making future cash flows more valuable.
If a company raises the credit standards required of its customers who use trade credit, it can have several financial impacts. Firstly, it may lead to a reduction in sales, as some customers may not meet the higher credit standards and choose not to purchase from the company. This can result in decreased revenue and potentially lower profits. Secondly, the company may experience an increase in bad debts if customers who were previously granted credit fail to meet the new standards and default on their payments. This can negatively impact cash flow and profitability. Lastly, the company may need to invest more resources in credit assessment and monitoring processes, leading to increased administrative costs.
The Weighted Average Cost of Capital (WACC) is a financial metric that represents the average cost of financing a company's operations through a combination of equity and debt. It considers the cost of equity and the cost of debt, weighted by their respective proportions in the company's capital structure. A company must earn at least its WACC on new investments to ensure that the returns generated exceed the cost of financing. If a company fails to meet its WACC on new investments, it indicates that the project is not generating sufficient returns to cover the cost of capital. This can result in lower profitability, reduced shareholder value, and potentially erode the company's overall financial performance.
If a company does not earn at least its WACC on new investments, it implies that the company is not generating sufficient returns to meet the expectations of its investors and creditors. This can lead to a decline in the company's stock price, reduced access to capital markets, and increased difficulty in raising funds for future projects. Additionally, if the company consistently fails to earn its WACC, it may signal poor investment decisions or an inefficient capital structure, which can impact the company's credit rating and increase its cost of borrowing. Ultimately, failing to earn the WACC can have negative financial implications and hinder the company's growth and long-term sustainability.
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Elly purchased 44 shares of Oracle Corp. in June 2019 at $56.12 per share. By June 2020, Oracle was worth $54.40 and had paid $0.24 per share in dividends 4 times. What was Elly's total dollar return on her investment in Oracle?
Multiple Choice
a. -$33.44
b. -$65.12
c. -$75.68
d. -$0.76
e. -$65.12
Elly's total dollar return on her investment in Oracle is -$33.44.
To calculate Elly's total dollar return on her investment in Oracle, we need to consider both the capital gain/loss and the dividends received.
Capital gain/loss:
The capital gain/loss per share can be calculated as the difference between the selling price and the purchase price:
Capital gain/loss per share = Selling price - Purchase price
= $54.40 - $56.12
= -$1.72 (negative value indicates a loss)
Total capital gain/loss = Capital gain/loss per share * Number of shares
= -$1.72 * 44
= -$75.68
Dividends received:
Total dividends received = Dividend per share * Number of shares * Number of dividend payments
= $0.24 * 44 * 4
= $42.24
Total dollar return = Total capital gain/loss + Total dividends received
= -$75.68 + $42.24
= -$33.44
Therefore, Elly's total dollar return on her investment in Oracle is -$33.44.
The correct answer is option a. -$33.44.
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when the quick ratios is more than the industry average at 1.76 quick ratio and the the industry average is 1.72. explain the company position in this case and the reason
When a company's quick ratio is greater than the industry average, it indicates that the company is in a good financial position. In this case, with a quick ratio of 1.76 compared to the industry average of 1.72, the company's liquidity position is stronger than that of its peers.
The quick ratio is a measure of a company's liquidity position. It calculates the ability of a company to meet its short-term financial obligations using its most liquid assets. In other words, it assesses how well a company can pay its immediate liabilities with its quick assets. The quick assets of a company include cash, accounts receivable, and marketable securities. To sum it up, a company with a quick ratio greater than the industry average is in a good position to meet its short-term financial obligations. A quick ratio greater than 1 indicates that a company can cover its short-term liabilities without selling off its inventory. Therefore, the company can have more cash on hand to invest in its operations, pay off debts, or even distribute to its shareholders.
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When the cost of an item increases by 10%, the average inventory of the item
a.
Decreases by more than 10%
b.
Increases by 10%
c.
Decreases by less than 10%
d.
Decreases by 10%
When the cost of an item increases by 10%, the average inventory of the item decreases by less than 10%. The correct answer is (c).
When the cost of an item increases by 10%, the average inventory of the item will decrease by a smaller percentage than the cost increase. This is because the average inventory is typically valued at the original cost of the items in stock, not the increased cost. Therefore, the average inventory value will not increase by the full 10% cost increase, resulting in a decrease that is less than 10%.
As a result, the average inventory decreases, but the decrease is less than the 10% cost increase.
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Qualitative approaches is a decision-making approach that frequently seeks to obtain a mathematically optimal solution
A. T
B. F
Service operations tend to be more labor-intensive than manufacturing.
A. T
B. F
The statement, "Qualitative approaches is a decision-making approach that frequently seeks to obtain a mathematically optimal solution" is False and the statement "Service operations tend to be more labor-intensive than manufacturing" is True.
Qualitative approaches refer to research methods that collect non-numerical data, such as descriptions and observations. This approach is ideal for situations where in-depth knowledge of the issue is required as well as when the aim is to understand the underlying causes of behavior. Qualitative research often seeks to gather data about human behavior and understanding of the world, as well as social and cultural practices, in order to understand how they impact and influence individuals' behaviors. However, unlike quantitative approaches, the aim is not to obtain a mathematically optimal solution. Hence, the statement is false.
Service operations involve a series of activities that lead to the delivery of a service. They tend to be more labor-intensive than manufacturing. This is because in manufacturing, machines take on most of the work, whereas in services, human resources play a crucial role in delivering the service. Hence, the statement is true.
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____________ typically advocate for social justice, affirmative action, and a market economy tempered by government intervention.
The individuals or organizations that typically advocate for social justice, affirmative action, and a market economy tempered by government intervention are known as progressives.
Progressivism is a political and social ideology that emerged in the United States in the late 19th century. Progressives believe in reforming society by making it more fair, just, and equitable. They believe that government has a role to play in promoting social welfare, regulating the economy, and protecting the environment.Progressives advocate for social justice, which means promoting fairness and equal opportunity for all members of society. They believe that everyone should have access to education, healthcare, and basic necessities of life, regardless of their race, gender, or social status. They also support affirmative action, which is a policy that promotes diversity and inclusion by giving preference to underrepresented groups in education, employment, and other areas.Progressives believe that government has a role to play in regulating the economy to ensure that it serves the needs of all people, not just the wealthy and powerful. They support a market economy, but one that is tempered by government intervention to prevent abuses of power and protect consumers and workers. For example, they may support regulations on banks, corporations, and other entities to prevent them from engaging in practices that harm the public interest.In conclusion, progressives are individuals or organizations that advocate for social justice, affirmative action, and a market economy tempered by government intervention. They believe that government has a role to play in promoting the common good and creating a fair and just society.
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Sketch a plausible production possibility frontier that shows various combinations of cucumbers and tomatoes a farmer can produce with the fixed amount of resources available to him. Label your diagram well (for example, your axes), but you don't have to use any specific numbers. In addition, in your diagram, show a production efficient point A and a production inefficient point B.
In a production possibility frontier (PPF) diagram, the axes represent the quantities of two goods that can be produced with a fixed amount of resources. In this case, let's consider cucumbers and tomatoes as the two goods.
The horizontal axis represents the quantity of cucumbers, and the vertical axis represents the quantity of tomatoes. The PPF curve shows the various combinations of cucumbers and tomatoes that the farmer can produce given the limited resources.
Point A on the PPF curve represents a production efficient point, where the farmer is utilizing the available resources fully and efficiently to produce a combination of cucumbers and tomatoes. This point lies on the curve itself.
Point B represents a production inefficient point, where the farmer is not utilizing the available resources fully or efficiently. Point B lies inside the PPF curve, indicating that the farmer is not maximizing the production of either cucumbers or tomatoes given the available resources.
It's important to note that the specific shape and slope of the PPF curve would depend on the trade-off between the production of cucumbers and tomatoes. The curve may be concave, indicating increasing opportunity costs, as more of one good is produced at the expense of the other.
Overall, the PPF diagram visually demonstrates the concept of production efficiency and inefficiency and helps illustrate the trade-offs faced by the farmer in allocating resources between the production of cucumbers and tomatoes.
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What is the difference between Search Engine Optimisation (SEO) and Search Engine Marketing (SEM)? A) SEO creates free organic search results, and SEM creates paid advertising search results B) SEO creates paid advertising search results, and SEM creates free organic search results C) There is no difference - both SEO and SEM create free organic search results D) There is no difference - both SEO and SEM create paid advertising search results
The option is A) SEO creates free organic search results, and SEM creates paid advertising search results.
SEO (Search Engine Optimization) is the process of optimizing web pages in order to rank higher in search engine results pages (SERPs). The optimization process is carried out to increase the amount of organic (unpaid) traffic that comes to the website. SEO is an important aspect of online marketing because search engines are the primary means of discovering new websites and information on the internet.
Search Engine Marketing (SEM) is a process of promoting websites through paid advertising campaigns that appear on search engine results pages (SERPs). In this process, companies bid on specific keywords and pay for each click that their ads receive. SEM is an effective way to attract visitors to a website quickly and increase the website's visibility. SEM is also called paid search or pay-per-click (PPC) advertising.
In conclusion, the main difference between SEO and SEM is that SEO creates free organic search results, and SEM creates paid advertising search results.
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how changpeng zhao is special in his career and how did he affected people around him?
Changpeng Zhao, popularly known as CZ, is a renowned entrepreneur and innovator who has impacted the world of cryptocurrency. He is the CEO of Binance, one of the world's leading cryptocurrency exchange platforms that allow users to trade digital currencies.CZ's vision of creating a cryptocurrency exchange platform that would provide its users with top-notch security and high-speed transactions has contributed to the company's success.
Binance has risen to be among the world's largest cryptocurrency exchanges, which has brought CZ into the limelight. His career has been marked by several accolades, including being featured on the Forbes List of Billionaires in 2021.CZ has also impacted those around him, primarily through his philanthropic activities.
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a(n) drawing is a final drawing prepared by an ae firm and turned over to the building owner at the conclusion of the project to accurately reflect the completed project
The term that fits in the blank in the given statement is "as-built".Explanation:A set of as-built drawings is a type of final drawing that is typically prepared by an AE firm and given to the building owner at the end of the project to accurately reflect the finished project.
These as-built drawings may show the current locations and details of utilities and equipment or systems that were installed during the construction process. This is essential for the future maintenance, renovation, or expansion of the building.The term "as-built" refers to a set of drawings that represent a finished project's actual conditions. The drawings are prepared at the end of the construction process to document the actual changes made during construction.
The as-built drawing is important because it provides an accurate picture of the building or project and is frequently used for future renovation or addition projects.The other terms like "rough", "preliminary" and "conceptual" are the type of drawings that occur during the early stages of a project. These are not final drawings. The term that fits in the blank in the given statement is "as-built".Explanation:A set of as-built drawings is a type of final drawing that is typically prepared by an AE firm and given to the building owner at the end of the project to accurately reflect the finished project.
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By definition, exports are a. goods produced and consumed domestically. produced and consumed abroad. Oc. goods produced domestically and sold abroad. Od. goods produced abroad
“By definition, exports are a. goods produced and consumed domestically. produced and consumed abroad. Oc. goods produced domestically and sold abroad. Od. goods produced abroad” is “goods produced domestically and sold abroad.” { option (c)}
Exports are goods and services that are produced domestically, but they are sold to foreign countries. Countries engage in international trade to take advantage of the differences in resources, labor costs, and capital costs between countries. This concept is known as the principle of comparative advantage. It is essential for economic growth and stability. Countries that have a large number of exports have a positive trade balance and are able to create jobs for their citizens. On the other hand, countries that are reliant on imports have a negative trade balance and are at risk of running into debt.
Therefore, it can be concluded that exports are goods produced domestically and sold abroad.
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Using an online job search such as linked.com, charityvillage.com or indeed.com, find a current recruitment ad for a Board Director role (Board of Director or Board Member are other terms that might be used). Make sure the position is for the board of directors and not a management job with "director" in the job title. The board position could be volunteer or paid. 1. Read the ad carefully to compare the eligibility, competencies, and roles and responsibilities with what you studied in Module Five on corporate governance. a. Describe two ways in which the ad aligns with module five content and explain why you think it is a good example of the course content. b. Identify one thing that is missing from the ad that would be important to include to distinguish the role of the board from the role of management. 2. Explain, in your own words, why this organization needs a board of directors. (Note: This should be the main part of your answer so provide a complete explanation to show you understand governance.) 3. Provide a link to the ad.
1a. The following are two ways in which the Board Director role aligns with the Module Five content.
The board is responsible for defining the organization's mission, values, and direction. This aligns with the principles of corporate governance in which the board is responsible for developing a long-term vision and strategy for the organization.b. The board is responsible for managing risk. One of the key functions of the board is to ensure that the organization's activities are consistent with its goals while also mitigating potential risks.2. One thing that is missing from the ad that would be important to include to distinguish the role of the board from the role of management is the board's responsibility for overseeing management. It is crucial to note the board's role in setting goals and monitoring performance since it is distinct from the role of management, which is focused on implementing and executing the organization's strategy. 3. For the effective governance of any organization, there is a need for a board of directors. A board of directors is a group of people who are responsible for the strategic and operational decisions of a company. They oversee the performance of the company's management, hire and fire senior executives, approve budgets, and make key decisions that affect the company's direction. They work in the best interests of the company's stakeholders, including customers, employees, shareholders, and the community. Link: www.indeed.com/viewjobjk=324f09ac7f8c5e57&tk=1fdntc4u9n3kt801&from=serp&vjs=3
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12. Consider the following rules: IF a = 10 R1 AND b = 15 THEN c = 20 IF b = 15 R2 AND a = 10 THEN c = 20 Are these two rules redundant? Why? Which rule is made redundant by the other?
The given rules are not redundant. The reason being both the rules are considered as different rules because of the different order of the condition of the rules. None of the rules is made redundant by the other.
Redundancy occurs when two or more rules have exactly the same conditions or they generate the same output. However, that is not the case in the given scenario. Hence, neither of the rules is made redundant by the other. Explanation:Redundancy in rules is very important to detect and remove.
It is because redundant rules take unnecessary memory space, and they also affect the performance of the system. As per the given rules, the condition of rule R1 is "IF a = 10 AND b = 15
THEN c = 20", whereas the condition of rule R2 is "IF b = 15 AND a = 10 THEN c = 20".
Therefore, the order of conditions in the rules is different, making both the rules different from each other.
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the mean age of graduate students at a university is at most 31 years with a standard deviation of two years. a random sample of 15 graduate students is taken. the sample mean is 32 years and the sample standard deviation is three years. are the data significant at the 1% level? the p-value is 0.0264. state the null and alternative hypotheses and interpret the p-value.
As given that the sample size is less than 30 and the population standard deviation is unknown, we will use t-distribution for the calculation.The null hypothesis H0: μ ≤ 31The alternate hypothesis H1: μ > 31Where μ is the population mean.The given significance level α = 1% = 0.01Now, to find whether the data is significant at the 1% level or not, we will use the t-test.
To find out whether the given data is significant at the 1% level or not, we first state the null hypothesis H0 and the alternate hypothesis H1. The null hypothesis states that the population mean μ is at most 31 years. The alternate hypothesis states that the population mean μ is greater than 31 years.The t-test is performed as the sample size is less than 30 and the population standard deviation is unknown. The calculated value of t is 1.9365. The value of t from the t-distribution table at df = 14 and α = 0.01 is 2.9773. The calculated value of t is less than the table value of t. Hence, we fail to reject the null hypothesis.We can also interpret the results using the p-value. The p-value is calculated to be 0.0264. The p-value is less than the given significance level of α = 0.01. Therefore, we reject the alternative hypothesis and conclude that the sample does not provide enough evidence to support the claim that the mean age of graduate students at a university is more than 31 years old.
Thus, the data is not significant at the 1% level.
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how would the flow of communication in personal selling be categorized? group of answer choices it is easily duplicated through other channels. it entails a one-way flow of information from seller to buyer. the interaction is direct and two-way. there is often a delay in feedback from the buyer.
The flow of communication in personal selling can be categorized into direct and two-way interactions. This flow of communication is personal because it requires face-to-face interaction between the buyer and the seller. The correct answer is direct and two-way interactions.
Personal selling is a promotional activity that involves direct interaction between the seller and the prospective customer. It is different from other promotional activities, such as advertising, because it involves personal contact between the buyer and the seller. Personal selling is often used in situations where the product or service being sold is complex or requires a high level of customer involvement. It is also used in situations where the customer needs to be educated about the product or service.
The flow of communication in personal selling can be categorized as follows:
Direct and two-way interaction: The flow of communication in personal selling is direct because it involves face-to-face interaction between the buyer and the seller. It is two-way because it involves an exchange of information between the two parties.
Delay in feedback from the buyer: There is often a delay in feedback from the buyer in personal selling. This is because the buyer needs time to process the information provided by the seller.
The one-way flow of information from seller to buyer: This type of flow of communication is not used in personal selling because it is not effective in promoting the product or service being sold.
Easily duplicated through other channels: Personal selling is not easily duplicated through other channels because it involves personal interaction between the buyer and the seller.
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What do you understand by the term "state monopoly
capitalist ?" Discuss the weaknesses and strengths of the state
monopoly capitalism.
Note: It should be 5-6 pages with Atleast 8
references
State monopoly capitalism refers to a situation where the government has control over the capitalist system, and the state's decisions regarding the economy become the most significant determinant of economic growth and development.
This economic system occurs when a government has a monopoly over essential goods and services that are critical to economic growth, such as utilities, transport, communication, and raw materials.
The state, in such a system, is the principal actor in the economy, making decisions on behalf of the capitalist class that controls production, distribution, and exchange.
Strengths of state monopoly capitalism
1. Control over the market
One of the benefits of state monopoly capitalism is that the government has complete control over the market and the economy. The state is in charge of the production and distribution of goods and services, which allows it to intervene in any market crisis, increase or decrease prices, and regulate the supply and demand of goods.
2. Increased Government Revenues
State monopoly capitalism leads to an increase in government revenues. Since the government has control over the economy, it can set prices and increase taxes on goods and services. This results in a more robust and stable economy with a steady flow of revenues to the state.
Weaknesses of state monopoly capitalism
1. Corruption and inefficiency
State monopoly capitalism is associated with corruption, inefficiency, and bureaucracy. The government's monopoly over the economy creates a lack of competition, which means that there are fewer incentives for innovation, quality control, and cost-cutting measures. This leads to inefficiencies, delays, and waste, which results in poor quality goods and services and higher prices.
2. Reduction of personal freedoms
State monopoly capitalism can lead to a reduction of personal freedoms. When the government controls the economy, it can impose restrictions on individual liberties, such as the freedom of speech and assembly. The government's control over the economy can also lead to a reduction of innovation and creativity since the government imposes specific guidelines and procedures.
In conclusion, state monopoly capitalism is an economic system where the state has control over the economy. It is an economic system that has its strengths and weaknesses. However, as much as the system may have its benefits, the weaknesses are greater than the benefits.
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Price of cereal increases by 10% and the quantity demanded falls by 20%. Calculate the elasticity. Is it elastic or inelastic?
Price of insulin increases by 10% and the quantity of insulin remains same. Calculate the elasticity. What will be the shape of the demand curve?
Price of cereal increases by 10% and the quantity demanded falls by 20%:Here, the price elasticity of demand (Ep) can be calculated as: Ep = percentage change in quantity demanded / percentage change in price Percentage change in quantity demanded = (20 / 100) = 0.2 (20% decrease)Percentage change in price = (10 / 100) = 0.1 (10% increase).
Therefore, Ep = 0.2 / 0.1 = 2This value of Ep > 1, hence the demand for cereal is elastic. An Elastic Demand is a situation where the change in price will cause a relatively larger change in quantity demanded. In this case, when the price of cereal increases by 10% and the quantity demanded falls by 20%, we can see that the elasticity is 2. The fact that it is greater than 1 means that the cereal has an elastic demand.
This implies that the customers are sensitive to the price changes and any little change in price will cause a larger change in the quantity demanded. Price of insulin increases by 10% and the quantity of insulin remains the same: Here, the price elasticity of demand (Ep) can be calculated as: Ep = percentage change in quantity demanded / percentage change in price Percentage change in quantity demanded = 0 (remains same)Percentage change in price = (10 / 100) = 0.1 (10% increase)Therefore, Ep = 0 / 0.1 = 0This value of Ep = 0, hence the demand for insulin is perfectly inelastic. An Inelastic Demand is a situation where the change in price will cause a relatively smaller change in quantity demanded. When the price of insulin increases by 10% and the quantity of insulin remains the same, we can see that the elasticity is 0. The fact that it is equal to 0 means that the insulin has a perfectly inelastic demand. This implies that the customers are not sensitive to the price changes and any change in price will not cause any change in the quantity demanded. The demand curve is vertical because any change in the price will not cause any change in the quantity demanded.
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Alberta Inc. (Al) pays an annual dividend of $1.41 per share. If Al's stock is currently trading at $25.75 per share, and Al's expected growth rate is 6%, what is Al's expected retum? ROUND YOUR ANSWER TO AT LEAST TWO DECIMAL PLACES WITHOUT ANY SIGNS
The expected return of Alberta Inc. (Al) for the dividend of $1.41, stock price $25.75 and growth rate of 6% is equal to 0.1149.
Dividend = $1.41
Stock Price = $25.75
Growth Rate = 6% = 0.06
To calculate the expected return for Alberta Inc. (Al),
we can use the dividend discount model (DDM) formula, assuming a constant growth rate.
Expected Return = Dividend / Stock Price + Growth Rate
⇒Expected Return = $1.41 / $25.75 + 0.06
⇒Expected Return ≈ 0.0549 + 0.06
⇒Expected Return ≈ 0.1149
Therefore, Alberta Inc. (Al) have expected return of approximately 11.49%.
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An employee earns $20 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $29,000. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $322.
a. Determine the gross pay for the week.
$
If applicable, round your final answer to two decimal places.
b. Determine the net pay for the week.
$
Total gross pay for the week is $1,400 and and the net pay is $973.
Gross pay is the total compensation an employee receives before any withholdings or deductions are made, It represents the total income that an individual receives from their employment including all regular pay or overtime pay, bonuses, commissions and other forms of income.
a. Regular pay for 40 hours = $20/hour × 40 hours = $800
Overtime pay for 20 hours = $20/hour × 1.5 × 20 hours = $600
Total gross pay for the week: $800 + $600 = $1,400
b. Social Security tax: 6.0% of $1,400 = $84
Medicare tax: 1.5% of $1,400 = $21
Federal income tax withheld = $322
Net pay for the week = $1,400 - $84 - $21 - $322 = $973
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Assume that due to a sudden change in preferences, there is a temporary increase in the demand for money in Australia that increases R$ and appreciates Australian Dollar against the Euro. As a result, the aggregate output in Australia falls below output at full employment. What, according to the DD-AA model, is the best policy response to increase aggregate output (in the short-run) to the full employment level without causing large changes in the exchange rate? Assume that neither the demand shock nor the temporary change in policy has any effect on expectations about future exchange rates. Assume that any temporary policy changes affect output immediately. Finally, assume Australia has a floating exchange rate regime. A. Australian government pursues a temporary expansionary fiscal policy B. Australian government pursues a temporary contractionary fiscal policy C. The Reserve Bank of Australia pursues a temporary expansionary monetary policy
D. The Reserve Bank of Australia pursues a temporary contractionary monetary policy E. It is optimal not to react to temporary changes in money demand
According to the DD-AA model, the best policy response to increase aggregate output in the short run to the full employment level without causing large changes in the exchange rate, considering the given scenario, would be:
C. The Reserve Bank of Australia pursues a temporary expansionary monetary policy.
In this situation, the temporary increase in the demand for money has appreciated the Australian Dollar and led to a decrease in aggregate output below the full employment level. To increase aggregate output without causing large changes in the exchange rate, the Reserve Bank of Australia can pursue an expansionary monetary policy.
By implementing expansionary monetary policy, the central bank can lower interest rates and increase the money supply. This would encourage borrowing and investment, stimulate consumption, and boost aggregate demand. The increased spending and investment can help to raise aggregate output towards the full employment level.
The advantage of pursuing expansionary monetary policy in this case is that it can target domestic economic conditions specifically, without directly affecting the exchange rate. By maintaining a floating exchange rate regime, the central bank allows the exchange rate to adjust to market forces while focusing on domestic output stabilization.
It is important to note that fiscal policy, as mentioned in option A, could also be used to address the situation. However, fiscal policy may have larger and more direct effects on the exchange rate, while monetary policy can be implemented more flexibly and quickly to stabilize output without causing significant exchange rate movements.
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1- What are Porter's "five forces"?
2- Use the five forces model to illustrate competition in the
newspaper industry.
Are some competitors better positioned to withstand this
environment than others?
Porter's "five forces" is a framework developed by Michael Porter to analyze and assess the competitive forces in an industry.
The five forces are as follows:
a) Threat of new entrants: The ease with which new competitors can enter the industry and potentially disrupt the existing market share.
b) Bargaining power of suppliers: The ability of suppliers to dictate terms, prices, and quality of inputs to the industry.
c) Bargaining power of buyers: The influence of buyers in negotiating better prices, terms, and conditions from the industry.
d) Threat of substitute products or services: The availability of alternative products or services that can fulfill the same customer needs.
e) Intensity of competitive rivalry: The level of competition among existing firms in the industry.
Applying the five forces model to the newspaper industry:
a) Threat of new entrants: The newspaper industry has relatively low barriers to entry, as digital technologies have made it easier for new players to distribute news content online. However, established newspapers with strong brand recognition and loyal readership may have an advantage.
b) Bargaining power of suppliers: The suppliers in the newspaper industry include journalists, writers, and printing companies. The bargaining power of suppliers may be relatively low as there are many skilled individuals and printing options available.
c) Bargaining power of buyers: The buyers in the newspaper industry are the readers and advertisers. With the rise of digital media, readers have more options and can easily switch to other sources of news. Advertisers also have more platforms to choose from, reducing their dependence on newspapers.
d) Threat of substitute products or services: The newspaper industry faces significant threats from online news sources, social media, and other digital platforms. These alternatives provide real-time news updates, interactivity, and personalized content, which can be more appealing to certain segments of readers.
e) Intensity of competitive rivalry: The newspaper industry is highly competitive, with numerous newspapers vying for readers and advertisers. This competition has intensified with the digital transformation of the industry.
Regarding whether some competitors are better positioned to withstand this environment than others, it depends on various factors such as brand reputation, digital capabilities, financial resources, and the ability to adapt to changing consumer preferences. Established newspapers that have successfully transitioned to digital platforms, built strong online presence, and developed innovative revenue models may be better positioned to withstand the challenges compared to traditional print-centric newspapers that have been slow to adapt.
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The volatility of a non-dividend-paying asset is currently 6% per annum. The price of this asset is currently £100.96 and the risk-free interest rate is 1.76% per annum with continuous compounding. Options on this asset are offered in the market. The underlying asset can be assumed to be infinite lived. Consider a European call option with a strike price equal to £99.3 and remaining time to maturity equal to 3 months. Using the continuous-time framework of Black-Scholes and Merton compute the risk-neutral probability of this option being exercised at maturity. Express your result as a number in the range from 0 to 1 and round your result to the fourth decimal.
The volatility of a non-dividend-paying asset is 6% per annum. The current price of this asset is £100.96, and the risk-free interest rate is 1.76% per annum, with continuous compounding. The underlying asset can be considered to be infinite lived. The risk-neutral probability of this option being exercised at maturity is 0.7059
Consider a European call option with a strike price of £99.3 and a remaining maturity of 3 months. We can use the Black-Scholes model to calculate the value of the call option. The Black-Scholes model is the cumulative distribution function (CDF) of the standard normal distribution.
The option is exercised only if S > K.The risk-neutral probability of the option being exercised can be determined by calculating mathcal {N}(d_2).
Now, we'll use the CDF of the standard normal distribution to calculate mathcal {N} (d_2) mathcal {N} (d_2) = Phi(d_2) = Phi(0.5433) = 0.7059 Therefore, the risk-neutral probability of this option being exercised at maturity is 0.7059 (rounded to four decimal places).
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Suppose that a new technology increases MPL but does not change anything else (w, r, MPK, etc.).
A) How will a firm adjust K and L?
B) As the firm adjusts K and L, what will happen to MPK and MPL?
The correct answer is the firm will continue adjusting K and L until the marginal product of labour and capital is equal to the cost of labour and capital.
A) When MPL is increased due to new technology, the firm will increase its labour and reduce capital. With increased MPL, the marginal revenue product of labour (MRPL) rises. This in turn leads to an increase in the demand for labor, causing a rightward shift in the labor demand curve. The price of labor (wage rate) goes up and the price of capital (interest rate) goes down. This happens because the cost of production reduces, which leads to an increase in the firm's profits.
B)As the firm adjusts K and L, the marginal product of labour and capital (MPL and MPK) changes in opposite directions. As the firm increases the amount of labour, MPL increases because the firm can now produce more output with the same amount of capital. Conversely, when the firm reduces the amount of capital, the marginal product of capital (MPK) declines because the firm is using more and more labour to produce the same amount of output. The law of diminishing returns applies here, and as a result, as the firm continues to add labour while reducing capital, MPL eventually falls. Similarly, as the firm increases capital while reducing labour, MPK increases and then eventually falls. The firm will continue adjusting K and L until the marginal product of labour and capital is equal to the cost of labour and capital.
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15. Orgaizational barriers to effective communication consist of: A. Conflicting signals B. Status differences C. Poor listening skilks D. Reclutance to communicate 16. Departmentalization is job grouping by: A. Customer, product, functional, work teams B. Customer, product, location, work teams C. Customer, product, location, functional D. Customer, location, functional, work teams. 17. One of individual skill to overcome barriers to communication is: A. Understand the richness of media B. Regulate information flow. c. Follow up D. Encourage two way communication 18. Stages of group development are: A. Forming, storming, norming, standarsizing B. Forming, storming, norming, performing C. Forming, storming, performing, determining D. Forming, storming, standardizing, determining 19. Standing plan excludes the following plan: A. Polciy B. Standard operating procedure C. Rules and regulations. D. Program 20. Emotional Intelligence excludes: A. Self-awareness. B. Managing emotions C. Empathy D. Self-efficacy
The organizational barriers to effective communication consist of conflicting signals, status differences, poor listening skills, and reluctance to communicate.
Conflicting signals occur when different messages or signals are sent, leading to confusion. Status differences refer to the hierarchical positions within an organization, which can hinder open communication. Poor listening skills hinder understanding and effective communication. Reluctance to communicate arises when individuals are hesitant or unwilling to express their thoughts or ideas openly. Overcoming these barriers requires addressing and resolving conflicting signals, promoting a culture of open communication regardless of status, improving listening skills, and encouraging a supportive environment for communication.
16. Departmentalization involves job grouping by customer, product, location, and work teams.
Explanation: Departmentalization refers to the process of dividing an organization into different departments or units. It can be done based on various criteria. In this case, job grouping is done according to customer segments, products or services offered, physical location or geography, and work teams or functional areas. This helps to streamline operations, improve coordination within each department, and enhance efficiency in delivering products or services to specific customer groups.
17. One individual skill to overcome communication barriers is encouraging two-way communication.
Encouraging two-way communication means promoting a dialogue where both the sender and the receiver actively participate in the exchange of information or ideas. This skill helps overcome communication barriers by fostering mutual understanding, clarifying misunderstandings, and ensuring that both parties have an opportunity to express themselves. It enables effective feedback, encourages active listening, and creates a collaborative environment that promotes better communication and problem-solving.
18. The stages of group development are forming, storming, norming, and performing.
The stages of group development describe the typical progression that groups go through when working together. Forming is the initial stage where members come together, establish goals, and get acquainted. Storming is characterized by conflicts, differences of opinion, and power struggles within the group. Norming involves the development of norms, roles, and cohesion among group members. Performing is the stage where the group functions at its most productive level, with clear roles, effective communication, and successful collaboration towards achieving goals.
19. Standing plans exclude the following plan: Program.
Standing plans refer to pre-established guidelines or procedures that provide ongoing guidance for routine and repetitive activities. They include policies, standard operating procedures (SOPs), and rules and regulations. However, programs are not typically considered standing plans. Programs are generally specific, time-bound initiatives or projects designed to achieve a particular objective and are distinct from the ongoing operational guidelines provided by standing plans.
20. Emotional Intelligence excludes self-efficacy.
Emotional Intelligence (EI) refers to the ability to recognize, understand, and manage one's own emotions as well as the emotions of others. It comprises several components, including self-awareness, managing emotions, and empathy. However, self-efficacy, which relates to an individual's belief in their own capabilities to successfully execute specific tasks or achieve goals, is not a component of emotional intelligence. Self-efficacy focuses more on self-confidence and competence in task performance rather than emotional awareness and interpersonal skills.
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A surplus in the balance of trade or in the balance on current account (assume they're the same for this question) implies that The country's volume of employment is expanding. The country is lending to foreigners more than foreigners are lending to it. The country is spending on goods and services more than it is earning from producing them. The country is accumulating reserves of foreign currency.
A surplus in the balance of trade or in the balance on the current account implies that the country is earning more from exporting goods and services than it is spending on importing them.
The balance of trade or the balance on the current account is a measure of a country's trade in goods and services with the rest of the world. It takes into account the value of exports and imports.
A surplus in the balance of trade or on the current account occurs when the value of exports exceeds the value of imports. This means that the country is earning more from selling its goods and services to other countries than it is spending on purchasing goods and services from abroad.
The options provided are as follows:
A. The country's volume of employment is expanding.
B. The country is lending to foreigners more than foreigners are lending to it.
C. The country is spending on goods and services more than it is earning from producing them.
D. The country is accumulating reserves of foreign currency.
Based on the explanation above, option C is the correct answer. A surplus in the balance of trade or on the current account indicates that the country is spending less on imports than it is earning from exports, resulting in a surplus of funds. This surplus can be used to accumulate reserves of foreign currency, which is option D.
In summary, a surplus in the balance of trade or on the current account implies that the country is earning more from exporting goods and services than it is spending on importing them, leading to an accumulation of reserves of foreign currency.
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General Lithograph Corporation uses no preferred stock. Their capital structure uses 26% debt (hint: the rest is equity). Their marginal tax rate is 37.57%. Their before-tax cost of debt is 4.36%. General Lithograph's stock is expected to pay a dividend per share of $1.49 next year, and their dividend is expected to grow at 2.09% over the long-run. Their stock currently trades at $79.92 per share. What is General Lithograph's weighted average cost of capital (WACC)?
To calculate General Lithograph Corporation's weighted average cost of capital (WACC), we need to determine the weights of debt and equity in their capital structure.
Given:
Debt ratio: 26% (equity ratio will be 100% - 26% = 74%)
Before-tax cost of debt: 4.36%
Marginal tax rate: 37.57%
Dividend per share next year: $1.49
Dividend growth rate: 2.09%
Stock price: $79.92 per share
First, let's calculate the after-tax cost of debt:
After-tax cost of debt = Before-tax cost of debt × (1 - Tax rate)
After-tax cost of debt = 4.36% × (1 - 0.3757)
After-tax cost of debt = 2.7276%
Next, let's calculate the cost of equity using the Dividend Discount Model (DDM):
Cost of equity = Dividend per share / Stock price + Dividend growth rate
Cost of equity = $1.49 / $79.92 + 2.09%
Cost of equity = 0.0187 + 0.0209
Cost of equity = 0.0396 or 3.96%
Now, we can calculate the WACC using the weighted average of the after-tax cost of debt and the cost of equity:
WACC = (Weight of debt × After-tax cost of debt) + (Weight of equity × Cost of equity)
WACC = (0.26 × 2.7276%) + (0.74 × 3.96%)
WACC = 0.7087% + 2.9264%
WACC = 3.6351% or 0.0364 (rounded to 4 decimal places)
Therefore, General Lithograph Corporation's weighted average cost of capital (WACC) is approximately 3.64%.
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Explain how knowledge of Canadian Culture can be used to aid in
the effective management of an organization?
Knowledge of Canadian culture can be used to aid in the effective management of an organization in various ways.
What is the reason?This is because the understanding of Canadian culture, as well as the language, is important for companies that are operating in Canada.
Here are some ways in which knowledge of Canadian culture can be used to aid in the effective management of an organization:
1. Enhances communication- Communication is an essential aspect of organizational management. Effective communication helps managers to understand the needs of their employees, to establish trust, and to maintain good relationships. When managers have a good understanding of Canadian culture, they are better equipped to communicate with their employees, customers, and other stakeholders.
2. Supports diversity management- Canada is a multicultural society with different ethnicities and languages. Therefore, knowledge of Canadian culture can be used to create a diverse and inclusive workplace. Managers who are knowledgeable about Canadian culture can help to create an environment where employees from diverse backgrounds feel valued and supported. This can enhance employee productivity and job satisfaction.
3. Facilitates stakeholder relations- Knowledge of Canadian culture can be used to build better relationships with stakeholders. By understanding the values, beliefs, and customs of Canadian society, managers can tailor their communication and interactions with stakeholders to create a more favorable impression. This can lead to increased trust, support, and cooperation from stakeholders.
4. Helps with decision making- Effective decision making is essential for organizational success. When managers have a good understanding of Canadian culture, they are better equipped to make informed decisions that take into account the cultural and social context.
This can help to avoid misunderstandings, misinterpretations, and conflicts.
Overall, knowledge of Canadian culture can be used to aid in the effective management of an organization by enhancing communication, supporting diversity management, facilitating stakeholder relations, and helping with decision making.
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uperlicious Cookies produces various types of ready to eat cookies. One of his famous and top selling sambal is called Chocolicious cookies. However, few weeks ago, the company’s is having problem with the quality of this product, where their cookies become sluggish before the expiring date. Construct a cause and effect diagram that has six causes and other sub-causes to this problem.
The effect of the quality issue with Chocolicious cookies is sluggish cookies. The causes can be categorized under 6 headings, including materials, methods, machines, environment, measurement, and people.
A cause and effect diagram, also known as an Ishikawa diagram or fishbone diagram, can help determine the underlying causes of a problem. In this case, the quality issue with the Chocolicious cookies has resulted in sluggish cookies. Six main categories can be identified, with sub-causes branching off each category.
These categories are materials, methods, machines, environment, measurement, and people. Some of the sub-causes that can be considered under each category are as follows: Materials: Expired ingredients Inconsistent quality of ingredients Methods: Inefficient mixing process inaccurate recipe measurements Machines: Faulty oven calibration Lack of maintenance of the microenvironment: Inadequate storage of ingredients Inadequate temperature control Measurement: Inaccurate measurement of ingredients lack of quality control testing people: Inadequate training of staff Inadequate supervision of staff
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Suppose that you are given the following production function: Q=100K^0.6 L^0.4 Determine the marginal product of capital and the marginal product of labor when K = 25 and L= 100.
The marginal product of capital (MPK) is equal to the evaluated expression for ∂Q/∂K, and the marginal product of labor (MPL) is equal to the evaluated expression for ∂Q/∂L.
To determine the marginal product of capital (MPK) and the marginal product of labor (MPL) at the given values of K and L, we need to calculate the partial derivatives of the production function with respect to each input.
The production function is given as Q = 100K^0.6 L^0.4.
Taking the partial derivative with respect to K, we get:
∂Q/∂K = 0.6 * 100 * K^(0.6-1) * L^0.4
Evaluating this expression at K = 25 and L = 100, we have:
∂Q/∂K = 0.6 * 100 * 25^(0.6-1) * 100^0.4
Simplifying the expression, we find:
∂Q/∂K = 60 * 25^(-0.4) * 100^0.4
Similarly, taking the partial derivative with respect to L, we get:
∂Q/∂L = 0.4 * 100 * K^0.6 * L^(0.4-1)
Evaluating this expression at K = 25 and L = 100, we have:
∂Q/∂L = 0.4 * 100 * 25^0.6 * 100^(0.4-1)
Simplifying the expression, we find:
∂Q/∂L = 40 * 25^0.6 * 100^(-0.6)
Therefore, the marginal product of capital (MPK) is equal to the evaluated expression for ∂Q/∂K, and the marginal product of labor (MPL) is equal to the evaluated expression for ∂Q/∂L.
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