Probability distribution of total losses for Lemonade Insurance Company if they sell a contract to Rainie. The probability of a fire occurring is 0.08.
The probability of the fire not happening is 0.92. In any case, Rainie pays nothing under her policy. In the event of a fire, the insurance company pays $200,000. The following are the loss probabilities. P(X = 200,000) = 0.08, P(X = 0) = 0.92b. Actuarially fair premium [AFP] Lemonade Insurance Company will charge Rainie in the coming year. Actuarially fair premium [AFP] is the expected loss of Lemonade Insurance Company.
Therefore, AFP is: AFP = E(X) = 200,000 × 0.08 + 0 × 0.92 = $16,000C. Amount of risk Lemonade Insurance Company faces if they have Rainie as their only customer. Lemonade Insurance Company's worst-case loss will occur if there is a fire, in which case the firm will pay out $200,000. Since the worst-case probability of a fire is 0.08, the company's worst-case loss is: ($200,000) × (0.08) = $16,0002. a. Probability distribution of total losses for Lemonade Insurance Company if they sell contracts to both Rainie and Cat.
The probability of a fire occurring is 0.08 for both Rainie and Cat. The probability of no fire is 0.92 for both houses. The following are the loss probabilities. P(X = 400,000) = 0.0064, P(X = 200,000) = 0.144, P(X = 0) = 0.8496b. Expected loss or expected payout for Lemonade Insurance. Company if they sell contracts to both Rainie and Cat. The expected loss of the insurance company is: E(X) = 400,000 × 0.0064 + 200,000 × 0.144 + 0 × 0.8496 = $28,800C. Amount of risk Lemonade Insurance Company faces if they sell contracts to both Rainie and Cat. The worst-case loss of the insurance company is $400,000. This is because if both Rainie and Cat have fires at the same time, Lemonade Insurance Company will pay each of them $200,000. P(Fire in Rainie's house) × P(Fire in Cat's house) = 0.08 × 0.08 = 0.0064d. Benefits to Lemonade Insurance Company as the number of insurance contracts sold increases. When the number of policies sold rises, Lemonade Insurance Company is able to spread the risk over a larger number of consumers, which lowers the company's exposure to loss.
As a result, the company will have a more reliable and predictable revenue stream that will allow it to stay competitive in the market.3. a. Probability distribution of total losses for Lemonade Insurance Company if they sell contracts to Rainie and Ben. Rainie and Ben have the same probability of a fire, which is 0.08. The probability of no fire is 0.92 for both houses. The following are the loss probabilities. P(X = 1,200,000) = 0.0064, P(X = 400,000) = 0.144, P(X = 200,000) = 0.576, P(X = 0) = 0.2744b. Premium Lemonade Insurance Company must charge each of Rainie and Ben if they want to break even. Premium needed to break even = E(X) = 1,200,000 × 0.0064 + 400,000 × 0.144 + 200,000 × 0.576 + 0 × 0.2744= $89,600 per policy. c. Will Rainie purchase this contract if she is charged the break-even premium? Will Ben purchase this contract if he is charged the 'break- even' premium? Briefly explain your reason. Rainie will buy the policy since her expected loss is now greater than the premium, whereas Ben will not because his expected loss is lower than the premium.
The insurance policy is not cost-effective for Ben because his property's expected value is higher than the policy's expected value. However, for Rainie, the insurance policy is a bargain because the policy's expected value is greater than her property's expected value. d. Amount of risk Lemonade Insurance Company faces if they sell contracts to both Rainie and Ben. The worst-case loss of the insurance company is $1,200,000. This is because if both Rainie and Ben have fires at the same time, Lemonade Insurance Company will pay each of them $600,000. The probability of this happening is 0.0064. Therefore, the worst-case loss for the firm is: ($1,200,000) × (0.0064) = $7,680. BONUS: Comparison of the situation in question 2 and 3 above. In particular, examine the results you obtain in 1(c), 2(c) and 3(d). Explain carefully the 'tradeoff' that is illustrated.
The tradeoff demonstrated is between expected value and risk. As a result, the higher the risk, the higher the expected value. When the company is dealing with one policyholder, the risk and expected value are the same. When there are two policyholders, the risk and expected value increase. Finally, when there are three policyholders, the risk is significantly higher than the expected value, and this is reflected in the worst-case loss.
To know more about Probability visit:
brainly.com/question/31828911
#SPJ11
You are a nutritionist working in a zoo, and one of your responsibilities is to develop a menu plan for the group of monkeys. In order to get all the vitamins they need, the monkeys have to be given fresh leaves as part of their diet. Choices you consider include leaves of the following species: (a) A (b) B (c) C (d) D and (e) E. You know that in the wild the monkeys eat mainly B leaves, but you suspect that this could be because they are safe whilst feeding in B trees, whereas eating any of the other species would make them vulnerable to predation. You design an experiment to find out which type of leaf the monkeys actually like best: You offer the monkeys all five types of leaves in equal quantities, and observe what they eat." (Shalini et al., 2021)
There are many different hypotheses you could formulate for the monkey study.
DiscussTWO (2) challenges to the hypotheses.
Discuss TWO (2) criteria for a good hypothesis.
Discuss the FIVE (5) steps in hypothesis testing with examples for each step.
Two challenges to the hypotheses in the monkey study could be: 1. Variability in individual preferences: Monkeys, like humans, may have individual preferences when it comes to food.
While the study assumes that the monkeys will prefer the leaves they eat in the wild, it is possible that some monkeys may have different preferences due to factors such as taste or texture. This variability could challenge the hypothesis that monkeys prefer B leaves over other types.
2. Lack of generalizability: The study assumes that the monkeys' preference for B leaves is solely driven by their safety from predation. However, there could be other factors influencing their choice, such as nutritional content or availability of food resources. If the hypothesis only considers predation as the determining factor, it may not fully explain the monkeys' leaf preference in all contexts or across different populations.
Two criteria for a good hypothesis are:
1. Testability: A good hypothesis should be capable of being tested and potentially falsified through empirical observation or experimentation. It should be formulated in a way that allows for collecting relevant data to evaluate its validity.
2. Specificity: A good hypothesis should clearly state the relationship or prediction being made. It should be specific and focused, avoiding vague or overly broad statements. A specific hypothesis enables researchers to design experiments or gather data with a clear objective in mind.
The five steps in hypothesis testing are:
1. State the research question: Identify the research question or problem that needs to be addressed. In this case, the research question could be: "Which type of leaf do the monkeys prefer?"
2. Formulate the null and alternative hypotheses: The null hypothesis (H0) states that there is no significant difference or relationship, while the alternative hypothesis (Ha) states that there is a significant difference or relationship. For example, the null hypothesis could be: "There is no significant difference in the monkeys' preference for different types of leaves." The alternative hypothesis could be: "The monkeys have a preference for a specific type of leaf."
3. Design the experiment: Develop a plan to gather data and test the hypotheses. In this case, offering the monkeys all five types of leaves in equal quantities and observing their consumption would be the experimental design.
4. Collect and analyze data: Implement the experiment and collect relevant data. In this step, researchers would record the amount of each type of leaf consumed by the monkeys and analyze the data to determine any patterns or preferences.
5. Draw conclusions: Based on the data analysis, evaluate the results and determine whether they support or reject the null hypothesis. In this case, the conclusion could be drawn based on the observed consumption patterns of the monkeys, indicating their preference for a particular type of leaf.
Learn more about conclusions here:
https://brainly.com/question/28832812
#SPJ11
As firms exit an industry, the industry supply curve shifts _____and the equilibrium price ______until long run competitive equilibrium is established and the surviving firms are earning ______ economic profits. a. leftward; rises, zero b. rightward; falls; negative c. rightward, rises; positive d. leftward; falls, positive e. leftward, rises, positive
As firms exit an industry, the industry supply curve shifts leftward and the equilibrium price rises until long-run competitive equilibrium is established and the surviving firms are earning zero economic profits.
When firms exit an industry, the total quantity supplied by the remaining firms decreases. This causes the industry supply curve to shift leftward. As a result, the supply curve intersects the demand curve at a higher price, leading to an increase in the equilibrium price.
In the long run, as the industry adjusts to the exit of firms, the market reaches a competitive equilibrium where the surviving firms are earning zero economic profits. This occurs because the exit of firms reduces competition, allowing the remaining firms to have some pricing power and earn positive profits in the short run. However, these profits attract new firms to enter the industry, which increases competition and eventually drives down prices until firms are earning only normal profits, i.e., zero economic profits.
Therefore, the correct answer is a. leftward; rises, zero.
Learn more about supply curve here
https://brainly.com/question/16818880
#SPJ11
The following data was prepared by the Cullumber Company. Total Sales price $20/unit Direct materials used $95,850 Direct labor $95,000 Manufacturing overhead $133,600 Selling and administrative expense $22,900 Units manufactured 31,500 units Beginning Finished Goods Inventory 20.500 units Ending Finished Goods Inventory 8.000 units Variable $13,900 $13.500 Fixed $119,700 $9,400 (d) Under variable costing, what is the cost of goods sold? (Round cost per unit to 2 decimal places, e.g. 2.52 and final answer to 0 decimal place, e.g. 2,152.) Cost of goods sold S
Under variable costing, the cost of goods sold is $286,000.
To calculate the cost of goods sold under variable costing, we need to consider the direct materials, direct labor, and variable manufacturing overhead costs. The fixed manufacturing overhead and selling and administrative expenses are not included in the cost of goods sold calculation.
First, let's calculate the total variable manufacturing costs:
Total variable manufacturing costs = Direct materials + Direct labor + Variable manufacturing overhead
Total variable manufacturing costs = $95,850 + $95,000 + $13,900
Total variable manufacturing costs = $204,750
Next, we need to calculate the cost per unit:
Cost per unit = Total variable manufacturing costs / Units manufactured
Cost per unit = $204,750 / 31,500 units
Cost per unit = $6.50
To calculate the cost of goods sold, we need to multiply the cost per unit by the number of units sold:
\Cost of goods sold = Cost per unit * (Units manufactured - Ending finished goods inventory + Beginning finished goods inventory)
Cost of goods sold = $6.50 * (31,500 - 8,000 + 20,500)
Cost of goods sold = $6.50 * 44,000
Cost of goods sold = $286,000
Therefore, under variable costing, the cost of goods sold is $286,000.
To know more about variable costing click here
brainly.com/question/28013522
#SPJ11
Mr JGU inherited ₹20,00,000 from his uncle. He puts all the money into his new business, JGBS Limited, which starts to generate an yearly revenue of ₹25,00,000 and earns him an operating profit of ₹3,00,000 per annum leading to a 15% return on assets. Mr JGU was happy to see the return on his asset go up from 3% to 15% and was satisfied with it. JGBS continued to distribute all the earnings from the business as dividends because Mr JGU was able to generate the same 15% return through other investments outside of the business and believed that the diversification reduced his risk.
Mr. JGU's satisfaction with the 15% return on assets from his business, JGBS Limited, is due to the substantial improvement over his initial 3% return. He chooses to distribute all earnings as dividends to diversify his risk and maintain a balanced income from other investments.
Mr. JGU's satisfaction with the 15% return on assets generated by his business, JGBS Limited, can be attributed to several factors. Firstly, compared to the initial 3% return on his inherited funds, the 15% return represents a substantial improvement.
This indicates that the business is performing well and has the potential to generate significant profits.
The increased return on assets demonstrates the efficiency and profitability of JGBS Limited's operations, which is a positive outcome for Mr. JGU.
Additionally, the decision to distribute all the earnings as dividends can be understood in the context of risk diversification. By investing outside of the business and achieving the same 15% return, Mr. JGU has effectively diversified his investment portfolio.
Diversification helps reduce the risk associated with having all his capital tied up in a single business. By distributing the earnings as dividends, Mr. JGU can realize the benefits of his business's profitability while simultaneously continuing to generate returns from other investments.
This approach ensures a balanced risk profile and allows for increased financial security by avoiding overreliance on a single source of income.
In summary, Mr. JGU's satisfaction with the 15% return on assets is based on the significant improvement compared to his initial return.
The decision to distribute all earnings as dividends reflects his desire for risk diversification and the ability to generate consistent returns from multiple sources.
To know more about substantial refer here:
https://brainly.com/question/31744419#
#SPJ11
Complete question:
What factors contributed to Mr. JGU's satisfaction with the 15% return on assets generated by his business, JGBS Limited, and why did he choose to distribute all the earnings as dividends?
Question 8 (10 marks) Your manager, Emily is undertaking an analysis of these two companies. The information for the summarized balance sheet and income statement for ABC Ltd and XYZ Ltd are presented
The variation in the return on equity of ABC Ltd and XYZ Ltd can be attributed to the distinct levels of leverage they employ.
The debt-to-equity ratio of ABC Ltd is higher than that of XYZ Ltd, indicating that it is relying more on debt to fund its activities.
This has two effects:It increases ABC Ltd's ROE, because interest expense is a tax-deductible expense. This means that for every dollar of interest that ABC Ltd pays, it saves 21 cents in taxes.
It decreases ABC Ltd's ROA, because debt is a liability, and liabilities are subtracted from assets when calculating ROA.
To explain the situation to Emily, you could use the following two additional financial ratios:
Debt-to-equity ratio: The proportion of a company's debts in relation to its assets is measured with this ratio.
Return on invested capital (ROIC): This ratio measures the return on a company's total capital, including both debt and equity. A higher ROIC indicates that a company is using its capital more effectively.
By using these two ratios, you can explain to Emily that ABC Ltd has a higher ROE than XYZ Ltd because it is using more debt to finance its operations. However, this higher debt levels are also decreasing ABC Ltd's ROA. Overall, XYZ Ltd is using its capital more effectively than ABC Ltd.
Read more about debt-to-equity ratio here:
https://brainly.com/question/27993089
#SPJ4
The Complete Question
Your manager, Emily is undertaking an analysis of these two companies. The information for the summarized balance sheet and income statement for ABC Ltd and XYZ Ltd are presented below. ABC Ltd XYZ Ltd Balance sheet as at 30/6/21: Current assets Non-current assets $ 34,000 $ 47,200 57,000 80,800 Total assets 91,000 128,000 Current liabilities Non-current liabilities 9,100 21,800 20,100 60,000 Ordinary shareholders' equity Total liabilities and shareholders' equity 61,800 46,200 91,000 128,000 Income statement for the year ending 30/6/21: Sales 86,500 75,800 Cost of sales 60,500 54,000 Operating expense Interest expense 16,900 9,000 2,100 2,200 Income tax expense Profit after income tax 4,500 2,000 2,500 8,600 Included in the analysis are the following two ratios (it is assumed that these have been calculated correctly): XYZ Ltd Return on owners' equity (ROE) ABC Ltd 4% 10% 19% Return on assets (ROA) 10% Emily made the following comment: 'I cannot understand how two companies can have the same return on assets but completely different rates of return on owners' equity'. Required: In addition to ROE and ROA ratios, use any two additional financial ratio calculations you think are necessary, explain the situation to Emily.
Explain using a decision tree and appropriate profit pay-offs how Airbus which has the possibility of building a 600 seater or 300 seater aircraft with a first mover advantage over Boeing will decide whether to build a 600 or 300 seater aircraft. Explain with the aid of an appropriate diagram the income and substitution effects for a fall in the price of Good X where Good X is an inferior good but not a Giffen good.
The non-parametric supervised learning approach used for classification and regression applications is the decision tree. The payoff at expiration is the dollar amount the investor receives at expiration from following the option strategy.
The non-parametric supervised learning approach used for classification and regression applications is the decision tree. It is organized hierarchically and has a root node, branches, internal nodes, and leaf nodes.
A decision tree is a hierarchical decision support model that uses a tree-like representation of options and their potential outcomes, including utility, resource costs, and chance event outcomes. One technique to show an algorithm that solely uses conditional control statements is to use this method.
Learn more about the Decision tree here:
https://brainly.com/question/31669116
#SPJ4
Gary likes to gamble. Donna offers to bet him $54 on the outcome of a boat race. If Gary's boat wins, Donna would give him $54. If Gary's boat does not win, Gary would give her $54. Gary's utility function is p₁x² + 2x², where p₁ and p2 are the probabilities of events 1 and 2 and where x₁ and X2 are his wealth if events 1 and 2 occur respectively. Gary's total wealth is currently only $80 and he believes that the probability that he will win the race is 0.4. Which of the following is correct? (please submit the number corresponding to the correct answer). 1. Taking the bet would reduce his expected utility. 2. Taking the bet would leave his expected utility unchanged. 3. Taking the bet would increase his expected utility. 4. There is not enough information to determine whether taking the bet would increase or decrease his expected utility. 5. The information given in the problem is self-contradictory.
Based on Gary's utility function, option 1. Taking the bet would decrease his expected utility.
To determine the expected utility, we need to calculate the utility for each possible outcome and weigh them by their respective probabilities. Given Gary's utility function of p₁x² + 2x², we can substitute the values for p₁ (0.4) and x (his current wealth of $80) into the equation. If Gary's boat wins, his wealth would be $80 + $54 = $134, resulting in a utility of 0.4(134)² + 2(134)². If his boat doesn't win, his wealth would be $80 - $54 = $26, resulting in a utility of 0.6(26)² + 2(26)².
Comparing the expected utility of taking the bet (weighted average of the utilities for winning and losing) with his current expected utility (0.4(80)² + 2(80)²), we can observe that the expected utility of taking the bet is lower. Therefore, taking the bet would reduce his expected utility.
Based on Gary's utility function and the given information, taking the bet would decrease his expected utility.
To know more about utility function click here:
https://brainly.com/question/30652436
#SPJ11
as of the end of 2018, which of the following types of mortgage loans accounts for the greatest percentage of mortgage debt outstanding?
As of the end of 2018, the conventional conforming mortgage loan accounted for the greatest percentage of mortgage debt outstanding.
A mortgage loan is a form of secured loan used to purchase a home or property. To qualify for a mortgage loan, the borrower must be able to make a down payment on the property (usually at least 20% of the purchase price), have a good credit score, and demonstrate a stable source of income.Types of mortgage loansThere are various types of mortgage loans, some of which include:Conventional conforming mortgage loanFHA (Federal Housing Administration) loanVA (Veterans Affairs) loanJumbo mortgage loanInterest-only mortgage loan Reverse mortgage loanWhich of the following types of mortgage loans accounts for the greatest percentage of mortgage debt outstanding?As of the end of 2018, the conventional conforming mortgage loan accounted for the greatest percentage of mortgage debt outstanding. This was closely followed by FHA (Federal Housing Administration) loans and VA (Veterans Affairs) loans.
To know more about conventional visit:
https://brainly.com/question/32252474?referrer=searchResults
#SPJ11
The EPA needs to set criteria for the amount of toxic chemicals allowed in freshwater lakes and
rivers. A common measure of toxicity is the concentration of the pollutant that will kill half of the
test species in a given amount of time (96 hours for fish). This measure is called LC50. In many
studies, the natural logarithm of LC50 is normally distributed.
Studies of the effects of copper on a certain species of fish show the variance of ln(LC50) to be
around 0.4, with measurements taken in miligrams per liter.
(a) If 10 studies on LC50 for copper are to be completed, find the probability that the sample
mean of ln(LC50) will differ from the true population mean by no more than 0.5 miligrams
per liter.
(b) If we want the above probability to be 95%, how many tests should we run?
(c) Suppose that we measure the effect of copper on a different species of fish, and the variance
of ln(LC50) for this new species is 0.8. Assuming that the populations means of ln(LC50) for
both species are equal, find the probability that, with random samples of 10 measurements
from each species, the sample mean for species A exceeds the sample mean for species B by
at least 1 unit.
a) The probability that the sample mean of ln(LC50) differs from the true population mean by no more than 0.5 milligrams per liter is approximately 38.29%.
(b) To achieve a 95% probability, at least 5 tests should be run.
(c) The probability that, with random samples of 10 measurements from each species, the sample mean for species A exceeds the sample mean for species B by at least 1 unit is approximately 0.0062 or 0.62%.
(a) To find the probability that the sample mean of ln(LC50) will differ from the true population mean by no more than 0.5 milligrams per liter, we can use the Central Limit Theorem. Since the natural logarithm of LC50 is normally distributed, the sample mean of ln(LC50) will also be normally distributed.
The standard deviation of the sample mean (also known as the standard error) can be calculated by dividing the standard deviation of ln(LC50) by the square root of the sample size. In this case, the standard deviation of ln(LC50) is the square root of the variance, which is √0.4 = 0.6325.
Using the formula for the standard error:
Standard Error = Standard Deviation / √Sample Size
Standard Error = 0.6325 / √10
Standard Error ≈ 0.1997
Now, we want to find the probability that the sample mean differs from the population mean by no more than 0.5 milligrams per liter. This is equivalent to finding the probability that the sample mean falls within a range of ±0.5 around the population mean.
To calculate this probability, we can use the standard normal distribution (Z-distribution) and find the area under the curve between -0.5 and 0.5. This can be done using a standard normal distribution table or a calculator. Assuming a standard normal distribution is appropriate, the probability is approximately 0.3829 or 38.29%.
(b) If we want the probability to be 95%, we need to find the number of tests (sample size) that would give us this desired probability. We need to find the sample size that corresponds to the desired probability in the tail area of the standard normal distribution.
Using the standard normal distribution table or a calculator, we can find the z-score corresponding to a tail probability of 0.025 (since we want the probability to be 95%). The z-score is approximately 1.96.
We can then use the formula for the standard error to find the required sample size:
Sample Size = (Z-score * Standard Deviation / Desired Margin of Error)²
Sample Size = (1.96 * 0.6325 / 0.5)²
Sample Size ≈ 4.86
Since we cannot have a fraction of a test, we need to round up to the nearest whole number. Therefore, we should run at least 5 tests to achieve a 95% probability.
(c) To find the probability that, with random samples of 10 measurements from each species, the sample mean for species A exceeds the sample mean for species B by at least 1 unit, we need to compare the sampling distributions of the two species.
The standard deviation of the difference between the sample means, also known as the standard error of the difference, can be calculated as follows:
Standard Error of Difference = √[(Standard Deviation A² / Sample Size A) + (Standard Deviation B² / Sample Size B)]
Standard Error of Difference = √[(0.8 / 10) + (0.8 / 10)]
Standard Error of Difference = √(0.16)
Standard Error of Difference = 0.4
Now, we want to find the probability that the sample mean for species A exceeds the sample mean for species B by at least 1 unit. This is equivalent to finding the probability that the difference between the sample means is greater than or equal to 1.
To calculate this probability, we need to use the standard normal distribution. Since the sampling distribution of the difference in sample means follows a normal distribution, we can calculate the z-score corresponding to a difference of 1 unit using the formula:
z-score = (Difference - 0) / Standard Error of Difference
z-score = (1 - 0) / 0.4
z-score = 2.5
Using a standard normal distribution table or a calculator, we can find the probability corresponding to a z-score of 2.5. The probability is approximately 0.0062 or 0.62%.
Therefore, the probability that, with random samples of 10 measurements from each species, the sample mean for species A exceeds the sample mean for species B by at least 1 unit is approximately 0.0062 or 0.62%.
Learn more about probability here:
https://brainly.com/question/16988487
#SPJ4
1- An implication for strategic management involves the concept of a mission. Which of the following examples would best serve as an example highlighting the importance of a central mission to guide organizational strategy and actions?
Greek soldiers’ victory against the Trojans by offering a gesture that appeared on the surface to be beneficial to the Trojans, but masked the sinister intent of attacking at night
Apple developing unique features for its computer that have created a fiercely loyal set of customers without engaging in a price war against competitors like Toshiba, Acer, and Lenovo
Ford Motor Company producing the first classic Model T automobile
King Arthur and his Knights of the Round Table’s vigorous search to find the Holy Grail
2- Strategic management involves the utilization or planned allocation of resources to implement major initiatives taken by__________ on behalf of the __________ to improve performance of firms in an environment.
The CEO, employees
Executives, employees
Employees, the CEO
Executives, shareholders
The example that best serves as an example highlighting the importance of a central mission to guide organizational strategy and actions is Apple developing unique features for its computer that have created a fiercely loyal set of customers without engaging in a price war against competitors like Toshiba, Acer, and Lenovo. This example demonstrates how Apple's mission of innovation and delivering exceptional user experiences has shaped their strategic decisions. Rather than competing solely on price, Apple focuses on differentiation and creating products that resonate with their target market, resulting in a loyal customer base and strong brand identity.
In the context of strategic management, the planned allocation of resources to implement major initiatives is typically undertaken by executives on behalf of the shareholders to improve the performance of firms in an environment. Executives have the authority and responsibility to make strategic decisions, allocate resources effectively, and drive the organization towards its goals. Employees play a crucial role in executing these initiatives, but the ultimate responsibility for strategic management lies with the executives who act on behalf of the shareholders.
Learn more about the importance of a central mission in guiding organizational strategy and the roles of executives and employees in strategic management here:
brainly.com/question/14673413
#SPJ11
Annual rate of return is computed by dividing .. a.expected annual net income by average investment. b. expected annual net income by total investment. c. expected cash flows by average investment. d. expected cash flows by total investment.
The annual rate of return is calculated by dividing the expected annual net income by the total investment.
Thus, the correct answer is that It is the most widely used method of calculating the rate of return on investments.
So, the answer is B
It's a simple way to calculate the annual return on your investment.The expected annual net income refers to the income that is expected to be generated by the investment in a year. This may include interest, dividends, rent, and other types of income that are generated by the investment.
Total investment refers to the amount of money that has been invested in the project or asset being evaluated. By dividing the expected annual net income by the total investment, investors can determine the return they can expect on their investment on an annual basis.
Hence, the answer of the question is B.
Learn more about investment at:
https://brainly.com/question/32598457
#SPJ11
Give an example of a clothing brand with which you are familiar, and discuss its brand equity
Nike is a globally recognized athletic apparel brand known for its high-quality products, innovation, and strong brand image.
Nike's brand equity stems from several factors. Firstly, the brand has established a reputation for producing top-notch athletic gear, earning the trust and loyalty of athletes and consumers worldwide. Secondly, Nike has consistently pushed the boundaries of innovation, introducing cutting-edge technologies in their products that enhance performance and comfort. This commitment to innovation has helped build a perception of Nike as a forward-thinking and trendsetting brand. Additionally, Nike's iconic "swoosh" logo and powerful advertising campaigns have contributed to its strong brand image and recognition. The brand's association with successful athletes and teams further enhances its credibility and aspirational appeal. Overall, Nike's brand equity is built on a foundation of quality, innovation, and powerful brand identity, making it one of the most valuable and influential clothing brands in the world.
To learn more about innovation click here:
brainly.com/question/17516732
#SPJ11
What trends and issues are affecting human resource management and
labor relations in today’s environment. Explain it with the help of
examples from the organizations.
Human resource management and labor relations are influenced by a variety of trends and issues in today's world. Technological advancements, demographic shifts, globalization, evolving laws and regulations, and changing societal expectations are among these trends and issues.
Technology has been changing the workplace for years, from telecommuting and video conferencing to automation and artificial intelligence. This trend has influenced Human resource management in various ways. For example, HR professionals in businesses are currently employing AI tools to help with everything from recruiting to onboarding to performance management. As a result, the company has been able to attract a more diverse group of job candidates, increase the speed of recruitment, and enhance employee engagement and retention.
Demographic changes are another factor affecting HR management and labor relations. With an ageing population and younger generations entering the workforce, employers must adapt to new work styles and employee expectations. For instance, businesses are offering more flexible work schedules and remote working opportunities to appeal to younger employees' preferences.The rise of the global economy is the third major trend affecting human resources management. Companies now operate in an environment where they compete with other businesses from all over the world for resources and customers. As a result, HR experts must recruit and retain employees who have global experience, knowledge, and skills.Legal and regulatory requirements that impact HR management have been increasingly developing and evolving, and businesses must remain informed and compliant. For example, laws regulating overtime pay, minimum wage, health care benefits, family and medical leave, and discrimination in the workplace have been put in place by the government and regulatory bodies. Organizations must stay aware of these laws and regulations and modify their HR practices to comply with them.HR management and labor relations are affected by many trends and issues in today's world, including technological advancements, demographic shifts, globalization, evolving laws and regulations, and changing societal expectations. For example, technology has enabled HR professionals to recruit more diverse job candidates, speed up recruitment, and enhance employee engagement and retention.The changing demographic characteristics of the workforce are influencing HR management and labor relations. Companies now provide more flexible work schedules and remote working opportunities to attract younger employees. Globalization has increased the competition among companies for resources and customers, forcing HR professionals to recruit and retain employees with global experience, knowledge, and skills.Legal and regulatory changes have impacted HR management in recent years, such as laws governing overtime pay, minimum wage, health care benefits, family and medical leave, and discrimination in the workplace. Therefore, businesses must remain aware of these laws and regulations and modify their HR policies to adhere to them.
To know more about resource visit:
https://brainly.com/question/30665595
#SPJ11
Task 2: Savings, Investments, and Risk Management for a Middle-Aged Professional
Talk to a 40-year-old business professional with a family that includes a spouse and children.
This person can be a family member, friend, or mentor. List and describe the savings,
investments and risk management strategies for this phase of life. Describe how financial
planning has changed from the earlier phase of life.
Some risk management responses that a middle age professional can give include avoiding overspending, making reasonable budgets, having a substitute plan in place for unforeseen events.
What are the investments and strategies?A middle age professional can invest in real estate business. They could also make it a point to spend carefully and avoid lending money to people who will not pay back.
Of course, they should ahve a stable job that gurantees regular income. in addition to this, there should be a mitigation plan for unforeseen events. These strategies can help them financially.
Learn more about investments here:
https://brainly.com/question/29547577
#SPJ1
Elaine operated a business selling body lotions and creams. She would often display her products on tables set up on the sidewalk immediately in front of her store. To make her products more visible, she had strong floodlights attached to the top of the storefront, which automatically came on when it began to get dark and were used to illuminate the tables on the sidewalk. On a Tuesday afternoon it began to suddenly get dark and rain lightly, but Elaine was busy inside the store and did not have an opportunity to get out and cover the tables on the sidewalk. Unknown to Elaine, a bottle of lotion had fallen onto the sidewalk and the contents had leaked onto the walkway in front of the table. As a pedestrian crossed in front of her store the floodlights came on suddenly and the pedestrian, briefly blinded by the lights, slipped on the spilled lotion. Elaine came running out of the store as a man helped the woman who had fallen back to her feet. Elaine heard the woman tell the man she was okay, only a bit shaken, and that it was her own fault for not looking where she was going. The rain had spread the lotion even further on the sidewalk so Elaine quickly got a mop and cleaned up the mess. Meanwhile, the woman who had fallen limped off muttering about the bright spots floating in her eyesight. 1. Discuss what Elaine should do to minimize the potential fall out and what practical steps she should take that would assist with any legal issues. 2. Name and discuss preventative measures that should be put in place to eliminate something like this from ever happening again.
To minimize the potential fallout and address any legal issues is:
Check on the injured pedestrianDocument the incidentReport the incidentSeek legal adviceThe injured pedestrian should be checked on by Elaine, who should also offer assistance if necessary. Take pictures of the pavement, the floodlights, and the lotion that was poured to record the incident, Elaine should do.
Report the occurrence: Elaine needs to inform her insurance provider as well as any necessary authorities, such the police or local government, about the incident. To further understand her legal responsibilities and potential liability, Elaine should see a premises liability lawyer.
Learn more about on potential, here:
https://brainly.com/question/28300184
#SPJ1
4) An investor has been offered an investment opportunity that will pay him $25,000 every year for 10 years, with the first payment coming one year from today. What is the present value of the 10-year annuity at an annual interest rate of 8%? 5.) Jennifer has been given money for her birthday. She puts her money in a savings account offers an annual interest rate of 4.50%, compounded monthly. What is the effective annual rate (EAR) on the saving account? 6.) An individual invests $10,000 today in an investment that is expected to be worth $20,000 in 6 years. What annualized rate of return is the investor expecting to receive on the investment? 7.) A college graduate just bought a new house. The home was purchased with a 30-year loan of $350,000 with monthly payments at an interest rate of 4%. What is the amount of the monthly loan payment? 8.) An investor is evaluating an investment that pays $50,000 for 3 consecutive years and then $25,000 in year 4. The first $50,000 payment comes one year from today. What is the present value of the investment's cash flows at an interest rate of 10%?
4) The present value of the 10-year annuity at an annual interest rate of 8% is approximately $177,851.28.
5) The effective annual rate (EAR) on the savings account is approximately 4.56%.
6) The investor is expecting to receive an annualized rate of return of approximately 12.2% on the investment.
7) The amount of the monthly loan payment is approximately $1,664.16.
8) The present value of the investment's cash flows at an interest rate of 10% is approximately $64,367.77.
4) To calculate the present value of the 10-year annuity, we can use the formula for the present value of an ordinary annuity:
Present Value = Cash Flow * (1 - (1 + Interest Rate)^(-Number of Periods)) / Interest Rate
Where:
- Cash Flow = $25,000 (annual payment)
- Interest Rate = 8% = 0.08 (annual interest rate)
- Number of Periods = 10 (number of years)
Substituting the values into the formula:
Present Value = $25,000 * (1 - (1 + 0.08)⁻¹⁰) / 0.08
Present Value ≈ $177,851.28
Therefore, the present value of the 10-year annuity at an annual interest rate of 8% is approximately $177,851.28.
5) To calculate the effective annual rate (EAR) on the savings account, we can use the formula for compound interest:
EAR = (1 + (Annual Interest Rate / Number of Compounding Periods))^Number of Compounding Periods - 1
Where:
- Annual Interest Rate = 4.50% = 0.045 (annual interest rate)
- Number of Compounding Periods = 12 (monthly compounding)
Substituting the values into the formula:
EAR = (1 + (0.045 / 12))¹² - 1
EAR ≈ 0.0456 or 4.56%
Therefore, the effective annual rate (EAR) on the savings account is approximately 4.56%.
6) To calculate the annualized rate of return on the investment, we can use the formula for compound annual growth rate (CAGR):
CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1
Where:
- Beginning Value = $10,000 (initial investment)
- Ending Value = $20,000 (expected value after 6 years)
- Number of Years = 6
Substituting the values into the formula:
CAGR = ($20,000 / $10,000)^(1 / 6) - 1
CAGR ≈ 0.122 or 12.2%
Therefore, the investor is expecting to receive an annualized rate of return of approximately 12.2% on the investment.
7) To calculate the amount of the monthly loan payment, we can use the formula for a fixed-rate mortgage payment:
Monthly Payment = Loan Amount * (Monthly Interest Rate / (1 - (1 + Monthly Interest Rate)^(-Number of Payments)))
Where:
- Loan Amount = $350,000 (loan amount)
- Monthly Interest Rate = 4% / 12 = 0.04 / 12 = 0.00333 (monthly interest rate)
- Number of Payments = 30 years * 12 months/year = 360 (number of payments)
Substituting the values into the formula:
Monthly Payment = $350,000 * (0.00333 / (1 - (1 + 0.00333)⁻³⁶⁰))
Monthly Payment ≈ $1,664.16
Therefore, the amount of the monthly loan payment is approximately $1,664.16.
8) To calculate the present value of the investment's cash flows, we need to discount each cash flow to its present value and sum them up.
Using the formula for the present value of a single cash flow:
Present Value = Cash Flow / (1 + Interest Rate)^Number of Periods
Where:
- Cash Flow = $50,000 (for years 1-3) and $25,000 (year 4)
- Interest Rate = 10% = 0.10
(annual interest rate)
- Number of Periods = 1 (for years 1-3) and 4 (year 4)
Calculating the present value of each cash flow:
Present Value of $50,000 = $50,000 / (1 + 0.10)¹ = $45,454.55
Present Value of $25,000 = $25,000 / (1 + 0.10)⁴ = $18,913.22
Summing up the present values:
Present Value = $45,454.55 + $18,913.22
Present Value ≈ $64,367.77
Therefore, the present value of the investment's cash flows at an interest rate of 10% is approximately $64,367.77.
To know more about present value, refer to the link below:
https://brainly.com/question/30712339#
#SPJ11
T/F. The optimal number of hedgning contract without tailing is always greater than number of optimal hedging contracts with tailing.
The given statement "The optimal number of hedging contracts without tailing is always greater than the number of optimal hedging contracts with tailing is False because the optimal number of hedging contracts without tailing is not always greater than the number of optimal hedging contracts with tailing.
It is dependent on the level of inventory involved as well as the contract specifications.As per the hedging theory, if the inventory is static and there are no time and inventory costs involved, then the optimal number of contracts will be equal to the level of inventory, irrespective of whether the hedging is with or without tailing. However, the situation changes when there are inventory and time costs involved.
Under such situations, the number of contracts required to hedge the inventory may either increase or decrease with tailing as compared to no tailing.Besides, depending on the hedging instruments and contract specifications, there may be situations where hedging with tailing may require more contracts as compared to no tailing while sometimes the opposite can happen.
To know more about contracts click here
brainly.com/question/32254040
#SPJ11
PLEASE ANSWER ALL OF THE 1O QUESTIONS WITH EXPLANATIONS , THANKS
1- Create a hypothetical market (make a table showing values for Quantity Supplied, Quantity Demanded and Price). Any values you like and make sense to you! Make at least 10 data points. Keep constants slope.
2- Label the equilibrium price and quantity in red and create a graph (using excel or any other application you prefer) for the model.
3- Calculate the slope and intercept and write the supply & demand equations. Comment on the two equations and on the values of the slope and intercept. What do they mean?
4- List the demand determinants and supply determinants and show how thy might shift the supply and demand functions. Show graphically the impact on the equilibrium price for more & less demand and more & less supply. Explain under each graph the reason and the direction of the shifts in the function.
5- In the market that you have created calculate consumer surplus and producer surplus and show both in one graph. Calculate the market surplus too. What does the market surplus reflect?
6- In the market that you have created assume any possible price floor and any possible price ceiling and find the values of quantity demanded and quantity supplied at each of these prices.
7- Calculate and show the quantity shortage and quantity surplus resulted from price ceiling and price floor.
8- Show graphically the impact of the price floor and in another graph the impact of the price ceiling.
9- Add a column to the initial table showing the elasticity of demand at each price level. According to the elasticity of demand at the equilibrium price, what would be more profitable to the supplier; to raise the price or to lower it. Why?
10- If you were to choose a market to start you own business in; which market you prefer; a market with price elastic demand or price inelastic demand? Why?
The elasticity of demand at each price level is determined, allowing for a discussion on price adjustments. Finally, the preference for starting a business in a market with either price elastic or price inelastic demand is considered.
1. A hypothetical market table is created with values for Quantity Supplied, Quantity Demanded, and Price, generating at least 10 data points.
2. The equilibrium price and quantity are identified and marked in red on a graph, illustrating the point at which Quantity Supplied equals Quantity Demanded.
3. The slope and intercept of the supply and demand equations are calculated, providing insights into their meanings. The supply equation represents the relationship between price and the quantity suppliers are willing to produce, while the demand equation reflects the relationship between price and the quantity consumers are willing to purchase. The slope represents the rate of change, indicating how much quantity changes in response to a unit change in price. The intercept represents the quantity demanded or supplied when the price is zero.
4. The determinants of demand and supply are listed, including factors such as income, prices of related goods, tastes and preferences, technology, input prices, and government regulations. Graphs are used to demonstrate how these determinants can shift the supply and demand curves, impacting the equilibrium price. An increase in demand shifts the demand curve to the right, resulting in a higher equilibrium price. Conversely, a decrease in demand shifts the demand curve to the left, leading to a lower equilibrium price. Similarly, changes in supply determinants can affect the equilibrium price in the opposite direction.
5. Consumer surplus and producer surplus are calculated and graphed together, representing the benefits enjoyed by consumers and producers in the market. Market surplus, which is the sum of consumer surplus and producer surplus, reflects the overall welfare or economic efficiency in the market.
6. Assuming a price floor and price ceiling in the market, the corresponding quantities demanded and supplied at each price level are determined. A price floor sets a minimum price, potentially resulting in excess supply or surplus. Conversely, a price ceiling establishes a maximum price, which can lead to excess demand or shortage.
7. The quantity shortage and quantity surplus resulting from a price ceiling or price floor are calculated. A price ceiling causes a shortage, as the quantity demanded exceeds the quantity supplied at the restricted price. Conversely, a price floor creates a surplus, with the quantity supplied surpassing the quantity demanded at the mandated price.
8. The impact of a price floor and price ceiling is graphically shown. A price floor raises the minimum price, potentially leading to a surplus. A price ceiling sets a maximum price, potentially causing a shortage.
9. A column is added to the initial table, indicating the elasticity of demand at each price level. Based on the elasticity of demand at the equilibrium price, the profitability of raising or lowering the price for the supplier is determined. If demand is price inelastic (inelastic demand), meaning quantity is not highly responsive to price changes, suppliers may find it more profitable to raise the price. However, if demand is price elastic (elastic demand), implying a high responsiveness of quantity to price changes, lowering the price could be more profitable for the supplier.
10. When starting a business, it is generally preferable to choose a market with price inelastic demand. Price inelastic demand means that changes in price have a minimal impact on consumer demand. This provides several advantages for a business, including higher profit margins, reduced vulnerability to price fluctuations, and greater control over pricing strategies.
Learn more about Price:
brainly.com/question/20703640
#SPJ11
If you wish to cause a change in the culture in your organization, which of the following tactics is a first step that is most likely to get the change going, according to the research presented in class?
A. Holding an all company meeting and explaining the desired changes
B. A reorganization with layoffs of the employees who epitomize the current culture
C. Creating a video showing people doing all the things that you want to happen in your new culture
The data discussed in class indicates that option A—holding an all-company meeting and outlining the intended changes is the most likely initial step to start a change in an organization's culture.
Transparency and open communication are made possible by holding a meeting with the entire firm and outlining the intended changes.
With this strategy, executives can communicate to all staff members the vision, justification, and expectations surrounding the intended culture change. Employees are able to ask questions and offer comments while also getting a clear idea of the planned path.
Learn more about Transparency here:
brainly.com/question/29572990
#SPJ4
The Chief Executive is planning to change the current organizational structure to a team-based structure with permanent teams. Specify the type of structure that the Chief Executive is planning to change to.
The Chief Executive is planning to change the current organizational structure to a team-based structure with permanent teams. The type of structure that the Chief Executive is planning to change to is a team-based structure.
A team-based organizational structure is a type of structure in which groups of individuals with complementary skills, expertise, and knowledge work together to achieve a common goal.
The team-based organizational structure is different from the traditional hierarchical organizational structure, where there are clearly defined roles and responsibilities and a vertical chain of command.
In a team-based structure, permanent teams are created that have full autonomy over their work, and each team is responsible for a specific task or project.
The teams work together to achieve their common objectives and goals, and this structure encourages communication, cooperation, and collaboration between team members, which ultimately leads to improved productivity and better quality work.
Overall, the team-based organizational structure is a more flexible and adaptable approach to work that is better suited to today's fast-paced and rapidly changing business environment.
To know more about Executive refer here:
https://brainly.com/question/27999252#
#SPJ11
An Indian investor purchases $US, when the exchange rate was 1 RUPEE $.013. A year late the exchange rate is $1-62.5 RUPEES. What was the gain or loss for the investor if his investment was 200.000 RU
To calculate the gain or loss for the investor, we need to compare the initial exchange rate at the time of purchase with the exchange rate after one year.
Initial exchange rate: 1 US dollar = 0.013 rupees
Exchange rate after one year: 1 US dollar = 62.5 rupees
Investment amount: 200,000 rupees
To find out the value of the investment in US dollars after one year, we can divide the investment amount by the initial exchange rate:
Value of the investment in US dollars after one year = 200,000 rupees / 0.013 rupees per US dollar = 15,384.62 US dollars
Now we can calculate the gain or loss by comparing the value of the investment after one year with the initial investment amount:
Gain or loss = Value after one year - Initial investment
= 15,384.62 US dollars - 200,000 rupees
= -184,615.38 rupees
Therefore, the investor incurred a loss of 184,615.38 rupees on the investment after one year.
To know more about investment visit-
brainly.com/question/30699360
#SPJ11
Analyse VRIO model of Xiaomi Electric Vehicles. What
is the challenges of Xiaomi's entry in Electric vehicles
industry?
The VRIO (Value, Rarity, Imitability, and Organization) model can be used to analyze Xiaomi's entry into the electric vehicles (EV) industry. However, as of my knowledge cutoff in September 2021, Xiaomi has not officially entered the EV industry, and thus, specific analysis of Xiaomi's VRIO model in the EV industry is not possible. Nonetheless, I can provide insights into the potential challenges Xiaomi might face if it decides to enter the EV industry.
Challenges of Xiaomi's entry in the electric vehicles industry:
Established competition: The EV industry is already highly competitive, with well-established players such as Tesla, Nissan, and BMW dominating the market. Xiaomi would need to differentiate itself and offer unique value propositions to compete effectively against these established competitors.Technological expertise: Developing and manufacturing electric vehicles require significant technological expertise, especially in areas such as battery technology, powertrain systems, and autonomous driving. Xiaomi would need to invest heavily in research and development to build the necessary capabilities or form strategic partnerships to access advanced technologies.Supply chain and manufacturing: Building a robust and efficient supply chain for EV components and establishing manufacturing facilities can be complex and capital-intensive. Xiaomi would need to navigate these challenges to ensure a reliable supply of components and efficient production processes.Regulatory and policy environment: The EV industry is influenced by various regulations and government policies related to emissions, subsidies, and charging infrastructure. Xiaomi would need to navigate these regulations and develop strategies that align with government initiatives and incentives.Brand perception and customer acceptance: Xiaomi is primarily known for its expertise in consumer electronics and smartphones. Building brand perception and customer acceptance in the EV industry might be a challenge, as customers may perceive Xiaomi as a newcomer in the automotive sector. Establishing trust and credibility among consumers would be crucial.While Xiaomi's entry into the electric vehicles industry presents potential opportunities, it also comes with significant challenges. Overcoming established competition, acquiring the necessary technological expertise, managing the supply chain and manufacturing processes, adapting to regulatory environments, and building brand perception are key challenges Xiaomi would need to address to succeed in the EV industry. Careful strategic planning, investment in R&D, partnerships, and a deep understanding of the market dynamics would be essential for Xiaomi to navigate these challenges effectively.
To know more about VRIO, visit :
https://brainly.com/question/30749361
#SPJ11
Use one or more of the academic theories and ideas we have covered in the module, compare and contrast how technology and perspectives on ‘smart development’ influence ‘developed’ and ‘developing’ countries.
Based on Technological determinism theory (TD) and Social construct of technology (SCOT).
Technology and perspectives on ‘smart development’ influence both ‘developed’ and ‘developing’ countries. It is essential to analyze how these influences differ according to Technological determinism theory (TD) and Social construct of technology (SCOT).
Technological Determinism (TD) theory suggests that technology is the most important factor in shaping the world and is an autonomous, self-regulating force. TD advocates argue that technology drives social and cultural change. TD, on the other hand, ignores the social, economic, and political contexts in which technology operates.
In contrast, Social Construct of Technology (SCOT) theory suggests that technology is shaped by social forces, and technology development is a product of social context and social interaction. According to SCOT, technologies must be understood in the context of their creation and use, which includes the social, economic, and political factors that shape technology.
SCOT suggests that technology development is a collaborative process that is influenced by multiple actors, including users, developers, and policymakers. According to SCOT, technology development is a product of social context and social interaction.Technology and development have an influence on both developed and developing countries. In developed countries, technology is a key driver of economic growth. For instance, the advancements in ICT (Information and Communications Technology) have enabled developed countries to strengthen their economies by promoting new businesses and enhancing efficiency and productivity. Furthermore, technology has increased the quality of life in developed countries by providing access to information, medical care, education, and entertainment.
Learn more about Technology:-
https://brainly.com/question/11447838
#SPJ11
Whispering Winds Inc. reported income from continuing operations before tax of $1,969,000 during 2020. Additional transactions occurring in 2020 but not included in the $1,969,000 were as follows: 1. The corporation experienced an insured flood loss of $88,000 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $78,000 (residual value of $21,000) that has a useful life of six years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct the residual value in calculating the depreciable amount. 3. The sale of FV-NI investments resulted in a loss of $117,700. 4. When its president died, the corporation gained $110,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $50,600. (the gain is non-taxable.) 5. The corporation disposed of its recreational division at a loss of $126,500 before tax. Assume that this transaction meets the criteria for accounting treatment as discontinued operations. 6. The corporation decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this change on prior years is to increase 2018 income by $66,000 and decrease 2019 income by $22,000 before taxes. The FIFO method has been used for 2020. Your answer is partially correct. Prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Calculate earnings per share as required under IFRS.
Whispering Winds Inc.
Income StatementFor the year 2020ParticularsAmount in $Income from continuing operations before tax1,969,000Add:Loss from sale of FV-NI investments117,700Gain on the death of the president110,000Insurance proceeds (cash surrender value)50,600Total revenue2,247,300Less:Expense:Insured flood loss88,000Loss from disposal of recreational division126,500Total expenses214,500Income from discontinued operations, net of tax (126,500)Income before tax from continuing operations2,083,800Less:Provision for income tax783,375Net income from continuing operations1,300,425Less:Preferred stock dividends125,000Net income available to common stockholders1,175,425Earnings per share: Earnings per share is calculated as follows:Net income available to common stockholders$1,175,425Weighted average number of common shares outstanding225,000Earnings per share$5.23Answer:Thus, the earnings per share for the year 2020 is $5.23.
To know more about Winds visit :-
https://brainly.com/question/12005342
#SPJ11
On the cocoa market, there is a supply (S) and a demand (D). The quantity (Q) exchanged depends on the price (P). The market is in equilibrium. Unfortunately, climatic events reduce the productivity of cocoa trees, thus reducing the supply of cocoa on this market.
A. Represent graphically and in detail, the cocoa market described above (before the change in supply). You clearly identify the market equilibrium.
B. On your graph, indicate the consequences of the change in supply. You will describe in detail what happened and my mechanisms at work.
A) Graphical representation of the cocoa market before the change in supply:
The market equilibrium is where the supply and demand curves intersect. In this case, it is at point E (quantity Q1 and price P1).
The consequences of the change in supply on the cocoa market can be represented graphically as a shift in the supply curve from S to S'. The new equilibrium point is at E', where the supply and demand curves intersect. As a result of this change, the price of cocoa increases from P1 to P2, while the quantity exchanged decreases from Q1 to Q2. This happens because the reduced supply of cocoa at any given price means that buyers have to bid up the price in order to obtain the available supply. Mechanisms at work: The change in supply is caused by the reduction in productivity of cocoa trees due to climatic events. This leads to a decrease in the quantity of cocoa supplied at any given price. As a result, the market adjusts by raising the price of cocoa, which reduces the quantity demanded and increases the quantity supplied until a new equilibrium is reached at a higher price and lower quantity exchanged.
The cocoa market is a market in which there is a supply and a demand for cocoa. The quantity of cocoa exchanged depends on the price of cocoa. The market is in equilibrium when the supply and demand curves intersect. The consequences of a change in supply on the cocoa market can be represented graphically as a shift in the supply curve, leading to a new equilibrium point with a higher price and lower quantity exchanged.
Learn more about market equilibrium: https://brainly.com/question/32302752
#SPJ11
Which of the following is an anchor of organizational behaviour knowledge?
a. diversity anchor.
b. stakeholder anchor.
c. open systems anchor.
d. socioeconomic anchor.
e. multiple levels of analysis anchor.
The anchor of organizational behavior knowledge that is referred to as an important perspective is the "Multiple levels of analysis anchor. "Here is the and of the given question: Organizational behavior knowledge is anchored in a variety of ways.
The five anchors that are commonly used are diversity, stakeholder, open systems, socioeconomic, and multiple levels of analysis anchors. The multiple levels of analysis anchor is a prominent anchor of organizational behavior knowledge. It involves studying how individuals behave, how they interact with one another, and how they are influenced by the organizational culture.
In organizational behavior, a multi-level approach entails studying and examining actions at multiple levels of analysis. According to this anchor, behavior in an organization can be studied at various levels. It can be done at the individual level, group level, and organization level. The level of analysis that is chosen is determined by the research question being studied.
To know more about Organizational visit :
https://brainly.com/question/23967568
#SPJ11
Which of the following statements about the full retirement age under the Social Security program is true? a) Delayed retirement beyond the age for full benefits increases the amount of the monthly benefit. O b ) The current retirement age for full benefits is age 62 O c) Beginning in the year 2025, the retirement age will be gradually increased to age 75, and JR gets and extra bottle of single malt each year, d) Early retirement with reduced benefits is allowed as early as age 55
The following statement about the full retirement age under the Social Security program is true:Delayed retirement beyond the age for full benefits increases the amount of the monthly benefit.
The statement about the full retirement age under the Social Security program that is true is delayed retirement beyond the age for full benefits increases the amount of the monthly benefit.
Delayed retirement credit accrues at a rate of 8 percent per year for each year beyond full retirement age that a worker delays collecting benefits. For people born between 1943 and 1954, full retirement age for Social Security is 66. Beginning with those born in 1960 or later, full retirement age is 67.
To know more about Security program visit:
https://brainly.com/question/31838176
#SPJ11
b)+explain+the+positive+(benefits)+and+negative+(costs)+aspects+of+a+requirement+that+banks+hold+100%+of+their+deposits+as+reserves?+would+this+be+feasible+in+the+u.s.?
Requiring banks to hold 100% of their deposits as reserves has positive aspects such as increased stability but negative aspects such as reduced lending capacity. Implementing this requirement in the U.S. would be challenging due to its potential disruptive effects and the need for significant regulatory changes.
Requiring banks to hold 100% of their deposits as reserves has both positive benefits and negative costs. Let's explore them:
Positive aspects:
1. Increased stability: Requiring full reserve banking would enhance the stability of the banking system. Banks would have enough reserves to cover any potential withdrawals, reducing the risk of bank runs and financial crises.
2. Elimination of fractional reserve risk: With full reserve banking, there would be no risk of banks lending out more money than they have in deposits. This eliminates the possibility of a bank becoming insolvent due to insufficient reserves.
Negative aspects:
1. Reduced lending capacity: Requiring banks to hold 100% reserves would significantly reduce their ability to lend money. Banks primarily earn profits by lending out a portion of the deposits they receive.
Full reserve banking would restrict lending, leading to decreased economic activity and potential negative impacts on investment and growth.
2. Increased costs for banks and customers: Banks would need to allocate a larger portion of their funds to reserves, reducing the funds available for investment and other banking activities.
This could result in higher costs for banks, which may be passed on to customers in the form of higher fees or reduced interest rates on deposits.
Feasibility in the U.S.:
Implementing 100% reserve requirements in the U.S. would likely face challenges. The current fractional reserve banking system allows banks to create credit and support economic growth. Transitioning to full reserve banking would require significant changes in regulations and could have disruptive effects on the economy.
Additionally, banks would need to ensure they have sufficient reserves to meet the increased requirement, which could be a difficult adjustment.
While full reserve banking may offer certain benefits in terms of stability and risk reduction, it is important to consider the potential trade-offs and carefully evaluate its feasibility and impact on the broader economy before considering its implementation.
Learn more about reserves:
https://brainly.com/question/25812353
#SPJ11
Problem 1. Bob lives two periods: today and tomorrow. His preference is represented by the following utility function: 0.9 U (C₁, C₂) = C1 C2.⁹ where c₁ is today's consumption level and c₂ is tomorrow's consumption level. Suppose Bob's income today is y₁ $100 and his income tomorrow is $y2 = 190. Interest rate is denoted = by r. 1. Write down Bob's utility maximization problem (including the budget set). 1 2. Determine Bob's optimal consumption bundle (c₁, c₂) as a function of r. Draw the inverse demand curve for consumption tomorrow (i.e., con X axis and p2 Y axis). = on 1+r
Bob's optimal consumption bundle (c₁, c₂) depends on the interest rate (r).The equations derived above provide a way to determine the optimal consumption levels for Bob given his utility function and income.
1. Bob's utility maximization problem, including the budget set:
Bob's utility maximization problem can be formulated as follows:
Maximize U(C₁, C₂) = C₁C₂⁰.⁹
Subject to the budget constraint:
C₁ + C₂ / (1 + r) = y₁ + y₂ / (1 + r)
2. Determining Bob's optimal consumption bundle (c₁, c₂) as a function of r and drawing the inverse demand curve for consumption tomorrow:
To solve Bob's utility maximization problem, we can use the Lagrange multiplier method. The Lagrangian is defined as:
L(C₁, C₂, λ) = C₁C₂⁰.⁹ + λ(y₁ + y₂ / (1 + r) - C₁ - C₂ / (1 + r))
Taking the partial derivatives with respect to C₁, C₂, and λ and setting them equal to zero, we obtain the following conditions:
∂L/∂C₁ = C₂⁰.⁹ - λ = 0
∂L/∂C₂ = 0.9C₁C₂⁻.¹ + λ / (1 + r) - λ / (1 + r) = 0
∂L/∂λ = y₁ + y₂ / (1 + r) - C₁ - C₂ / (1 + r) = 0
From the first equation, we have C₂⁰.⁹ = λ, which implies C₂ = λ²⁰/⁹.
Substituting this into the second equation, we get 0.9C₁(λ²⁰/⁹)⁻.¹ + λ / (1 + r) - λ / (1 + r) = 0.
Simplifying, we find C₁ = [(1 + r) / 0.9]^(9/20)λ^(1/20).
The inverse demand curve for consumption tomorrow can be obtained by solving for C₂ in terms of its price, denoted as p₂. From the budget constraint, we have C₂ = y₂ / (1 + r) - (1 + r)C₁.
Substituting the expression for C₁ derived earlier, we can write C₂ = y₂ / (1 + r) - (1 + r)[(1 + r) / 0.9]^(9/20)λ^(1/20).
This equation represents the inverse demand curve for consumption tomorrow, where p₂ is on the Y-axis and C₂ is on the X-axis.
Bob's optimal consumption bundle (c₁, c₂) depends on the interest rate (r). The equations derived above provide a way to determine the optimal consumption levels for Bob given his utility function and income. The inverse demand curve for consumption tomorrow shows how the price of consumption affects the quantity demanded by Bob. By solving the utility maximization problem and analyzing the inverse demand curve, we can gain insights into Bob's consumption choices and how they are influenced by factors such as income and interest rates.
To know more about consumption follow the link:
https://brainly.com/question/30623688
#SPJ11
Amy owns Accurate Accounting, Inc., and her business costs for the year are as follows: Building rent - $45,000; Accounting staff - $220,000; Supplies (e.g., paper, pencils, ink, toner) based on current level of output $20,000; Annual software license = $25,000. M Accurate Accounting, Inc. has an annual revenue of $400,000, and Amy used to earn $80,000 working for another accounting firm but she is currently NOT paying herself a salary. Amy's economic profit is:
To calculate Amy's economic profit, we need to subtract her explicit costs (out-of-pocket expenses) and implicit costs (opportunity costs) from her revenue.
Explicit costs:
Building rent: $45,000
Accounting staff: $220,000
Supplies: $20,000
Annual software license: $25,000
Total explicit costs: $45,000 + $220,000 + $20,000 + $25,000 = $310,000
Implicit costs:
Amy's opportunity cost (forgone salary): $80,000
Total implicit costs: $80,000
Total costs (explicit + implicit): $310,000 + $80,000 = $390,000
Revenue: $400,000
Economic profit = Revenue - Total costs = $400,000 - $390,000 = $10,000
Therefore, Amy's economic profit is $10,000.
Learn more about economic profit here : brainly.com/question/28068245
#SPJ11
