A hedging strategy for a 50 mil US government bond portfolio containing bonds ranging in duration from 5 to 10 years with an overall duration of 6.7 and utilizing the 5 year T-Note future with a duration of 3.75 and the 10 year T-Note future with a duration of 7.8 is structured for a Canadian export business selling to Europe.
The Canadian export business sells to Europe and therefore receives payment in Euros, which it will use to pay down US dollar bonds that are part of its 50 mil US government bond portfolio. The business is required to hedge at least 60% of this portfolio since interest rates are expected to continue to rise. The business will use a combination of short and long futures contracts to hedge. The 5 year T-Note future and 10 year T-Note future have contract sizes of 100,000 face value x price, and 107,045 and 111,125 respectively.
The company is concerned about the possible depreciation of the Canadian dollar in the next few months and therefore needs to construct a hedging strategy using futures contracts for both the Euro and Canadian dollar.
To hedge against a fall in the Euro against the US dollar, the company will purchase Euro futures contracts, since it is receiving payment in Euros. Each Euro futures contract has a contract size of E150,000. The calculation of the number of contracts required is as follows:
Total amount of receivables in Euros (E300,000) x the percentage of portfolio that requires hedging (60%) = E180,000. The E180,000 will be divided by the contract size of each Euro future (E150,000) to obtain the number of contracts required. The number of contracts is 1.2. Since the number of contracts cannot be fractional, the business will purchase two Euro futures contracts.
To hedge against a fall in the Canadian dollar, the company will sell Canadian dollar futures contracts. Each Canadian dollar futures contract has a contract size of C$100,000. The calculation of the number of contracts required is as follows:
The total US dollar amount of the bond portfolio to be hedged (60% of $50 mil = $30 mil) divided by the contract size of each Canadian dollar futures contract (C$100,000) to obtain the number of contracts required. The number of contracts is 300.
Thus, the Canadian export business will sell 300 Canadian dollar futures contracts and buy two Euro futures contracts to hedge its bond portfolio against interest rate increases and currency fluctuations.
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How can tracking income and expenses influence future financial decisions?
In reality, by assisting individuals in developing better saving and budgeting practices, financial planning may have a significant positive influence on lower-income households.
What is the process of financial planning?It is a long-term strategy for effectively handling your money so that you may attain your goals and objectives while also overcoming the financial obstacles that invariably appear at every stage of your life.
Goals must first be set before a strong financial strategy can be developed.
Why is having a financial plan crucial?A financial plan serves as a roadmap for your financial future. In essence, it assists you in maintaining control over your earnings, outlays, and assets so that you may manage your finances and accomplish your goals.
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Which of the following is a benefit that an employer might offer?
A. life insurance
B. “Take Your Child to Work” Day
C. a flexible spending account
D. supportive workplace
E. free lunch from local deli on Fridays
I think that the right answer is A
A benefit that an employer might offer to his employees is life insurance. Thus the correct option is A.
What is the importance of benefits provided by employers?
The benefit provided by the employer to employees makes them feel delighted with the organization. They will feel satisfied as the organization cares for its employees.
They will feel appreciated for the work they did and feel valued that their efforts are recognized by the employer for the growth of the organization.
Offering benefits to employees will lead to an increase in their productivity and boost their morale which helps them to gain encouragement and they will feel like the organization thinks about their health and well-being.
The benefits like life insurance provide security to the health of an employee for a lifetime and help them with health benefits that can last long after the job as well.
Therefore, option A is appropriate.
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with respect to the question of when should the firm stop investing, which of the following describes the exact point of optimal investment? where the marginal benefit of the next investment is equal to the marginal costs of that investment where marginal profit of the next investment is greater than the marginal profit of the previous investment where marginal profit of the next investment is positive where the agency costs associated with investment is minimized where the risk associated with the next investment is minimized
The following which describes the exact point of the optimal investment is where the marginal benefit of the next investment is equal to the marginal costs of that investment option A.
The ideal balance of hazardous assets is independent of wealth, noncapital income, age, and consumer impatience, according to the best investing methods. Furthermore provided are the necessary and adequate conditions for long-term capital growth.
One of the three basic order types you'll see on the market are stop, market, and limit orders. A stop order is always carried out in the price's direction of movement. For instance, the stop order is intended to sell at a predetermined price below the going market price if the market is trending lower. If the price is going up, on the other hand, the stop order will be to purchase when the security reaches a predetermined price higher than the current market price.
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Complete question:
With respect to the question of when should the firm stop investing, which of the following describes the exact point of optimal investment?
where the marginal benefit of the next investment is equal to the marginal costs of that investment where marginal profit of the next investment is greater than the marginal profit of the previous investment where marginal profit of the next investment is positive where the agency costs associated with investment is minimized where the risk associated with the next investment is minimizedDiscuss whether or not growth of an industry will increase the profit earned by the firms in the industry.
Answer: Definitely, the larger the market, the larger the demand, the higher the profit. In some cases where the market is large, the producers may not meet up on some occasions, this make other producers to actually increase their profit margin based on they have to increase production.
Explanation:
Industries have their various activities, competition, customers (both prospective and existing). A growth in industry would mean that there is a larger demand for what is been sold in that industry, and when the demand is high, their would be lack, which would create that gap and allow marketers or producers get more profit, based on the high demand now. Definitely, the larger the market, the larger the demand, the higher the profit. In some cases where the market is large, the producers may not meet up on some occasions, this make other producers to actually increase their profit margin based on they have to increase production.
the principal of a mortgage loan is the
a. down payment minus the closing costs minus the purchase price
b. purchase price plus the closing costs minus the down payment
c. down payment plus the closing costs plus the down payment
d. purchase price minus the closing costs minus the down payment
The down payment less the closing charges less the purchase price is the mortgage loan's principle.
What does a mortgage look like in its simplest form?When you enter into a mortgage with a lender, you give the lender the right to seize the property if they are unable to make the loan amount back plus the interest. You might be able to get a mortgage loan that will enable you buy a new house using the worth of the an existing home as security.
Why do individuals use mortgages?Mortgage loans assist people in financing the purchase of real estate by taking a small portion of the property's overall worth as payment. How Do Mortgages Work A mortgage is a loan used to pay for the upkeep of a home, piece of land, or other kinds of rental properties.
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Which of the following does NOT represent a typical way in which firms organize their international activities? A) domestic structure plus export department B) matrix structure C) domestic structure plus foreign subsidiary D) regional structure
The one that does NOT represent a typical way in which firms organize their international activities is the domestic structure plus export department (Option A). This option implies that the firm operates primarily in the domestic market and only exports its products to international markets through a separate export department.
The other options (B, C, and D) all involve a more integrated approach to international operations. The matrix structure (Option B) involves organizing employees by both function and geographic region, allowing for greater coordination between domestic and international operations. The domestic structure plus foreign subsidiary (Option C) involves establishing a subsidiary in a foreign country to conduct business in that region, while still maintaining a separate domestic structure. The regional structure (Option D) involves organizing employees by geographic region rather than by function, allowing for greater specialization in each region.
In summary, while the domestic structure plus export department may have been a typical way in which firms organized their international activities in the past, it is no longer sufficient for many companies operating in the global marketplace. Options B, C, and D represent more advanced and integrated approaches to international business operations.
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which job evaluation method begins by comparing benchmark jobs and then uses both point factors and ranking?
Factor comparison is the which job evaluation method begins by comparing benchmark jobs and then uses both point factors and ranking.
Which technique for work assessment utilizes benchmarking?
Occupations with comparative obligations inside the association are distinguished to set benchmarks. Recognizable elements for the benchmark occupations are positioned during factor examination and afterward are contrasted with market rates to relegate a money related worth to each compensable factor.
Which technique for work assessment utilizes benchmarking?
Factor comparisonWhat are the two kinds of benchmarking and when are they utilized?
There are two essential sorts of benchmarking: Inward benchmarking: examination of practices and execution between groups, people or gatherings inside an association. Outer benchmarking: examination of hierarchical execution to industry peers or across ventures.
Occupations with comparable obligations inside the association are distinguished to set benchmarks. Recognizable variables for the benchmark occupations are positioned during factor examination and afterward are contrasted with market rates to relegate a financial worth to each compensable factor.
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Hammerhead Charters runs fishing trips out of the local port. Hammerhead charges $60 per trip for a half-day trip. Variable costs for Hammerhead total $25 per trip and the fixed costs are $13,650 per month. Hammerhead is subject to an income tax rate of 20 percent.
Required:
a. How many trips must Hammerhead sell to break even?
b. How many trips must Hammerhead sell to earn a monthly operating profit of $17,500 after taxes?
The number of trips Hammerhead must sell to earn a monthly operating profit of $17,500 after taxes is approximately 401 trips. To determine the number of trips Hammerhead must sell to break even, we need to calculate the total cost per trip. The total cost per trip is the sum of the variable cost and the portion of the fixed costs that is attributed to each trip.
Variable costs per trip are given as $25. To find the portion of fixed costs per trip, we divide the fixed costs by the number of trips.
Fixed costs per trip = Fixed costs / Number of trips
Fixed costs per trip = $13,650 / Number of trips
Now, the total cost per trip is the sum of the variable costs per trip and the fixed costs per trip.
Total cost per trip = Variable costs per trip + Fixed costs per trip
Total cost per trip = $25 + ($13,650 / Number of trips)
To break even, the revenue from selling trips must cover the total costs. The revenue per trip is $60.
Revenue per trip = $60
Setting the revenue equal to the total cost per trip, we can solve for the number of trips to break even.
Revenue per trip = Total cost per trip
$60 = $25 + ($13,650 / Number of trips)
Solving this equation, we find that the number of trips Hammerhead must sell to break even is approximately 326 trips.
To determine the number of trips Hammerhead must sell to earn a monthly operating profit of $17,500 after taxes, we need to consider the taxes and the desired profit.
After-tax profit = Desired profit / (1 - Tax rate)
After-tax profit = $17,500 / (1 - 0.20)
After-tax profit = $17,500 / 0.80
After-tax profit = $21,875
The total cost per trip remains the same, but the revenue per trip needs to cover the after-tax profit as well.
Revenue per trip = Total cost per trip + After-tax profit per trip
$60 = $25 + ($13,650 / Number of trips) + ($21,875 / Number of trips)
Solving this equation, we find that the number of trips Hammerhead must sell to earn a monthly operating profit of $17,500 after taxes is approximately 401 trips.
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When can cool product
be combined with other cool product
Answer:
In what ways are COOL commodities covered? COOL information must be provided at the point of sale for covered commodities. We offer fresh and frozen fruits and vegetables; wild & farm-raised fish and shellfish; muscle cut and ground chicken, lamb, and goat meat; raw peanuts, pecans, and macadamia nuts; and ginseng.
Please give brainliest, really appreciated.
The main goal of the ________ is to motivate employees to improve team- or company-level efficiency.
Answer:
ProMES
Explanation:
Xylon Corp. has contracts to complete weekly supplements required by forty-six customers. For the year 2015, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 10 million pages. For 2015, Xylon decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost pool Manufacturing overhead costs Activity level Design changes $ 120,000 200 design changes Setups 640,000 4,000 setups Inspections 80,000 16,000 inspections Total manufacturing overhead costs $840,000 During 2015, two customers, Money Managers and Hospital Systems, are expected to use the following printing services: Activity Money Managers Hospital Systems Pages 60,000 76,000 Design changes 10 2 Setups 20 10 Inspections 38 30 11) If manufacturing overhead costs are considered one large cost pool and are assigned based on 10 million pages of production capacity, what is the cost driver rate? Under ABC costing, what is the inspection cost allocated to Money Managers?
Answer:
the cost per overhead rate and the inspection cost allocation is $0.08 per page and $190 respectively
Explanation:
The computation is shown below;
The cost per overhead rate is
= $840,000 ÷ 10,000,000
= $0.08 per page
The inspection cost allocated to Money Managers is
= $80,000 ÷ 16,000 × $38
= $190
hence, the cost per overhead rate and the inspection cost allocation is $0.08 per page and $190 respectively
The same would be considered and relevant too
A trust fund is to be formed by depositing $4,000 every six months for 25 years in a bank that promises to pay a fixed rate over the entire term. If the amount of the fund at the end of the term is $300,000, then the rate compounded semi-annually is A) 3.14%. B) 1.57%. Continue 20.40%. D) 10.20%. E) 33.33%. Suppose you are a beneficiary designated to immediately receive P14912 each year for 11 years, earning an annual interest rate of 496. The future value of the stream of income payments is Round your answer to 2 decimal places
The future value of the stream of income payments is P225,858.36. To find the rate compounded semi-annually for the trust fund, we can use the formula for compound interest:
Future Value = Present Value * (1 + r/n)^(nt)
Where:
Future Value = $300,000 (the amount of the fund at the end of the term)
Present Value = $4,000 (the deposit every six months)
r = the interest rate (to be determined)
n = number of compounding periods per year (2 for semi-annual compounding)
t = number of years (25)
Substituting the given values into the formula, we have:
$300,000 = $4,000 * (1 + r/2)^(2 * 25)
Simplifying the equation, we get:
(1 + r/2)^50 = 75
Taking the 50th root of both sides to isolate (1 + r/2), we have:
1 + r/2 = 75^(1/50)
Solving for r, we find:
r/2 = (75^(1/50)) - 1
r = 2 * [(75^(1/50)) - 1]
Using a calculator, we find that r ≈ 3.14%.
Therefore, the rate compounded semi-annually for the trust fund is approximately 3.14%. Hence, the correct answer is A) 3.14%.
Regarding the second question, to find the future value of the stream of income payments, we can use the formula for the future value of an annuity:
Future Value = Payment * [(1 + r)^n - 1] / r
Where:
Payment = P14,912 (annual payment)
r = 4.96% (interest rate of 496 converted to decimal)
n = 11 (number of years)
Substituting the given values into the formula, we have:
Future Value = P14,912 * [(1 + 0.0496)^11 - 1] / 0.0496
Using a calculator, we find that the future value of the stream of income payments is approximately P225,858.36.
Therefore, the future value of the stream of income payments is P225,858.36.
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If you were paid $952 today, and you invested it at a 5% interest rate, how much would you have a year from now?
$900
O a
$952
b.
$985
Oc.
$1000
d
None of these
e
Answer:
Depends on if its simple or compund bu since your investing to earn, ill estimate they want the compound answer which is 999.60 which can be rounded to $1000. If they want it rounded, its $1000 if they dont, it's none of the above
Explanation:
A=P(1+r)t
A=952(1+0.05)1
A=952(1.05)1
A=952(1.05)
A=952x1.05
A=999.60 which can be rounded to 1000
Enhancing the capacity requires a long time, a following strategy may be the best option.
Select one:
a. True
b. False
A capacity-building strategy should include a long-term, systematic plan for developing, mobilizing, and sustaining capacity, as well as specific activities and approaches to achieve capacity goals. Therefore, enhancing the capacity requires a long time, and a following strategy may be the best option.
The given statement "Enhancing the capacity requires a long time, a following strategy may be the best option" is true. Explanation:Enhancing the capacity is not a quick process and requires a long time. The development of personal or organizational capacities is a complex and time-consuming process that necessitates continuous effort and a variety of initiatives and approaches. As a result, it is critical to have a strategy in place to ensure that these initiatives are integrated, efficient, and optimized. A capacity-strategy should include a long-term, systematic plan for developing, mobilizing, and sustaining capacity, as well as specific activities and approaches to achieve capacity goals. Therefore, enhancing the capacity requires a long time, and a following strategy may be the best option.
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Do you think calling an employee a subordinate will impact their motivation levels?
(GIVE ME A PROS AND CONS)
Answer:
I believe that referring to the employee as a subordinate can negatively affect the employee's motivation levels.
Explanation:
Although an employee is subordinate to the company owner, or to other high-ranking employees, such as a manager, for example. Referring to the employee as a subordinate can negatively affect the employee's motivation and productivity. This is because this word can pass a tone of devaluation, where the employee can understand that he is not esteemed and necessary within the company. The feeling of irrelevance, can leave the employee saddened and unwilling to do his best work within the institution.
1. You deposit $5000 each year into an account earning 5% interest compounded annually. How much will you have in the account in 35 years?
$________
2. You deposit $400 each month into an account earning 7% interest compounded monthly.
a) How much will you have in the account in 20 years?
$______
b) How much total money will you put into the account?
$___________
c) How much total interest will you earn?
$_______________
3. You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?
$___________
PLEASE HELP ME IM STRUGGLING IN THIS PLEASE I DON'T WANT TO FAIL. LAST PERSON ANSWERED WRONG PLEASE HELPPP THANK YOU
1. You deposit $5000 each year into an account earning 5% interest compounded annually. How much will you have in the account in 35 years?
The formula for calculating the future value of an annuity is:FV = PMT × (((1 + r)n - 1) / r), where:FV = Future Value of the AnnuityPMT = Amount Deposited each Yearr = Interest Rate Per Periodn = Number of PeriodsFor the given problem, the amount deposited each year (PMT) is $5000, the interest rate (r) is 5% and the number of periods (n) is 35.
We need to calculate the future value (FV) of the annuity.So, we get:FV = $5000 × (((1 + 0.05)35 - 1) / 0.05)FV = $5000 × (((3.386) / 0.05))FV = $5000 × 67.72FV = $338,581.74Therefore, the amount in the account after 35 years will be $338,581.74. 2.
You have $400,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 25 years?To find out the amount you can withdraw each month, we can use the formula for Present Value of an Annuity, which is given as:PV = PMT x ((1 - (1 + r)-n) / r), where:PV = Present Value of Annuity
PMT = Amount of each paymentr = Interest rate per periodn = Number of periodsWe are given that the amount in the account is $400,000, the interest rate (r) is 7% and the number of periods (n) is 25 x 12 = 300 months. We need to calculate the amount that can be withdrawn each month (PMT).
So, we get:$400,000 = PMT x ((1 - (1 + 0.07)-300) / 0.07)Simplifying this equation gives:PMT = $400,000 / ((1 - (1 + 0.07)-300) / 0.07)PMT = $2,864.49Therefore, you will be able to withdraw $2,864.49 each month for 25 years.
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1. What is 3-period moving average?
2. Calculate the MAD in each forecast and determine which method is more accurate.
Weighted 3-period moving average using 0. 5 for the most recent period, 0. 3 for the second recent period, and 0. 2 for the third recent period. Calculations of weighted moving averages for the year 2021
=1340×(0. 5+0. 3+0. 2)
=1340×(1)
=1340
Calculations of weighted moving averages for the year 2020
=1060×(0. 5+0. 3+0. 2)
=1060×(1)
=1060
Calculations of Weighted Moving Averages for 2019 =640×(0. 5+0. 3+0. 2) =640×(1) =640
EXHIBIT 1: AVERAGE ORBER PRICAC Note: *Average total order includes the cost of delivery: "Snacks cost uMunch an avarage of $4 per Source: Company files EXHIBIT 2: PROJECTED TOTAL MONTHLY APP ORDERS EXHIBIT 1: AVERAGE ORDER PRICING Note: "Average total order includes the cost of delivery; "*Snacks cost uMunch an average of $4 per person. Source: Company files EXHIBIT 2: PROJECTED TOTAL MONTHLY APP ORDERS
We can see here that the 3-period moving average is a simple forecasting technique that calculates the average of a variable over a specific period of time.
What is MAD?MAD stands for Mean Absolute Deviation. It is a statistical measure used to quantify the dispersion or variability of a set of data points. The MAD provides information about the average absolute difference between each data point and the mean of the dataset.
All values
Period 3 (2021) = 1340
Period 2 (2020)= 1060
Period 1 (2019) = 640
Mean average = 1340 + 1060 + 640 = 3040/3 = 1013.33
1340 - 1013.33 = 326.7
1060 - 1013.33 = 46.7
640 - 1013.33 = - 373.3
Thus, MAD = 326.7 + 46.7 - 373.3 = 0.1
= 0.1/3 = 0.0333.
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The ______ strategy of a company is concerned with the individual business units or production and service lines of the business.
The Business level strategy of a company is concerned with the individual business units or production and service lines of the business.
What is Business level strategy?Business-level strategies can be described as the strategy that is been used by the company or firms so as to be able to fit in competing in a given industry.
It should be noted that the Firms can get that strategies by executives making decisions which involves having a way to have competitive advantage on other competitors in the market, hence Business level strategy of a company is concerned with the individual business units or production and service lines of the business.
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Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,000 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $65,600 for inventory, $20,400 in salaries and wages, and another $3,100 in taxes. Colorado paid $5,600 in cash dividends.
Required:
1. Prepare a statement of cash flows for the year.
2. What does this statement tell you that an income statement does not?
Based on the given figures for Colorado Corporation, the statement of cash flows for the year would be:
Cash flow for Operating Activities
Cash from customers 93,970
Less:
Cash for inventory 65,600
Salaries and Wages 20,400
Taxes 3,100 ( 89,100)
Net Cash from Operating Activities 4,870
Cash flow from Investing Activities
Purchase of office building (210,000)
Net cash used for Investing Activities (210,000)
Cash flow from Financing Activities
Issuance of Common stock 250,000
Note Payable 60,000
Dividend payment (5,600)
Net cash from Financing Activities 304,400
Net increase in cash 99,270
Opening cash balance 0
Closing cash balance 99,270
What does the statement of cash flows show?It shows transactions that involve actual cash being spent or gained by the company.
This allows Colorado Corporation to know the actual amount of cash it has for operations.
An Income statement on the other hand, shows the transactions that a business gets involved in regardless of whether they involve actual cash or not. This means that it cannot show the actual amount of cash that a business has.
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Why is Netflix's stocks going down?
Answer:
Netflix stock was falling sharply Wednesday after the streaming giant posted disappointing first-quarter earnings, prompting a flurry of price target cuts and critique from analysts.
Explanation:
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A firm can try to protect and sustain its competitive advantage by making it costly for rivals to imitate its capabilities.- True- False
Answer: A firm can try to protect and sustain its competitive advantage by making it costly for rivals to imitate its capabilities, is a completely true statement.
Explanation: This may be accomplished in a number of ways, including spending money on R&D, developing a strong brand identity, forming exclusive collaborations, developing an original and challenging-to-copy business strategy, and protecting intellectual property rights. A company can keep its competitive edge and lessen the danger of competition by making it costly and difficult for rivals to copy its skills.
Transworld Deliveries is expanding its contract home delivery service into the Northeastern United States. The company anticipates that to accommodate this expansion it will need between 35 and 80 staffed delivery vehicles. Transworld is currently moving 35 of its own vehicles, with drivers, into the Northeast. The daily cost of operating its own fleet is $730 per vehicle, while the daily cost of leasing a vehicle and driver is expected to be $1,300 per vehicle. Using an expected value approach, should Transworld purchase additional vehicles and hire additional drivers? If so, how many would you recommend?
Question Completion:
Demand Requirements (in vehicles)
Requirements 20 35 50 80
Probability 0.35 0.15 0.1 0.4
Answer:
Transworld Deliveries
1. Transworld Deliveries should purchase additional vehicles and hire additional drivers.
2. I recommend 14 new vehicles with drivers to bring the number from 35 vehicles to 49 vehicles.
Explanation:
a) Data and Calculations:
Vehicles requirements (Range) 35 and 80
Own Vehicles being moved = 35
Cost of own fleet = $730 per vehicle
Cost of leasing = $1,300 per vehicle
Decision: Purchase additional vehicles or
Lease additional vehicles
Expected Vehicles Required:
Requirements 20 35 50 80
Probability 0.35 0.15 0.1 0.4
Expected value 7 5 5 32
Total expected number of vehicles required = 49
Additional vehicles required = 49 - 35 = 14
Cost of leasing additional vehicle = 14 * $1,300 = $18,200
Cost of purchasing vehicles and hiring additional drivers = $730 * 14 = $10,220
Difference in costs = $18,200 - $10,220 = $7,980
required return if the risk-free rate is 8.0 percent and the market risk premium is 2.0 percent, what is the required return for the market? multiple choice 6.0% 2.0% 10.0% 8.0%
Required return for the market is 10%.
The difference between the anticipated return on a market portfolio and the risk-free rate is known as the market risk premium (MRP).
Thus, market risk premium = market return - risk free rate
Thus, market return = risk premium + risk-free rate
It is given that risk free rate is 8% and market risk premium is 2%
Thus, market return = risk premium + risk-free rate
market return = 2% + 8%
= 10%
Thus, market return is 10%
Thus, option C is the correct option
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which best deceived the nature of cause and effect in the context of the business cycle?
A. Each effect has other effects
B. Causes and effects cannot be easily defined
C. A cause has multiple independent effects
D. Each effect has a cause
how is apple investor relations?
Apple also has a dedicated investor relations website, which provides a wealth of information for investors, including financial statements, annual reports, and other relevant information.
In the case of Apple, the company has a well-established investor relations program that is designed to provide timely and accurate information to its shareholders. This includes regular earnings calls, where executives discuss the company's financial results and answer questions from analysts and investors.
The company also holds an annual shareholder meeting, where investors have the opportunity to ask questions and vote on important issues.
By having strong investor relations, a company like Apple is able to build trust and confidence with its investors. This can lead to increased investment in the company, as investors feel more comfortable putting their money into a company that is transparent and open about its operations.
In addition, strong investor relations can also help a company weather difficult times. For example, if a company experiences a decline in stock price or faces negative publicity, having a strong investor relations program can help reassure investors that the company is still on solid footing.
From a mathematical standpoint, it's important to note that a company's investor relations can have a significant impact on its stock price.
On the other hand, a company with strong investor relations may see its stock price rise, as investors feel more confident in the company's ability to generate returns.
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frederick taylor believed that more efficient workers should be paid higher wages than their lower-performing coworkers, a system referred to as the
Answer:
piece rate system
Explanation:
Piece-rate, or piecemeal pay, means that employees are paid by the unit when completing a particular task, for instance, bushels harvested, trees pruned, or acres mowed. In this case, a worker is compensated by individual output and not by an hourly rate.
Moneygrabber mutual fund gains 25% in year one and loses 20% in year two. What is its
actual annual return?
O-5%
0%
5%
10%
The actual annual return of Money grabber mutual fund is 0%. The appropriate response is option B.
What is mutual fund?A corporation that pools money from several people and invests it in securities like stocks, bonds, and short-term debt is known as a mutual fund. The portfolio of a mutual fund refers to all of its holdings. Mutual fund shares are purchased by investors. Each share reflects a shareholder's ownership interest in the fund and the revenue it produces.
The mutual fund gains 25% in year one and loses 20% in year two, thus the average annual rate of return is 2.5%. The actual annual rate is 0%.
The appropriate response is option B.
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Lilly, Briah, Chloe, and Terry are the directors and equal shareholders of Fantastic Holidayz Pty Ltd, a company that runs an exclusive airline company and operates in several high-rise office buildings in Melbourne. Briah is the Managing Director and Terry is the Chief Financial Officer. Lilly and Chloe are non-executive directors. The Company has adopted a written constitution which contains the following clauses: (36) A directors' meeting may be called by a director giving reasonable notice individually to every other director (37) Quorum for directors' meetings is four directors and the quorum must be always present during the meeting (42) A resolution of the majority of directors may resolve to remove another director of the company. Business is booming, and Fantastic Holidayz has made a great deal of money over the last few years. However, the Board of Directors have rejected Lilly's proposal to declare a dividend for the last 7 years in a row - and she is getting fed up. The other directors always outvote her, arguing that it is better to keep the profits in reserve and continue to expand the business. Terry is currently investigating the possibility of opening further destinations to their itinerary In October 2017 Lilly was overseas for a family funeral and on her return to Melbourne, she discovers that the other directors have met and passed resolutions to remove her as a director of the company. Lilly did not receive any notice of the director's meeting. In another resolution, the remaining directors voted to pay themselves $500,000 in bonuses - equating to the entire year's profit. Lilly is angry that she has been removed and not paid a bonus and comes to you for your professional advice and opinion. Further, Fantastic Holidayz has a longstanding agreement with several travel agencies, and in January 2018, Fantastic's financial accounts showed that one agency owed the company $85,000, and there was no applicable security Recently, Lilly discovered that by June 2018 the debt owing to Fantastic Holidayz had blown out to $200,000. Terry had approved additional credit without the knowledge of the other directors. He did this, even though the agency had been taking a long time to pay its overdue account. Additionally, there are now rumours that are insolvent, but this cannot be proven. REQUIRED: 1. Discuss whether Lilly can bring any action to challenge the other directors' decision to deny dividends for several years and then pay themselves bonuses? (5 marks) 2. Advise Lilly about the process and potential outcomes if the travel agency is placed into voluntary administration - and any implications of this on Fantastic Holidayz. (5 marks) 3. Advise Lilly about whether Terry has breached any of his statutory duties as a director of Fantastic Holidayz. Include in your answer the consequences of a breach of duty, whether Lilly could bring an action for compensation on behalf of the company against Terry, and whether there are any defences available.
It is important for Lilly to consult with a legal professional to assess the specific circumstances and determine the most appropriate course of action. Legal advice tailored to the jurisdiction and applicable laws should be sought.
1. Lilly's Challenge to Dividend Denial and Bonus Payment:
Lilly may have grounds to challenge the other directors' decision to deny dividends for several years and then pay themselves bonuses. The key considerations are as follows:
a) Breach of Fiduciary Duty: Directors owe a fiduciary duty to act in the best interests of the company. By consistently rejecting dividends despite profitable operations, the directors may be breaching this duty if their decision is not justifiable and reasonable. The decision to pay themselves bonuses without Lilly's approval further strengthens her case.
b) Unfair Prejudice: Lilly may argue that the denial of dividends and payment of bonuses unfairly prejudice her interests as an equal shareholder and director. This argument can be supported by the fact that dividends have been consistently denied for several years, and the bonuses were paid without her knowledge or consent.
c) Oppression of Minority Shareholder: If the other directors' actions substantially interfere with Lilly's rights as a shareholder and director, it could constitute oppression of a minority shareholder. Denying dividends and paying bonuses in a manner that excludes Lilly's interests may be viewed as oppressive.
Lilly can potentially bring legal action seeking remedies such as an injunction to stop the bonuses, an order for dividends to be paid, or a buyout of her shares at a fair value.
2. Travel Agency in Voluntary Administration:
If the travel agency owing $200,000 to Fantastic Holidayz is placed into voluntary administration, the process and potential outcomes can be summarized as follows:
a) Voluntary Administration: Voluntary administration is a process where an external administrator (usually a registered liquidator) takes control of the insolvent company to maximize returns for creditors. The administrator assesses the company's financial position and explores options, such as restructuring or selling the business.
b) Outcomes and Implications: During voluntary administration, the administrator may propose a Deed of Company Arrangement (DOCA) to the creditors. If approved, it could allow the travel agency to continue operating and repay the debt over an agreed period. Alternatively, if the company's financial situation is deemed irreparable, the administrator may recommend liquidation.
For Fantastic Holidayz, the outcome depends on the recovery of the debt. If the travel agency is unable to repay the owed amount, Fantastic Holidayz may have to write off the debt as a loss, potentially impacting their financial position. The impact could be significant if the debt is material to the company's operations.
3. Terry's Breach of Director's Duties:
Terry, as the Chief Financial Officer and a director of Fantastic Holidayz, may have breached his statutory duties. The key considerations are as follows:
a) Duty of Care and Diligence: Directors must exercise reasonable care, skill, and diligence in fulfilling their roles. Terry's approval of additional credit without the knowledge of other directors could be seen as a failure to exercise due care and diligence. The consequences of a breach may include personal liability for any loss suffered by the company.
b) Duty to Act in Good Faith and for Proper Purpose: Directors must act in good faith and in the best interests of the company. By approving additional credit for a customer with an outstanding overdue account, despite potential insolvency concerns, Terry may have breached this duty.
c) Consequences and Action for Compensation: If Terry is found to have breached his statutory duties, consequences may include personal liability for any loss suffered by the company due to his actions. Lilly, as a shareholder, may have standing to bring a derivative action on behalf of the company to seek compensation from Terry for any losses incurred.
d) Defenses: Terry may raise defenses such as relying on professional advice, acting in good faith, or having the belief that his actions were in the company's best interests. However, these defenses may not absolve him entirely from liability if his actions are found to be unreasonable or against the company's interests.
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due to increased incomes, europeans buy more u.s. goods and services. after reading the above scenario, what is most likely to happen to gdp and what component of the expenditure approach will it change?
When due to increased incomes, Europeans buy more US goods and services, the most likely impact on GDP would be an increase in GDP and it would change the component of the expenditure approach called exports.
What is GDP?Gross Domestic Product (GDP) is a fundamental economic indicator that measures the economic output of a country. It is the monetary value of all the goods and services produced by a country over a specific period.
It is an essential tool for understanding the economy of a country.When Europeans buy more US goods and services, it means the demand for the US products increases.
Consequently, the demand for American-made products also increases. This increase in demand leads to an increase in production. When production increases, there is an increase in the number of jobs available, leading to an increase in the income of the people involved, leading to an increase in the country's GDP.
GDP is calculated using various approaches, one of which is the expenditure approach. The expenditure approach measures the gross domestic product by considering the total amount of goods and services purchased by the people, the government, the business, and the foreign sector.
The increase in exports will lead to an increase in the GDP and will change the component of the expenditure approach known as exports.
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your grandmother tells you a dollar doesn't go as far as it use to. she says the "purchasing power" of a dollar is much less than it used to be. explain what she means. try to use and explain terms like inflation and deflation in your answer
Back then. A dollar was worth WAYYYYY more than it is now. back then you could buy a lollipop for a like a penny. However as time went on we went through deflation and prices went down