1. The employee (A) and the employer (B) have to make decisions. A has to choose whether to pursue training that costs $1,200 or not. B has to decide whether to pay a fixed wage of $15,000 to A or share the revenues of the enterprise 50:50 with A. The output is affected by both training and revenue sharing. To be specific, with no training and a fixed wage, the total output is $20,000. If either training or profit sharing is implemented the output rises to $22,000. If both training and revenue sharing are implemented, the output is $25, 000.
(1) Construct the pay-off matrix. (25 points)
(2) Is there any Nash equilibrium? Why? (25 points)

Answers

Answer 1

1) The pay-off matrix can be constructed as follows:

               Employer B
              | Fixed Wage | Revenue Sharing
--------------------------------------------
Employee A     |            |                
No Training    | (15,000,5,000) | (11,000,11,000)
--------------------------------------------
Training       | (13,800,6,200) | (11,900,11,900)

Each entry in the matrix shows the payoff for the employee (A) and the employer (B) under each combination of decisions.

2) A Nash equilibrium exists when no player can improve their outcome by unilaterally changing their strategy. In this case, there is a Nash equilibrium:

No Training and Revenue Sharing: If the employee chooses not to pursue training and the employer chooses revenue sharing, both the employee and the employer receive an 11,000 payoff. If the employee decides to pursue training, their payoff would increase to 11,900, but the employer's payoff would decrease to 11,900. Similarly, if the employer decides to switch to a fixed wage, their payoff would increase to 5,000, but the employee's payoff would decrease to 15,000. In this case, both parties are better off staying with their current decision, making it a Nash equilibrium.

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Related Questions

managers can reduce the need for organizational rules and regulations by hiring the right people, providing training, developing management role models, and creating blank systems. multiple choice question. reward rule-based control corporate governance

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Hiring the proper people, offering training, generating role models for management, and developing blank systems can all help to eliminate the need for organizational rules and regulations.

Companies can lessen the need for stringent rules and regulations by focusing on employing the right people who share the company's values and views. Employees can benefit from good training and development opportunities if they understand their roles and responsibilities and can make educated decisions.

Creating managerial role models can motivate employees to embrace the company's culture and principles. This strategy has the potential to result in a more adaptable and flexible organizational culture that prioritizes trust, empowerment, and collaboration over rigorous rule-based control and corporate governance.

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a. What is the future value of a 6%, 5-year ordinary annuity that pays $550 each year? Do not round intermediate calculations. Round your answer to the nearest cent.
b. If this were an annuity due, what would its future value be? Do not round intermediate calculations. Round your answer to the nearest cent.

Answers

A) The future value of the ordinary annuity is $3,239.09.

B) The future value of the annuity due is $3,449.98.

a. To find the future value of a 6%, 5-year ordinary annuity that pays $550 each year, we can use the formula:

FV = PMT x [(1 + r)^n - 1]/r

Where:

PMT = $550 (the annuity payment)

r = 6%/year = 0.06 (the annual interest rate)

n = 5 (the number of years)

b. If this were an annuity due, the future value would be different. An annuity due is an annuity where the payments are made at the beginning of each period, instead of at the end like in an ordinary annuity. To find the future value of an annuity due, we can use the formula:

FV = PMT x [(1 + r)^n - 1]/r x (1 + r)

Where the additional factor (1 + r) represents the interest earned on the first payment for an extra year.

Using the same values as in part (a), we get:

FV = $550 x [(1 + 0.06)^5 - 1]/0.06 x (1 + 0.06)

FV = $3,449.98

Plugging in these values, we get:

FV = $550 x [(1 + 0.06)^5 - 1]/0.06

FV = $3,239.09

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ceo duality refers to a situation in which the ceo group of answer choices formulates and implements strategies. serves as both the ceo and the chair of the board of directors. is responsible for acting as ceo and serving on the compensation committee. is responsible for acting as ceo and chief operating officer (coo).

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Ceo duality refers to a situation in which the CEO of a company also serves as the chair of the board of directors. This can be problematic because the CEO is responsible for both formulating and implementing strategies, as well as overseeing the board of directors. The option B is the correct answer.



Research has shown that companies with CEO duality are more likely to experience financial underperformance, and are less likely to engage in corporate social responsibility initiatives. In contrast, companies with separate CEO and board chair roles are more likely to make strategic decisions that benefit the company as a whole, and are more accountable to shareholders.However, it is worth noting that not all CEO duality situations are problematic.

In some cases, the CEO may be the best person to serve as the chair of the board, and may have the interests of the company and its shareholders at heart. Ultimately, the key is to ensure that there are appropriate checks and balances in place to prevent conflicts of interest, and to promote transparency and accountability. This can include having an independent lead director, regular board evaluations, and clear guidelines for board and CEO behavior.. This creates a potential conflict of interest, as the CEO may prioritize their own interests over those of the company or shareholders. The option B is the correct answer.

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Question 3 (13 marks) a. The maturity of a futures contract on a stock market index is 1 year. The multiplier for the futures contract $50. The current level of the index is 30,000. The risk-free rate is 0.5% per month and dividend yield on the stock market index is 0.3% per month. The initial margin requirement is 10%. i. What is the parity value of the futures price now? (3 marks) ii. Assume the futures contract is fairly priced. How much initial margin you need to deposit if you long 1 contract? (2 marks) iii. Calculate the two-month holding-period return for your long position in the futures contract if the stock market index increases to 31,000 two months later. Assume the futures contract keeps being priced fairly. (5 marks) b. William sells six July futures contracts on coffee. Each contract is for the delivery of 37,500 pounds. The current futures price is $2.2565 per pound. The initial margin is $9,900 per contract and the maintenance margin is $9,000 per contract. What is the futures price per pound that would lead a margin call? (3 marks)

Answers

A(i) The parity value of the futures price now is $30,303.03.

  (ii)  You would need to deposit 10% of $1,500,000, which is $150,000, as initial margin.

  (iii) The holding-period return is 0.0128 or 1.28%.

B) The futures price per pound falls to -$1.18, a margin call would be triggered.

i.F = S0 * e^((r-d)*T)where F is the futures price, S0 is the current spot price of the index, r is the risk-free rate, d is the dividend yield, and T is the time to maturity of the futures contract in years.

In this case, F = S0 * e^((r-d)*T) = 30,000 * e^((0.005-0.003)*1) = 30,303.03.Therefore, the parity value of the futures price now is $30,303.03.

ii. The initial margin requirement is 10% of the contract value, which is $50 * 30,000 = $1,500,000. Therefore, if you long 1 contract, you would need to deposit 10% of $1,500,000, which is $150,000, as initial margin.

iii. The two-month holding-period return for a long position in the futures contract can be calculated using the formula:

HPR = (F1 - F0 + D) / (F0 + IM)

where HPR is the holding-period return, F1 is the futures price at the end of the holding period, F0 is the initial futures price, D is the total dividend received during the holding period, and IM is the initial margin.

In this case, F0 = 30,303.03, F1 = 31,000, D = 0.003 * 2 * 30,000 = $1,800, and IM = $150,000.

Therefore, the holding-period return is:

HPR = (31,000 - 30,303.03 + 1,800) / (30,303.03 + 150,000) = 0.0128 or 1.28%.

b. To calculate the futures price per pound that would lead to a margin call, we need to use the formula:

F = (MM - V) / Q

where F is the futures price per pound that would lead to a margin call, MM is the maintenance margin per contract, V is the value of the contract, and Q is the quantity of the underlying asset per contract.

In this case, MM = $9,000, V = $2.2565 * 37,500 = $84,468.75, and Q = 37,500. Therefore,

F = (9,000 - 84,468.75) / 37,500 = -$1.18 per pound.

This means that if the futures price per pound falls to -$1.18, a margin call would be triggered. However, it's worth noting that futures prices cannot be negative in reality, and this is only a theoretical calculation based on the formula.

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T/F: a common cause for intentional misstatements is pressure to meet analyst expectations.

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The given statement "a common cause for intentional misstatements is pressure to meet analyst expectations" is true because companies often face pressure to meet or exceed the expectations of financial analysts in order to maintain their stock prices and satisfy investors.

This pressure can lead executives to manipulate financial statements to make the company appear more profitable or successful than it actually is.

Intentional misstatements can include fraudulent accounting practices such as inflating revenues, understating expenses, or manipulating reserves. These misstatements can have serious consequences, not only for the company itself but also for its investors and stakeholders. They can damage the company's reputation, lead to legal and regulatory investigations, and result in financial losses for investors.

To combat this problem, it is important for companies to establish strong ethical standards and internal controls to prevent intentional misstatements. It is also important for investors and financial analysts to exercise due diligence and skepticism when analyzing a company's financial statements, to ensure that they are accurate and reliable.

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having a liability that is fixed in terms of a foreign currency results in a loss for the debtor if the exchange rate falls between the transaction date and the payment date true or false

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The statement "having a liability that is fixed in terms of a foreign currency results in a loss for the debtor if the exchange rate falls between the transaction date and the payment date" is true because the debtor is obligated to pay a certain amount of money in that currency, regardless of any fluctuations in the exchange rate.

Having a liability that is fixed in terms of a foreign currency means that the debtor is obligated to pay a certain amount of money in that currency, regardless of any fluctuations in the exchange rate. If the exchange rate falls between the transaction date and the payment date, the debtor will have to pay more of their own currency to cover the same amount of the foreign currency, resulting in a loss.
When a liability is fixed in terms of a foreign currency and the exchange rate falls between the transaction date and the payment date, it means that the debtor's home currency has weakened compared to the foreign currency. In this scenario, the debtor will have to spend more of their home currency to fulfill the liability in the foreign currency, resulting in a loss for the debtor.

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Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $1,000, and the current date is April 15, 2013. What is the yield to maturity of the bond? Yield to maturity ____ %What is the current yield?Current yield _____%

Answers

Yield to maturity = 6.50%

Current yield = 6.25%

The bond quote shows a coupon rate of 6.25% and a price of 101.50, which means the bond is trading at a premium. To calculate the yield to maturity, we can use a financial calculator or a spreadsheet function such as the YIELD function. Using the YIELD function with the given parameters, we get a yield to maturity of 6.50%.

To calculate the current yield, we can simply divide the annual coupon payment ($62.50) by the current market price ($1015) and get a current yield of 6.25%.

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Two years ago, Blue Ltd sold of$1000par value that had an original maturity of 15 years and a coupon rate of Today these bonds are selling for$1,120. Determine the yield-to-maturity.
a. 9.77%
b. 7.92%
c. 8.44%
d. 10.29%
e. 8.55%

Answers

The yield-to-maturity (YTM) is the rate of return anticipated on a bond if it is held until it matures. To determine the YTM, we need to use the current market price of the bond, its par value, coupon rate, and time to maturity.

First, we need to calculate the annual coupon payment. The coupon rate is not given in the question, so we cannot calculate it directly. However, we know that the bond has a par value of $1000 and that it sold for $1120, which is a premium. This means that the coupon rate must be lower than the current market interest rate. Let's assume that the current market interest rate is 8%.

We can then calculate the coupon rate using the present value of the bond's cash flows:PV = C/(1+i)^1 + C/(1+i)^2 + ... + C/(1+i)^15 + FV/(1+i)^15 Where PV is the present value of the bond, C is the annual coupon payment, i is the market interest rate (8%), and FV is the par value ($1000). Solving for C, we get:
PV = $1120
FV = $1000
i = 8%
n = 15
C = (PV - FV/(1+i)^n)/(1/i*((1+i)^n - 1)) = $56.66
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what combination would most likely cause a shift from ad1 to ad2? multiple choice an increase in taxes and an increase in government purchases a decrease in taxes and an increase in government purchases an increase in taxes and no change in government purchases a decrease in taxes and a decrease in government purchases

Answers

AD2 is "a decrease in taxes and a decrease in government purchases". When taxes decrease, disposable income increases, leading to an increase in consumption and a shift of the AD curve to the right. Option D.

Similarly, a decrease in government purchases reduces government spending and aggregate demand, causing a leftward shift of the AD curve. Combining these two factors would result in a smaller overall decrease in aggregate demand due to the decrease in government purchases being offset by the increase in consumption.

This would shift the AD curve from AD1 to AD2. An increase in taxes and an increase in government purchases (option A) would have an ambiguous effect on aggregate demand, depending on the relative magnitudes of the tax increase and government spending increase. An increase in taxes and no change in government purchases (option C) would shift the AD curve to the left.

Therefore, the correct option is D "a decrease in taxes and a decrease in government purchases".

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burke's corner currently sells blue jeans and t-shirts. management is considering adding fleece tops to its inventory to provide a cooler weather option. the tops would sell for $46 each with expected sales of 4,650 tops annually. by adding the fleece tops, management feels the firm will sell an additional 320 pairs of jeans at $58 a pair and 455 fewer t-shirts at $19 each. the variable cost per unit is $29 on the jeans, $9 on the t-shirts, and $24 on the fleece tops. with the new item, the depreciation expense is $26,000 a year and the fixed costs are $79,500 annually. the tax rate is 24 percent. what is the project's operating cash flow?

Answers

Burke's corner currently sells blue jeans and t-shirts and the project's operating cash flow is $27,010.80.

How to find the project's operating cash flow

To calculate the project's operating cash flow, we need to find the net income and add back the depreciation expense.

First, let's calculate the revenues and variable costs for each item:

Fleece tops revenue: 4,650 tops * $46 = $213,700

Fleece tops variable cost: 4,650 tops * $24 = $111,600

Additional jeans revenue: 320 pairs * $58 = $18,560

Additional jeans variable cost: 320 pairs * $29 = $9,280

Reduced t-shirts revenue: 455 shirts * $19 = $8,645

Reduced t-shirts variable cost: 455 shirts * $9 = $4,095

Now, let's find the net income:

Total revenue: $213,700 (fleece tops) + $18,560 (jeans) - $8,645 (t-shirts) = $223,615

Total variable cost: $111,600 (fleece tops) + $9,280 (jeans) - $4,095 (t-shirts) = $116,785

Total fixed cost: $79,500

Depreciation expense: $26,000

Operating income (before taxes): $223,615 - $116,785 - $79,500 - $26,000 = $1,330

Taxes: $1,330 * 24% = $319.20

Net income: $1,330 - $319.20 = $1,010.80

Operating cash flow:

Net income + Depreciation expense = $1,010.80 + $26,000 = $27,010.80

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Human Capital theory suggests that everyones income reflects individual choices about investments in education and training.
True False

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Human Capital theory suggests that an individual's income is not solely determined by their skills and abilities but also by their investments in education and training. This theory is based on the idea that individuals can enhance their productivity and earning potential by investing in themselves, such as acquiring new skills, knowledge, and experience.

These investments in oneself are often referred to as "Human Capital".

According to this theory, the content loaded into an individual's Human Capital has a direct impact on their income. An individual who has invested in a specialized skill set or advanced education is likely to earn more than someone who hasn't invested as much time or resources in their own development.

However, it's important to note that this theory does not suggest that everyone has equal access to education and training opportunities. In fact, individuals from disadvantaged backgrounds often face barriers to obtaining the education and training necessary to develop their Human Capital.

Furthermore, the choices an individual makes regarding their investments in Human Capital are influenced by a variety of factors, such as their socioeconomic status, cultural background, and personal preferences. Therefore, the theory acknowledges that there are limitations to an individual's ability to invest in themselves.

Overall, the Human Capital theory highlights the importance of investing in oneself to increase earning potential, but also recognizes that individual choices are not made in a vacuum and are influenced by various external factors.

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Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dantzler's WACC is 16%.a) Year 0 FCF N/Ab) Year 1 FCF -$15 millionc) Year 2 FCF $28 milliond) Year 3 FCF $46 milliona. What is Dantzler's horizon, or continuing value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to 2 decimal places. Enter your answers in millions.b. What is the firm's value today? Round your answer to 2 decimal places. Enter your answers in millions. Do not round intermediate calculations.c. Suppose Dantzler has $141 million of debt and 7 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to 2 decimal places.

Answers

Dantzler's horizon value is $511.11 million whereas the firm's value today is $319.96 million and the current price per share for Dantzler Corporation is $25.85.

a) To calculate Dantzler's horizon value, we need to find the present value of all free cash flows beyond Year 3 discounted back to Year 3. Using the constant growth model, we can calculate the horizon value as follows:

Horizon Value = (FCF Year 4 / (WACC - g))

where FCF Year 4 is the free cash flow in Year 4, g is the constant growth rate, and WACC is the weighted average cost of capital.

Using the given values, we get:

Horizon Value = (46 / (0.16 - 0.05)) = $511.11 million

b) To find the firm's value today, we need to calculate the present value of all free cash flows, including the horizon value. Using the discounted cash flow (DCF) method, we get:

PV of FCF Year 1-3 = (-15 / (1 + 0.16)^1) + (28 / (1 + 0.16)^2) + (46 / (1 + 0.16)^3) = $55.47 million

PV of Horizon Value = (511.11 / (1 + 0.16)^3) = $264.49 million

Therefore, the firm's value today is:

Value Today = PV of FCF Year 1-3 + PV of Horizon Value = $319.96 million

c) To estimate the current price per share, we need to divide the total firm value by the number of shares outstanding and subtract the value of debt. Using the given values, we get:

Price per share = (Value Today - Debt) / Number of shares = ($319.96 - $141) / 7 million = $25.85

Therefore, our estimate of the current price per share for Dantzler Corporation is $25.85.

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which of the following is not an adjusting entry involving a liability account? a. recognizing depreciation expense for machinery purchased last year. b. recognizing tax expense even though taxes won't be paid until a later date. c. recognizing wage expense that will be paid in a future period. d. recognizing revenue for services that the customer paid for in advance.

Answers

Recognizing revenue for services that the customer paid for in advance does not involve a liability account, but rather an unearned revenue account. The correct answer is D.

Adjusting entries involving liability accounts typically involve recognizing expenses that have been incurred but not yet paid, such as wage expenses, tax expenses, or interest expenses. Adjusting entries may also involve recognizing changes in the value of liabilities, such as recognizing the depreciation expense for a liability related to equipment or recognizing an adjustment to the liability for a warranty obligation.

Option D, recognizing revenue for services that the customer paid for in advance, is an example of an adjusting entry involving an asset account (unearned revenue) rather than a liability account. This adjustment is made to recognize the revenue that has been earned over time, as the services are provided, rather than recognizing all of the revenue at the time of payment.

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although cotton was central to the southern economy by the 1850s, cotton production did not really increase significantly between 1800 and 1850.

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Cotton was central to the Southern economy by the 1850s, but its production did not increase significantly between 1800 and 1850.

By the middle of the 19th century, cotton had become a significant economic force in the south of the United States, although the first half of the century saw little growth in the crop's output. Despite the introduction of new technology and the extension of cotton farming into new areas, the rate of output increase generally remained modest.

This was caused in part by restrictions on the amount of land, labour, and money that could be used as well as changes in the demand for cotton on a worldwide scale. The growth of cotton farming in the South throughout the second half of the 19th century, however, had a significant impact on American history and society.

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False. Despite cotton's importance to the Southern economy in the 1850s, its production did not significantly increase between 1800 and 1850, with most of the expansion occurring after 1850.

The production of cotton did not greatly rise between 1800 and 1850, despite cotton being an essential component of the Southern economy in the middle of the 19th century. In actuality, the growth in cotton output in the South began mostly after 1850 and was fueled by the rising demand for cotton in the North and in Europe's textile mills. Although the cotton gin's development in the late 18th century simplified cotton processing, it did not necessarily result in a material rise in output. The expansion of cotton production in the South was influenced by a number of additional factors, including land accessibility, labor supply, and transportation infrastructure.

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which of the following are relative measures of sales and profits? (choose every correct answer.) multiple select question. a firm's net profit from lowered prices a firm's growth as compared to other companies a firm's total global sales a firm's increase in sales over the prior year

Answers

The relative measures of sales and profits are B. a firm's growth as compared to other companies and D. a firm's increase in sales over the prior year.

Relative measures of sales and profits compare a company's performance to a benchmark, such as industry standards or the performance of other companies. Option B, a firm's growth as compared to other companies, is a relative measure as it involves comparing a company's growth to the growth of its competitors or industry peers. This helps to evaluate a company's performance within its market and industry context.

Option D, a firm's increase in sales over the prior year, is also a relative measure as it compares a company's current sales to its own past performance. This enables the assessment of the company's growth trajectory and can help identify trends or changes in its business performance over time.

Options A and C are not relative measures. Option A, a firm's net profit from lowered prices, is an absolute measure as it indicates a specific amount of profit and does not involve any comparison to other companies or benchmarks. Option C, a firm's total global sales, is also an absolute measure, as it represents the total sales generated by the company without any comparison to other entities or benchmarks. Therefore, the correct option is B. and D.

The question was incomplete, Find the full content below:

which of the following are relative measures of sales and profits? (choose every correct answer.) multiple select question.

A. a firm's net profit from lowered prices

B. a firm's growth as compared to other companies

C. a firm's total global sales

D. a firm's increase in sales over the prior year

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Auction-rate preferred stock offers competitive rates of return with traditional money market instruments but a. is not rated by Moody's or Standard & Poor's. b. still provides the corporate investor with the tax exclusion on dividend income. c. has a fixed rate of dividend income. d. offers a highly competitive trading market.

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Auction-rate preferred stock offers competitive rates of return with traditional money market instruments, but still provides the corporate investor with the tax exclusion on dividend income (option b).

Auction-rate preferred stock (ARPS) is a type of preferred stock whose dividend rate is determined through a Dutch auction process. This allows the dividend rate to be more competitive with other money market instruments, as it adjusts based on market conditions.

However, unlike traditional money market instruments, ARPS is not rated by Moody's or Standard & Poor's (option a). The dividend income from ARPS is not fixed (option c) as it adjusts through the auction process.

Despite these differences, corporate investors still enjoy the tax exclusion benefit on dividend income, making ARPS an attractive option for them. ARPS also offers a highly competitive trading market (option d), allowing investors to buy and sell shares easily, adding to the attractiveness of this investment option.(B)

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collins manufacturing has the following information: common stock is 2.5 million shares with a current price of $42 per share; the beta of the stock is 1.5; the standard deviation of the stock is 10.5%. market: the us treasury bill is yielding 2.8% and the expected return on the market is 10.8%. the corporate tax rate is 38%. what is the firm's expected return on equity?

Answers

The Collins Manufacturing's expected return on equity is 14.8%.

To find the expected return on equity for Collins Manufacturing, we'll use the Capital Asset Pricing Model (CAPM). The information given is as follows:

1. Common stock: 2.5 million shares at $42 per share
2. Beta of the stock: 1.5
3. Standard deviation of the stock: 10.5%
4. US Treasury Bill yield: 2.8%
5. Expected return on the market: 10.8%
6. Corporate tax rate: 38%

Now, let's apply the CAPM formula:

Expected return on equity = Risk-free rate + (Beta × (Expected market return - Risk-free rate))

In order to calculate the expected return on equity, follow these steps:

1: Identify the risk-free rate, which is the US Treasury Bill yield: 2.8%

2: Subtract the risk-free rate from the expected market return: 10.8% - 2.8% = 8%

3: Multiply the result by the stock's beta: 1.5 × 8% = 12%

4: Add the risk-free rate to the result from step 3: 2.8% + 12% = 14.8%

The firm's expected return on equity is 14.8%.

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Activity Description Each student needs to select a local or regional (GCC) entrepreneurial business project and discuss the followings: Each student is requested to complete the following tasks: - Select a local or regional (GCC) entrepreneurial business project Conduct a brief summary of the business Entrepreneur background (Personal Characteristics). Develop the business main constraints and challenges. Analyze the business opportunities. Link theories to practice and own suggestions to improve. Use supporting diagrams.

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The activity description requires students to select an entrepreneurial business project from the local or regional (GCC) area and complete a series of tasks.

Firstly, they are required to conduct a brief summary of the business, including information about the entrepreneur's background and personal characteristics.

Secondly, they need to identify and develop the main constraints and challenges faced by the business.

Thirdly, they must analyze the business opportunities that exist within the chosen industry or market.

Fourthly, they must link theories to practice and provide their own suggestions for how the business could improve.

Finally, they are requested to use supporting diagrams to help illustrate their findings.

This assignment provides an excellent opportunity for students to gain a deeper understanding of entrepreneurship, and to develop their critical thinking and analytical skills by applying theoretical concepts to real-world situations.

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in the long run loanable funds model, if there is a decrease in taxes with no change in government spending

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In the long run loanable funds model, a decrease in taxes with no change in government spending can affect the interest rate (i) and investment. To explain this, let's break it down step-by-step:

1. Decrease in taxes: When taxes are reduced, households and businesses have more disposable income.
2. Increase in savings: With more disposable income, the amount of savings in the economy can increase, leading to a greater supply of loanable funds. 3. Shift in supply curve: The increased savings shift the supply curve of loanable funds to the right. 4. Change in interest rate: As the supply of loanable funds increases, the equilibrium interest rate (i) decreases in the loanable funds market. 5. Investment impact: A lower interest rate encourages more borrowing and investment by businesses, stimulating economic growth. In summary, in the long run loanable funds model, a decrease in taxes with no change in government spending can lead to an increase in savings, a decrease in interest rates, and an increase in investment. This process can stimulate economic growth.

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for each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. region elastic inelastic unit elastic between w and x between x and y between y and z true or false: the slope of the demand curve is not equal to the value of the price elasticity of demand. true false

Answers

Using the midpoint method, we can determine the elasticity of demand in each region as follows:

Region | Elastic/Inelastic/Unit Elastic
-------|--------------------------------
Between w and x | Inelastic
Between x and y | Unit Elastic
Between y and z | Elastic

Therefore, the demand for this good is inelastic in the region between w and x, unit elastic in the region between x and y, and elastic in the region between y and z.

Regarding the statement "the slope of the demand curve is not equal to the value of the price elasticity of demand," this statement is false. The slope of the demand curve is directly proportional to the price elasticity of demand. In fact, the price elasticity of demand is equal to the slope of the demand curve multiplied by the ratio of price to quantity.
Final answer:

The midpoint method is used to calculate the elasticity of demand by comparing percent changes in quantity demanded to percent changes in price. Elasticity values above 1 indicate elastic demand, those below 1 indicate inelastic demand, and 1 indicates unit elastic demand. The slope of the demand curve is not equal to the elasticity of demand.

Explanation:

The midpoint method is a common technique in economics used to measure the elasticity of demand without having specific demand curves. Elasticity of a good is determined by comparing the percent change in quantity demanded to the percent change in price using the midpoint formula [(Q2 - Q1)/(Q1 + Q2)/2] / [(P2 - P1)/(P1 + P2)/2].

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a teacher who is culturally curious and responsive recognizes that all people are influenced by their ________, and that variations within cultures are as significant as variations across cultures.]

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A teacher who is culturally curious and responsive recognizes that all people are influenced by their cultures, and that variations within cultures are as significant as variations across cultures.]

Culture may be described as all of the methods of lifestyles which include arts, ideals and establishments of a populace which might be surpassed down from technology to technology. Culture has been called "the manner of lifestyles for a whole society." As such, it consists of codes of manners, dress, language, religion, rituals, art. The trainer apprehend the styles of information that culturally numerous college students convey to gaining knowledge of conditions and to alter the curriculum to their sociocultural strengths.

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A teacher who is culturally curious and responsive recognizes that all people are influenced by their backgrounds, and that variations within cultures are as significant as variations across cultures.

This means that they understand that an individual's cultural background, including their ethnicity, language, religion, and customs, plays a significant role in shaping their beliefs, values, behaviors, and perspectives. They also acknowledge that there is great diversity within cultures, and that people from the same culture may have different experiences, beliefs, and behaviors based on factors such as their gender, age, socio-economic status, and regional differences.
Being culturally curious and responsive means that a teacher is willing to learn about and respect the diversity of their students' backgrounds. They strive to create a culturally responsive learning environment that celebrates diversity, promotes inclusivity, and supports the academic and social-emotional growth of all students.

This may involve incorporating diverse perspectives and materials into their curriculum, using inclusive language, and creating opportunities for students to share their cultures and experiences with each other.
By being culturally curious and responsive, teachers can help their students feel valued, respected, and understood, which can improve their academic performance, increase their engagement in learning, and foster a sense of belonging in the classroom. It also helps to prepare students for success in a diverse and interconnected world by developing their cultural competency and empathy skills.

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The basic models of acquisition include a corporation acquiring a target corporation's: (Check all that apply.)
A. stock.
B. assets.
C. cash.
D. debt.

Answers

A. stock and B. assets are the basic models of acquisition that a corporation can acquire from a target corporation. C. cash and D. debt are not typically acquired in an acquisition,

as cash is a liquid asset that the target corporation may need to continue operating, and debt is a liability that the acquiring corporation would not want to take on. Based on your question, the basic models of acquisition for a corporation acquiring a target corporation include:
A. stock.
B. assets.
These two options are commonly involved in acquisitions. A corporation can either acquire the target corporation's stock, giving them ownership and control, or they can acquire the target's assets, which can include property, equipment, and intellectual property. While cash and debt can be involved in acquisition transactions, they are not considered basic models of acquisition.

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A. stock and B. assets are the basic models of acquisition that a corporation can acquire from a target corporation. C. cash and D. debt are not typically acquired in an acquisition,

As cash is a liquid asset that the target corporation may need to continue operating, and debt is a liability that the acquiring corporation would not want to take on. Based on your question, the basic models of acquisition for a corporation acquiring a target corporation include:

A. stock.

B. assets.

These two options are commonly involved in acquisitions. A corporation can either acquire the target corporation's stock, giving them ownership and control, or they can acquire the target's assets, which can include property, equipment, and intellectual property. While cash and debt can be involved in acquisition transactions, they are not considered basic models of acquisition.

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Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.81 million and create incremental cash flows of $538,260.00 each year for the next five years. The cost of capital is 11.92%. What is the internal rate of return for the J-Mix 2000? Submit Answer format: Porcentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)

Answers

According to the question, the internal rate of return for the J-Mix 2000 is 10.32%.

What is rate of return?

Rate of return is a measure of the profitability of an investment. It is usually expressed in terms of a percentage of the original investment. Rate of return is calculated by taking the gain from an investment and dividing it by the original cost of the investment. It can also be calculated by taking the income from the investment and dividing it by the original cost of the investment.

This is calculated using the formula for internal rate of return: IRR = (C1 / CF0)1/n – 1

Where C1 is the incremental cash flow of $538,260.00, CF0 is the initial investment of $1.81 million, and n is the number of years, which is 5.

IRR = (538,260.00 / 1,810,000)1/5 – 1

IRR = 0.1032

IRR = 10.32%

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The price of a commercial paper offering a payoff of
$10,000 is $9,460. If the annualized investment rate is 7.8%, when
does the paper mature?

Answers

The paper matures in about 1.943 years, or approximately 23 months. To solve this problem, we can use the formula for present value of a future payment: Present value = Future value / [tex](1+r)^{n}[/tex], where r is the annualized investment rate and n is the number of years until the payment is received.

In this case, we know that the present value is $9,460 and the future value is $10,000. We also know that r is 7.8% or 0.078 as a decimal. We can plug these values into the formula and solve for n: 9,460 = 10,000 / [tex](1+0.078)^{n}[/tex], 9,460 / 10,000 = [tex](1+0.078)^{n}[/tex], 0.946 = [tex]1.078^{n}[/tex]

Taking the natural logarithm of both sides: ln(0.946) = n ln(1.078), n = ln(0.946) / ln(1.078), n ≈ 1.943 years

Therefore, the paper matures in about 1.943 years, or approximately 23 months.

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You have just received a windfall from an investment you made in a friend's business. She will be paying you $45,056 at the end of this year. $90,112 at the end of next year, and $135,168 at the end of the year after that three years from today). The interest rate is 12.1% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?

Answers

a. The present value of the windfall is $200,321.68. b. The future value of the windfall in three years is $379,125.48.

a. To calculate the present value of the windfall, we need to discount each of the future payments back to the present using the given interest rate of 12.1%.

Using the formula for present value of a single payment, we get:

PV1 = 45,056 / (1 + 0.121)¹ = $40,250.44

PV2 = 90,112 / (1 + 0.121)² = $67,230.53

PV3 = 135,168 / (1 + 0.121)³ = $92,840.71

Therefore, the present value of the windfall is:

PV = PV1 + PV2 + PV3

= $40,250.44 + $67,230.53 + $92,840.71 = $200,321.68

b. To calculate the future value of the windfall in three years, we can simply add up the future payments and compound them for three years using the same interest rate of 12.1%.

Using the formula for the future value of a series of payments, we get:

FV = 45,056 x (1 + 0.121)² + 90,112 x (1 + 0.121)¹ + 135,168

= $379,125.48

Therefore, the future value of the windfall in three years is $379,125.48.

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your employer gives you a stock bonus of $1,000 in your company at the end of each year. you plan to retire in 20 years. the stock has a growth rate of 15 percent per annum. what will the value of your stock be in 20 years? question 1 options: $102,443.58 $86,421.00 $117,810.10 $72,035.10 cannot determine with the information provided.

Answers

We can use the formula for future value of an annuity to find the value of the stock bonus after 20 years:

FV = PMT * ((1 + r)^n - 1) / r

where PMT is the annual payment ($1,000), r is the interest rate (15% or 0.15), and n is the number of periods (20 years).

FV = $1,000 * ((1 + 0.15)^20 - 1) / 0.15
FV = $1,000 * (9.136 - 1) / 0.15
FV = $1,000 * 55.573
FV = $55,573

Therefore, the value of the stock bonus in 20 years will be $55,573. Answer: $55,573 (rounded to the nearest dollar).

Introduction This TMA has one question with three parts. You should answer them all. The questions in this assignment are all about different aspects of the process of exploring a complex situation drawing different kinds of maps of it, recognizing how complex it is ide ifying the different perspectives it can be viewed from, and stepping back to reflect on this whole process of exploration to see the strengths and weaknesses of the approach you have adopted, and how you might do it better. Question (100% marks) Read through the attached case study Staying Ahead in a Competitive Environment. McDonald's Restaurants As you read through the case, and based on what you learned in SYS210: Business Driven Technology, tackle the following questions and attempt to answer them using an essay format of no more than 1200 words A-Describe the information age and the differences among data, information, business intelligence and knowledge. (350 words, 30% marks) B-Explain system thinking and how management information system (MIS) solves issues with information silos MC Donald's entire worldwide organization? (400 words, 30 % marks) C-Explain how MIS enabling business communications at MC Donald, s? (350 words, 30% marks) D-Reflect on the experiences of working on your TMA. and assess how it has developed your understanding of the course concept (100 words, 10 % marks).

Answers

A) In the information age, technology is used to manage and share vast amounts of data. Data is raw facts and figures, while information is data that has been organized and analyzed to provide meaning.

Business intelligence is the use of software to analyze data and provide actionable insights, and knowledge is the application of information to a specific situation.

B) System thinking is an approach to problem-solving that considers the system as a whole, rather than individual parts. MIS helps to solve issues with information silos at McDonald's by integrating all data into a centralized system, allowing for better communication and decision-making across the entire organization.

C) MIS enables business communications at McDonald's by providing a centralized platform for employees to access and share information in real-time.

This allows for faster and more efficient communication between departments and locations, ultimately leading to better collaboration and decision-making.

D) Working on the TMA has improved my understanding of the importance of approaching complex situations from multiple perspectives and utilizing different types of maps to gain a comprehensive understanding.

It has also emphasized the significance of technology in facilitating communication and decision-making within a business.

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b) Leigh Delight Candy Berhad is choosing between two bonds in which to invest their cash. One is being offered from Hershey's and will mature in 15 years and pay RM40 each quarter. The other alternative is a Mars' bond that will mature in 18 years and pay RM50 each quarter. Compute the present value of each bond if the discount rate is 12% compounded quarterly, and each bond pays RM1,000 at maturity.

Answers

Leigh Delight Candy Berhad should invest in the Mars' bond as it has a higher present value than the Hershey's bond at a 12% quarterly compounded discount rate. The present value of the Hershey's bond is RM2,536.74 and the present value of the Mars' bond is RM2,892.01.

What is the present value of Hershey's and Mars' bonds and which one should Leigh Delight Candy Berhad invest in?

To compute the present value of each bond, we can use the formula:

PV = (C/r) x [1 - (1 + r)^(-n)]

Where PV is the present value, C is the coupon payment per quarter, r is the discount rate per quarter, and n is the number of quarters until maturity.

For the Hershey's bond, C = RM40, r = 0.03 (12%/4), n = 60 (15 years x 4 quarters per year). Plugging these values into the formula, we get:

PV = (40/0.03) x [1 - (1 + 0.03)^(-60)]
PV = RM2,536.74

So the present value of the Hershey's bond is RM2,536.74.

For the Mars' bond, C = RM50, r = 0.03, n = 72 (18 years x 4 quarters per year). Plugging these values into the formula, we get:

PV = (50/0.03) x [1 - (1 + 0.03)^(-72)]
PV = RM2,892.01

So the present value of the Mars' bond is RM2,892.01.

Therefore, if Leigh Delight Candy Berhad is choosing between these two bonds, they should invest in the Mars' bond as it has a higher present value than the Hershey's bond at a 12% quarterly compounded discount rate.

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(Cost of preferred stock​) The preferred stock of Texas Southern Power Company sells for ​$41 and pays ​$7 in dividends. The net price of the security after issuance costs is ​$36.08 . What is the cost of capital for the preferred​ stock?

Answers

The cost of capital for Texas Southern Power Company's preferred stock is approximately 29.07%.

To determine the cost of capital for Texas Southern Power Company's preferred stock, we need to consider the dividend paid, the selling price, and the net price after issuance costs. Let's follow these steps:

1. First, we need to calculate the dividend yield, which is the annual dividend divided by the stock's selling price. In this case, the dividend is $7, and the selling price is $41:

Dividend Yield = Dividend / Selling Price = $7 / $41 ≈ 0.1707 or 17.07%

2. Next, we need to account for the issuance costs. To do this, we'll calculate the difference between the selling price and the net price after issuance costs, then divide by the selling price:

Issuance Cost Percentage = (Selling Price - Net Price) / Selling Price = ($41 - $36.08) / $41 ≈ 0.1200 or 12%

3. Finally, we'll adjust the dividend yield to account for the issuance costs. This will give us the cost of capital for the preferred stock:

Cost of Capital = Dividend Yield + Issuance Cost Percentage = 17.07% + 12% = 29.07%

Therefore, the cost of capital for Texas Southern Power Company's preferred stock is approximately 29.07%. This value represents the required return on investment for investors who purchase the preferred stock, taking into consideration the dividend payments and the costs associated with issuing the stock.

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bonds accrue interest until they have been repaid on or before the ______ date.

Answers

Bonds continue to earn interest until they are paid off on the bond maturity date or earlier. The first day of any interest rate period and each interest payment date that follows, excluding the final interest payment date, are referred to as the "Interest Accrual Date."

Interest starts to accrue when a loan is made or a bond's coupon is paid. A bond is a type of debt obligation in which the lender, or owner, is compensated with interest payments. The coupons for this interest are normally paid every six months. Savings bonds produce monthly interest. The bond's interest rate is applied to a fresh principal amount every six months because interest is compounded semiannually.

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Bonds accrue interest until they have been repaid on or before the  maturity date.

The maturity date refers to the moment in time when the principal of a fixed income instrument must be repaid to an investor. The maturity date likewise refers to the due date on which a borrower must pay back an installment loan in full.

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