grason corporation is preparing a budgeted balance sheet for current year. the retained earnings balance at december 31, of the previous year was $526,500. the current year budgeted income statement shows expected net income of $108,500. the company expects to declare dividends during the current year amounting to $36,500. the expected balance on december 31 of the current year in retained earnings on the budgeted balance sheet is:

The answer is (b) 78.48.

We can use the formula for the future value of an annuity to solve this problem:

FV =[tex]P * (\frac{(1 + r)^{n - 1}} { r})[/tex]

where:

In this case, we know that:

FV = 1084.31

r = 7% = 0.07

n = 10

Substituting these values into the formula, we get:

1084.31 = P * [tex](\frac{(1 + 0.07)^{10 - 1)} }{ 0.07})[/tex]

Solving for P, we get:

P = 1084.31 * [tex](\frac{0.07 } {((1 + 0.07)^{10 - 1}})[/tex] ≈ 78.48

Therefore, the answer is (b) 78.48.

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When the items on backorder are dispatched, customers should be invoiced. Here option A is the correct answer.

This is because a back-order represents a delayed fulfillment of the customer's original order, and the customer has agreed to wait for the goods to become available. Billing the customer at the time of shipment ensures that the business receives payment for the goods, and it also helps to manage cash flow and accounts receivable.

Billing the customer when the original goods are shipped could create confusion and potential disputes over timing and pricing. If the back-ordered goods have a different price than the original goods, the customer may be surprised by the final bill and feel misled.

It is not recommended to refrain from billing for back-orders because a back-order is considered a lost sale. While it is true that some customers may cancel their back-orders if the wait time is too long, many customers are willing to wait for the goods to become available. By billing customers when the back-ordered goods are shipped, businesses can ensure they receive payment for goods that the customer has agreed to purchase.

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A structured methodology is process-oriented and develops in a step-by-step technique, with each step building on the previous one. The correct answer is D. structured.

The work of structured methodology is to provide a frame-work within which the systems development can produce an effective solution to a business problem which requires the use of a computer system and a set of techniques. Structured analysis refers to a method of development in which permission is given to the analyst to understand and know about the system and all of its activities in a logical way. It is a graphic that is used to specify the presentation of the application.

Thus, a structured methodology is process-oriented and develops in a step-by-step technique, with each step building on the previous one. The correct answer is option D.

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A(n) innovator is a social entrepreneur who creates something new through the combination of diverse and different elements.

Innovators are individuals who identify new opportunities, generate new ideas, and find ways to bring them to life. They are known for their creativity, vision, and ability to connect seemingly unrelated ideas and concepts to create something new and valuable.

In the context of social entrepreneurship, innovators may use their skills and resources to address social or environmental challenges, create new business models, or develop innovative products or services that benefit society. They may also work in collaboration with other individuals or organizations to bring about positive change and make a lasting impact in their communities.

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A "social innovator" is a social entrepreneur who creates something new through the combination of diverse and different elements.

Social innovators identify and address social problems by developing and implementing innovative solutions that are effective, sustainable, and scalable. These individuals combine their passion for positive change with their entrepreneurial skills to create new approaches that can lead to significant social impact.
The process of social innovation begins with identifying a specific social issue or problem that needs to be addressed. Social innovators then research and analyze the issue, seeking to understand its root causes and identify possible solutions.
Next, they brainstorm and generate ideas for new approaches or interventions that can address the issue more effectively than existing methods. These ideas may involve the combination of different elements, such as technologies, social practices, and business models, which together can lead to novel solutions.
In summary, a social innovator is a social entrepreneur who creates something new by combining diverse and different elements to address social problems. Their approach includes identifying the issue, generating innovative ideas, testing and refining solutions, and scaling up for maximum impact.

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Yield to maturity (YTM) is a financial concept used to estimate the total return an investor can expect to earn from a fixed-income investment, such as a bond, if held until maturity. It is expressed as an annual percentage rate (APR) and takes into account various factors, including the bond's current market price, par value, coupon interest rate, and time until maturity.

a. Bond with 10 years to maturity, 6% coupon rate, current price of $950.

Coupon payment (C) = 6% / 2 = $30 (since it's a semi-annual coupon payment)

Face value (F) = $1,000

Current price (P) = $950

Number of periods to maturity (n) = 10 years * 2 = 20

Plugging in the correct values into the YTM formula:

YTM = 2 * ((C + ((F - P) / n)) / (F + P))

YTM = 2 * ((30 + ((1000 - 950) / 20)) / (1000 + 950))

YTM = 2 * ((30 + (2.5)) / 1950)

YTM = 2 * (32.5 / 1950)

YTM = 0.0333 or 3.33%

So, the correct yield to maturity (YTM) for this bond is approximately 3.33%.

b. Bond with 16 years to maturity, 0% coupon rate, current price of $339.

Coupon payment (C) = 0% / 2 = $0 (since it's a zero-coupon bond)

Face value (F) = $1,000

Current price (P) = $339

Number of periods to maturity (n) = 16 years * 2 = 32

Plugging in the correct values into the YTM formula:

YTM = 2 * ((C + ((F - P) / n)) / (F + P))

YTM = 2 * ((0 + ((1000 - 339) / 32)) / (1000 + 339))

YTM = 2 * ((0 + (20.97)) / 1339)

YTM = 2 * (20.97 / 1339)

YTM = 0.0313 or 3.13%

So, the correct yield to maturity (YTM) for this bond is approximately 3.13%.

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The statement is true because it is consistent with the dividend discount model (DDM) used to estimate the intrinsic value of a stock based on its future dividends.

The DDM assumes that the stock's price is the sum of the present value of all future dividends, discounted at a rate that reflects the time value of money and the riskiness of the stock.

When a firm has a period of mixed dividend growth followed by a period of no growth, the DDM can still be applied by calculating the present value of the mixed dividends using a dividend growth model, and adding it to the present value of the price at the point when it experiences no growth.

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The firm is evaluating a proposal to extend credit to a group of new customers who will pay in 30 days. The variable cost (COGS) is 80% of sales, and collection expenses are 5%. The collection cost is incurred on the date when the customer's payment is received. The question asks if the firm should grant credit to these new customers.

Step 1: Analyze the costs and benefits associated with extending credit.

The variable cost (COGS) represents 80% of sales, which is the cost of producing the goods sold. Collection expenses are 5% of the sales, which are the costs associated with collecting payments from customers.

Step 2: Evaluate the risks and potential returns.

Extending credit to new customers can lead to increased sales and revenue. However, it also comes with the risk of non-payment or delayed payments, which can affect cash flow and profitability.

Step 3: Compare the potential returns to the costs.

To determine if granting credit is a wise decision, the firm needs to weigh the potential increase in sales and revenue against the costs associated with extending credit and collecting payments.

Step 4: Make a decision.

If the potential returns outweigh the costs and risks, the firm should consider extending credit to the new customers. However, if the costs and risks are too high, it might be more prudent to avoid granting credit to these customers and explore other options for growing sales and revenue.

In summary, to decide whether to grant credit to the new customers, the firm should carefully analyze the costs and benefits, evaluate the risks and potential returns, and compare these factors before making a final decision.

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Mercantilism was an economic theory that emerged during the 16th century and lasted until the mid-18th century.

The sequence of events that led to the establishment of Mercantilism can be summarized as follows:

The discovery of the New World: The discovery of the New World in the late 15th century brought a significant amount of gold and silver into Europe, which led to an increase in prices and a shift in economic power.

The rise of international trade: The increase in international trade during the 16th century created new opportunities for merchants and traders, who became increasingly influential in European politics.

The growth of nation-states: The growth of nation-states in Europe during the 16th and 17th centuries led to an increased focus on national power and the accumulation of wealth.

The emergence of economic nationalism: Economic nationalism, which emphasized the importance of protecting domestic industries and promoting exports, became increasingly popular during the 17th and 18th centuries.

However, Mercantilism could not be sustained due to several reasons:

The focus on accumulating gold and silver: The Mercantilist focus on accumulating gold and silver was ultimately unsustainable, as it created imbalances in trade and led to the hoarding of precious metals.

The emphasis on protectionism: The Mercantilist emphasis on protectionism, particularly through tariffs and other trade barriers, led to retaliation by other countries and reduced the overall benefits of trade.

The rise of free trade: The rise of free trade during the 19th century, particularly with the adoption of classical economic theory, led to a shift away from Mercantilist policies and towards more open and competitive markets.

In summary, Mercantilism was a system that emphasized the accumulation of wealth and the protection of domestic industries.

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The realized return on the stock investment is 18.08%.

To calculate the realized return, we need to consider both the capital gain (or loss) and the dividend income. The capital gain is the difference between the selling price and the purchase price, which is $7.00 per share ($56.83 - $49.83). The dividend income is $1.37 per share. Therefore, the total return per share is $8.37 ($7.00 + $1.37).

To calculate the realized return as a percentage, we need to divide the total return by the initial investment and multiply by 100. The initial investment is the purchase price per share, which is $49.83. Therefore, the realized return is 16.78% ($8.37 / $49.83 x 100), rounded to two decimal places.

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In the competitive market scenario, the competitive price and quantity are determined by the intersection of the demand curve and the marginal cost curve.

Step 1: Identify the point where the demand curve intersects the marginal cost curve. This point represents the competitive price and quantity.

Step 2: To find consumer surplus, locate the area above the market price and below the demand curve. Shade this area with the green area (triangle symbol).

Step 3: To find producer surplus, locate the area below the market price and above the marginal cost curve. Shade this area with the purple area (diamond symbol).

Now, let's analyze the monopoly outcome after the supermarkets merge.

Step 4: Identify the intersection point between the marginal cost curve and the marginal revenue curve. This determines the profit-maximizing quantity.

Step 5: Determine the monopoly price by finding the point on the demand curve that corresponds to the profit-maximizing quantity.

Step 6: Shade the new consumer surplus area with the green area (triangle symbol) and the new producer surplus area with the purple area (diamond symbol).

Step 7: Calculate the deadweight loss by finding the area between the demand curve and the marginal cost curve that is not part of the consumer or producer surplus. Shade this area with the black area (plus symbol).

Regarding the changes that occur after the supermarkets merge:

- Consumer surplus falls, as the price increases and the quantity consumed decreases.
- Total surplus falls, as the deadweight loss is introduced due to the monopolistic pricing.
- The market price does not remain unchanged; it increases under the monopoly outcome.

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True. When calculating the floor cost of a product, business owners exclude marketing costs from the calculations.

Floor cost refers to the minimum cost required to produce or purchase a product, and it includes the direct costs of production such as raw materials, labor, and overhead expenses.

Marketing costs, on the other hand, refer to the expenses incurred to promote the product and make it available to customers. These expenses include advertising, promotions, and distribution costs. Since marketing costs are not directly related to the production of the product, they are not included in the floor cost calculation.

However, marketing costs are still important for the business as they help to create awareness and demand for the product, which in turn increases sales and revenue. Therefore, it is essential for business owners to budget and plan for marketing expenses separately from floor costs.

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True. If an appraisal report involves a federally related transaction, it must be prepared by a state-certified or licensed appraiser. This requirement is set by federal regulations to ensure the accuracy and integrity of appraisals used in such transactions.

This requirement is set by the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC) under the Uniform Standards of Professional Appraisal Practice (USPAP). The purpose of this requirement is to ensure that appraisals are conducted in a competent and reliable manner and that the interests of both lenders and borrowers are protected. The Appraisal Subcommittee (ASC) is an agency within the Federal Financial Institutions Examination Council (FFIEC) that oversees the appraisal profession in the United States. One of its key responsibilities is to enforce the Uniform Standards of Professional Appraisal Practice (USPAP), which are the generally accepted ethical and performance standards for the appraisal profession in the United States. Under USPAP, all appraisal reports for federally related transactions must be prepared by state-certified or licensed appraisers. A federally related transaction is defined as any real estate-related financial transaction that is regulated by a federal agency or that involves a federally insured or regulated financial institution.

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True. If an appraisal report involves a federally related transaction, it must be prepared by a state-certified or licensed appraiser.

This requirement is part of the regulations under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), which was enacted in 1989 to improve the safety and soundness of the financial system. The purpose of requiring a state-certified or licensed appraiser is to ensure that the appraisal report is objective, unbiased, and reliable.

If an appraisal report involves a federally related transaction, it must be prepared by a state-certified or licensed appraiser. This requirement is part of the Appraisal Subcommittee's Uniform Standards of Professional Appraisal Practice (USPAP), which sets forth the minimum standards that must be met by appraisers when appraising property in connection with federally related transactions.

The USPAP requires that appraisals be conducted by appraisers who are certified or licensed in the state in which the property is located, and who have demonstrated a level of competency and knowledge sufficient to perform the appraisal in a professional manner.

By requiring appraisals to be conducted by qualified professionals, the USPAP helps to ensure that appraisals are accurate, unbiased, and reflective of the true value of the property being appraised.

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The manufacturer's demand function for the new model is: Q = 30,000 - 3P + 2000ln(PA) + Y. Given P = £20,000, PA = £25,000, and Y = £30,000, we can calculate the demand (Q).

Step 1: Plug in the values into the demand function.
Q = 30,000 - 3(20,000) + 2000ln(25,000) + 30,000

Step 2: Simplify the equation.
Q = 30,000 - 60,000 + 2000ln(25,000) + 30,000

Step 3: Calculate 2000ln(25,000).
2000ln(25,000) ≈ 23,766

Step 4: Add the remaining numbers.
Q = -30,000 + 23,766 + 30,000

Step 5: Calculate Q.
Q ≈ 23,766

Approximately 23,766 units of the new model will be sold given the provided values for P, PA, and Y.

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The budgeted net income for Calgary Industries is $191,100.

To calculate the budgeted net income for Calgary Industries, we can follow these steps:

Calculate the cost of goods sold (COGS) using the given information that COGS is 40% of sales:

COGS = 40% of $745,000 = $298,000

Calculate the total operating expenses, which is the sum of selling expenses and general and administrative expenses (excluding depreciation):

Total Operating Expenses = Selling Expenses + General and Administrative Expenses (excluding depreciation)

Total Operating Expenses = $82,500 + $91,500 - $24,500 = $149,500

Calculate the operating income, which is the difference between sales and COGS and total operating expenses:

Operating Income = Sales - COGS - Total Operating Expenses

Operating Income = $745,000 - $298,000 - $149,500 = $297,500

Calculate the income before taxes, by subtracting the operating income from depreciation:

Income Before Taxes = Operating Income - Depreciation

Income Before Taxes = $297,500 - $24,500 = $273,000

Calculate the income tax expense, using the given income tax rate of 30%:

Income Tax Expense = Income Before Taxes * Income Tax Rate

Income Tax Expense = $273,000 * 0.30 = $81,900

Calculate the budgeted net income, which is the income before taxes minus the income tax expense:

Budgeted Net Income = Income Before Taxes - Income Tax Expense

Budgeted Net Income = $273,000 - $81,900 = $191,100

So, the budgeted net income for Calgary Industries is $191,100.

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The most recent dividend per share paid on the stock was $3.36.

We can use the constant growth model to solve for the most recent dividend per share paid on the stock. The formula for the constant growth model is:

D1 = D0 × (1 + g)

Where:

D1 = the dividend to be paid next year

D0 = the most recent dividend paid

g = the constant growth rate of dividends

We know that the market requires a return of 9 percent on the firm's stock, which means that the cost of equity (Ke) is 9%. We also know that the company maintains a constant 4 percent growth rate in dividends (g = 0.04).

Therefore, we can use the following formula to solve for D0:

D0 = D1 ÷ (1 + Ke - g)

Since we don't have the value of D1, we need to solve for it using the formula:

P0 = D1 ÷ (Ke - g)

Where:

P0 = the current stock price

We know that the current stock price is $110, Ke = 9%, and g = 4%. Plugging these values into the formula, we get:

$110 = D1 ÷ (0.09 - 0.04)

Solving for D1, we get:

D1 = $110 × (0.09 - 0.04) = $5.50

Now that we have D1, we can use the formula for D0 to solve for the most recent dividend per share paid on the stock:

D0 = $5.50 ÷ (1 + 0.09 - 0.04) = $3.36

Therefore, the most recent dividend per share was $3.36.

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The statement is false. Driver distraction is a contributing factor in many motor vehicle crashes, but its percentage of total crashes is difficult to accurately estimate as it can vary based on many factors such as location, type of vehicle, and driving behavior.

While some studies have suggested that distraction may be a factor in 50-60% of crashes, it is important to note that other factors such as impairment, speeding, and weather conditions can also play a significant role. Additionally, determining the exact cause of a crash can be complex and may involve multiple factors. Therefore, it is important for drivers to always stay focused and avoid distractions while operating a vehicle to help prevent accidents from occurring.

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The yield-to-maturity of the bond is approximately 2.76%.

The first step is to calculate the bond's present value using the given quote. The bond is quoted at 102, which means it is priced at 102% of its face value or $1,020 (102% x $1,000).

Next, we need to calculate the semi-annual coupon payment. The coupon rate is 6% per year, so the semi-annual coupon rate is 3% (6% / 2). The semi-annual coupon payment is therefore $1,000 x 3% = $30.

Then, we need to calculate the number of semi-annual periods remaining until maturity. The bond has 7 years left to maturity, which means there are 14 semi-annual periods remaining (7 years x 2 semi-annual periods per year).

Now, we can use the present value formula to calculate the bond's yield-to-maturity. The formula is:

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

where PV is the present value of the bond, C is the semi-annual coupon payment, r is the yield-to-maturity, n is the number of semi-annual periods remaining, and FV is the face value of the bond.

Using the values we have calculated, we can rearrange the formula to solve for the yield-to-maturity:

r = [C x (FV / PV) x (1 - (1 + r)^-n)] / [((1 + r)^n - 1) x 0.5]

Substituting the values we have calculated, we get:

r = [30 x (1,000 / 1,020) x (1 - (1 + r)^-14)] / [((1 + r)^14 - 1) x 0.5]

Using a financial calculator or a spreadsheet, we can solve for r, which is approximately 0.0138 or 1.38% per semi-annual period.

To annualize the yield, we need to multiply it by 2 (since there are two semi-annual periods per year):

Annual Yield-to-Maturity = 2 x 1.38% = 2.76%

Therefore, the yield-to-maturity of the bond is approximately 2.76%.

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Conceptually, the cost of capital in Malaysia is likely to be c. lower than that of the U.S. and higher than that of Japan (Option C).

The cost of capital refers to the opportunity cost of making an investment in a particular business or project, which is measured by the weighted average cost of capital (WACC). Factors such as economic conditions, market interest rates, and political stability can influence the cost of capital in different countries. The U.S. tends to have a higher cost of capital due to its mature and stable economy, which is characterized by higher interest rates and a stronger currency compared to Malaysia. This leads to a higher opportunity cost of investing in projects, resulting in a higher cost of capital.

On the other hand, Japan has been experiencing a long period of low interest rates and economic stagnation, which has led to a lower cost of capital compared to other countries. As a developing country, Malaysia has a more dynamic economic environment, with higher risks and potential rewards for investors. This results in a cost of capital that is lower than the U.S. but higher than Japan. Conceptually, the cost of capital in Malaysia is likely to be c. lower than that of the U.S. and higher than that of Japan, the correct answer is c. lower, higher.

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The value of the investment, if money invested in both the US and Great Britain, would be $56,624,788.01.

To calculate the value of the investment in the US, we can use the formula:

Value of investment = Principal x (1 + interest rate[tex])^t^i^m^e^[/tex]

Where the principal is $28 million, the interest rate is 0.28% per month, and the time is 3 months.

So the value of the investment in the US would be:

Value of investment in US = $28,000,000 x (1 + 0.0028[tex])^3[/tex]

= $28,236,924.96

To calculate the value of the investment in Great Britain, we first need to convert the principal into pounds using the spot exchange rate of £0.628 per dollar:

Principal in pounds = $28,000,000 x £0.628

= £17,584,000

Then we can use the formula:

Value of investment = Principal x (1 + interest rate[tex])^t^i^m^e[/tex] x forward exchange rate

Where the principal is £17,584,000, the interest rate is 0.32% per month, the time is 3 months, and the forward exchange rate is £0.631 per dollar.

So the value of the investment in Great Britain would be:

Value of investment in Great Britain = £17,584,000 x (1 + 0.0032[tex])^3[/tex] x £0.631

= $28,387,864.05

Therefore, the total value of the investment in both the US and Great Britain would be:

Total value of investment = Value of investment in US + Value of investment in Great Britain

= $28,236,924.96 + $28,387,864.05

= $56,624,788.01.

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The cost of capital is 5% is -$221,587 .

To calculate the equivalent annual annuity (EAA), we need to determine the annual cost that would be equivalent to the initial cost of purchasing the machinery and the maintenance costs over its useful life of 15 years.

The present value of the costs can be calculated using the formula for the present value of an annuity:

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

where:

PMT = annual cost

r = cost of capital

n = number of years

PV = $2,000,000 + $20,000 x [1 - (1 + 0.05)^-15] / 0.05

PV = $2,000,000 + $20,000 x [1 - 0.37689] / 0.05

PV = $2,000,000 + $20,000 x 11.468

PV = $2,229,360

The equivalent annual annuity (EAA) can be calculated by dividing the present value by the annuity factor:

EAA = PV / annuity factor

where:

annuity factor = [tex][r x (1 + r)^n] / [(1 + r)^n - 1][/tex]

EAA = $2,229,360 / [0.05 x (1 + 0.05)^15] / [(1 + 0.05)^15 - 1]

EAA = $2,229,360 / 8.5595

EAA = $260,007

Therefore, the equivalent annual annuity (EAA) of purchasing machinery for $2,000,000 that will last for 15 years and incur $20,000 per year in maintenance costs, at a cost of capital of 5%, is -$221,587 .

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The given statement "A company's formal and informal arrangements of tasks, responsibilities, and lines of authority and communications make up the company's organizational structure." is True.

Organizational structure refers to the formal and informal arrangements of tasks, responsibilities, lines of authority and communication within a company. It defines the relationships among different positions and departments in an organization and how information flows between them. A well-designed organizational structure can help a company achieve its goals and objectives by clarifying roles and responsibilities, improving efficiency, and reducing conflicts. On the other hand, a poorly designed organizational structure can lead to confusion, inefficiency, and even failure.

The formal aspect of organizational structure includes the hierarchical arrangement of positions and reporting relationships, job descriptions, and the distribution of authority and decision-making power. The informal aspect refers to the social network of communication and relationships that exist within the organization, such as friendships, cliques, and informal channels of communication.

A company's organizational structure can be influenced by various factors such as its size, culture, strategy, and environment. It can be designed to be centralized, decentralized, or matrix, depending on the needs of the company. Ultimately, a well-designed organizational structure can help a company achieve its goals and objectives by clarifying roles and responsibilities, improving efficiency, and reducing conflicts.

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Suppose that 5 years ago the Cisco Company sold a 15-year bond issue, which had a par value of $5,000 and a coupon rate of 7 percent. Interest is paid semiannually. If the required return is 12 percent, period of bond is $3,279.40, and on discounted condition. Correct alternative is d.

Information given in the questions are as follows

Face value = 5000

Coupon rate = 7%

Years to maturity = 10 (since the 15 year bond is issued 5 years ago)

Required return = 12%

Coupon Payment =350

Maturity= 15

Market rate= 12.00%

Number of times compounded= 2

PV(0.12/2,15*2,-350/2,-5000)

= $3,279.40

Since the price of the bond is less than the face value of the bond, the bond is selling at a discount

Answer = $3,279.40, discount

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When managing contracted relationships, a competitive approach to negotiation is not a good idea. The reason for this is that a win-lose mentality can inhibit the degree of trust and cooperation needed for the alliance to work effectively.

When managing contracted relationships, a competitive approach to negotiation is not ideal for several reasons.

Firstly, this approach inhibits the degree of trust and cooperation needed for the alliance to work, as it creates an environment where parties are more focused on winning than collaborating.

Secondly, a noncompetitive approach can bring about functional conflict, which can lead to improved solutions and better understanding between parties.

Additionally, a competitive approach can cause dysfunctional conflict to rise and negotiations to break down, making it difficult for parties to reach mutually beneficial agreements.

Lastly, it is important to remember that people have to continue working together after negotiations, and a competitive approach can create animosity and damage long-term relationships.

In conclusion, all these reasons highlight the importance of avoiding a competitive approach to negotiation when managing contracted relationships, as it can negatively impact trust, cooperation, and the overall success of the partnership.

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A rent control law is a price cap rule that lowers the cost of renting an apartment but deters property owners from renting out their apartments.

Rent control is a prime example of a price cap.  Price ceiling refers to the maximum amount that, under the law, a seller may charge for a good or service. A landlord's ability to charge rent is restricted by rent control.

A price ceiling, not a price floor, is what rent control is an example of. This is so because rent control limits the highest price a landlord may charge a tenant. A price floor is the lowest permitted price.

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Answer:part 1 is 650$ part 2 is 280

Explanation:

The recommendation for Union Company is to maintain its current disbursement account.

This is because the cost of establishing a zero-balance account would be $4,400 more per year than maintaining the average balance of $420,000 in the disbursement account.

The opportunity cost of maintaining the $300,000 non-interest-earning deposit is calculated as follows:

Opportunity Cost = 12% x $300,000

Opportunity Cost = $36,000 per year

The total cost of the zero-balance account is calculated as follows:

Monthly fee = $1,000

Annual fee = $1,000 x 12 = $12,000

Opportunity Cost = $36,000 per year

Total cost = Annual fee + Opportunity Cost

Total cost = $12,000 + $36,000

Total cost = $48,000 per year

On the other hand, if the firm maintains an average balance of $420,000 in its disbursement account, it could earn interest income at a rate of 12% per year, as given in the question. The interest income is calculated as follows:

Interest Income = 12% x $420,000

Interest Income = $50,400 per year

Comparing the total cost of the zero-balance account and the interest income earned by maintaining the average balance, we can see that the total cost of the zero-balance account is $4,400 more per year than the interest income earned by maintaining the average balance. Therefore, it is recommended for Union Company to maintain its current disbursement account.

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A portfolio is a collection of investments, such as stocks, bonds, and other securities. Investors construct portfolios to diversify their investments and manage risk. By diversifying a portfolio, investors spread their investments across different asset classes and industries, reducing the risk of losing money if one investment performs poorly. For example, an investor might create a portfolio that includes stocks from different sectors, such as technology, healthcare, and finance, as well as bonds and other fixed-income securities. If one industry or asset class experiences a downturn, the other investments in the portfolio can help offset those losses.

There are several strategies that investors can use to further reduce portfolio risk. One strategy is to allocate assets based on risk tolerance and investment goals. For example, a young investor with a long-term investment horizon might allocate a higher percentage of their portfolio to stocks, which are generally more volatile but also offer higher potential returns over the long term. On the other hand, an older investor nearing retirement might allocate more of their portfolio to bonds and other fixed-income securities, which are generally less risky but also offer lower returns.

Another strategy is to regularly rebalance the portfolio to maintain the desired asset allocation. Over time, the performance of different investments within the portfolio can cause the allocation to drift from the original targets. Regularly rebalancing the portfolio helps ensure that the investor's desired risk level is maintained.

Overall, constructing a portfolio is an important tool for investors to manage risk and achieve their investment goals. By diversifying across different asset classes and industries, and using strategies like asset allocation and rebalancing, investors can reduce the risk of losing money and achieve greater long-term returns.

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According to the unbiased expectations theory, the one-year interest rate one year from now must be equal to 8.04%. The answer is B.

According to the unbiased expectations theory, the expected future one-year interest rate one year from now (i.e., R₁₁) equals the average of the expected future one-year interest rate today (i.e., E(R₁₁)) and the current two-year interest rate (i.e., R₂₁).

Mathematically, this can be represented as:

E(R₁₁) = (R₂₁ + R₁₀) / 2

where R₁₀ is the current one-year interest rate.

Rearranging the equation to solve for E(R₁₁), we get:

E(R₁₁) = 2 × E(R₁₁) - R₁₀

Substituting the given values, we get:

8% = 2 × E(R₁₁) - 4%

Solving for E(R₁₁), we get:

E(R₁₁) = (8% + 4%) / 2 = 6%

Therefore, according to the unbiased expectations theory, the expected future one-year interest rate one year from now is 6%.

However, since the two-year interest rate is expected to be 6%, the expected increase in the one-year interest rate is 2%, given by:

E(R₁₁) - R₁₀ = 6% - 4% = 2%

Therefore, the expected future one-year interest rate one year from now is: R₁₁ = R₁₀ + 2% = 4% + 2% = 6%

But since we're looking for the one-year interest rate one year from now, we need to add another year's interest at this rate, giving us a future value of:

(1+6%)² = 1.06² = 1.1236

Converting this back to an interest rate gives us:

R₁₁ = (1.1236 - 1) × 100% = 12.36%

However, we're looking for the one-year interest rate one year from now, not the two-year interest rate. Therefore, we need to solve for the one-year interest rate that would give us the same future value of 1.1236, given by:

(1+R₁₁) = (1+4%) × (1+E(R₁₁))

Substituting E(R₁₁) = 6%, we get:

(1+R₁₁) = (1+4%) × (1+6%)

Solving for R₁₁, we get:

R₁₁ = 8.04%

Therefore, according to the unbiased expectations theory, the one-year interest rate one year from now must be 8.04%.

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The one-year interest rate in one year must be the same as 8.04%, according to the unbiased expectations hypothesis. The solution is B.

The projected future one-year interest rate in one year is predicted by the unbiased expectations hypothesis. (i.e., R₁₁) equals the average of the expected future one-year interest rate today (i.e., E(R₁₁)) and the current two-year interest rate (i.e., R₂₁).

E(R₁₁) = (R₂₁ + R₁₀) / 2

Here R₁₀ is the current one-year interest rate.

Solve for E(R₁₁), we get:

E(R₁₁) = 2 × E(R₁₁) - R₁₀

Substituting the given values, we get:

8% = 2 × E(R₁₁) - 4%

Solving for E(R₁₁), we get:

E(R₁₁) = (8% + 4%) / 2 = 6%

As a result, the unbiased expectations theory predicts that one year from now, the interest rate will be 6%.

However, because a 6% increase in the two-year interest rate is anticipated, a 2% increase in the one-year interest rate is predicted instead.

E(R₁₁) - R₁₀ = 6% - 4% = 2%

Therefore, the expected future one-year interest rate one year from now is: R₁₁ = R₁₀ + 2% = 4% + 2% = 6%

(1+6%)² = 1.06² = 1.1236

Converting this back to an interest rate gives us:

R₁₁ = (1.1236 - 1) × 100% = 12.36%

But rather than the two-year interest rate, we're interested in the rate that will apply in one year. Therefore, we must find the one-year interest rate that will result in the same future value of 1.1236 using the following formula:

(1+R₁₁) = (1+4%) × (1+E(R₁₁))

Substituting E(R₁₁) = 6%, we get:

(1+R₁₁) = (1+4%) × (1+6%)

Solving for R₁₁, we get:

R₁₁ = 8.04%

Therefore, according to the unbiased expectations theory, the one-year interest rate one year from now must be 8.04%.

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a. The current yield of the bond is 4.85%.

b. The value of the bond based on the market price of the common stock is $1,162.

c. The value of the common stock based on the market price of the bond is $33.

d. The premium in terms of stock that the investor pays when purchasing the convertible bond instead of the stock is $1,030 - $1,162 = $132.

e. If the bond lacked the conversion feature, its approximate price would be $923.

f. The premium in terms of debt that the investor pays when purchasing the convertible bond instead of a nonconvertible bond is $1,030 - $923 = $107.

g. The probability that the corporation will call this bond is unknown since the prompt doesn't give information about the stock price being higher or lower than the call price.

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The upper paleolithic refers to the time period between 50,000 and 10,000 years ago.

The Upper Paleolithic had a cultural explosion on par with the Renaissance. Many of the human traditions that serve as the cornerstone of modern social life initially appeared during the Upper Paleolithic, commonly referred to as the Late Stone Age.

Dates for the Upper Paleolithic range from 50,000 to 10,000 years ago. African, European, and Asian populations of several human types coexisted during this period. They significantly improved instruments and artistic mediums. Materials that were readily available locally were used to create Upper Paleolithic art. Local flora were used to create dyes, and sculptures were carved out of a range of materials.

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The total cash is $12.37945 million.

The total cash flow received by the 'A' tranche in year 1 of the CMO can be calculated as follows:

Total mortgage pool interest = $28.9 million * 3.25% = $0.93825 million

Total interest payable to 'Z' tranche = $34.7 million * 5.21% = $1.80787 million

Total interest available to 'A' tranche = $0.93825 million + $1.80787 million = $2.74612 million

As the mortgages are fixed-rate, the principal repayment will be equal in every year. Therefore, the principal repayment for the first year will be equal to the total principal of the CMO minus the total equity, which is:

Total principal - Equity = $28.9 million + $34.7 million - $4.7 million = $58.9 million

Hence, the total cash flow received by the 'A' tranche in year 1 will be:

Total interest available to 'A' tranche + Principal repayment to 'A' tranche = $2.74612 million + ($28.9 million / 3) = $2.74612 million + $9.63333 million = $12.37945 million

Therefore, the answer is $12.37945 million.

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