Q1- In this fixed price incentive fee contract, the target cost is estimated at $150,000, and the target fee and price is $30,000 and $180,000. The contract has is a ceiling price of $200,000. The project is over, and the buyer has agreed that the actual costs were, $210,000. The buyer seller ratio is 60/40 (that is 60 percent to the buyer and 40 percent to the seller). Find the final fee, the final price, and the point of total assumption

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Answer 1

$252,000 is the final cost, $42,000 is the final charge, and $233,333 is the point of total assumption.

Given:

Budgeted amount: $150,000

Fee target: $30,000.

Ideally priced at $180,000

Maximum cost: $200,000

Cost in reality: $210,000

A 60/40 buyer-to-seller ratio.

We must first determine the project's total cost in order to determine the ultimate charge and price.

Step 1 is to determine the project's overall cost.

The actual cost of $210,000 is higher than the desired cost of $150,000, so the difference is split between the buyer and seller according to their respective ratios.

Actual cost minus target cost equals the excess cost of $60,000, or $210,000 minus $150,000.

The seller's portion of excess cost equals 40% times $60,000, or $24,000.

Buyer's portion of excess costs equals 60% times $60,000, or $36,000.

The project's overall cost is:

Target cost plus excess cost equals a final cost of $150,000 plus $60,000, or $210,000.

Step 2: Determine the total cost.

Based on the goal fee and the actual cost, the final fee is determined.

The fee adjustment factor equals ($210,000 - $150,000) / ($210,000 - $150,000) = 0.4

Final fee is calculated as Target fee + (Fee Adjustment Factor x Target Fee) = $30,000 + (0.4 x $30,000) = $42,000.

Step 3: Determine the final cost.

The final cost and the final charge form the basis of the final pricing.

Final cost + Final charge = $210,000 + $42,000 = $252,000 (final pricing).

Calculate the point of total assumption in step four.

The project's total cost exceeding the ceiling price is known as the point of total assumption.

Ceiling price - Target cost - Target fee = $200,000 - $150,000 - $30,000 = $20,000 Excess cost at the ceiling price

At the ceiling price, the seller's portion of extra costs equals $8,000 (or 40% of $20,000).

60% times $20,000 is $12,000, which is the buyer's share of excess costs at the ceiling price.

The fundamental presumption is:

Ceiling price + (Excess cost at the ceiling price / Buyer-Seller Ratio) = $200,000 + ($20,000 / 60/40) = $233,333.

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Related Questions

a training and education initiative with specific requirements delivered by an industry professional association to salespeople in that industry is an example of a(n)

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A training and education initiative with specific requirements delivered by an industry professional association to salespeople in that industry is an example of a certification program. Certification programs are designed to provide individuals with the knowledge, skills, and competencies required to perform a particular job or function within an industry or profession.

In this example, the industry professional association is providing a certification program to salespeople in that industry, which likely includes specific training and education requirements that must be met in order to receive certification. The purpose of the certification program is to ensure that salespeople in that industry have the necessary knowledge and skills to effectively perform their job duties and provide value to their customers.

Certification programs are often used in industries where there is a need for specialized knowledge or skills, such as healthcare, finance, or information technology. By completing a certification program, individuals can demonstrate their expertise and commitment to their profession, which can lead to increased job opportunities and higher salaries.

Overall, certification programs are an important tool for ensuring that individuals within an industry or profession have the necessary skills and knowledge to perform their job duties effectively. They also provide a means for individuals to demonstrate their expertise and commitment to their profession, which can lead to professional advancement and increased opportunities for career success.

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stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) AWN 1 2 3 4 5 Stock A 0.11 0.04 0.13 -0.04 0.08 Stock B 0.05 0.03 0.05 0.01 -0.01 a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.42, what is the expected return and standard deviation of a portfolio of 51% stock A and 49% stock B?

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Expected returns refer to the anticipated profits or gains that an investor can expect to receive from an investment, taking into account the probability of different possible outcomes.

a. To find the expected return of each stock, we need to calculate the average of their returns:

Stock A: (0.11 + 0.04 + 0.13 - 0.04 + 0.08)/5 = 0.064 or 6.4%

Stock B: (0.05 + 0.03 + 0.05 + 0.01 - 0.01)/5 = 0.026 or 2.6%

Therefore, the expected return of Stock A is 6.4% and the expected return of Stock B is 2.6%.

b. To find the standard deviation of each stock, we can use the following formula:

s = sqrt[ Σ(xi - x)^2 / (n - 1) ]

where s is the standard deviation, xi is each return value, x is the mean of the returns, and n is the total number of returns.

For Stock A:

s = sqrt[ ((0.11 - 0.064)^2 + (0.04 - 0.064)^2 + (0.13 - 0.064)^2 + (-0.04 - 0.064)^2 + (0.08 - 0.064)^2) / (5 - 1) ]

s = sqrt[ 0.003616 ] = 0.06 or 6%

For Stock B:

s = sqrt[ ((0.05 - 0.026)^2 + (0.03 - 0.026)^2 + (0.05 - 0.026)^2 + (0.01 - 0.026)^2 + (-0.01 - 0.026)^2) / (5 - 1) ]

s = sqrt[ 0.000634 ] = 0.025 or 2.5%

Therefore, the standard deviation of Stock A is 6% and the standard deviation of Stock B is 2.5%.

c. To find the expected return and standard deviation of a portfolio consisting of 51% Stock A and 49% Stock B, we can use the following formulas:

Expected return of the portfolio = wA * RA + wB * RB

where wA and wB are the weights of Stock A and Stock B in the portfolio, and RA and RB are the expected returns of Stock A and Stock B.

Standard deviation of the portfolio = sqrt[ wA^2 * sA^2 + wB^2 * sB^2 + 2wAwB*ρ(A,B)sAsB ]

where sA and sB are the standard deviations of Stock A and Stock B, and ρ(A,B) is the correlation coefficient between Stock A and Stock B.

Plugging in the values, we get:

Expected return of the portfolio = 0.51 * 0.064 + 0.49 * 0.026 = 0.046 or 4.6%

Standard deviation of the portfolio = sqrt[ (0.51^2 * 0.06^2) + (0.49^2 * 0.025^2) + (2 * 0.51 * 0.49 * 0.42 * 0.06 * 0.025) ] = 0.037 or 3.7%

Therefore, the expected return of the portfolio is 4.6% and the standard deviation of the portfolio is 3.7%.

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the cost savings and/or advantages that individual firms get when they are located in the same area as other firms of the same industry is known as a(n) economy.

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The cost savings and/or advantages that individual firms get when they are located in the same area as other firms of the same industry is known as an economy of scale.

This economy of scale refers to the ability of businesses to achieve lower costs and increased efficiency by producing goods or services on a larger scale. When firms are located in close proximity to one another, they can benefit from shared infrastructure, labor pools, and supply chains. This means that they can collectively negotiate better deals with suppliers, streamline transportation and logistics, and pool their resources to invest in technology and research and development. The end result is often increased productivity and profitability for all firms involved.

In addition to these benefits, firms in an economy of scale can also benefit from knowledge spillovers, as they are more likely to share information, ideas, and best practices. Overall, an economy of scale can be a powerful tool for businesses looking to improve their competitiveness and achieve long-term success.

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2. Implications of IRP.
Assume that interest rate parity exists. You expect that the one year nominal interest rate in the United States is 7 percent, while the one year nominal interest rate in Australia dollar is 11 percent. The spot rate of Australian dollars is $.60. You will need 10 million Australian dollars in one year. Today, you purchase a one year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill you forward contract?

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In one year, you will need 4.218 million US dollars to fulfill your forward contract.

If interest rate parity exists, the forward exchange rate should reflect the interest rate differential between the two currencies. Using the formula for interest rate parity, we can calculate the expected forward rate: (1 + 0.07) / (1 + 0.11) x 0.60 = 0.4218

Therefore, the expected one year forward rate of AUD/USD is 0.4218. To fulfill the forward contract for 10 million Australian dollars, you will need: 10 million AUD x 0.4218 USD/AUD = 4.218 million USD

So, in one year, you will need 4.218 million US dollars to fulfill your forward contract.

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what is the answer to 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 + 11 + 12 + 13 + 14 + 15 + 16 + 17 + 18 + 19 + 20 + 21 + 22 + 23 + 24 + 25 + 26 + 27 + 28 + 29 + 30 = ...

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The sum of the numbers from 1 to 30 is 465.

How can the sum of an arithmetic series be calculated using a formula?

The sum of the numbers from 1 to 30 can be found by adding each number together, one by one. However, this method can be time-consuming, especially when the numbers get larger. Fortunately, there is a formula that can be used to calculate the sum of an arithmetic series, which is what this sequence of numbers is.

An arithmetic series is a sequence of numbers in which each term is obtained by adding a constant difference to the previous term. For example, in the sequence 1, 2, 3, 4, 5, the difference between each term is 1.

The formula for the sum of an arithmetic series is:

Sn = n/2 * (a1 + an)

where Sn is the sum of the first n terms, a1 is the first term, and an is the nth term.

In this case, the first term (a1) is 1, the last term (an) is 30, and there are 30 terms in total (n = 30). Substituting these values into the formula, we get:

Sn = 30/2 * (1 + 30)

Sn = 15 * 31

Sn = 465

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homeowners generally do not default by choice on a home mortgage loan, even when the value of the house is below the mortgage balance. reasons for this can include:

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Homeowners generally do not default by choice on a home mortgage loan, even when the value of the house is below the mortgage balance, due to several reasons.

First, defaulting on a mortgage loan can have a negative impact on the homeowner's credit score, which can affect their ability to obtain credit in the future. Second, defaulting can lead to foreclosure, which can result in the loss of the home and additional fees and expenses.

Third, many homeowners have an emotional attachment to their home and do not want to lose it. Finally, some homeowners may still have hope that the value of the home will increase in the future, allowing them to sell the home for more than the mortgage balance.

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louis vuitton moet hennessy(lvmh), the well-known french luxury goods company, bought from the bulgari family a controlling 66 percent interest in bulgari spa, the italian jewelry maker. the value of the purchase consideration paid to the bulgari family at the time of the acquisition was

Answers

The value of the purchase consideration paid by LVMH to the Bulgari family for the controlling 66% interest in Bulgari SPA is not provided in the given information.

Without the specific value of the purchase consideration, it is impossible to provide a numerical answer.

However, it is noteworthy that LVMH's acquisition of Bulgari SPA allowed the French company to expand its presence in the high-end jewelry market and further diversify its product offerings.

This acquisition also allowed LVMH to tap into Bulgari's strong brand recognition and loyal customer base.

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If a company were to sell an asset and it resulted in a capital gains, the company would owe tax on the amount the financial gain. True False

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If a company were to sell an asset and the sale resulted in a capital gain, the company would owe tax on the amount of the financial gain. The given statement is true.

Capital gains tax is a tax on the profits earned from the sale of a non-inventory asset, such as property or investments, that have been held for more than a year. The amount of tax owed on the capital gain is typically calculated based on the net gain from the sale, which is the difference between the selling price and the asset's cost basis.

However, there may be certain exemptions or deductions available to the company that can reduce the amount of tax owed.

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chadwick is a developer considering purchasing a large piece of unimproved land for a subdivision development. what should he do before committing to the project?

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Before committing to a subdivision development project, Chadwick should conduct a feasibility study that evaluates the zoning regulations, availability of utilities, potential demand, surrounding area, and financial feasibility. This study will help him make an informed decision and reduce potential risks and costs associated with the project.

Before committing to a subdivision development project, Chadwick should conduct a thorough feasibility study. This study should include researching the zoning regulations and restrictions on the land, determining the availability of utilities such as water, sewage, and electricity, and assessing the potential demand for the proposed development. Chadwick should also evaluate the surrounding area to determine the market trends, competition, and potential risks such as natural disasters or environmental hazards. Additionally, Chadwick should consider the financial feasibility of the project. This would involve estimating the total cost of the land purchase, infrastructure development, and construction expenses. He should also evaluate the potential revenue from home sales or rental income and determine if the project is financially viable.

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8. If the labor market is rigid, and people do not have rational expectations ... Inflation and unemployment are unrelated Inflation and unemployment have a trade-off in the short run Inflation and un

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If the labor market is rigid and people do not have rational expectations, it is more likely that inflation and unemployment will have a trade-off in the short run.

This means that if inflation rises, unemployment may decrease temporarily, and vice versa. However, in the long run, this trade-off is not sustainable and inflation and unemployment become positively correlated. Therefore, it is important for policies to address the root causes of rigidity in the labor market and encourage rational expectations in order to achieve sustainable economic growth and stability.


This trade-off is described by the Phillips Curve, which illustrates the inverse relationship between inflation and unemployment in the short run. When inflation rises, unemployment tends to fall, and vice versa. However, this relationship may not hold in the long run, as factors like changes in technology, labor productivity, and inflation expectations can impact both inflation and unemployment independently.

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according to the matrix provided here, there is a dominant strategy in this game, which shows what each firm should do regardless of what the other firm is doing.

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The computer system made it possible for the two airlines to communicate with one another, which allowed them to collaborate and coordinate their strategies.That player has an advantage over the opposition in the game, all other things being equal.

In game theory, a situation where one player possesses better tactics regardless of how their opponent may play is referred to as the dominating strategy. No matter what tactics other players use, a player's dominant strategy is the one that gives them the best results. Since admitting would reduce the average amount of time spent in prison, defecting (i.e., confessing) is the preferred choice in this situation.

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According to the matrix provided below, there is a dominant strategy in this game which shows what each firm should do regardless of what the other firm is doing.

However, in the real world, both airlines posted their planned fare cuts on a computer system that allowed each of them to see what their rival was doing. They each saw the price war starting, backed down, and escaped the prisoner's dilemma.

Which of the following is the best explanation for why the actual outcome is different from the outcome we predicted using game theory?

Based on the matrix provided, a dominant strategy refers to a strategy that is the best option for a player regardless of the other player's strategy choice. In this case, if there is a dominant strategy in the game, it means that one firm has an option that is always better than any other option regardless of what the other firm does.

Identifying a dominant strategy can help firms make better decisions in their business operations and improve their chances of success.Unfortunately, you did not provide the matrix itself. However, I can explain how to identify a dominant strategy in a game using a matrix.
1. Create a matrix (also known as a payoff matrix) that represents the possible strategies for both firms. The rows typically represent one firm's strategies, while the columns represent the other firm's strategies.
2. Examine each row and column to identify the dominant strategy for each firm. A dominant strategy is a strategy that yields a higher payoff for a firm, regardless of what the other firm chooses.
3. To find the dominant strategy for Firm A (assuming Firm A is represented by rows), compare the payoffs in each row. If one row has higher payoffs for Firm A than the other row(s), regardless of the column, that is Firm A's dominant strategy.
4. Similarly, to find the dominant strategy for Firm B (assuming Firm B is represented by columns), compare the payoffs in each column. If one column has higher payoffs for Firm B than the other column(s), regardless of the row, that is Firm B's dominant strategy.
Once you identify the dominant strategy for each firm, it shows what each firm should do regardless of what the other firm is doing. Please provide the specific matrix if you need help determining the dominant strategy for your particular game.

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Freddie bought a stock for $25 last year. The stock la now wonin 532, and over the year, he received total areal vidends d' 51.40 persone. What is the dicend you this holding period a. 43.8%
b. 33.6%
c. None of the seed toms is correct d. 5.6%
e. 28%

Answers

The correct answer is not listed in the options provided. The closest answer is e. 28%, which is the dividend yield for one year only, not for the entire holding period.

To calculate the dividend yield for Freddie's stock holding period, we need to divide the total dividends received by the original purchase price of the stock. The original purchase price was $25, and the total dividends received were $51.40. Therefore, the dividend yield for the holding period is:

$51.40 / $25 = 2.056

To convert this to a percentage, we need to multiply by 100. So the dividend yield for the holding period is:

2.056 x 100 = 205.6%

However, the answer choices provided are in percentages, so we need to subtract 100 to get the actual dividend yield percentage for the holding period:

205.6% - 100% = 105.6%

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You are a licensed salesperson and a partner in a corporation that invests in real estate. Your corporation may purchase a property listed with your brokerage ONLY if you
a. obtain the written consent of your supervising broker.
b. disclose to the owner your interest in the corporation.
c. do not handle the closing of the transaction yourself.
D. did not procure the listing yourself.

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The conditions under which your corporation may purchase a property listed with your brokerage if you are a licensed salesperson and a partner in a corporation that invests in real estate is: b. disclose to the owner your interest in the corporation.


As a licensed salesperson and partner in a corporation that invests in real estate, you must disclose your interest in the corporation to the owner of the property listed with your brokerage. This is to ensure transparency and prevent potential conflicts of interest.

A broker receives a commission whenever a deal is successfully closed and is licenced to assist customers in buying and selling real estate. Either as the buyer or even the seller may be the agent's client. While a real estate broker might work independently and hire agents, they perform the same duties as real estate agents.

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Assume the risk free rate is 2.5% and the beta for a particular firm is 1.0, current firm share price is $114 and the market risk premium is 8%.
What is the required rate of return for this firm?
Please use 5 decimal places in your response

Answers

To invest in this firm, investors would require a return of 10.5%. To calculate the required rate of return for the firm, we need to use the Capital Asset Pricing Model (CAPM). The CAPM formula is Required Rate of Return = Risk-Free Rate + (Beta * Market Risk Premium).

Given the information provided, we know that the risk-free rate is 2.5% and the market risk premium is 8%. The beta for the firm is 1.0. Therefore, the required rate of return for the firm is:

Required Rate of Return = 2.5% + (1.0 * 8%) = 10.5%

This is the minimum return that they would expect to receive for the level of risk associated with the investment.

It is important to note that the required rate of return is dependent on the beta of the firm. A higher beta would result in a higher required rate of return, while a lower beta would result in a lower required rate of return. Additionally, changes in the risk-free rate and market risk premium would also impact the required rate of return.

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On 5 February 20XX, the quoted price of the June 20XX 90-day bank bill futures contract was 98.18, and the yield on 90-day bank accepted bills was 1.77 per cent per annum. On 12 February 20XX, the quoted price of the June 20XX 90-day bill futures contract was 98.19, and the yield on 90-day bank accepted bills was 1.78 per cent per annum. The basis on 12 February was: a) -$613.91 b)$1350.40 c) -$1231.36 d) -$726.49 e) None of the above answers is correct.

Answers

The yield on 90-day bank accepted bills was 1.78 per cent per annum. The basis on 12 February was: None of the above answers is correct.

Briefing:-

Quoted Price of 99.19 implies a simple per annum yield of 0.0081 or 0.81% per annum.

Basis = Spot - Futures = $1,000,000/(1+0.0086*(90/365)) - $1,000,000(1+0.081*(90/365)) = $997,883.94 - $998,006.72 = -$122.78

What does "% annually" mean?

Per annum denotes annually. It is frequently applied to interest rates.

What in business is a year?

Per annum denotes annually or yearly. It is a phrasing that is frequently used to explain interest rates.

Which expense ratio is ideal for a business?

A practical method for determining whether the management fees associated with an investment fund are worthwhile is to look at the total expense ratio (TER). The TER should, on average, range between 1% to 1.25%.

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ted riley owns a 2005 lexus worth $25,000. he owns a home worth $225,000. he has a checking account with $500 in it and a savings account with $1500 in it. he has a mutual fund worth $85,000. his personal assets are worth $90,000. he still owes $10,000 on his car, $100,000 on his home and has a balance on his credit card of $1,000. what is ted's net worth?

Answers

Ted Riley's net worth is $316,000

To calculate Ted Riley's net worth:

We need to consider his assets (2005 Lexus, home, checking account, savings account, mutual fund, and personal assets) and his liabilities (car loan, home loan, and credit card balance).

1. Add up all of Ted's assets:
  - 2005 Lexus: $25,000
  - Home: $225,000
  - Checking account: $500
  - Savings account: $1,500
  - Mutual fund: $85,000
  - Personal assets: $90,000
  Total assets = $25,000 + $225,000 + $500 + $1,500 + $85,000 + $90,000 = $427,000

2. Add up all of Ted's liabilities:
  - Car loan: $10,000
  - Home loan: $100,000
  - Credit card balance: $1,000
  Total liabilities = $10,000 + $100,000 + $1,000 = $111,000

3. Subtract Ted's liabilities from his assets to find his net worth:
  Net worth = Total assets - Total liabilities = $427,000 - $111,000 = $316,000
Ted Riley's net worth is $316,000.

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1. The preferred stock of Rail​ Lines, Inc., pays an annual dividend of​ $7.50 and sells for ​$50.15 a share. What is the required rate on this​ security?
A. 16.95 percent
B. 10.97 percent
C. 18.94 percent
D. 14.96 percent
E. 12.96 percent

Answers

The required rate of return on a preferred stock is the return that an investor expects to receive in order to compensate for the risk of investing in that stock.

To calculate the required rate on the preferred stock of Rail Lines, Inc., we need to use the dividend discount model formula, which states that the required rate of return equals the dividend divided by the price of the stock plus the growth rate of the dividend.

In this case, the annual dividend is $7.50 and the price of the stock is $50.15 a share. We don't have information about the growth rate of the dividend, so we'll assume that it's zero, which means that the dividend will remain constant over time.

Using the formula, we get:

Required rate of return = $7.50 / $50.15 + 0 = 0.1494 = 14.94%

Therefore, the answer is D. 14.96 percent.

This means that an investor who purchases this preferred stock expects to earn a return of 14.96% per year in order to compensate for the risk of investing in this stock. This return is higher than the return on a risk-free investment, such as a U.S. Treasury bond, because the preferred stock carries a higher risk of default.

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The difference between the yields of long-term bonds and the yields of short-term bonds issued by the same corporation at the same time is usually caused by the difference in maturities (maturity risk premium). (True/False) If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 7.9%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond? (Multiple Choice) a. 1.46% b. 1.51% c. 1.60% d. 1.30% e. 0%

Answers

True. The default risk premium on the corporate bond is 1.51%. The maturity risk premium is the difference between the yields of long-term bonds and the yields of short-term bonds issued by the same corporation.

This premium is primarily driven by the difference in maturities. In this case, the 10-year T-bonds have a yield of 6.2% while the 10-year corporate bonds yield 7.9%.

Thus, the maturity risk premium on all 10-year bonds is 1.3%. Additionally, corporate bonds have a liquidity premium of 0.4% versus a zero liquidity premium for T-bonds. When combined, this results in a default risk premium of 1.51% on the corporate bond.

In conclusion, the difference between the yields of long-term bonds and the yields of short-term bonds issued by the same corporation at the same time is usually caused by the difference in maturities. In this particular case, this premium is 1.3%. Additionally, corporate bonds have a liquidity premium of 0.4%, resulting in a default risk premium of 1.51%.

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purina sells a selection of dog and cat foods. purina is available to purchase through retail stores like petsmart, target, and amazon. these retailers take ownership of the product and resell it to the consumer. this is an example of:

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This is an example of indirect distribution or channel of distribution, where the manufacturer (Purina) sells its products to intermediaries (PetSmart, Target, Amazon) who then sell the products to the final consumers.

Indirect distribution involves the use of intermediaries or middlemen to sell products to customers. In this case, Purina sells its dog and cat food products to retailers like PetSmart, Target, and Amazon, who then take ownership of the products and resell them to consumers. Indirect distribution can be beneficial for companies like Purina as it allows them to reach a wider audience without having to invest in their own distribution channels. It also allows them to focus on manufacturing and production while leaving the sales and distribution to the retailers.

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after the creation of a free trade area involving five nations, higher cost external fabric producers were replaced by lower-cost external fabric producers within the free trade area. this is known as

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Higher-cost external fabric producers were replaced by lower-cost external fabric producers inside the free trade area following the establishment of a free trade zone including five nations. Trade diversion is what this is known as.

Is trade created in a free trade area when lower cost external suppliers are replaced by more expensive providers?

When higher-cost suppliers from the free trade area take the place of lower-cost external suppliers, commerce is diverted. Only if the quantity of trade it generates outweighs the amount it diverts would a regional free trade agreement be advantageous to the entire world.

Which of the following describes a free trade area's member nations?

What distinguishes a free trade area from other regions? Each member nation is permitted to choose its own own trade policies with regard to nonmembers. Member nations are required to have a central political apparatus that coordinates economic, social, and foreign policy

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calculate the upper bound to the 99th confidence interval given the following price and dividend information. (enter percentages as decimals and round to 4 decimals) year price dividend 2017 139.72 2018 129.05 3.75 2019 137.49 3.98 2020 157.38 4.19 2021 171.07 4.45 2022 176.65 4.52

Answers

The upper bound of the 99th confidence interval for the dividend yield is approximately 0.0287, or 2.87% when expressed as a percentage.

How to calculate the upper bound

To calculate the upper bound of the 99th confidence interval, we need to consider the mean, standard deviation, and the z-score for a 99% confidence level.

First, calculate the dividend yields for each year with available dividend information:

2018: 3.75/129.05 = 0.0290

2019: 3.98/137.49 = 0.0289

2020: 4.19/157.38 = 0.0266

2021: 4.45/171.07 = 0.0260

2022: 4.52/176.65 = 0.0256

Now, calculate the mean dividend yield:

(0.0290 + 0.0289 + 0.0266 + 0.0260 + 0.0256) / 5 = 0.0272

Next, calculate the standard deviation:

σ = √[((0.0290-0.0272)^2 + (0.0289-0.0272)^2 + (0.0266-0.0272)^2 + (0.0260-0.0272)^2 + (0.0256-0.0272)^2) / 4] ≈ 0.0015

The z-score for a 99% confidence level is 2.576.

To find the upper bound of the confidence interval, use the formula:

Upper bound = Mean + (z-score * (Standard deviation / √n))

Upper bound = 0.0272 + (2.576 * (0.0015 / √5)) ≈ 0.0287

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mark buys 250 shares of stock in a fund with a net asset value of $25.17 and an offer price of $25.30. mark wants to sell all of his shares when he can profit $1,000. if mark sells his shares today, he would have proceeds of $7,300. determine if mark should sell his shares today and why.

Answers

Mark should not sell his shares today as the current offer price of $25.30/share is not enough to achieve his profit target of $1,000. He should wait until the offer price reaches at least $29.17/share to sell his shares and make a profit of $1,000.

To determine whether Mark should sell his shares today, we need to calculate his total cost and total proceeds from the sale.

Mark bought 250 shares of stock in a fund with a net asset value of $25.17, so his total cost was:

250 shares x $25.17/share = $6,292.50

If Mark sells all of his shares today at an offer price of $25.30/share, his total proceeds would be:

250 shares x $25.30/share = $6,325

However, Mark wants to sell his shares when he can make a profit of $1,000. To calculate the minimum offer price that would allow Mark to achieve his profit target, we can use the following equation:

Profit = (Offer price - Net asset value) x Number of shares

$1,000 = (Offer price - $25.17) x 250 shares

$1,000/250 shares + $25.17 = $29.17

Therefore, Mark needs an offer price of at least $29.17/share to achieve his profit target of $1,000.

Since the current offer price is only $25.30/share, Mark should not sell his shares today if he wants to achieve his profit target. He should wait until the offer price reaches at least $29.17/share to sell his shares and make a profit of $1,000. However, if Mark needs the money urgently or has a different investment strategy, he may choose to sell his shares at the current offer price.

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Rocket corp has 100 bonds outstanding. The bonds are annual coupon bonds with a face value of $1000, a coupon rate of 6.5%, and 11 years until the bond matures. If the YTM of the bonds is 7.5%, what is the total market value of the bonds for Rocket corp?

Answers

The total market value of the 100 annual coupon bonds for Rocket Corp is approximately $94,734.

To find the total market value of the 100 annual coupon bonds for Rocket Corp, we first need to calculate the market value of one bond. Given that the bonds have a face value of $1,000, a coupon rate of 6.5%, 11 years until maturity, and a YTM of 7.5%, we can use the bond pricing formula:Bond Price = (C * (1 - (1 + YTM)^(-n)) / YTM) + (FV / (1 + YTM)^n)Where:C = annual coupon payment (Face value * coupon rate) = 1000 * 0.065 = $65YTM = yield to maturity = 0.075n = number of years to maturity = 11FV = face value = $1,000.

Using the formula, we get:Bond Price = (65 * (1 - (1 + 0.075)^(-11)) / 0.075) + (1000 / (1 + 0.075)^11)Bond Price ≈ $947.34Now, we can calculate the total market value of the 100 bonds:Total Market Value = 100 bonds * $947.34 per bond ≈ $94,734So, the total market value of the 100 annual coupon bonds for Rocket Corp is approximately $94,734.

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merchandise that is delivered, received, and sent immediately to a production area is referred to as a:

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Merchandise that is delivered, received, and sent immediately to a production area is referred to as "just-in-time" inventory.

Just-in-time (JIT) inventory is a lean manufacturing strategy that focuses on reducing waste and increasing efficiency in the production process.

The goal of JIT inventory is to have materials delivered only when they are needed for production. This means that inventory levels are kept at a minimum, reducing storage costs and the risk of product obsolescence. When materials arrive, they are immediately sent to the production area, where they are used in the manufacturing process.

JIT inventory relies heavily on communication and coordination between suppliers and manufacturers to ensure that materials arrive on time and in the correct quantities. This requires a high level of trust and collaboration between all parties involved.

There are several benefits to using JIT inventory. It can lead to reduced inventory costs, improved quality control, and increased productivity. By having materials delivered only when they are needed, companies can also respond more quickly to changes in customer demand.

However, there are also risks associated with JIT inventory. If suppliers fail to deliver materials on time, it can cause delays in production and ultimately result in lost sales. Additionally, there is a higher level of risk associated with relying on a small number of suppliers for critical materials.

Overall, just-in-time inventory can be an effective strategy for companies looking to improve efficiency and reduce waste in their production processes.

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The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009, resulted in
(A) rapid growth of both the money supply and nominal GDP.
(B) rapid growth of the money supply and a substantial increase in the rate of inflation.
(C) low interest rates and a sharp decline in the velocity of the money supply.
(D) low interest rates and a sharp increase in the velocity of the money supply

Answers

The quantitative easing (QE) policies of the Fed during and following the financial crisis of 2008-2009 resulted in low interest rates and a sharp decline in the velocity of the money supply. The correct option is (C).

QE is a monetary policy tool used by central banks to stimulate the economy by increasing the money supply through the purchase of government bonds and other financial assets. This strategy aimed to provide liquidity, stabilize financial markets, and encourage lending and investment.

The implementation of QE led to a rapid growth in the money supply, as the Fed's balance sheet expanded significantly. However, this did not translate into a substantial increase in nominal GDP or inflation rate, as some may have anticipated.

Instead, the impact of QE was more pronounced in the form of low interest rates, which persisted for an extended period. These low interest rates were essential in promoting borrowing and stimulating economic activity during the recovery period.

Additionally, QE contributed to a sharp decline in the velocity of money, which refers to the rate at which money circulates in the economy. This decline occurred because, despite the increase in the money supply, economic agents held on to cash instead of spending it due to uncertainties in the economic environment. The low velocity of money, combined with low interest rates, helped mitigate the inflationary pressures that could have arisen from an increased money supply.

In summary, the Fed's quantitative easing policies during and after the financial crisis led to low interest rates and a sharp decline in the velocity of the money supply, facilitating a gradual recovery of the economy.

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Firms with high_ratios are well positioned to pay off unexpected expenses quickly. A. turnover O B. leverage O C. liquidity OD. P/E

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Firms with high liquidity ratios are well positioned to pay off unexpected expenses quickly: A liquidity ratio. The correct option is C.

A liquidity ratio measures a company's ability to pay off its short-term liabilities using its short-term assets. Higher liquidity ratios indicate that a company can more easily cover its obligations, making it better prepared for unexpected expenses.


A. Turnover ratio measures how efficiently a company is utilizing its assets, such as inventory or accounts receivable. It is not directly related to paying off unexpected expenses.

B. Leverage ratio measures the proportion of a company's debt to its equity. A higher leverage ratio may indicate a higher risk, as the company relies more on borrowed funds. This is not directly related to covering unexpected expenses.

C. Liquidity ratio, as explained earlier, measures a company's ability to meet its short-term liabilities using its short-term assets.

D. P/E (price-to-earnings) ratio measures the valuation of a company by comparing its current market price to its earnings per share. This is more relevant for investors evaluating the value of a company's stock, not its ability to pay off unexpected expenses.

In summary, firms with high liquidity ratios are well positioned to pay off unexpected expenses quickly because they have the necessary short-term assets to cover their short-term liabilities.

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Complete question:

Firms with high____ratios are well positioned to pay off unexpected expenses quickly.

A. turnover

B. leverage  

C. liquidity

D. P/E

high-income people are willing to pay more than lower-income people to avoid the risk of death.for example, they are more likely to pay for safety features on cars. do you think cost-benefit analysts should take this fact into account when evaluating public projects? consider, for instance, a rich town and a poor town, both of which are considering the installation of a traffic light. should the rich town use a higher dollar value for a human life in making this decision? why or why not?

Answers

Yes, cost-benefit analysts should take into account fact that high-income people are willing to pay more than lower-income people to avoid risk of death. This is because value of human life is not same for everyone and can vary based on their financial circumstances and priorities.  


In the example of the rich town and the poor town both considering the installation of a traffic light, the cost-benefit analysts should take into account the different income levels and willingness to pay for safety. However, this does not necessarily mean that the rich town should use a higher dollar value for a human life in making the decision.


Instead, the cost-benefit analysis should consider the overall benefits and costs of installing the traffic light in each town, including the potential reduction in accidents and injuries, the impact on traffic flow, and the costs of installation and maintenance. The analysis should also consider any disparities in safety and access to transportation between the two towns, and whether the installation of a traffic light would help to address these disparities.


Ultimately, the decision on whether to install the traffic light should be based on a comprehensive analysis that takes into account the needs and preferences of both the rich and poor communities, rather than solely on the basis of income level.

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The independent auditor's opinion covers, at a minimum:
a. Financial section of the CAFR
b. Primary government.
c. CAFR
d. Basic financial statements

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The independent auditor's opinion covers, at a minimum, the "CAFR" (Comprehensive Annual Financial Report) and the "basic financial statements."

The CAFR is a report that includes financial information and analysis for a state or local government, including the primary government and any component units.

The basic financial statements are a part of the CAFR and include the government-wide financial statements, fund financial statements, and notes to the financial statements.

The auditor's opinion is typically included at the beginning of the CAFR and indicates whether the financial statements have been audited and whether they present fairly, in all material respects, the financial position and results of operations of the government.

Therefore, options a, b, and d are incorrect because they do not cover the complete scope of the independent auditor's opinion.

Option c, "CAFR," is the correct answer as it covers the entire report that includes the basic financial statements and provides a comprehensive overview of the financial position of the government entity.

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You have just purchased a bond with the following characteristics: $1,000 face value, 6% annual coupon. 7% market rate, 6 years to maturity. What is the price? _________Using the information from the prior question, what is the yield to call if the bond is callable in 3 years?_________

Answers

The price of the bond can be calculated using the present value formula:

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

Where:

C = coupon payment = $60

r = market rate = 7%

n = number of years to maturity = 6

F = face value = $1,000

Plugging in the values:

Price = (60 / 0.07) x [1 - 1 / (1 + 0.07)^6] + 1000 / (1 + 0.07)^6

Price = $1,018.36

Using the same formula, we can find the price of the bond in 3 years:

Price in 3 years = (60 / 0.07) x [1 - 1 / (1 + 0.07)^3] + 1000 / (1 + 0.07)^3

Price in 3 years = $1,027.46

The yield to call can be calculated using the following formula:

YTC = [C + (F - P) / n] / [(F + P) / 2]

Where:

C = coupon payment = $60

F = face value = $1,000

P = price of the bond in 3 years = $1,027.46

n = number of years from call date to maturity = 3

Plugging in the values:

YTC = [60 + (1000 - 1027.46) / 3] / [(1000 + 1027.46) / 2]

YTC = 6.23%

Therefore, the yield to call is 6.23%.

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You are given these quotes by the bank:
You can sell Canadian dollars (C$) to the bank for $0.68.
You can buy Canadian dollars (C$) from the bank for $0.69.
The bank is willing to buy dollars for 0.89 euros per dollar.
The bank is willing to sell dollars for 0.94 euros per dollar.
The bank is willing to buy Canadian dollars for 0.63 euros per C$.
The bank is willing to sell Canadian dollars for 0.67 euros per C$.
You have $80,000. Estimate your profit or loss if you would attempt triangular arbitrage by converting your dollars to euros, and then convert euros to Canadian dollars and then convert Canadian dollars to U.S. dollars. Use a minus sign to enter a loss, if any. Do not round intermediate calculations. Round your answer to the nearest dollar.

Answers

By attempting triangular arbitrage, you would make a profit of $6,372.15. To estimate the profit or loss from triangular arbitrage with $80,000, follow these steps:

1. Convert USD to Euros: Divide $80,000 by the bank's selling rate of 0.94 euros per dollar to get 80,000 / 0.94 = 85,106.38 euros.


2. Convert Euros to Canadian dollars: Divide 85,106.38 euros by the bank's selling rate of 0.67 euros per C$ to get 85,106.38 / 0.67 = 127,017.88 C$.


3. Convert Canadian dollars back to USD: Multiply 127,017.88 C$ by the bank's buying rate of $0.68 per C$ to get 127,017.88 * 0.68 = $86,372.15.


4. Calculate the profit or loss: Subtract the initial investment of $80,000 from the final amount of $86,372.15 to get 86,372.15 - 80,000 = $6,372.15.

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