QUESTION 4 You receive a $17,000 5-year constant amortization loan (CAL). The loan's annual interest rate is 11%. What is the total payment in year 4, rounded to the nearest dollar?

Answers

Answer 1

The total payment in year 4 for a $17,000 5-year constant amortization loan (CAL) with an annual interest rate of 11% is $4,148.

To find the total payment in year 4, we need to follow these steps:

1. Calculate the constant annual principal payment: Divide the loan amount by the loan term.

Principal payment = $17,000 / 5 years = $3,400 per year

2. Calculate the interest payment for year 4: Multiply the remaining loan balance at the beginning of year 4 by the interest rate.

Remaining loan balance at the beginning of year 4 = $17,000 - ($3,400 x 3) = $6,800

Interest payment for year 4 = $6,800 x 11% = $748

3. Calculate the total payment for year 4: Add the constant annual principal payment and the interest payment for year 4.

Total payment in year 4 = $3,400 (principal) + $748 (interest) = $4,148

Rounded to the nearest dollar, the total payment in year 4 for the 5-year constant amortization loan is $4,148.

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Related Questions

1. Your company has $3,000,000 that can be used for triangular arbitrage. You observe the following exchange rates:
You can sell dollars for 0.888 euros per dollar and buy dollars for 0.896 euros per dollars.
You can sell Australian dollars (A$) for $.73 and buy Australian dollars for $.75.
You can sell Australian dollars (A$) for 0.68 euros per A$ and buy Australian dollars (A$) for 0.70 euros per A$.
a. (8 points) What profits can you earn from triangular arbitrage?
b. (6 points) One of the colleagues in the company is concerned about your plan to use triangular arbitrage like this, calling it a "risky scheme" that could backfire and hurt the profitability of the company. Is your colleague correct? Explain why or why not.

Answers

a. Triangular arbitrage profit = $35,714.2.

b. The colleague is not correct

$/A$ = 0.73-0.75

Euro/A$ = 0.68-0.70

Bid Euro/$ = Bid Euro/A$ * Bid A$/$ = Bid Euro/A$ * (1/Ask $/A$) = 0.68 * (1/0.75) = 0.907

Ask Euro/$ = Ask Euro/A$ * Ask A$/$ = Ask Euro/A$ * (1/Bid $/A$) = 0.70 * (1/0.73) = 0.959

Cross Rate = Euro/$ = 0.888-0.896

2 approaches to arbitrage are as follows:

(i) Buy $ via A$ rate i.e., 0.959(ask rate) and Sell $ via cross rate i.e., 0.888(bid rate)

(ii) Buy $ via cross rate i.e., 0.896 (ask rate) and Sell $ via A$ rate i.e., 0.907 (bid rate)

Only (ii) approach will result in Profit. (i) will generate loss

Steps for Arbitrage:

(1) Buy A$ using $3,000,000, and receive 3,000,000/0.75(ask rate) = A$ 4,000,000

(2) Buy Euro using A$ 4,000,000 via A$ Rate, and receive 4,000,000*0.68 (bid rate) = Euro 2,720,000

(3) Buy $ using Euro 2,720,000, and receive 2,720,000/0.896 (ask rate) = $3,035,714.29

Arbitrage Profit = USD received at the end - USD invested at the beginning = $3,035,714.29 - $3,000,000 = (a) $35,714.29

(b)

Arbitrage strategies are strategies to take advantage of the price differential in two different markets. It is a RISK FREE strategy where there is a profit without any chance of loss.

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Recommendation for Government borrowing
1) Write a report on the topic with bullet points and a brief
explanation of each point

Answers

Recommendations for Government Borrowing are to Maintain a sustainable debt-to-GDP ratio, Diversify sources of borrowing, Utilize long-term borrowing, Prioritize productive investments, Monitor and manage fiscal risks, etc.

1. Maintain a sustainable debt-to-GDP ratio
- The government should aim to keep its debt levels manageable compared to the size of its economy, as a high debt-to-GDP ratio may lead to reduced investor confidence and increased borrowing costs.

2. Diversify sources of borrowing
- To reduce dependency on a single source of funding and minimize risks, the government should explore various borrowing options, including issuing bonds, obtaining loans from international organizations, and borrowing from other countries.

3. Utilize long-term borrowing
- Long-term borrowing can help the government to lock in lower interest rates, providing more predictable debt servicing costs and allowing for better planning of future spending and investment.

4. Implement a robust debt management strategy
- A well-defined debt management strategy can help the government minimize borrowing costs, manage risks, and ensure timely debt servicing. This may include developing a debt management office to oversee and coordinate borrowing activities.

5. Prioritize productive investments
- Government borrowing should be directed towards productive investments, such as infrastructure development, education, and healthcare, which can promote long-term economic growth and improve living standards.

6. Enhance transparency and accountability
- To maintain trust and credibility among investors, the government should provide regular and accurate information about its borrowing activities and debt levels, and demonstrate responsible fiscal management.

7. Monitor and manage fiscal risks
- The government should identify and assess potential fiscal risks, such as economic downturns, natural disasters, or changes in global financial conditions, and develop contingency plans to mitigate their impact on debt levels and borrowing costs.

By following these recommendations, government borrowing activities can be conducted responsibly and contribute to sustainable economic growth and development.

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f wfo began business as a cash-method corporation in year 1, in which year would it have first been required to use the accrual method?

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The decision to change from the cash method to the accrual method of accounting is usually based on factors such as the size and complexity of the business, as well as regulatory requirements.

Assuming that F WFO is a U.S. corporation and that it meets the average annual gross receipts test, it would have been required to use the accrual method starting from the tax year beginning after December 31, 1986. This is because the Tax Reform Act of 1986 required corporations with gross receipts over $5 million to use the accrual method of accounting for tax purposes, unless they meet certain exceptions.

However, if F WFO has gross receipts of $5 million or less, it can continue to use the cash method of accounting unless it grows to exceed the $5 million threshold or it chooses to switch to the accrual method.

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a company purchased a tract of land for its natural resources at a cost of $1,742,900. it expects to mine 2,090,000 tons of ore from this land. the salvage value of the land is expected to be $259,000. the depletion expense per ton of ore is:

Answers

The depletion expense per ton of ore is $0.71. To calculate the depletion expense per ton of ore, we need to first determine the total depletion cost, which is the cost of the land minus the salvage value:

Total depletion cost = Cost of the land - Salvage value

Total depletion cost = $1,742,900 - $259,000

Total depletion cost = $1,483,900

Next, we divide the total depletion cost by the estimated amount of ore to be mined:

Depletion expense per ton of ore = Total depletion cost / Estimated amount of ore

Depletion expense per ton of ore = $1,483,900 / 2,090,000

Depletion expense per ton of ore = $0.71 per ton

Therefore, the depletion expense per ton of ore is $0.71.

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If $1 = 96 Japanese yen on Wednesday and on Thursday $1 = 100 Japanese yen, then the dollar depreciated against the yen between Wednesday and Thursday.
True
False

Answers

The given statement, "If $1 = 96 Japanese yen on Wednesday and on Thursday $1 = 100 Japanese yen, then the dollar depreciated against the yen between Wednesday and Thursday" is True.

The exchange rate between the US dollar and Japanese yen changed from 1 USD = 96 JPY on Wednesday to 1 USD = 100 JPY on Thursday. This means that it took more US dollars to purchase the same amount of Japanese yen on Thursday than it did on Wednesday.

In other words, the value of the US dollar decreased relative to the Japanese yen, or in financial terms, the dollar depreciated against the yen. This is a common occurrence in foreign exchange markets, where currency values can fluctuate rapidly based on various economic and political factors.

It is important for international businesses and investors to monitor exchange rates and currency movements in order to make informed decisions about their financial transactions.

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QUE// 1(a) ZIPBIT common stock is selling at a P/E of 10 times trailing earnings . The stock price is $23.50. what were the firms earnings per share .
1(b) PEGCOR has a P/E ratio of 1.5 . Earnings per share are $ 2.00 and the expressed EPS five years from today is $ 3.22 . Calculate the PEG ratio.

Answers

The PEG ratio for PEGCOR is 12.30.

We can use the formula for P/E ratio to find the earnings per share (EPS):

P/E ratio = Stock price / EPS

Rearranging the formula, we get:

EPS = Stock price / P/E ratio

Substituting the given values, we get:

EPS = $23.50 / 10 = $2.35

Therefore, the firm's earnings per share is $2.35.

1(b)

The PEG ratio is calculated as the P/E ratio divided by the expected earnings growth rate:

PEG ratio = P/E ratio / Earnings growth rate

To find the earnings growth rate, we can use the formula:

Earnings growth rate = (Expressed EPS / Current EPS)[tex]^(1/n)[/tex]- 1

where n is the number of years between the current EPS and the expressed EPS.

Substituting the given values, we get:

Earnings growth rate = ($3.22 / $2.00)[tex]^(1/5)[/tex] - 1

= 0.1219 or 12.19%

Now, we can calculate the PEG ratio:

PEG ratio = P/E ratio / Earnings growth rate

= 1.5 / 0.1219

= 12.30

Therefore, the PEG ratio for PEGCOR is 12.30.

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Thomas and Kathryn estimate they will need $65,000 per year in retirement in today’s dollars.
a. How much will they need in their account the day they retire if they expect to live in retirement for 35 years, expect to earn 6% annually on investments, and expect inflation to continue at 3%?
b. How much will they need to save at the beginning of each month to achieve their retirement goal if they expect to earn 6% annually on their investments prior to retirement?

Answers

a. Thomas and Kathryn will need approximately $1,405,182 in their account the day they retire.
b. To achieve their retirement goal, they need to save about $1,142 at the beginning of each month.


a. To determine the amount needed in their account, we'll use the future value of annuity formula:
FV = P * [((1 + r)ⁿ - 1) / r], where P = yearly payment, r = annual interest rate - inflation rate, and n = number of years.
FV = $65,000 * [((1 + 0.03)³⁵ - 1) / 0.03] ≈ $1,405,182


b. To find out how much they need to save monthly, we'll use the future value of a series of payments formula:
FV = PMT * [((1 + r)ⁿ - 1) / r], where PMT = monthly payment, r = annual interest rate / 12, and n = number of years * 12.
$1,405,182 = PMT * [((1 + 0.06/12)³⁵ˣ¹² - 1) / (0.06/12)]
PMT ≈ $1,142

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The present value of an annuity which pays $200 at the end of each year for 5 years is $800. Use the approximation formula to calculate the interest rate associated with this annuity. A) 6.33% B) 7.33% C) 8.33% D) 9.33% E) 10.33%

Answers

The estimated interest rate associated with this annuity is approximately  125%, so the correct answer is not provided among the choices.

How to find the present value of an annuity?

The present value of an annuity formula is:

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

where PV is the present value of the annuity, C is the annual payment, r is the interest rate, and n is the number of periods.

In this case, we are given that the present value of the annuity is $800, the annual payment is $200, and the number of periods is 5.

We can use the approximation formula to estimate the interest rate:

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

Approximation formula: PV ≈ C x [n / r]

Re-arranging the approximation formula to solve for the interest rate, we get:

r ≈ (C x n) / PV

Plugging in the values, we get:

r ≈ (200 x 5) / 800

r ≈ 1.25

So the estimated interest rate associated with this annuity is approximately 1.25 or 125%. However, this is an annual percentage rate, and we need to convert it to a percentage rate per period to compare it to other rates. Since the annuity pays annually, the period is also one year. Therefore, the interest rate is:

r = 1.25 x 100%

r = 125%

The correct answer is not provided among the choices.

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In an incremental analysis, the only costs to be considered are:Select one:a. variable costs.b. sunk costs.c. manufacturing costs.d. relevant costs.

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Only relevant costs or expenses should be taken into account in an incremental analysis. Option d is Correct.

The cost of producing an extra unit of a product is known as the incremental cost. Incremental cost analysis is a tool that businesses may use to assess the profitability of different business units. If incremental costs are more than incremental revenue, a corporation may suffer a loss.

In an incremental analysis, pertinent expenses could be included in: Variable costs: These expenses might differ from one choice to the next. Costs that are constant across all possibilities are known as non-variable costs.

Opportunity costs: These expenses are related to the expansion or contraction of alternative sources of income. As sunk costs are historical costs that have already been incurred in the past, they are never taken into account in incremental analyses.  Option d is Correct.

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In an incremental analysis, the only costs to be considered are relevant costs. Relevant costs are costs that are directly affected by a decision and will change depending on the decision made. These costs can be either variable or fixed and may include costs such as direct materials, direct labor, and variable overhead. The correct option is d.


Sunk costs, on the other hand, are costs that have already been incurred and cannot be changed or recovered, regardless of the decision made. Therefore, sunk costs should not be considered in an incremental analysis because they are not relevant to the decision at hand. Manufacturing costs, which include both direct and indirect costs related to production, may be relevant or irrelevant depending on the decision being made.

For example, if the decision is whether to continue producing a product or discontinue it, then the manufacturing costs would be relevant because they would be directly affected by the decision. However, if the decision is whether to invest in new equipment or not, then the manufacturing costs may not be relevant because they would not change based on the decision.

Overall, in an incremental analysis, it is important to focus on relevant costs and ignore sunk costs and irrelevant costs such as fixed overhead. This allows decision-makers to make informed decisions based on the costs that are directly affected by the decision.The correct option is d.

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in which of the following cases would the holder in due course not receive payment?group of answer choicesnineteen-year-old dylan signs a promissory note to pay $500 to itzel and hands her the note.ricardo forges amberley's name to a promissory note and sells it to divine.yoko borrows money from carole and signs a promissory note to repay the amount with interest.sean signs a promissory note stating he will repay the amount by next month.

Answers

In due course, the holder would not receive payment in the case where Ricardo forged Amberley's name on a promissory note and sold it to Divine. A "holder in due course" is a person who acquires a negotiable instrument, like a promissory note, in good faith and without any knowledge of its defects. In this situation, the promissory note is invalid due to forgery, which is a legal defect.

In the other cases, the holders in due course would likely receive payment. Nineteen-year-old Dylan signing a promissory note to pay $500 to Itzel is a valid agreement, as there is no indication of fraud or other defects. Similarly, Yoko borrowing money from Carole and signing a promissory note to repay the amount with interest is also a legitimate transaction. Finally, Sean signing a promissory note stating he will repay the amount by next month is a valid commitment, assuming there are no underlying issues or defects.

However, it is important to note that the holder's ability to receive payment depends on the validity of the promissory notes and the good faith of the parties involved. In the case of Ricardo forging Amberley's name, the holder would not receive payment in due course due to the legal defect in the promissory note.

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Discussion
Questions:
In the 1960s, coffee came in 1-pound cans. Today, most coffee comes
in 11-ounce cans.
Can you think of an explanation for why?
Can you think of other products besides coffee wh

Answers

There could be several reasons why coffee now comes in 11-ounce cans instead of 1-pound cans. One reason could be changes in consumer demand and behavior. Perhaps people are buying smaller amounts of coffee at a time, or they are more interested in trying different blends and flavors, so having smaller quantities available is more practical. Another reason could be changes in the coffee market and supply chain, such as increased competition, changes in pricing or availability of raw materials, or changes in shipping and distribution costs.
Why the coffee came in 1-pound cans?
As for other products, there are many examples of products that used to come in larger sizes or quantities but are now offered in smaller sizes or portions. For example, soft drinks used to be sold primarily in 12-ounce cans, but now you can find them in 8-ounce cans, 20-ounce bottles, and other sizes. Snack foods like potato chips and candy bars used to come in larger packages, but now they are often sold in smaller portions as part of a trend toward healthier snacking habits. In general, the availability of smaller product sizes and portions reflects changing consumer preferences and the desire for greater convenience, portability, and flexibility in how products are consumed.

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Consider the following information: Rate of Return If State Occurs State of Probability of Stock C Economy State of Economy Stock A Stock B Boom Good Poor Bust .20 .25 .10 45 .19 .16 .05 .38 .23 -.09

Answers

The rate of return of stocks A, B and C is determined by the state of the economy. When the economy is in a boom, stock A has a probability of .20, stock B has a probability of .25, and stock C has a probability of .10.

When the economy is in a good state, stock A has a probability of .19, stock B has a probability of .16, and stock C has a probability of .05. Finally, when the economy is in a poor or bust state, stock A has a probability of .38, stock B has a probability of .23, and stock C has a probability of -.09.

In conclusion, the rate of return of the stocks depends on the state of the economy, with stock A having the highest return in a boom state and stock C having the lowest return in a poor or bust state.

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calculate the expected return for the two stocks. (do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. calculate the standard deviation for the two stocks. (do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

The expected return for the portfolio is 12% and the standard deviation is 9.44%.

To calculate the expected return for the two stocks, we first need to calculate the weighted average of their individual expected returns. Let's assume stock A has an expected return of 10% and stock B has an expected return of 15%. If we invest 60% in stock A and 40% in stock B, the expected return would be:

Expected return = (0.6 x 10%) + (0.4 x 15%) = 12%

To calculate the standard deviation for the two stocks, we need to first calculate their individual standard deviations. Let's assume stock A has a standard deviation of 8% and stock B has a standard deviation of 12%. If we invest 60% in stock A and 40% in stock B, the portfolio standard deviation can be calculated using the following formula:

Portfolio standard deviation = (0.6^2 x 8%^2 + 0.4^2 x 12%^2 + 2 x 0.6 x 0.4 x 8% x 12%)^0.5 = 9.44%

Therefore, the expected return for the portfolio is 12% and the standard deviation is 9.44%.

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the central bank increases the money supply by 3% over a long period while the country runs at full employment. in the long run, what does the quantity theory of money say will happen?

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According to the quantity theory of money, in the long run, a sustained increase in the money supply would lead to a proportional increase in the price level, while real output and employment would remain unchanged at their full-employment levels.

Therefore, if the central bank increases the money supply by 3% over a long period while the country runs at full employment, the quantity theory of money would predict a long-run increase in the price level by approximately 3%, assuming that the money velocity and the real output of the economy remain constant.

This theory assumes that changes in the money supply lead to proportional changes in nominal spending and prices in the long run, while real variables such as output and employment are determined by factors such as technology, capital stock, and labor supply.

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The French Thaler and Company’s stock has paid dividends of $1.67 over the past 12 months. Its historical growth rate of dividends has been 6 percent, but analysts expect the growth to slow to 3 percent annually for the foreseeable future. Determine the value of the stock if the required rate of return on stocks of similar risk is 10 percent. (Round answer to 2 decimal places, e.g. 527.52.)

Answers

The value of the stock of French Thaler and Company is $36.04.

To calculate the stock's value, we can use the dividend discount model (DDM), which assumes that the stock's value is the present value of all future dividends.

We can use the formula:

PV = D1 / (r - g)

where PV is the present value, D1 is the expected dividend next year, r is the required rate of return, and g is the expected growth rate of dividends.

Using the given information, we can calculate D1 as follows:

D1 = D0 * (1 + g)

= $1.67 * (1 + 0.03)

= $1.72

Next, we can plug in the values into the formula:

PV = $1.72 / (0.10 - 0.03)

= $36.04

Therefore, the value of the stock of is $36.04.

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The value of the stock of French Thaler and Company is $36.04.

To calculate the stock's value, we can use the dividend discount model (DDM), which assumes that the stock's value is the present value of all future dividends.

We can use the formula:

PV = D1 / (r - g)

where PV is the present value, D1 is the expected dividend next year, r is the required rate of return, and g is the expected growth rate of dividends.

Using the given information, we can calculate D1 as follows:

D1 = D0 * (1 + g)

= $1.67 * (1 + 0.03)

= $1.72

Next, we can plug in the values into the formula:

PV = $1.72 / (0.10 - 0.03)

= $36.04

Therefore, the value of the stock of is $36.04.

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1. The general premise of The Challenger Sale Model is that "relationship selling is dead". Do you agree or disagree. Why or why not?
2. Do you agree with this notion that successful sellers create "constructive tension" during the sales process? Why or why not.
3. Give an example where a seller creates "constructive tension" during the sales process. Use either a sales situation that you have been either the seller or customer or just make up a scenario. You may also use the scenario from last week (Selling 3M Cubitron II Extract Sander to Tuuli Energy).

Answers

This approach challenges the customer's status quo, leading to constructive tension that can ultimately result in a successful sale.

1. I partially agree with the general premise of The Challenger Sale Model that "relationship selling is dead." While relationships still play a significant role in the sales process, solely relying on relationships may not be enough to differentiate oneself from competitors. The Challenger Sale Model focuses on adding value through insights and educating customers on potential solutions to their problems. This approach requires building trust through knowledge and expertise, rather than just building rapport. Therefore, while relationships still hold value, they should not be the sole focus of a sales strategy.

2. Yes, I agree that successful sellers create "constructive tension" during the sales process. This tension is created by challenging the customer's current way of thinking, asking tough questions, and presenting new perspectives. This approach helps the customer realize the potential benefits of changing their current approach, leading to a more effective sales outcome.

3. One example of a seller creating "constructive tension" during the sales process is when a seller challenges the customer's current solution to a problem. For example, a seller could ask a customer why they are currently using a certain product or service and then provide insights on how that product or service could be improved. In the case of the selling 3M Cubitron II Extract Sander to Tuuli Energy, the seller could have asked Tuuli Energy about their current sanding process and how they feel about the results. The seller could then introduce the Cubitron II Extract Sander as a solution that could potentially improve their results and ask for their thoughts on the potential benefits.

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True or False: One Universal aspect to the gendered division of labor in societies is that women are culturally expected to carry the major responsibility for childcare

Answers

True, one universal aspect of the gendered division of labor in societies is that women are culturally expected to carry the major responsibility for childcare. Across various cultures and historical periods, women have been predominantly responsible for nurturing and raising children, while men have been more involved in activities such as hunting, gathering, or providing for the family.

This expectation is deeply ingrained in societal norms and cultural beliefs, and it is often reinforced through gender socialization. From a young age, children are exposed to gendered expectations and roles, which further perpetuate the division of labor.

For example, girls may be encouraged to play with dolls and engage in caregiving activities, while boys are encouraged to participate in sports and other physically demanding activities.

Despite recent progress in gender equality, the responsibility for childcare still predominantly falls on women in most societies. This can limit women's opportunities for education, employment, and career advancement, further perpetuating the gender gap in many areas of life.

In conclusion, it is true that women are culturally expected to carry the major responsibility for childcare in societies. This universal aspect of the gendered division of labor is rooted in cultural norms, gender socialization, and historical precedents, and it continues to have significant implications for gender equality in various aspects of life.

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fundamental risk affects closed end funds in which of the following ways? multiple choice question. the fund can sell at a discount and the discount could increase closed end funds will never sell at a premium

Answers

Fundamental risk can affect closed-end funds by causing them to sell at a discount.

This discount could increase if the underlying assets or management performance continue to be perceived as having high risk. Closed-end funds can also sell at a premium in certain situations, so option 2 is not accurate.

Fundamental risk is risk that affects entire societies or a large population within a society. Natural disasters, such as earthquakes and hurricanes, fall into the category of fundamental risk, as do phenomena such as inflation and war, which typically affect large numbers of people.

In distinction to static risk, fundamental risk may or may not be insurable. Particular risk, in contrast to fundamental risk, refers to risks that affect an individual, such as a fire that destroys a family home, theft of a car or robbery. Particular risk can be insured.

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which approach to forecasting draws on economic theory to develop models that predict exchange rate movements?

Answers

The econometric approach to forecasting draws on economic theory to develop models that predict exchange rate movements.

This approach involves analyzing economic factors such as inflation, interest rates, and trade balances, as well as political and social factors that may impact currency values. By understanding these factors and using them to create predictive models, economists can forecast future exchange rate movements with a certain level of accuracy.

It is a method that is used to forecast exchange rates by gathering all relevant factors that may affect a certain currency. It connects all these factors to forecast the exchange rate. The factors are normally from economic theory, but any variable can be added to it if required.

For example, say, a forecaster for a Canadian company has researched factors he thinks would affect the USD/CAD exchange rate. From his research and analysis, he found that the most influential factors are: the interest rate differential (INT), the GDP growth rate differences (GDP), and the income growth rate (IGR) differences.

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The approach to forecasting that draws on economic theory to develop models that predict exchange rate movements is known as the fundamental analysis approach. This approach involves analyzing various economic factors that impact currency exchange rates, such as interest rates, inflation, political stability, and trade balances.

Fundamental analysis is a method of forecasting that uses economic factors, such as interest rates, inflation rates, trade balances, and other macroeconomic indicators, as well as geopolitical events and market sentiment, to predict exchange rate movements. It relies on the belief that economic fundamentals drive currency movements in the long term and that analyzing these factors can provide insights into future exchange rate trends. Fundamental analysis is commonly used by economists, currency traders, and financial institutions to make informed decisions about foreign exchange transactions and investments.

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suppose you bought 50 shares of stock at an initial price of $81 per share. the stock paid a dividend of $1.20 per share during the following year, and the share price at the end of the year was $93. what was your capital gains yield on this investment?

Answers

The capital gains yield on this investment is 14.81%.

To calculate the capital gains yield on this investment, you can follow these steps:

1. Determine the initial investment:

50 shares x $81 per share = $4050

2. Calculate the final value of the shares:

50 shares x $93 per share = $4650

3. Find the capital gains:

Final value - Initial investment = $4650 - $4050 = $600

4. Calculate the capital gains yield:

(Capital gains / Initial investment) x 100 = ($600 / $4050) x 100 ≈ 14.81%

So, the capital gains yield on this investment was approximately 14.81%.

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A mutual fund manager how $20 mon portfolio with a beta of 1.7. The rok pre rote 2.5, and the market risk premium #The manager expekts to receive an additional $5 million, which the plans to invest in a number of stocks. Mer investing the additional funds, she wants the fund's required return to be 16%. What should be the average beta of the new stocks added to the portfolio? Negative value, any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to one dedmal place is

Answers

The average beta of the new stocks added to the portfolio should be approximately 0.9.

In order to calculate the average beta of the new stocks that the mutual fund manager plans to add to the portfolio, we need to follow these steps:

1. Determine the initial portfolio value: $20 million
2. Determine the initial portfolio beta: 1.7
3. Determine the risk-free rate: 2.5% (typo corrected to "risk-free rate")
4. Determine the market risk premium: Not provided, but we can calculate it using the given information.
5. Determine the desired portfolio required return: 16%

Now, let's calculate the market risk premium using the initial portfolio beta, risk-free rate, and initial portfolio required return:
Initial Portfolio Required Return = Risk-Free Rate + (Initial Portfolio Beta * Market Risk Premium)

Using the given information:
16% = 2.5% + (1.7 * Market Risk Premium)

Solve for the Market Risk Premium:
Market Risk Premium = (16% - 2.5%)/1.7 ≈ 7.94%

Next, let's determine the total portfolio value after receiving the additional $5 million:
New Portfolio Value = Initial Portfolio Value + Additional Funds = $20 million + $5 million = $25 million

Now, we will calculate the average beta of the new stocks using the desired portfolio required return, risk-free rate, market risk premium, and new portfolio value:
Desired Portfolio Required Return = Risk-Free Rate + (Weighted Average Beta * Market Risk Premium)

16% = 2.5% + ((($20 million * 1.7) + ($5 million * Average Beta of New Stocks))/$25 million) * 7.94%

Solve for Average Beta of New Stocks:
Average Beta of New Stocks = ((16% - 2.5%)/7.94% * $25 million - ($20 million * 1.7))/$5 million ≈ 0.9

Thus, the average beta of the new stocks added to the portfolio should be approximately 0.9.

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spikes sports manufacturing company uses a job order costing system to account for its production of specialty golf accessories. on may 31 the company reported the following balances in its inventory accounts: $45,000 in raw materials, $25,000 in work in process, and $15,000 in finished goods. on may 31, the total of all open job order cost sheets would be

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The total of all open job order cost sheets as of May 31 for Spikes Sports Manufacturing Company would be $25,000.



Concept of job order costing system:  

We need to understand the concept of job order costing system. In this system, costs are accumulated by job order or specific order.  

Each job or order is assigned a unique identification number and all the costs related to that job are accumulated on a job order cost sheet. The cost sheet includes the direct materials, direct labor, and manufacturing overhead costs incurred for that job.

Based on the information provided in the question, we know that Spikes Sports Manufacturing Company uses a job order costing system to account for its production of specialty golf accessories. On May 31, the company reported the following balances in its inventory accounts: $45,000 in raw materials, $25,000 in work in process, and $15,000 in finished goods.

To determine the total of all open job order cost sheets as of May 31, we need to consider the costs that have been incurred but have not yet been assigned to a specific job or order. These costs are included in the Work in Process (WIP) inventory account.

Therefore, the total of all open job order cost sheets as of May 31 would be the balance of the WIP inventory account, which is $25,000.

In summary, the total of all open job order cost sheets as of May 31 for Spikes Sports Manufacturing Company would be $25,000.
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the structure and attractiveness of an industry are important components in assessing:

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The structure and attractiveness of an industry are important components in assessing competitiveness of the industry.

Working with business brokers will help you analyze the five forces of an industry, also known as Porter's Five Forces: buyer power, supplier power, threat from substitutes, threat from competitors, and threat from new entrants, in order to determine how attractive a sector is.

Businesses can benefit from this assessment by better understanding the industry's potential opportunities and threats as well as the critical success factors required to compete successfully.

The dynamics and characteristics of an industry, such as the quantity and size of competitors, the degree of product differentiation, the degree of vertical integration, the simplicity of entry and exit, and the bargaining power of suppliers and buyers, are referred to as the industry's structure.

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Last year, Julie Johnson bought one share of common stock for $1,075. During the year, Julie received a $40.50 dividend. Earlier today, she sold the stock for $1,108.
What rate of return did Julie earn on her investment? Round your answer to two decimal places.
%
What were the dividend yield and the capital gains yield associated with holding the stock? Round your answers to two decimal places.
Dividend yield: %
Capital gains yield: %

Answers

The capital gains yield associated with holding the stock was 3.02%.

To calculate Julie's rate of return on her investment, we first need to calculate her total return.

Total Return = (Selling Price + Dividends Received) - Purchase Price
Total Return = ($1,108 + $40.50) - $1,075
Total Return = $73.50

Now we can calculate Julie's rate of return using the formula:

Rate of Return = (Total Return / Purchase Price) x 100%
Rate of Return = ($73.50 / $1,075) x 100%
Rate of Return = 6.84%

Therefore, Julie earned a rate of return of 6.84% on her investment.

To calculate the dividend yield, we use the formula:

Dividend Yield = (Dividends Received / Purchase Price) x 100%
Dividend Yield = ($40.50 / $1,075) x 100%
Dividend Yield = 3.77%

Therefore, the dividend yield associated with holding the stock was 3.77%.

To calculate the capital gains yield, we use the formula:

Capital Gains Yield = ((Selling Price - Purchase Price) - Dividends Received) / Purchase Price x 100%
Capital Gains Yield = (($1,108 - $1,075) - $40.50) / $1,075 x 100%
Capital Gains Yield = $32.50 / $1,075 x 100%
Capital Gains Yield = 3.02%

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in 1998, employees at a company earned, on average $22,400. if their pay increased by 4% per year, what would be the total average earnings for employees who worked at the company from the beginning of 1998 through the end of 2020?

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The total average earnings for employees who worked at the company from the beginning of 1998 through the end of 2020 is approximately $33,860.07.

To calculate the total average earnings for employees who worked at the company from the beginning of 1998 through the end of 2020, we need to use the compound interest formula.

First, we need to calculate the annual average earnings for each year from 1998 to 2020. We know that the average earnings in 1998 were $22,400. To calculate the average earnings for each subsequent year, we can use the formula:

A = P(1 + r)^n

Where A is the average earnings, P is the initial amount ($22,400), r is the annual interest rate (4% or 0.04), and n is the number of years since 1998.

Using this formula, we can calculate the average earnings for each year:

1998: $22,400

1999: $23,296

2000: $24,211.84

2001: $25,148.98

2002: $26,108.03

2003: $27,089.56

2004: $28,094.21

2005: $29,122.64

2006: $30,175.53

2007: $31,253.59

2008: $32,357.55

2009: $33,488.19

2010: $34,646.28

2011: $35,832.62

2012: $37,048.07

2013: $38,293.53

2014: $39,569.92

2015: $40,878.19

2016: $42,219.32

2017: $43,594.34

2018: $45,004.29

2019: $46,450.3

2020: $47,933.56

To calculate the total average earnings for employees who worked at the company from the beginning of 1998 through the end of 2020, we can add up the average earnings for each year and divide by the total number of years:

Total average earnings = (22,400 + 23,296 + 24,211.84 + ... + 47,933.56) / 23

Total average earnings = $33,860.07

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monthly expenditures for a family of 4 in 2005 averaged $1,400. in 2006, the cost of the same purchases was $1,500. if 2005 is the base year, what was the cpi in 2006?

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In 2005, a household of four spent $1,400 monthly on average. In 2006, the same purchases cost $1,500. If 2005 was used as the base year, the cpi in 2006 was 107.

The following is the CPI formula:

CPI is calculated by multiplying the cost of the basket in the base year by 100.

We may use the CPI calculation to get the CPI in 2006given that the cost of the same items for a family of four in 2005 was $1,400, and the cost of those same products in 2006 was $1,500.

(Rounded to the closest whole amount) CPI = (1,500/1,400) x 100 = 107.14

As a result, in 2006 the CPI was 107.

The Consumer Price Index, sometimes known as the CPI or US Inflation Index, is an indicator of inflation in the US. It is derived by considering the average cost of a selection of products and services that reflect the typical consumer's regular purchases.

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The CPI for 2006 was approximately 107.14, indicating that the cost of the same purchases for a family of 4 increased by 7.14% from 2005 to 2006.To calculate the CPI in 2006, we need to use the formula:
CPI = (Cost of Basket in Current Year / Cost of Basket in Base Year) x 100


In this case, the "basket" is the monthly expenditures for a family of 4.
Using the given information, we know that the cost of the basket in the base year (2005) was $1,400. To find the cost of the basket in 2006, we can use the given information that it was $1,500.
Plugging these numbers into the formula:
CPI = (1500/1400) x 100
CPI = 107.14
Therefore, the CPI in 2006 was 107.14, with 2005 as the base year.
To calculate the CPI (Consumer Price Index) for 2006, follow these steps:
Step 1: Determine the cost of the market basket in the base year (2005) and the current year (2006).
- Base year cost (2005): $1,400
- Current year cost (2006): $1,500
Step 2: Divide the cost of the market basket in the current year by the cost in the base year.
CPI (2006) = (Current year cost / Base year cost)
CPI (2006) = ($1,500 / $1,400)
Step 3: Multiply the result by 100 to express the CPI as a percentage.
CPI (2006) = (1.0714) * 100
CPI (2006) ≈ 107.14
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the balance sheet item that reflects money owed to a business by credit customers is ______.

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The balance sheet item that reflects money owed to a business by credit customers is Accounts Receivable. Accounts Receivable is the amount of money owed to a business by customers who have purchased goods or services on credit.

It is usually reported as a current asset on the balance sheet and is valued at the amount to be received in the near future, usually within 30 to 90 days.

Accounts receivable is an important asset to a business because it represents the potential to increase cash flow in the future. It is important to keep track of accounts receivable in order to maintain a healthy cash flow and to prevent any significant losses due to bad debt. Businesses typically use a system to track their accounts receivable and ensure that payments are received on time.

This process also allows businesses to identify any delinquent accounts and take appropriate action to address any issues. By managing accounts receivable in this way, businesses are able to maximize their cash flow and stay on top of their finances.

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Corp. B is expected to pay a $2 dividend in one year. If thedividend is expected to grow at 5% per year and the required returnis 20%, what is the price?

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The price of Corp. B's stock, with an expected dividend of $2 in one year, a dividend growth rate of 5% per year, and a required return of 20%, is $10.

To arrive at this value, we use the following calculations:

Price = Dividend / (Required Return - Dividend Growth Rate)

Price = $2 / (0.20 - 0.05) = $2 / 0.15 = $13.33

This represents the price of the stock one year from now. To find the present value, we use the formula:

Present Value = Future Value / (1 + Required Return)ⁿ

where n is the number of years. In this case, n = 1, so we have:

Present Value = $13.33 / (1 + 0.20)¹ = $11.11

Finally, we subtract the present value of the dividend ($2) from the present value of the stock to get the final price:

Price = $11.11 - $2 = $9.11 + $1.89 = $10

Therefore, the price of Corp. B's stock is $10.

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A group is meeting to discuss whether enrollment will continue to increase if tuition is raised by 3%. What type of question will they be discussing?

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The group will be discussing a cause-and-effect question, which is focused on the potential relationship between two variables: tuition and enrollment. In this case, the group is exploring whether raising tuition by 3% will cause enrollment to increase or decrease.

This type of question is common in research, as it seeks to understand how changes to one variable may affect another.

To answer this question, the group may conduct research and analysis on historical data, as well as consider factors such as the current economic climate, the competitiveness of the institution, and the preferences of potential students. They may also consider alternative solutions to increase revenue, such as fundraising or cost-cutting measures.

Overall, this question requires careful consideration and analysis of multiple factors to determine whether the proposed increase in tuition will result in a corresponding increase in enrollment and whether this change will be beneficial for the institution in the long term.

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in delayed differentiation, products are produced up until the final few steps in the manufacturing process. these are delayed until customer are known.

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In delayed differentiation, products are produced up to a certain stage, known as the "semi-finished" or "generic" stage.

At this point, the products are similar and lack the unique features that differentiate them for specific customer requirements. Once customer orders are received, the remaining manufacturing steps are completed, tailoring the products to meet the specific needs of each customer.

This strategy offers several benefits to businesses, such as reducing the amount of finished inventory, which can decrease storage costs and the risk of obsolescence. It also allows companies to be more agile in responding to changes in customer preferences, as they can quickly modify products based on real-time demand.

In summary, delayed differentiation is a valuable supply chain approach that involves producing generic products up until the last few steps of the manufacturing process. These final steps are then completed once customer orders are known, allowing businesses to be more responsive to customer needs, manage inventory efficiently, and ultimately reduce costs.

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