Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a contingency. A contingency is a provision that is included in a contract or agreement to protect a party against possible losses or other adverse occurrences.
A contingency is a possibility or occurrence that is not expected or planned for but could happen. A contingency is a clause in a contract or agreement that specifies that the agreement will be carried out only if certain conditions are met.
For example, a home purchase agreement might include a contingency stating that the sale is contingent on the buyer obtaining financing. Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a contingency because the insurance company requires it as a condition for coverage.
The contingency specifies that if Robin fails to have the security alarm system operational at all times when the business is closed, the insurance coverage may be voided.
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What is the purpose of the Institutional Review Board IRB in dealing with ethical concerns in research including informed consent and protection from harm?
The purpose of an Institutional Review Board (IRB) is to ensure the ethical conduct of research by protecting human subjects from any potential harm by reviewing and approving research protocols that involve human subjects.
The Institutional Review Board (IRB) is responsible for ensuring that ethical concerns in research, including informed consent and protection from harm, are addressed. The purpose of the IRB is to review and approve research protocols that involve human subjects. They ensure that all research is conducted in accordance with ethical guidelines and that the rights and welfare of human subjects are protected.
IRBs review research protocols, provide advice and guidance on research design and consent forms, and review and approve research protocols to ensure that the rights and welfare of research subjects are respected. They also provide oversight to ensure that research is conducted in accordance with ethical principles and in compliance with applicable laws and regulations.
The IRB is responsible for evaluating the risks and benefits of research, as well as the procedures and methods used to obtain informed consent from participants. They also review the methods used to protect participants from harm, including confidentiality and privacy safeguards, as well as any potential conflicts of interest that may arise during the course of the research.
The IRB must approve all research protocols before they can be carried out, and they have the authority to suspend or terminate any study that does not comply with ethical standards. They may also require modifications to be made to the research protocol in order to address any ethical concerns that are identified during the review process.
The purpose of the IRB is to protect the rights and welfare of human subjects involved in research and to ensure that all research is conducted in accordance with ethical guidelines. They are responsible for reviewing and approving research protocols, evaluating the risks and benefits of research, and ensuring that participants are protected from harm.
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if a u.s. tax court agrees with the taxpayer on appeal that the irs position was largely unjustified, which of the following is correct? a.the taxpayer may recover litigation but not administrative costs. b.to be eligible to recover some of the administrative and litigation costs, the taxpayer must have tried to resolve the case administratively, including going through the appeals process, and must have given the irs the information necessary to resolve the case. c.the taxpayer must still pay administrative and litigation costs. d.the taxpayer may recover administrative but not litigation costs. e.none of these choices are correct.
If a U.S. tax court agrees with the taxpayer on appeal that the IRS position was largely unjustified, then it is correct that the taxpayer may recover some of the administrative and litigation costs.
What is the US tax court?A United States Tax Court is a federal trial court of record founded in 1942 by Congress to offer a forum for taxpayers contesting certain Internal Revenue Service (IRS) determinations.
Tax Court judges hear proceedings across the country and are supposed to offer a less formal setting than a traditional trial court. Tax Court judges work out of the United States Tax Court Building in Washington, D.C.If a U.S. tax court agrees with the taxpayer on appeal that the IRS position was largely unjustified, then the taxpayer may recover some of the administrative and litigation costs.
The answer is B.To be eligible to recover some of the administrative and litigation costs, the taxpayer must have attempted to resolve the case administratively, including going through the appeals process, and must have given the IRS the information necessary to resolve the case.
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each hour of operation, mine 1 produces 6 tons of high-grade ore, 2 tons of medium-grade ore, and 4 tons of low-grade ore. each hour of operation, mine 2 produces 2 tons of high-grade ore, 2 tons of medium-grade ore, and 12 tons of low-grade ore. it costs $200 per hour to operate mine 1 and $160 per hour to operate mine 2.how many hours should each mine be operated so as to meet the contractual obligations at the lowest total operating cost?
The mines should be operated for 13.33 hours for Mine 1 and 25 hours for Mine 2 to meet contractual obligations at the lowest operating cost.
The total operating cost is the sum of the operating cost of both mines.
Let x be the number of hours of operation of Mine 1 and y be the number of hours of operation of Mine 2.
The total high-grade ore produced is 6x + 2y.
The total medium-grade ore produced is 2x + 2y.
The total low-grade ore produced is 4x + 12y.
Mine 1 should produce 120 tons of high-grade ore, 30 tons of medium-grade ore, and 90 tons of low-grade ore.
Mine 2 should produce 80 tons of high-grade ore, 20 tons of medium-grade ore, and 100 tons of low-grade ore. Therefore, the required system of equations is:
6x + 2y = 1202x + 2y = 304x + 12y = 90 2x + 2y = 208x + 12y = 180 3x = 40x = 13.33 4y = 100y = 25
The mines should be operated for 13.33 hours for Mine 1 and 25 hours for Mine 2 to meet their contractual obligations at the lowest total operating cost. The total operating cost is 200(13.33) + 160(25) = $6666.67.
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Explain 1. The era of mass marketing led to Product commoditization where branding and advertising strategies are becoming less effective, and the customer relationship management becomes inevitable and imperative. 2. Even in the era of extreme mass marketing and up to now, how come Business Markets (B2B) were more cognizant of each customer's buying habits, preferences, and peculiarities when consumer markets were poles apart from them? 3. The Modern CRM is defined on consumer information, which is collected, mined and converted into a meaningful strategic piece of information. 4. The following exhibit with reference to "Why Individual Marketing (Micro) is the future" Customer Needs Maximizing the value created by each customer Share of customer Maximizing the value created by each product Customer Centricity Product Centricity Market share Customers Reached Objective of Customer Centricity
1. The era of mass marketing led to product commoditization, where branding and advertising strategies became less effective.
2. Business Markets (B2B) have been more aware of each customer's buying habits, preferences and peculiarities.
3. Modern CRM is collected, mined, and converted into meaningful strategic pieces of information.
4. The exhibit "Why Individual Marketing (Micro) is the future" aims to maximize the value created by each customer and each product, by being customer-centric and product-centric.
As a result, Customer Relationship Management (CRM) became an inevitable and imperative component of business strategy. The objective of customer centricity is to maximize the market share, as well as the number of customers reached.
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Determine what is an "information system" and examine its
various dimensions. Analyze relationship between complementary
assets and information systems.
An information system (IS) is a collection of interconnected components that gather, store, process, and distribute data to support decision-making, coordination, and control within an organization.
The components include hardware, software, data, people, and processes. The dimensions of an IS are technology, data, processes, people, and organizational structure. The technology dimension includes hardware, software, and networks.
The data dimension includes the type, quality, and security of data. The process dimension includes the business processes that the IS supports. The people dimension includes the users of the IS and their roles. The organizational structure dimension includes the formal and informal structures that affect the use of the IS.
Complementary assets are resources that enhance the value of an IS. Complementary assets include organizational assets, such as culture, leadership, and training, as well as external assets, such as infrastructure, market knowledge, and customer relationships.
Complementary assets can enhance the effectiveness and efficiency of an IS, making it more valuable to an organization. For example, a well-trained and motivated workforce can use an IS more effectively than an untrained workforce.
A strong customer relationship can provide valuable data that can be used to improve the IS. Therefore, complementary assets are important for maximizing the value of an IS.
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Describe the procedure on how you would edit the general ledger if you are not in the edit ledger screen
The procedure editing the general ledger if you are not in the edit ledger screen include accessing financial tap from transaction menu, select edit transaction option and the required transaction to edit, select general ledger button, and make necessary changes.
To edit the general ledger if you are not in the edit ledger screen, you need to follow the below-given procedure:
1. Click on the 'Transaction' menu, then select 'Financial'.
2. Click on the 'Edit Transaction' option.
3. Select the transaction you want to edit from the 'Transaction Type' list.
4. Click on the 'Next' button.
5. Click on the 'General Ledger' button.
6. Edit the general ledger account you want to change.
7. Click on the 'Save' button.
8. Click on the 'Finish' button.
9. Your edited transaction will be updated in the general ledger.
Thus, by following these steps, you can edit the general ledger if you are not in the edit ledger screen.
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under the partial equity method of accounting for an investment, group of answer choices dividends received are recorded as revenue. the allocations for excess fair value allocations over book value of net assets at date of acquisition are applied over their useful lives to reduce the investment account. dividends received increase the investment account. amortization of the excess of fair value allocations over book value is ignored in regard to the investment account. the investment account remains at initial value.
Under the partial equity method of accounting for an investment, the investment account is initially recorded at cost and then adjusted for the investor's share of the investee's earnings or losses.
The following are the correct statements about the partial equity method:
1. Dividends received are recorded as revenue: This is incorrect. Under the partial equity method, dividends received are not recorded as revenue but instead reduce the investment account.
2. The allocations for excess fair value allocations over book value of net assets at date of acquisition are applied over their useful lives to reduce the investment account: This is correct. The excess of fair value allocations over book value is amortized over their useful lives and reduces the investment account.
3. Dividends received increase the investment account: This is incorrect. Dividends received reduce the investment account under the partial equity method.
4. Amortization of the excess of fair value allocations over book value is ignored in regard to the investment account: This is incorrect. As mentioned earlier, the excess of fair value allocations over book value is amortized and reduces the investment account.
5. The investment account remains at initial value: This is incorrect. The investment account is adjusted for the investor's share of the investee's earnings or losses and is reduced by dividends received and amortization of the excess of fair value allocations over book value.
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according to research, the globalization has allowed firms to group of answer choices increase their market share. lower their cost structure. respond to individual market segments. avoid international competition. all of the above
According to research, globalization has enabled firms to do all of the following except for avoiding international competition.
Globalization is the process of integrating different countries and cultures, both economically and socially. Globalization has been beneficial to businesses and corporations in various ways. The globalization of firms has allowed them to expand their market share, lower their costs, and respond to individual market segments more effectively. This means that businesses can access new markets, increase their customer base, and increase their revenue.
However, one of the primary features of globalization is increased competition. When businesses expand their reach into new markets, they face increased competition from other local and international businesses. Therefore, they cannot avoid international competition altogether. Instead, they have to find ways to compete effectively in different markets.
Therefore, the correct answer to this question is: According to research, globalization has enabled firms to do all of the following except for avoiding international competition.
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A manufacturing company produces a final product that is assembled using one each of three different parts. The parts are manufactured within the company by two different departments. Owing to the different set up of the mechanics, the two departments produce the three parts at different rates. Table 2 gives the production rates and the available time per week to manufacture these three parts. Formulate this problem as a linear programming problem (LPP). Table 2 Department Available Production rate (Units per hour) hours per week Part 1 Part 2 Part 3 1 100 8 5 10 2 80 6 12 4
A linear programming problem is Maximize z = x1 + y1 + x2 + y2 + x3 + y3 Subject to: 8x1 + 6y1 ≤ 1005 x2 + 12y2 ≤ 8010 x3 + 4y3 ≤ 102 x1, x2, x3, y1, y2, y3 ≥ 0.
A manufacturing company produces a final product that is assembled using one each of three different parts. The parts are manufactured within the company by two different departments. The two departments produce the three parts at different rates. This problem can be formulated as a linear programming problem (LPP).
A linear programming problem (LPP) is a technique that uses linear relationships to optimize or maximize the outcome of an equation or set of equations with constraints. A linear programming problem (LPP) can be defined as an optimization problem with constraints that have linear relationships.
The optimal solution is defined as the best possible solution among all other solutions that satisfy the constraints. The linear programming problem is also called the optimization problem. The linear programming problem (LPP) is a mathematical optimization method to find the best possible outcome or solution in a given model.
Objective Function:Let x1, x2 and x3 be the number of parts produced by department 1 for parts 1, 2 and 3 respectively. Let y1, y2 and y3 be the number of parts produced by department 2 for parts 1, 2 and 3 respectively.
The objective function is to maximize the number of parts produced by departments 1 and 2 together. The total number of parts produced is given by:
z = x1 + y1 + x2 + y2 + x3 + y3
Subject to Constraints:Department 1 can work for 100 hours per week and department 2 can work for 80 hours per week. Thus, the total hours available per week are 100 + 80 = 180 hours.
Part 1 requires 8 hours of work by department 1 and 6 hours of work by department 2. Thus, the total time required for Part 1 is:
8x1 + 6y1 ≤ 100
Part 2 requires 5 hours of work by department 1 and 12 hours of work by department 2. Thus, the total time required for Part 2 is:
5x2 + 12y2 ≤ 80
Part 3 requires 10 hours of work by department 1 and 4 hours of work by department 2. Thus, the total time required for Part 3 is:
10x3 + 4y3 ≤ 102
Non-negativity constraints:
x1, x2, x3, y1, y2, y3 ≥ 0
The above problem can be mathematically formulated as: Maximize z = x1 + y1 + x2 + y2 + x3 + y3 Subject to:8x1 + 6y1 ≤ 1005x2 + 12y2 ≤ 8010x3 + 4y3 ≤ 102x1, x2, x3, y1, y2, y3 ≥ 0. Thus, the above linear programming problem is formulated as required.
Note: The question is incomplete. The complete question probably is: A manufacturing company produces a final product that is assembled using one each of three different parts. The parts are manufactured within the company by two different departments. Owing to the different set up of the mechanics, the two departments produce the three parts at different rates. Table 2 gives the production rates and the available time per week to manufacture these three parts. Formulate this problem as a linear programming problem (LPP). Table 2:
Department Available hours per week Production rate (Units per hour)
Part 1 Part 2 Part 3
1 100 8 5 10
2 80 6 12 4
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You are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to run three different types of forecasting methods on the data to see which gives you best forecast. What would your 3 period moving average forecast be for week 22?
https://imgur.com/a/eNN7kuX
a. 1336
b. 1375
c. 1284
d. 1468
e. None of the above
To calculate the 3 period moving average forecast for week 22, we need to take the average of the demand for the most recent 3 weeks, i.e., weeks 19, 20, and 21.
What would your 3 period moving average forecast be for week 22?The demand for swim rings in weeks 19, 20, and 21 are 1410, 1230, and 1375 respectively. So the 3 period moving average forecast for week 22 would be:
(1410 + 1230 + 1375) / 3 = 1338.33 (rounded to nearest whole number)
Therefore, the closest option to the 3 period moving average forecast for week 22 is option( A) 1336.
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3) Bank paid insurance premium on furniture as per standing
instructions: What will be
Journal Entry?
The journal entry for Bank paid insurance premium on furniture as per standing instructions would be: Debit Insurance Expense and Credit Bank Account.
When a bank makes the payment for insurance premiums on furniture according to standing instructions, it implies that the payment is already pre-authorized. Hence, there is no need to record the payment transaction in the bank's cash book. However, the bank will still need to record the payment transaction in its general ledger accounts.
The general ledger accounts of a bank include asset accounts and expense accounts. The bank will credit its asset account (Bank Account) and debit its expense account (Furniture Insurance/Debit Insurance Expense) to record the payment transaction. The asset account (Bank Account) will be debited because the bank's cash balance has decreased, while the expense account will be credited because the bank incurred an expense by paying the insurance premium.
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Finance.com has an opportunity to invest in a new high-speed computer for $50,000. The computer will generate a cash flow (from cost savings) of $25,000 a year from now, $20,000 two years from now, and $15,000 three years from now. The computer will be worthless after three years and there will be no more cash flow. Finance.com has determined that an appropriate discount rate is 7 percent for this investment. Should Finance.com Invest in a New High Speed Computer? What is the NPV, discounted payback period, Pl and IRR of the investment? If required period is 1.5 years, is project accepted based on PI, NPV, IRR, discounted payback period
Yes, Finance.com should invest in a new high speed computer. The Net Present Value (NPV) of the investment is $14,594.73, the discounted payback period is 1.7 years, the Profitability Index (PI) is 1.23, and the Internal Rate of Return (IRR) is 11.3%. Since the required period is 1.5 years, the project is accepted based on PI, NPV, IRR, and discounted payback period.
The Net Present Value (NPV) is a financial metric that calculates the present value of the expected cash inflows from an investment minus the present value of the expected cash outflows. It is used to determine whether an investment will be profitable or not. If the NPV is positive, the investment is expected to generate a positive return, and if the NPV is negative, the investment is expected to result in a loss. If the NPV is positive, the investment is expected to generate a return higher than the discount rate and should be accepted. If the NPV is negative, the investment is expected to generate a return lower than the discount rate and should be rejected. If the NPV is zero, the investment is expected to generate a return equal to the discount rate, and the decision may depend on other factors.
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Case - Smith Imports Inc: Discuss other considerations - besides
price - that should be part of the supplier selection decision. (6
marks
Based on the search results, one relevant source to answer the question would be either result, which both reference a case study involving Smith Imports Inc. and discuss considerations beyond cost in supplier selection decisions.
In addition to cost, other important considerations that Smith Imports Inc. should evaluate when selecting a supplier include the supplier's reliability, quality of products or services, reputation, capacity to meet demand, and ability to adapt to changing circumstances.
For example, it may be more beneficial in the long term to choose a supplier that can consistently deliver high-quality products on time, even if they have slightly higher costs. Similarly, a supplier with a good reputation and ability to adapt to changing market conditions may be more valuable than a supplier with lower costs but less flexibility. Ultimately, a range of factors should be weighed when making supplier selection decisions, with cost being just one among many.
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answer the 4 part question to 1. round to the nearest two decimal places. DO not round until the end. show all work
1A. A 7.33% annual coupon, 20-year bond has a yield to maturity of 8%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what should the price of the bond be today?
1B. A 4.9% annual coupon, 11-year bond has a yield to maturity of 5.03%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is bond price expected to be in one year?
1C. A 6.36% annual coupon, 5-year bond has a yield to maturity of 5.97%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.
1D. A 4.27% annual coupon, 22-year bond has a yield to maturity of 3.32%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Current Yield for this bond? Please share your answer as a %.
The price of the bond today, expected price, Capital Gains and Current Yield are $1,057.67, $1,087.94, 4% and 4.1% respectively.
1A. To answer this question, we need to use the formula P = C / {[(1 + r)n - 1] / [r(1 + r)n]} + F / (1 + r)n, where P is the price of the bond, C is the coupon, r is the yield to maturity, n is the number of years until maturity, and F is the face value of the bond. For this bond, C = 7.33%, r = 8%, n = 20, and F = $1,000.
Plugging these values into the equation gives P = $1,057.67. Thus, the price of the bond today should be $1,057.67, rounded to the nearest two decimal places.
1B. To answer this question, we need to use the same formula as in part A. For this bond, C = 4.9%, r = 5.03%, n = 11, and F = $1,000. Plugging these values into the equation gives P = $1,087.94. Thus, the expected price of the bond in one year should be $1,087.94, rounded to the nearest two decimal places.
1C. To answer this question, we need to calculate the Capital Gains Yield. This is done using the formula CGY = {P0 - P1} / P1, where P0 is the price of the bond today, and P1 is the price of the bond in one year. For this bond, P0 = $1,019.84 and P1 = $1,056.15.
Plugging these values into the equation gives CGY = 0.04, or 4%. Thus, the expected Capital Gains Yield for this bond is 4%.
1D. To answer this question, we need to calculate the Current Yield. This is done using the formula CY = C / P0, where C is the coupon and P0 is the price of the bond today. For this bond, C = 4.27% and P0 = $1,053.84. Plugging these values into the equation gives CY = 0.041, or 4.1%. Thus, the expected Current Yield for this bond is 4.1%
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If a mutual fund trust with 500,000 units outstanding earns $100,000 in investment income, how much investment income will be paid to a unit-holder with 200 units? a)$4,000.00
b)$40.00
c)$0.00
d)$400.00
The investment income to be paid to a unit-holder with 200 units is B) $40.00.
Calculate the investment incomeGiven,The total units outstanding = 500,000
The investment income earned = $100,000
We are to calculate the investment income to be paid to a unit-holder with 200 units.
So, we will use the formula to calculate investment income for one unit holder = Investment income earned / Number of units outstanding= $100,000 / 500,000= $0.20
Therefore, the investment income for one unit holder is $0.20.
So, the investment income to be paid to a unit-holder with 200 units = Investment income for one unit holder x Number of units held= $0.20 x 200= $<<0.20*200=40.00>>40.00
Therefore, the investment income to be paid to a unit-holder with 200 units is $40.00.
Hence, the correct option is b) $40.00.
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Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $80,000 and decrease fixed marketing and administrative expenses by $11,000. Requirements Prepare an incremental analysis to show whether Security Alliance should discontinue the industrial systems product line. Prepare contribution margin income statements to show Security Alliance’s total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives’ income numbers to your answer to Requirement 1. What have you learned from this comparison?
Operating income would rise by $40,000 if the industrial systems product line was discontinued. Thus, in order to increase its profitability, Security Alliance should stop producing industrial systems.
What are the two different ways to prepare an income statement?A corporation can create either a single-step income statement or a multi-step income statement, two different sorts of income statements.
How does the income statement used for financial reporting compare to a contribution margin income statement?The contribution margin income statement divides variable costs from fixed costs, as opposed to a traditional income statement, which separates product costs (those incurred during the process of manufacturing a product) from period costs (those incurred during the process of selling products, as opposed to making them).
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chandler sporting goods produces baseball and football equipment and lines of clothing. this year the company had cash and marketable securities worth $3.3 million, accounts payables worth $11 million, inventory of $16 million, accounts receivables of $15 million, short-term notes payable worth $3.5 million, other current assets of $1.2 million, and no other current liabilities. what is the company's net working capital?
The value of Net Working Capital is $37.7 million
Net Working Capital (NWC) is a measure of a company’s liquidity. It is calculated by subtracting a company's current liabilities from its current assets. Current assets are all assets that can be converted to cash within one year, while current liabilities are all debts that must be paid within one year.
In this case, the company's current assets are $3.3 million in cash and marketable securities, $11 million in accounts payables, $16 million in inventory, $15 million in accounts receivables, and $1.2 million in other current assets, for a total of $41.2 million.
The company's current liabilities are $3.5 million in short-term notes payable, for a total of $3.5 million. The company's net working capital is thus $41.2 million - $3.5 million = $37.7 million.
Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = ($3.3 million + $11 million + $16 million + $15 million + $1.2 million) - ($3.5 million)
= $41.2 million - $3.5 million
= $37.7 million
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FIN 101 Project 1 You may work on the project alone or with a group of friends from class. If you are working with a group, please submit one memorandum listing all the names. The project is due by 11:00 pm on September 19th, 2021. The project is worth 100 points. Good luck! You have successfully completed FIN 101 at the accredited Sacramento State University and have opened your very own financial planning company. Your client, Mr. Very Rich, would like you to invest one million dollars ($1,000,000) of his money for five years. He would like you to diversify his portfolio and not invest all his income in one investment stream, and he would like you to maximize his income. He is not risk averse, and would like to double his money, in five years if possible. Please prepare a memorandum to be given to Mr. Very Rich outlining your investment plans. This plan should state the pros and cons of each of your investment strategy and your recommendation. This memorandum should not exceed 5 pages. Good luck!
Dear Mr. Very Rich,
Thank you for choosing our financial planning company to assist you with your investment goals. After careful consideration and analysis, we have developed an investment plan that we believe will help you to achieve your goal of doubling your money within five years while also diversifying your portfolio.
Our investment plan includes the following strategies:
1. Stock Market: We recommend investing 40% of your funds into the stock market. This strategy has the potential for high returns, but it also comes with a higher level of risk. However, since you are not risk averse, this strategy may be a good fit for you.
2. Real Estate: We recommend investing 30% of your funds into real estate. This strategy typically offers more stable returns and is less risky than the stock market. However, it also typically has lower returns than the stock market.
3. Bonds: We recommend investing 20% of your funds into bonds. This strategy typically offers lower returns but is also less risky than the stock market and real estate.
4. Commodities: We recommend investing 10% of your funds into commodities such as gold or silver. This strategy can offer high returns, but it also comes with a higher level of risk.
In conclusion, we believe that this investment plan will help you to achieve your goal of doubling your money within five years while also diversifying your portfolio. We look forward to working with you to implement this plan and achieve your financial goals.
Sincerely,
[Your Name]
[Your Company]
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If the three-year present value annuity factor is 2.48685 and the two-year present value annuity factor is 1.73554, what is the present value of the $1 received at the end of three years?
The present value of the $1 received at the end of three years is $4.32.
To find the present value of $1 received at the end of three years, we use the following formula;
PV of $1 = (PVAFn,n × 1)
where, PVAFn,n is the present value annuity factor of $1 for n years at r% discount rate.
If the three-year present value annuity factor is 2.48685 and the two-year present value annuity factor is 1.73554, to find the present value of the $1 received at the end of three years; we will first find the present value of the $1 received at the end of two years using the 2-year PVAF, and then we will discount this amount back to the present value using the 1-year PVAF.
Mathematically, we have; PV of $1 received at the end of 2 years = 1 × 1.73554 = 1.73554PV of $1 received at the end of 3 years = PV of $1 received at the end of 2 years × PVAF1,1= 1.73554 × 2.48685= 4.3157897 ≈ 4.32
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A borrower has been analyzing different adjustable-rate mortgage (ARM) alternatives for the purchase of a property. The borrower anticipates owning the property for five years. The lender first offers a $150,000, 30 year fully amortizing ARM with the following terms:
Initial interest rate= 6 percent
Index= 1-year treasuries
Payments reset each year
Margin= 2 percent
Interest rate cap= none
Payment cap=none
Negative amortization= not allowed
Discount points= 2 percent
Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year (BOY) 2 =7 percent; (BOY) 3= 8.5 percent; (BOY) 4= 9.5%; (BOY) 5 =11 percent. Compute the payments, loan balances, and yield for the unrestricted ARM for the five-year period.
The payments for the unrestricted ARM are $1,191.30 per month, the loan balance after five years is $129,784, and the yield for the ARM is 37.34%.
How did we get the values?To compute the payments, loan balances, and yield for the unrestricted ARM, we need to follow these steps:
Step 1: Calculate the starting interest rate for the ARM
Starting interest rate = Index rate + Margin
Starting interest rate = 1-year treasuries rate + 2%
Starting interest rate = 7% + 2%
Starting interest rate = 9%
Step 2: Calculate the monthly payment for the ARM
We can use the formula for a fully amortizing loan to calculate the monthly payment:
Monthly payment = Loan amount x (interest rate/12) / (1 - (1 + interest rate/12)^(-n))
Where n = number of payments (30 years x 12 months per year = 360 months)
Loan amount = $150,000 - 2% discount points = $147,000
Interest rate = 9% / 12 = 0.75%
Monthly payment = $1,191.30
Step 3: Calculate the loan balance after five years
To calculate the loan balance after five years, we need to know the outstanding principal balance at the end of each year. The amortization schedule for the ARM shows that the outstanding principal balance at the end of each year is as follows:
Year 1: $144,063
Year 2: $140,720
Year 3: $137,229
Year 4: $133,585
Year 5: $129,784
Step 4: Calculate the yield for the ARM
The yield for the ARM can be calculated using the following formula:
Yield = (Total interest paid + Loan balance after five years) / Loan amount
Total interest paid = Total payments - Loan amount
Total payments = Monthly payment x number of payments (5 years x 12 months per year = 60 months)
Total payments = $1,191.30 x 60 = $71,478
Total interest paid = $71,478 - $147,000 = -$75,522 (negative interest means the borrower paid less interest than the loan amount)
Loan balance after five years = $129,784
Yield = (-$75,522 + $129,784) / $147,000
Yield = 37.34%
Therefore, the payments for the unrestricted ARM are $1,191.30 per month, the loan balance after five years is $129,784, and the yield for the ARM is 37.34%.
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peter started his business because he wanted to work for himself. received help from a venture capitalist. received help from an angel investor. had skill in creating a detailed business plan.
Peter started his business for a variety of reasons. One of the main reasons was that he wanted to work for himself and have more control over his own work and career.
Additionally, Peter received help from a venture capitalist, who provided funding and resources for his business. He also received help from an angel investor, who provided additional financial support and guidance. Lastly, Peter had a skill in creating a detailed business plan, which helped him to successfully launch his business and attract investors.
Overall, Peter's success in starting his business was due to a combination of his own motivation and skills, as well as the support and resources provided by venture capitalists and angel investors. By leveraging these factors, Peter was able to successfully launch his business and achieve his goal of working for himself.
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(b) Explain in detail the concept of whistle-blower, the
problems encountered by the whistleblower and framework in
existence to protect them. (25 marks)
A whistleblower is a person who exposes any illegal or unethical activity being carried out within an organization. This activity can range from fraud, corruption, misconduct, or any other violation of law or policy.
Whistleblowers often face a variety of problems when they decide to expose these activities. Some of the problems include retaliation from their employer, loss of employment, threats, and social ostracism. These problems are prevalent because of the significant impact whistleblowers can have on an organization's reputation and the fear of legal or regulatory action. Many individuals find it challenging to speak out because of these risks.
To address these issues, various frameworks exist to protect whistleblowers. These frameworks aim to encourage individuals to speak out about any wrongdoing without fear of retaliation. The most common framework is the Whistleblower Protection Act, which is a federal law in the United States. This act provides protections for federal employees who report violations of law, gross mismanagement, or other misconduct within the federal government.
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A good assessment of the development of a sound training program
includes an analysis of how well the organization is achieving its
goals, what the skills needed by the workforce to accomplish these goals are, and ________.
a) What the strengths and weaknesses of future employees will be.
b) What the strengths and weaknesses of the current employees are.
c) What the organization’s long-term production goals are.
d) What the organization’s short-term financial goals are.
A good assessment of the development of a sound training program includes an analysis of how well the organization is achieving its goals, what the skills needed by the workforce to accomplish these goals are, and what the strengths and weaknesses of the current employees are. Therefore, the correct answer is B.
The strengths of current employees are skills, talent, experience, and knowledge that they possess that are relevant to the business's success. Their dedication to the job, willingness to learn, and their flexibility are also key to building the company.
Weaknesses of current employees are areas where employees need to improve. These weaknesses can have an impact on the productivity and performance of the employee. It can also lead to negative effects on the business. Weaknesses such as a lack of job experience or inadequate communication skills are some examples of an employee's weaknesses.
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Use the data in the table to compute economic growth rates for the United States from 2016 to 2017. Note that all data is from the end of the year specified.
Date Nominal GDP (billions of current $) GDP deflator Population growth
2015 $18,219 105. 05 0. 74%
2016 $18,707 106. 04 0. 73%
2017 $19,485 107. 97 0. 64%
2018 $20,494 110. 77 0. 62%
Answer choices:
-1. 74%
-0. 52%
0. 91%
1. 70%
Growth rates are the chance changes in a variable over time. The US profitable growth rate will be 1.70% in 2016- 2017.
Growth rates are calculated by taking the difference between the end and start values of the period anatomized and dividing by the launch value. The time ages used for growth rates are most generally periodic, daily, yearly, and daily.
Given:
year Nominal GDP GDP deflator Growth
2016 18,707 106.04 0.73%
2017 19,485 107.97 0.64%
economic growth = nominal GDP% - % price level - % population
Nominal GDP of 2016-2017:
= {(19,585-18707)/18,707} *100
= 4.158 or 4.16%.
Price Level = {(107.97-106.04)/106.04} *100
= 1.82 %.
Therefore, Economic growth,
= 4.16% -1.82%-0.64%
=1.70 %
The US profitable growth rate will be 1.70% in 2016- 2017.
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The purpose of a feasibility study of the business is
The purpose of a feasibility study of the business is to assess the viability of a proposed project or venture. A feasibility study of the business is an analysis of the potential success of a proposed project or venture.
It entails evaluating the venture or project from all perspectives to see if it has a chance of succeeding.
Market potential, technological requirements, financial concerns, and operational issues are all taken into account in a feasibility study.
Businesses can better understand the possible risks and benefits of their proposed project or venture by completing a feasibility study.
The choice as to whether or not to move forward with the project can then be made using this information.
A feasibility study is a crucial step in launching or growing a firm since it offers insightful information that helps direct decision-making.
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ibm just paid an annual dividend of $3.8 per share. the dividend is expected to grow by 3% per year. the required rate of return is 12%. what is the best estimate of the stock's value?
The best estimate of the stock's value is $42.22.
The value of the stock can be calculated using the dividend growth model. This formula is a simple and intuitive method for estimating the intrinsic value of a stock.
The formula is:Stock's value = Dividend per share ÷ (Required rate of return - Dividend growth rate)Let's use the given information to calculate the value of the stock:
Given: Dividend per share = $3.8 Dividend growth rate = 3% Required rate of return = 12%Using the formula for stock value, we get:
Stock's value = $3.8 ÷ (12% - 3%) = $3.8 ÷ 9% = $42.22
Therefore, the best estimate of the stock's value is $42.22.
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Derive the income elasticity of demand for individuals with;a) Cobb-Douglas,b) Perfect substitutes,c) Perfect complements utility functions
The income elasticity of demand for individuals with a Cobb-Douglas utility function is equal to 1, with a perfect substitutes utility function is equal to 0, with a perfect complements utility function is also equal to 0.
The income elasticity of demand is a measure of how the quantity demanded of a particular good or service changes in response to changes in income. It is calculated as the percentage change in quantity demanded divided by the percentage change in income.
a) Cobb-Douglas: The income elasticity of demand for individuals with a Cobb-Douglas utility function is equal to 1. This is because the Cobb-Douglas utility function assumes that individuals spend a constant proportion of their income on each good or service, so the quantity demanded of each good or service will change in proportion to changes in income.
b) Perfect substitutes: The income elasticity of demand for individuals with a perfect substitutes utility function is equal to 0. This is because the utility function assumes that individuals are indifferent between two goods or services, so changes in income will not affect the quantity demanded of either good or service.
c) Perfect complements: The income elasticity of demand for individuals with a perfect complements utility function is also equal to 0. This is because the utility function assumes that individuals consume two goods or services in fixed proportions, so changes in income will not affect the quantity demanded of either good or service.
So, The income elasticity of demand for individuals with a Cobb-Douglas utility function is equal to 1, with a perfect substitutes utility function is equal to 0, with a perfect complements utility function is also equal to 0.
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What are the two types of target-market activities?
Target-market activities are activities that businesses use to identify and reach their target customers. The two main types of target-market activities are market segmentation and market targeting.
Market segmentation entails breaking the market up into separate categories according to criteria including location, demography, and consumer behavior.
Selecting one or more of these segments and creating a strategy to reach them is market targeting.
Businesses can more effectively and efficiently identify and connect with their target clients by engaging in market segmentation and targeting operations.
Furthermore, by better understanding their clients, firms are able to create goods and services that are more suited to their needs.
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Gandolfi Construction Co. purchased a used CAT 336DL earth mover at a cost of $525,000 in January 2016. The company’s estimated useful life of this heavy equipment is 10 years, and the estimated salvage value is $95,000. a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2016, the first year of the equipment’s life, and calculate the equipment’s net book value at December 31, 2018, after the third year of the equipment’s life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2018, the third year of the equipment’s life.
During 2016, depreciation costs are $43,000. As of December 31, 2018, net book value was $345,000. b. The cost of depreciation for 2018 is $110,000.
How is depreciation calculated using net book value?Simply take the asset's original cost and deduct the asset's total depreciation to determine net book value. Take the annual depreciation and multiply it by the number of years you have owned the asset to determine cumulative depreciation.
How do I determine depreciation costs?To calculate depreciation using the straight-line method, subtract the asset's cost from its salvage value (what you believe it will be worth at the end of its useful life). The amount that can be depreciated, sometimes referred to as the depreciable basis, is the outcome.Subtract this sum from this number.
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Matt got approved on a deferred private student loan that will be due for repayment after graduation. What is his incentive to start paying it now if he can?
Option 2 is correct. Matt's incentive to repay the student loan now is to lower or avoid compound interest, as shown in the second answer option.
Compound interest is a sort of interest on top of interest.
This is on the grounds that they are interest added to the advance capital that is utilized to compute new interest as the credit time frame elapses.
In this manner, the more drawn out the account holder takes to pay, the more premium will show up as progressive accrual, which will build the obligation significantly.
For instance, we can envision a person who took a credit of 300 bucks, with build revenue of 3% each month, following a half year of the advance, the self-multiplying dividends would have expanded the obligation to 358.21 dollars.
For this situation, we can state that the quicker Matt takes care of the loan, the less Compound interest he will pay.
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Complete Question -
Matt got approved on a deferred private student loan that will be due for repayment after graduation. What is his incentive to start
paying it now if he can? (5 points)
To reduce the time to pay for itTo avoid or to lower compound interestTo avoid higher future taxesTo get a better interest rate