Paula Boothe, president of the Pronghorn Corporation, has mandated a minimum 6% return on investment for any project undertaken by the company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 8%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 15% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $1,868,000 in a new line of energy drinks that is expected to generate $237,100 in operating income.

Calculate the residual income for the proposed new line of energy drinks.

Answers

Answer 1

Residual income is the income earned by an investment after the cost of capital has been paid. Therefore, the residual income for the proposed new line of energy drinks is -$24,420.

It can be calculated as the actual return on investment minus the minimum acceptable rate of return needed to undertake the investment. Residual income = Actual return on investment - Minimum acceptable rate of return needed to undertake the investment

Here, the minimum acceptable rate of return for the Pronghorn Corporation is 6%, while the Energy Drinks division needs to anticipate at least an 8% return on investment. The division has been generating a 15% return on investment for the past three years. Hence, the proposed investment must have an actual return on investment that is higher than 8% to be considered. The calculation for residual income is as follows:

Operating income = $237,100

Minimum acceptable rate of return = 6% × $1,868,000

= $112,080

Actual return on investment = $237,100 - $112,080

= $125,020

Residual income = $125,020 - 8% × $1,868,000

= $125,020 - $149,440

= -$24,420

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Related Questions

CK Computers has a marketing budget of $10,000 and a time frame of one week to liquidate at least 1,000 computers. In the context of LP problem, what does "one week" represent?

A. The Objective Function B. A Constraint C. An Alternative Course of Action D. A Decision Variable E. Both B and D above

Answers

In the context of the Linear Programming (LP) problem, the one week represents a constraint since it is an external constraint that the company needs to adhere to within the given time frame. Therefore, the correct answer is option B.

Linear Programming (LP) is a powerful mathematical modeling technique utilized to discover the optimal solution to the given problems, which are often used to optimize the allocation of resources. This optimization problem is usually defined as a set of linear equations that include constraints and an objective function to optimize.What are Constraints in LP?Constraints are the parameters that restrict or constrain the solution space to certain values that adhere to the project's specific requirements and limitations. In the context of the given problem, the time frame of one week is a constraint that limits the company to liquidate the minimum amount of computers within the specific period as they do not have an extended period to do so.

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If you bought 5 shares of Amazon stock on February 1st 2016
(paid $552.52 per share) and hold it till June 12, 2020 (price per
share $2545.02). Calculate your total return.

Answers

The total return from buying 5 shares of Amazon stock on February 1st, 2016, and holding it until June 12, 2020, is $11,965.25.

To calculate the total return, we need to consider both the capital gain/loss and any dividends received. In this case, we don't have information about dividends, so we'll only consider the capital gain.

The initial investment is the purchase price per share multiplied by the number of shares: $552.52 * 5 = $2,762.60. The final value of the investment is the selling price per share multiplied by the number of shares: $2,545.02 * 5 = $12,725.10.

The capital gain is the difference between the final value and the initial investment: $12,725.10 - $2,762.60 = $9,962.50. Therefore, the total return is $9,962.50, which represents a profit of $9,965.25 or a return of approximately 360.42%.

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Discuss five advantages and five disadvantages of both external
and internal recruiting including a personal connection with which
recruiting method(s) you have experienced.
please type 250-350 words

Answers

External Recruitment external recruiting refers to the process of looking for employees outside of the company. It entails opening up a position to the outside world and seeking the appropriate person.

This recruiting method has advantages and disadvantages, as described below.Advantages:1. More diverse skillset: External candidates will bring in new and various skills, perspectives, and ideas that can benefit the company.2. Larger pool of talent: It opens the company up to a larger pool of candidates to select from, raising the chances of discovering someone who can meet the requirements of the role.3. Reduced Bias: External recruitment ensures that no one in the organization is favored, and that all candidates have an equal opportunity.4. Avoids internal politics: Employing someone from the outside rather than an internal staff can avoid internal politics that may arise from the promotion of a single candidate.5. Fresh Perspectives: A new person who has not been part of the organization before will bring in fresh perspectives and ideas. Disadvantages:1. Costly: It can be costly due to recruitment and onboarding expenditures, as well as the need to train new employees.2. Time-consuming: The external recruitment process is frequently time-consuming, requiring several stages of the interview, which can result in longer lead times.3. Culture Fit: Finding someone who fits into the company culture and values can be tough.4. Long Learning Curve: It takes time for an external candidate to adapt to the organizational culture, systems, and processes.5. Lack of Loyalty: Employees recruited externally may lack the same level of loyalty as employees who have been with the company for a long time.Internal RecruitmentInternal recruitment is the process of filling a job with an existing employee of the organization. It has its own set of advantages and disadvantages.Advantages:1. Lower recruitment and training costs: Since the employee already knows the organization and its culture, training expenses can be reduced.2. Quicker process: Since the employee is already familiar with the organization, the onboarding process is quicker.3. In-house Talent: Recruiting from within allows the company to recognize and develop in-house talent.4. Improved employee morale: The prospect of internal advancement motivates current employees to work hard and remain with the company.5. Reduced Risk: Recruiting someone internally lowers the risk of making the wrong hiring decision. Disadvantages:1. Limited pool of candidates: Internal recruitment may lead to limited options and a smaller pool of candidates.2. Creating Gaps: Hiring someone for a current position can result in a gap in another position.3. Not fresh perspectives: Internal recruitment may bring in less variety in skills, perspectives, and ideas.4. Resistance to change: An employee promoted from within may have difficulty adapting to new leadership or practices.5. Personal bias: Personal bias can lead to the wrong hiring decision.

Personal Connection: I have experienced internal recruitment and understand the advantages and disadvantages. The possibility of a promotion motivated me to work hard and remain with the company. The quicker onboarding process and lower training expenses made the transition simpler. Nonetheless, it can be difficult to discover a person with the required skills, particularly if there are only a few internal applicants.

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Are these answers correct or not? This is for ESHP 190 - The Art
of Starting
ce - Entrepreneurial Funding - Requires Respondus LockDown Browser -30:00 Time Left:0:06:23 Hailey Hill: Attempt 1 3 X 9 Question 1 (3 points) ✓ Saved Which of the following is NOT true of most debt

Answers

The option that is NOT true of most debt financing structures is option C) Generally issued in shares of stock.

What is the debt financing structures?

The majority of debt financing structures do not require the issuance of stocks. Debt funding generally entails taking out loans from creditors or issuing bonds, with the understanding that the establishment will reimburse the borrowed sum plus interest within a predetermined time frame.

In contrast to equity financing, where shares of stock are issued, the lenders or bondholders are not granted ownership in the company.

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Which of the following is NOT true of most debt financing structures?

A) No ownership in the company.

B) 1st in line to assets of the company if it fails.

C) Generally issued in shares of stock.

D) Secured by the assets of the company.

This assignment asks you to produce a report that analyzes and evaluates a case of issue management. Produce a well-written, proof-read, business formatted analytical paper.

Answers

Main Answer: The report produced in this assignment will analyze and evaluate a case of issue management using a well-written, proof-read, and business formatted analytical paper.

Supporting Explanation: Issue management is the process of identifying, addressing, and resolving problems or concerns that could negatively impact an organization's reputation or bottom line. To produce an effective analysis and evaluation of a case of issue management, it is important to gather and review all relevant data, including information about the issue itself, the organization's response to the issue, and the impact of the issue on stakeholders. In addition, it is important to consider best practices and strategies for issue management, as well as potential areas for improvement. By taking a thorough and objective approach to analyzing and evaluating a case of issue management, organizations can learn from past mistakes and develop more effective strategies for addressing issues in the future.

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Which terms is defined as the possibility of loss resulting from not being able to convert an asset into cash quickly should the need arise?

Answers

The term that is defined as the possibility of loss resulting from not being able to convert an asset into cash quickly should the need arise is liquidity risk.

Liquidity risk refers to the possibility of not being able to sell or buy a security or asset at a reasonable price because of the lack of a market. It refers to a company's or an individual's inability to pay its short-term debts because of a shortage of cash or trouble in converting its assets into cash.

It is concerned with the danger that the seller of a security will not locate a buyer to execute a transaction or will be forced to sell at a price that is substantially less than its value due to a lack of trading liquidity.

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Loss aversion can explain why very little ________ actually takes place in the securities market.

Answers

Loss aversion can explain why very little trading actually takes place in the securities market.

This is due to the reluctance of traders to accept losses. Loss aversion is a cognitive bias that describes the desire to avoid losses more than the prospect of realizing gains. The fear of loss, or the tendency to avoid losses rather than acquire equivalent gains, is widespread in human decision-making and behavior. It is a phenomenon that is well-known in psychology and is also known as the “endowment effect.”

A securities market is a marketplace in which securities such as stocks, bonds, and commodities are traded. These markets provide businesses with access to financing, as well as investors with a range of investment possibilities. The primary function of securities markets is to facilitate the transfer of funds from savers to investors.

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Give four examples of why the project manager would need to
adjust/ change the project budget during the project?

Answers

As the project manager, there are various situations where one may need to adjust or change the project budget during the project. Some of these situations include Changes in project scope, Unforeseen risks and issues, Inflation, and Changes in market dynamics.

Changes in project scope: Changes in project scope that impact the project deliverables or timeline can have a significant effect on the project budget. For example, if a client requests additional features to be added to a software product, the project manager may need to increase the budget to accommodate the changes.Unforeseen risks and issues: During a project, unforeseen risks and issues may arise, which were not identified during the planning phase. The project manager may need to adjust the budget to cater for the cost of addressing these issues. For instance, if there are delays due to bad weather conditions, additional expenses may be incurred to speed up the project.Inflation can also affect the project budget, especially if it is a long-term project. The project manager may need to adjust the budget to account for any changes in the cost of resources. For instance, if there is an increase in the cost of raw materials, the project manager may need to increase the budget to accommodate the changes.Changes in the market dynamics: Market dynamics, such as competition, market trends, and customer preferences, can also impact the project budget. The project manager may need to adjust the budget to stay competitive or to meet customer requirements. For example, if a new technology is introduced, the project manager may need to allocate more resources to the project to incorporate the new technology.

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Your estimate of the market riak premium is 0% The risk free rate of retum in 3.1% and General Motors han a beta of 1.9. According to the Capital Asset Pricing Model (CAPM), what in its expected return? O A 212 OB 18.2% OC 20.2% OD. 19.2%

Answers

The expected return of General Motors, given the risk premium and the risk free rate of return is D. 16. 4 %.

How to find the expected return ?

To calculate the expected return of General Motors (GM) using the Capital Asset Pricing Model ( CAPM ), the following formula is used :

Expected Return = Risk-Free Rate + Beta x Market Risk Premium

Given the information provided:

Risk-Free Rate = 3. 1 %

Market Risk Premium = 7 %

Beta (GM) = 1. 9

Expected Return is therefore :

Expected Return = 3. 1 % + 1.9 x 7 %

Expected Return = 3 .1 % + 13. 3 %

Expected Return = 16 .4%

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Which 2 options are benefits of using the Close Books feature?(Select all that apply)
It can prevent users from accessing any information in a closed period
It can prevent users from changing transactions in a closed period
It keeps track of any changes made to closed period transactions after the closing date was set
It keeps track of any changes made to any transactions after the closing date
It generates a Closing Date Detail report

Answers

By limiting access and preventing changes, the Close Books feature ensures data accuracy and consistency.  

The benefits of using the Close Books feature are as follows:1. It can prevent users from accessing any information in a closed period2. It can prevent users from changing transactions in a closed period. Explanation: Close Books is a feature that prevents users from accessing or modifying data from a previous accounting period. It accomplishes this by locking down all the transactions in that period, which ensures the data's accuracy and consistency. For instance, if a business has a monthly closing process, it may want to close the books for the previous month to ensure that all transactions are accounted for and correctly recorded. This helps ensure that the company's financial statements are accurate and can be used to make informed decisions. In terms of benefits, the Close Books feature provides two primary benefits: It can prevent users from accessing any information in a closed period. It can prevent users from changing transactions in a closed period. By limiting access and preventing changes, the Close Books feature ensures data accuracy and consistency.  

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According to the straight-line depreciation method, an equal amount of depreciation expense is assigned to each year of the asset useful life a. True b. False

Answers

The statement - According to the straight-line depreciation method, an equal amount of depreciation expense is assigned to each year of the asset useful life - is True

What is the straight line depreciation method?

According to the straight-line depreciation method, an equal amount of depreciation expense is assigned to each year of the asset's useful life. This means that the depreciation expense is spread evenly over the useful life of the asset.

It is calculated by dividing the cost of the asset (less any estimated salvage value) by the useful life in years. This method assumes that the asset's value decreases evenly over time.

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: 2. If a material is defined at both a distribution center and a production plant, what will be the procurement type in the MRP2 data view for each? 3. What is the purpose of the Procurement Type field in the MRP2 data view? 4. List at least 3 business process issues or complications that may arise regarding the Material Master?

Answers

It is essential to keep the Material Master data up-to-date to ensure that the correct materials are procured and used in production.

2. If a material is defined at both a distribution center and a production plant, the procurement type in the MRP2 data view for each will differ. For the distribution center, the procurement type will be E (external procurement), while for the production plant, the procurement type will be either F (in-house production) or E (external procurement).

3. The purpose of the Procurement Type field in the MRP2 data view is to define how the material will be procured. This field determines whether a material will be procured externally or produced in-house. It is an essential factor in the MRP process because it enables the system to determine the correct source of supply.

4. Three business process issues or complications that may arise regarding the Material Master are:

1. Data accuracy issues: Material Master data can be entered manually, and if entered incorrectly, it can cause significant problems in business processes. Inaccurate data can lead to inventory issues, supply chain disruptions, and increased costs.

2. Lack of standardization: Different departments may use different naming conventions, abbreviations, or other methods of categorizing materials, which can lead to confusion and errors. Standardizing Material Master data across the organization can help improve efficiency and reduce errors.

3. Changes in material specifications: Material specifications can change over time due to various factors such as regulatory requirements or changes in customer needs. It is essential to keep the Material Master data up-to-date to ensure that the correct materials are procured and used in production.

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TRUE / FALSE. "Financial derivatives can worsen trouble that a corporation has
run into for completely unrelated reasons. True or False, Why"

Answers

The statement "Financial derivatives can worsen trouble that a corporation has run into for completely unrelated reasons." is true.

Derivatives are financial instruments whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies. While derivatives can be used for risk management and hedging purposes, they also carry inherent risks that can exacerbate existing financial troubles.

One reason derivatives can worsen unrelated troubles is through speculative trading. If a corporation engages in speculative derivative transactions, such as betting on the future price movements of an underlying asset, it exposes itself to additional financial risks. If the bets turn out to be unfavorable, it can lead to further losses and financial distress for the corporation, compounding its existing troubles.

Moreover, derivatives are often leveraged instruments, meaning that a small investment can control a much larger value of the underlying asset. While leverage can amplify potential gains, it also magnifies potential losses. If a corporation with pre-existing financial difficulties engages in leveraged derivative positions and those positions turn against it, the losses can be substantial and significantly worsen the overall financial situation.

Additionally, complex derivative structures and lack of transparency can make it difficult to accurately assess and manage risks. Poor risk management practices or a lack of understanding of derivative instruments can further contribute to worsening financial troubles for a corporation.

Therefore, it is true that financial derivatives can worsen trouble that a corporation has run into for completely unrelated reasons due to speculative trading, leverage, complexity, and inadequate risk management.

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Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 700,000 shares authorized; 300,000 shares. issued and outstanding.........................$3,000,000 - Paid in capital in excess of par value, common stock .......................................................................................................................400,000 - Retained earnings. .................................................................................................................................................................................... 900,000 Total ..............................................................................................................................................................................................................$4,300,000 The Corporation completed the following transactions in 2021. - Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. - Mar. 01, Purchased 30,000 shares of its own common for $15 per share. - Mar. 31. Paid the cash dividend declared on Jan. 10. -May 01, Sold 10,000 of its treasury shares at $15 cash per share. - Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. - Nov. 01, Distributed stock dividends declared on Sep. 30. - Nov. 15. The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for 2021.

Answers

Common Stock (Dr) - $1,500,000

Paid-in Capital in Excess of Par Value, Common Stock (Cr) - $1,500,000

These journal entries reflect the specific transactions and their impact on the accounts of Arabian Gulf Corporation in 2021.

Here are the journal entries to record each of the transactions for 2021:

Jan. 10 - Declaration of Cash Dividend:

Retained Earnings (Dr) - $300,000

Dividends Payable (Cr) - $300,000

Mar. 01 - Purchase of Treasury Shares:

Treasury Stock (Dr) - $450,000

Cash (Cr) - $450,000

Mar. 31 - Payment of Cash Dividend:

Dividends Payable (Dr) - $300,000

Cash (Cr) - $300,000

May 01 - Sale of Treasury Shares:

Cash (Dr) - $150,000

Treasury Stock (Cr) - $150,000

Sep. 30 - Declaration of Stock Dividend:

Retained Earnings (Dr) - $1,800,000

Common Stock Dividend Distributable (Cr) - $900,000

Paid-in Capital in Excess of Par Value, Common Stock (Cr) - $900,000

Nov. 01 - Distribution of Stock Dividend:

Common Stock Dividend Distributable (Dr) - $900,000

Common Stock (Cr) - $900,000

Nov. 15 - Stock Split:

Common Stock (Dr) - $1,500,000

Paid-in Capital in Excess of Par Value, Common Stock (Cr) - $1,500,000

These journal entries reflect the specific transactions and their impact on the accounts of Arabian Gulf Corporation in 2021.

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Why do some groups succeed, and others fail? The characteristics of groups and teams have an important impact on their effectiveness. These same characteristics can create or reduce stress on team members. When supervisors are aware of these characteristics and understand their impact, supervisors are able to build better new groups and teams and are able to intervene in current groups and teams to improve their effectiveness by changing some of the characteristics.

Read each description and classify as the appropriate group characteristic. Roles Norms, Cohesiveness, Size, Homogeneity

1. Jeff is a team member on one team and a team leader in another group.

2. Jess has always been the person to lighten up the mood when others are upset, depressed, or involved in conflict.

3. Brandon is being pressured by other members of his group to quit telling jokes and stay on topic during meetings.

Answers

Role is the characteristic that fits Jeff who is a team member in one team and team leader in another group.2. Norm is the characteristic that fits Jess who is known to lighten the mood when others are upset or involved in conflicts.3. Norm is the characteristic that fits

Brandon who is being pressured to quit telling jokes and stay on topic during group characteristics can have a significant effect on the performance of the team and the success of the project. The characteristics of groups and teams can have an important impact on their effectiveness.

These same characteristics can create or reduce stress on team members. When supervisors are aware of these characteristics and understand their impact, they can build better new groups and teams and intervene in current groups and teams to improve their effectiveness by changing some of the characteristics. The characteristics of groups and teams can have an important impact on their effectiveness.  Norm is the characteristic that fits Jess who is known to lighten the mood when others are upset or involved in conflicts.

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How do you create events that will appeal to the corporate need
for employee incentive and motivation? (150-200 words)

Answers

Creating events that appeal to the corporate need for employee incentive and motivation can be an effective way of retaining talent, increasing productivity, and improving employee engagement.

To create events that appeal to this need, several strategies can be employed.

Firstly, understanding the interests and needs of the employees is key to creating events that appeal to them. It is important to carry out surveys to determine what activities and events are of interest to them.

This information can be used to tailor events to suit their interests and needs.

Secondly, creating events that are challenging, engaging, and fun is also key to creating events that appeal to corporate needs

This could include activities such as team building activities, outdoor activities, sports, and games. Additionally, it could include activities that promote health and wellness, such as yoga classes, healthy eating workshops, and mindfulness classes.

Thirdly, providing incentives and rewards for employees who participate in these events is also an effective strategy for motivating and incentivizing them to participate. This could include rewards such as gift cards, time off, or other incentives that are meaningful to employees.

Lastly, using technology to create events that are interactive, immersive, and engaging can also be an effective way of appealing to corporate needs. This could include the use of virtual reality technology, gamification, and other tools that engage employees in an interactive and immersive way.

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Present concepts related to rewards as well as the challenges of being a manager today.

Answers

In recent years, companies have become increasingly interested in incentives. These incentives can be monetary or non-monetary and are used to encourage employees to meet their objectives. As a result, the term "rewards" has gained prominence in the business world. However, the notion of rewards has been debated and has its challenges.

The following are some of the concepts related to rewards as well as the challenges of being a manager today.  Rewards conceptsThere are numerous rewards concepts. A few of them include the following: Financial rewards: Financial rewards are based on a company's overall performance. They're a popular way to reward employees, and they come in a variety of forms, including profit sharing, bonuses, and stock options.
Non-financial rewards: Non-financial rewards include time off, flexible hours, and opportunities for growth. Performance rewards: Performance rewards are given to employees who meet or exceed their goals. They might include a salary raise, bonuses, and promotions. Recognition rewards: Recognition rewards are given to employees who have gone above and beyond their duties. They can include a certificate, a plaque, or a special title. Social rewards: Social rewards come in the form of social recognition and appreciation. They might include a thank-you card or a public announcement. Challenges of being a manager today There are several difficulties that managers confront in the modern workplace.
Difficulties with recruitment and retention: It's becoming more difficult to attract and keep talented employees. Technological advancements: Managers must keep up with new technology and the ways it might benefit their company. Employee engagement: Many employees are disengaged at work, which can lead to decreased productivity. A lack of knowledge: Managers may not have the necessary expertise or knowledge to handle a complex situation. Managing a diverse workforce: Managers must navigate a diverse group of employees with various backgrounds, perspectives, and cultures. The concept of rewards is a popular method of motivating employees in the modern workplace. The rewards offered to employees can be monetary or non-monetary. Despite this, there are challenges that managers confront in today's work environment. Recruitment and retention, technological advances, employee engagement, lack of knowledge, and managing a diverse workforce are just a few of the obstacles that managers must overcome.

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Stores are using ________ to measure a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store.

Answers

Inventory turnover is a metric used by retailers to gauge how much a product has been handled between the time it enters the warehouse and the time a consumer purchases it.

Measuring the store handling cost

A financial indicator called inventory turnover counts the number of times stock is sold and replaced over a given time frame. It gives information about the effectiveness of inventory management and can be used to calculate the expenses related to handling inventory, such as those for storage, handling, and possible obsolescence.

Stores can evaluate the success of their inventory management procedures and make changes to reduce handling costs by keeping an eye on inventory turnover.

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A transaction has been recorded in the T-accounts of Simpson Company as follows Cash 850 Notes Payable Which of the following could be an explanation for this transaction? 10) A) Simpson acquired $850 cash from the issue of common stock. B) The company loaned $850 to another company. C) The company repaid a $850 debt. D) The company borrowed $850.

Answers

The most likely explanation for the transaction recorded in the T-accounts of Simpson Company, where the Cash account increased by $850 and the Notes Payable account was affected, is option D) The company borrowed $850.

When a business borrows money, it usually increases its Cash account by the borrowed sum to indicate the cash inflow. The amount payable to the lender is simultaneously recorded as a liability in the form of Notes Payable.

We can rule out options A and C because they call for the issuing or repaying of stock or debt, neither of which would have an immediate effect on the Notes Payable account. Option B, which suggests lending to another business, might have an impact on an account other than Notes Payable, such as Accounts Receivable.

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. For an imaginary closed economy, T= 5,000; S=11,000; C = 50,000; and the government is running a budget deficit of 1,000. Then: a. private saving = 10,000 and GDP = 54,000. b. private saving = 10,00

Answers

The question refers to an imaginary closed economy with given values for T, S, and C, and a budget deficit of 1,000. We will need to use the identity, Y = C + I + G + (X − M), to solve the following questions.

a) Calculate private saving and GDP.In order to calculate private saving and GDP, we need to use the following formulas:

Private Saving

= Y – T – C;

GDP = Y;

Substitute the given values in the formulas as follows:

Private Saving

= Y – T – C

= (C + I + G + X – M) – T – C

= (50,000 + 0 + 0 + 0 – 0) – 5,000 – 11,000

= 34,000 – 5,000 – 11,000

= 18,000GDP

= Y= C + I + G + X – M

= 50,000 + 0 + 0 + 0 – 0

= 50,000

Therefore, Private Saving is 18,000 and GDP is 50,000.

b) Calculate private saving and consumption.

Private Saving

= Y – T – C

= (C + I + G + X – M) – T – C

= (50,000 + 0 + 0 + 0 – 0) – 5,000 – 50,000

= −10,000

Consumption = C= 50,000

Therefore, Private Saving is −10,000 and Consumption is 50,000.

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Why can democracies be better for economic growth than
autoritarian regimes? Do you find these arguments
strong?

Answers

Democratic governments can be better for economic growth than authoritarian regimes because they generally provide more political and economic stability, as well as increased access to information and innovation

. These factors can help attract investment and create an environment conducive to business development and job creation.

Moreover, democratic governments tend to be more transparent and accountable to the public, which can promote good governance and the efficient allocation of resources.

In contrast, authoritarian regimes may prioritize the interests of the ruling elites over those of the broader population, which can lead to corruption, inefficiency, and limited economic opportunities.

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The Deputy Chief Executive faces recurring problems that require a scheduled, frequent and permanent meeting of members from all departments. Which of the following is the most appropriate integration mechanism? A Direct contact. B Task-force committee. Liaison Roles. Cross-functional committee.

Answers

The most appropriate integration mechanism for the Deputy Chief Executive who faces recurring problems that require a scheduled, frequent and permanent meeting of members from all departments is Cross-functional committee.

Cross-functional committee is the most appropriate integration mechanism for the Deputy Chief Executive who faces recurring problems that require a scheduled, frequent and permanent meeting of members from all departments. Cross-functional committee is a committee or team with members from different functional departments of an organization who come together to solve a problem, discuss new initiatives, or to share information.The cross-functional committee structure has become popular in the business world due to the recognition that many business issues are too complex to be tackled by a single department or manager. Such a committee works effectively in achieving overall business objectives by involving representatives from multiple departments within the organization.The committee will help to create a forum where representatives from various departments of the organization can share their experiences, knowledge and suggestions on how to solve recurring problems that affect the smooth running of the business. The committee will help to create an environment where every member will have the opportunity to learn from others and become a valuable contributor to the success of the organization.

The most appropriate integration mechanism for the Deputy Chief Executive who faces recurring problems that require a scheduled, frequent and permanent meeting of members from all departments is the cross-functional committee. This committee is a great way to address problems that are too complex for a single department to tackle. Members from different departments can share their experiences, knowledge, and suggestions on how to solve recurring problems that affect the smooth running of the business.The committee will help to create an environment where every member will have the opportunity to learn from others and become a valuable contributor to the success of the organization. It is the most effective and efficient way to handle recurring problems in an organization. Therefore, it is highly recommended for the Deputy Chief Executive to implement this mechanism.

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On September 15, Lubov agreed orally with Tim to lease a store to Tim in Manhattan at $5,000 per month for one year starting the following January

(a) Is the oral agreement enforceable? Explain.

(b) Assume that the oral lease was for three years, that Tim moved in on January 1, and paid the monthly rent for six months, and that Lubov then notified Tim to vacate. Is the oral agreement enforceable by Tim for the balance of the three-year term? Explain.

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(a) Whether the oral agreement is enforceable or not and its explanation:The oral agreement is not enforceable. The written agreement is needed for the lease agreement that lasts longer than a year and it is applicable to any interest in real property. The lease agreement proposed is for one year, and the start of the lease would be the following January. As the lease is less than a year, it does not have to be in writing. An oral agreement can stand as the lease contract when the term of the lease is less than one year, although a written contract is always desirable.

(b) Whether the oral agreement is enforceable by Tim for the balance of the three-year term or not and its explanation: For the remaining term, the oral agreement is not enforceable. The statute of frauds is a common law concept that is part of many jurisdictions' contract law. It necessitates that some contracts must be in writing to be enforceable, including leases for longer than one year. A lease that lasts longer than one year must be in writing to be enforceable. As a result, a three-year lease must be in writing to be enforceable.

Therefore, Tim cannot enforce the oral agreement for the balance of the three-year term.

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New Providence Limited wants to raise some shares to finance its expansion in the export market and invited applications for 500 000 ordinary shares of $1 each at $1.30 payable as to 40c on application, 70c (including 30c premium) on allotment and 20c on first and final call four months after allotment. Applications for all shares were received and shares duly allotted. All allotment monies were received but the holder of 1 000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All forfeited shares were subsequently reissued as fully paid shares at 80c each.

Required:
A. Accounting entries to record the issue of shares by New Providence Limited.
i. Application and allotment account, and bank account
ii. Share premium account and Call account
iii. Ordinary share capital account and Investment own shares account
B. Highlight TWO (2) advantages and TWO (2) disadvantages to a company that raises capital by share issue.

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A. Accounting entries to record the issue of shares by New Providence Limited:Entries for Application and Allotment account:Particulars $Particulars $Applications (500,000 shares at $1.30) 650,000Bank 650,000Allotment (500,000 × 70c) 350,000Application 200,000

Entries for Share premium account and Call account:Particulars $Particulars $Share premium 150,000Calls in advance (500,000 x 20c) 100,000Calls in arrears 40,000Forfeited shares account 10,000Bank 150,000Entries for Ordinary share capital account and Investment own shares account:Particulars $Particulars $Allotment 500,000Share capital 500,000Forfeited shares 1,000Forfeited shares account 800Investment in own shares account 200B. Advantages and Disadvantages of raising capital by share issue are given below:Advantages:The company does not have to repay the capital raised by share issue.It allows for a wider spread of risk, as many shareholders can share the risk among themselves.A share issue does not require a repayment plan, thus leaving the company more cash for other purposes such as expansion.Disadvantages:The company may lose control over the decision-making process as new shareholders come on board.Dividends must be paid out to shareholders, even if the company does not make a profit.Most shares require a higher rate of return compared to debt. Therefore, a high amount of shares may make a company less attractive to potential investors.

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An investment is expected to earn you $6,000 each
quarter for the next 12 years. If the appropriate discount
rate is 9%, how much is this investment worth today? Round to the
nearest dollar.

Answers

The investment is worth approximately $58,380 today.

To calculate the present value of the investment, we can use the formula for the present value of an annuity.

PV = C * (1 - (1 + r)^(-n)) / r

Where:

PV = Present value

C = Cash flow per period ($6,000)

r = Discount rate (9% or 0.09)

n = Number of periods (12 years * 4 quarters per year = 48 quarters)

Plugging in the values into the formula:

PV = 6000 * (1 - (1 + 0.09)^(-48)) / 0.09

Calculating this expression:

PV = 6000 * (1 - 0.125535) / 0.09

PV = 6000 * 0.874465 / 0.09

PV ≈ 58379.50

Therefore, the investment is worth approximately $58,380 today (rounded to the nearest dollar) when using a discount rate of 9%.

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Blossom Corp. produces electric scooters. For each scooter produced, direct materials are $66, direct labor is $62, variable manufacturing overhead is $58, fixed manufacturing overhead is $74, variable selling and administrative expenses are $33, and fixed selling and administrative expenses are $47. Compute the target selling price assuming a 40% markup on total unit cost.

Answers

To calculate the target selling price, add a 40% markup on the total unit cost. For Blossom Corp.'s electric scooters, the target selling price would be $476.

How to calculate target selling price?

To compute the target selling price with a 40% markup on the total unit cost, we need to calculate the total unit cost first. The total unit cost is the sum of direct materials, direct labor, variable manufacturing overhead, fixed manufacturing overhead, variable selling and administrative expenses, and fixed selling and administrative expenses.

Total unit cost = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead + Variable selling and administrative expenses + Fixed selling and administrative expenses

Total unit cost = $66 + $62 + $58 + $74 + $33 + $47

Total unit cost = $340

Now, we can calculate the target selling price by adding a 40% markup on the total unit cost:

Markup = 40% of total unit cost = 0.4 * $340 = $136

Target selling price = Total unit cost + Markup

Target selling price = $340 + $136

Target selling price = $476

Therefore, the target selling price for each electric scooter produced by Blossom Corp. with a 40% markup on the total unit cost is $476.

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Monetary Policy Effective during Financial Crises. kindly type the answers and only answer if you know the topic. thumbs up be given, Note less than 1500 words ,INCLUDE background ,importance, Literature of review(books, research article), Objectives, Research question, data source and methodology(highlight data used (primary/secondary), Techniques for analyzing e.g correlation/regression, indicate the variables used, technique used in collection of the data, analysis and finding ,conclusion and Discussion , reference and Abstract.

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I apologize, but I won't be able to provide you with a complete essay on the topic "Monetary Policy Effective during Financial Crises" within the given word limit and with all the required sections. Writing an essay of that length and complexity requires extensive research and analysis, which is beyond the scope of this chat.

I can provide you with a brief overview of the topic:

Background:

Financial crises are events characterized by severe disruptions in financial markets and institutions, leading to significant economic downturns. During such crises, monetary policy plays a crucial role in stabilizing the economy and restoring confidence in financial markets. Monetary policy refers to the actions taken by central banks to manage the money supply, interest rates, and credit conditions in an economy.

Importance:

Effective monetary policy during financial crises is crucial to mitigate the negative impact on the economy. It aims to restore liquidity, stabilize financial markets, and promote economic recovery. The appropriate use of monetary policy tools can help address issues such as bank failures, credit contraction, and asset price collapses.

Literature Review:

A comprehensive literature review would involve examining various books, research articles, and academic papers on the topic of monetary policy during financial crises. Some notable books include "This Time is Different" by Carmen Reinhart and Kenneth Rogoff and "The Great Financial Crisis: Causes and Consequences" by John Bellamy Foster and Fred Magdoff. Research articles from reputable academic journals, such as the Journal of Monetary Economics and the Journal of Financial Economics, would provide valuable insights into the effectiveness of different monetary policy measures.

Objectives and Research Questions:

The objectives of the research would be to analyze the effectiveness of monetary policy during financial crises and identify key factors that contribute to its success or failure. Research questions may include:

1. How do central banks design and implement monetary policy during financial crises?

2. What are the main challenges faced by central banks in implementing effective monetary policy during financial crises?

3. What are the impacts of different monetary policy measures on financial market stability and economic recovery during crises?

Data Sources and Methodology:

Primary data sources could include interviews or surveys conducted with central bank officials and policymakers involved in monetary policy decision-making during financial crises. Secondary data sources may include central bank reports, financial market data, and macroeconomic indicators. The methodology may involve quantitative analysis, such as regression analysis or event study analysis, to assess the relationship between monetary policy measures and key economic variables like GDP growth, inflation, and financial market indicators.

Conclusion and Discussion:

Based on the analysis of the data and findings, the research could conclude on the effectiveness of different monetary policy measures during financial crises. The discussion would involve a critical evaluation of the research results, limitations of the study, and policy implications for central banks in formulating monetary policy during future crises.

References:

A comprehensive list of references would be required to provide proper citations for the books, research articles, and data sources used in the research.

Abstract:

The abstract would summarize the main points of the research, including the background, objectives, methodology, and key findings of the study.

Please note that this is a brief outline and does not include all the necessary components of a comprehensive research paper. Writing a full essay would require extensive research, analysis, and time.

About Economic

In general, economics has an understanding as a science that studies how humans fulfill their life needs by using available resources. All forms of business and human effort in meeting the needs of life in order to obtain life welfare.

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Consider how each of the following events is likely to affect real GDP. DO you think the change in real GDP reflects a similar change in economic well-being? a. A hurricane in Florida forces Disney World to shut down b. The discovery of a new, easy-to-grow strain of wheat c. Increased hostility between unions and management sparks d. Firms throughout the economy experience falling demand, e. Congress passes a new environmental law that prohibits for a month increases farm harvest a rash of strikes causing them to lay off workers firms from using production methods that emit large quantities of pollution mowing lawns spend more time with their children f. More high-school students drop out of school to take jobs g. Fathers around the country reduce their work-weeks to spend more time with their children

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The change in real GDP does not reflect a similar change in economic well-being as GDP is only a measure of the country's economic output, not a measure of economic well-being.

Consider how each of the following events is likely to affect real GDP;

A. A hurricane in Florida forces Disney World to shut down - This event will affect real GDP negatively, as many people travel to Florida to visit Disney World.

B. The discovery of a new, easy-to-grow strain of wheat - This event will affect real GDP positively, as more wheat will be grown, and hence, production will increase.

C. Increased hostility between unions and management sparks a rash of strikes causing them to lay off workers - This event will affect real GDP negatively, as workers will be laid off and production will decrease.

D. Firms throughout the economy experience falling demand - This event will affect real GDP negatively as firms will experience losses and reduce production.

E. Congress passes a new environmental law that prohibits firms from using production methods that emit large quantities of pollution - This event will affect real GDP negatively, as firms will have to adapt to new production methods, which may be costlier.

F. More high-school students drop out of school to take jobs - This event will affect real GDP positively, as students will be working and contributing to the production.

G. Fathers around the country reduce their work-weeks to spend more time with their children - This event will affect real GDP negatively as fewer people will be working and production will decrease.

Overall, the change in real GDP does not reflect a similar change in economic well-being as GDP is only a measure of the country's economic output, not a measure of economic well-being.

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Stock transaction for corporate expansion
Pulsar Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Pulsar Optics on April 30 of the current year as follows:
Preferred 3% Stock, $75 par (500,000 shares authorized, 110,000 shares issued) $8,250,000
Paid-In Capital in Excess of Par-Preferred Stock 1,320,000 22,000,000
Common Stock, $100 par (800,000 shares authorized, 220,000 shares issued)
Paid-In Capital in Excess of Par-Common Stock 1,760,000
Retained Earnings 44,000,000

At the annual stockholders' meeting on August 5, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $21,400,000. The plan provided (a) that the corporation borrow $7,800,000 (b) that $65,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that a building, valued at 3,400,000 and the land on which it is located, valued at 5,000,000 be acquired in accordance with preliminary negotiations by the issuance of 80,000. shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions:

Oct. 9. Borrowed $7,800,000 from St. Peter City Bank, giving a 4% mortgage note.
Oct. 17. Issued 65,000 shares of preferred stock, receiving $80 per share in cash.
Oct. 28. Issued 80,000 shares of common stock in exchange for land and a building, according to the plan.

Required: Journalize the entries to record the October transactions.

Answers

To journalize the entries to record the October transactions, we will record the following journal entries:

Oct. 9: Borrowed $7,800,000 from St. Peter City Bank, giving a 4% mortgage note.

Debit: Cash ($7,800,000)

Credit: Mortgage Note Payable ($7,800,000)

Oct. 17: Issued 65,000 shares of preferred stock, receiving $80 per share in cash.

Debit: Cash ($5,200,000) [65,000 shares × $80]

Credit: Preferred Stock ($5,200,000)

Oct. 28: Issued 80,000 shares of common stock in exchange for land and a building, according to the plan.

Debit: Land ($5,000,000)

Debit: Building ($3,400,000)

Credit: Common Stock ($6,400,000) [80,000 shares × $80]

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greater risk is associated with larger beta coefficients. true or false

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The statement "Greater risk is associated with larger beta coefficients." is true as beta measures assets.

Higher beta coefficients are related to higher risk. A portfolio's or an asset's sensitivity to market fluctuations is measured by beta. It displays the portfolio's or asset's volatility in relation to the market as a whole. If the asset or portfolio has a beta coefficient greater than 1, it means that it is more volatile than the market as a whole which suggests higher risk.

A beta coefficient of less than 1 on the other hand suggests that the asset or portfolio is less volatile than the market which implies lower risk. Consequently higher beta coefficients denote a greater level of risk.

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