The CBA Corporation is considering a new credit policy. The current policy is cash only. The new policy would involve extending credit of 'Net 30'. Based on the following information, determine if a switch in credit policy is advisable. The interest rate is 3 percent per month:
Current Policy New Policy
Price per unit RM 200 RM 200
Cost per unit RM 150 RM 150
Sales per month 1500 units 1700
units

5.1) The face masks industry initially transitioned from a normal market to a seller's market due to increased demand during the COVID-19 pandemic, but later returned to a more competitive market as supply caught up.

5.2) The price elasticity of demand for face masks was initially low, resulting in increased revenue during the peak demand period, but became more elastic when prices returned to pre-pandemic levels, potentially leading to a decrease in revenue.

5.1) Changes in Market Type for the Face Masks Industry:

Initially, the face masks industry experienced a significant increase in demand due to the COVID-19 pandemic. This surge in demand resulted in shortages and panic buying, leading to a temporary shift in the market type. The market transitioned from a normal market to a seller's market, characterized by scarcity and increased prices.

Diagrammatically, this change can be represented by an upward shift in the demand curve (D1 to D2) due to increased demand, while the supply curve (S) remains relatively stable. The new equilibrium point (E2) reflects a higher price and quantity compared to the pre-pandemic equilibrium (E1).

However, as the pandemic progressed and the production of face masks increased to meet the rising demand, the market gradually returned to a more competitive market type. The supply of face masks caught up with demand, resulting in price stabilization and a return to pre-pandemic price levels.

This transition can be depicted diagrammatically by a downward shift in the demand curve (D2 to D3) as demand decreases or plateaus, while the supply curve (S) remains stable. The new equilibrium point (E3) reflects a lower price and quantity compared to the peak demand period.

5.2) Price Elasticity of Demand and Revenue Impact:

During the initial phase of the pandemic, the price elasticity of demand for face masks was relatively low due to the urgent need and limited substitutes. Consumers were willing to pay higher prices to acquire masks for protection, resulting in inelastic demand.

As a result, the increase in price led to a significant increase in total revenue for face masks manufacturers and retailers. The large year-on-year sales growth of 400% in April 2020 mentioned in the question indicates the substantial revenue impact during the peak demand period.

However, as the market stabilized and supply caught up with demand, the price of face masks returned to pre-pandemic levels. At this stage, the price elasticity of demand became more elastic, as consumers had more options and substitutes available. The impact on revenue would depend on the extent of the decrease in price and the corresponding change in quantity demanded.

Overall, the initial surge in demand for face masks resulted in inelastic demand and increased revenue. As the market stabilized, the price elasticity of demand became more elastic, potentially leading to a decrease in revenue unless volume sales compensated for the lower price.

To learn more about competitive market refer here:

https://brainly.com/question/13961518

#SPJ11

The option that is NOT considered a best practice in application design, security, and control is: O Using a positive security model

It is not regarded as best practise to use a positive security paradigm, where all access is permitted by default and only expressly mentioned rights are removed or restricted. This strategy increases the risk of unauthorized access because it makes the assumption that everything is acceptable unless specifically prohibited.

The best practises for improving application design, security, and control, on the other hand, include using a negative security model (where access is specifically listed and all other access is excluded by default), implementing defense-in-depth (using multiple layers of security measures), and running with the least privilege (granting only the minimal privileges required to complete tasks).

Learn more about the security model:

brainly.com/question/31503917

#SPJ4

When a hotel's F&B department is going to host a banquet for 100 guests, and the guests are charged $75.00 per person for food and $35.00 per person for alcoholic beverages, the service charge for the event will be 20%. Let's calculate the amount of food and beverage income (revenue) that will result from hosting this event.

So, First, we will calculate the amount of income from the food and beverages sold:$75.00 × 100 guests = $7,500.00 for food$35.00 × 100 guests = $3,500.00 for alcoholic beverages. Then, calculate the total amount of income received before service charge:

Total income from food and beverages = $7,500.00 + $3,500.00 = $11,000.00To find out the amount of income received after the service charge, we will calculate 20% of the total income:20% of $11,000.00 = $2,200.00Now, we will add the service charge to the total income:

Total income + Service charge = $11,000.00 + $2,200.00 = $13,200.00Therefore, the amount of food and beverage income (revenue) that will result from hosting this event is $13,200.

Thus, the option (a) is correct. I hope this helps! More about the F&B department: Food and Beverage (F&B) department is responsible for the management of food service and drinks in hospitality organizations, which includes hotels, pubs, lounges, and eateries. The F&B department is vital for a hotel since it significantly contributes to the success of the hotel. F&B department’s objective is to provide high-quality food and drinks to the guests and customers of the hotel.

Additionally, the department is also responsible for planning and organizing events, including buffets, banquets, and conferences. The department oversees the procurement of raw materials and the preparation and delivery of food and beverages to customers.

To know more about hosting visit :

https://brainly.com/question/32223514

#SPJ11

The critical rule about scale to remember when visualizing data is "Set the scales based on the data minimum and maximum values."

It is essential to set the scales of the visualization based on the range of the data being presented. This ensures that the data is accurately represented and avoids distorting or misleading the audience. By setting the scales based on the data's minimum and maximum values, we maintain the integrity of the visualization and provide a clear representation of the data.

The other options listed are not universally applicable rules for scale in data visualization. While using round numbers or ensuring consistency across charts in a project may be helpful in some cases, they are not fundamental principles like setting the scales based on the data's actual range. Additionally, line charts and bar charts may require different scale handling depending on the specific characteristics of the data being visualized.

learn more about "data ":- https://brainly.com/question/179886

#SPJ11

considering a financing rate of 12%, the preferable option would be Computer A.

To find the crossover rate between the two computers, we need to determine the discount rate at which the net present value (NPV) of the cash flows from each computer is equal. We can calculate the NPV for each computer using the given after-tax revenue figures and the financing rate of 12%.

For Computer A:

NPV_A = -$820 + ($91 / (1 + 0.12)^1) + ($254 / (1 + 0.12)^2) + ($734 / (1 + 0.12)^3)

NPV_A = -$820 + $81.25 + $184.66 + $445.46

NPV_A = $16.37

For Computer B:

NPV_B = -$690 + ($451 / (1 + 0.12)^1) + ($246 / (1 + 0.12)^2) + ($89 / (1 + 0.12)^3)

NPV_B = -$690 + $402.68 + $184.66 + $58.99

NPV_B = -$43.67

To determine the crossover rate, we need to find the discount rate at which NPV_A = NPV_B. Since the NPV of Computer A is positive and the NPV of Computer B is negative, there is a crossover point between the two.

Using a financial calculator or spreadsheet software, we can find that the crossover rate is approximately 5.8%. This means that if the financing rate is below 5.8%, Computer A would be the better choice, and if the financing rate is above 5.8%, Computer B would be the better choice.

Therefore, considering a financing rate of 12%, the preferable option would be Computer A.

Learn more about discount rates here

brainly.com/question/9841818

#SPJ11

a. Present value of 15 annual payments = $40,893.75

b. Present value of 40 annual payments = $78,695.61

c. Present value of 75 annual payments =$109,569.03

d. Present value of annual payments forever = $64,166.67

To calculate the present value of the investment, the formula for the present value of an annuity:

PV = PMT × [(1 - (1 + r)²(-n)) / r]

Where:

PV = Present value

PMT = Annual payment

r = Required rate of return

n = Number of years

a. Present value of 15 annual payments:

PMT = $3,850

r = 6% = 0.06

n = 15

PV = $3,850 × [(1 - (1 + 0.06)²(-15)) / 0.06]

PV = $40,893.75

b. Present value of 40 annual payments:

PMT = $3,850

r = 6% = 0.06

n = 40

PV = $3,850 × [(1 - (1 + 0.06)²(-40)) / 0.06]

PV ≈ $78,695.61

c. Present value of 75 annual payments:

PMT = $3,850

r = 6% = 0.06

n = 75

PV = $3,850 × [(1 - (1 + 0.06)²(-75)) / 0.06]

PV ≈ $109,569.03

d. Present value of annual payments forever:

A perpetuity, and the formula for the present value of a perpetuity is:

PV = PMT / r

PMT = $3,850

r = 6% = 0.06

PV = $3,850 / 0.06

PV ≈ $64,166.67

To know more about value here

https://brainly.com/question/30145972

#SPJ4

A municipal dealer is a securities dealer who focuses on selling securities that are issued by the local or state government and he is preparing to publish an advertisement online. The advertisement should be informative, accurate, and non-deceptive.

When it comes to selling securities, a municipal dealer is a specialized broker-dealer who concentrates on selling municipal securities. In order to promote the enhanced facilities of your firm in the municipal securities arena, Municipal Dealer B is preparing to publish an advertisement online.

This advertisement should not exceed 200 words. It should be compelling, persuasive and designed to attract potential investors. A well-written advertisement should include information about the benefits of investing in municipal securities. It should also highlight the services that are offered by your firm.

When writing this advertisement, Municipal Dealer B should make sure that they comply with the rules and regulations that are set by the SEC.   Furthermore, the advertisement should not make false or misleading statements about the securities that are being sold. In summary, a well-written advertisement that highlights the benefits of investing in municipal securities and the services that are offered by your firm can be an effective way to attract potential investors.

Know more about investors here:

https://brainly.com/question/31259789

#SPJ11

The following are the characteristics of a premium bond are coupon rate > yield-to-maturity and coupon rate > current yield.

The option (E) is correct.

II. coupon rate > yield-to-maturity: A superior security has a coupon rate that is higher than its respect development. This implies that the security is estimated at a higher cost than expected over its presumptive worth, bringing about a lower successful yield for financial backers.

IV. coupon rate > current yield: The ongoing yield of a security is determined by separating the yearly premium installment (coupon) from the ongoing business sector cost of the security. On account of exceptional security, the market cost is higher than the presumptive worth, which prompts a lower current yield contrasted with the coupon rate.

Learn more about coupon rate:

https://brainly.com/question/28023723

#SPJ4

a) Collect and present GDP per capita data from 1960-2019 for the specified countries. b) Analyze similarities/differences, identify catch-up effects, and cite reasons for India's relatively low GDP per capita growth.

a) To gather the yearly Gross domestic product per capita information for the predefined nations and time span and make the line diagrams utilizing a diagramming instrument like Succeed.

b) Comparably, you can gather the information for Gross domestic product per capita development for the seven nations from a similar source and process the typical development rates over the 1961-2019 period for every country.

c) In light of the gathered information, dissect the similitudes and contrasts in Gross domestic product per capita drifts among the nations. Search for designs.

For example, generally speaking development rates, union or difference in Gross domestic product per capita levels, and possible make up for lost time impacts where nations with at first lower Gross domestic product per capita experience higher development rates.

d) Potential explanations behind India's moderately low Gross domestic product per capita development incorporate primary difficulties, pay imbalance, lacking foundation, and restricted admittance to quality instruction and medical care.

It is prescribed to allude to solid sources and concentrates on India's economy to help the investigation and conversation of these reasons.

To learn more about GDP per capita, refer:

brainly.com/question/31054243

#SPJ4

The term used to refer to the markets since stockholders are said to own the common equity of the firm is stock markets.

A stock market is a platform for the trading of stocks or shares, bonds, and other securities of publicly traded corporations and the issuance of new securities by the firm. This market is also known as the equity market because it allows shareholders to trade the firm's equity.

The equity refers to a company's ownership interest, which is comprised of a variety of securities such as preferred stock, common stock, and retained earnings. The owners of equity are stockholders or shareholders. They invest their capital in the company, and in exchange, they receive ownership in the firm. The equity investors are entitled to participate in the company's management, to vote on important issues, and to receive dividends.

Stock markets are of two types: primary and secondary. A primary market is where companies offer their shares to the public for the first time. In contrast, a secondary market is where previously issued shares are traded between investors. In a secondary market, investors buy and sell shares through exchanges, like the New York Stock Exchange (NYSE) or over-the-counter (OTC) markets.

Learn more about stock market here:-

https://brainly.com/question/3210355

#SPJ11

An example of globalization's impact on trade barriers is Option C: lower tariffs.

Globalization refers to the increased interconnectedness and integration of economies around the world. One of the impacts of globalization on trade barriers is the reduction of tariffs. Tariffs are taxes or duties imposed on imported goods, and they act as a trade barrier by increasing the cost of foreign products and making them less competitive in domestic markets. With globalization, many countries have entered into trade agreements and negotiations to lower tariffs and promote free trade. This has resulted in the reduction of trade barriers and facilitated the flow of goods across borders, allowing for increased international trade and economic integration.

Option C is the correct answer.

You can learn more about Globalization  at

https://brainly.com/question/25499191

#SPJ11

Answer:

is facilitated if the rater has empathy for the employee.

Explanation:

A performance evaluation is a tool of the HR department used in organizations with the objective of evaluating how an employee or a team conducts their work, how their actions affect positively or negatively in the achievement of organizational objectives and goals, that is, it is a way of analyzing whether a collaborator's work meets the company's expectations.

Therefore, there are some issues that can hinder this evaluation, such as some existing bias due to some situation, which may cause the performance evaluation to not be fully consistent with reality.

So when the appraiser has empathy for the employee, the assessment is facilitated, as there is greater understanding and search for solutions for the employee to develop and improve situations that were not so positive in the assessment.

To reduce the total term by ten months while maintaining the interest rate and monthly payments, you need to amortize 5.50% of the initial debt balance.

The first step is to calculate the remaining balance after the fortieth payment. This can be done using the following formula:

Remaining balance =[tex]Principal * (1 - (1 + i)^-n)[/tex]

where:

Principal = $200,000

i = Effective interest rate = 8.70%

n = Number of payments = 120 - 40 = 80

Plugging in these values, we get:

Remaining balance =[tex]$200,000 * (1 - (1 + 0.087)^-80) = $110,048.61[/tex]

The next step is to calculate the monthly payment. This can be done using the following formula:

Monthly payment =[tex]Principal * i * (1 + i)^n / (1 - (1 + i)^-n)[/tex]

Plugging in the values from above, we get:

Monthly payment = [tex]$200,000 * 0.087 * (1 + 0.087)^{120 / (1 - (1 + 0.087)^-120) =[/tex][tex]$1,746.13[/tex]

Now, we need to calculate the number of payments that will be required if the loan is amortized over 110 months. This can be done using the following formula:

Number of payments = ln(1 - (Remaining balance / Principal)) / ln(1 + i)

Plugging in the values from above, we get:

Number of payments = [tex]ln(1 - $110,048.61 / $200,000) / ln(1 + 0.087) = 110[/tex]

So, we need to reduce the number of payments by 10. This means that we need to amortize $110,048.61 / 10 = $11,004.86 in order to reduce the total term by ten months.

The percentage of the initial debt balance that must be amortized is:

Percentage =[tex]$11,004.86 / $200,000 = 5.50%[/tex]

Therefore, you need to amortize 5.50% of the initial debt balance in order to reduce the total term by ten months.

To know more about Amortization visit here:

https://brainly.com/question/30370771

#SPJ4

The government has been mandating deductions from both employers and employees to fund various social programs. These deductions are usually done in the form of payroll taxes or social security taxes.

There are several features of these deductions, and in this answer, I will explain their advantages and disadvantages. Features of payroll taxes or social security taxesThese deductions are mandatory and non-voluntary. Every employer and employee must pay them, regardless of whether they want to or not. The rates are determined by the government, and they are usually a fixed percentage of the employee's income.

These taxes are collected by the employer, who is responsible for remitting them to the government. The funds are then used to finance various social programs such as healthcare, unemployment insurance, and social security. The Advantages of Payroll TaxesThe main advantage of payroll taxes is that they provide a stable source of funding for social programs.

To know more about social security taxes please refer:

https://brainly.com/question/13255138

#SPJ11

ffgcjxudurfururififjdudhe shdu

Based on the cost analysis, it would be advantageous for Sunland Manufacturing to accept the supplier's offer of producing 16,700 sub-assembly parts for $5.60 per unit.

To determine whether Sunland Manufacturing should make or buy the sub-assembly parts, we need to compare the costs of producing them in-house versus purchasing them from the supplier.

In-house production cost:

Variable cost per unit: $5.00

Fixed cost per unit: $2.00

Total cost per unit: $5.00 + $2.00 = $7.00

Supplier's offer:

Cost per unit: $5.60

Quantity offered: 16,700 units

To calculate the total cost of the supplier's offer, we multiply the cost per unit by the quantity offered:

Total cost from the supplier: $5.60 * 16,700 = $93,520

Comparing the total cost from the supplier with the in-house production cost, we can make the following analysis:

Total cost from the supplier: $93,520

Total cost of in-house production: $7.00 * 16,700 = $116,900

Since the total cost from the supplier, $93,520, is lower than the total cost of in-house production, $116,900, it would be more cost-effective for Sunland Manufacturing to buy the sub-assembly parts from the supplier rather than producing them in-house.

By choosing the supplier's offer, Sunland Manufacturing can save $116,900 - $93,520 = $23,380 in total costs.

for more such questions on supplier's

https://brainly.com/question/14885967

#SPJ11

What are the social or economic goals? Is there options?

Edit: The answer is A

Answer:

A

Explanation:

The nominal yield to maturity (YTM) and the nominal yield to call (YTC) for a firm's bonds with a maturity of 14 years and the given details can be calculated as follows:

NOMINAL YIELD TO MATURITY(YTM)Nominal Yield to Maturity is the annual rate of return that an investor can earn on a bond if they hold it until its maturity and the issuer of the bond does not default on its payment.

It is also called the coupon rate. The YTM for the given bonds can be calculated as follows:

Given,

Face value of bond = $1000
Semiannual coupon rate = 11%

Maturity of bond = 14 years

Callable in 7 years at $1,232.25

Bond price = $1,398.53

To calculate YTM, we need to find the yield rate that makes the present value of the bond's cash flows equal to the current bond price. i.e. 1398.53 = (55/1+r) + (55/1+r)^2 + ... + (55+1000/1+r)^28

Where,r = Yield Rate Solving the above equation using Excel sheet or any financial calculator,

we get Yield Rate, YTM = 6.64%

NOMINAL YIELD TO CALL(YTC)Nominal Yield to Call is the annual rate of return that an investor can earn on a bond if it is called before its maturity. It is also called call yield.

The YTC for the given bonds can be calculated as follows:

Given,

Call price = $1,232.25To calculate YTC, we need to find the yield rate that makes the present value of the bond's cash flows equal to the call price (i.e. $1232.25) when the bond is called at the end of 7 years.

i.e. 1232.25 = (55/1+r) + (55/1+r)^2 + ... + (55+1000/1+r)^14 for n=7

Where,r = Yield Rate Solving the above equation using Excel sheet or any financial calculator, we get Yield Rate, YTC = 7.69%

Therefore, the Nominal Yield to Maturity (YTM) and the Nominal Yield to Call (YTC) are 6.64% and 7.69% respectively.

To know more about Maturity visit :

https://brainly.com/question/28265519

#SPJ11

The legal system in British Columbia, Canada operates within the framework of Canadian law, which is based on common law principles. It consists of federal and provincial laws, statutes, and regulations that govern various aspects of civil and criminal matters.

British Columbia has its own provincial court system, which includes trial courts, appellate courts, and the highest court in the province, the British Columbia Court of Appeal.

As for the connection with Starbucks, being a multinational company, Starbucks operates in British Columbia and is subject to the legal system and regulations of the province and the country as a whole. This includes compliance with labor laws, taxation regulations, consumer protection laws, and other relevant legislation that govern business operations.

Starbucks, like any other company operating in British Columbia, must adhere to employment standards, health and safety regulations, and fair business practices outlined in the legal framework. In case of legal disputes or conflicts, Starbucks would be subject to the jurisdiction of the British Columbia courts and would need to follow the established legal processes and procedures.

For more detailed and specific information on the legal system in British Columbia and its connection with Starbucks, it is recommended to refer to legal resources, official government websites, and consult legal professionals familiar with Canadian and British Columbia law.

learn more about Canadian law here:

https://brainly.com/question/30405060

#SPJ11

Most top executives began their careers as functional or technical experts. They gained specialized knowledge and skills in a particular field, such as marketing, finance, operations, or engineering, before moving up to leadership roles in their organizations.

Functional or technical experts are individuals who possess specialized knowledge and skills in a particular field. They typically have advanced degrees, certifications, and practical experience in their field, making them well-versed in the complexities of their profession. These experts serve as the foundation of their organizations and act as subject matter experts in their respective fields.

They are responsible for analyzing data, identifying trends, making informed decisions, and driving innovation in their organizations. In conclusion, most top executives begin their careers as functional or technical experts and later move up to leadership roles in their organizations.

To know more about marketing refer to:

https://brainly.com/question/25369230

#SPJ11

The level of income that would allow the consumer to buy his old optimal bundle is 100 PLN. d)

Let, P x = price of X; P y = price of Y; x = units of good X; y= units of good Y;U(x, y) = 2*x^(2/3) + y^(2/3);ΔI = Change in income level;ΔPx = Change in price of good X. At new price Px' = $1 and income level I' = 100 PLN. The total effect of the change in price can be divided into two parts. Substitution effect: The substitution effect is the effect on the quantity demanded of good X due to the change in the relative price of the good X to good Y.ΔxS = (dx/d P x)S*ΔPx; where (dx/dPx)S is the substitution effect. The quantity demanded of good X increases as its price decreases, i.e., (dx/d P x)S > 0.Income effect: The income effect is the effect on the quantity demanded of good X due to the change in the consumer's purchasing power.ΔxI = (dx/dI)I*ΔI/Px; where (dx/dI)I is the income effect. The quantity demanded of good X increases as the income increases, i.e., (dx/dI)I > 0.The total effect is the sum of substitution and income effects i.e., Δx = ΔxS + ΔxI.

To know more about consumer's visit:-

https://brainly.com/question/32679665

#SPJ11

Gabriella should buy less tuna and more packs of noodles, because she receives more utility per Rand spent on noodles. So the correct option is B.  buy less tuna and more packs of noodles, because she receives more utility per Rand spent on noodles.

The Law of Diminishing Marginal Utility is a law that states that the marginal utility of each additional unit of a good consumed decreases as the total number of units consumed increases. Gabriella gets more marginal utility from consuming a single unit of tuna than she does from consuming a single pack of noodles.

The total utility Gabriella receives from consuming more than one unit of tuna decreases because of the Law of Diminishing Marginal Utility.Gabriella can maximize her utility by buying fewer units of tuna and more packs of noodles since the marginal utility per Rand spent on noodles is higher. It means that by spending the same amount of money on noodles as on tuna, Gabriella can receive more marginal utility.

To know more about Marginal Utility visit:-

https://brainly.com/question/30841513

#SPJ11

1. Equivalent units of production for the forming department Direct materials = Beginning inventory + Direct materials added during the month.

= 28,000 + 1,440,600 = 1,468,600Conversion

= Beginning inventory + Conversion added during the month

= 28,000 + 997,100

= 1,025,100Equivalent units of production

= Units completed and transferred out + Ending inventory * Percentage of completion

= (1,370,000) + (40,000 * 85%) = 1,701,000Direct materials

= (1,370,000) + (40,000 * 85%)

= 1,701,000Conversion = (1,370,000) + (40,000 * 45%) = 1,388,000Therefore, equivalent units of production for the forming department are:Direct materials

= 1,701,000Conversion

= 1,388,0002.

Costs per equivalent unit of production for the forming department Direct Materials Cost per EUP

= Total direct materials cost / Equivalent units of production

= $1,489,600 / 1,701,000

= $0.8752Conversion Cost per EUP = Total conversion cost /Total costs transferred out$2,197,910Costs of ending work in processEUPCost per EUPTotal costDirect.

materials40,000$0.8752$35,008Conversion40,000$0.7311$29,244Total cost of ending work in process$64,252Total costs assigned

= Total cost of ending work in process + Total costs transferred out

= $64,252 + $2,197,910 = $2,262,162Therefore, the total costs assigned to the forming department’s output are $2,262,162.4

To know more about production visit:

https://brainly.com/question/29675824

#SPJ11

1. Net income for the year is $99,500.Jones $33,833, Silva $33,833, Thompson $33,833.2.

2. Net income for the year is $38,300.Jones $12,767, Silva $12,767, Thompson $12,767.3.

3. Net loss for the year is $15,100.Jones $5,033, Silva $5,033,

1.Thompson $5,033.In the given problem, a partnership firm consisting of three members has been given.

2.

The partners have agreed to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $2,000 to Jones and $1,500 to Thompson. Capital balances on January 1 were given. To calculate the net income or loss allocation to each partner, the following steps are to be followed:

3. Find the total salary allowance and subtract it from the given net income or add it to the given net loss.Find the interest on the beginning capital balances.Calculate the total capital balances at the end of the year.

Add the interest to the beginning capital balances and subtract the total salary allowance from the net income or add it to the net loss.

This gives us the adjusted net income or loss.Then divide the adjusted net income or loss equally among the partners.This way, the net income or loss allocation to each partner under each of the given independent situations can be calculated.

To know more about  Capital balances click on below link:

https://brainly.com/question/28548373#

#SPJ11

The three factors in favour of self insurance are- control over claims, cost savings, and flexibity. Three factors against self insurance are- financial risk, limited protection, and administrative burden.

a. Factors in favour of self-insurance: Self-insurance is a method of risk financing whereby an entity creates a fund to cover unexpected losses. There are several reasons why an organization may choose to self-insure, including:

Control over claims: Self-insuring provides businesses with more control over their claims management. In some cases, self-insured organizations can avoid the costs and bureaucratic procedures associated with purchasing traditional insurance.

Cost savings: When an organization self-insures, it can avoid many of the overhead and administrative costs associated with traditional insurance plans. As a result, businesses can save significant amounts of money over time.

Flexibility: Self-insured organizations can customize their coverage options, tailoring policies to meet the specific needs of their business.

b. Factors against self-insurance: While there are advantages to self-insurance, there are also some disadvantages, including:

Financial risk: Self-insuring can be a risky endeavor for small or under-capitalized businesses. In some cases, unexpected losses can significantly impact the organization's financial stability.

Limited protection: Self-insurance policies may not provide the same level of coverage as traditional insurance plans. This can leave organizations exposed to financial losses in certain scenarios.

Administrative burden: Self-insuring requires a significant amount of administrative effort, which can be a burden for businesses with limited resources.

c. Problems associated with retrospective insurance plans include the following:

Limited control over claims management: Retrospective insurance plans can lead to reduced control over claims management since they rely on insurance companies to handle the claims process.

Cost uncertainty: Retrospective insurance plans can lead to significant cost uncertainty since the final cost of the policy will depend on the actual claims incurred during the policy period. This can make it difficult for businesses to budget for their insurance costs.

know more about self insurance

https://brainly.com/question/14506766

#SPJ11

The dividend growth rate is 6%. The correct answer is c. 6%.

To determine the dividend growth rate, we can use the formula for the required rate of return:

Required Rate of Return = Dividend Yield + Dividend Growth Rate

Given:

Stock Price = $37.50

Dividend = $3

Required Rate of Return = 14%

Dividend Yield = Dividend / Stock Price

Dividend Yield = $3 / $37.50

Dividend Yield = 0.08

Required Rate of Return = Dividend Yield + Dividend Growth Rate

14% = 0.08 + Dividend Growth Rate

Dividend Growth Rate = 14% - 0.08

Dividend Growth Rate = 0.14 - 0.08

Dividend Growth Rate = 0.06

Therefore, the dividend growth rate is 6%. The correct answer is c. 6%.

The correct question is:

A stock is selling for $37.50 and is expected to pay a dividend of $3 at the end of the year. If investors expect a return of 14%, what is the dividend growth rate?

a. 4% b. 7% c. 6% d. 5%

To know more about dividend growth rate follow the link:

https://brainly.com/question/18650705

#SPJ4

The MIRR of the project is approximately 3.53% using the discounting approach method, 3.17% using the reinvestment approach method, and 3.54% using the combination approach method.

To calculate the Modified Internal Rate of Return (MIRR) of the project, we can use different approaches: the discounting approach method, the reinvestment approach method, and the combination approach method.

Discounting Approach Method:

In this method, we calculate the present value of the cash inflows and outflows using the discount rate of 11%. Then we find the IRR of the resulting cash flows.

Year 0: PV = -$53,000 / (1 + 0.11)^0 = -$53,000

Year 1: PV = $16,700 / (1 + 0.11)^1 = $14,991.07

Year 2: PV = $21,900 / (1 + 0.11)^2 = $17,952.79

Year 3: PV = $27,300 / (1 + 0.11)^3 = $19,647.11

Year 4: PV = $20,400 / (1 + 0.11)^4 = $13,552.09

Year 5: PV = -$8,600 / (1 + 0.11)^5 = -$5,216.12

Net Present Value (NPV) = Sum of PV of inflows - Sum of PV of outflows

= $14,991.07 + $17,952.79 + $19,647.11 + $13,552.09 - $53,000 - $5,216.12

= $8,926.94

Now we solve for the IRR of the cash flows, including the initial investment and the final cash flow (Year 5).

IRR = Discount rate + [(NPV of inflows / PV of outflows) * (1 + Discount rate)]^(1 / Number of years) - 1

= 11% + [($8,926.94 / $53,000) * (1 + 11%)]^(1 / 5) - 1

= 11% + (0.1682 * 1.11)^(0.2) - 1

= 11% + 1.045^(0.2) - 1

= 11% + 0.0353 - 1

= 11.0353% - 1

= 0.0353 (3.53%)

Therefore, the MIRR of the project using the discounting approach method is approximately 3.53%.

Reinvestment Approach Method:

In this method, we calculate the future value of the initial investment and the future value of the cash inflows using the reinvestment rate of 8%. Then we find the IRR of the resulting cash flows.

Future Value (FV) of the initial investment = -$53,000 * (1 + 0.08)^5 = -$73,049.84

FV of Year 1 inflow = $16,700 * (1 + 0.08)^4 = $22,469.32

FV of Year 2 inflow = $21,900 * (1 + 0.08)^3 = $26,729.92

FV of Year 3 inflow = $27,300 * (1 + 0.08)^2 = $31,033.76

FV of Year 4 inflow = $20,400 * (1 + 0.08)^1 = $22,032

FV of Year 5 inflow = -$8,600 * (1 + 0.08)^0 = -$8,600

Net Future Value (NFV) = Sum of FV of inflows + FV of initial investment

= $22,469.32 + $26,729.92 + $31,033.76 + $22,032 - $73,049.84 - $8,600

= $21,615.16

Now we solve for the IRR of the cash flows, including the initial investment and the final cash flow (Year 5).

IRR = Reinvestment rate + [(FV of inflows / FV of outflows)^(1 / Number of years) - 1]

= 8% + [($21,615.16 / $73,049.84)^(1 / 5) - 1]

= 8% + (0.2957^(0.2) - 1)

= 8% + 1.0601^(0.2) - 1

= 8% + 0.0317 - 1

= 8.0317% - 1

= 0.0317 (3.17%)

Therefore, the MIRR of the project using the reinvestment approach method is approximately 3.17%.

Combination Approach Method:

In this method, we calculate the present value of the cash inflows and outflows using the discount rate of 11% and then calculate the future value of these present values using the reinvestment rate of 8%. Finally, we find the IRR of the resulting cash flows.

PV of Year 0 outflow = -$53,000

PV of Year 1 inflow = $14,991.07

PV of Year 2 inflow = $17,952.79

PV of Year 3 inflow = $19,647.11

PV of Year 4 inflow = $13,552.09

PV of Year 5 inflow = -$5,216.12

FV of PV of inflows = $14,991.07 * (1 + 0.08)^5 + $17,952.79 * (1 + 0.08)^4 + $19,647.11 * (1 + 0.08)^3 + $13,552.09 * (1 + 0.08)^2 - $5,216.12 * (1 + 0.08)^1

= $23,547.26 + $23,852.17 + $23,968.59 + $18,350.77 - $5,646.73

= $84,072.06

Now we solve for the IRR of the cash flows, including the initial investment and the final cash flow (Year 5).

IRR = Discount rate + [(FV of PV of inflows / PV of outflows)^(1 / Number of years) - 1]

= 11% + [($84,072.06 / $53,000)^(1 / 5) - 1]

= 11% + (1.5862^(0.2) - 1)

= 11% + 1.0839^(0.2) - 1

= 11% + 0.0354 - 1

= 11.0354% - 1

= 0.0354 (3.54%)

Therefore, the MIRR of the project using the combination approach method is approximately 3.54%.

To learn more about MIRR

https://brainly.com/question/25296684

#SPJ11

The relations between the United States and China are crucial for the world due to several reasons.

For more such questions on Crucial

https://brainly.com/question/31810836

#SPJ11

Audit evidence is considered persuasive based on its relevance and reliability. The following factors contribute to the persuasiveness of audit evidence:

Independence and objectivity: Audit evidence from sources that are independent and objective is generally more persuasive.

Appropriateness: The extent to which the audit evidence aligns with the audit objective and provides sufficient support for the audit conclusions.

Sufficiency: The quantity of audit evidence obtained should be sufficient to form a reasonable basis for the auditor's opinion.

Consistency: Audit evidence that is consistent across different sources and corroborates other evidence increases its persuasiveness.

Source reliability: Audit evidence from reliable and credible sources is more persuasive than evidence from sources that lack credibility.

When collecting persuasive audit evidence, auditors are primarily trying to persuade themselves, the audit team, and other relevant stakeholders (e.g., shareholders, regulators, and financial statement users) of the reliability of the financial statements and the accuracy of the audit opinion. Persuasive audit evidence helps auditors form a professional judgment and provide assurance on the financial statements.

An example of audit evidence that is relevant but not reliable could be oral representations from management regarding a specific financial transaction. While the information may be relevant to the audit, it may lack reliability because it is not supported by documentary evidence or corroborating sources. Oral representations can be subjective and prone to misinterpretation or manipulation, making them less reliable compared to written documentation or objective data.

To know more about  auditor here

https://brainly.com/question/26048609

#SPJ11

The preferred ethical path is to take a course of action that avoids casting doubt on one's decisions. Verifiability ensures that information is complete, neutral and free from error. A characteristic of liabilities is their capacity to reduce future assets.The preferred ethical path in decision-making is to take a course of action that does not give rise to any doubts. An ethical decision-maker should always focus on making decisions that are based on facts and are not influenced by personal bias or any other form of manipulation.

Furthermore, ethical decision-makers should always maintain confidentiality to ensure that sensitive information is not exposed to unauthorized parties. Verifiability, on the other hand, is critical in ensuring that information is complete, neutral and free from error. When information is verifiable, it can be confirmed and validated by third parties, which helps to minimize the chances of errors. Verifiable information is critical in decision-making as it enables decision-makers to rely on facts, rather than assumptions.A characteristic of liabilities is their capacity to reduce future assets. Liabilities refer to obligations that a company owes to third parties. These obligations can arise from borrowing or purchasing goods and services on credit. A company's liabilities have the capacity to reduce future assets, such as cash reserves, as they must be paid off at some point. As such, it is important for companies to manage their liabilities effectively to minimize their impact on future assets. Effective liability management involves balancing the amount of debt owed with the company's ability to pay it back while still maintaining adequate cash reserves.

To know more about ethical path visi:

https://brainly.com/question/28086224

#SPJ11