premium winery problem premium winery (pw) considers buying a new facility that will cost $2,000,000. this facility is expected to last for 5 years. there are three ways to finance it, 5-year bonds only, 5-year lease, or new stocks only. do not include dollar signs ($), percent signs (%), or decimal points. round to whole numbers, e.g. 6789. question 15 (3 points) if pw wants to issue 5-year bonds (notes) with a par value $1,000, coupon rate 10% with annual coupon payment. however, the market rate of return of similar assets is 12%. can pw sell these bonds at par (hint, find its intrinsic present value)? if yes, explain? if no, how much can pw sell

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Answer 1

No, PW cannot sell these bonds at par because the market rate of return of similar assets is higher than the coupon rate, resulting in a lower intrinsic present value of the bonds than their par value.

To calculate the intrinsic present value of the bonds, we need to discount the annual coupon payments and the par value by the market rate of return. The formula for the intrinsic present value of a bond is

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

Where:

PV = present value of the bond

C = annual coupon payment

r = market rate of return

n = number of years until maturity

F = par value of the bond

Using the numbers given in the question, we can calculate the intrinsic present value of the bond as follows

PV = (100 / 0.12) x [1 - 1 / (1 + 0.12)^5] + (1000 / (1 + 0.12)^5)

PV = 667.24 + 567.43

PV = 1234.67

The intrinsic present value of the bond is $1,234.67, which is lower than the par value of $1,000. Therefore, PW cannot sell these bonds at par.

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Related Questions

arnold inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. the project requires use of an existing warehouse, which the firm acquired three years ago for $3 million and which it currently rents out for $123,000. rental rates are not expected to change going forward. in addition to using the warehouse, the project requires an upfront investment into machines and other equipment of $1.3 million. this investment can be fully depreciated straight-line over the next 10 years for tax purposes. however, arnold inc. expects to terminate the project at the end of eight years and to sell the machines and equipment for $496,000. finally, the project requires an initial investment into net working capital equal to 10% of predicted first-year sales. subsequently, net working capital is 10% of the predicted sales over the following year. sales of protein bars are expected to be $4.5 million in the first year and to stay constant for eight years. total manufacturing costs and operating expenses (excluding depreciation) are 80% of sales, and profits are taxed at 30%. a. what are the free cash flows of the project? b. if the cost of capital is 15%, what is the npv of the project?

Answers

(A) The free cash flow of the project is -

Year 0: -$1,950,000

Year 1: $320,000

Years 2-8: $320,000

Year 9: $166,000

(B) The NPV of the project is -$204,938.87

Year 0:

Initial investment in equipment and net working capital: -$1,950,000 ($1.3 million + $450,000)

Year 1:

Sales revenue: $4,500,000

Manufacturing costs and operating expenses: -$3,600,000 (80% of sales)

Depreciation: -$130,000 ($1.3 million / 10)

Change in net working capital: -$450,000 (10% of sales)

Cash flow: $320,000

Years 2-8:

Sales revenue: $4,500,000

Manufacturing costs and operating expenses: -$3,600,000 (80% of sales)

Depreciation: -$130,000 ($1.3 million / 10)

Change in net working capital: -$450,000 (10% of sales)

Cash flow: $320,000

Year 9:

Sales revenue: $4,500,000

Manufacturing costs and operating expenses: -$3,600,000 (80% of sales)

Depreciation: -$130,000 ($1.3 million / 10)

Change in net working capital: $0 (net working capital is not needed since the project ends)

Sale of equipment: $496,000

Cash flow: $166,000 ($320,000 - $130,000 + $496,000)

Therefore, the free cash flows of the project are:

Year 0: -$1,950,000

Year 1: $320,000

Years 2-8: $320,000

Year 9: $166,000

b. To calculate the net present value (NPV) of the project, we need to discount the free cash flows to present value using the cost of capital of 15%.

NPV = ( [tex]\frac{320,000 }{1.15}[/tex]) + ( [tex]\frac{320,000 }{1.15^2}[/tex]) + ... + ( [tex]\frac{320,000}{1.15^8}[/tex]) + ( [tex]\frac{166,000}{1.15^9}[/tex]) - 1,950,000

NPV = $204,938.87

Therefore, at a cost of capital of 15%, the NPV of the project is positive, indicating that it is a good investment for Arnold Inc.

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sklar, rich, and cey own a building as joint tenants with the right of survivorship. sklar gave sklar's interest in the building to marsh by executing and delivering a deed to marsh. neither rich nor cey consented to this transfer. rich and cey subsequently died. after their deaths, marsh's interest in the building would consist of

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In this situation where, Sklar, Rich, and Cey originally owned a building as joint tenants with the right of survivorship. Sklar then transferred their interest in the building to Marsh without the consent of Rich and Cey. Later, Rich and Cey passed away. After their deaths, Marsh's interest in the building would consist of Sklar's original share.


To understand this outcome, let's break down the concepts involved:
1. Joint tenancy with the right of survivorship: This form of property ownership involves two or more parties who have equal ownership shares in the property. When one party dies, their share is automatically distributed among the surviving joint tenants. 2. Sklar's transfer to Marsh: Sklar transferred their interest in the building to Marsh through a deed. However, neither Rich nor Cey consented to this transfer. In a joint tenancy with the right of survivorship, any attempt to transfer an interest in the property typically severs the joint tenancy, converting it into a tenancy in common. In a tenancy in common, each party holds a separate share in the property, which can be transferred or sold without affecting the shares of the other tenants.



3. Deaths of Rich and Cey: When Rich and Cey passed away, their interests in the property would not pass to Marsh, as the joint tenancy with the right of survivorship was severed by Sklar's transfer. Instead, their interests would be distributed according to their wills or the laws of intestate succession, depending on their individual circumstances.
In conclusion, after the deaths of Rich and Cey, Marsh's interest in the building would consist of Sklar's original share that was transferred to Marsh through the deed.

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chris started working at age 15 ad saved enough money to buy his own car on his 17th birthday. he got a 3 year loan from the dealer and started making payments. however after 6 months, he stopped making the payments and the deal the then requested that he return the car. what is chris' obligation in this situation?

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Chris has a legal obligation to continue making payments on the car loan as per the terms of the contract he signed with the dealer.

Failing to make payments as agreed upon constitutes a breach of contract. The dealer has the right to repossess the car in such a scenario, but it does not relieve Chris of his obligation to pay back the outstanding loan amount.

If Chris fails to pay the remaining balance on the loan after the car is repossessed and sold, the dealer may pursue legal action to recover the debt. This may include wage garnishment or seizing other assets owned by Chris.

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nico owns 100 shares of stock x which has a price of $12 per share and 200 shares of stock y which has a price of $3 per share. what is the proportion of nico's portfolio invested in stock x? 50% 77% 67% 33%

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Nico has 67% of his portfolio invested in stock X and 33% of his portfolio invested in stock Y. (option c).

In this scenario, Nico owns 100 shares of stock X, which is priced at $12 per share, and 200 shares of stock Y, which is priced at $3 per share. To determine the proportion of Nico's portfolio invested in stock X, we need to calculate the total value of Nico's portfolio and the value of stock X.

The value of Nico's stock X investment is 100 shares x $12 per share = $1,200. The value of Nico's stock Y investment is 200 shares x $3 per share = $600. Therefore, the total value of Nico's portfolio is $1,800 ($1,200 + $600).

To calculate the proportion of Nico's portfolio invested in stock X, we divide the value of his stock X investment by the total value of his portfolio:

$1,200 ÷ $1,800 = 0.67 or 67%

Then the correct choice is option c.

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king costume uses a periodic inventory system. the company started the month with 6 masks in its beginning inventory that cost $9 each. during the month, king costume purchased 48 additional masks for $11 each. at the end of the month, king counted its inventory and found that 2 masks remained unsold. using the lifo method, its cost of goods sold for the month is:

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Using the LIFO method, King Costume's cost of goods sold for the month is $568. Using the LIFO method, the last items purchased are assumed to be sold first. Therefore, the cost of goods sold will be calculated based on the cost of the 48 masks purchased at $11 each, followed by the 6 masks purchased at $9 each.

The cost of goods sold can be calculated as follows:

Cost of 48 masks purchased at $11 each: 48 x $11 = $528

Cost of 6 masks purchased at $9 each: 6 x $9 = $54

Since only 2 masks remained unsold, it means that 52 masks were sold during the month. Therefore, the cost of goods sold for the month will be:

Cost of goods sold = $528 + $54 - (2 x $11) = $568

Therefore, using the LIFO method, King Costume's cost of goods sold for the month is $568.

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maxim corporation has provided the following information about one of its products: date transaction number of units cost per unit 1/1 beginning inventory 240 $148 6/5 purchase 440 $168 11/10 purchase 140 $208 during the year, maxim sold 480 units. what is ending inventory using the average cost method? note: do not round intermediate computations. multiple choice $71,920. $59,452. $57,452. $73,920.

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The ending inventory using the average cost method isb ) $59,452.

To calculate the ending inventory using the average cost method, we need to find the weighted average cost per unit and then multiply it by the number of units in the ending inventory.

First, we need to calculate the total cost of the units available for sale during the year, which is:

Beginning inventory cost + Purchase 1 cost + Purchase 2 cost

= (240 units x $148 per unit) + (440 units x $168 per unit) + (140 units x $208 per unit)

= $35,520 + $73,920 + $29,120

= $138,560

Next, we need to calculate the total number of units available for sale during the year, which is:

Beginning inventory + Purchase 1 + Purchase 2

= 240 + 440 + 140

= 820

The weighted average cost per unit is then:

Total cost of units available for sale / Total number of units available for sale

= $138,560 / 820

= $169 per unit

Finally, we can calculate the ending inventory by multiplying the number of units in ending inventory by the weighted average cost per unit:

Ending inventory = (820 - 480) x $169

= 340 x $169

= $57,460

Therefore, the ending inventory using the average cost method is $59,452.

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which of the following does not need to be covered by floater insurance? group of answer choices expensive electronics collectibles $300,000 house $20, 000 watch

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A $300,000 house would not be covered by floater insurance . So the  correct answer is option: 2.

Floater insurance is a type of insurance policy that covers personal property that is easily movable and not permanently attached to a specific location. This type of insurance is typically used to protect high-value items such as jewelry, artwork, or musical instruments. Of the options given, a $300,000 house would not need to be covered by floater insurance because it is a fixed asset and would be covered by a standard homeowners insurance policy. Expensive electronics, collectibles, and a $20,000 watch would all be appropriate items to cover under floater insurance. Hence option: 2 is correct.

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--The complete Question is, which of the following does not need to be covered by floater insurance? group of answer choices

expensive electronics collectibles $300,000 house $20, 000 watchAll of the above ---

a company reported beginning inventory 0 units started in production 22,000 units finished during the period 17,600. what was the cost of the 4,400 units of ending inventory

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A corporation claimed starting with zero units in production and finishing with 22,000 units during the course of the month. It will cost $17600 to finish the work-in-progress inventory.

Production and manufacturing are similar, but production is more extensive. It explains the techniques and steps needed to turn unfinished or semi-finished objects into finished products or services, either with or without the help of machinery. Using financial resources, like as labour, expensive machinery, or land, to manufacture goods and services for customers is known as a manufacturing process. According to economists, land, labour, capital, and entrepreneurship are the four pillars of production. One might consider this to be the basis of an economy. Minerals or timber are two examples of tangible raw materials utilised in product manufacturing. Yet, the production process uses both actual raw materials and immaterial resources, such as money or credit. Producers and makers have diverse access to materials.

As a result, $0 + $2200 - $17600 is $17600

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A company reported beginning inventory 0 units started in production 22,000 units finished during the period 17,600. What is the cost of ending work in process inventory?

vancouver timber and milling, incorporated on january 2, 2024, for $460 million. at the date of purchase, the book value of vancouver's net assets was $805 million. the book values and fair values for all balance sheet items were the same except for inventory and plant facilities. the fair value exceeded book value by $5 million for the inventory and by $30 million for the plant facilities. the estimated useful life of the plant facilities is 15 years. all inventory acquired was sold during 2024. vancouver reported net income of $200 million for the year ended december 31, 2024. vancouver paid a cash dividend of $20 million. required: prepare all appropriate journal entries related to the investment during 2024. what amount should northwest report as its income from its investment in vancouver for the year ended december 31, 2024? what amount should northwest report in its balance sheet as its investment in vancouver? what should northwest report in its statement of cash flows regarding its investment in vancouver

Answers

Northwest reports $205 million as its income from investment in Vancouver, $460 million in the balance sheet, and $20 million cash outflow.

Diary sections for 2024:

Interest in Vancouver Wood and Processing, Inc. - $460 million

Cash - $460 million

Stock - $5 million

Interest in Vancouver Wood and Processing, Inc. - $5 million

Plant Offices - $30 million

Interest in Vancouver Wood and Processing, Inc. - $30 million

Interest in Vancouver Wood and Processing, Inc. - $20 million

Profit Pay - $20 million

Northwest's pay from its interest in Vancouver for the year finished December 31, 2024, ought to be $200 million, which is the net gain detailed by Vancouver.

Northwest ought to report its interest in Vancouver at fair worth, which is $495 million ($460 million + $5 million + $30 million).

With respect to interest in Vancouver, Northwest ought to report a surge of $20 million in its articulation of incomes, which addresses the profit got from Vancouver.

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why is there an emphasis on nonprice competition in oligopoly markets rather than on lowering prices to gain market share

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Because non-price competition is more sustainable than price competition, it is prioritized in oligopoly markets rather than cutting prices to increase market share.

Oligopolists favor non-price competition over price wars when they engage in rivalry. The risk is that competitors would just lower their prices in response. A price decrease may accomplish strategic objectives, such as increasing market share or discouraging entrants.

Non-price competition is a business strategy that emphasizes outstanding product quality, a compelling USP, a fantastic location, and exceptional service over reduced pricing as means of luring customers and boosting sales. It aids in brand differentiation and gaining new clients.

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compute a price-weighted stock price index for the beginning of the year and the end of the year. what is the percentage change?

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The percentage change in the price-weighted stock price index is approximately 57.4%.

To compute a price-weighted stock price index, we need to find the sum of the prices of all the stocks at the beginning of the year and the end of the year, and then divide by the total number of stocks.

At the beginning of the year, the sum of the prices of all the stocks is

(100 shares x $100/share) + (1000 shares x $20/share) + (10,000 shares x $3/share) = $10000 + $20000 + $30000 = $60000

Dividing by the total number of shares, we get the price-weighted index at the beginning of the year

($60000 / 11,100 shares) ≈ $5.4/share

At the end of the year, the sum of the prices of all the stocks is

(100 shares x $94/share) + (1000 shares x $25/share) + (10,000 shares x $6/share) = $9400 + $25000 + $60000 = $94400

Dividing by the total number of shares, we get the price-weighted index at the end of the year

($94400 / 11,100 shares) ≈ $8.5/share

The percentage change in the price-weighted index is

[(End of year index - Beginning of year index) / Beginning of year index] x 100%

= [(8.5 - 5.4) / 5.4] x 100%

≈ 57.4%

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The given question is incomplete, the complete question is:

Consider the following information on the stock market in a small economy.a. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?

during the purchase of janitorial services for a new building, teresa has responsibility for working with suppliers and arranging the terms of the sale. in this role, teresa appears to be acting as a(n)

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During the purchase of janitorial services for a new building, Teresa has the responsibility of working with suppliers and arranging the terms of the sale. In this role, Teresa appears to be acting as a purchasing agent.

What is a purchasing agent?

A purchasing agent is an individual who is responsible for acquiring goods and services for a company or organization. Teresa's job is to ensure that the organization purchases the necessary janitorial supplies and services required for the building.

Therefore, it can be concluded that Teresa is acting as a purchasing agent.In the business world, purchasing agents are also known as buyers. They are primarily responsible for managing an organization's procurement activities.

Purchasing agents are expected to have a deep understanding of the purchasing process and must be familiar with the purchasing guidelines and policies of their organizations.

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williams software has 11.8 percent coupon bonds on the market with 15 years to maturity. the bonds make semiannual payments and currently sell for 108.7 percent of par. a. what is the current yield on the bonds?

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Williams Software has 11.8% coupon bonds on the market with 15 years to maturity. The bonds make semiannual payments and currently sell for 108.7% of par. The current yield on the bonds will be 26.50%.

Williams Software 11.8% coupon bonds have 15 years remaining to maturity. The bonds make semiannual payments and are currently selling for 108.7 percent of par value.

What is the current yield on the bonds?

Given, Annual coupon rate (i) = 11.8%  

Semi-annual coupon rate (i /2) = 11.8 / 2 = 5.9%

Time to maturity (n) = 15 years

Semi-annual interest payment = (i / 2) * Face value

Semi-annual interest payment = (5.9 / 100) * $1,000

Semi-annual interest payment = $59

PV = 108.7% of Par Value = 108.7% * $1,000 = $1087.00

Current Yield -: Current yield is defined as the ratio of the bond's annual coupon payment to its market price, multiplied by 100%. The formula for calculating the current yield of a bond is as follows:

Current yield = Annual coupon payment / Market price of bond * 100%

Annual coupon payment = Coupon rate * Par value

Annual coupon payment = 11.8% * $1,000 = $118

Market price of bond = PV of interest payment + PV of maturity value

PV of interest payment = Semi-annual interest payment / (1 + i / 2) ^ n * 2

PV of interest payment = $59 / (1 + 5.9 / 2) ^ (15 * 2)

PV of interest payment = $59 / (1.0295) ^ 30

PV of interest payment = $59 / 2.3812

PV of interest payment = $24.75

PV of maturity value = Par value / (1 + i / 2) ^ n

PV of maturity value = $1,000 / (1 + 5.9 / 2) ^ (15 * 2)

PV of maturity value = $1,000 / (1.0295) ^ 30

PV of maturity value = $1,000 / 2.3812

PV of maturity value = $420.51

Market price of bond = PV of interest payment + PV of maturity value

Market price of bond = $24.75 + $420.51

Market price of bond = $445.26

Current yield = Annual coupon payment / Market price of bond * 100%

Current yield = $118 / $445.26 * 100%

Current yield = 26.50%

Therefore, the current yield on the bond is 26.50%.

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during which stage of the creative process would the development of a product or service prototype be done? a.incubation b.verification c.preparation d.insight

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During the preparation stage of the creative process the development of a product or service prototype would be done. Option C is the correct answer.

The creative process refers to a sequence of steps taken to generate creative ideas. It's a problem-solving process that involves brainstorming, research, testing, and analysis of a concept or idea until it's perfected. The creative process typically includes the following stages:

PreparationIncubationInsightVerificationElaboration

The development of a product or service prototype can be done during the preparation stage of the creative process. The preparation stage is the initial step in the creative process, and it's focused on identifying the problem that needs to be solved, gathering data, and analyzing the data to generate ideas for solving the problem.

During this stage, prototypes can be developed to test and refine concepts before they're implemented in the final product or service. Thus, the correct answer is option C, preparation.

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2) if you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is a) -3 percent. b) -2 percent.

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If you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is C . 3 percent.

The real interest rate on a one-year bond with a yield to maturity of 7 percent and an expected inflation rate of 4 percent next year can be calculated using the Fisher equation. The Fisher equation is an economic formula that helps to determine the real interest rate by adjusting the nominal interest rate for inflation.

The Fisher equation is expressed as follows:

(1 + Real Interest Rate) ≈ (1 + Nominal Interest Rate) / (1 + Inflation Rate)

In this case, the nominal interest rate is given as 7 percent, or 0.07, and the expected inflation rate is 4 percent, or 0.04. Plugging these values into the equation:

(1 + Real Interest Rate) ≈ (1 + 0.07) / (1 + 0.04)

(1 + Real Interest Rate) ≈ 1.07 / 1.04

(1 + Real Interest Rate) ≈ 1.028846

Now, to solve for the real interest rate, subtract 1 from both sides:

Real Interest Rate ≈ 1.028846 - 1

Real Interest Rate ≈ 0.028846

Multiply the result by 100 to express the answer as a percentage:

Real Interest Rate ≈ 2.8846%

The real interest rate is approximately 2.8846%, which is closest to 3 percent. Therefore, the correct answer is C. 3 percent.

The Question was Incomplete, Find the full content below :

If you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is

A. -3 percent.

B. -2 percent.

C. 3 percent.

D. 7 percent.

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the ability of an individual, company, or economy to conduct an activity better than another for reasons related to location is called a(n) multiple choice question.

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The ability of an individual, company, or economy to conduct an activity better than another for reasons related to location is called a(n) comparative advantage.

What is Comparative Advantage?

Comparative advantage is an economic law referring to the ability of any given economic actor to generate products or services at a lower marginal and opportunity cost. By focusing on these primary areas of interest, the entity will often produce more effectively and/or efficiently, effectively increasing its productivity and resulting in overall economic growth.

Let's take the example of China, which has an advantage in the production of cheap consumer goods, while the United States has an advantage in high-tech innovation. By concentrating on their respective strengths, both countries may increase their productivity and efficiency, improving their economies over time.

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you have a $1,250 portfolio which is invested in stocks a and b plus a risk-free asset. $350 is invested in stock a which has a beta of 1.36 and stock b has a beta of .84. how much needs to be invested in stock b if you want a portfolio beta of .95?

Answers

The amount of $985.63 needs to be invested in stock B to achieve a portfolio beta of 0.95

The beta of stock A  = β1 = 1.36

The beta of stock B = β2 = 0.84

The proportion of the portfolio invested in stock A = w1

The proportion of the portfolio invested in stock B = w2

The desired beta of the portfolio = 0.95

To calculate the portfolio, the formula is,

βp = w1β1 + w2β2

Amount invested in stock B = Total portfolio value - Amount invested in stock A - Risk-free asset

Amount invested in stock B = $1,250 - $350 - Risk-free asset

w1 + w2 + wrf = 1

w2 = 1 - w1 - wrf

0.95 = w1 * 1.36 + (1 - w1 - wrf) * 0.84

0.95 = 1.36w1 + 0.84 - 0.84w1 - 0.84wrf

0.11 = 0.52w1 - 0.84wrf

0.11 = 0.52w1

w1 = 0.2115

For stock B:

Amount invested in stock B = $1,250 - $350 - Risk-free asset

Amount invested in stock B = $900 - Risk-free asset

w2 = 1 - w1 - wrf

w2 = 1 - 0.2115 - 0

w2 = 0.7885

Amount invested in stock B = w2 * Total portfolio value

Amount invested in stock B = 0.7885 * $1,250

Amount invested in stock B = $985.63

Therefore we can conclude that $985.63 needs to be invested in stock B to achieve a portfolio beta of 0.95.

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imagine that you are the manager of an aspiring multinational video conferencing company. what would not be a strategic reason for your company to expand outside your domestic market to improve its overall competitiveness? multiple choice to seek a profit sanctuary to develop export markets to create new licensing opportunities to establish a subsidiary in a foreign market to franchise operations under local ownership

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To Seek A Profit Sanctuary is the option that would not be a strategic justification for expanding outside your home market.

What exactly is a  Profit Sanctuary ?

The various international markets where a company is content and makes a lot of money are known as profit sanctuaries. It is expected that the business will have a robust market and the necessary resources to generate a profit.

Profit sanctuaries are a valuable competitive asset in global industries because these are the areas where businesses are known to make the most of their money. Typically, a company's home market is its most strategically important profit sanctuary. They have accumulated the majority of their wealth there steadily.

Because of this, the company will not expand beyond their domestic market.

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your team's approach is to involve everyone, to help people be generalists, and to share information openly. what is your team's approach?

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The team's approach is focused on creating a collaborative and inclusive work environment where everyone is involved and encouraged to contribute their ideas and insights.

The team values the concept of being generalists, meaning that team members are equipped with a broad range of skills and knowledge to be adaptable to different situations and projects.

This approach fosters a culture of learning, growth, and development, where individuals are encouraged to expand their skill set beyond their primary area of expertise.

The team also believes in the importance of sharing information openly, as it promotes transparency and accountability. This approach encourages team members to communicate effectively and openly, which helps to avoid misunderstandings and promotes collaboration.

By promoting transparency, the team is able to develop a sense of trust and respect among its members, which contributes to a positive and productive work environment.

Overall, this approach emphasizes the importance of collaboration, communication, and continuous learning and development, which enables the team to work effectively together and achieve its goals.

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which best describes the current practice of multinational corporations? a. working with other lenders to provide financial stability to certain areas within developing countries b. supporting community-sponsored agriculture enterprises to feed local populations in developing countries c. hiring indigenous people for below-subsistence wages to grow crops to be exported for profit d. arranging for food and supplements to be delivered free of charge to the poorest areas of developing countries e. lending money to low-income individuals who cannot afford to buy food

Answers

Option c. hiring indigenous people for below-subsistence wages to grow crops to be exported for profit, best describes the current practice of multinational corporations.

The current practice of multinational corporations varies widely depending on the company, its values, and its business practices. Some companies may engage in practices aimed at providing financial stability to certain areas within developing countries, while others may support community-sponsored agriculture enterprises or provide free food and supplements to the poorest areas of developing countries.

However, it is also true that some multinational corporations have been criticized for exploiting cheap labor in developing countries, including hiring indigenous people for below-subsistence wages to grow crops for export. Overall, multinational corporations need to consider the social and economic impacts of their practices and work to ensure that their business practices align with their values and contribute positively to the communities in which they operate.

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in 2024, a company estimates that warranty costs in the following year will be $25,000. actual warranty costs in 2025 are only $20,000. what is the effect on the balance sheet when recording actual warranty costs in 2025?

Answers

When recording the actual warranty costs in 2025, the effect on the balance sheet will depend on whether the company had recorded a warranty liability in 2024.

If the company had recorded a warranty liability in 2024 based on the estimated warranty costs of $25,000, then the actual warranty costs of $20,000 in 2025 would result in a reduction of the liability. This means that the liability would be decreased by $5,000, which would increase the company's equity or reduce the company's liabilities on the balance sheet.

On the other hand, if the company had not recorded a warranty liability in 2024, then the actual warranty costs of $20,000 in 2025 would be recorded as an expense in the income statement, which would decrease the company's net income. The decrease in net income would also decrease the company's equity on the balance sheet.

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the goal of an oligopoly is to maximize group of answer choices market share to achieve long-run economic profit.market share to achieve long-run economic profit. short-run profit to achieve long-run maximum revenue. short-run profit to achieve long-run market share. profit in the short run and to minimize cost in the long run.

Answers

The goal of an oligopoly is to maximize market share to achieve long-run economic profit. Option A is correct.

Oligopoly is a market structure characterized by a small number of large firms dominating the market, each of which has a significant market share. In an oligopoly, the actions of the one firm will have a significant impact on the other firms in the market.

Because of the high degree of interdependence among the firms, they must take into account how their actions will affect the behavior of their competitors. Oligopolies can be both competitive and cooperative, with firms engaging in both price competition and collusive behavior.

Hence, A. is the correct option.

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--The given question is incomplete, the complete question is

"The goal of an oligopoly is to maximize group of answer choices A) market share to achieve long-run economic profit. B) market share to achieve long-run economic profit. C) short-run profit to achieve long-run maximum revenue. D) short-run profit to achieve long-run market share. E) profit in the short run and to minimize cost in the long run."--

which one of the following transactions would be included in gdp? group of answer choices ms. kim pays $50 for a used picture frame at a neighborhood garage sale. mr. doe donates $500 to his town's junior college scholarship fund. ms. bartolini pays $500 to fix the front end of her car damaged in a recent accident. ms. smith pays $5,000 to purchase 100 shares of microsoft sto

Answers

Out of the given transactions, the one that would be included in GDP is: Ms. Bartolini pays $500 to fix the front end of her car damaged in a recent accident.

GDP (Gross Domestic Product) measures the value of all final goods and services produced within a country during a specific period. Ms. Bartolini's payment for car repair is included in GDP because it is a service provided within the country.

In contrast, Ms. Kim's purchase of a used frame is not included as it is a second-hand transaction, Mr. Doe's donation is a financial transfer and not a good or service, and Ms. Smith's stock purchase is a financial investment, not a direct contribution to the production of goods or services.

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when auditing the revenue and collection cycle, auditors normally select balances to confirm from the:

Answers

The reviewing the income and assortment cycle, evaluators regularly select equilibriums to affirm from the Accounts receivable listing. option (B) is correct.

A receivable list is a gathering of all receivables for which an organization sells labor and products on receivables. At the point when a business sells for thought, the client gets the labor and products right away yet can pay later. This rundown is likewise called the records receivable.

Accounts receivable are recorded as charge things on the resources piece of the accounting report. It is a present moment as it is typically a transient resource and as a rule, it is acknowledged soon. It alludes to books used to keep monetary records and other related accounts.

Therefore, option (B) is correct.

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This question is not complete, Here I am attaching the complete question:

When auditing the revenue and collection cycle, auditors normally select balances to confirm from the:

a. Sales journal.

b. Accounts receivable listing.

c. General ledger.

d. Cash receipts listing.

under the checkoff of dues provision, the company agrees to withhold union dues from members' paychecks and to forward the money directly to the union. group of answer choices true false

Answers

The statement under the checkoff of dues provision, the company agrees to withhold union dues from members' paychecks and to forward the money directly to the union is true because which allows each employee to give written consent to management.

To withhold union dues from their paychecks and apply those funds to the union of their choice. This provides management with hard data about the various unions' abilities.

 a bare minimum prerequisite for union membership.—A registered trade union of workers must always have at least ten percent of its members—or one hundred members, whichever is less—employed in a business or sector to which it is connected, with a minimum of seven. A union may refuse to admit an individual or expel a member due to misconduct. 

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ebook a new mother wants to establish a college education fund for her newborn child. she wants this fund to be worth $100,000 in 18 years. a. if she invests $75 per month, what is the minimum rate of return she would need to earn on her investment? assume monthly compounding. (hint: consider using the future value function fv( ) in your spreadsheet.) round your answer to one decimal place. % b. suppose the mother knows of an investment that will guarantee a 12% annual return compounded monthly. what is the minimum amount she should invest each month to achieve her goal? round your answer to a whole dollar amount. $

Answers

The minimum amount she should invest each month to achieve her goal is approximately $215.

The formula for future value is given as: FV = PMT × [(1 + r)n - 1] / rHere, FV = $100,000, PMT = $75, r = rate of return, and n = number of periods (18 × 12 = 216 months).Putting the given values in the formula, we get: $100,000 = $75 × [(1 + r)216 - 1] / rSimplifying the above equation, we get: r ≈ 7.1%. Therefore, the minimum rate of return she would need to earn on her investment is approximately 7.1%.b)

To calculate the minimum amount she should invest each month to achieve her goal, the formula for the present value needs to be used. The formula for present value is given as: PV = PMT × [1 - (1 + r)-n] / rHere, PV = $0 (since she hasn't invested yet), PMT = amount to be invested each month, r = 12% annual return compounded monthly, and n = 216 (number of months).Putting the given values in the formula, we get: $0 = PMT × [1 - (1 + 0.01)⁻²¹⁶] / 0.01Simplifying the above equation, we get: PMT ≈ $215.

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estimating the cost of a product, identifying the price at which a product will be sold, and estimating the demand for a product all take place in which stage of the new-product development process? multiple choice product development new-product strategy development test marketing

Answers

Business analysis is the appropriate reaction. It is the stage of the new product development procedure known as business analysis.

By identifying needs and putting forth recommendations for solutions that benefit stakeholders, business analysis is the practise of enabling change within an organisational setting. An explanation of the business analyst's job. Business analysts support teams by helping them analyse and comprehend a business opportunity or issue. To comprehend how a company or business area functions, conduct research and analysis, taking into account the people, organization, processes, information, data, and technology. Business analysis is a profession that focuses on figuring out how to solve business issues and how to recognise business needs. Business analysts work on initiatives other than those that create software systems.

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question-

(a) product development

(b) product launch

(c) business analysis

(d) new-product strategy development

(e) test marketing

in year 1, cowabunga corp. purchased machinery for $1,000,000 and elected to expense $600,000 under section 179. in year 3, cowabunga sold the machinery for $930,000, with an adjusted basis of $200,000. what amount of gain must be reported as ordinary gain for tax purposes?

Answers

Cowabunga must report $400,000 as ordinary income for tax purposes, and the remaining $130,000 ($530,000 - $400,000) as a long-term capital gain.

Since Cowabunga Corp. elected to expense $600,000 under section 179, the adjusted basis of the machinery is $400,000 ($1,000,000 - $600,000).

When Cowabunga sold the machinery for $930,000, they realized a gain of $530,000 ($930,000 - $400,000).

However, since the machinery was held for less than 5 years, the amount expensed under section 179 must be recaptured as ordinary income. The recapture amount is the lesser of the gain realized on the sale or the amount expensed under section 179.

In this case, the recapture amount is $400,000 (the amount expensed under section 179). Therefore, For tax reporting reasons, Cowabunga must declare $130,000 ($530,000 - $400,000) as a long-term capital gain and $400,000 as ordinary income.

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jamie wants to focus on selling her overstocked blue saucepans. she sets up keywords using phrase match. what are two ways phrase match makes jamie's work easier? (choose two.)

Answers

Here are two ways phrase match makes Jamie's work easier:Phrase match helps Jamie to reach potential customers who are looking for overstocked blue saucepans.

Phrase match makes Jamie's work easier by enabling her to reach potential customers who are specifically searching for her overstocked blue saucepans. For example, if someone searches for "blue saucepans on sale," Jamie's ads can show up because her keyword is "overstocked blue saucepans."Phrase match reduces Jamie's work by automating the process of choosing the right keywords .When Jamie uses phrase match, the process of choosing the right keywords is automated.

With phrase match, she does not need to spend a lot of time researching and selecting the right keywords. The system automatically matches the user's search term with Jamie's keyword, giving Jamie more time to focus on other aspects of her business.

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Final answer:

Phrase match optimizes ads by specifically targeting those searching for the precise product, in this case, blue saucepans. Additionally, it reduces irrelevant traffic to the seller's website, saving cost on unproductive clicks.

Explanation:

Phrase match in keyword advertising helps Jamie in two main ways. First, it will optimize her ads by making sure they will only appear in searches that include her exact phrase or close variations of it, ensuring her product reaches the most relevant audience. This can make her work easier because it targets those individuals who are most likely to be interested in buying her blue saucepans. Second, phrase match can reduce irrelevant traffic to Jamie’s website. By avoiding showing her ads to those who aren’t specifically searching for blue saucepans, she saves on costs that would have been spent on clicks from people unlikely to make a purchase.

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which of the following is not a responsibility of the bankruptcy trustee? group of answer choices liquidate common stock of the company. preserve the estate from any further deterioration. void preferences made by the debtor within 90 days prior to the filing of the bankruptcy petition if the company was already insolvent. recover all property belonging to the insolvent company. make distributions to the proper claimants.

Answers

Of the options presented, the responsibility that is not a duty of the bankruptcy trustee is to liquidate common stock of the company.

The bankruptcy trustee is responsible for a wide range of tasks in order to ensure that the interests of both the debtor and the creditors are protected throughout the bankruptcy process. One of the primary duties of the trustee is to preserve the estate from any further deterioration.

This means that the trustee is responsible for ensuring that the assets of the debtor are protected and not wasted or destroyed during the bankruptcy process. The trustee must also recover all property belonging to the insolvent company in order to maximize the amount of assets available to pay back creditors.

Another responsibility of the trustee is to void preferences made by the debtor within 90 days prior to the filing of the bankruptcy petition if the company was already insolvent. This ensures that creditors are not unfairly favored over others, and that all claims are treated equally during the bankruptcy process.

The trustee is also responsible for making distributions to the proper claimants. This means that the trustee must evaluate the claims of creditors and make sure that each one is paid according to the priority set by bankruptcy law. Finally, the trustee must provide regular reports to the court and the creditors on the progress of the bankruptcy case, including any significant developments or changes to the estate.

In conclusion, while the bankruptcy trustee has a wide range of responsibilities, the liquidation of common stock of the company is not one of them. Instead, the trustee's duties primarily involve preserving the estate, recovering assets, voiding preferences, making distributions, and providing regular reports to the court and the creditors.

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